Document:

Exhibit 10.64

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT (as amended, supplemented or modified from time to time, this “Agreement”), dated as of December    , 2016, by and among Laureate Education, Inc., a public benefit corporation organized and existing under the laws of the State of Delaware (the “Corporation”), each of the Persons set forth on Schedule A hereto (each, an “Investor,” and collectively, the “Investors”), Douglas L. Becker (“DLB”) and Wengen Alberta, Limited Partnership, a limited partnership under the laws of the Province of Alberta (the “Sponsor”).  Unless otherwise specified, capitalized terms used herein shall have the respective meanings set forth in Section 1.  The Corporation and the other parties hereto are sometimes collectively referred to herein as the “Parties” and each is sometimes referred to herein as a “Party.”

 

RECITALS

 

WHEREAS, (a) Sponsor and certain other Persons are parties to that certain Registration Rights Agreement, dated as of July 11, 2007, as amended from time to time (the “Wengen Registration Rights Agreement”), pursuant to which Sponsor and such other Persons are granted certain registration rights in connection with the initial public offering and other registration of securities of the Corporation, (b) the Corporation, Sponsor, and the entities set forth on Schedule B hereto (collectively, the “IFC Investors”), are parties to that certain Investors’ Stockholders Agreement, dated January 16, 2013, as amended from time to time, pursuant to which, inter alia, are granted certain registration rights under the Wengen Registration Rights Agreement, and (c) the holders of Common Stock of the Corporation set forth on Schedule C hereto (collectively, the “M&D Investors,” and together with the IFC Investors, the “Other Stockholders”) are each a party to individual stockholder’s agreements with the Corporation and Sponsor, pursuant to each of which, inter alia, each M&D Investor is granted certain piggyback registration rights under the Wengen Registration Rights Agreement in respect of that number of shares of capital stock set forth therein;

 

WHEREAS, on the date hereof, the Investors purchased from the Corporation and the Corporation sold to the Investors pursuant to that certain Subscription Agreement dated December 4, 2016 (the “Subscription Agreement”) (i) 23,000 shares of Series A-1 Preferred Stock having an initial liquidation preference of $1,000 per share and (ii) 377,000 shares of Series A-2 Preferred Stock having an initial liquidation preference of $1,000 per share, in each case in the allocation set forth in the Subscription Agreement and subject to adjustment as provided in the Certificate of Designations which sets forth the rights, preferences and privileges of the Series A Preferred Stock (as defined in the Certificate of Designations);

 

WHEREAS, the Series A Preferred Stock shall be convertible into shares of the Corporation’s Common Stock as provided in the Certificate of Designations, subject to adjustment as set forth therein;

 

WHEREAS, on the date hereof, in connection with the issuance and sale of the Series A Preferred Stock, the Corporation and the Investors entered into that certain Stockholders Agreement; and

 

 

WHEREAS, the Corporation has filed a registration statement on Form S-1 under the Securities Act with the SEC in connection with the proposed initial public offering of its Common Stock.

 

NOW, THEREFORE, for and in consideration of the mutual agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties, intending to be legally bound hereby, agree as follows:

 

Section 1.                                           Definitions.

 

(a)                                 Capitalized terms used and not otherwise defined in this Agreement shall have the meanings ascribed to such terms in the Certificate of Incorporation.

 

(b)                                 As used in this Agreement, the following terms shall have the following meanings:

 

“Addendum Agreement” means an Addendum Agreement in the form attached hereto as Exhibit A.

 

“Affiliate” means, with respect to a specified Person, a Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by, or is under common Control with, such specified Person; provided that an Affiliate shall not include any portfolio company of any Person; provided, further that (i) the Corporation, its subsidiaries and its other Affiliates shall not be considered Affiliates of any Investor or of any such party’s Affiliates and (ii) no Investor or any of its Affiliates or Permitted Transferees (as defined in the Stockholders Agreement) shall be considered an Affiliate of the Corporation, another Investor or any of such other Investor’s Affiliates or Permitted Transferees.

 

“Agreement” shall have the meaning set forth in the preamble.

 

“Business Day” means any day excluding Saturday, Sunday or any day which is a legal holiday under the laws of the State of New York or is a day on which banking institutions are authorized or required by law or other governmental action to close.

 

“Certificate of Designations” means the Certificate of Designations relating to the Corporation’s Series A Preferred Stock, as it may be amended, restated, supplemented or modified from time to time.

 

“Certificate of Incorporation” means the certificate of incorporation of the Corporation (including the Certificate of Designations), as it may be amended, restated, supplemented or modified from time to time.

 

“Common Stock” means (a) the common stock of the Corporation, par value $0.001 per share, (b) all shares hereafter authorized of any class of common stock of the Corporation, which has the right (subject always to the rights of any class or series of Preferred Stock of the Corporation) to participate in the distribution of the assets and earnings of the Corporation without limit as to per share amount, and (c) any other securities into which or for

 

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which any of the securities described in clause (a) or (b) may be converted or exchanged pursuant to a plan of recapitalization, reorganization, merger, consolidation, sale of assets or other similar transaction, and, following the closing date of an IPO or QPO, the class of shares of Capital Stock issued by the Corporation to the public.

 

“Common Stockholders” means any holder of Common Stock other than the Investors (including the Sponsor and the Other Stockholders).

 

“Conversion Stock” means the shares of Common Stock that are issued or issuable upon conversion of any or all of the outstanding shares of Series A Preferred Stock pursuant to the Certificate of Designations.

 

“Corporation” shall have the meaning set forth in the preamble.

 

“Demand Notice” shall have the meaning set forth in Section 3(a)(i).

 

“Demand Registration” shall have the meaning set forth in Section 3(a)(i).

 

“Demand Registration Holder” shall have the meaning set forth in Section 3(a)(i).

 

“Equity Security” has the meaning ascribed to such term in Rule 405 under the Securities Act, and in any event includes any security having the attendant right to vote for directors or similar representatives.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor statute thereto and the rules and regulations of the SEC promulgated thereunder.

 

“FINRA” means the Financial Industry Regulatory Authority or any successor agency having jurisdiction under the Exchange Act.

 

“Holder” means each Person that beneficially holds, directly or indirectly, Registrable Securities and is a party to this Agreement (including any Person that becomes a Party pursuant to Section 11(c)), except for the Corporation.

 

“IFC Investors” shall have the meaning set forth in the recitals.

 

“Indemnified Party” shall have the meaning set forth in Section 8(c).

 

“Indemnifying Party” shall have the meaning set forth in Section 8(c).

 

“Investors” shall have the meaning set forth in the preamble.

 

“Lock-Up Agreement” shall have the meaning set forth in Section 5(a).

 

“Lock-Up Period” shall have the meaning set forth in Section 5(a).

 

“Long-Form Registration” shall have the meaning set forth in Section 3(a)(i).

 

“Losses” shall have the meaning set forth in Section 8(a).

 

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“M&D Investors” shall have the meaning set forth in the recitals.

 

“Non-Marketed Take-Down” shall have the meaning set forth in Section 4(c).

 

“Notice” shall have the meaning set forth in Section 3(a).

 

“Other Stockholders” shall have the meaning set forth in the recitals.

 

“Permitted Transferee” means any Person that is a Transferee of a Permitted Transfer (as defined in the Stockholders’ Agreement).

 

“Person” means any individual, firm, corporation, partnership, limited liability company, trust, estate, joint venture, Governmental Authority or other entity.

 

“Piggyback Holder” shall have the meaning set forth in Section 4(a).

 

“Piggyback Notice” shall have the meaning set forth in Section 4(a).

 

“Piggyback Registration” shall have the meaning set forth in Section 4(a).

 

“Piggyback Response” shall have the meaning set forth in Section 4(a).

 

“Priority Amount” means shares of Registrable Securities constituting Conversion Stock in a dollar amount equal to, as of any date of determination, the greater of (a) 25% of the aggregate offering price of all Common Stock proposed to be offered and sold in the Initial Follow-On Public Offering, and (b) $275 million.  For avoidance of doubt, the Priority Amount shall be deemed satisfied in full for purposes of this Agreement in the event that the Investors have registered and sold Registrable Securities constituting Conversion Stock in connection with the Registration Statements hereunder in an amount not less than $275 million.

 

“Proceeding” means any action, claim, suit, investigation, audit, controversy, arbitration or proceeding (including an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

 

“Prospectus” means the prospectus included in any Registration Statement (including a prospectus that discloses information previously omitted from a prospectus filed as part of an effective Registration Statement in reliance upon Rule 430A promulgated under the Securities Act and any free writing prospectus), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such prospectus.

 

“Public Offering” means the offer and sale of Common Stock to the public pursuant to an effective Registration Statement (other than Form S-4 or Form S-8 or any similar or successor form) filed under the Securities Act or any comparable law or regulatory scheme of any foreign jurisdiction.

 

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“Registrable Securities” means any and all shares of Common Stock and any other shares of Common Stock or securities convertible into Common Stock issued or issuable with respect to any such shares of Common Stock by way of share split, or in connection with a combination of shares, share dividend, recapitalization, merger, exchange, conversion, or reclassification.  As to any particular Registrable Securities, once issued, such shares of Common Stock (or securities convertible into Common Stock) shall cease to be Registrable Securities when (i) they are sold pursuant to an effective Registration Statement under the Securities Act, (ii) they are sold pursuant to Rule 144 (or any similar provision then in force under the Securities Act), (iii) they shall have ceased to be outstanding, or (iv) they are sold in a private transaction in which the Transferor’s rights under this Agreement are not assigned to the Transferee of such securities.  The same Registrable Security may not be registered under more than one Registration Statement at any one time.

 

“Registration Statement” means any registration statement of the Corporation under the Securities Act which covers the offering of any securities, including any Prospectus or amendments and supplements to such registration statement, including post-effective amendments, all exhibits and all material incorporated by reference or deemed to be incorporated by reference in such registration statement.

 

“Requisite Participating Holders” means, as of any date of determination, the Holders of two-thirds or more of the aggregate Modified Liquidation Preference as of such date or, if then converted, Conversion Stock, in each case as of such date, voting together as a separate class, that elect to participate in an offering or sale of Conversion Stock pursuant to an effective Registration Statement; provided that, from the date hereof until the Abraaj Second Payment Date (as defined in the Subscription Agreement), such amount shall be determined as if Abraaj (as defined in the Subscription Agreement) has paid its entire Investor Initial Purchase Price (as defined in the Subscription Agreement), including, for the avoidance of doubt, the portion to be funded on the Abraaj Second Payment Date. Notwithstanding the foregoing or the applicable provisions of the General Corporation Law of the State of Delaware, including Section 242(b) thereof, shares of Series A Preferred Stock or Conversion Stock, as applicable, held by the Current Stockholders (as defined in the Subscription Agreement) or any Affiliates of the Current Stockholders, if any, shall not be counted for purposes of determining whether the Requisite Participating Holders threshold has been satisfied (and shall be disregarded in the numerator and the denominator of that determination); provided, that, such restriction shall automatically terminate without any further action upon the Transfer of shares of Series A Preferred Stock or Conversion Stock, as applicable, by the Current Stockholders or any Affiliates of the Current Stockholders, as applicable, to an Unaffiliated Third Party and such Unaffiliated Third Party shall be entitled to vote or consent to the actions subject to a vote or consent of the Requisite Participating Holders pursuant hereto.

 

“Requisite Series A Preferred Holders” shall mean, as of any date of determination, the Holders of two-thirds or more of the aggregate Modified Liquidation Preference as of such date or, if then converted, Conversion Stock, in each case as of such date, voting together as a separate class; provided that, from the date hereof until the Abraaj Second Payment Date (as defined in the Subscription Agreement), such amount shall be determined as if Abraaj (as defined in the Subscription Agreement) has paid its entire Investor Initial Purchase Price (as defined in the Subscription Agreement), including, for the avoidance of doubt, the

 

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portion to be funded on the Abraaj Second Payment Date.  Notwithstanding the foregoing or the applicable provisions of the General Corporation Law of the State of Delaware, including Section 242(b) thereof, subject to the last sentence of this definition, shares of Series A Preferred Stock or Conversion Stock, as applicable, held by the Current Stockholders (as defined in the Subscription Agreement) or any Affiliates of the Current Stockholders, if any, shall not be counted for purposes of determining whether the Requisite Series A Preferred Holders threshold has been satisfied (and shall be disregarded in the numerator and the denominator of that determination); provided, that, such restriction shall automatically terminate without any further action upon the Transfer of shares of Series A Preferred Stock or Conversion Stock, as applicable, by the Current Stockholders or any Affiliates of the Current Stockholders, as applicable, to an Unaffiliated Third Party (as defined in the Subscription Agreement) and such Unaffiliated Third Party shall be entitled to vote or consent to the actions subject to a vote or consent of the Requisite Series A Preferred Holders pursuant hereto.  Solely for purposes of the affirmative determination of the Requisite Series A Preferred Holders to require the Corporation to register pursuant to the first sentence of Section 3 hereof, the number of shares of Series A Preferred Stock then held by the Current Stockholders or any Affiliates of the Current Stockholders, if any, shall be counted for purposes of determining whether the Requisite Series A Preferred Holders threshold has been satisfied (both in the numerator and the denominator of that determination).

 

“Rule 144” means Rule 144 under the Securities Act, as such Rule may be amended from time to time, or any successor rule or regulation hereafter adopted by the SEC.

 

“SEC” means the United States Securities and Exchange Commission or any successor agency having jurisdiction under the Securities Act.

 

“Securities Act” means the United States Securities Act of 1933, as amended, and the rules and regulations thereunder.

 

“Shelf-Holders” shall have the meaning set forth in Section 4(c).

 

“Shelf Notice”  shall have the meaning set forth in Section 3(a)(vi).

 

“Shelf Registration Statement” shall have the meaning set forth in Section 3(a)(v).

 

“Shelf Underwritten Offering” shall have the meaning set forth in Section 4(c).

 

“Short-Form Registrations” shall have the meaning set forth in Section 3(a)(i).

 

“Sponsor” shall have the meaning set forth in the preamble.

 

“Stockholders Agreement” means that certain Stockholders Agreement, dated as of the date hereof, entered into by and among the Corporation, the Investors and the other parties thereto, as it may be amended, restated, supplemented or modified from time to time.

 

“Take-Down Notice” shall have the meaning set forth in Section 4(c).

 

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“underwritten registration” or “underwritten offering” means a registration in which securities of the Corporation are sold to an underwriter for reoffering to the public.

 

Section 2.                                           Conversion of Series A Preferred Stock; Sponsor Transfer Restrictions.  The shares of Series A Preferred Stock shall be convertible by the Corporation or any Investor solely pursuant to the Certificate of Incorporation and otherwise in accordance with this Agreement.

 

Section 3.                                           Demand Registrations.

 

(a)                                 Requests for Registration.

 

(i)                                     Subject to the following paragraphs of this Section 3(a), and the limitations on the number of Demand Registrations under Section 3(e), if any shares of Series A Preferred Stock are converted or, within the following forty-five (45) days, required or entitled to be converted, the Requisite Series A Preferred Holders (such Holders, a “Demand Registration Holder”) shall have the right, by delivering a written notice to the Corporation, to require the Corporation to register pursuant to the terms of this Agreement, under and in accordance with the provisions of the Securities Act, the offer and sale of the number or dollar amount of Registrable Securities constituting Conversion Stock requested to be so registered pursuant to the terms of this Agreement on Form S-1 or any similar or successor long-form registration (such registration form utilized hereunder, a “Long-Form Registration”) or Form S-3 or any similar or successor short-form registration (such registration form utilized hereunder, a “Short-Form Registration”) (any such written notice delivered pursuant to this clause, a “Demand Notice” and any such registration, a “Demand Registration”).  The Demand Registration Holder may, in connection with any Demand Registration that is on Short-Form Registration, require the Corporation to file such Registration Statement with the SEC in accordance with and pursuant to Rule 415 under the Securities Act including, if the Corporation is then eligible, as an automatic shelf registration.  Following receipt of a Demand Notice for a Demand Registration in accordance with this Section 3(a), the Corporation shall use its reasonable best efforts to file a Registration Statement as promptly as practicable (but not later than sixty (60) days after the Demand Notice is delivered) and shall use its reasonable best efforts to cause such Registration Statement to be declared effective under the Securities Act as promptly as practicable after the filing thereof; provided, that, in connection with such Registration Statement, the Corporation shall in good faith consider any underwriter recommendations from the Demand Registration Holder, but shall otherwise have no obligation to implement any such recommendations.  Notwithstanding anything to the contrary in this Agreement, no Demand Notice may be provided prior to the closing of an IPO or QPO.  In addition, during the Lock-Up Period, if any, no Demand Notice may be given if the proposed effective date for the Registration Statement thereof is a date prior to the expiration of such Lock-Up Period.

 

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(ii)                                  No Demand Registration shall be deemed to have occurred for purposes of this Section 3 if (A) the Registration Statement relating thereto does not become effective other than as a direct consequence of a material default or material breach by such Demand Registration Holder, (B) the Registration Statement relating thereto is not maintained effective for the period required pursuant to this Section 3, (C) the offering of the Registrable Securities pursuant to such Registration Statement is subject to a stop order, injunction, or similar order or requirement of the SEC during such period, (D) the request for registration is withdrawn by the requesting Demand Registration Holder for any reason within ten (10) Business Days of the Demand Notice, (E) less than the lesser of Registrable Securities constituting Conversion Stock representing the then applicable Priority Amount or seventy-five percent (75%) of the Registrable Securities constituting Conversion Stock requested by the Demand Registration Holder for inclusion in such registration are so included pursuant to Section 3(b), (F) pursuant to clause (c) or clause (d) below, or (G) in the event of an underwritten offering, the conditions to closing specified in the purchase agreement or underwriting agreement entered into in connection with such registration are not satisfied or waived other than as a direct consequence of a material default or material breach by such Demand Registration Holder; provided, however, in each case, that such requesting Demand Registration Holder shall be entitled to an additional Demand Registration in lieu thereof.

 

(iii)                               Within five (5) Business Days after receipt by the Corporation of a Demand Notice in accordance with this Section 3(a), the Corporation shall give written notice (the “Notice”) of such Demand Notice to all other Holders and shall, subject to the provisions of Section 3(b), include in such registration all Registrable Securities constituting Conversion Stock with respect to which the Corporation received written requests for inclusion therein within five (5) Business Days after such Notice is given by the Corporation to such Holders; provided, however, that the Corporation shall only be required to deliver any Notice as provided in Section 4(a).

 

(iv)                              All requests made pursuant to this Section 3 shall specify the number or dollar amount of Registrable Securities constituting Conversion Stock to be included for registration and the intended methods of disposition thereof.

 

(v)                                 The Corporation shall be required to maintain the effectiveness of the Registration Statement with respect to any Demand Registration for a period of at least 180 days after the effective date thereof or such shorter period during which all Registrable Securities included in such Registration Statement have actually been sold; provided, however, that such period shall be extended for a period of time equal to the period the Holders are required to refrain from selling any securities included in such Registration Statement at the request of the Corporation or an underwriter selected by the Corporation pursuant to the provisions of this Agreement; provided, further, that if such registration is a shelf registration statement that permits sales of Common Stock on a delayed or continuous basis pursuant to Rule 415 under the Securities Act (a “Shelf

 

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Registration Statement”), such Demand Registration shall only be deemed to have been effected if such Registration Statement remains effective for the lesser of (i) 365 days and (ii) until all Registrable Securities registered thereunder have actually been sold.

 

(vi)                              Without limiting the foregoing, within ten (10) Business Days after the Corporation becomes eligible to file a Shelf Registration Statement or, if earlier, at any time within the thirty (30) day period before the Corporation reasonably expects it will become so eligible, the Corporation shall give written notice (the “Shelf Notice”) to all Holders and shall include in such registration all Registrable Securities constituting Conversion Stock of the Investors. The Corporation shall as promptly as practicable, and in any event within twenty (20) Business Days after the giving of the Shelf Notice, file with the SEC a Shelf Registration Statement with respect to such Registrable Securities to be included in accordance with the foregoing sentence and shall amend such Shelf Registration Statement at such times and as reasonably requested by Holders so as to permit the inclusion of any Registrable Securities constituting Conversion Stock therein.  With respect to any Shelf Registration Statement covering Registrable Securities, the Corporation shall use its reasonable best efforts (if the Corporation is not eligible to use an automatic Shelf Registration Statement at the time of filing) to keep such Shelf Registration Statement continuously effective under the Securities Act in order to permit the prospectus forming a part thereof to be usable by the applicable Holder until the date as of which all Registrable Securities included in such Shelf Registration Statement have been sold pursuant to the Shelf Registration Statement or another Registration Statement filed under the Securities Act (but in no event prior to the applicable period referred to in Section 4(a)(3) of the Securities Act and Rule 174 thereunder).

 

(b)                                 Priority on Demand Registration.  If any of the Registrable Securities registered pursuant to a Demand Registration are to be sold in a firm commitment underwritten offering, and the managing underwriter or underwriters advise the Corporation and/or the Holders of such securities in writing that in its reasonable view the total number or dollar amount of Registrable Securities proposed to be sold in such offering (including securities proposed to be included by other holders of securities entitled to include securities in such Registration Statement pursuant to incidental or piggyback registration rights) exceeds the number of Registrable Securities that can be sold in such offering without adversely affecting the success of such offering, then there shall be included in such firm commitment underwritten offering the number or dollar amount of Registrable Securities that in the good faith opinion of such managing underwriter can be sold without adversely affecting such offering, and such number of Registrable Securities shall be allocated as follows:

 

(i)                                     first, to the Investors up to the Priority Amount, Registrable Securities constituting Conversion Stock which shall be allocated among the Investors pro rata on the basis of the number of such shares of Registrable Securities constituting Conversion Stock requested to be included in such Registration Statement (including pursuant to the second to last sentence of this Section 3(b)) by each Investor;

 

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(ii)                                  second, to the Investors, the Sponsor and the Other Stockholders, the number of Registrable Securities requested by such Investors, the Sponsor and the Other Stockholders to be included in such Registration Statement, which shall be allocated pro rata among them on the basis of the number of Registrable Securities each such Person requested to include in such offering;

 

(iii)                               third, to the Corporation, the number of shares of Common Stock requested by the Corporation (as the case may be) for inclusion in such offering; and

 

(iv)                              fourth, to any other Persons entitled to participate in such Registration Statement, the number of Registrable Securities requested by such Persons to be included in such Registration Statement, which shall be allocated pro rata among them on the basis of the number of Registrable Securities each such Person requested to include in such offering.

 

For purposes of any underwriter cutback in this Agreement, all Registrable Securities requested to be included in such Registration Statement by any Holder shall also include any Registrable Securities requested to be included by any Permitted Transferees of such Holder and their respective Affiliates; provided, that such Holder and its Permitted Transferees and their respective Affiliates shall be deemed to be a single selling Holder, and any pro rata reduction (unless the managing underwriter requires a different allocation) with respect to such selling Holder shall be based upon the aggregate amount of Registrable Securities requested to be included in such Registration Statement by such selling Holder and its Permitted Transferees and their respective Affiliates.  No securities excluded from the underwriting by reason of the underwriter’s marketing limitation shall be included in such registration.

 

(c)                                  Postponement of Demand Registration.  The Corporation, with the approval of the Board, shall be entitled to postpone (but not more than once in any twelve-month period), for a reasonable period of time not in excess of forty-five (45) days, the filing of a Registration Statement, or suspend the use of such effective Registration Statement (a “Suspension”) for such period of time if the Corporation delivers to the holders requesting the Demand Registration a certificate signed by both the chief executive officer and chief financial officer of the Corporation certifying that, in the good faith judgment of the Board (after consultation with its outside counsel), such registration and offering (i) would reasonably be expected to materially adversely affect or materially interfere with any bona fide material financing or other material transaction of the Corporation under consideration by the Corporation or (ii) would require public disclosure of material information that has not been disclosed to the public, which information (A) would be required to be disclosed in such Registration Statement so that such Registration Statement would not be materially misleading, and (B) the premature disclosure of which would materially adversely affect the Corporation.  Such certificate shall be delivered by the Corporation promptly with respect to such Demand Registration and shall contain a statement in reasonable detail of the reasons for such postponement or suspension and an approximation of the anticipated delay or length of suspension.  The Holders receiving such certificate shall keep the information contained in such certificate confidential subject to the same terms set forth in Section 6(p) and, if the certificate relates to the suspension of use of an effective Registration Statement, shall discontinue sales under the Registration Statement.  If the

 

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Corporation shall so postpone the filing of a Registration Statement, a Demand Registration Holder requesting such registration shall have the right to withdraw its request for registration by giving written notice to the Corporation within ten (10) days of the anticipated termination date of the postponement period, as provided in the certificate delivered to the Holders, and if so withdrawn, any shares of Series A Preferred Stock held by such Holder(s) shall not be converted by the Corporation pursuant to the Certificate of Designations other than at the election of such Holder(s) pursuant to the Certificate of Designations or as otherwise provided in the Certificate of Designation.  The Corporation shall promptly notify the selling Holders of the expiration of any period during which it exercised its rights under this Section 3(c).  In the event that the Corporation exercises its rights under this Section 3(c) and any Holder shall not have withdrawn its request for registration pursuant to this Section 3(c), it shall, as promptly as practicable following the expiration of the applicable deferral or suspension period, file or update and use its reasonable best efforts to cause the effectiveness of, as applicable, the applicable deferred or suspended Registration Statement.

 

(d)                                 Cancellation of a Demand Registration.  The Requisite Participating Holders that delivered the Demand Notice to the Corporation in connection with an offering pursuant to this Section 3 shall have the right, at any time prior to the effectiveness of the applicable Registration Statement, to notify the Corporation that they have determined that the Registration Statement filed in connection with such offering be abandoned or withdrawn, in which event the Corporation shall abandon or withdraw such Registration Statement.  In such event, the Investors shall be entitled to an additional Demand Registration in lieu thereof.  For the avoidance of doubt, the foregoing right shall not apply to a Registration Statement filed by the Corporation pursuant to Section 3(a)(vi) hereof.

 

(e)                                  Number of Demand Notices.  In connection with the provisions of this Section 3, the Demand Registration Holder shall have two (2) Demand Notices, in each case with respect to Long-Form Registrations which they are permitted to deliver (or cause to be delivered) to the Corporation hereunder; provided, that the Demand Registration Holder shall not be permitted to deliver a Demand Notice with a proposed effective date that is a date on which the conversion of shares of Series A Preferred Stock held by the Demand Registration Holder would not be permitted pursuant to the terms of the Certificate of Designations; and provided, further, that the Corporation shall not be required to effect a Long Form Registration within six (6) months after the effective date of any other Long Form Registration of the Corporation.  The Investors shall have an unlimited number of Demand Notices with respect to Short-Form Registrations which they are permitted to deliver (or cause to be delivered) to the Corporation hereunder.  The Corporation shall not be required to effect a Demand Registration if, (x) in the event that the registration contemplated by the Demand Notice is an underwritten registration, the managing underwriter shall advise the Corporation that, or (y) in the event that such registration is not underwritten, the Board of Directors in good faith shall determine that, the aggregate offering price the aggregate offering price of the Registrable Securities to be sold in such offering is not reasonably expected to exceed $10,000,000.

 

(f)                                   Registration Statement Form.  If any registration requested pursuant to this Section 3 which is proposed by the Corporation to be effected by the filing of a Short-Form Registration shall be in connection with an underwritten Public Offering, and if the managing underwriter shall advise the Corporation in writing that, in its reasonable opinion, the

 

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use of another form of Registration Statement is of material importance to the success of such proposed offering or is otherwise required by applicable law, then such registration shall be effected on such other form.

 

(g)                                  If a Demand Registration has been requested or is required to be effected pursuant to this Section 3, the Corporation may, at any time prior to the date that the applicable Registration Statement is required to be filed hereunder, convert such Demand Registration, at its sole cost and expense, to an Initial Follow-On Public Offering subject to the provisions of Section 4 of this Agreement (which for purposes of Section 4 will be considered a Registration Statement initiated by the Corporation); provided, however, that such conversion shall not delay, suspend, terminate or result in the loss or reduction of any rights, preferences or benefits that otherwise would have inured to the benefit of the Demand Registration Holder hereunder had such conversion not been effected.

 

Section 4.                                           Piggyback Registration.

 

(a)                                 Right to Piggyback.  Except with respect to a Demand Registration, the procedures for which are addressed in Section 3, if the Corporation proposes to file a Registration Statement under the Securities Act with respect to an offering of Common Stock (including for an Initial Follow-On Public Offering), whether or not for sale for its own account (other than a Registration Statement (i) on Form S-4, Form S-8 or any successor forms thereto or (ii) filed solely in connection with an exchange offer or any employee benefit or dividend reinvestment plan), then, the Corporation shall give prompt written notice of such filing at least twenty (20) days before the anticipated filing date (the “Piggyback Notice”) to each Investor (each, a “Piggyback Holder”).  Subject to Section 4(b), (i) the Piggyback Notice shall offer each Piggyback Holder the opportunity to include (or cause to be included) in such Registration Statement the number of Registrable Securities constituting Conversion Stock as each such Piggyback Holder may request (a “Piggyback Registration”), (ii) each Piggyback Holder may elect to participate in such Registration Statement by written notice to the Corporation requesting the inclusion of any of such Holder’s shares of Registrable Securities constituting Conversion Stock in such Piggyback Registration within ten (10) days following such Holder’s receipt of the Piggyback Notice (the “Piggyback Response”), and (iii) the Corporation shall include in each such Piggyback Registration all Registrable Securities constituting Conversion Stock with respect to which the Corporation has received a timely Piggyback Response.  The Corporation shall not be required to maintain the effectiveness of the Registration Statement for a Piggyback Registration (including for an Initial Follow-On Public Offering) beyond the earlier to occur of (A) 180 days after the effective date thereof, and (B) consummation of the distribution by the requesting Piggyback Holder of the Registrable Securities included in such Registration Statement.

 

(b)                                 Priority on Piggyback Registrations.  The Corporation shall use reasonable best efforts to cause the managing underwriter or underwriters of a proposed underwritten offering to permit Holders who have submitted a Piggyback Response in connection with such offering to include in such offering all Registrable Securities constituting Conversion Stock included in each Holder’s Piggyback Response on the same terms and conditions as any other shares of Common Stock, if any, of the Corporation included in such offering.  Notwithstanding the foregoing, if the managing underwriter or underwriters of such

 

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underwritten offering have informed the Corporation that it is their good faith opinion that the total amount of securities that such Holders, the Corporation and any other Persons having rights to participate in such registration, intend to include in such offering exceeds the number that can be sold in such offering without adversely affecting the success of such offering, then there shall be included in such offering the number or dollar amount of such securities that in the good faith opinion of such managing underwriter or underwriters can be sold without adversely affecting such offering, and such number of securities shall be allocated as follows:

 

(i)                                     first, to the Investors up to the Priority Amount, Registrable Securities constituting Conversion Stock which shall be allocated among the Investors pro rata on the basis of the number of such shares of Registrable Securities constituting Conversion Stock requested to be included in such Registration Statement (including pursuant to the second to last sentence of this Section 4(b)) by each Investor;

 

(ii)                                  second, to the Investors, the Sponsor and the Other Stockholders, the number of Registrable Securities requested by such Investors, the Sponsor and the Other Stockholders to be included in such Registration Statement, which shall be allocated pro rata among them on the basis of the number of Registrable Securities each such Person requested to include in such offering;

 

(iii)                               third, to the Corporation, the number of shares of Common Stock requested by the Corporation (as the case may be) for inclusion in such offering; and

 

(iv)                              fourth, to any other Persons entitled to participate in such Registration Statement, the number of Registrable Securities requested by such Persons to be included in such Registration Statement, which shall be allocated pro rata among them on the basis of the number of Registrable Securities each such Person requested to include in such offering;

 

provided, however, if the Corporation initiated the process to sell Common Stock in a Public Offering (including in respect of an Initial Follow-On Public Offering), clause (ii) above will become “third” in the hierarchy, and clause (iii) above will become “second.”

 

For purposes of any underwriter cutback in this Agreement, all Registrable Securities requested to be included in such Registration Statement by any Holder shall also include any Registrable Securities requested to be included by any Permitted Transferees of such Holder and their respective Affiliates; provided, that such Holder and its Permitted Transferees and their respective Affiliates shall be deemed to be a single selling Holder, and any pro rata reduction (unless the managing underwriter requires a different allocation) with respect to such selling Holder shall be based upon the aggregate amount of Registrable Securities requested to be included in such Registration Statement by such selling Holder and its Permitted Transferees and their respective Affiliates.  No securities excluded from the underwriting by reason of the underwriter’s marketing limitation shall be included in such registration.

 

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(c)                                  Shelf-Take Downs.  At any time that a Shelf-Registration Statement covering Registrable Securities is effective, any Investor (each, a “Shelf-Holder”) may deliver a notice to the Corporation (a “Take-Down Notice”) stating that it intends to effect an underwritten offering (including an underwritten “block trade”) of all or part of its Registrable Securities constituting Conversion Stock included by it on the Shelf Registration Statement (a “Shelf Underwritten Offering”), and the Corporation shall amend or supplement the Shelf-Registration Statement as may be necessary in order to enable such Registrable Securities to be distributed pursuant to the Shelf Underwritten Offering (taking into account the inclusion of Registrable Securities by any other Holders pursuant to this Section 4(c)) and comply with Section 10; provided, that the Corporation shall not be required to effect a Shelf Underwritten Offering if the managing underwriter shall advise the Corporation that, in its reasonable opinion, the aggregate offering price of the Registrable Securities to be sold in such offering is not expected to exceed $10,000,000. The rights of the Shelf-Holders to deliver a Take-Down Notice shall be unlimited.  In connection with any Shelf Underwritten Offering:

 

(i)                                     the Corporation promptly shall deliver the Take-Down Notice to the Investors and all other Holders included on such Shelf-Registration Statement and permit each such Holder to sell its Registrable Securities included on the Shelf-Registration Statement in the Shelf Underwritten Offering if such Holder notifies the proposing Holders and the Corporation within three (3) days after delivery of the Take-Down Notice to such Holder; and

 

(ii)                                  in the event that the underwriter determines and advises the Corporation and such Shelf-Holders in writing that, in its reasonable view, marketing factors (including an adverse effect on the per share offering price) require a limitation on the number of Registrable Securities which would otherwise be included in such take down, the underwriter may limit the number of Registrable Securities which would otherwise be included in such take-down offering in the same manner as described in Section 3(b), with respect to a limitation of shares to be included in a registration.

 

If a Shelf-Holder desires to effect a sale of Registrable Securities registered under a shelf-registration statement that does not constitute a Shelf Underwritten Offering (a “Non-Marketed Take-Down”), such Shelf-Holder shall so indicate in a written request delivered to the Corporation no later than five (5) Business Days prior to the expected date of such Non-Marketed Take-Down, and, if necessary, the Corporation shall file and effect an amendment or supplement to its Shelf Registration Statement for such purpose as soon as practicable.

 

Section 5.                                           Restrictions on Public Sale by Holders.

 

(a)                                 Each Holder that participates in any underwritten offering made pursuant to a Registration Statement filed pursuant to Section 3 or Section 4 in which the Investors individually or collectively propose to register and sell an amount of Conversion Stock equal to or greater than the Priority Amount, hereby agrees, if requested (pursuant to a written notice) by the managing underwriter or underwriters in connection with any such underwritten offering, to enter into an agreement, the duration and terms of which shall be agreed between the Holder(s) and the managing underwriter or underwriters in such underwritten offering, whereby

 

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such Holder(s) agrees not to effect any public sale or distribution of any of the Common Stock (except as part of such underwritten offering), including a sale pursuant to Rule 144 or any swap or other economic arrangement that transfers to another Person any of the economic consequences of owning shares of Common Stock, or to give any Demand Notice (a “Lock-Up Agreement”), with respect to any underwritten offering, after the date of the Prospectus relating to such offering (or the applicable final Prospectus supplement if such offering is made pursuant to a “shelf” registration), pursuant to which such offering shall be made, plus an extension period as may be proposed by the managing underwriter to address FINRA regulations regarding the publishing of research, or such lesser period as is required by the managing underwriter.  Notwithstanding anything to the contrary set forth herein, in the event that the Corporation or underwriters release any party to a Lock-Up Agreement from any or all of such party’s obligations thereunder, all Holders shall be similarly released from their obligations thereunder in the same manner and to the same extent as such released party, and each Lock-Up Agreement shall contain a provision to such effect.

 

(b)                                 If any registration pursuant to Section 3 or Section 4 is made in connection with any underwritten Public Offering, the Corporation will not effect any public sale or distribution of any Common Stock (or securities convertible into or exchangeable or exercisable for Common Stock) (other than a Registration Statement (i) on Form S-4, Form S-8 or any successor forms thereto or (ii) filed solely in connection with an exchange offer or any employee benefit or dividend reinvestment plan) for its own account, within ninety (90) days after the effective date of such registration, or such lesser period as may otherwise be agreed between the Corporation and the managing underwriter or underwriters of such Public Offering.

 

Section 6.                                           Registration Procedures.  If and whenever the Corporation is required to effect the registration of any Registrable Securities under the Securities Act as provided in Section 3 or Section 4, the Corporation shall effect such registration to permit the sale of such Registrable Securities in accordance with the intended method or methods of disposition thereof, and pursuant thereto the Corporation shall cooperate in the sale of the securities and shall, as expeditiously as possible:

 

(a)                                 prepare and file, in each case as promptly as reasonably practicable, with the SEC a Registration Statement or Registration Statements on such form as shall be available for the sale of the Registrable Securities by the Holders thereof or by the Corporation in accordance with the intended method or methods of distribution thereof, make all required filings by the Corporation with FINRA and use its reasonable best efforts to cause such Registration Statement to become effective as soon as reasonably practicable and to remain effective as provided herein; provided, however, that before filing a Registration Statement or Prospectus or any amendments or supplements thereto (including documents that would be incorporated or deemed to be incorporated therein by reference), the Corporation shall furnish or otherwise make available to the Holders of the Registrable Securities covered by such Registration Statement, their counsel and the managing underwriters, if any, copies of all such documents proposed to be filed (including exhibits thereto), which documents will be subject to the reasonable review and comment of such counsel, and such other documents reasonably requested by such counsel, including any comment letter from the SEC and any documents incorporated by reference therein, and, if requested by such counsel, provide such counsel reasonable opportunity to participate in the preparation of such Registration Statement and each

 

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Prospectus included therein and such other opportunities to conduct a reasonable investigation within the meaning of the Securities Act, including reasonable access to the Corporation’s books and records, officers, accountants and other advisors; and the Corporation shall not file any such Registration Statement or Prospectus or any amendments or supplements thereto (including such documents that, upon filing, would be incorporated or deemed to be incorporated by reference therein) with respect to a Demand Registration to which the Requisite Participating Holders, their counsel, or the managing underwriters, if any, shall reasonably object, in writing, on a timely basis, unless, in the opinion of counsel for the Corporation, such filing is necessary to comply with applicable law or regulation;

 

(b)                                 prepare and file with the SEC such amendments, post-effective amendments and supplements to each Registration Statement and the Prospectus used in connection therewith to the extent not publicly available, and such Exchange Act reports as may be reasonably requested by the Holders or as necessary to keep such Registration Statement continuously effective during the period provided herein and comply in all material respects with the provisions of the Securities Act with respect to the disposition of all securities covered by such Registration Statement; and cause the related Prospectus to be supplemented by any Prospectus supplement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of the securities covered by such Registration Statement, and as so supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) under the Securities Act; provided, that if the Corporation prepares any such amendments, post-effective amendments or supplements to a Registration Statement or Prospectus or any such Exchange Act report, the Holders and their respective counsel shall have a reasonable period of time prior to the filing thereof in which to review and comment thereon, which period shall, in any event, be no less than two (2) Business Days;

 

(c)                                  notify each selling Holder, its counsel and the managing underwriters, if any, promptly, and (if requested by any such Person) confirm such notice in writing, (i) when a Prospectus or any Prospectus supplement or post-effective amendment has been filed, and, with respect to a Registration Statement or any post-effective amendment, when the same has become effective, (ii) of any request by the SEC or any other federal or state governmental authority for amendments or supplements to a Registration Statement or related Prospectus or for additional information, (iii) of the issuance by the SEC of any stop order suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose, (iv) if at any time the Corporation has reason to believe that the representations and warranties of the Corporation contained in any agreement (including any underwriting agreement) contemplated by Section 6(o) below cease to be true and correct, (v) of the receipt by the Corporation of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose, and (vi) if the Corporation has knowledge of the occurrence of any event that makes any statement made in such Registration Statement or related Prospectus, any amendment or supplement thereto, or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in such Registration Statement, Prospectus or documents so that, in the case of the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, not misleading, and that in the case of the Prospectus, it will not contain

 

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any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading (which notice shall notify the selling Holders of the occurrence of such an event and shall not provide additional information regarding such event to the extent such information would constitute material non-public information);

 

(d)                                 use its reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement, or the lifting of any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction at the earliest date reasonably practicable;

 

(e)                                  if requested by the managing underwriters, if any, or the Requisite Participating Holders in connection with an underwritten offering, promptly include in a Prospectus supplement or post-effective amendment such information as the managing underwriters, if any, and such Holders may reasonably request in order to permit or facilitate the intended method of distribution of such securities and make all required filings of such Prospectus supplement or such post-effective amendment as soon as reasonably practicable after the Corporation has received such request; provided, however, that the Corporation shall not be required to take any actions under this Section 6(e) that are not, in the opinion of counsel for the Corporation, in compliance with applicable law or regulation;

 

(f)                                   furnish or make available to each selling Holder, its counsel and each managing underwriter, if any, without charge, at least one conformed copy of the Registration Statement, the Prospectus and Prospectus supplements, if applicable, and each post-effective amendment thereto, including financial statements (but excluding schedules, all documents incorporated or deemed to be incorporated therein by reference, and all exhibits, unless requested in writing by such Holder, counsel or underwriter); provided, that the Corporation may furnish or make available any such documents in electronic format;

 

(g)                                  deliver to each selling Holder, its counsel, and the underwriters, if any, without charge, as many copies of the Prospectus or Prospectuses (including each form of Prospectus) and each amendment or supplement thereto as such Persons may reasonably request from time to time in connection with the distribution of the Registrable Securities; provided, that the Corporation may furnish or make available any such documents in electronic format; and the Corporation, subject to the last paragraph of this Section 6, hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders and the underwriters, if any, in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any such amendment or supplement thereto in accordance with this Agreement;

 

(h)                                 prior to any public offering of Registrable Securities, use its reasonable best efforts to register or qualify or cooperate with the selling Holders, the underwriters, if any, and their respective counsel in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the securities or “blue sky” laws of such jurisdictions within the United States as any seller or underwriter reasonably requests in writing and to keep each such registration or qualification (or exemption therefrom) effective during the period such

 

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Registration Statement is required to be kept effective and to take any other action that may be necessary or advisable to enable such Holders to consummate the disposition of such Registrable Securities in such jurisdiction; provided, however, that the Corporation will not be required to (i) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify, or (ii) take any action that would subject it to general service of process or taxation in any such jurisdiction where it is not then so subject;

 

(i)                                     cooperate with the selling Holders and the managing underwriters, if any, to facilitate the timely preparation and delivery of certificates (not bearing any legends) representing Registrable Securities to be sold after receiving written representations from each Holder of such Registrable Securities that the Registrable Securities represented by the certificates so delivered by such Holder will be transferred in accordance with the Registration Statement, and enable such Registrable Securities to be in such denominations and registered in such names as the managing underwriters, if any, or Holders may request at least two (2) Business Days prior to the settlement date with respect to any sale of Registrable Securities;

 

(j)                                    use its reasonable best efforts to cause the Registrable Securities covered by the Registration Statement to be registered with or approved by such other governmental agencies or authorities within the United States as may be necessary or advisable to enable the seller or sellers of such Registrable Securities or the underwriters, if any, to consummate the disposition of such Registrable Securities, except as may be required solely as a consequence of the nature of such selling Holder’s business, in which case the Corporation will cooperate in all reasonable respects with the granting of such approvals;

 

(k)                                 promptly upon the occurrence of, and its knowledge of, any event contemplated by Sections 6(c)(ii) or (vi) above, prepare a supplement or post-effective amendment to the Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, or file any other required document so that, as thereafter delivered to the purchasers of the Registrable Securities being sold thereunder, such Prospectus responds to such comments or requests for amendments, will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading and as such Registration Statement responds to such comments or request for amendments, will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, not misleading;

 

(l)                                     prior to the effective date of the Registration Statement relating to the Registrable Securities, provide a CUSIP number for the Registrable Securities;

 

(m)                             provide and cause to be maintained a transfer agent and registrar for all Registrable Securities covered by such Registration Statement from and after a date not later than the effective date of such Registration Statement;

 

(n)                                 use its reasonable best efforts to cause all shares of Registrable Securities covered by such Registration Statement to be listed or authorized for quotation or trading on a national securities exchange or automated quotation system if shares of the

 

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particular class of Registrable Securities are at that time listed, quoted or traded on such exchange or automated quotation system, as the case may be, prior to the effectiveness of such Registration Statement;

 

(o)                                 in connection with any underwritten offering, enter into such agreements (including an underwriting agreement in form, scope and substance as is customary in underwritten offerings) and take all such other actions reasonably requested by the Requisite Participating Holders in connection therewith (including those reasonably requested by the managing underwriters, if any) to expedite or facilitate the disposition of Registrable Securities in such underwritten offering, and in such connection, whether or not an underwriting agreement is entered into and whether or not the registration is an underwritten registration, (i) make such representations and warranties to the Holders of such Registrable Securities and the underwriters, if any, with respect to the business of the Corporation and its Subsidiaries, and the Registration Statement, Prospectus and documents, if any, incorporated or deemed to be incorporated by reference therein, in each case, in form, substance and scope as are customarily made by issuers to underwriters in underwritten offerings, and, if true, confirm the same if and when requested, (ii) use its reasonable best efforts to furnish to the selling Holders of such Registrable Securities and the underwriters for such underwritten offering, customary opinions and Rule 10b-5 letters of outside counsel to the Corporation and updates thereof (which counsel and its opinions and letters (in form, scope and substance) shall be reasonably satisfactory to the managing underwriters, if any, and counsels to the selling Holders of the Registrable Securities), addressed to each selling Holder and each of the underwriters, if any, covering the matters customarily covered in opinions requested in underwritten offerings and such other matters as may be reasonably requested by such counsel and underwriters, (iii) use its reasonable best efforts to obtain “cold comfort” letters and updates thereof from the independent certified public accountants of the Corporation (and, if necessary, any other independent certified public accountants of any Subsidiary of the Corporation or of any business acquired by the Corporation for which financial statements and financial data are, or are required to be, included in the Registration Statement) who have certified the financial statements included in such Registration Statement, addressed to each selling Holder (unless such accountants shall be prohibited from so addressing such letters by applicable standards of the accounting profession) and each of the underwriters, if any, such letters to be in customary form and covering matters of the type customarily covered in “cold comfort” letters in connection with underwritten offerings, (iv) if an underwriting agreement is entered into, the same shall contain indemnification and/or contribution provisions and procedures substantially to the effect set forth in Section 8 with respect to all parties to be indemnified pursuant to said Section except as otherwise approved by the Board, and (v) deliver such documents and certificates as may be reasonably requested by the Requisite Participating Holders in connection with such Registration Statement, their counsel and the managing underwriters, if any, to evidence the continued validity of the representations and warranties made pursuant to Section 6(o)(i) above and to evidence compliance with any customary conditions contained in the underwriting agreement or other agreement entered into by the Corporation.  The above shall be done at each closing under such underwriting or similar agreement (or at such other time as may be required thereunder), or as and to the extent required thereunder;

 

(p)                                 make available for inspection by a representative of the selling Holders, any underwriter participating in any such disposition of Registrable Securities, if any,

 

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and any attorneys or accountants retained by such selling Holders or underwriter, at the offices where normally kept, during reasonable business hours, financial and other records, pertinent corporate documents and properties of the Corporation and its Subsidiaries, and cause the officers, directors and employees of the Corporation and its Subsidiaries to supply all information, in each case reasonably requested by any such representative, underwriter, attorney or accountant in connection with such Registration Statement; provided, however, that any information that is not generally publicly available at the time of delivery of such information shall be kept confidential by such Persons unless (i) disclosure of such information is required by court or administrative order, (ii) disclosure of such information, in the opinion of counsel to such Person, is required by law or applicable legal process, or (iii) such information becomes generally available to the public other than as a result of a non-permitted disclosure or failure to safeguard by such Person.  In the case of a proposed disclosure pursuant to (i) or (ii) above, such Person shall be required to give the Corporation written notice of the proposed disclosure prior to such disclosure and, if requested by the Corporation, assist the Corporation in seeking to prevent or limit the proposed disclosure.  Without limiting the foregoing, no such information shall be used by such Person as the basis for any market transactions in securities of the Corporation or its Subsidiaries in violation of law;

 

(q)                                 cause its officers to use their reasonable best efforts to support the marketing of the Registrable Securities covered by the Registration Statement (including participation in “road shows”) taking into account the Corporation’s business needs;

 

(r)                                    cooperate with each seller of Registrable Securities and each underwriter or agent participating in the disposition of such Registrable Securities and their respective counsel in connection with any filings required to be made with FINRA;

 

(s)                                   use its reasonable best efforts to comply with all applicable rules and regulations of the SEC, and make available as soon as reasonably practicable, an earning statement covering the period of at least twelve months, but not more than eighteen months, beginning with the first month after the effective date of the applicable Registration Statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder; and

 

(t)                                    use its reasonable best efforts to take all other steps necessary to effect the registration of the Registrable Securities contemplated hereby.

 

The Corporation may require each Holder that has requested to have securities registered pursuant to Section 3 or Section 4 or that has requested to sell stock in a Shelf Underwritten Offering to which any registration is being effected to furnish to the Corporation in writing such information required in connection with such registration or sale regarding such seller and the distribution of such Registrable Securities as the Corporation may, from time to time, reasonably request in writing and the Corporation may exclude from such registration or sale the Registrable Securities of any Holder who unreasonably fails to furnish such information within a reasonable time after receiving such request.

 

The Corporation shall not file any Registration Statement with respect to any Registrable Securities, or any Prospectus used in connection therewith, and shall not file or make

 

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any amendment to any such Registration Statement or any amendment of or supplement to any such Prospectus, that refers to any Holder covered thereby by name, or otherwise identifies such Holder as the holder of any securities of the Corporation, without the consent of such Holder, such consent not to be unreasonably withheld, conditioned or delayed by such Holder, unless and to the extent such disclosure is required by law or regulation, in which case the Corporation shall provide written notice to such Holder no less than two (2) Business Days prior to the filing of such Registration Statement or any amendment to any such Registration Statement or any Prospectus used in connection therewith or any amendment of or supplement to any such Prospectus.  In addition, the Corporation shall not file any Registration Statement with respect to any Registrable Securities, or any Prospectus used in connection therewith, and shall not file or make any amendment to any Registration Statement or any amendment of or supplement to any such Prospectus, that refers to any Investor by name, or otherwise identifies such Investor as the holder of any securities of the Corporation, without also referring to any other Investor who requests to be named or otherwise identified therein.

 

If the Corporation files any Shelf Registration Statement on Form S-3 for the benefit of the holders of any of its securities other than the Holders, the Corporation agrees that it shall use reasonable best efforts to include in such Shelf Registration Statement such disclosures as may be required by Rule 430B under the Securities Act (referring to the unnamed selling security holders in a generic manner by identifying the initial offering transaction of the securities to the Holders) in order to permit the Holders to be added to such Shelf Registration Statement at a later time through the filing of a Prospectus supplement rather than a post-effective amendment.

 

Each Holder agrees if such Holder has Registrable Securities covered by a Registration Statement that, upon receipt of any notice from the Corporation of the occurrence of any event of the kind described in Sections 6(c)(ii), 6(c)(iii), 6(c)(iv), 6(c)(v), or 6(c)(vi) such Holder will forthwith discontinue disposition of such Registrable Securities covered by such Registration Statement or Prospectus until such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by Section 6(k), or until it is advised in writing by the Corporation that the use of the applicable Prospectus may be resumed, and has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus; provided, however, that the time periods under Section 3 and Section 4 with respect to the length of time that the effectiveness of a Registration Statement must be maintained shall automatically be extended by the amount of time the Holder is required to discontinue disposition of such securities.

 

Section 7.                                           Registration Expenses.  All fees and expenses incident to the performance of or compliance with this Agreement by the Corporation (including (i) all registration and filing fees (including fees and expenses with respect to (A) filings required to be made with the SEC, all applicable securities exchanges and/or FINRA and (B) compliance with securities or “blue sky” laws, including any fees and disbursements of counsel for the underwriters in connection with “blue sky” qualifications of the Registrable Securities pursuant to Section 6(h)), (ii) printing expenses (including expenses of printing certificates for Registrable Securities in a form eligible for deposit with The Depository Trust Company and of printing Prospectuses if the printing of Prospectuses is requested by the managing underwriters, if any, or by the Requisite Participating Holders in connection with any Registration Statement), (iii) messenger, telephone and delivery

 

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expenses of the Corporation, (iv) fees and disbursements of counsel for the Corporation, (v) expenses of the Corporation incurred in connection with any road show, (vi) fees and disbursements of all independent certified public accountants referred to in Section 6(o)(iii) (including the expenses of any “cold comfort” letters required by this Agreement) and any other Persons, including special experts retained by the Corporation, and (vii) fees and disbursements of one counsel (including in connection with any proposed filing of a Registration Statement or Prospectus in connection therewith) for the Holders whose shares are included in a Registration Statement, which counsel shall be selected by the Requisite Participating Holders, shall be borne by the Corporation whether or not any Registration Statement is filed or becomes effective.  In addition, the Corporation shall pay its internal expenses (including all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit, the fees and expenses incurred in connection with the listing of the securities to be registered on any securities exchange on which similar securities issued by the Corporation are then listed and rating agency fees and the fees and expenses of any Person, including special experts, retained by the Corporation.

 

The Corporation shall not be required to pay (i) fees and disbursements of any counsel retained by any Holder or by any underwriter (except as set forth in clauses (i)(B) and (vii) of the first paragraph of this Section 7), (ii) any underwriter’s fees (including discounts, commissions or fees of underwriters, selling brokers, dealer managers or similar securities industry professionals) relating to the distribution of the Registrable Securities (other than with respect to Registrable Securities sold by the Corporation), or (iii) subject to Section 8, any other expenses of the Holders not specifically required to be paid by the Corporation pursuant to the first paragraph of this Section 7.

 

Section 8.                                           Indemnification.

 

(a)                                 Indemnification by the Corporation.  The Corporation shall, without limitation as to time, indemnify and hold harmless, to the fullest extent permitted by applicable law, each Holder whose Registrable Securities are covered by a Registration Statement or Prospectus, the officers, directors, partners, members, managers, shareholders, accountants, attorneys, agents and employees of each of them, each Person who controls each such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, partners, members, managers, shareholders, accountants, attorneys, agents and employees of each such controlling Person, each underwriter, if any, and each Person who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) such underwriter, from and against any and all losses, claims, damages, liabilities, costs (including costs of preparation and reasonable attorneys’ fees and any legal or other fees or expenses incurred by such party in connection with any investigation or Proceeding), expenses, judgments, fines, penalties, charges and amounts paid in settlement or Proceedings in respect thereof (collectively, “Losses”), as incurred, arising out of or based upon any untrue statement (or alleged untrue statement) of a material fact contained in any Prospectus, offering circular, or other document (including any related Registration Statement, notification, or the like) or any amendment thereof or supplement thereto or any document incorporated by reference therein) incident to any such registration, qualification, or compliance, or based on any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or any violation by the Corporation of

 

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the Securities Act, the Exchange Act, any state securities law, or any rule or regulation thereunder applicable to the Corporation and (without limitation of the preceding portions of this Section 8(a)) will reimburse each such Holder, each of its officers, directors, partners, members, managers, shareholders, accountants, attorneys, agents and employees and each Person who controls each such Holder and the officers, directors, partners, members, managers, shareholders, accountants, attorneys, agents and employees of each such controlling Person, each such underwriter, and each Person who controls any such underwriter, for any legal and any other expenses reasonably incurred in connection with investigating and defending or settling any such Losses; provided, that the Corporation shall not be liable in any such case to the extent that any such Losses arises out of or is based on any untrue statement or omission by such Holder or underwriter, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such Registration Statement, disclosure package, Prospectus, offering circular or any amendment thereof or supplement thereto, or any document incorporated by reference therein or other document in reliance upon and in conformity with written information furnished to the Corporation by or on behalf of such Holder or underwriter for use therein.  It is agreed that the indemnity agreement contained in this Section 8(a) shall not apply to amounts paid in settlement of any such Losses (or Proceedings in respect thereof) if such settlement is effected without the consent of the Corporation (which consent shall not be unreasonably withheld, conditioned or delayed by any Holder).

 

(b)                                 Indemnification by Holder.  The Corporation may require, as a condition to including any Registrable Securities in any Registration Statement filed in accordance with this Agreement, that the Corporation shall have received an undertaking reasonably satisfactory to it from the prospective seller of such Registrable Securities to indemnify, to the fullest extent permitted by law, severally and not jointly with any other Holders, the Corporation, its officers, directors, partners, members, managers, shareholders, accountants, attorneys, agents and employees and each Person who controls the Corporation (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) and the officers, directors, partners, members, managers, shareholders, accountants, attorneys, agents, employees of each such controlling Person and all other prospective sellers, from and against all Losses arising out of or based on any untrue statement of a material fact contained in any such Registration Statement, Prospectus, offering circular, or other document, or any omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and to (without limitation of the portions of this Section 8(b)) reimburse the Corporation, its officers, directors, partners, members, managers, shareholders, accountants, attorneys, agents and employees and each Person who controls the Corporation (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) and the officers, directors, partners, members, managers, shareholders, accountants, attorneys, agents, employees of each such controlling Person and all other prospective sellers for any legal or any other expenses reasonably incurred in connection with investigating or defending any such Losses, in each case to the extent, but only to the extent, that such untrue statement or omission is made in such Registration Statement, Prospectus, offering circular, or other document in reliance upon and in conformity with written information furnished to the Corporation by or on behalf of such Holder for inclusion in such Registration Statement, Prospectus, offering circular or other document; provided, however, that the obligations of such Holder hereunder shall not apply to amounts paid in settlement of any such Loss (or Proceedings in respect thereof) if such settlement is effected without the consent of such Holder (which consent shall not be

 

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unreasonably withheld, conditioned or delayed); and provided, further, that the liability of such Holder shall be limited to the net proceeds received by such selling Holder from the sale of Registrable Securities covered by such Registration Statement.

 

(c)                                  Conduct of Indemnification Proceedings.  If any Person shall be entitled to indemnity pursuant to Section 8(a) or Section 8(b) (an “Indemnified Party”), such Indemnified Party shall give prompt notice to the party from which such indemnity is sought (the “Indemnifying Party”) of any claim or of the commencement of any Proceeding with respect to which such Indemnified Party seeks indemnification or contribution pursuant hereto; provided, however, that the delay or failure to so notify the Indemnifying Party shall not relieve the Indemnifying Party from any obligation or liability except to the extent that the Indemnifying Party has been materially prejudiced by such delay or failure.  The Indemnifying Party shall have the right, exercisable by giving written notice to an Indemnified Party promptly after the receipt of written notice from such Indemnified Party of such claim or Proceeding, to assume, at the Indemnifying Party’s expense, the defense of any such claim or Proceeding, with counsel reasonably satisfactory to such Indemnified Party; provided, however, that an Indemnified Party shall have the right to employ separate counsel in any such claim or Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party unless: (i) the Indemnifying Party agrees to pay such fees and expenses; (ii) the Indemnifying Party fails promptly to assume the defense of any such claim or Proceeding, or in any event within thirty (30) days after the date the Indemnified Party’s notice of any claim or Proceeding for which indemnification or contribution is sought is given to the Indemnifying Party; (iii) the Indemnified Party reasonably concludes, based on the advice of counsel, that a conflict of interest exists between the Indemnifying Party and the Indemnified Party in the defense of such claim or Proceeding; or (iv) the Indemnifying Party fails to employ counsel reasonably satisfactory to such Indemnified Party, in which case the Indemnified Party shall have the right to employ separate counsel and to assume the defense of such claim or Proceeding at the Indemnifying Party’s expense; provided, further, however, that the Indemnifying Party shall not, in connection with any one such claim or Proceeding or separate but substantially similar or related claims or Proceedings in the same jurisdiction, arising out of the same general allegations or circumstances, be liable for the fees and expenses of more than one firm of attorneys (together with appropriate local counsel) at any time for all of the Indemnified Parties (unless there is an actual conflict of interest between one or more of the Indemnified Parties and the Indemnifying Party has been notified in writing of such conflict, in which case such conflicted Indemnified Parties or group of conflicted Indemnified Parties (as the case may be) may be represented by separate counsel, the fees and expenses of whom shall be borne by the Indemnifying Party), or for fees and expenses that are not reasonable.  Whether or not such defense is assumed by the Indemnifying Party, such Indemnifying Party will not be subject to any liability for any settlement made without its consent (but such consent will not be unreasonably withheld, conditioned or delayed).  The Indemnifying Party shall not consent to entry of any judgment or enter into any settlement that (x) does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release, in form and substance reasonably satisfactory to the Indemnified Party, from all liability in respect of such claim or litigation for which such Indemnified Party would be entitled to indemnification hereunder or (y) involves the imposition of equitable remedies or any obligations on the Indemnified Party or materially adversely affects such Indemnified Party other than as a result of

 

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financial obligations for which such Indemnified Party would be entitled to indemnification hereunder.

 

(d)                                 Contribution.  If the indemnification provided for in this Section 8 is unavailable to an Indemnified Party in respect of any Losses (other than in accordance with its terms), then each applicable Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, (i) in such proportion as is appropriate to reflect the relative benefits received by the Indemnifying Party, on the one hand, and such Indemnified Party, on the other hand, from the sale of the Registrable Securities covered by such Registration Statement, or (ii) if the allocation provided by the foregoing clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above, but also the relative fault of the Indemnifying Party, on the one hand, and such Indemnified Party, on the other hand, in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations.  The relative fault of such Indemnifying Party, on the one hand, and Indemnified Party, on the other hand, shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made (or omitted) by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent any such action, statement or omission.  The Parties agree that it would not be just and equitable if contribution pursuant to this Section 8(d) were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in the immediately preceding sentence.  Notwithstanding the provisions of this Section 8(d), an Indemnifying Party that is a selling Holder shall not be required to contribute any amount in excess of the amount that such Indemnifying Party has otherwise been, or would otherwise be, required to pay pursuant to Section 8(b) by reason of such untrue or alleged untrue statement or omission or alleged omission.  No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

 

(e)                                  To the extent that any of the Holders is, or would be expected to be, deemed to be an underwriter of Registrable Securities pursuant to any SEC comments or policies or any court of law or otherwise, the Corporation agrees that (i) the indemnification and contribution provisions contained in this Section 8 shall be applicable to the benefit of such Holder in its role as deemed underwriter in addition to its capacity as a Holder (so long as the amount for which any other Holder is or becomes responsible does not exceed the amount for which such Holder would be responsible if the Holder were not deemed to be an underwriter of Registrable Securities) and (ii) such Holder and its representatives shall be entitled to conduct the due diligence which would normally be conducted in connection with an offering of securities registered under the Securities Act, including receipt of customary opinions, Rule 10b-5 letters and comfort letters.

 

(f)                                   Indemnification similar to that specified in the preceding provisions of this Section 8 (with appropriate modifications) shall be given by the Corporation and each seller of Registrable Securities with respect to any required registration or other

 

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qualification of securities under any law or regulation (other than the Securities Act) of any Governmental Authority.

 

(g)                                  Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control.

 

Section 9.                                           Rule 144.

 

(a)                                 After an IPO or QPO, the Corporation shall (i) use reasonable best efforts to file the reports required to be filed by it under the Securities Act and the Exchange Act in a timely manner (or, if the Corporation is not required to file such reports, upon the request of the Requisite Series A Preferred Holders, make publicly available such information), (ii) take such further action as any Holder may reasonably request to permit sales of Registrable Securities pursuant to Rule 144, and (iii) promptly furnish to each Holder forthwith upon written request, (x) a written statement by the Corporation as to its compliance with the reporting requirements of Rule 144, the Securities Act and the Exchange Act, (y) a copy of the most recent annual or quarterly report of the Corporation, and (z) such other reports and documents so filed by the Corporation as such Holder may reasonably request in availing itself of Rule 144, all to the extent required from time to time to enable such Holder to sell Registrable Securities without registration under the Securities Act within the limitations of the exemption provided by Rule 144.  Upon the request of any Holder, the Corporation shall deliver to such Holder a written statement as to whether it has complied with such requirements and, if not, the specifics thereof.

 

(b)                                 The foregoing provisions of this Section 9 are not intended to modify or otherwise affect any restrictions on Transfers contained in the Stockholders Agreement.

 

Section 10.                                    Underwritten Registrations; Registration Participation Requirements.

 

(a)                                 Subject to that certain investment banking services letter, dated as of December 4, 2016, by and between the Corporation and Macquarie Capital, in connection with any underwritten offering, the investment banker or investment bankers and managers shall be selected by the Corporation; provided, that, (i) in connection with a Demand Registration pursuant to Section 3(a) or initiating a Shelf-Takedown pursuant to Section 4(c), the Corporation shall in good faith consider any underwriter or market recommendations from the Demand Registration Holder or the Investors, but shall otherwise have no obligation to implement any such recommendations.

 

(b)                                 No Person may participate in any registration hereunder, unless such Person (i) agrees to sell the Registrable Securities it desires to have covered by a Registration Statement on the basis provided in any underwriting arrangements in customary form and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements in customary form and other documents required under the terms of such underwriting arrangements; provided, that (A) such Person shall not be required to make any representations or warranties other than those related to title and ownership of such Person’s

 

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Registrable Securities being sold and as to the accuracy and completeness of statements made in a Registration Statement, Prospectus, offering circular, or other document in reliance upon and in conformity with written information furnished to the Corporation or the managing underwriter by such Person pertaining exclusively to such Person for use therein, (B) such Person shall not be required to sell more than the number of Registrable Securities that such Person has requested to include in any registration, and (C) if such Person disapproves of the terms of the underwriting, such Person may elect, prior to the effective date of the registration statement filed in connection with such registration, to withdraw therefrom by written notice to the Corporation, the managing underwriters and, in the case of a Demand Registration, a Demand Registration Holder that requested such Demand Registration.

 

Section 11.                                    Miscellaneous.

 

(a)                                 Amendments and Waivers.  Except as otherwise expressly provided herein, this Agreement may be amended, modified or supplemented, and any provision hereof may be waived, only by a written instrument duly approved by the Corporation and the Requisite Series A Preferred Holders; provided, however, that an amendment or modification that (i) would affect an Investor (solely in its capacity as an Investor and not otherwise) in a manner disproportionately adverse as compared to the effect on any other Investor (solely in its capacity as an Investor and not otherwise) immediately prior to such amendment will be effective against the Investor so adversely and disproportionately affected only with the prior written consent of such Investor; (ii) materially adversely affects the right of the Sponsor to participate in a Demand Registration in accordance with the terms and subject to the conditions set forth in Section 3(b) or a Piggyback Registration as provided in Section 4(b), or (iii) amends the definition of “Priority Amount”, will be effective only with the prior written consent of the Sponsor.  Notwithstanding the foregoing, the Requisite Series A Preferred Holders shall have the right to (without the consent of the Board), and shall, amend this Agreement as requested by the Requisite Series A Preferred Holders to add new parties as “Investors” hereunder in connection with the issuance of additional shares of Series A Preferred Stock pursuant to the terms of that certain Subscription Agreement, dated on or about the date hereof, by and among the Corporation and the holders of Series A Preferred Stock.  Notwithstanding anything to the contrary in this Agreement, Schedule A hereto may be amended (x) by the Corporation from time to time to add information regarding additional stockholders that become Investors pursuant to the Stockholders Agreement without the consent of the other Parties hereto and (y) by any Investor, in such Investor’s sole discretion and without the consent or approval of any other Person, including the Corporation or any other Stockholder, to reflect any Transfer that is effected in accordance with the provisions of Section 2.5 of the Stockholders Agreement; provided, that, subject to such Investor’s foregoing right, no Person may be designated as an “Investor” under this Agreement by an amendment of Schedule A by the Corporation or otherwise without the prior written consent of the Requisite Series A Preferred Holders.

 

(b)                                 Notices.

 

(i)                                     Except as otherwise expressly provided in this Agreement, all notices, requests and other communications to any Party hereunder shall be in writing (including a facsimile or similar writing) and shall be given to such Party at the address or facsimile number specified for such Party on Schedule A to the

 

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Stockholders Agreement (or in the case of the Corporation, Section 11(b)(ii)) or as such Party shall hereafter specify for the purpose by notice to the other Parties.  Each such notice, request or other communication shall be effective (A) if personally delivered, on the date of such delivery, (B) if given by facsimile, at the time such facsimile is transmitted and the appropriate confirmation is received, (C) if delivered by an internationally-recognized overnight courier, on the next Business Day after the date when sent, (D) if delivered by registered or certified mail, three (3) Business Days (or, if to an address outside the United States, seven (7) days) after such communication is deposited in the mails with first-class postage prepaid, addressed as aforesaid, or (E) if given by any other means, when delivered at the address specified on Schedule A hereto or in Section 11(b)(ii):

 

(ii)                                  All notices, requests or other communications to the Corporation hereunder shall be delivered to the Corporation at the following address and/or facsimile number in accordance with the provisions of Section 11(b):

 

Laureate Education, Inc.

650 S. Exeter Street

Baltimore, MD 21202

Attention:  Robert W. Zentz, Senior Vice President and General Counsel

Facsimile:  (410) 843-8544

E-mail: robert.zentz@laureate.net

 

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

 

DLA Piper LLP (US)

6225 Smith Avenue

Baltimore, Maryland 21209

Attention:  R.W. Smith, Jr., Esq.

Telecopy:  (410) 580-3266

E-mail: jay.smith@dlapiper.com

 

To the Investors, as set forth on Schedule A hereto.

 

To the Sponsor as follows:

 

Wengen Alberta, Limited Partnership
 9 West 57th Street, Suite 4200
 New York, New York 10019
 Attention:  Brian Carroll
 Telecopy:  (212) 750-0003

 

with a copy to:

 

Simpson Thacher & Bartlett LLP
 425 Lexington Avenue
 New York, New York 10017

 

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Attention:  Gary Horowitz, Esq.
 Telecopy:  (212) 455-2502

 

(c)                                  Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the Parties, including Permitted Transferees of the Investors and subsequent Holders acquired, directly or indirectly, from the Investors; provided, however, that such successor or assign shall not be entitled to such rights unless the successor or assign shall have executed and delivered to the Corporation an Addendum Agreement substantially in the form of Exhibit A hereto (which shall also be executed by the Corporation) promptly following the acquisition of such Registrable Securities, in which event such successor or assign shall be deemed a Holder for purposes of this Agreement.  This Agreement is not intended to confer any rights or remedies upon, and shall not be enforceable by any Person other than the actual Parties hereto, their respective successors and permitted assigns, and solely with respect to the provisions of Section 8, each Indemnified Party.

 

(d)                                 Additional Parties.  From and after the date hereof, any Person to whom Registrable Securities held by an Investor have been Transferred shall be joined as a Party and shall be deemed a Party as of the date hereof following the execution and delivery by such Person of an Addendum Agreement to the Corporation.

 

(e)                                  Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall constitute an original and all of which, when taken together, shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page to this Agreement by facsimile or pdf attachment to electronic mail shall be effective as delivery of a manually executed counterpart to this Agreement.

 

(f)                                   Headings; Construction.  The titles of Sections and paragraphs of this Agreement are for convenience only and do not define or limit the provisions hereof.  The definitions in Section 1 shall apply equally to both the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  All references herein to Sections, exhibits and schedules and paragraphs shall be deemed to be references to Sections and paragraphs of, and exhibits to, this Agreement unless the context shall otherwise require.  All exhibits attached hereto shall be deemed incorporated herein as if set forth in full herein.  The terms “clause(s)” and “subparagraph(s)” shall be used herein interchangeably.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  All accounting terms not defined in this Agreement shall have the meanings determined by United States generally accepted accounting principles as in effect from time to time.  The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.  References to a Person are also to its permitted successors and permitted assigns.  Unless otherwise expressly provided herein, any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, modified, supplemented or restated, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments incorporated therein.

 

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(g)                                  Schedules and Exhibits.  All schedules and exhibits attached to this Agreement are incorporated and shall be treated as if set forth herein.

 

(h)                                 Severability.  If any provision of this Agreement is held to be illegal, invalid or unenforceable under any present or future law, and if the rights or obligations of any Party under this Agreement shall not be materially and adversely affected thereby, (i) such provision shall be fully severable, (ii) this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof, (iii) the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom, and (iv) in lieu of such illegal, invalid or unenforceable provision, there shall be added automatically as a part of this Agreement a legal, valid and enforceable provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible.

 

(i)                                     Entire Agreement.  This Agreement together with the Stockholders Agreement and the other agreements referenced in Section 5.4 of the Stockholders Agreement constitutes the entire agreement among the Parties pertaining to the subject matter hereof and thereof and supersedes all prior agreements and understandings of the Parties in connection herewith and therewith, and no covenant, representation or condition not expressed in this Agreement, the Stockholders Agreement or such other agreements referenced in Section 5.4 of the Stockholders Agreement shall affect, or be effective to interpret, change or restrict, the express provisions of this Agreement.

 

(j)                                    Securities Held by the Corporation or its Subsidiaries.  Whenever the consent or approval of Holders of a specified percentage of Registrable Securities is required hereunder, Registrable Securities held by the Corporation or its Subsidiaries shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage.

 

(k)                                 Specific Performance.  The Parties acknowledge that money damages may not be an adequate remedy for breaches or violations of this Agreement and that any Party, in addition to any other rights and remedies which the Parties may have hereunder or at law or in equity, may, in its sole discretion, apply to a court of competent jurisdiction in accordance with Section 11(m) for specific performance or injunction or such other equitable relief as such court may deem just and proper in order to enforce this Agreement in the event of any breach of the provisions of this Agreement or prevent any violation hereof and, to the extent permitted by applicable law, each Party hereby waives (i) any objection to the imposition of such relief, and (ii) any requirement for the posting of any bond or similar collateral in connection therewith.

 

(l)                                     Term.  This Agreement shall terminate with respect to an Investor or another Holder on the date on which such Holder ceases to directly or indirectly hold Registrable Securities; provided, that such Holders rights and obligations pursuant to Section 8, as well as the Corporation’s obligations to pay expenses pursuant to Section 7, shall survive with respect to any Registration Statement in which any Registrable Securities of such Holder were included.

 

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(m)          Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to principles of conflict of laws.  The Parties hereby declare that it is their intention that this Agreement shall be regarded as made under the laws of the State of Delaware and that the laws of said State shall be applied in interpreting its provisions in all cases where legal interpretation shall be required.  Each of the Parties:  (i) agrees that this Agreement involves at least US $100,000.00; (ii) agrees that this Agreement has been entered into by the Parties in express reliance upon 6 Del. C. § 2708(a); (iii) irrevocably and unconditionally submits to the exclusive jurisdiction of the courts of the State of Delaware and of the federal courts sitting in the State of Delaware with respect to all actions and proceedings arising out of or relating to this Agreement and the transactions contemplated hereby; (iv) agrees that all claims with respect to any such action or proceeding shall be heard and determined in such courts and agrees not to commence any action or proceeding relating to this Agreement or the transactions contemplated hereby except in such courts; (v) irrevocably and unconditionally waives any objection to the laying of venue of any action or proceeding arising out of this Agreement or the transactions contemplated hereby and irrevocably and unconditionally waives the defense of an inconvenient forum; (vi) irrevocably acknowledges and agrees that it is a commercial business entity and is a separate entity distinct from its ultimate equity holder and/or the executive organs of the government of any state and is capable of suing and being sued; (vii) agrees that its entry into this constitutes, and the exercise of its rights and performance of its obligations hereunder will constitute, private and commercial acts performed for private and commercial purposes that shall not be deemed as being entered into in the exercise of any public function; and (viii) agrees that, for the purpose of receiving service of process or other legal summons in connection with any such dispute, litigation, action or proceeding brought in such courts and agrees that, any such process or summons may be served on it by mailing a copy of such process or summons by an internationally-recognized courier service to the address set forth next to its name in Schedule A or with respect to the Corporation, the address set forth in Section 11(b)(ii), with such service deemed effective on the fifth day after the date of such mailing; and (ix) agrees that a final judgment in any such action or proceeding and from which no appeal can be made shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  The Parties agree that any violation of this Section 11(m) shall constitute a material breach of this Agreement and shall constitute irreparable harm.  EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM, ACTION, PROCEEDING OR LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

(n)           Representation by Counsel.  Each of the Parties has been represented by and has had an opportunity to consult with legal counsel in connection with the drafting, negotiation and execution of this Agreement.  No provision of this Agreement shall be construed against or interpreted to the disadvantage of any Party by any court or arbitrator or any Governmental Authority by reason of such Party having drafted or being deemed to have drafted such provision.

 

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(o)           Cumulative Remedies.  No failure by any Party to insist upon the strict performance of any covenant, agreement, term or condition of this Agreement or to exercise any right or remedy consequent upon a breach of such or any other covenant, agreement, term or condition shall operate as a waiver of such or any other covenant, agreement, term or condition of this Agreement.  Any Party by notice given in accordance with Section 11(b) may, but shall not be under any obligation to, waive any of its rights or conditions to its obligations hereunder, or any duty, obligation or covenant of any other Party.  No waiver shall affect or alter the remainder of this Agreement but each and every covenant, agreement, term and condition hereof shall continue in full force and effect with respect to any other then existing or subsequent breach.  The rights and remedies provided by this Agreement are cumulative and the exercise of any one right or remedy by any Party shall not preclude or waive its right to exercise any or all other rights or remedies.

 

(p)           Further Assurances.  Each Party agrees to execute, acknowledge, deliver, file and record such further certificates, amendments, instruments and documents, and to do all such other acts and things, as may be required by applicable Law or as, in the reasonable judgment of the Board, may be necessary or advisable to carry out the intent and purposes of this Agreement.

 

(q)           No Inconsistent Agreements; Most Favored Nation.  The Corporation shall not (x) enter into any agreement with respect to its securities that is inconsistent with or violates the rights, preferences or privileges granted to the Holders hereunder (for the avoidance of doubt, any agreement that grants or has the effect of granting to any Person demand registration rights or incidental or piggyback registration rights senior to or with priority over the rights held by the Holders hereunder, or on parity with the rights held by the Holders hereunder with respect to the Priority Amount, shall be deemed to be inconsistent with or violate the rights granted to the Holders herein), or (y) enter into any agreement with any holder or prospective holder of any securities of the Corporation giving such Person any registration rights that would be more favorable to such Person than the registration rights granted to the Investors or any of their respective Permitted Transferees under this Agreement.

 

(r)            Reliance on Authority of Person Signing Agreement.  If a Party is not a natural person, neither the Corporation nor any other Party will (i) be required to determine the authority of the individual signing this Agreement to make any commitment or undertaking on behalf of such entity or to determine any fact or circumstance bearing upon the existence of the authority of such individual, or (ii) be responsible for the application or distribution of proceeds paid or credited to individuals signing this Agreement on behalf of such entity.

 

(s)            Other Registration Rights.  Except as set forth on Schedule 11(s) hereto, there are no registration rights or similar rights of any Person in respect of Registrable Securities or other equity securities of the Corporation.

 

(t)            Public Announcements.  None of the parties hereto may represent the Investors’ views on any matter or suggest or imply that the Investors are responsible or liable for any activities of the Corporation or any of its Subsidiaries.  Except as otherwise provided in this Section 11(t) and other than with respect to filings or notices required by Law or the Debt Documents (as defined in the Certificate of Designations), the Corporation may only reference

 

32

 

the name and logo of an Investor and refer to the aggregate amount of Purchased Securities issued and sold pursuant hereto in (i) any presentations, materials or other disclosures prepared and/or made in connection with a Public Offering or any offering of debt securities of the Corporation (including in connection with roadshows and analyst meetings), or (ii) in connection with its customary marketing activities in the ordinary course of its business consistent with past practice.  Other than with respect to filings or notices to the extent required by Law or the Debt Documents (as defined in the Certificate of Designations), the Corporation may not refer to an Individual Investor Purchase Price.  Each Investor and any of their respective Affiliates may publicly disclose their participation (and solely their participation) in the transactions contemplated by this Agreement and the documents contemplated thereby, and in connection therewith may reference the name and logo of the Corporation.  Except with respect to filings or notices required by Law or the Debt Documents (as defined in the Certificate of Designations), or as otherwise provided in the second, third and fourth sentences of this Section 11(t), each of the Parties will cooperate with each other in the development and distribution of all news releases and other public information disclosures with respect to this Agreement and any of the transactions contemplated by this Agreement, and no Party will make any such news release or public disclosure without first giving prior written notice and consulting with the other Parties and receiving their consent (which shall not be unreasonably withheld or delayed) and each Party shall coordinate with the other with respect to any such news release or public disclosure.

 

[Signature pages follow.]

 

33

 

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

 

	
 
    	
LAUREATE EDUCATION, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SPONSOR
    
	
 
    	
 
    
	
 
    	
WENGEN   ALBERTA, LIMITED PARTNERSHIP
    
	
 
    	
 
    	
 
    
	
 
    	
By:   Wengen Investments Limited, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DOUGLAS   L. BECKER
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    

 

Signature Page to Registration Rights Agreement

 

 

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

 

	
 
    	
MACQUARIE SIERRA INVESTMENT   HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

Signature Page to Registration Rights Agreement

 

 

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

 

	
 
    	
 
    
	
 
    	
ABRAAJ PLATINUM HOLDING, L.P.
    
	
 
    	
 
    
	
 
    	
By: Abraaj Platinum GP   Limited, acting in its capacity as general partner of Abraaj Platinum   Holding, L.P.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

Signature Page to Registration Rights Agreement

 

 

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

 

	
 
    	
APOLLO SPECIAL SITUATIONS FUND,   L.P.
    
	
 
    	
 
    
	
 
    	
By: Apollo Situations Advisors,   L.P., its general partner
    
	
 
    	
By: Apollo Special   Situations Advisors GP, LLC, its general partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Laurie D. Medley
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Registration Rights Agreement

 

 

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

 

	
 
    	
AESI II, L.P.
    
	
 
    	
 
    
	
 
    	
By: Apollo European   Strategic Management, L.P., its Investment Manager
    
	
 
    	
By: Apollo European   Strategic Management GP, LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Joseph D. Glatt
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Registration Rights Agreement

 

 

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

 

	
 
    	
APOLLO CENTRE STREET   PARTNERSHIP, L.P.
    
	
 
    	
 
    
	
 
    	
By: Apollo Centre   Street Advisors (APO DC), L.P., its General Partner
    
	
 
    	
By: Apollo Centre   Street Advisors (APO DC-GP), LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Joseph D. Glatt
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Registration Rights Agreement

 

 

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

 

	
 
    	
APOLLO ZEUS STRATEGIC   INVESTMENTS, L.P.
    
	
 
    	
 
    
	
 
    	
By: Apollo Zeus   Strategic Advisors, L.P., its General Partner
    
	
 
    	
By: Apollo Zeus   Strategic Advisors, LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Joseph D. Glatt
    
	
 
    	
 
    	
Title: 
    	
Vice President
    

 

Signature Page to Registration Rights Agreement

 

 

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

 

	
 
    	
AP INVESTMENT EUROPE III, L.P.
    
	
 
    	
 
    
	
 
    	
By: Apollo Europe   Management III, LLC, its Investment Manager
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Joseph D. Glatt
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Registration Rights Agreement

 

 

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

 

	
 
    	
 
    
	
 
    	
APOLLO CREDIT OPPORTUNITY   TRADING FUND III
    
	
 
    	
 
    
	
 
    	
By: Apollo Credit   Opportunity Advisors III LP, its General Partner
    
	
 
    	
By: Apollo Credit   Opportunity Management III LLC, its Investment Manager
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Joseph D. Glatt
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Registration Rights Agreement

 

 

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

 

	
 
    	
APOLLO HERCULES PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
By: Apollo Hercules   Advisors, L.P., its General Partner
    
	
 
    	
By: Apollo Hercules Advisors   GP, LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Joseph D. Glatt
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Registration Rights Agreement

 

 

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

 

	
 
    	
APOLLO UNION STREET PARTNERS,   L.P.
    
	
 
    	
 
    
	
 
    	
By: Apollo Union Street   Advisors, L.P., its General Partner
    
	
 
    	
By: Apollo Union Street   Capital Management, LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Joseph D. Glatt
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Registration Rights Agreement

 

 

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

 

	
 
    	
APOLLO THUNDER PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
By: Apollo Thunder   Management, LLC, its Investment Manager
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Joseph D. Glatt
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Registration Rights Agreement

 

 

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

 

	
 
    	
APOLLO KINGS ALLEY CREDIT FUND,   L.P.
    
	
 
    	
 
    
	
 
    	
By: Apollo Kings Alley   Credit Advisors, L.P., its General Partner
    
	
 
    	
By: Apollo Kings Alley   Credit Capital Management, LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Joseph D. Glatt
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Registration Rights Agreement

 

 

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

 

	
 
    	
APOLLO A-N CREDIT FUND   (DELAWARE), L.P.
    
	
 
    	
 
    
	
 
    	
By: Apollo A-N Credit Management,   LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Joseph D. Glatt
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Registration Rights Agreement

 

 

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

 

	
 
    	
APOLLO TOWER CREDIT FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By: Apollo Tower Credit   Advisors, LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Joseph D. Glatt
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Registration Rights Agreement

 

 

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

 

	
 
    	
APOLLO LINCOLN PRIVATE CREDIT,   L.P.
    
	
 
    	
 
    
	
 
    	
By: Apollo Lincoln   Private Credit Management, LLC, its Investment Manager
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

Signature Page to Registration Rights Agreement

 

 

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

 

	
 
    	
RK GOLD (CAYMAN) HOLDINGS, L.P.
    
	
 
    	
 
    
	
 
    	
By: CFIG (Cayman) Holdings   Limited, its general partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

Signature Page to Registration Rights Agreement

 

 

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

 

	
 
    	
KKR   2006 FUND (OVERSEAS), LIMITED PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
By: 
    	
KKR Associates 2006   (Overseas), Limited Partnership, 
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
KKR   2006 Limited, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
William   J. Janetschek
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
KKR   PARTNERS II (INTERNATIONAL), LIMITED PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
By: KKR PI-II GP Limited, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
William   J. Janetschek
    
	
 
    	
 
    	
Title:
    	
Director
    

 

Signature Page to Registration Rights Agreement

 

 

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

 

	
 
    	
SNOW,   PHIPPS GROUP, LP.
    
	
 
    	
 
    
	
 
    	
By: SPG GP, LLC, its general partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Ian K. Snow
    
	
 
    	
 
    	
Title:
    	
Managing Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SNOW, PHIPPS   GROUP (RPV), L.P.
    
	
 
    	
 
    
	
 
    	
By: SPG GP, LLC, its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Ian K. Snow
    
	
 
    	
 
    	
Title:
    	
Managing Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SNOW,   PHIPPS GROUP (OFFSHORE), L.P.
    
	
 
    	
 
    
	
 
    	
By: SPG GP, LLC, its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Ian K. Snow
    
	
 
    	
 
    	
Title:
    	
Managing Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SNOW,   PHIPPS GROUP (B), L.P.
    
	
 
    	
 
    
	
 
    	
By: SPG GP, LLC, its general partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Ian K. Snow
    
	
 
    	
 
    	
Title:
    	
Managing Member
    
	
 
    	
 
    
	
 
    	
S.P.G.   CO-INVESTMENT, L.P.
    
	
 
    	
 
    
	
 
    	
By: SPG GP, LLC, its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Ian K. Snow
    
	
 
    	
 
    	
Title:
    	
Managing Member
    

 

Signature Page to Registration Rights Agreement

 

 

Schedule A

 

	
Name of Investor
    	
 
    	
Address for notices
    
	
Macquarie Sierra Investment Holdings Inc.
    	
 
    	
125 W 55th Street, Level 17
    
	
 
    	
 
    	
New York, NY 10019
    
	
 
    	
 
    	
Attention: MacCap Legal and Melissa Toomey
    
	
 
    	
 
    	
E-mail: ibgcflegalna@macquarie.com;   Melissa.Toomey@macquarie.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Goodwin Procter LLP
    
	
 
    	
 
    	
The New York Times Building
    
	
 
    	
 
    	
620 Eighth Avenue
    
	
 
    	
 
    	
New York, New York 10018
    
	
 
    	
 
    	
Attention: Ilan Nissan, Paul Cicero and Oreste Cipolla
    
	
 
    	
 
    	
Telecopy: +1 212 202 6392
    
	
 
    	
 
    	
E-mail: INissan@Goodwinlaw.com;   PCicero@Goodwinlaw.com; OCipolla@Goodwinlaw.com
    
	
 
    	
 
    	
 
    
	
AESI II, L.P.
    	
 
    	
AESI II, L.P.
    
	
 
    	
 
    	
One Manhattanville Road, Suite 201
    
	
 
    	
 
    	
Purchase, NY 10577
    
	
 
    	
 
    	
Attention: Joseph D. Glatt
    
	
 
    	
 
    	
E-mail: jglatt@apollolp.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Paul, Weiss, Rifkind, Wharton & Garrison   LLP
    
	
 
    	
 
    	
1285 Avenue of the Americas
    
	
 
    	
 
    	
New York, NY 10019-6064
    
	
 
    	
 
    	
Attention: Brian Finnegan and Tracey Zaccone
    
	
 
    	
 
    	
Telecopy: +1 212 373 3000
    
	
 
    	
 
    	
E-mail:  Bfinnegan@paulweiss.com;   Tzaccone@paulweiss.com
    
	
 
    	
 
    	
 
    
	
Apollo Centre Street Partnership, L.P.
    	
 
    	
Apollo Centre Street Partnership, L.P.
    
	
 
    	
 
    	
One Manhattanville Road, Suite 201
    
	
 
    	
 
    	
Purchase, NY 10577
    
	
 
    	
 
    	
Attention: Joseph D. Glatt
    
	
 
    	
 
    	
E-mail: jglatt@apollolp.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    

 

 

	
 
    	
 
    	
Paul, Weiss, Rifkind, Wharton & Garrison   LLP
    
	
 
    	
 
    	
1285 Avenue of the Americas
    
	
 
    	
 
    	
New York, NY 10019-6064
    
	
 
    	
 
    	
Attention: Brian Finnegan and Tracey Zaccone
    
	
 
    	
 
    	
Telecopy: +1 212 373 3000
    
	
 
    	
 
    	
E-mail:  Bfinnegan@paulweiss.com;   Tzaccone@paulweiss.com
    
	
 
    	
 
    	
 
    
	
Apollo Zeus Strategic Investments, L.P.
    	
 
    	
Apollo Zeus Strategic Investments, L.P.
    
	
 
    	
 
    	
One Manhattanville Road, Suite 201
    
	
 
    	
 
    	
Purchase, NY 10577
    
	
 
    	
 
    	
Attention: Joseph D. Glatt
    
	
 
    	
 
    	
E-mail: jglatt@apollolp.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Paul, Weiss, Rifkind, Wharton & Garrison   LLP
    
	
 
    	
 
    	
1285 Avenue of the Americas
    
	
 
    	
 
    	
New York, NY 10019-6064
    
	
 
    	
 
    	
Attention: Brian Finnegan and Tracey Zaccone
    
	
 
    	
 
    	
Telecopy: +1 212 373 3000
    
	
 
    	
 
    	
E-mail:  Bfinnegan@paulweiss.com; Tzaccone@paulweiss.com
    
	
 
    	
 
    	
 
    
	
Apollo Credit Opportunity Trading Fund III
    	
 
    	
Apollo Credit Opportunity Trading Fund III LP
    
	
 
    	
 
    	
One Manhattanville Road, Suite 201
    
	
 
    	
 
    	
Purchase, NY 10577
    
	
 
    	
 
    	
Attention: Joseph D. Glatt
    
	
 
    	
 
    	
E-mail: jglatt@apollolp.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Paul, Weiss, Rifkind, Wharton & Garrison   LLP
    
	
 
    	
 
    	
1285 Avenue of the Americas
    
	
 
    	
 
    	
New York, NY 10019-6064
    
	
 
    	
 
    	
Attention: Brian Finnegan and Tracey Zaccone
    
	
 
    	
 
    	
Telecopy: +1 212 373 3000
    
	
 
    	
 
    	
E-mail:  Bfinnegan@paulweiss.com;   Tzaccone@paulweiss.com
    
	
 
    	
 
    	
 
    
	
AP Investment Europe III, L.P.
    	
 
    	
AP Investment Europe III, L.P.
    
	
 
    	
 
    	
9 West 57th Street, 43rd Floor
    
	
 
    	
 
    	
New York, NY 10019
    
	
 
    	
 
    	
Attention: Joseph D. Glatt
    
	
 
    	
 
    	
E-mail: jglatt@apollolp.com
    

 

 

	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Paul, Weiss, Rifkind, Wharton & Garrison   LLP
    
	
 
    	
 
    	
1285 Avenue of the Americas
    
	
 
    	
 
    	
New York, NY 10019-6064
    
	
 
    	
 
    	
Attention: Brian Finnegan and Tracey Zaccone
    
	
 
    	
 
    	
Telecopy: +1 212 373 3000
    
	
 
    	
 
    	
E-mail:  Bfinnegan@paulweiss.com;   Tzaccone@paulweiss.com
    
	
 
    	
 
    	
 
    
	
Apollo Hercules Partners, L.P.
    	
 
    	
Apollo Hercules Partners, L.P.
    
	
 
    	
 
    	
One Manhattanville Road, Suite 201
    
	
 
    	
 
    	
Purchase, NY 10577
    
	
 
    	
 
    	
Attention: Joseph D. Glatt
    
	
 
    	
 
    	
E-mail: jglatt@apollolp.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Paul, Weiss, Rifkind, Wharton & Garrison   LLP
    
	
 
    	
 
    	
1285 Avenue of the Americas
    
	
 
    	
 
    	
New York, NY 10019-6064
    
	
 
    	
 
    	
Attention: Brian Finnegan and Tracey Zaccone
    
	
 
    	
 
    	
Telecopy: +1 212 373 3000
    
	
 
    	
 
    	
E-mail:  Bfinnegan@paulweiss.com;   Tzaccone@paulweiss.com
    
	
 
    	
 
    	
 
    
	
Apollo Union Street Partners, L.P.
    	
 
    	
Apollo Union Street Partners, L.P.
    
	
 
    	
 
    	
One Manhattanville Road, Suite 201
    
	
 
    	
 
    	
Purchase, NY 10577
    
	
 
    	
 
    	
Attention: Joseph D. Glatt
    
	
 
    	
 
    	
E-mail: jglatt@apollolp.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Paul, Weiss, Rifkind, Wharton & Garrison   LLP
    
	
 
    	
 
    	
1285 Avenue of the Americas
    
	
 
    	
 
    	
New York, NY 10019-6064
    
	
 
    	
 
    	
Attention: Brian Finnegan and Tracey Zaccone
    
	
 
    	
 
    	
Telecopy: +1 212 373 3000
    
	
 
    	
 
    	
E-mail:  Bfinnegan@paulweiss.com;   Tzaccone@paulweiss.com
    
	
 
    	
 
    	
 
    
	
Apollo Thunder Partners, L.P.
    	
 
    	
Apollo Thunder Partners
    
	
 
    	
 
    	
One Manhattanville Road, Suite 201
    
	
 
    	
 
    	
Purchase, NY 10577
    
	
 
    	
 
    	
Attention: Joseph D. Glatt
    

 

 

	
 
    	
 
    	
E-mail: jglatt@apollolp.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Paul, Weiss, Rifkind, Wharton & Garrison   LLP
    
	
 
    	
 
    	
1285 Avenue of the Americas
    
	
 
    	
 
    	
New York, NY 10019-6064
    
	
 
    	
 
    	
Attention: Brian Finnegan and Tracey Zaccone
    
	
 
    	
 
    	
Telecopy: +1 212 373 3000
    
	
 
    	
 
    	
E-mail:  Bfinnegan@paulweiss.com;   Tzaccone@paulweiss.com
    
	
 
    	
 
    	
 
    
	
Apollo Kings Alley Credit Fund, L.P.
    	
 
    	
Apollo Kings Alley Credit Fund, L.P.
    
	
 
    	
 
    	
One Manhattanville Road, Suite 201
    
	
 
    	
 
    	
Purchase, NY 10577
    
	
 
    	
 
    	
Attention: Joseph D. Glatt
    
	
 
    	
 
    	
E-mail: jglatt@apollolp.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Paul, Weiss, Rifkind, Wharton & Garrison   LLP
    
	
 
    	
 
    	
1285 Avenue of the Americas
    
	
 
    	
 
    	
New York, NY 10019-6064
    
	
 
    	
 
    	
Attention: Brian Finnegan and Tracey Zaccone
    
	
 
    	
 
    	
Telecopy: +1 212 373 3000
    
	
 
    	
 
    	
E-mail:  Bfinnegan@paulweiss.com;   Tzaccone@paulweiss.com
    
	
 
    	
 
    	
 
    
	
Apollo Lincoln Private Credit Fund, L.P.
    	
 
    	
Apollo Lincoln Private Credit Fund, L.P.
    
	
 
    	
 
    	
One Manhattanville Road, Suite 201
    
	
 
    	
 
    	
Purchase, NY 10577
    
	
 
    	
 
    	
Attention: Joseph D. Glatt
    
	
 
    	
 
    	
E-mail: jglatt@apollolp.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Paul, Weiss, Rifkind, Wharton & Garrison   LLP
    
	
 
    	
 
    	
1285 Avenue of the Americas
    
	
 
    	
 
    	
New York, NY 10019-6064
    
	
 
    	
 
    	
Attention: Brian Finnegan and Tracey Zaccone
    
	
 
    	
 
    	
Telecopy: +1 212 373 3000
    
	
 
    	
 
    	
E-mail:  Bfinnegan@paulweiss.com;   Tzaccone@paulweiss.com
    

 

 

	
Apollo A-N Credit Fund (Delaware), L.P.
    	
 
    	
Apollo A-N Credit Fund, L.P.
    
	
 
    	
 
    	
One Manhattanville Road, Suite 201
    
	
 
    	
 
    	
Purchase, NY 10577
    
	
 
    	
 
    	
Attention: Joseph D. Glatt
    
	
 
    	
 
    	
E-mail: jglatt@apollolp.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Paul, Weiss, Rifkind, Wharton & Garrison   LLP
    
	
 
    	
 
    	
1285 Avenue of the Americas
    
	
 
    	
 
    	
New York, NY 10019-6064
    
	
 
    	
 
    	
Attention: Brian Finnegan and Tracey Zaccone
    
	
 
    	
 
    	
Telecopy: +1 212 373 3000
    
	
 
    	
 
    	
E-mail:  Bfinnegan@paulweiss.com;   Tzaccone@paulweiss.com
    
	
 
    	
 
    	
 
    
	
Apollo Tower Credit Fund, L.P.
    	
 
    	
Apollo Tower Credit Fund, L.P.
    
	
 
    	
 
    	
One Manhattanville Road, Suite 201
    
	
 
    	
 
    	
Purchase, NY 10577
    
	
 
    	
 
    	
Attention: Joseph D. Glatt
    
	
 
    	
 
    	
E-mail: jglatt@apollolp.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Paul, Weiss, Rifkind, Wharton & Garrison   LLP
    
	
 
    	
 
    	
1285 Avenue of the Americas
    
	
 
    	
 
    	
New York, NY 10019-6064
    
	
 
    	
 
    	
Attention: Brian Finnegan and Tracey Zaccone
    
	
 
    	
 
    	
Telecopy: +1 212 373 3000
    
	
 
    	
 
    	
E-mail:  Bfinnegan@paulweiss.com; Tzaccone@paulweiss.com
    
	
 
    	
 
    	
 
    
	
Apollo Special Situations Fund, L.P.
    	
 
    	
Apollo Special Situations Fund, L.P.
    
	
 
    	
 
    	
c/o Apollo Special Situations Advisors, L.P.
    
	
 
    	
 
    	
One Manhattanville, Suite 201
    
	
 
    	
 
    	
Purchase, NY 10577
    
	
 
    	
 
    	
Attn: General Counsel
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Paul, Weiss, Rifkind, Wharton & Garrison   LLP
    
	
 
    	
 
    	
1285 Avenue of the Americas
    
	
 
    	
 
    	
New York, NY 10019-6064
    
	
 
    	
 
    	
Attention: Brian Finnegan and Tracey Zaccone
    
	
 
    	
 
    	
Telecopy: +1 212 373 3000
    

 

 

	
 
    	
 
    	
E-mail:  Bfinnegan@paulweiss.com;   Tzaccone@paulweiss.com
    
	
 
    	
 
    	
 
    
	
RK Gold (Cayman) Holdings, L.P.
    	
 
    	
c/o GCM Customized Fund Investment Group, L.P
    
	
 
    	
 
    	
767 Fifth Avenue, 14th Floor
    
	
 
    	
 
    	
New York, NY 10153
    
	
 
    	
 
    	
Attention: General Counsel
    
	
 
    	
 
    	
E-mail: legal@gcmlp.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Gibson, Dunn & Crutcher LLP
    
	
 
    	
 
    	
200 Park Avenue
    
	
 
    	
 
    	
New York, NY 10166-0193
    
	
 
    	
 
    	
Attention: Edward Sopher and Glenn Pollner
    
	
 
    	
 
    	
Telecopy: +1 212 351 4000
    
	
 
    	
 
    	
E-mail:  ESopher@gibsondunn.com;   GPollner@gibsondunn.com
    
	
 
    	
 
    	
 
    
	
Abraaj Platinum Holding, L.P.
    	
 
    	
The Abraaj Group
    
	
 
    	
 
    	
Pedregal 24-801B
    
	
 
    	
 
    	
Molino del Rey, 11040
    
	
 
    	
 
    	
Mexico City, Mexico
    
	
 
    	
 
    	
Attention: Miguel Olea and Eduardo Cortina
    
	
 
    	
 
    	
Telecopy: +52 55 9178 9010
    
	
 
    	
 
    	
E-mail: miguel.olea@abraaj.com;   eduardo.cortina@abraaj.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Weil, Gotshal & Manges LLP
    
	
 
    	
 
    	
100 Federal Street, 34th Floor
    
	
 
    	
 
    	
Boston, MA 02110-1802
    
	
 
    	
 
    	
Attention: Shayla Harlev
    
	
 
    	
 
    	
Telecopy: +1 617 772 8300
    
	
 
    	
 
    	
E-mail: Shayla.Harlev@weil.com
    
	
 
    	
 
    	
 
    
	
KKR 2006 Fund (Overseas), Limited Partnership
    	
 
    	
Kohlberg Kravis Roberts & Co.
    
	
 
    	
 
    	
9 West 57th St., Suite 4200
    
	
 
    	
 
    	
New York, NY 10019
    
	
 
    	
 
    	
Attention: General Counsel
    
	
 
    	
 
    	
Facsimile: +1 212 750 0003
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    

 

 

	
 
    	
 
    	
Kirkland & Ellis LLP
    
	
 
    	
 
    	
601 Lexington Avenue
    
	
 
    	
 
    	
New York, NY 10022
    
	
 
    	
 
    	
Attention: Sean D. Rodgers, P.C.
    
	
 
    	
 
    	
Telecopy: +1 212 446 4800
    
	
 
    	
 
    	
E-mail:  Sean.rodgers@kirkland.com
    
	
 
    	
 
    	
 
    
	
KKR Partners II (International), Limited Partnership
    	
 
    	
Kohlberg Kravis Roberts & Co.
    
	
 
    	
 
    	
9 West 57th St., Suite 4200
    
	
 
    	
 
    	
New York, NY 10019
    
	
 
    	
 
    	
Attention: General Counsel
    
	
 
    	
 
    	
Facsimile: +1 212 750 0003
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Kirkland & Ellis LLP
    
	
 
    	
 
    	
601 Lexington Avenue
    
	
 
    	
 
    	
New York, NY 10022
    
	
 
    	
 
    	
Attention: Sean D. Rodgers, P.C.
    
	
 
    	
 
    	
Telecopy: +1 212 446 4800
    
	
 
    	
 
    	
E-mail:  Sean.rodgers@kirkland.com
    
	
 
    	
 
    	
 
    
	
Snow, Phipps Group, L.P.
    	
 
    	
Snow, Phipps Group, LP.
    
	
 
    	
 
    	
667 Madison Avenue, 18th Floor
    
	
 
    	
 
    	
New York, NY 10021
    
	
 
    	
 
    	
Attention: Ian K. Snow
    
	
 
    	
 
    	
Telecopy:
    
	
 
    	
 
    	
E-mail: isnow@spgpartners.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Kirkland & Ellis LLP
    
	
 
    	
 
    	
601 Lexington Avenue
    
	
 
    	
 
    	
New York, NY 10022
    
	
 
    	
 
    	
Attention: Sean D. Rodgers, P.C.
    
	
 
    	
 
    	
Telecopy: +1 212 446 4800
    
	
 
    	
 
    	
E-mail:  Sean.rodgers@kirkland.com
    
	
 
    	
 
    	
 
    
	
Snow, Phipps Group (RPV), L.P.
    	
 
    	
Snow, Phipps Group (RPV), L.P.
    
	
 
    	
 
    	
667 Madison Avenue, 18th Floor
    
	
 
    	
 
    	
New York, NY 10021
    
	
 
    	
 
    	
Attention: Ian K. Snow
    
	
 
    	
 
    	
Telecopy:
    
	
 
    	
 
    	
E-mail: isnow@spgpartners.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    

 

 

	
 
    	
 
    	
Kirkland & Ellis LLP
    
	
 
    	
 
    	
601 Lexington Avenue
    
	
 
    	
 
    	
New York, NY 10022
    
	
 
    	
 
    	
Attention: Sean D. Rodgers, P.C.
    
	
 
    	
 
    	
Telecopy: +1 212 446 4800
    
	
 
    	
 
    	
E-mail:  Sean.rodgers@kirkland.com
    
	
 
    	
 
    	
 
    
	
Snow, Phipps Group (Offshore), L.P.
    	
 
    	
Snow, Phipps Group, LP.
    
	
 
    	
 
    	
667 Madison Avenue, 18th Floor
    
	
 
    	
 
    	
New York, NY 10021
    
	
 
    	
 
    	
Attention: Ian K. Snow
    
	
 
    	
 
    	
Telecopy:
    
	
 
    	
 
    	
E-mail: isnow@spgpartners.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Kirkland & Ellis LLP
    
	
 
    	
 
    	
601 Lexington Avenue
    
	
 
    	
 
    	
New York, NY 10022
    
	
 
    	
 
    	
Attention: Sean D. Rodgers, P.C.
    
	
 
    	
 
    	
Telecopy: +1 212 446 4800
    
	
 
    	
 
    	
E-mail:  Sean.rodgers@kirkland.com
    
	
 
    	
 
    	
 
    
	
Snow, Phipps Group (B), L.P.
    	
 
    	
Snow, Phipps Group (B), L.P.
    
	
 
    	
 
    	
667 Madison Avenue, 18th Floor
    
	
 
    	
 
    	
New York, NY 10021
    
	
 
    	
 
    	
Attention: Ian K. Snow
    
	
 
    	
 
    	
Telecopy:
    
	
 
    	
 
    	
E-mail: isnow@spgpartners.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Kirkland & Ellis LLP
    
	
 
    	
 
    	
601 Lexington Avenue
    
	
 
    	
 
    	
New York, NY 10022
    
	
 
    	
 
    	
Attention: Sean D. Rodgers, P.C.
    
	
 
    	
 
    	
Telecopy: +1 212 446 4800
    
	
 
    	
 
    	
E-mail:  Sean.rodgers@kirkland.com
    
	
 
    	
 
    	
 
    
	
S.P.G. Co-Investment, L.P.
    	
 
    	
S.P.G. Co-Investment, L.P.
    
	
 
    	
 
    	
667 Madison Avenue, 18th Floor
    
	
 
    	
 
    	
New York, NY 10021
    
	
 
    	
 
    	
Attention: Ian K. Snow
    
	
 
    	
 
    	
Telecopy:
    

 

 

	
 
    	
 
    	
E-mail: isnow@spgpartners.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Kirkland & Ellis LLP
    
	
 
    	
 
    	
601 Lexington Avenue
    
	
 
    	
 
    	
New York, NY 10022
    
	
 
    	
 
    	
Attention: Sean D. Rodgers, P.C.
    
	
 
    	
 
    	
Telecopy: +1 212 446 4800
    
	
 
    	
 
    	
E-mail:  Sean.rodgers@kirkland.com
    

 

 

Schedule B

 

	
IFC Investors
    	
 
    	
 
    
	
International Finance Corporation
    	
 
    	
International Finance Corporation
    
	
 
    	
 
    	
2121 Pennsylvania Avenue, N.W.
    
	
 
    	
 
    	
Washington, D.C. 20433
    
	
 
    	
 
    	
United States
    
	
 
    	
 
    	
Facsimile: 
    	
+1 (202) 974-4392
    
	
 
    	
 
    	
Attention:
    	
Director, Manufacturing, Agribusiness and Services Department
    
	
 
    	
 
    	
 
    
	
IFC African, Latin American and Caribbean Fund, LP
    	
 
    	
IFC Asset Management Company, LLC
    
	
 
    	
 
    	
c/o International Finance Corporation
    
	
 
    	
 
    	
2121 Pennsylvania Avenue, N.W.
    
	
 
    	
 
    	
Washington, D.C. 20433
    
	
 
    	
 
    	
United States
    
	
 
    	
 
    	
Facsimile:
    	
+1 (202) 458 2239
    
	
 
    	
 
    	
Attention:
    	
Head, IFC African, Latin American and Caribbean   Fund, LP
    

 

 

Schedule C

 

	
M&D Investors
    	
 
    	
 
    
	
Douglas L. Becker
    	
 
    	
Chairman & CEO
    
	
 
    	
 
    	
Laureate Education, Inc.
    
	
 
    	
 
    	
650 S. Exeter Street
    
	
 
    	
 
    	
Baltimore, Maryland 21202
    
	
 
    	
 
    	
(410) 843-8060 (FAX)
    
	
 
    	
 
    	
 
    
	
Brian F. Carroll
    	
 
    	
Member
    
	
 
    	
 
    	
Kohlberg Kravis Roberts & Co.
    
	
 
    	
 
    	
Stirling Square, 7 Carlton Gardens
    
	
 
    	
 
    	
London SW1Y 5AD   ENGLAND
    
	
 
    	
 
    	
+44 (0)20 7104 2502 (FAX)
    
	
 
    	
 
    	
 
    
	
Andrew B. Cohen
    	
 
    	
Managing Director
    
	
 
    	
 
    	
Cohen Private Ventures, LLC
    
	
 
    	
 
    	
72 Cummings Point Road
    
	
 
    	
 
    	
Stamford, CT 06902
    
	
 
    	
 
    	
(203) 823-4104 (FAX)
    
	
 
    	
 
    	
 
    
	
Quentin Van Doosselaere
    	
 
    	
Co CEO
    
	
 
    	
 
    	
Bregal Investments
    
	
 
    	
 
    	
277 Park Avenue, 29th Floor
    
	
 
    	
 
    	
New York, NY  10172
    
	
 
    	
 
    	
(212)573-6234(FAX)
    
	
 
    	
 
    	
 
    
	
Darren M. Friedman
    	
 
    	
Partner
    
	
 
    	
 
    	
StepStone Group LLC
    
	
 
    	
 
    	
505 Fifth Avenue, 17th Floor
    
	
 
    	
 
    	
New York, NY  10017
    
	
 
    	
 
    	
(212) 351-6110
    
	
 
    	
 
    	
 
    
	
John A. Miller
    	
 
    	
President and CEO
    
	
 
    	
 
    	
North American Corporation
    
	
 
    	
 
    	
2101 Claire Court
    
	
 
    	
 
    	
Glenview, Illinois 60025
    
	
 
    	
 
    	
(847) 832-4014 (FAX)
    
	
 
    	
 
    	
 
    
	
George Muñoz
    	
 
    	
Principal
    
	
 
    	
 
    	
Munoz Investment Banking Group, LLC
    
	
 
    	
 
    	
2111 Wilson Blvd, Suite 850
    
	
 
    	
 
    	
Arlington, Virginia 22201
    
	
 
    	
 
    	
(703) 243-2874 (FAX)
    

 

 

	
Dr. Judith Rodin
    	
 
    	
President
    
	
 
    	
 
    	
The Rockefeller Foundation
    
	
 
    	
 
    	
420 Fifth Ave
    
	
 
    	
 
    	
New York, NY 10018
    
	
 
    	
 
    	
(212) 852-8277 (FAX)
    
	
 
    	
 
    	
 
    
	
Jonathan D. Smidt
    	
 
    	
Member
    
	
 
    	
 
    	
Kohlberg Kravis Roberts & Co.
    
	
 
    	
 
    	
9 West 57th Street, Suite 4200
    
	
 
    	
 
    	
New York, NY  10019
    
	
 
    	
 
    	
(212) 750-0003 (FAX)
    
	
 
    	
 
    	
 
    
	
Ian K. Snow
    	
 
    	
CEO & Partner
    
	
 
    	
 
    	
Snow Phipps Group, LLC
    
	
 
    	
 
    	
667 Madison Avenue, 18th Floor
    
	
 
    	
 
    	
New York, NY  10065
    
	
 
    	
 
    	
(212)508-3334 (FAX)
    
	
 
    	
 
    	
 
    
	
Steven M. Taslitz
    	
 
    	
Senior Managing Director
    
	
 
    	
 
    	
Sterling Partners
    
	
 
    	
 
    	
401 N. Michigan Avenue, Suite 3300
    
	
 
    	
 
    	
Chicago, IL  60611
    
	
 
    	
 
    	
(312) 465-7001 (FAX)
    
	
 
    	
 
    	
 
    
	
Robert B. Zoellick
    	
 
    	
101 Constitution Ave NW
    
	
 
    	
 
    	
Suite 1000 East
    
	
 
    	
 
    	
Washington DC 20001
    
	
 
    	
 
    	
(202) 525-3597 (FAX)
    
	
 
    	
 
    	
 
    
	
Timothy F. Daniels
    	
 
    	
Chief Executive Officer, Asia, Middle East and   Africa
    
	
 
    	
 
    	
Laureate Education, Inc.
    
	
 
    	
 
    	
650 S. Exeter Street
    
	
 
    	
 
    	
Baltimore, Maryland 21202
    
	
 
    	
 
    	
 
    
	
Enderson Guimarães
    	
 
    	
President and Chief Operating Officer
    
	
 
    	
 
    	
Laureate Education, Inc.
    
	
 
    	
 
    	
650 S. Exeter Street
    
	
 
    	
 
    	
Baltimore, Maryland 21202
    
	
 
    	
 
    	
 
    
	
Alfonso Martinez
    	
 
    	
Chief Human Resources Officer
    
	
 
    	
 
    	
Laureate Education, Inc.
    
	
 
    	
 
    	
650 S. Exeter Street
    
	
 
    	
 
    	
Baltimore, Maryland 21202
    

 

 

	
Richard J. Patro
    	
 
    	
Chief Executive Officer, Global Products and   Services
    
	
 
    	
 
    	
Laureate Education, Inc.
    
	
 
    	
 
    	
650 S. Exeter Street
    
	
 
    	
 
    	
Baltimore, Maryland 21202
    
	
 
    	
 
    	
 
    
	
Eilif Serck-Hanssen
    	
 
    	
Executive Vice President, Chief Financial Officer
    
	
 
    	
 
    	
Laureate Education, Inc.
    
	
 
    	
 
    	
650 S. Exeter Street
    
	
 
    	
 
    	
Baltimore, Maryland 21202
    
	
 
    	
 
    	
 
    
	
Karl D. Salnoske
    	
 
    	
Chief Information Officer
    
	
 
    	
 
    	
Laureate Education, Inc.
    
	
 
    	
 
    	
650 S. Exeter Street
    
	
 
    	
 
    	
Baltimore, Maryland 21202
    
	
 
    	
 
    	
 
    
	
Paula Singer
    	
 
    	
Chief Network Officer
    
	
 
    	
 
    	
Laureate Education, Inc.
    
	
 
    	
 
    	
650 S. Exeter Street
    
	
 
    	
 
    	
Baltimore, Maryland 21202
    
	
 
    	
 
    	
 
    
	
Ricardo Berckemeyer
    	
 
    	
Chief Executive Officer, LatAm
    
	
 
    	
 
    	
Laureate Education, Inc.
    
	
 
    	
 
    	
650 S. Exeter Street
    
	
 
    	
 
    	
Baltimore, Maryland 21202
    
	
 
    	
 
    	
 
    
	
Miguel Carmelo
    	
 
    	
Chief Executive Officer, Europe
    
	
 
    	
 
    	
Laureate Education, Inc.
    
	
 
    	
 
    	
650 S. Exeter Street
    
	
 
    	
 
    	
Baltimore, Maryland 21202
    
	
 
    	
 
    	
 
    
	
Robert W. Zentz
    	
 
    	
Senior Vice President, Secretary, General Counsel
    
	
 
    	
 
    	
Laureate Education, Inc.
    
	
 
    	
 
    	
650 S. Exeter Street
    
	
 
    	
 
    	
Baltimore, Maryland 21202
    

 

 

SCHEDULE 11(s)

 

Other Registration Rights

 

Capitalized terms used, but not otherwise defined herein, shall have the meanings ascribed thereto under the Agreement.

 

There are registration rights in respect of Registrable Securities or other equity securities of the Corporation pursuant to the following:

 

1.              The Wengen Registration Rights Agreement.

 

2.              The Securityholders’ Agreement, by and between Sponsor, Wengen Investments Limited and the other parties there to, dated as of July 11, 2007 as amended by Amendment No. 1 entered into as of August 17, 2007 and as amended by Amendment No. 2 entered into as of December 1, 2008 (as amended from time to time, the “Wengen Securityholders’ Agreement”).

 

3.              The Investors’ Stockholders Agreement, dated January 16, 2013, as amended from time to time, by and among the Corporation, Sponsor, and the IFC Investors.

 

4.              Form of Management Stockholder’s Agreement for equityholders by and among the Corporation, Sponsor and the M&D Investors party thereto (each such agreement the Company has entered into, as amended from time to time, a “Management Stockholder’s Agreement).

 

5.              Form of Stockholders’ Agreement for Entity-Appointed Directors by and among the Corporation, Sponsor and the M&D Investors party thereto (each such agreement the Company has entered into, as amended from time to time, an “Entity Director Stockholder’s Agreement”).

 

6.              Form of Stockholders’ Agreement for Individual Directors by and among the Corporation, Sponsor and the M&D Investors party thereto (each such agreement the Company has entered into an “Individual Director Stockholder’s Agreement” and collectively with the Entity Director Stockholder’s Agreements and the Management Stockholder’s Agreements, the “Management and Director Stockholders Agreements”).

 

 

EXHIBIT A

 

ADDENDUM AGREEMENT

 

This Addendum Agreement is made this [   ] day of [            ], 20[   ], by and between [                                 ] (the “New Holder”) and Laureate Education, Inc., a public benefit corporation organized under the laws of Delaware (the “Corporation”), pursuant to a Registration Rights Agreement dated as of December [Ÿ], 2016 (the “Agreement”), by and among the Corporation and the holders party thereto (the “Holders”).  Capitalized terms used herein but not otherwise defined herein shall have the meanings ascribed to them in the Agreement.

 

WITNESSETH:

 

WHEREAS, the New Holder has acquired Registrable Securities directly or indirectly from a Holder; and

 

WHEREAS, the Corporation and the Holders have required in the Agreement that all persons desiring registration rights must enter into an Addendum Agreement binding the New Holder to the Agreement to the same extent as if it were an original party thereto.

 

NOW, THEREFORE, in consideration of the mutual promises of the parties hereto, the New Holder acknowledges that it has received and read the Agreement and that the New Holder shall be bound by, and shall have the benefit of, all of the terms and conditions set out in the Agreement to the same extent as if it were an original party to the Agreement and shall be deemed to be an Investor thereunder.

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
New   Holder
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 

 
    	
 
    	
 
    

 

 

AGREED TO on behalf of the Corporation pursuant to Section 11(d) of the Agreement.

 

	
 
    	
LAUREATE   EDUCATION, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:Exhibit 10.65

 

STOCKHOLDERS AGREEMENT

 

OF

 

LAUREATE EDUCATION, INC.

 

DATED AS OF DECEMBER [Ÿ], 2016

 

BY AND AMONG

 

LAUREATE EDUCATION, INC.

 

AND

 

THE OTHER PARTIES HERETO

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
ARTICLE I   TERMINATION
    	
1
    
	
 
    	
 
    
	
1.1
    	
Termination of   Agreement
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II   TRANSFERS AND ISSUANCES
    	
2
    
	
 
    	
 
    
	
2.1
    	
Limitations on Transfer
    	
2
    
	
2.2
    	
Effect of Void   Transfers
    	
4
    
	
2.3
    	
Preemptive Rights
    	
4
    
	
2.4
    	
Tag-Along Rights
    	
6
    
	
2.5
    	
Macquarie Syndication   Rights
    	
8
    
	
2.6
    	
Certain Redemption   Rights
    	
9
    
	
2.7
    	
Additional Macquarie’s   Rights
    	
13
    
	
 
    	
 
    	
 
    
	
ARTICLE III   CORPORATE GOVERNANCE; FINANCIAL INFORMATION AND RELATED COVENANTS
    	
14
    
	
 
    	
 
    
	
3.1
    	
Corporate Governance
    	
14
    
	
3.2
    	
Information Rights
    	
15
    
	
3.3
    	
Financial Covenants
    	
17
    
	
 
    	
 
    	
 
    
	
ARTICLE IV   CERTAIN COVENANTS AND AGREEMENTS
    	
24
    
	
 
    	
 
    
	
4.1
    	
Covenants
    	
24
    
	
4.2
    	
Tax Matters
    	
25
    
	
 
    	
 
    	
 
    
	
ARTICLE V   MISCELLANEOUS
    	
27
    
	
 
    	
 
    
	
5.1
    	
Certain Defined Terms
    	
27
    
	
5.2
    	
Legends
    	
41
    
	
5.3
    	
Severability
    	
42
    
	
5.4
    	
Entire Agreement
    	
42
    
	
5.5
    	
Successors and Assigns
    	
42
    
	
5.6
    	
Counterparts
    	
42
    
	
5.7
    	
Remedies
    	
42
    
	
5.8
    	
Notices
    	
42
    
	
5.9
    	
Governing Law; Jurisdiction;   Waiver of Jury Trial
    	
43
    
	
5.10
    	
Descriptive Headings
    	
44
    
	
5.11
    	
Further Assurances
    	
44
    
	
5.12
    	
No Recourse
    	
45
    
	
5.13
    	
Other Covenants
    	
45
    
	
5.14
    	
Saving Rights
    	
45
    
	
5.15
    	
Public Announcements
    	
46
    
	
5.16
    	
Amendments, Waivers and   Consents
    	
46
    
	
5.17
    	
Determination of Fair   Market Value
    	
47
    

 

i

 

STOCKHOLDERS AGREEMENT

 

This Stockholders Agreement (as amended from time to time, this “Agreement”) is entered into as of December [·], 2016, by and among Laureate Education, Inc., a public benefit corporation organized under the laws of Delaware (the “Company”), Wengen Alberta, Limited Partnership, a limited partnership under the laws of the Province of Alberta (“Wengen”), the investors set forth on Schedule A (the “Investors”), and any other stockholders that may become a party to this Agreement after the date hereof and pursuant to the terms hereof (collectively with the Investors, the “Stockholders”).  Certain capitalized terms used herein are defined in Section 5.1. Capitalized terms used but not otherwise defined in this Agreement shall have the meanings ascribed in the Certificate of Designations.

 

RECITALS

 

WHEREAS, each Stockholder owns, as of the date hereof, that type and number of shares of Capital Stock of the Company as set forth opposite such Stockholder’s name on Exhibit I hereto;

 

WHEREAS, the Stockholders believe it to be in the best interest of the Company and the Stockholders to provide for the continued stability of the business and policies of the Company and its Subsidiaries, as the same may exist from time to time, and, to that end, the parties hereto set forth this Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, the sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I
 TERMINATION

 

1.1                               Termination of Agreement.  Except with respect to such provisions as specifically set forth herein, this Agreement will automatically terminate upon the earlier to occur of (i) the consummation of an Exit Event, (ii) when all of the Investors collectively cease to hold more than one percent (1.0%) of the outstanding shares of Capital Stock, or (iii) subject to the following proviso, the effective time of a Public Offering; provided, however, that, notwithstanding the foregoing, (a) the provisions set forth in this Section 1.1, Section 2.1(f) and Section 2.4 (and the defined terms set forth therein) shall survive any such termination pursuant to clause (iii) above until the earlier to occur of (x) redemption of all the shares of Series A Preferred Stock pursuant to the terms of the Certificate of Designations, or (y) the earlier of (A) the date on which the Initial Follow-On Public Offering is consummated pursuant to the Certificate of Designations and the Registration Rights Agreement or (B) if then converted, the date which is 120 days (or if a registration is suspended, postponed or otherwise not available pursuant to the terms of the Registration Rights Agreement, then an additional number of days equal to the length of such suspension, postponement or lack of availability) after the date on which an amount of Conversion Stock equal to or more than the Priority Amount has been registered pursuant to an effective registration statement in accordance with the terms of the Registration Rights Agreement, or if earlier, the date on which at least the Priority Amount under

 

 

such registration statement has been sold, and (b) and the provisions set forth in Section 4.2 shall remain outstanding so long as any Investor holds any Series A Preferred Stock.

 

ARTICLE II
 TRANSFERS AND ISSUANCES

 

2.1                               Limitations on Transfer.  Subject to and except as provided in this Agreement and applicable Law, an Investor shall be permitted to Transfer from time to time any or all of the Series A Preferred Stock and Conversion Stock beneficially owned by it without the consent or approval of any Person.  Each Stockholder hereby agrees that:

 

(a)                                 no Transfer of Capital Stock shall occur in any manner that violates the provisions of the Certificate of Incorporation or Bylaws of the Company, this Agreement, or any applicable Law, including federal or state securities Laws;

 

(b)                                 no Stockholder may Transfer any shares of Series A Preferred Stock starting at the close of business on a date not more than fifteen (15) days before the date of the anticipated commencement of a bona fide roadshow for QPO (which date is notified by the Company in writing to the Stockholders before such date) and ending on the earlier of (i) the initial settlement date of the QPO, (ii) twenty-one (21) days (or, if such roadshow includes in-person meetings in any jurisdiction outside the United States, thirty (30) days) after the first day of such roadshow and (iii) fifteen (15) days after such notification by the Company if the roadshow has not commenced by such date; provided, however, that, for so long as this Agreement remains in effect, the Company agrees not to terminate, amend or supplement (or agree to terminate, amend or terminate) any equivalent or substantially similar transfer restrictions in that certain Note Exchange Agreement dated April 15, 2016 among the Company and the other parties there in any way that is substantially more favorable to the Person(s) subject thereto than as set forth herein unless and until the Company terminates, amends or supplements the restrictions set forth in this Section 2.1(b).

 

(c)                                  during the period commencing on the effective time of a Public Offering and continuing until the earlier of (i) three hundred sixty-six (366) days from the effective time of such Public Offering and (ii) the date on which the shares of Series A Preferred Stock are converted into shares of Common Stock, each Stockholder agrees that it shall not enter into a transaction which would have the same effect, or enter into any swap, hedge or other similar arrangement that transfers, in whole or in part, any of the economic consequences of ownership of the Securities (but, for the avoidance of doubt, not the direct ownership of the shares of Series A Preferred Stock), whether any such aforementioned transaction or arrangement is to be settled by delivery of the Securities or such other securities, in cash or otherwise, or publicly disclose the intention to make any such offer, sale, pledge or disposition, or to enter into any such swap, hedge or other similar arrangement;

 

(d)                                 no Stockholder may Transfer any shares of Series A Preferred Stock to any Person (any such Person, a “Restricted Transferee”) that is (A) a Competitor of the Company as determined by the Board in its good faith reasonable discretion, (B) listed on Schedule 2.1(d), (C) that is a target of any economic sanctions administered by the Office of Foreign Assets Control of the United States Treasury Department (“Sanctions Target”), or (D)

 

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named on (x) a list promulgated by the United Nations Security Council or its committees pursuant to resolutions issued under Chapter VII of the United Nations Charter or (y) the World Bank Listing of Ineligible Firms; provided, however, that notwithstanding the foregoing, a Stockholder may at any time deliver to the Company’s General Counsel (with copies to the Company’s Chief Financial Officer, Treasurer and Corporate Secretary) a written list of potential transferees (including, for the avoidance of doubt, any potential Transferee the name of which is on any of the foregoing lists), and, if the Company does not indicate in writing within ten (10) Business Days after the submission of such list whether it considers, in the good faith reasonable judgment of the Board, all or any of such potential Transferees to be Restricted Transferee(s), then any such potential Transferee that has not been timely indicated by the Company to be a Restricted Transferee shall not be considered a Restricted Transferee and the Stockholder shall be permitted to Transfer to such Person pursuant to the terms of this Article II after the expiration of such ten (10) day period; and

 

 

(e)                                  no Stockholder may Transfer any shares of Series A Preferred Stock to any:

 

(i)                                     Person  or member of such Person’s family (as the term “family” is defined in 34 C.F.R. Section 668.174(c)(4)), that alone or together, (i) exercises or exercised Substantial Control (as the term “substantial control” is defined in 34 C.F.R. § 668.174(c)(3)) over another educational institution or third-party servicer (as that term is defined in 34 C.F.R. Section 668.2) that owes a liability for a violation of a Title IV Program requirement or (ii) owes a liability for a Title IV Program violation;

 

(ii)                                  Person that has pled guilty to, pled nolo contendere, or been found guilty of, a crime involving the acquisition, use or expenditure of funds under the Title IV Programs or been judicially determined to have committed fraud involving funds under the Title IV Programs or has been administratively or judicially determined to have committed fraud or any other material violation of Law involving funds of any Governmental Authority or Educational Agency; or

 

(iii)                               Person that has filed for relief in bankruptcy or had entered against it an order for relief in bankruptcy, or to the knowledge of such Person, has a Subsidiary that has filed for relief in bankruptcy or had entered against it an order for relief in bankruptcy.

 

(f)                                   Notwithstanding anything in this Agreement or any other Transaction Documents to the contrary, starting immediately after the pricing of a Public Offering and continuing until the earlier of (x) the date on which the Initial Follow-On Public Offering is consummated pursuant to the Certificate of Designations and the Registration Rights Agreement or (y) if then converted, the date which is 120 days (or if a registration is suspended, postponed or otherwise not available pursuant to the terms of the Registration Rights Agreement, then an additional number of days equal to the length of such suspension, postponement or lack of availability) after the date on which an amount of Conversion Stock equal to or more than the Priority Amount has been registered pursuant to an effective

 

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registration statement in accordance with the terms of the Registration Rights Agreement, or if earlier, the date on which at least the Priority Amount under such registration statement has been sold, neither Wengen nor Douglas L. Becker shall offer, sell or otherwise Transfer, or agree to offer, sell or otherwise Transfer, either directly or indirectly, any of such Person’s Equity Securities in the Company, including pursuant to a Registration Statement or in a Public Offering; provided, however, the foregoing restriction shall not apply with respect to Becker Excluded Securities.

 

2.2                               Effect of Void Transfers.  Any Transfer made in breach of this Agreement shall be null and void and of no effect, and the Company shall not (i) recognize any purported Transfer of Capital Stock in violation of this Agreement, (ii) record or register any such Transfer of Capital Stock in its share registry, or (iii) cause any third party transfer agent to effect such Transfer, to the extent that it appoints one.  In furtherance of the provisions of this Article II, the Company and its transfer agent and registrar are hereby authorized to decline to make any Transfer of shares of Securities if such Transfer would constitute a violation or breach of this Agreement.  The Company shall promptly register each Transfer made pursuant to and in accordance with the terms of this Agreement on its books and records, provided that the failure of the Company to do so shall in no way impact or limit the effectiveness of such Transfer.

 

2.3                               Preemptive Rights.

 

(a)                                 Subject to Section 2.3(d), in the event that the Company proposes to issue additional Securities (collectively, “New Issuances”), the Company shall deliver to the Investors a written notice of such proposed New Issuance, setting forth the amount of the additional Securities, the price per share and the general terms of such New Issuance (the “Participation Notice”), at least thirty (30) days prior to the date of the proposed New Issuance (the period from the date of such notice until the date of such proposed New Issuance, the “Subscription Period”).

 

(b)                                 Subject to Section 2.3(d), each Investor shall have the right, exercisable at any time during the first fifteen (15) days of the Subscription Period by delivering written notice to the Company and on the same terms as those of the proposed New Issuance, to subscribe for not more than its New Issuance Ownership Percentage of any such additional Securities (each, a “Participating Investor”, or, collectively, the “Participating Investors”).

 

(c)                                  Notwithstanding the foregoing provisions of this Section 2.3, in the event that the Board determines that time is of the essence in completing any New Issuance subject to this Section 2.3, the Company may proceed to complete such issuance prior to the expiration of the Subscription Period, so long as provision is made in such issuance such that subsequent to the Subscription Period either (i) the purchaser(s) will be obligated to Transfer that portion of such Securities to any Participating Investors properly electing to participate in such issuance pursuant to this Section 2.3 sufficient to satisfy the terms of this Section 2.3 or (ii) the Company shall issue such additional Securities to those Participating Investors properly electing to participate in such issuance pursuant to this Section 2.3, sufficient to satisfy the terms of this Section 2.3.  Notwithstanding the foregoing, the Company may not avail itself of the terms of this Section 2.3(c), if as a result thereof, any regulatory requirement applicable to

 

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the Company or its Subsidiaries would reasonably be expected to prevent one or more of the Investors from exercising their preemptive rights pursuant to this Section 2.3 by the Company’s regulators.

 

(d)                                 This Section 2.3 shall not apply to any of the following (provided that the Persons that subscribe for any such Securities execute a counterpart to this Agreement or are indirectly bound by this Agreement) to: (i) the issuance or grant of Securities to directors, officers, employees or consultants of the Company or any of its Subsidiaries, including Permitted Equity Issuances, after the date hereof pursuant to any management equity plan or other equity-based employee benefits plan of the Company, which in each case has been approved by the Board or any duly authorized committee thereof in its good faith reasonable judgment; (ii) the issuance or sale of Securities in a Public Offering; (iii) the issuance, grant or sale of Securities to a seller or its designee in connection with and as consideration for the Company’s or any of its Subsidiaries’ direct or indirect acquisition of, or business combination with, a Person (other than Wengen or an Affiliate of Wengen), which acquisition or other business combination has been approved by the Board or any duly authorized committee thereof; (iv) the issuance or sale of Securities pursuant to any joint venture, partnership or other strategic transaction with any Person (other than Wengen or an Affiliate of Wengen), and primarily for purposes other than raising capital, which in each case has been approved by the Board or any duly authorized committee thereof in its good faith reasonable judgment; (v) the issuance of Securities in connection with Permitted Acquisitions (as defined in the Debt Documents); (vi) the issuance of Securities in connection with Permitted Investments (as defined in the Debt Documents), provided that, in the case of the foregoing clauses (i) (solely with respect to Permitted Equity Issuances), (iii), (iv), (v), and (vi), the aggregate number of all Securities issuable pursuant thereto shall under no circumstance exceed, on a cumulative basis, ten percent (10%) of the total shares of Common Stock as of the Closing Date calculated on a fully diluted basis (the “10% Threshold”); and provided, further, that any issuance, grant or sale of Securities in connection with a transaction contemplated by any of the foregoing clauses (i) (solely with respect to Permitted Equity Issuances), (iii), (iv), (v) and (vi), shall not be included in the denominator when determining the calculation of the 10% Threshold; (vii) the issuance of Securities pursuant to the terms of Securities which have been issued, sold or granted in compliance with this Section 2.3; (viii) any issuance of Securities in connection with a Syndication Transaction or Forced Liquidity Transaction; or (ix) any issuance of Securities in connection with any stock split, stock dividend or recapitalization paid on a proportionate basis to all holders of the affected class of equity interest, which in each case has been approved by the Board or any duly authorized committee thereof.

 

(e)                                  If any Participating Investor shall have elected to subscribe for the additional Securities pursuant to this Section 2.3, on either (x) the date such Securities are issued or (y) to the extent that such Participating Investor is required to make a capital call to fund the purchase price under its organizational documents, the later of the date such Securities are issued or twelve (12) Business Days following the capital call (provided that such capital call shall be made no later than the date on which the Subscription Period ends):

 

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(i)                                     such Participating Investor shall pay the applicable purchase price for the additional Securities that it has subscribed for to the Company;

 

(ii)                                  the Company shall issue to such Participating Investor the Securities that such Participating Investor has subscribed for free and clear of all Liens or rights of third parties and cause such Participating Investor’s name to be entered in the register of shareholders against payment of its applicable purchase price and deliver to such Participating Investor a certified copy of an extract of the Company’s register of shareholders evidencing issuance of the Securities registered in the name of such Participating Investor; and

 

(iii)                               the Company and such Participating Investor shall take all other necessary actions to consummate the subscription.

 

(f)                                   If at the end of sixty (60) days following the date of the effectiveness of the Participation Notice, the Company has not consummated the New Issuance on the terms and conditions specified in such Participation Notice, each Participating Investor will be released from any obligation to purchase the Securities in such New Issuance, the Participation Notice will be null and void, and it will be necessary for a separate Participation Notice to be furnished, and the terms and provisions of this Section 2.3 separately complied with in order to consummate any New Issuance subject to this Section 2.3.

 

(g)                                  For purposes of this Section 2.3, each Participating Investor may aggregate, on a pro rata basis, its New Issuance Ownership Percentage with the New Ownership Percentage of any other Investors to the extent that such other Investors do not elect to purchase their respective New Issuance Ownership Percentage.

 

2.4                               Tag-Along Rights.(a)                                With respect to any proposed Transfer (other than Permitted Transfers) of shares of Capital Stock by Wengen (in such capacity, a “Transferring Stockholder”) to any Person other than the Company or a Subsidiary of the Company, or to a Wengen Investor or its Affiliates (a “Third Party”) (such a transfer, a “Tag Along Transfer”), the Transferring Stockholder shall have the obligation, and the Investors shall have the right, but not the obligation, to request the proposed Transferee to purchase from each Investor exercising such right (a “Tagging Stockholder”) that number of shares of Capital Stock requested to be included by such Tagging Stockholder (such rights of the Tagging Stockholder to be referred to as “tag-along rights”); provided, however, that, if, subject to Section 2.4(b) below, such proposed Transferee refuses to purchase such shares of Capital Stock in accordance with the foregoing, each Tagging Stockholder shall have the right, but not the obligation, and the Transferring Stockholder shall have the obligation, to request the proposed Transferee to purchase from each Tagging Stockholder the number of shares of Capital Stock of such Tagging Stockholder determined by multiplying (i) the total number shares of Capital Stock proposed to be Transferred by the Transferring Stockholder by (ii) the Tag Along Ownership Percentage of such Tagging Stockholder.  If the proposed Transferee is unwilling to purchase all of the shares of Capital Stock that the Tagging Stockholders have requested to be acquired by the proposed Transferee pursuant hereto, then the Transferring Stockholder shall not Transfer any shares of Capital Stock to such proposed Transferee unless

 

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and until, simultaneously with the consummation of such Transfer, such proposed Transferee shall purchase such shares of Capital Stock from each Tagging Stockholder in accordance with the terms hereof.  Each Tagging Stockholder shall Transfer its Capital Stock at the same price per share of Capital Stock and upon the same terms and conditions (including time of payment, form of consideration and option to elect form of consideration) as to be paid and given to the Transferring Stockholder; provided, however, that in order to be entitled to exercise its right to sell its Capital Stock to the proposed Transferee pursuant to this Section 2.4, unless waived by the Transferee, a Tagging Stockholder must agree to make to the proposed Transferee the same representations and warranties with respect to such Tagging Stockholder(s)’ ownership of the Capital Stock to be sold by it (other than, for the avoidance of doubt, with respect to matters relating to the business of the Company and its Subsidiaries), covenants, indemnities (including with respect to representations and warranties relating to the business of the Company and its Subsidiaries) and agreements as the Transferring Stockholder agrees to make in connection with the proposed Transfer of the Capital Stock of the Transferring Stockholder (except that in the case of representations and warranties pertaining specifically to the Transferring Stockholder, a Tagging Stockholder shall make the comparable representations and warranties pertaining specifically to itself, and except that, in the case of covenants or agreements capable of performance only by certain Stockholders, such covenants or agreements shall be made only by such certain Stockholders); provided, further, that all representations and warranties, covenants, agreements and indemnities made by the Transferring Stockholder and the Tagging Stockholders pertaining specifically to themselves shall be made by each of them severally and not jointly; provided, further, that each Transferring Stockholder and each Tagging Stockholder shall be severally (but not jointly) liable for (i) indemnification obligations arising out of or relating to any breach of its representations and warranties, covenants and agreements and (ii) its pro rata portion (based on amount of proceeds received by such Person at the closing of such Transfer) of indemnification obligations arising out of or relating to any breach of representations and warranties pertaining to the Company and its Subsidiaries; provided, further, that no Tagging Stockholder shall be liable for a breach of the representations, warranties, covenants, fraud or indemnification obligations of any other Tagging Stockholder(s) or Transferring Stockholder(s); provided, further, that none of the Tagging Stockholders shall be required to enter into a non-competition, non-solicitation or equivalent covenant; provided, further, that in no event shall any Tagging Stockholder be liable for any amounts in excess of the amount of net proceeds actually received by such Tagging Stockholder in such Transfer.

 

(b)                                 Notwithstanding anything to the contrary in this Agreement, each Transferring Stockholder  shall give written notice (the “Tag Notice”) to all other Stockholders of each proposed Transfer (excluding a Permitted Transfer), including the price per share of Capital Stock at which the proposed Transferee is willing to purchase such share, which shall be received at least thirty (30) Business Days prior to such Transfer, setting forth the name of the Transferring Stockholder(s), the number of shares of Capital Stock proposed to be so Transferred, the name and address of the proposed Transferee, the proposed amount and form of consideration (including, if the consideration consists in whole or in part of non-cash consideration, such information available to the Transferring Stockholder(s) as may be reasonably necessary for the Investors to properly analyze the economic value and investment risk of such non-cash consideration), any post-closing obligations imposed on the Tagging Stockholder and other terms and conditions offered by the proposed Transferee (including a

 

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copy of the proposed or definitive purchase agreement and all exhibits/schedules thereto to the extent such documents exist at the of time the Tag Notice is given), and a representation that the proposed Transferee has been informed of the tag-along rights provided for in this Section 2.4 and has agreed to purchase the Capital Stock from any Tagging Stockholder or Tagging Stockholders in accordance with the terms hereof.  The tag-along rights provided by this Section 2.4 must be exercised by each Tagging Stockholder within fifteen (15) Business Days following receipt of the notice required by the preceding sentence, by delivery of a written notice to the Transferring Stockholder indicating such Tagging Stockholder’s election to exercise its rights pursuant to Section 2.4 and specifying the number of shares of Capital Stock that it elects to sell.  If the proposed Transferee fails to purchase Capital Stock from any Tagging Stockholder that has duly exercised its tag-along rights, then the Transferring Stockholder shall not be permitted to make the proposed Transfer; provided that in the event the Transferee fails to purchase the Capital Stock from any Tagging Stockholder, upon prior and irrevocable written notice to such Tagging Shareholder, the Transferring Stockholder shall be entitled (but shall not be obligated) to purchase such Capital Stock from such Tagging Stockholder at a price of not less than the maximum price per share set forth in the notice and otherwise on terms and conditions in the aggregate not less favorable to the Tagging Stockholders than the terms set forth in the Tag Notice, and upon delivery of such notice, shall be permitted to complete the proposed Transfer within ninety (90) days of receipt of the notice from the Transferring Stockholder pursuant to this Section 2.4. Promptly after entering into a definitive agreement, a copy of such definitive agreement, including exhibits/schedules, together with ancillary documents available at such time, shall be delivered to the Tagging Stockholder.

 

(c)                                  If any of the Tagging Stockholders exercises its rights under Section 2.4(a), the closing of the purchase of the Capital Stock with respect to which such rights have been exercised shall take place concurrently with the closing of the sale of the Transferring Stockholder’s Capital Stock.

 

(d)                                 Any Transfer pursuant to this Section 2.4 shall be consummated within ninety (90) days of receipt of the notice from the Transferring Stockholder to the other Stockholders and at a price of not more than the maximum price per share set forth in the notice and otherwise on terms and conditions in the aggregate not more favorable to the Transferring Stockholder and the Tagging Stockholders than were set forth in the Tag Notice.  If, at the end of such ninety (90) day period, the Transferring Stockholder and the Tagging Stockholders have not completed the Transfer of the Capital Stock of the Transferring Stockholder and the Tagging Stockholders in accordance with the terms and conditions of the Tag Notice, all the restrictions on Transfer contained in this Agreement with respect to Capital Stock owned by the Transferring Stockholder and the Tagging Stockholders shall again be in effect.

 

2.5                               Macquarie Syndication Rights.  Notwithstanding anything herein to the contrary, Macquarie, at any time and from time to time during the Syndication Period, may Transfer, directly or indirectly, in one or more transactions, to any Person or Persons any amount of the shares of Series A Preferred Stock purchased by Macquarie at the Closing (each such Transfer, a “Syndication Transaction”); provided, that, the Transferee or purchaser of such shares shall not be a Restricted Transferee (to be determined pursuant to Section 2.1(d)) and such

 

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Person agrees to execute a counterpart to this Agreement and the other Transaction Documents, and (ii) Macquarie may not Transfer, directly or indirectly, any shares of Series A Preferred Stock to more than ten (10) unaffiliated groups with each such group holding not less than a number of shares of Series A Preferred Stock having an aggregate Issue Amount lower than $5,000,000.  Notwithstanding anything contained herein to the contrary, no Syndication Transaction shall be subject to any of the restrictions set forth in this Article II, or confer on any other Stockholder or the Company any of the rights or benefits provided to such other Stockholder or the Company in this Agreement with respect thereto, including the rights set forth in Section 2.4.

 

2.6                               Certain Redemption Rights.(a)                           If any Mandatory Redemption Shares remain outstanding on the date that is forty-five (45) days following the fifth (5th) anniversary of the Issue Date, then, unless the Super Majority Requisite Holders determine otherwise, (x) (i) the size of the Board of Directors shall be increased by two (2) seats (the “Investor Seats”) and, except as set forth in the following sentence, the size of the Board of Directors shall not be further increased without the consent of the Requisite Series A Preferred Holders, (ii) the Requisite Series A Preferred Holders shall be entitled to (A) nominate and appoint the individuals to fill the vacancies created by such increase, (B) nominate and appoint each successor to such individuals and (C) to direct the removal from the Board of Directors of any member nominated and appointed under the foregoing clauses (A) or (B), and (iii) such individuals so nominated and appointed shall thereafter serve on the Board of Directors until their removal by the Requisite Series A Preferred Holders, (y) notwithstanding anything herein or any other Transaction Documents to the contrary, the Series A-1 Dividend Rate with respect to such shares shall be increased to a rate of 18% per annum (without any discount if paid in cash) and the Series A-2 Dividend Rate with respect to such shares shall be increased to the greater of (a) a rate of 18% per annum (without any discount if paid in cash) and (b) cash dividends declared and paid on the number of shares of Common Stock into which such share of Series A-2 Preferred Stock is then convertible, and  (z) during the one hundred twenty (120) days following the date of such appointment (the “Initial Sale Period”), the Company will work in good faith with the Requisite Series A Preferred Holders to structure a mutually agreeable capital fundraising transaction and obtain any consents that may be required to be obtained under the Debt Documents to repurchase or redeem the then outstanding shares of Series A Preferred Stock in accordance with the provisions of this Section 2.6 and the Certificate of Designations.

 

(b)                                 If, after the Initial Sale Period, any shares of Series A Preferred Stock remain outstanding, then, unless all of the Super Majority Requisite Holders determine otherwise:

 

(i)                                     the Requisite Series A Preferred Holders may request in writing that the Continuing Directors of the Company (1) increase the size of the Board of Directors by a number of seats such that, after giving effect to such increase, the number of vacant seats in the Board of Directors plus the Investor Seats constitutes a majority of the Board of Directors sufficient to effect the transactions contemplated herein, (2) nominate, approve and appoint the individuals nominated by the Requisite Series A Preferred Holders to fill each vacancy created by such increase (it being understood that, after giving effect to

 

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such nomination and appointment, the aggregate number of directors so nominated and appointed shall constitute a majority of the Board of Directors sufficient to effect the transactions contemplated herein) and any successor to such individuals from time to time nominated by the Requisite Series A Preferred Holders (each such individual, an “Additional Investor Director” and, collectively, the “Additional Investor Directors”), and (3) remove any such Additional Investor Director from the Board of Directors;

 

(ii)                                  if the Continuing Directors do not so nominate, approve and appoint each Additional Investor Director within five (5) Business Days after receipt of the request by the Requisite Series A Preferred Holders pursuant to clause (i) above, then automatically, and without any action on the part of any Person (and notwithstanding any terms of the By-laws to the contrary) the Requisite Series A Preferred Holders shall be entitled to (A) increase the size of the Board of Directors by a number of seats such that, after giving effect to such increase, the number of vacant seats in the Board of Directors plus the Investor Seats constitutes a majority of the Board of Directors sufficient to effect the transactions contemplated herein, (B) nominate and appoint the Additional Investor Directors to the Board of Directors, (C) nominate and appoint each successor to each such Additional Investor Director, and (D) direct the removal from the Board of Directors of any individual nominated and appointed under the foregoing clauses (B) or (C);

 

(iii)                               each individual nominated and appointed under Section 2.6(b)(ii) shall thereafter serve on the Board of Directors until (A) his or her resignation, (B) his or her removal at the direction of the Requisite Series A Preferred Holders, or (C) redemption of all shares of Series A Preferred Stock; and

 

(iv)                              the Requisite Series A Preferred Holders shall have the right to cause an Exit Event and/or cause the Company to raise capital (whether debt or equity), in each case in an amount sufficient to repurchase or redeem the then outstanding shares of Series A Preferred Stock (or any outstanding portion thereof) in accordance with the terms of Section 2.6(a) (collectively, a “Forced Liquidity Transaction”). The Company shall use its reasonable best efforts to consummate a Forced Liquidity Transaction as promptly as practicable thereafter. Without limiting the generality of the foregoing, in connection with any such Forced Liquidity Transaction, (i) the Company shall cause each of its officers and employees, as the Requisite Series A Preferred Holders may reasonably request, to participate actively in the Forced Liquidity Transaction, including attending diligence meetings and responding to diligence requests, and (ii) Wengen (A) shall vote its shares of capital stock and take any and all other actions, execute and deliver any and all documents, in each case, as reasonably requested by the Requisite Series A Preferred to effect such Forced Liquidity Transaction, including any transfer agreements, sale agreements, escrow agreements, consents, assignments, releases of claims relating to their interest in the Company, waivers, applications, reports, returns, filings and other documents or instruments with any

 

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governmental authorities, (B) to the extent that the Forced Liquidity Transaction is an equity or debt financing, shall cause all or a portion of the proceeds of the Forced Liquidity Transaction to be paid to the Holders of the Series A Preferred Stock as consideration for the redemption of their respective shares of Series A Preferred Stock (or any portion of such consideration that remains outstanding as a result of a partial redemption pursuant to Section 7(a)(1)), (C) irrevocably waives all consent or approval rights, preemptive rights, co-sale rights, rights of first refusal, right of first offer or similar rights that the Company or such stockholder (as the case may be) may have (including under the Stockholders Agreement) in connection with such Forced Liquidity Transaction, (D) acknowledges and agrees not to sue any Holders of shares of Series A Preferred Stock, the members of the Board of Directors designated by such Holders or any of their respective Affiliates in connection with any of their actions or omissions pursuant to this Section 2.6(b)(iv) other than for taking an action in breach of a covenant from the Holders in this Certificate of Designations, (E) irrevocably waives any dissenter’s rights, appraisal rights or similar rights under Section 262 of the General Corporation Law of the State of Delaware or otherwise, and hereby waives all related claims (including any claims for breach of fiduciary duty arising out of or related to any actions taken or omissions, as the case may be, including claims relating to the fairness of a Forced Liquidity Transaction, the amount, nature, form or terms of consideration paid for shares of capital stock of the Company in such Forced Liquidity Transaction even if such Forced Liquidity Transaction results in no consideration being paid or payable to any or all of the holders other than the Holders of shares of Series A Preferred Stock, the process or timing of such Forced Liquidity Event or any similar claims), and (F) agrees to participate, up to such holder’s pro rata portion of its proceeds in such Forced Liquidity Transaction, in any payments received by the buyer in an Exit Event purchase price adjustments, indemnification or other obligations that the sellers of shares of capital stock, other equity interests or assets are required to provide in connection with the Forced Liquidity Transaction such that proceeds will be distributed as if they had been distributed after giving effect to such adjustments, escrows, holdbacks, indemnifications and other obligations, other than any such obligations that relate solely to a particular stockholder of the Company, such as indemnification with respect to representations and warranties given by such stockholder regarding such stockholder’s title to and ownership of securities, in respect of which only such stockholder will be liable; provided, however, that notwithstanding anything to the contrary in this Section 2.6, neither Wengen nor the Wengen Investors shall be bound by any Forced Liquidity Transaction that would: (1) treat the Common Stock held directly or indirectly by Wengen or any Wengen Investor in a manner that is disproportionate to the Common Stock held by any other holder of Common Stock, including by imposing an escrow, clawback or other form of indemnification with respect to the Common Stock held directly or indirectly by Wengen or such Wengen Investor that is not imposed upon the Common Stock of any other holder of the Common Stock, (2) require Wengen or any Wengen Investor to indemnify or hold harmless any buyer for any amounts in excess of the aggregate proceeds to be received, respectively,

 

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by Wengen or such Wengen Investor, as applicable, in connection with such Forced Liquidity Transaction, (3) require Wengen or any Wengen Investor to indemnify or hold harmless any buyer for matters relating to the business of the Company and its Subsidiaries, (4) require an indemnity from or recourse to Wengen or any Wengen Investor for representations, warranties or covenants relating to the business of the Company or its Subsidiaries (excluding, for the avoidance of doubt, representations or warranties related to Wengen or any Wengen Investor’s ownership of Common Stock to be Transferred by such Person (including such Person’s ability to convey title free and clear of all liens, encumbrances, adverse claims or similar restrictions; no conflicts with agreements to which such Person is a party; no conflicts with law; authority; and enforceability) or (5) impose a non-compete on any Wengen Investor or its Affiliates. The Company shall promptly provide any directors nominated and appointed by such Requisite Series A Preferred Holders pursuant to this Section 2.6(b) with indemnification rights, advancement of expenses and exculpation, including indemnification agreements and any new directors’ and officers’ liability insurance policy or policies or any amendment to the existing policy or policies in form satisfactory to such directors.

 

(c)                                  Wengen hereby: (i) irrevocably appoints (and upon any Transfer to a Transferee thereof, each such Transferee thereof shall be deemed to have irrevocably appointed) a Person designated by the Requisite Series A Preferred Holders (with full power of substitution and re-substitution), as such holder’s proxy and attorney in fact (each, in such capacity, a “Wengen Proxy Holder”) for and in the name, place and stead of such holder, to vote or cause to be voted (including by proxy or written consent, if applicable) its shares of Common Stock or other voting equity securities of the Company in connection with any vote, consent or approval necessary to consummate any Forced Liquidity Transaction that complies with the penultimate sentence of this Section 2.6(c); (ii) acknowledges and agrees that, to the maximum extent permitted from time to time under the laws of the State of Delaware, the proxy granted by operation of this Section 2.6(c) is not intended to create, and shall not create, a fiduciary duty or fiduciary or agency relationship between or among the Wengen Proxy Holder, on the one hand, and the Company or any other holder of capital stock of the Company, on the other; (iii) acknowledges and agrees not to sue the Wengen Proxy Holder or any of its Affiliates in connection with the Wengen Proxy Holder’s exercise of the proxy and power of attorney granted it pursuant to clause (i) of this Section 2.6(c) other than for taking an action in breach of a covenant from the Holders in this Agreement; (iv) acknowledges and agrees not to be entitled to any dissenter’s rights, appraisal rights or similar rights under Section 262 of the General Corporation Law of the State of Delaware or otherwise, and hereby irrevocably waives all related claims (including any claims for breach of fiduciary duty arising out of or related to any actions taken or omissions by the Wengen Proxy Holder (other than taking an action or omitting to take an action in breach of a covenant from the Holders in the Certificate of Designations), in connection with the Wengen Proxy Holder’s exercise of the proxy and power of attorney granted it pursuant to clause (i) of this Section 2.6(c), as the case may be, including claims relating to the fairness of a Forced Liquidity Transaction, the amount, nature, form or terms of consideration paid for shares of capital stock of the Company in such Forced Liquidity Transaction even if such Forced Liquidity Transaction results in no consideration being paid or payable to any or all of the holders other than the Holders of shares

 

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of Series A Preferred Stock, the process or timing of such Forced Liquidity Event or any similar claims); (v) represents to the Holders of shares of Series A Preferred Stock that no other irrevocable proxy in connection with its Common Stock has been granted prior to the date hereof, and agrees that any other proxies heretofore given by such holder of Common Stock (which, for the avoidance of doubt, does not include this proxy) are hereby revoked effective immediately; and (vi) affirms that this irrevocable proxy is given in consideration for the mutual agreements contained in this Agreement and in connection with such Stockholder’s subscription for its Securities, and that this irrevocable proxy is coupled with an interest and may not, under any circumstances, be revoked. The Company hereby acknowledges receipt of and the validity of the foregoing irrevocable proxy, and agrees to recognize the Wengen Proxy Holder as the sole attorney and proxy for each such holder at all times prior to the termination date of such irrevocable proxy as hereinafter provided in this Section 2.6(c). Wengen acknowledges and agrees that the irrevocable proxy granted pursuant  to this Section 2.6(c) will remain in effect until the earlier of (x) redemption in full all of the shares of the Series A Preferred Stock in accordance with this Certificate of Designations and (y) twenty (20) years from the date hereof. Notwithstanding anything in this Section 2.6(c) to the contrary, neither Wengen nor the Wengen Investors shall have any obligation to take action or cooperate with the Series A Preferred Stock in connection with, including voting in favor of, any Forced Liquidity Transaction that would: (A) treat the Common Stock held directly or indirectly by Wengen or any Wengen Investor in a manner that is disproportionate to the Common Stock held by any other holder of Common Stock, including by imposing an escrow, clawback or other form of indemnification with respect to the Common Stock held directly or indirectly by Wengen or such Wengen Investor that is not imposed upon the Common Stock of any other holder of the Common Stock, (B) require Wengen or any Wengen Investor to indemnify or hold harmless any buyer for any amounts in excess of the aggregate proceeds to be received, respectively, by Wengen or such Wengen Investor, as applicable, in connection with such Forced Liquidity Transaction, (C) require Wengen or any Wengen Investor to indemnify or hold harmless any buyer for matters relating to the business of the Company and its Subsidiaries, (D) require an indemnity from or recourse to Wengen or any Wengen Investor for representations, warranties or covenants relating to the business of the Company or its Subsidiaries (excluding, for the avoidance of doubt, representations or warranties related to Wengen or any Wengen Investor’s ownership of Common Stock to be Transferred by such Person (including such Person’s ability to convey title free and clear of all liens, encumbrances, adverse claims or similar restrictions; no conflicts with agreements to which such Person is a party; no conflicts with law; authority; and enforceability) or (E) impose a non-compete on any Wengen Investor or its Affiliates. The proxy granted by this Section 2.6(c) shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware without regard to principles of conflicts of law.

 

2.7                               Additional Macquarie’s Rights.  In connection with the proposed Transfer of any Series A-1 Preferred Stock by Macquarie or an issuance and sale of securities pursuant to Section 2.5, the Company will reasonably cooperate with the Transferee to restructure, amend and/or modify the Series A-1 Preferred Stock to be transferred or securities to be issued and sold, as the case may be, in a manner that is tax efficient to such proposed Transferee  and which does not materially adversely affect the Company.  Any issuance of Securities by the Company in furtherance of the foregoing shall not be subject to any of the restrictions to Transfers set forth in this Article II, including Section 2.3.  In connection therewith, each Stockholder hereby irrevocably agrees to take

 

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such further action and execute such other instruments as may be reasonably necessary to effectuate the intent of the foregoing.

 

ARTICLE III
 CORPORATE GOVERNANCE; FINANCIAL INFORMATION AND RELATED COVENANTS

 

3.1                               Corporate Governance.  For as long as any shares of Series A Preferred Stock are outstanding, commencing on the Closing Date and for as long as Abraaj Platinum Holding, L.P., a Cayman limited partnership (“Abraaj”) beneficially owns at least twenty percent (20%) (the “Abraaj Threshold”) or more of the Series A Preferred Stock acquired by it pursuant to the Subscription Agreement, Abraaj shall have the right to designate one (1) natural Person (a “Non-Voting Observer”) to be a non-voting observer to attend meetings of the Board and the Board of each Subsidiary on which a representative from KKR serves (each, a “KKR Board”); provided, however, if Abraaj fail to make the payment owed by it on the Abraaj Second Payment Date (as defined in the Subscription Agreement), if Abraaj fails to make the payment owed by it on the Abraaj Second Payment Date or beneficially owns a number shares of the Series A Preferred Stock in an amount less than the Abraaj Threshold, the Stockholders holding a majority of the outstanding shares of Series A Preferred Stock, voting together as a single class, shall have the right to appoint the Non-Voting Observer.  The Company and each KKR Board shall provide the Non-Voting Observer with written notice of each Board and KKR Board meeting at the same time and in the same manner as notice is provided to the members of the Board and such KKR Board, and permit the Non-Voting Observer to attend, as a non-voting observer, all such meetings, either in person or by telephone conference; provided, however, that if any Non-Voting Observer’s attendance at any such meeting or any portion thereof, in the reasonable judgment of the Board or KKR Board, as the case may be, would jeopardize any attorney-client privilege, then the members of the Board or the KKR Board, as the case may be, may exclude such Non-Voting Observer from the portion of such meeting that would jeopardize such privilege.  The Non-Voting Observer shall be entitled to receive all written materials provided to any Board or KKR Board member in connection with such regularly scheduled Board meetings at the same time such materials and information are provided to such Board or KKR Board members; provided, however, that to the extent that receipt of such materials or other information by the Non-Voting Observer would, based on the advice of outside legal counsel to the Company or the Company’s law department jeopardize any attorney-client privilege, the Board or the KKR Board, as the case may be, may elect to not provide these materials or information. The Non-Voting Observer shall be entitled to (i) share all written materials and other written information provided to it as a Non-Voting Observer with the Investors to the extent that such information would not disclose material non-public information and (ii) share his or her observations or information gained from his or her attendance at such meetings with the Investors.  In addition, if the Board or any KKR Board is considering any transaction in which any Investor or any Affiliate of an Investor has an interest, then the Board or the KKR Board, as the case may be, may withhold from the Investors and the Non-Voting Observer written materials or other information relating thereto and the Non-Voting Observer shall excuse himself or herself from the portion of the meeting at which such transaction is discussed.  The rights set forth in this Section 3.1 shall not apply and shall automatically terminate without any further action by the parties (A) if Abraaj fails to make the payment owed by Abraaj on the Abraaj Second Payment Date and (B) upon the earlier to occur of (i) the

 

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consummation of a Public Offering or (ii) such time as the Investors who purchase shares of Series A Preferred Stock at the Closing fail to beneficially own at least twenty percent (20%) or more of the Series A Preferred Stock acquired by the Investors at the Closing (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the Series A Preferred Stock).

 

3.2                               Information Rights.

 

(a)                                 So long as an Investor holds shares of Capital Stock, such Investor shall be entitled to the information set forth in this Section 3.2(a):

 

(i)                                     within one-hundred twenty (120) days after the end of each fiscal year of the Company, the Company shall deliver to such Investor a consolidating and consolidated balance sheet of the Company as at the end of such fiscal year, and consolidating and consolidated statements of income and cash flows of the Company for such year, prepared in accordance with USGAAP consistently applied, certified by independent public accountants of recognized national standing selected by the Company, together with appropriate management discussion and analysis;

 

(ii)                                  within fifty (50) days after the end of each fiscal quarter of the Company, an unaudited consolidating and consolidated balance sheet of the Company as of the end of each such quarterly period, and unaudited consolidating and consolidated statements of income and cash flows of the Company for such period, prepared in accordance with USGAAP consistently applied, subject to changes resulting from normal year-end audit adjustments, together with appropriate management discussion and analysis;

 

(iii)                               prior to the start of each fiscal year of the Company, or when otherwise readily available, the Budget of the Company and its Subsidiaries (on a consolidated basis);

 

(iv)                              copies of all lender call presentation materials provided to the lenders who are party to the Debt Documents;

 

(v)                                 as soon as available, but in no event later than the date on which they are delivered, copies of all compliance certificates provided to the Company’s lenders who are party to the Debt Documents;

 

(vi)                              any information related to actual results, budgets, forecasts and key performance indicators given to the Board at regularly scheduled Board meetings;

 

(vii)                           (A) prompt written notice of any Major Health and Safety Incident or Major Environmental Incident (to the extent such Major Environmental Incident would be expect to have a Material Adverse Effecct on the Company, taken as a whole) of the Company and/or any of its Subsidiaries, such written notice to specify in each case the (x) nature of the incident and (y)

 

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the impact or effect arising or likely to arise therefrom, (B) prompt written notice of the measures the Company and/or the relevant Subsidiary, as applicable, is taking or plans to take to address such incident(s) and to prevent any future similar incident and (C) ongoing information with respect to the implementation of such remedial measures;

 

(viii)                        prompt written notice of any threatened or commenced material litigation (including, once commenced, notice of any motion or other material filing with a Governmental Authority that may be dispositive of such litigation) against or affecting the Company or any of its Subsidiaries, taken as a whole, including any class action, the Whistleblower Complaint (as defined in the Subscription Agreement) or other proceeding, audit or investigation by any applicable Governmental Authority, to the extent such litigation or investigation would be expected to have a Material Adverse Effect on the Company, taken as a whole; and

 

(ix)                              prompt written notice of any material development with respect to the Whistleblower Complaint (including, once commenced, notice of any motion or other material filing with a Governmental Authority that may be dispositive of such litigation) and the Financial Memoranda (as defined in the Subscription Agreement), including any development that would reasonably be expected to result in a change to the conclusions therein.

 

(b)                                 So long as Macquarie beneficially owns not less than the number of shares of Series A Preferred Stock corresponding to an aggregate Issue Amount Per Share not less than $10,000,000, Macquarie shall be entitled to the following additional information:

 

(i)                                     on a monthly basis, when readily available, any such recurring financial reports provided to KKR;

 

(ii)                                  prior to the start of each fiscal year of the Company, or when otherwise readily available, the “long range plan” of the Company and its Subsidiaries (on a consolidated basis);

 

(iii)                               all materials and information provided to any observer of the Board, including, budgets, forecasts and key performance indicators as applicable;

 

(iv)                              prompt written notice of (A) any default under the Debt Documents, and (B) any termination for cause of any named executive officer (as defined in Item 402(a) of Regulation S-K under the Securities Act of 1933, as amended);

 

(v)                                 after the end of each fiscal year of the Company, and once scheduled, the Company shall provide Macquarie and Abraaj, as the case may be, with a schedule of anticipated meetings of the Board for the then current fiscal year; and

 

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(vi)                              from time to time, such other information regarding the business, financial condition, operations, property or affairs of the Company and its Subsidiaries as Macquarie or Abraaj may reasonably request.

 

(c)                                  So long as Abraaj beneficially owns not less than the number of shares of Series A Preferred Stock corresponding to an aggregate Issue Amount Per Share not less than $10,000,000, Abraaj shall be entitled to the additional information provided pursuant to Sections 3.2(b)(i)-(vi) hereof.

 

(d)                                 Documents required to be delivered pursuant to Section 3.2 may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (A) on which the Company posts such documents, or provides a link thereto, on the Company’s website on the Internet (or other website identified to the Stockholders); (B) on which such documents are posted on the Company’s behalf on another relevant website, if any, to which such Investor has free and unlimited access at no charge (whether a commercial or third-party website (including the SEC’s website)); or (C) on which the Company delivers such documents via electronic mail.  All accounting terms not otherwise defined herein shall have the meanings assigned to them in conformity with USGAAP.  Financial statements and other information required to be delivered by the Company to the Investors pursuant to Section 3.2 hereof shall be prepared in accordance with USGAAP (except for the lack of footnotes and being subject to year-end adjustments).  If, in the good faith reasonable judgment of the Board, at any time any change in USGAAP would affect, to any material extent, the computation of any financial ratio or financial requirement set forth in this Agreement, the Company may amend such ratio or requirement to preserve the original intent thereof in light of such change in USGAAP.

 

(e)                                  No Investor shall be entitled to obtain any information relating to the Company except as expressly provided in this Agreement or to the extent required by applicable Law; and to the extent an Investor is so entitled to such information, such Investor shall comply with the confidentiality obligations set forth on Annex A attached hereto and any applicable securities laws.

 

3.3                               Financial Covenants.

 

(a)                                 The Company covenants and agrees that so long as any shares of Series A Preferred Stock are outstanding:

 

(i)                                     The Company and its Subsidiaries shall not incur Indebtedness (excluding a refinancing of Indebtedness outstanding as of the Issue Date in an amount less than or equal to the sum of (A) the amount of Indebtedness outstanding as of the date of such refinancing, plus (B) original issue discount in respect of any such permitted Indebtedness, plus (C) reasonable fees and expenses of the Company incurred in connection with any such permitted Indebtedness) if the Total Net Leverage, on a pro forma basis, after giving effect to each such incurrence of Indebtedness (but for the avoidance of doubt, excluding any incurrences of Indebtedness described in clauses (1) through (8) below) and the repayment and retirement of any Indebtedness, exceeds the following ratios for

 

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each of the applicable periods set forth in clauses (w) through (z): (w) 5.35:1.00 as of December 31, 2016 based on the consolidated audited financial statements of the Company for the Company’s fiscal year ending December 31, 2016 delivered to Investors pursuant to Section 3.2(a)(i), (x) 5.35:1.00 as of  March 31, 2017, based on the consolidated audited financial statements of the Company for the Company’s fiscal year ending December 31, 2016 delivered to Investors pursuant to Section 3.2(a)(i) for purposes of determining Adjusted EBITDA, and based on the consolidated unaudited financial statements of the Company for the fiscal quarter ending March 31, 2017 delivered to Investors pursuant to Section 3.2(a)(ii) for purposes of determining Indebtedness and unrestricted cash, (y) 5.35:1.00 as of June 30, 2017, based on the consolidated unaudited financial statements of the Company for the fiscal quarter ending June 30, 2017 delivered to Investors pursuant to Section 3.2(a)(ii) and (z) 5.25:1.00 as of the end of each fiscal quarter of the Company thereafter based on, for any such fiscal quarter that is one of the first three quarters of the Company’s fiscal year, the consolidated unaudited financial statements of the Company for such fiscal quarter delivered to Investors pursuant to Section 3.2(a)(ii) and, for any such fiscal quarter that is the fourth quarter of the Company’s fiscal year, consolidated audited financial statements of the Company for the Company’s fiscal year ending on the last day of such quarter delivered to Investors pursuant to Section 3.2(a)(i); provided that if the Total Net Leverage exceeds the amount set forth above as of the end of a specified period above, the foregoing restriction on Indebtedness shall no longer apply if the Total Net Leverage does not exceed the amount set forth above for a subsequent period, as applicable; provided, further, that, notwithstanding the foregoing, the Company or any of its Subsidiaries may incur the following Indebtedness (in each case without compliance with the Total Net Leverage set forth in the foregoing clauses (w), (x), (y), or (z)): (1) the refinancing of Indebtedness that does not increase the total amount of the Company’s Indebtedness on a consolidated basis, excluding any fees or original issue discount associated with such refinancing, (2) the incurrence of Indebtedness to fund then current working capital requirements of the Company and its Subsidiaries as determined in the good faith reasonable judgment of the Board; (3) without duplication of the foregoing clause (2); ordinary course draws under the existing revolving loans as of the Issue Date, including letters of credit issued under the Series 2016 Revolving Credit Loans (as defined in the Debt Documents), provided that the Company may not increase the availability of credit under any such revolving loans, including the Series 2016 Revolving Credit Loans; (4) the incurrence of Indebtedness to complete construction projects then in progress not in excess of $25,000,000; (5) incurrence of Capital Leases incurred in the ordinary course of business not in excess of $25,000,000; (6) renewal of existing operating leases on market terms, regardless of whether operating leases become Capital Leases upon renewal; (7) Indebtedness with respect to letters of credit provided in the ordinary course of business, including, without limitation, each letter of credit issued to any Governmental Authority or other applicable department or agency of any Governmental Authority, at the request of the Company or any Subsidiary thereof; and (8) Indebtedness

 

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constituting any loan or advance by the Company to any Subsidiary or by a Subsidiary to the Company or another Subsidiary.

 

(ii)                                  Commencing with the fiscal quarter ended December 31, 2017 and for every fiscal quarter thereafter (each such quarterly period, a “Test Period”), on or before the applicable Test Period Delivery Date, the Company shall deliver to the Investors a certificate in substantially the form attached as Exhibit B-1 hereto (each, the “2016-Based Test Period Certificate”) specifying for such Test Period (a) the LTM Revenue determined as of the last date of such Test Period and whether it exceeds or is less than the Fiscal Year 2016 Revenue, (b) the LTM Adjusted EBITDA, and whether it exceeds or is less than Fiscal Year 2016 Adjusted EBITDA, and (c) Total Net Leverage, as of the last day of the applicable Test Period, and whether it exceeds or is less than the Total Net Leverage Threshold.  In the event that the 3.3(b) Financial Covenant Trigger occurs, the 2016-Based Test Period Certificate shall be revised to include any reasonable additional accounting and financial information as from time to time reasonably requested by the Requisite Series A Preferred Holders to make any determination pursuant to clause (b) below.

 

(b)                                 Notwithstanding any other provisions of this Agreement, if, so long as any shares of Series A Preferred Stock are outstanding, for two consecutive Test Periods (the “2016-Based Financial Test,” and the failure to satisfy such test as of such date, the “3.3(b) Financial Covenant Trigger”):

 

(i)                                     the LTM Revenue determined as of the last day of each such Test Period is less than Fiscal Year 2016 Revenue; and

 

(ii)                                  the LTM Adjusted EBITDA is less than Fiscal Year 2016 Adjusted EBITDA; and

 

(iii)                               Total Net Leverage exceeds the Total Net Leverage Threshold;

 

then, subject to the last sentence of Section 3.3(e) (collectively, the “2016 Investors’ Remedies”):

 

(A)                               the Requisite Series A Preferred Holders may appoint, at the Company’s expense, by providing written notice to the Company, one (1) Person selected by the Requisite Series A Preferred Holders to advise the Board on improving growth and profitability of the Company and its Subsidiaries;

 

(B)                               the Company shall not and shall not permit any of its Subsidiaries, directly or indirectly, without the prior written consent of the Requisite Series A Preferred Holders, enter into any instrument, document or agreement to effect any acquisition of assets or securities of any Person, or establish any new universities, schools or other institutions; provided, however, the Company may consummate any acquisition of assets or

 

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securities of any Person if a definitive agreement with respect to such transaction was executed prior to the date on which the Company failed to satisfy the 3.3(b) Financial Covenant Trigger;

 

(C)                               the Company shall not and shall cause its Subsidiaries not to incur, without the prior written consent of the Requisite Series A Preferred Holders, any additional Indebtedness; provided, that, notwithstanding the foregoing, the Company or any of its Subsidiaries may incur the following Indebtedness: (1) the refinancing of Indebtedness that does not increase the total principal amount of the Company’s Indebtedness then outstanding on a consolidated basis, excluding any fees associated with such refinancing, (2) the incurrence of Indebtedness to satisfy current working capital requirements of the Company and its Subsidiaries consistent with past practice as determined in the good faith reasonable judgment of the Board, (3) without duplication of the foregoing clause (2), ordinary course draws under the then existing revolving loans, including letters of credit issued under the Series 2016 Revolving Credit Loans, but solely to the extent that such draws do not increase the availability of credit under any such revolving loans, including the Series 2016 Revolving Credit Loans, (4) the incurrence of Indebtedness to complete construction projects then in progress, (5) the incurrence of Capital Leases in the ordinary course of business in an amount such that the aggregate amount of Capital Leases outstanding immediately following such incurrence (including, for the avoidance of doubt, the amount of such newly incurred Capital Leases) does not exceed an amount equal to $25,000,000 plus the aggregate amount of Capital Leases outstanding as of the last day of the Test Period in which the 3.3(b) Financial Covenant Trigger occurred, (6) the renewal of existing operating leases that upon such renewal are deemed Capital Leases to the extent such leases are renewed on substantially the same terms and conditions as in effect prior to such renewal, (7) Indebtedness with respect to letters of credit provided in the ordinary course of business, including, without limitation, each letter of credit issued to any Governmental Authority or other applicable department or agency of any Governmental Authority, at the request of the Company or any Subsidiary thereof), and (8) Indebtedness constituting any loan or advance by the Company to any Subsidiary or by a Subsidiary to the Company or another Subsidiary; and

 

(D)                               the Company shall not and shall cause its Subsidiaries not to, without the prior written consent of the Requisite Series A Preferred Holders, approve (such approval not to be unreasonably withheld): (I) the incurrence of any Capital Expenditures in excess of the applicable Qualified CapEx Threshold; (II) an increase in the Company’s consolidated general and administrative expense set forth in the Budget for the applicable fiscal year (or any reclassification of any line items within or across any such level), including corporate-level general and administrative items and institution-level general and administrative items, which result in an aggregate increase in excess of the greater of (y) 2% or (z) the applicable rate of inflation for the jurisdiction in question (measured in local currency), in either case, over the prior fiscal

 

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year; and (III) any divestitures (other than Transfers between the Company or any of its Subsidiaries and any other Subsidiary of the Company) that result in proceeds to the Company of less than an amount equal to the product of (1) six and (2) the amount of Adjusted EBITDA for the immediately preceding twelve month period ended on the last day of the Test Period immediately preceding the consummation of such divestiture.

 

(c)                                  If, so long as any shares of Series A Preferred Stock are outstanding, notwithstanding any other provisions of this Agreement, Total Net Leverage as of December 31, 2017 is equal to or greater than 5.25 (such test, the “2017 Leverage Test,” and the failure to satisfy such test as of such date, the “3.3(c) Financial Covenant Trigger,” and together with the 3.3(b) Financial Covenant Trigger, the “Financial Covenant Triggers”), then, in addition to any other remedies set forth in this Agreement (together with the 2016 Investors’ Remedies, the “Investors’ Remedies”):

 

(A)                               the Company shall implement a reduction of operating costs (excluding teacher compensation, other direct variable cost and other direct costs and direct compensation) and Capital Expenditures which are recurring in nature by at least $125,000,000 in the aggregate, by December 31, 2018 (it being understood however that once such a reduction is achieved, there is no ongoing reduction in future years); and

 

(B)                               the Company shall not, and shall cause its Subsidiaries not to, without the prior written consent of the Requisite Series A Preferred Holders, effect any acquisition of assets or securities of any Person, or establish any new universities, schools or other institutions.

 

For purposes of this Section 3.3(c), on the delivery of the financial statements for December 31, 2017 pursuant to Section 3.2(a)(i), the Company shall deliver to the Investors a certificate specifying the 2017 Leverage Test, in substantially the form attached as Exhibit B-2 hereto (the “2017 Trigger Certificate,” and together with the 2016-Based Test Period Certificates, the “Test Certificates”).  In the event of that the 3.3(c) Financial Covenant Trigger occurs, the 2017 Trigger Certificates shall be revised to include any additional reasonable accounting and financial information as from time to time reasonably requested by the Requisite Series A Preferred Holders to make any determination pursuant to clause (d) below.

 

(d)                                 From the date of delivery by the Company of any Test Certificate through and including the fifteenth (15th) Business Days after delivery of a Test Certificate (each such fifteen (15) Business Day period, an “Inspection Period”), Macquarie and Abraaj accompanied by, if applicable, their respective accountants and any Holder of shares of Series A Preferred Stock that has coordinated such visit through Macquarie or Abraaj, as the case may be, shall be permitted prompt and reasonable access during normal business hours to the Company’s and its Subsidiaries’ properties at which books and records supporting such Test Certificate are maintained  to review the Company’s and its Subsidiaries’ books and records supporting such Test Certificate and may make inquiries of the Company and its Subsidiaries and their respective accountants or officers related to the

 

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preparation of such Test Certificate, provided that (a) only Macquarie and Abraaj may exercise the access and review rights set forth in this Section 3.3(d), (b) Macquarie and Abraaj, as the case may be, shall not have access to any such properties of the Company and its Subsidiaries more frequently than one (1) time during any Inspection Period, (c) Macquarie and Abraaj, as the case may be, shall provide the Company with at least three (3) Business Days’ written notice prior to such access (“Inspection Notice”), (d) the Company and its Subsidiaries shall not be responsible for any costs and expenses in any way relating to such access and review rights, and (e) the Company shall, and shall cause its Subsidiaries to use their commercially reasonable efforts to cause any such officers to cooperate with and respond to such inquiries as promptly as practicable.  The Company agrees that it shall not, and shall cause its Subsidiaries not to, take any actions with respect to the accounting books and records of the Company and its Subsidiaries on which such Test Certificates are to be based that are inconsistent with USGAAP consistently applied, except as otherwise contemplated herein.  If Macquarie or Abraaj, as the case may be, has an objection to a Test Certificate that Macquarie or Abraaj, as the case may be, reasonably believes could result in the exercise of an Investor Remedy, Macquarie or Abraaj, as the case may be, shall deliver to the Company’s General Counsel (with copies to each of the Company’s Chief Financial Officer, Treasurer and Corporate Secretary) a written statement setting forth in reasonable detail the items in dispute that Macquarie or Abraaj, as the case may be, reasonably believes could result in the exercise of an Investor Remedy, the amount thereof in dispute and the basis for its objections thereto (an “Objections Statement”).  If an Objections Statement with respect to a Test Certificate is not delivered to the Company within thirty (30) Business Days after delivery of such Test Certificate, such Test Certificate shall be final, binding, indisputable and nonappealable by the parties hereto.  Any matters not covered by the Objection Statement shall be final, binding, indisputable and non-appealable by the parties. Macquarie or Abraaj, as the case may be, on the one hand, and the Company, on the other hand, shall negotiate in good faith to resolve any objections set forth in the Objections Statement (and all such discussions related thereto shall, unless otherwise agreed by Macquarie or Abraaj, as the case may be, and the Company, be governed by Rule 408 of the Federal Rules of Evidence (and any applicable similar state rule)), but if they do not reach a final resolution within ten (10) Business Days after the delivery of the Objections Statement, Macquarie or Abraaj, as the case may be, on the one hand, and the Company, on the other hand, shall submit such dispute to the Accounting Referee. Macquarie or Abraaj, as the case may be, and the Company shall cooperate in good faith to promptly engage the Accounting Referee pursuant to an engagement letter that requires the Accounting Referee to make all determinations in accordance with USGAAP consistently applied.  If any dispute is submitted to the Accounting Referee, each party will promptly upon request, furnish to the Accounting Referee (upon the Accounting Referee executing a customary confidentiality agreement with the disclosing party) such work papers and other documents and information relating to the disputed issues as the Accounting Referee may request and are available to that party or its accountants (including information of the Company and its Subsidiaries) and otherwise cooperate fully with the Accounting Referee’s review of the dispute, and each party shall be afforded the opportunity to present the Accounting Referee (with a copy concurrently delivered to the other party) material relating to the determination and to discuss the determination with the Accounting Referee.  The Accounting Referee shall resolve only those matters set forth in such Objections Statement or response of the Company that remain in dispute after the 30-day resolution period.  With respect to any disputed item, the Accounting

 

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Referee’s determination shall be no greater than the higher amount calculated by Macquarie or Abraaj, as the case may be, on the one hand, or the Company, on the other hand, as the case may be, and no less than the lower amount calculated by Macquarie or Abraaj, as the case may be, on the one hand, or the Company, as the case may be, and in all events shall be calculated in accordance with USGAAP.  It is the intent of the parties hereto that the process set forth in this Section 3.3(d) and the activities of the Accounting Referee in connection herewith are not intended to be and, in fact, are not arbitration and that no formal arbitration rules shall be followed (including rules with respect to procedures and discovery).  Macquarie or Abraaj, as the case may be, on the one hand, and the Company, on the other hand, shall use their commercially reasonable efforts to cause the Accounting Referee to resolve all such disagreements as soon as practicable but in no event later than thirty (30) days after submission of the disputed issues to the Accounting Referee. The resolution of the dispute (the “Resolution”) by the Accounting Referee shall be final, binding, indisputable and nonappealable on the parties hereto.  The contested Test Certificate (and to the extent applicable, any future Test Certificate) shall be modified as necessary to reflect such determination.  The fees and expenses of the Accounting Referee shall be paid (i) if the Resolution results in the Investors being entitled to the Investors’ Remedies, by the Company and (ii) if the Resolution does not result in the Investors being entitled to the Investors’ Remedies, solely by Macquarie or Abraaj, as the case may be (and, if such dispute is initiated or continued jointly by Macquarie and Abraaj, pro rata between Macquarie and Abraaj based on their respective Modified Liquidation Preference).

 

(e)                                  The 2016 Investors’ Remedies shall be automatically suspended (each such occurrence, a “Suspension”) without any further action by the parties hereto if, for two consecutive Test Periods following the Test Period in which the 3.3(b) Financial Covenant Trigger occurred, (A) (i) the LTM Revenue determined as of the last day of each such Test Period shall exceed the Fiscal Year 2016 Revenue, and (ii) the LTM Adjusted EBITDA for each such Test Period shall exceed the Fiscal Year 2016 Adjusted EBITDA; or (B) the Total Net Leverage shall be less than the corresponding Total Net Leverage Threshold.  Following a Suspension, if the 3.3(b) Financial Covenant Trigger subsequently occurs and the 2016 Investors’ Remedies triggered, the determination of the next Suspension, if any, shall be made as if the Company never previously breached the 3.3(b) Financial Covenant nor were the 2016 Investors’ Remedies ever triggered.

 

(f)                                   For purpose of this Section 3.3, all conventions and principles to be used for calculating the metrics utilized in the Financial Covenants shall be based on the conventions and principles expressly set forth in the Company’s Management Discussion & Analysis disclosures contained in the Company’s quarterly financial statements reported to the Company’s lenders with regard to metrics that are substantially equivalent to the metrics utilized in the Financial Covenants.  For the avoidance of doubt, the Series A Preferred Stock shall not be deemed Indebtedness for purposes of the calculation of the Total Net Leverage under Section 3.3.

 

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ARTICLE IV
 CERTAIN COVENANTS AND AGREEMENTS

 

4.1                               Covenants.  So long as any shares of Series A Preferred Stock are outstanding:

 

(a)                                 The Company will use its reasonable best efforts to preserve and maintain, and, unless the Board in its good faith reasonable judgment deems it not to be in the best interests of the Company, cause each Key Subsidiary to use its reasonable best efforts to preserve and maintain, its corporate existence, rights, franchises and privileges in the jurisdictions of its incorporation or organization, as the case may be, and qualify and remain qualified, and cause each Key Subsidiary to qualify and remain qualified, as a foreign corporation or other entity, as the case may be, in each jurisdiction in which such qualification is necessary or desirable in view of its business and operations or the ownership or lease of its properties, except when the failure to be so qualified would not have a Material Adverse Effect on the Company.

 

(b)                                 The Company will use its commercially reasonable efforts to maintain all Educational Approvals and remain in material compliance with all Educational Laws, as those terms are defined in the Subscription Agreement, and shall notify the Investors in writing (i) of any proceedings to revoke, suspend, limit, condition, restrict or withdraw any Educational Approval and (ii) if any School is in violation of Educational Laws or any of the terms or conditions of any Educational Approval, or fails to hold or obtain any Educational Approval; provided, however, notwithstanding the foregoing, the Company shall only be obligated to deliver such notice to the Investors if and to the extent that the Company would be required to deliver a notice of any such proceeding, violation or failure to the lenders under the Credit Agreement and the delivery to the Investors of a copy any such notice to the lenders under the Credit Agreement shall be sufficient to satisfy the notice requirement hereunder.

 

(c)                                  The Company shall maintain and preserve, and cause each Subsidiary to maintain and preserve, all of its material properties and assets necessary for the proper conduct of its business, in good repair, working order and condition, ordinary wear and tear excepted.

 

(d)                                 The Company shall maintain insurance with responsible and reputable insurance companies or associations in such amounts and covering such risks as is customarily carried by companies of equivalent size, geographic reach, engaged in similar businesses and owning similar properties in the same areas and jurisdictions in which the Company directly and indirectly operates.

 

(e)                                  The Company shall at all times maintain an effective Compliance Program reasonably designed and implemented to prevent and detect violations of the Company’s Code of Conduct and Ethics, the Company’s Foreign Corrupt Practices Act Compliance Program and Anti-Corruption Laws (as such term is defined in the Subscription Agreement) (collectively, the “Compliance Program”), including appointing a compliance officer responsible for overseeing and managing the implementation of the Compliance Program and reporting to the Board as needed but no less than annually regarding the operation

 

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of the Compliance Program and any significant allegations or investigations of potential or actual violations thereof.

 

4.2                               Tax Matters.

 

(a)                                 Tax Treatment.  Solely for all U.S. federal and applicable state and local, income tax purposes, the Company, each Investor and is respective Affiliates intend that:

 

(i)                                     the Series A-1 Preferred Stock shall be treated as preferred stock and shall not be treated as common stock or indebtedness, including for purposes of Code Sections 301 and 305 and the Treasury Regulations promulgated thereunder;

 

(ii)                                  the Series A-2 Preferred Stock shall be treated as common stock and shall not be treated as preferred stock or indebtedness, including for purposes of Code Sections 301 and 305 and the Treasury Regulations promulgated thereunder;

 

(iii)                               Code Section 305(c) and Treasury Regulations Section 1.305-5(b)(1) applies to the Series A-1 Preferred Stock by way of Treasury Regulations Section 1.305-5(b)(2) and the “redemption premium” thereunder with respect to any shares of Series A-1 Preferred Stock shall equal the Preferred Return with respect to such shares less the original cost (or Issue Price Per Share in the case of a PIK Dividend Share) for such shares;

 

(iv)                              the payment of any PIK Dividend Shares on the Series A-1 Preferred Stock shall be treated as a distribution pursuant to Code Section 301 (by operation of Code Sections 305(b) or 305(c) or otherwise);

 

(v)                                 any increase of the Series A-2 Liquidation Preference as a result of the non-cash payment of any Dividend Amount on the Series A-2 Preferred Stock shall not be treated as a distribution pursuant to Code Section 301 (by operation of Code Sections 305(b) or 305(c) or otherwise);

 

(vi)                              any payment by the Company in redemption to a holder of Series A Preferred Stock, whether such redemption is in part or in full, shall be treated as a redemption of such Series A Preferred Stock within the meaning of Code Section 317(b); and

 

(vii)                           the conversion of any Series A Preferred Stock for Conversion Stock shall be treated as a tax-free reorganization pursuant to Code Section 368(a)(1)(E).

 

The Company, each Investor and their respective Affiliates shall file all income tax returns and other income tax filings (including any IRS Forms 1099 to the extent required) consistent with this Section 4.2(a) and shall not take any tax position (including, without limitation, by way of withholding) on any tax return

 

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or other tax filing, in any tax proceeding or tax audit, or otherwise that is inconsistent with this Section 4.2(a), unless otherwise required by a change in applicable Law after the date hereof or any subsequent written guidance issued by the Internal Revenue Service or other applicable Governmental Authority after the date hereof which purports to clarify applicable Law existing as of the date hereof. In addition, prior to any partial redemption of Series A Preferred Stock, the Company and its Affiliates will consult in good faith with the holders of the Series A Preferred Stock and their tax advisors to determine the U.S. federal and applicable state and local income tax treatment and tax reporting of, and tax withholding with respect to, any partial redemption of such Series A Preferred Stock (e.g., as a distribution under Section 301 of the Code or a redemption under Section 302 of the Code); provided that, the Company and its Affiliates shall be under no obligation to consult with the holders of the Series A Preferred Stock and their tax advisors with respect to any partial redemption of such Series A Preferred Stock if the Company independently determines to treat such redemption as a redemption under Section 302 of the Code.

 

(b)                                 Tax Contests.  The Company agrees to promptly notify each of the Holders of any audit, examination, notice, inquiry or other claim or contest by the Internal Revenue Service or other Governmental Authority of the Company which relates to the tax treatment of the Series A Preferred Stock or the tax treatment of any amounts paid or payable on the Series A Preferred Stock, including any payments in-kind, deemed dividends or distributions, increases with respect to the liquidation preference, or any redemption by the Company of the Series A Preferred Stock (each, a “Company Tax Contest”).  The Company shall control the conduct and defense of any such Company Tax Contest; provided that, (i) any affected Holders shall be permitted to participate in the conduct and defense of any such Company Tax Contest at their own cost, (ii) the Company shall keep all Holders informed regarding all developments with respect to any such Company Tax Contest, and (iii) the Company shall not settle or otherwise dispose of any such Company Tax Contest without the prior written consent of the affected Holders, not to be unreasonably withheld, conditioned or delayed.

 

(c)                                  Tax Cooperation.  Each of the Company and Investors and their respective Affiliates shall provide the other party with such information and records, including information regarding current and accumulated earnings and profits, and shall make such of its officers, directors, employees and agents available as may reasonably be requested by such other party in connection with the preparation of any tax return or any tax audit (including any Company Tax Contest) or other tax proceeding that relates to the Company or, with respect to their ownership of Series A Preferred Stock, the Investors.  Nothing in the preceding sentence shall be construed to require any of the Investors or their respective Affiliates to provide any information or any assistance of any sort to any other Investor or such Investor’s Affiliates. Not in limitation of the foregoing, with respect to any taxable year during which Macquarie held any Series A-1 Preferred Stock, upon Macquarie’s request, the Company shall reasonably cooperate with Macquarie in determining (x) the aggregate amount of distributions under Code Section 301 for such taxable year with respect to such Series A-1 Preferred Stock (whether deemed or actual or paid in cash or in kind, including, taking into account Code Section 305 and the Treasury Regulations promulgated thereunder) and (y) whether any such distributions

 

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should be treated as a “dividend” or “return of capital” for U.S. federal, and applicable state and local, income tax purposes.

 

ARTICLE V
 MISCELLANEOUS

 

5.1                               Certain Defined Terms.

 

(a)                                 Definitions.  Capitalized Terms used and not otherwise defined herein shall have the meanings ascribed thereto under the Certificate of Designations.

 

(b)                                 As used in this Agreement, the following terms shall have the meanings set forth or as referenced below:

 

“10% Threshold” has the meaning set forth in Section 2.3(d).

 

“2016-Based Financial Test” has the meaning set forth in Section 3.3(b).

 

“2016-Based Test Period Certificate” has the meaning set forth in Section 3.3(a)(ii).

 

“2016 Investors’ Remedies” has the meaning set forth in Section 3.3(b).

 

“2017 Leverage Test” has the meaning set forth in Section 3.3(c).

 

“2017 Trigger Certificate” has the meaning set forth in Section 3.3(c).

 

“3.3(b) Financial Covenant Trigger” has the meaning set forth in Section 3.3(b).

 

“3.3(c) Financial Covenant Trigger” has the meaning set forth in Section 3.3(c).

 

“Abraaj Threshold” has the meaning set forth in Section 3.1.

 

“Accounting Referee” means an independent nationally recognized accounting firm of similar standing mutually acceptable to the parties.

 

“Adjusted EBITDA” means, as of any date of determination, net income or loss, before or appropriately adjusted for the following items: (i) gain or loss on sales of discontinued operations, net of tax, (ii) income or loss from discontinued operations, net of tax, (iii) equity in net loss (income) of Affiliates, net of tax (iv) income tax expense (benefit), (v) foreign currency exchange loss (income), net, (vi) other (income) expense, net, (vii) loss (gain) on derivatives, (viii) loss on debt extinguishment, (xi) interest expense, (x) interest income, (xi) depreciation and amortization, (xii) stock-based compensation expense, (xiii) loss on impairment of assets, (xiv) restructuring charges, business optimization expenses or reserves (including restructuring costs related to acquisitions consummated after the date hereof, closure and/or consolidation of facilities, and/or the Company’s Excellence in Process initiative), limited in the aggregate to (A) $50,000,000 in the calendar year 2016, $35,000,000 in the calendar year 2017, and (B) $15,000,000 for any twelve (12) month period commencing January 1, 2018, (xv) any pro forma increase or decrease, as the case may be, in the Acquired EBITDA arising out of events

 

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occurring after the Closing Date that (a) are directly attributable to a specific transaction, (b) are factually supportable and are expected to have a continuing impact, and (c) are in each case (except for adjustments in the aggregate not exceeding $15,000,000 for any twelve month period immediately preceding such determination date) determined on a basis consistent with Article 11 of Regulation S-X promulgated under the Securities Act of 1933, as amended, and as interpreted by the staff of the SEC, (xvi) other material non-recurring items, or non-cash expenses or accounting adjustments or charges, and (xvii) gain or loss on a sale of a Subsidiary. Notwithstanding the foregoing, as of any date of determination, for any twelve month period preceding such date, the amount of the add-back in (xiv) above shall not exceed:  $50,000,000 for any such twelve month period ending prior to December 31, 2017; $35,000,000 for any such twelve month period ending on or after December 31, 2017, but prior to September 30, 2018; and $15,000,000 for any such twelve month period ending on or after September 30, 2018.

 

“Affiliate” of any particular Person means any other Person Controlling, Controlled by or under common Control with such particular Person; provided, however, that Persons shall not be deemed “Affiliates” of one another or the Company solely as a result of this Agreement or the Subscription Agreement; provided, further, that, when the term “Affiliate” is used with reference to (i) any Wengen Investors, it shall also include any Related Party of Wengen, and (ii) any natural person, shall also include such person’s Immediate Family Members.  “Affiliated with” shall have a correlative meaning to the term “Affiliate”.

 

“Agreement” has the meaning set forth in the preface.

 

“Becker Excluded Securities” means shares of Common Stock acquired by Mr. Becker as a result of a written agreement between the Company and/or Wengen (or Wengen’s Affiliates) and Douglas L. Becker in effect on or before the date hereof, including any shares of Common Stock acquired as a result of the exercise of fully vested options to be granted to Mr. Becker upon the consummation of an IPO or QPO pursuant to a written agreement between the Company and/or Wengen (or Wengen’s Affiliates) and Mr. Becker in force and effect on or prior to the date hereof.

 

“Board” means the Board of Directors of the Company.

 

“Budget” means the annual budget of the Company and its Subsidiaries for each fiscal year of the Company.

 

“Business Day” means a day that is a Monday, Tuesday, Wednesday, Thursday or Friday and is not a day on which banking institutions in New York City generally are authorized or obligated by Law or executive order to close.

 

“Bylaws” means the bylaws of the Company, as they may be amended from time to time.

 

“Capital Expenditures” shall mean, for any period, the aggregate of all expenditures (whether paid in cash or accrued as liabilities and including in all events all amounts expended or capitalized under Capital Leases) by the Company and its Subsidiaries during such period that, in conformity with USGAAP, are required to be included as Purchase of property and land use rights on a consolidated statement of cash flows of the Company and its Subsidiaries.

 

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“Capital Leases” means, as applied to the Company or any of its Subsidiaries, any lease of any property (whether real, personal or mixed) by the Company or any of its Subsidiaries as lessee that, in conformity with USGAAP, is, or is required to be, accounted for as a capital lease on the balance sheet of the Company or any of its Subsidiaries.

 

“Capital Stock” means all shares of capital stock of the Company.

 

“Capitalized Lease Obligations” means, as applied to the Company, all obligations under Capital Leases of the Company or any of its Subsidiaries, in each case taken at the amount thereof accounted for as liabilities in accordance with USGAAP.

 

“Certificate of Designations” means the certificate of designations relating to the Series A Preferred Stock, as it may be amended from time to time.

 

“Certificate of Incorporation” means the certificate of incorporation of the Company, as it may be amended from time to time, and shall include this Certificate of Designations.

 

“Class A Common Stock” means the Company’s Class A Common Stock, par value US$0.001 per share, if any is issued.

 

“Class B Common Stock” means the Company’s Class B Common Stock, par value US$0.001 per share, if any is issued.

 

“Closing” has the meaning set forth in the Subscription Agreement.

 

“Closing Date” has the meaning set forth in the Subscription Agreement.

 

The term “closing date”, when used in reference to a Public Offering, means the date on which the Company has received the funds from the sale of shares of Common Stock in such Public Offering on the Relevant Market pursuant to an effective registration statement.

 

“Code” means the Internal Revenue Code of 1986, as amended.

 

“Common Stock” means mean (a) the Class A Common Stock, (b) the Class B Common Stock, (c) any other Capital Stock of the Company, however designated, authorized on or after the date hereof, which shall neither be limited to a fixed sum or percentage of par value in respect of the rights of the holders thereof to participate in dividends nor entitled to a preference in the distribution of assets upon the voluntary or involuntary liquidation, dissolution or winding up of the Company and (d) any other securities into which or for which any of the securities described in clause (a), (b) or (c) may be converted or exchanged pursuant to a plan of recapitalization, reorganization, merger, consolidation, sale of assets or other similar transaction, and, following the closing date of a Public Offering, the class of shares of Capital Stock issued by the Company to the public.

 

“Common Stock Outstanding” at any given time shall mean the number of shares of Common Stock of all classes issued and outstanding at such time.

 

“Company” has the meaning set forth in the preface.

 

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“Competitor” means any Person that (either on its/his/her own account or through any of its/his/her Subsidiaries), at the relevant time of determination, (i) owns more than 10% of voting securities in and/or (ii) manages or operates, in either case, for-profit, private, post-secondary institutions, and, solely with respect to entities operating in the United States, Title IV participating institutions, in the same or substantially similar manner as those owned and/or managed or operated by the Company as of the date hereof in a jurisdiction where the Company currently operates.

 

“Compliance Program” has the meaning set forth in Section 4.1(e).

 

“Control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract, or otherwise, and the terms “Controlling” and “Controlled” shall have meanings correlative thereto

 

“Conversion Stock” means the shares of the class of Common Stock issued and sold by the Company in a Public Offering and which class of Common Stock shall be issued upon the conversion of the shares of Series A Preferred Stock, such shares each having such rights, restrictions and privileges as are (or are to be) contained in or accorded by the Certificate of Incorporation or Bylaws.

 

“Credit Agreement” means that certain Amended and Restated Credit Agreement, dated as of June 16, 2011, among the Company, as the Parent Borrower, Iniciativas Culturales de España S.L., as the Foreign Subsidiary Borrower, the several lenders party thereto from time to time, and Citibank, N.A. as successor Administrative Agent and Collateral Agent, as amended by that certain First Amendment to Amended and Restated Credit Agreement, dated as of January 18, 2013, that certain Second Amendment to Amended and Restated Credit Agreement, dated as of April 23, 2013, that certain Third Amendment to Amended and Restated Credit Agreement, dated as of October 3, 2013, that certain Fourth Amendment to Amended and Restated Credit Agreement and Amendment to the U.S. Obligations Security Agreement and the U.S. Pledge Agreement, dated as of July 7, 2015, that certain Fifth Amendment to Amended and Restated Credit Agreement, dated as of June 3, 2016 and that certain Sixth Amendment to Amended and Restated Credit Agreement, dated as of July 7, 2016, as amended, restated, refinanced, replaced, supplemented or otherwise modified from time to time.

 

“Credit Documents” means the Credit Agreement, and all notes, guarantees, collateral and security documents, instruments and agreements executed in connection therewith, and in each case, as amended, restated, refinanced, replaced, supplemented or otherwise modified from time to time

 

“Data” has the meaning set forth on Annex A hereto.

 

“Debt Documents” means the Credit Documents and the Note Documents.

 

“Divested Asset” has the meaning set forth in the definition of Fiscal Year 2016 Revenue.

 

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The term “effective time” means, when used in reference to a Public Offering, the time at which the United States Securities and Exchange Commission declares the registration statement filed in connection with such Public Offering effective.

 

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

 

“Fair Market Value” of a security of the Company means (i) if such security is listed on a securities exchange or the over-the-counter market, the VWAP of such security, (ii) if such security is not listed in any public market, then the value shall be equal to the price at which a willing and able seller would sell, and a willing and able unaffiliated Third Party buyer would buy, such security in an all-cash sale, having full knowledge of the facts, and assuming such party acts on an arm’s-length basis with the expectation of concluding the purchase and sale within a reasonable time, as determined pursuant to Section 5.17.

 

“Financial Covenants” means, collectively, the covenants set forth in Section 3.3(b) and Section 3.3(c).

 

“Financial Covenant Triggers” has the meaning set forth in Section 3.3(c).

 

“Fiscal Year 2016 Adjusted EBITDA” means the Adjusted EBITDA of the Company and its Subsidiaries, on a consolidated basis, for the fiscal year ending December 31, 2016, which shall

 

exclude the Adjusted EBITDA of the Company and its Subsidiaries, on a consolidated basis, earned from one or more Divested Asset, but solely if the amount received by the Company in connection with the sale of such Divested Asset(s) exceeds an amount equal the product of (i) six (6.0) and (ii) the Adjusted EBITDA for the immediately preceding twelve month period ended on the last day of the Test Period immediately preceding the consummation of such divestiture, and

 

include the full year 2016 Adjusted EBITDA (including the Adjusted EBITDA for the fiscal year ended December 31, 2016) earned from any assets that is acquired by the Company or any of its Subsidiaries after January 1, 2016 and on or prior to December 31, 2016.

 

The term “on fully diluted basis” means all outstanding shares of Common Stock assuming the exercise and/or conversion of all options, and other outstanding, exercisable and/or convertible Capital Stock (excluding shares of Series A Preferred Stock), if any (subject to appropriate adjustment for stock splits, stock dividends, combinations, recapitalizations (in which all shares of an applicable class are treated in the same manner) and the like).

 

“Fiscal Year 2016 Revenue” means the Company’s revenue, on a consolidated basis, for the fiscal year ending December 31, 2016, calculated in conformity with USGAAP consistently applied, referred to therein which shall

 

exclude the revenue of the Company and its Subsidiaries, on a consolidated basis, earned in the Company’s fiscal year ended December 31, 2016 from one or

 

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more assets owned by the Company or any of its Subsidiaries as of January 1, 2016 that have been divested (regardless of whether such divestiture occurs prior to or after December 31, 2016) (each, a “Divested Asset”), but solely if the amount received by the Company in connection with the sale of such Divested Asset(s) exceeds an amount equal the product of (i) six (6.0) and (ii) the Adjusted EBITDA for the immediately preceding twelve month period ended on the last day of the Test Period immediately preceding the consummation of such divestiture, and

 

include the full year 2016 revenue (including the annual revenue for the fiscal year ended December 31, 2016) earned from any assets that is acquired by the Company or any of its Subsidiaries after January 1, 2016 and on or prior to December 31, 2016.

 

“FMV Determination Date” has the meaning set forth in Section 5.17.

 

“Forced Liquidity Transaction” has the meaning set forth in Section 2.6(a).

 

“Holder” means the record holder of one or more shares of Series A Preferred Stock, as shown on the books and records of the Company.

 

“Immediate Family Member” shall mean spouse, domestic partner, descendants (whether by blood or adoption, and including stepchildren), parents or siblings, including in each case in-laws and adoptive relations, and the spouses and domestic partners of such persons.

 

“Indebtedness” shall mean (a) all indebtedness of the Company and any of its Subsidiaries for borrowed money, (b) all obligations of the Company and any of its Subsidiaries evidenced by bonds, debentures, notes, loan agreements or other similar instruments, (c) the amount of all drafts drawn under any and all letters of credit issued for the account of the Company or any of its Subsidiaries (but only to the extent of any unreimbursed drawings under any letter of credit), (d) all Indebtedness of any other Person secured by any Lien on any property owned by the Company or any of its Subsidiaries, whether or not such Indebtedness has been assumed by the Company or any of its Subsidiaries (but only to the extent it becomes non-contingent), and (e) the principal component of any Capitalized Lease Obligations of the Company or any of its Subsidiaries in each case actually owed on such date and to the extent appearing as a debt or liability on the balance sheet of the Company determined on a consolidated basis in accordance with GAAP (provided that the amount of any Capitalized Lease Obligations or any such Indebtedness issued at a discount to its face value shall be determined in accordance with GAAP).

 

“Initial Sale Period” has the meaning set forth in Section 2.6(a).

 

“Inspection Period” has the meaning set forth in Section 3.3(d).

 

“Investor” has the meaning set forth in the preface.

 

“Investor Seats” has the meaning set forth in Section 2.6(a).

 

“Investors’ Remedies” has the meaning set forth in Section 3.3(c).

 

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“KKR” means KKR 2006 Fund (Overseas), Limited Partnership and KKR Partners II (International), Limited Partnership, and any other party to the Sponsor Securityholder Agreement that is a controlled Affiliate of any of the foregoing, collectively.

 

“KKR Board” has the meaning set forth in Section 3.1.

 

“Law” means all statutes, laws (whether civil, criminal, corporate or administrative), ordinances, rules and regulations of any Governmental Authority.

 

“Lien” means any encumbrance, restriction, claim, mortgage, pledge, charge, assignment, hypothecation, security interest, title retention, banker’s lien, privilege or priority of any kind having the effect of security .

 

“LTM Adjusted EBITDA” means, as of any date, the Company’s Adjusted EBITDA on a consolidated basis for any applicable preceding twelve (12) month period.

 

“LTM Revenue” means, as of any date, the Company’s revenue on a consolidated basis for any applicable immediately preceding twelve (12) month period, in conformity with USGAAP.

 

“Macquarie” means Macquarie Sierra Investment Holdings Inc.

 

“Major Environmental Incident” means an material environmental incident or a series of incidents which resulted in or is likely to result in one or more of the following: (a) actual or potential material harm to the health or safety of people (to the extent medical treatment is required); (b) material damage to wildlife or the natural environment; (c) material human or environmental damage arising from the incident that cannot be remediated; (d) a material rehabilitation bond or guarantee being called by a relevant Governmental Authority; or (e) legal proceedings, regulatory investigations or regulatory prosecution in connection with the foregoing.

 

“Major Health and Safety Incident” means any incident involving the death or permanent disablement (including by injury or illness) of an employee, contractor or any other individual at one of the Company or its Key Subsidiary’s premises.

 

“New Issuances” has the meaning set forth in Section 2.3(a).

 

“New Issuance Equity Value” means the implied enterprise value of the Company in connection with an New Issuance of additional Securities pursuant to Section 2.3, (i) plus unrestricted cash of the Company and its Subsidiaries as of the closing of such New Issuance, (ii) less (a) all Indebtedness then-outstanding, and (b) transaction expenses or change of control payments incurred by or on behalf of the Company or any of its Subsidiaries in connection with such New Issuance, and (iii) plus or minus, as the case may be, any other amounts added or deducted, as the case may be, in calculating the price per share of additional Securities that are subject to the New Issuance, in each case, as determined in good faith by the Board and delivered in writing to the Holders of shares of Series A Preferred Stock prior to such Issuance; provided that, for the avoidance of doubt, the Requisite Series A Preferred Holders may challenge whether any such value was determined by the Board in good faith and in accordance

 

33

 

with the terms of this Agreement, and any such challenge that cannot be resolved by the parties within ten (10) Business Days shall be referred to the Accounting Referee for final resolution (provided that “baseball style” arbitration shall be used and the fees and expenses of the Accounting Referee shall be borne by the party whose final calculation submitted is not selected by the Accounting Referee).

 

“New Issuance Ownership Percentage” means, as of any time of determination:

 

(a)                                 for each Investor holding shares of Series A Preferred Stock, with respect to such shares, the quotient, expressed as a percentage, obtained by dividing (i) the number of shares of Common Stock issuable upon conversion of such shares of Series A Preferred Stock, assuming a conversion of such shares of Series A Preferred Stock pursuant to Section 8(a)(ii) of the Certificate of Designations in connection with a Sale of the Company at an aggregate purchase price equal to the New Issuance Equity Value, divided by (ii) the total number of shares of Common Stock Outstanding as of such date; and

 

(b)                                 for each Investor holding shares of Common Stock, with respect to such shares, the quotient, expressed as a percentage, obtained by dividing (i) the number of shares of Common Stock held by such Investor as of such date, by (ii) the total number of shares of Common Stock Outstanding as of such date.

 

“Non-Voting Observer” has the meaning set forth in Section 3.1.

 

“Note Documents” means the Indenture, and all notes, guarantees, collateral and security documents, instruments and agreements executed in connection therewith, and in each case, as amended, restated, refinanced, replaced, supplemented or otherwise modified from time to time.

 

“Parent” has the meaning set forth in the definition of “Exit Event.”

 

“Participating Investor” or “Participating Investors” has the meaning set forth in Section 2.3(b).

 

“Participation Notice” has the meaning set forth in Section 2.3(a).

 

“Permitted Equity Issuances” means the issuance or grant of Securities to (i) Douglas Becker, including any options to purchase Common Stock that will be granted to Mr. Becker upon the liquidation of executive profits interests held by Mr. Becker in Wengen as of the date hereof upon the consummation an IPO or QPO, or (ii) any Affiliates or full-time employees of Wengen or any Wengen Investor, in each case, pursuant to a binding commitment between any such Person and the Company, in effect as of the Initial Issue Date, to issue or grant such Securities to such Person.

 

“Permitted Transfers” means, with respect to any Transfer by an Affiliate of Wengen who is an individual, the Transfer by such Affiliate of any or all of such Affiliate’s shares of Capital Stock, either during such Affiliate’s lifetime or on death by will or the laws of descent and distribution, to one or more members of such Affiliate’s immediate family, to a trust for the exclusive benefit of such Affiliate or such Immediate Family Members (so long as such individual controls such trust and guarantees the obligations of such entity in connection with

 

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any of the provisions herein), to any other entity owned exclusively by such Affiliate or such Immediate Family Members, or to any combination of the foregoing; provided, however, that no such Transfer will be effective until the holders of the beneficial interests of such Transferee have delivered to the Company a written acknowledgement and agreement in form and substance reasonably satisfactory to the Company that they will not Transfer any such beneficial interests or permit such Transferee to issue any such beneficial interests except to the extent such Transfer or issuance (treating such issuance as a Transfer by such holders) would be permitted under this Agreement if the beneficial interests were shares of Common Stock; provided, further that, such Affiliate will retain Control of such Transferred shares, whether by proxy or other arrangement.

 

“Person” means an individual, a partnership, a joint venture, a corporation, an association, a joint stock company, a limited liability company, a trust, an unincorporated organization or a government or any department or agency or political subdivision thereof, or any group (within the meaning of Section 13(d)(3) of the Exchange Act or any successor provision) consisting of one or more of the foregoing.  For purposes of this Agreement, when used in reference to an Investor, the term “group” shall have the meaning set forth in Section 13(d)(3) of the Exchange Act or any successor provision; provided, however, that no inference, presumption or conclusion that two or more Investors constitute a “group” within the meaning of Section 13(d)(3) of the Exchange Act or Rule 13d-5 thereunder shall be raised from the fact that such Investors collectively may exercise or refrain from exercising the rights under this Agreement in the same manner, that such Investors may be represented by a single law firm or advisor or that such rights were negotiated with the Company at the same time or amended or modified with the Company and such Investors in the same or a similar manner.

 

“Preferred Return” of a share of Series A Preferred Stock means an amount equal to the product of 1.15 multiplied by the sum of: (i) the Issue Amount Per Share plus (ii) any declared but unpaid dividends.

 

“Priority Amount” means shares of Registrable Securities (as defined in the Registration Rights Agreement) constituting Conversion Stock in a dollar amount equal to, as of any date of determination, the greater of (a) 25% of the aggregate offering price of all Common Stock proposed to be offered and sold in the Initial Follow-On Public Offering, and (b) $275 million.

 

“Proxy Holder” has the meaning set forth in Section 2.6(b).

 

“Public Offering” means either a QPO or an IPO of the Company.

 

“Qualified CapEx Threshold” means:

 

(a)                                 for the first Test Period following the Test Period in which the 3.3(b) Financial Covenant Trigger occurred, 6.50% of the reported LTM Revenue determined as of the last day of the first Test Period;

 

(b)                                 for the second Test Period following the Test Period in which the 3.3(b) Financial Covenant Trigger occurred, 6.25% of the reported LTM Revenue determined as of the last day of the second Test Period;

 

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(c)                                  for the third Test Period following the Test Period in which the 3.3(b) Financial Covenant Trigger occurred, 6.00% of the reported LTM Revenue determined as of the last day of the third Test Period;

 

(d)                                 for the fourth Test Period following the Test Period in which the 3.3(b) Financial Covenant Trigger occurred, 5.75% of the reported LTM Revenue determined as of the last day of the fourth Test Period;

 

(e)                                  for the fifth Test Period following the Test Period in which the 3.3(b) Financial Covenant Trigger occurred, 5.50% of the reported LTM Revenue determined as of the last day of the fifth Test Period;

 

(f)                                   for the sixth Test Period following the Test Period in which the 3.3(b) Financial Covenant Trigger occurred, 5.25% of the reported LTM Revenue determined as of the last day of the sixth Test Period;

 

(g)                                  for the seventh Test Period following the Test Period in which the 3.3(b) Financial Covenant Trigger occurred, 5.0% of the reported LTM Revenue determined as of the last day of the seventh Test Period;

 

(h)                                 for the eighth Test Period following the Test Period in which the 3.3(b) Financial Covenant Trigger occurred, 4.75% of the reported LTM Revenue determined as of the last day of the eighth Test Period; and

 

(i)                                     for the ninth Test Period and each Test Period thereafter following the Test Period in which the 3.3(b) Financial Covenant Trigger occurred, 4.50% of the reported LTM Revenue determined as of the last day of the ninth Test Period.

 

“Registration Rights Agreement” means that certain Registration Rights Agreement, of even date hereof, by and among the Company and the Investors, in substantially the form attached as Exhibit A hereto, as amended, modified or supplemented from time to time.

 

“Related Party” shall mean, with respect to any specified Person, such Person’s Affiliates and the directors, officers, employees, agents, trustees and advisors of such Person and any Person that possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of such Person, whether through the ability to exercise voting power, by contract or otherwise.

 

“Released Parties” has the meaning set forth in Section 5.12.

 

“Representatives” has the meaning set forth in Annex A hereto.

 

“Requisite Series A Preferred Holders” shall mean, as of any date of determination, the Holders of two thirds or more of the aggregate Modified Liquidation Preference as of such date, voting together as a separate class; provided that, from the date hereof until the Abraaj Second Payment Date (as defined in the Subscription Agreement), such amount shall be determined as if Abraaj has paid its entire Investor Initial Purchase Price (as defined in the Subscription Agreement), including, for the avoidance of doubt, the portion to be funded on the Abraaj

 

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Second Payment Date.  Notwithstanding the foregoing or the applicable provisions of the General Corporation Law of the State of Delaware, including Section 242(b) thereof, shares of Series A Preferred Stock held by the Current Stockholders (as defined in the Subscription Agreement) or any Affiliates of the Current Stockholders, if any, shall not be counted for purposes of determining whether the Requisite Series A Preferred Holders threshold has been satisfied (and shall be disregarded in the numerator and the denominator of that determination); provided, that, such restriction shall automatically terminate without any further action upon the Transfer of shares of Series A Preferred Stock by the Current Stockholders or any Affiliates of the Current Stockholders, as applicable, to an unaffiliated Third Party (as defined in the Subscription Agreement) and such unaffiliated Third Party shall be entitled to vote or consent to the actions subject to a vote or consent of the Requisite Series A Preferred Holders pursuant hereto.

 

“Restricted Transferee” has the meaning set forth in Section 2.1(c).

 

“Sale of the Company” has the meaning that the term “Sale of the Corporation” has under the Certificate of Designations.

 

“Sanctions Target” has the meaning set forth in Section 2.1(d).

 

“School” means any educational institution owned and/or operated by the Company or any of its Subsidiaries.

 

“SEC” means the Securities and Exchange Commission.

 

“Securities” means (i) the Common Stock or other equity securities (including securities convertible into equity securities), including shares of Series A Preferred Stock, issued from time to time by the Company, (ii) equity securities (including securities convertible into equity securities) issued from time to time by any Subsidiary of the Company, but only to the extent that Wengen or a Wengen Investor elects to purchase such equity securities, and (iii) debt securities issued from time to time by the Company but only to the extent that Wengen or a Wengen Investor elects to purchase such debt securities.

 

“Series A Preferred Stock” means the Series A-1 Preferred Stock and/or the Series A-2 Preferred Stock, as the context may from time to time require.

 

“Series A-1 Preferred Stock” means the Preferred Stock of the Company designated as Convertible Redeemable Preferred Stock, Series A-1, par value US$0.001 per share, together with the Series A-1 PIK Dividend Shares.

 

“Series A-2 Preferred Stock” means the Preferred Stock of the Company designated as Convertible Redeemable Preferred Stock, Series A-2, par value US$0.001 per share.

 

“Sponsor Securityholder Agreement” means the Securityholders Agreement dated as of July 11, 2007 among Wengen and the other parties thereto, as amended prior to the date hereof and as further amended from time to time.

 

“Stockholder” has the meaning set forth in the preface.

 

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“Subscription Agreement” means the subscription agreement dated as of the date hereof between the Company and the Investors, as amended, modified or supplemented from time to time.

 

“Subscription Period” has the meaning set forth in Section 2.3(a).

 

“Suspension” has the meaning set forth in Section 3.3(e).

 

“Syndication Period” shall mean six (6) months following the Closing Date.

 

“Syndication Transaction” has the meaning set forth in Section 2.5.

 

“Tag Along Equity Value” means the implied enterprise value of the Company in connection with a Tag Along Transfer pursuant to Section 2.4, (i) plus unrestricted cash of the Company and its Subsidiaries as of the closing of such Tag Along Transfer, (ii) less (a) all Indebtedness then-outstanding, and (b) transaction expenses and change of control payments incurred by or on behalf of the Company or any of its Subsidiaries in connection with such Tag Along Transfer (or which would have been incurred upon a Sale of the Company at such time), and (iii) plus or minus, as the case may be, any other amounts added or deducted, as the case may be, in calculating the price per share in such Tag Along Transfer, in each case, as determined in good faith by the Board and delivered in writing to the Holders of shares of Series A Preferred Stock prior to the closing of such Tag Along Transfer; provided that, for the avoidance of doubt, the Requisite Series A Preferred Holders may challenge whether any such value was determined by the Board in good faith and in accordance with the terms of this Agreement, and any such challenge that cannot be resolved by the parties within ten (10) Business Days shall be referred to the independent Accounting Referee for final resolution (provided that “baseball style” arbitration shall be used and the fees and expenses of the such Accounting Referee shall be borne by the party whose final calculation submitted is not selected by the Accounting Referee).

 

“Tag Along Ownership Percentage” means, as of any time of determination:

 

(a)                                 for each Investor holding shares of Series A Preferred Stock, the quotient, expressed as a percentage, obtained by dividing, (i) the number of shares of Common Stock issuable upon conversion of such shares of Series A Preferred Stock, assuming a conversion of such shares of Series  A Preferred Stock pursuant to Section 8(a)(ii) of the Certificate of Designations in connection with a Sale of the Company at an aggregate purchase price equal to the Tag Along Equity Value, divided by  (ii) the sum of (x) the total number of shares of Common Stock held (or deemed to be held pursuant to this clause (a)(i) of this paragraph) by all Tagging Stockholders, plus (y) the total number of shares of Common Stock held by the Transferring Stockholder, plus (z) the number of shares of Common Stock held by those members of management of the Company that have tag-along rights under a written agreement with the Company that is in force and effect as of the date hereof and solely to the extent such rights are exercised in connection with the applicable Tag Along Transfer; and

 

(b)                                 for each Investor holding shares of Common Stock, with respect to such shares, the quotient, expressed as a percentage, obtained by dividing (i) the number of shares of Common Stock held by such Investor as of such date, by (ii) the sum of (x) the

 

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total number of shares of Common Stock held (or deemed to be held pursuant to clause (a)(i) of this definition) by all Tagging Stockholders plus (y) the total number of shares of Common Stock held by the Transferring Stockholder.

 

“tag-along rights” has the meaning set forth in Section 2.4(a).

 

“Tag Along Transfer” has the meaning set forth in Section 2.4(a).

 

“Tag Notice” has the meaning set forth in Section 2.4(b).

 

“Tagging Stockholder” has the meaning set forth in Section 2.4(a).

 

“Test Certificates” has the meaning set forth in Section 3.3(c).

 

“Test Period” has the meaning set forth in Section 3.3(a)(ii).

 

“Test Period Delivery Date” means a date that is on or before (A) with respect to Test Periods ending on December 31, as soon as available and in any event within five (5) days after the date on which such financial statements are required to be filed with the SEC (after giving effect to any permitted extensions) (or, if such financial statements are not required to be filed with the SEC, on or before the date that is one hundred five (105) days after the end of each such fiscal year), or (B) with respect to Test Periods ending on March 31, June 30 and September 30, the date that is sixty (60) days following such date, and in any event within five (5) days after the date on which the Company’s financial statements are required to be filed with the SEC (after giving effect to any permitted extensions) (or, if such financial statements are not required to be filed with the SEC, on or before the date that is sixty (60) days after the end of each such quarterly accounting period).

 

“Third Party” has the meaning set forth in Section 2.4(a).

 

“Total Net Leverage” means, as of any date of determination, the amount determined from the quotient of (A) Indebtedness as of the last day of the Test Period or as of the last day of the test period specified in Section 3.3(a)(i), as applicable, immediately preceding such date of determination, minus any unrestricted cash appearing on the balance sheet of the Company and (B) Adjusted EBITDA for the applicable trailing twelve (12) month period ending on the last day of such Test Period or as of the last day of the test period specified in Section 3.3(a)(i), as applicable.

 

“Total Net Leverage Threshold” means, with respect to each Test Period:

 

(a)                                 for each Test Period through September 30, 2018, 4.5;

 

(b)                                 for each Test Period following September 30, 2018 through September 30, 2019, 4.0; and

 

(c)                                  for each Test Period following September 30, 2019, 3.5.

 

“Transaction Documents” has the meaning set forth in the Subscription Agreement.

 

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“Transfer” means (in either the noun or the verb form, including with respect to the verb form, all conjugations thereof within their correlative meanings) with respect to any security, the transfer, conveyance, issuance, gift, sale, assignment, pledge, hypothecation, encumbrance or creation of a security interest in or Lien on, placing in trust (voting or otherwise) or other disposition (whether for or without consideration, whether directly or indirectly, and whether voluntary, involuntary or by operation of Law) of such security or any interest therein.  The terms “Transferred”, “Transferor” and “Transferee” have correlative meaning.

 

“Transferring Stockholder” has the meaning set forth in Section 2.4(a).

 

“USGAAP” means United States generally accepted accounting principles in effect on the date of this Agreement; provided, however, that the Company may notify the Holders of the Series A Preferred Stock that the Company is eliminating the effect of any change occurring after the Initial Issue Date in GAAP or in the application thereof on the operation of any provision in this Agreement.

 

“VWAP” means, per each security on any Trading Day, the volume-weighted average price per share of such security in respect of the period from 9:30 a.m. to 4:00 p.m. (New York City time) on such Trading Day, as displayed under the heading “Bloomberg VWAP” on the Bloomberg page on which the Common Stock is listed; provided, however, that if such volume-weighted average price shall not be available on such Trading Day, then VWAP on such Trading Day shall be determined, using a volume-weighted average method, pursuant to Section 5.17

 

“Wengen” has the meaning set forth in the preface.

 

“Wengen Investor” means all Affiliates and limited partners of Wengen.

 

“World Bank” means the International Bank for Reconstruction and Development and the International Development Association.

 

“World Bank Group” means the World Bank, the Multilateral Investment Guarantee Agency and the International Centre for Settlement of Investment Disputes.

 

“World Bank Listing of Ineligible Firms” means the list, as updated from time to time, of persons or entities ineligible to be awarded a World Bank-financed contract or otherwise sanctioned by the World Bank Group sanctions board for the periods indicated on the list because they were found to have violated the fraud and corruption provisions of the World Bank Group anticorruption guidelines and policies.  The list may be found at http://www.worldbank.org/debarr or any successor website or location.

 

(c)                                  Interpretation.  Except where otherwise expressly provided or unless the context otherwise necessarily requires, in this Agreement: (i) reference to a given Article, Section, Subsection, clause, Exhibit or Schedule is a reference to an Article, Section, Subsection, clause, Exhibit or Schedule of this Agreement, unless otherwise specified; (ii) the terms “hereof”, “herein”, “hereto”, “hereunder” and “herewith” refer to this Agreement as a whole; (iii) reference to a given agreement, instrument, document or Law is a reference to that agreement, instrument, document, Law or regulation as modified, amended, supplemented and restated through the date as to which such reference was made, and, as to any Law or regulation, any

 

40

 

successor Law or regulation; (iv) accounting terms have the meanings given to them under USGAAP, and in any cases in which there exist elective options or choices in USGAAP determinations relating to the Company or any of its Subsidiaries, or where management discretion is permitted in classification, standards or other aspects of USGAAP related determinations relating to the Company or any of its Subsidiaries, the historical accounting principles and practices of the Company or such Subsidiaries, as applicable, shall continue to be applied on a consistent basis; (v) reference to a Person includes its predecessors, successors and permitted assigns and transferees; (vi) the singular includes the plural and the masculine includes the feminine, and vice versa; (vii) the words ‘include”, “includes” or “including” means “including, for example and without limitation”; and (viii) references to “days” means calendar days.

 

5.2                               Legends.

 

(a)                                 Stockholders Agreement.  Each certificate or instrument evidencing shares of Capital Stock, if any, and each certificate or instrument, if any, issued in exchange for or upon the Transfer of any such shares of Capital Stock (if such securities remain subject to this Agreement after such Transfer) shall be stamped or otherwise imprinted with a legend (as appropriately completed under the circumstances) in substantially the following form:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE CONSTITUTE SECURITIES UNDER A CERTAIN INVESTORS’ STOCKHOLDERS AGREEMENT (THE “STOCKHOLDERS AGREEMENT”) AMONG LAUREATE EDUCATION, INC. (THE “COMPANY”), THE INVESTORS AND CERTAIN OF THE COMPANY’S OTHER STOCKHOLDERS AND, AS SUCH, ARE SUBJECT TO CERTAIN VOTING PROVISIONS, PURCHASE RIGHTS AND RESTRICTIONS ON TRANSFER SET FORTH IN THE STOCKHOLDERS AGREEMENT.  A COPY OF SUCH STOCKHOLDERS AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.”

 

(b)                                 Restricted Securities. Each instrument or certificate, if any, evidencing shares of Capital Stock and each instrument or certificate, if any, issued in exchange or upon the Transfer of any shares of Capital Stock shall be stamped or otherwise imprinted with a legend substantially in the following form:

 

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY OTHER APPLICABLE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED OR OTHERWISE DISPOSED OF AT ANY TIME WITHOUT EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT AND LAWS

 

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OR EXEMPTION THEREFROM, AND COMPLIANCE WITH THE OTHER RESTRICTIONS ON TRANSFERABILITY SET FORTH HEREIN.”

 

(c)                                  Removal of Legends.  Whenever in the opinion of the Company and, if reasonably requested by the Investors pursuant to the terms hereof, the opinion of counsel reasonably satisfactory to the Company (which opinion shall be delivered to the Company in writing) the restrictions described in any legend set forth above cease to be applicable to any shares of Capital Stock, the holder thereof shall be entitled to receive from the Company, without expense to the holder, a new instrument or certificate not bearing a legend stating such restriction.

 

5.3                               Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable Law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable Law or rule in any jurisdiction, (a) such provision will be fully severable from this Agreement; and (b) this Agreement will be reformed, construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof.

 

5.4                               Entire Agreement.  Except as otherwise expressly set forth herein, this Agreement and the other Transaction Documents constitute the entire agreement among the parties hereto pertaining to the subject matters hereof and thereof, and fully supersede any and all prior or contemporaneous agreements or understandings between the parties hereto pertaining to the subject matter hereof.

 

5.5                               Successors and Assigns.  Except as otherwise provided herein, this Agreement shall bind and inure to the benefit of and be enforceable by the Company and its successors and assigns and the Stockholders and any subsequent holders of shares of Capital Stock and the respective successors and assigns of each of them, so long as they hold shares of Capital Stock.  For the avoidance of doubt, it shall be a condition to any Transfer that such Transferee agrees to be bound by this Agreement, and, upon such Transfer, such Transferee shall have the same rights and obligations as those of the transferor under this Agreement.

 

5.6                               Counterparts.  This Agreement may be executed in separate counterparts each of which shall be an original and all of which taken together shall constitute one and the same agreement.

 

5.7                               Remedies.  The Company and the parties hereto shall be entitled to enforce their rights under this Agreement specifically, to recover damages by reason of any breach of any provision of this Agreement (including costs of enforcement) and to exercise all other rights existing in their favor.

 

5.8                               Notices.  All notices, requests, demands and other communications hereunder shall be in writing and, except to the extent otherwise provided in this Agreement, shall be deemed to have been duly given on the date set forth below if delivered by same-day or next-day courier or mailed, first class postage prepaid, or transmitted by facsimile or email as described below:

 

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Company:

 

Laureate Education, Inc.

650 S. Exeter Street

Baltimore, MD  21202

Attention:  Robert W. Zentz, Senior Vice President and General Counsel

Facsimile:  (410) 843-8544

E-mail:  robert.zentz@laureate.net

 

with a copy to:

 

DLA Piper LLP (US)

6225 Smith Avenue

Baltimore, Maryland 21209

Attention:  R.W. Smith, Jr., Esq.

Telecopy:  (410) 580-3266

E-mail:  jay.smith@dlapiper.com

 

Investors:

 

to the Investors as set forth on Schedule A hereto

 

5.9                               Governing Law; Jurisdiction; Waiver of Jury Trial.

 

(a)                                             This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, United States, without giving effect to principles or rules of conflict of laws to the extent such principles or rules would require or permit the application of the laws of another jurisdiction.

 

(i)                                     The Stockholders and the Company irrevocably agree that any legal action, suit or proceeding arising out of or relating to this Agreement shall be brought against it exclusively in the Court of Chancery of the State of Delaware (or, if (and only if) the Court of Chancery of the State of Delaware declines to accept or does not have jurisdiction over a particular matter, the Superior Court of the State of Delaware or any federal court sitting in the State of Delaware).  By the execution of this Agreement, the Stockholders irrevocably submit to the exclusive jurisdiction of any such court in any such action, suit or proceeding.

 

(ii)                                  Final judgment against any of the parties in any such action, suit or proceeding shall be conclusive and may be enforced in any other jurisdiction, including the United States, by suit on the judgment, a certified or exemplified copy of which shall be conclusive evidence of the judgment, or in any other manner provided by Law.

 

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(b)                                 Each of the parties also irrevocably consents to the service of process being made by mailing copies of the papers by registered United States mail, postage prepaid, to the parties at their respective addresses specified pursuant to Section 5.8 (Notices).

 

(c)                                  Service in the manner provided in Section 5.8 in any action, suit or proceeding will be deemed personal service, will be accepted by the parties as such and will be valid and binding upon the parties for all purposes of any such action, suit or proceeding.

 

(d)                                 Each of the parties irrevocably waives to the fullest extent permitted by applicable Law:  (i) any objection which it may have now or in the future to the laying of the venue of any action, suit or proceeding in any court referred to in this Section; (ii) any claim that any such action, suit or proceeding has been brought in an inconvenient forum; and (iii) any and all rights to demand a trial by jury in any such action, suit or proceeding brought against such party.

 

(e)                                  To the extent that any of the parties may be entitled in any jurisdiction to claim for itself or its assets immunity in respect of its obligations under this Agreement from any suit, execution, attachment (whether provisional or final, in aid of execution, before judgment or otherwise) or other legal process or to the extent that in any jurisdiction that immunity (whether or not claimed) may be attributed to it or its assets, each of such parties irrevocably agrees not to claim and irrevocably waives such immunity to the fullest extent permitted now or in the future by the Laws of such jurisdiction.

 

(f)                                   To the extent that any of the parties may, in any action, suit or proceeding brought in any of the courts referred to in this Section 5.9 or a court of the United States or elsewhere arising out of or in connection with this Agreement, be entitled to the benefit of any provision of Law requiring an Investor in such action, suit or proceeding to post security for the costs of any of the parties, or to post a bond or to take similar action, each of the parties hereby irrevocably waives such benefit, in each case to the fullest extent now or in the future permitted under the laws of the United States or, as the case may be, the jurisdiction in which such court is located.

 

(g)                                  EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

5.10                        Descriptive Headings.  The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement.

 

5.11                        Further Assurances.  Each of the parties hereto covenants and agrees on behalf of itself, its successors and its assigns, without further consideration, to prepare, execute, acknowledge, file, record, publish and deliver such other instruments, documents and statements,

 

44

 

and to take such other action, as may be required by Law or reasonably necessary to effectively carry out the purposes of this Agreement and the intentions of the parties expressed herein.

 

5.12                        No Recourse.

 

(a)                                 Neither the Company nor any of its Subsidiaries shall enter into any agreement which shall provide for recourse to any Stockholder.  No recourse to (a) any assets or properties of any members, partners or shareholders of any Stockholder (or any Person that controls or controlled such member, partner or shareholder within the meaning of Section 15 of the Securities Act of 1933, as amended, or Section 20 of the Exchange Act), (b) any current or former Affiliate of any Stockholder, or (c) any former, current or future officer, director, agent, general or limited partner, member, shareholder, employee or Affiliate of the Company or any Stockholder or any former, current or future officer, director, agent, general or limited partner, member, shareholder, employee or Affiliate of the foregoing shall be had and no judgment relating to the obligations of any Stockholder under this Agreement (except to the extent that any such Person expressly is individually liable thereunder) or for any payment obligations under this Agreement (except to the extent any such Person expressly is individually liable thereunder), or any part thereof, or for any claim based thereon or otherwise in respect thereof or related thereto, shall be obtainable by the Company or any Stockholder against any direct or indirect member, partner, shareholder, incorporator, employee or Affiliate, past, present or future, of the Company or any Stockholder.

 

(b)                                 Notwithstanding anything that may be expressed or implied in this Agreement, and notwithstanding the fact that the Company and certain of the parties hereto may be partnerships or limited liability companies, the Company and each party hereto covenants, agrees and acknowledges that no recourse under this Agreement or any documents or instruments delivered in connection with this Agreement shall be had against any former, current or future directors, officers, agents, affiliates, general or limited partners, members, managers or stockholders of the Company or any party hereto or their respective Related Parties (the “Released Parties”), as such, whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any statute, regulation or other applicable Law, it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on or otherwise be incurred by any of the Released Parties, as such, for any obligation of the Company or any party hereto under this Agreement or any documents or instruments delivered in connection with this Agreement for any claim based on, in respect of or by reason of such obligations or their creation.

 

5.13                        Other Covenants.  Each Stockholder entitled to vote on matters submitted to a vote of the Stockholder, as the case may be, agrees to vote the shares of Capital Stock owned by such Stockholder upon all matters arising under this Agreement submitted to a vote of the Stockholders, as the case may be, in a manner that will implement the terms of this Agreement.

 

5.14                        Saving Rights.  No course of dealing and no failure or delay by a party hereto in exercising any power, remedy, discretion, authority or other right under this Agreement or any other agreement shall impair, or be construed to be a waiver of or an acquiescence in, that or any other power, remedy, discretion, authority or right under this Agreement, or in any manner preclude its additional or future exercise.

 

45

 

5.15                        Public Announcements.  None of the parties hereto may represent the Investors’ views on any matter or suggest or imply that the Investors are responsible or liable for any activities of the Company or any of its Subsidiaries.  Except as otherwise provided in this Section 5.15 and other than with respect to filings or notices required by Law or the Debt Documents, the Company may only reference the name and logo of an Investor and refer to the aggregate amount of Purchased Securities issued and sold pursuant hereto in (i) any presentations, materials or other disclosures prepared and/or made in connection with a Public Offering or any offering of debt securities of the Company (including in connection with roadshows and analyst meetings), or (ii) in connection with its customary marketing activities in the ordinary course of its business consistent with past practice.  Other than with respect to filings or notices required by Law or the Debt Documents, the Company may not refer to an Individual Investor Purchase Price.  Each Investor and any of its respective Affiliates may publicly disclose their participation (and solely their participation) in the transactions contemplated by this Agreement and the documents contemplated thereby, and in connection therewith may reference the name and logo of the Company.  Except with respect to filings or notices required by Law or the Debt Documents, or as otherwise provided in the second, third and fourth sentences of this Section 5.15, each of the parties hereto will cooperate with each other in the development and distribution of all news releases and other public information disclosures with respect to this Agreement and any of the transactions contemplated by this Agreement, and no party hereto will make any such news release or public disclosure without first giving prior written notice and consulting with the other parties hereto and receiving its consent (which shall not be unreasonably withheld or delayed) and each party shall coordinate with the other with respect to any such news release or public disclosure.

 

5.16                        Amendments, Waivers and Consents.

 

(a)                                 Any term of this Agreement may be amended or terminated and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only by a written instrument executed by the Company and the Requisite Series A Preferred Holders; provided, however, that any amendment or modification to Section 4.2 (Tax Matters) shall require the consent of all Investors (solely in their capacity as Investors and not otherwise); and provided, further, any amendment or modification that would affect an Investor (solely in its capacity as an Investor and not otherwise) in a material and adverse manner will be effective against the Investor so materially and adversely effected only with the prior written consent of such Investor; and provided, further, that (x) any amendment to Section 2.1(f) or (y) any amendment to Section 2.4 that would adversely affect Wengen, shall, in each case, require the prior written consent of Wengen.  Any such amendment, termination or waiver effected in accordance with this Section 5.16 shall be binding on all parties hereto, even if they do not execute such consent.  No waivers of or exceptions to any term, condition or provision of this Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision. Notwithstanding anything to the contrary in this Section 5.16, any right, privilege or preference that is expressly granted hereunder to Macquarie or Abraaj and not the other Investors, including Macquarie’s rights under Section 2.5 and Macquarie and Abraaj’s rights under Section 3.1, may be waived solely by Macquarie or Abraaj, as the case may be, in a written instrument executed by Macquarie or Abraaj, as the

 

46

 

case may be, and the terms related thereto may be amended or terminated solely pursuant to a written instrument executed by the Company and Macquarie or Abraaj, as the case may be.

 

(b)                                 Notwithstanding anything to the contrary in this Agreement, Schedule A hereto may be amended (i) by the Company from time to time to add information regarding additional Stockholders without the consent of the other parties hereto and (ii) by Macquarie, in its sole discretion and without the consent or approval of any other Person, including the Company and any other Stockholder, to reflect any Transfer that is effected in accordance with the provisions of Section 2.5 of the Agreement; provided, that, subject to Macquarie’s right under the preceding clause (ii), no Person (other than an Investor’s Transferee permitted successor or assign) may be designated as an “Investor” under this Agreement by an amendment of Schedule A by the Company or otherwise without the prior written consent of the Requisite Series A Preferred Holders.

 

5.17                        Determination of Fair Market Value.  Fair Market Value shall be determined by agreement of the Company and the Requisite Series A Preferred Holders.  If the Company and the Requisite Series A Preferred Holders fail to reach agreement on the Fair Market Value within ten (10) Business Days following the date on which such determination is required to be made pursuant to this Agreement (the “FMV Determination Date”), then the value shall be determined by an independent, nationally recognized valuation firm selected by the Company and the Requisite Series A Preferred Holders.  If the foregoing parties cannot agree on such independent, nationally recognized valuation firm within thirty (30) days following the FMV Determination Date, then the Board, on the one hand, and the Requisite Series A Preferred Holders, on the other hand, each shall select a valuation firm and such valuation firms in turn shall select a third valuation firm the appraisal of which shall be controlling.  The determination of such valuation firm (as finally selected hereunder) shall be final and binding upon the parties, and the fees and expenses of such appraiser shall be borne by the Company.

 

[SIGNATURE PAGES FOLLOW]

 

47

 

IN WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement on the day and year first above written.

 

	
 
    	
LAUREATE   EDUCATION, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Its:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WENGEN   ALBERTA, LIMITED PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
BY:   WENGEN INVESTMENTS LIMITED, ITS GENERAL PARTNER
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Its:
    	
 
    

 

[Signature Page to Stockholders Agreement]

 

 

	
 
    	
KKR   2006 FUND (OVERSEAS), LIMITED 
    
	
 
    	
PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
By: 
    	
KKR Associates 2006   (Overseas), Limited Partnership, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
KKR 2006 Limited, its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
William J. Janetschek
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
KKR   PARTNERS II (INTERNATIONAL), LIMITED PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
By: 
    	
KKR PI-II GP Limited, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
William J. Janetschek
    
	
 
    	
 
    	
Title:
    	
Director
    

 

[Signature Page to Stockholders Agreement]

 

 

	
 
    	
SNOW,   PHIPPS GROUP, LP.
    
	
 
    	
 
    
	
 
    	
By: 
    	
SPG GP, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
Ian K. Snow
    
	
 
    	
 
    	
Title: 
    	
Managing Member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
SNOW,   PHIPPS GROUP (RPV), L.P.
    
	
 
    	
 
    
	
 
    	
By: 
    	
SPG GP, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
Ian K. Snow
    
	
 
    	
 
    	
Title: 
    	
Managing Member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
SNOW,   PHIPPS GROUP (OFFSHORE), L.P.
    
	
 
    	
 
    
	
 
    	
By: 
    	
SPG GP, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
Ian K. Snow
    
	
 
    	
 
    	
Title: 
    	
Managing Member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
SNOW,   PHIPPS GROUP (B), L.P.
    
	
 
    	
 
    
	
 
    	
By: 
    	
SPG GP, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
Ian K. Snow
    
	
 
    	
 
    	
Title: 
    	
Managing Member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
S.P.G.   CO-INVESTMENT, L.P.
    
	
 
    	
 
    
	
 
    	
By: 
    	
SPG GP, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    	
Ian K. Snow
    
	
 
    	
 
    	
Title: 
    	
Managing Member
    

 

[Signature Page to Stockholders Agreement]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement on the day and year first above written.

 

	
 
    	
MACQUARIE   SIERRA INVESTMENT HOLDINGS, INC. 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
 
    
	
 
    	
 
    	
Name:   
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
 
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
Name:   
    

 

[Signature Page to Stockholders Agreement]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement on the day and year first above written.

 

	
 
    	
ABRAAJ   PLATINUM HOLDING, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Abraaj Platinum GP Limited, acting in its capacity as general partner of   Abraaj Platinum Holding, L.P. 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:   
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 Name: 
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Stockholders Agreement]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement on the day and year first above written.

 

	
 
    	
APOLLO   SPECIAL SITUATIONS FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Apollo Situations Advisors, L.P., its general partner
    
	
 
    	
By:   Apollo Special Situations Advisors GP, LLC, its general partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
 
    
	
 
    	
 
    	
Name:
    	
 Laurie D. Medley
    
	
 
    	
 
    	
Title:   
    	
Vice   President
    
					

 

[Signature Page to Stockholders Agreement]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement on the day and year first above written.

 

	
 
    	
AESI   II, L.P.  
    
	
 
    	
 
    
	
 
    	
By:   Apollo European Strategic Management, L.P., its Investment Manager
    
	
 
    	
By:   Apollo European Strategic Management GP, LLC, its General Partner 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
 
    	
 
    
	
 
    	
 
    	
Name:   
    	
Joseph   D. Glatt 
    
	
 
    	
 
    	
Title:   
    	
Vice   President
    

 

[Signature Page to Stockholders Agreement]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement on the day and year first above written.

 

	
 
    	
 
    	
 
    
	
 
    	
APOLLO   CENTRE STREET PARTNERSHIP, L.P. 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   Apollo Centre Street Advisors (APO DC), L.P., its General Partner 
    
	
 
    	
By:   Apollo Centre Street Advisors (APO DC-GP), LLC, its General Partner 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
 
    	
 
    
	
 
    	
 
    	
Name:   
    	
Joseph   D. Glatt 
    
	
 
    	
 
    	
Title:   
    	
Vice   President
    

 

[Signature Page to Stockholders Agreement]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement on the day and year first above written.

 

	
 
    	
APOLLO   ZEUS STRATEGIC INVESTMENTS, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Apollo Zeus Strategic Advisors, L.P., its General Partner
    
	
 
    	
By:   Apollo Zeus Strategic Advisors, LLC, its General Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:   
    	
Joseph   D. Glatt
    
	
 
    	
 
    	
Title:   
    	
Vice   President
    

 

[Signature Page to Stockholders Agreement]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement on the day and year first above written.

 

	
 
    	
AP   INVESTMENT EUROPE III, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Apollo Europe Management III, LLC, its Investment Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:   
    	
Joseph   D. Glatt
    
	
 
    	
 
    	
Title:    
    	
Vice   President
    

 

[Signature Page to Stockholders Agreement]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement on the day and year first above written.

 

	
 
    	
APOLLO   CREDIT OPPORTUNITY TRADING FUND III
    
	
 
    	
 
    	
 
    
	
 
    	
By:   Apollo Credit Opportunity Advisors III LP, its General Partner
    
	
 
    	
By:   Apollo Credit Opportunity Management III LLC, its Investment Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Joseph   D. Glatt
    
	
 
    	
Title:
    	
Vice   President
    

 

[Signature Page to Stockholders Agreement]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement on the day and year first above written.

 

	
 
    	
APOLLO   HERCULES PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Apollo Hercules Advisors, L.P., its General Partner
    
	
 
    	
By:   Apollo Hercules Advisors GP, LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Joseph   D. Glatt
    
	
 
    	
 
    	
Title:   
    	
Vice   President
    

 

[Signature Page to Stockholders Agreement]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement on the day and year first above written.

 

	
 
    	
APOLLO   UNION STREET PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Apollo Union Street Advisors, L.P., its General Partner
    
	
 
    	
By:   Apollo Union Street Capital Management, LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   
    	
Joseph   D. Glatt
    
	
 
    	
 
    	
Title:   
    	
Vice   President
    

 

[Signature Page to Stockholders Agreement]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement on the day and year first above written.

 

	
 
    	
APOLLO   THUNDER PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Apollo Thunder Management, LLC, its Investment Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Joseph   D. Glatt
    
	
 
    	
 
    	
Title:   
    	
Vice   President
    

 

[Signature Page to Stockholders Agreement]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement on the day and year first above written.

 

	
 
    	
APOLLO   KINGS ALLEY CREDIT FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Apollo Kings Alley Credit Advisors, L.P., its General Partner
    
	
 
    	
By:   Apollo Kings Alley Credit Capital Management, LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Joseph   D. Glatt
    
	
 
    	
 
    	
Title:   
    	
Vice   President
    

 

[Signature Page to Stockholders Agreement]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement on the day and year first above written.

 

	
 
    	
APOLLO   A-N CREDIT FUND (DELAWARE), L.P.
    
	
 
    	
 
    
	
 
    	
By:   Apollo A-N Credit Management, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:    
    	
Joseph   D. Glatt
    
	
 
    	
 
    	
Title:    
    	
Vice   President
    

 

[Signature Page to Stockholders Agreement]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement on the day and year first above written.

 

	
 
    	
APOLLO   LINCOLN PRIVATE CREDIT, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Apollo Lincoln Private Credit Management, LLC, its Investment Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to Stockholders Agreement]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement on the day and year first above written.

 

	
 
    	
APOLLO   TOWER CREDIT FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Apollo Tower Credit Advisors, LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Stockholders Agreement]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement on the day and year first above written.

 

	
 
    	
RK   GOLD (CAYMAN) HOLDINGS, L.P.
    
	
 
    	
 
    
	
 
    	
By:   CFIG (Cayman) Holdings Limited, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Stockholders Agreement]

 

 

Annex A

Confidentiality Provisions

 

1.             (A)          Subject to paragraph (C) below, all (i) written information about the Company furnished by the Company (I) to any Investor that is clearly and conspicuously identified as “Confidential Information,” and (II) to the Non-Voting Committee Observer at a KKR Board meeting is referred to herein as “Data.”  The Company shall submit to an Investor information identified as “Confidential Information” only if it in good faith reasonably believes that such information is in fact confidential.

 

(B)          Each Investor agrees to hold the Data in confidence.  Each Investor will not reveal any Data to any person without the consent of the Company, which consent shall not be unreasonably delayed, withheld or conditioned, other than to officers, directors, employees, attorneys, independent auditors, rating agencies, contractors, consultants (including, by way of example, technical and financial advisors) of such Investor and its Affiliates (such Persons receiving Data, collectively, “Representatives”) who are deemed appropriate by the Investor in its reasonable judgment; provided, however, that to the extent that any of the Representatives is not an employee of such Investor, prior to furnishing Data to such Representative, such Investor will inform such Representative about the confidential nature of the Data to be disclosed; and cause such Representative that will receive the Data from such Investor to enter into a confidentiality agreement with provisions substantially the same as those set forth herein.  Additionally, any Investor shall be allowed to disclose any Data to potential purchasers and their Representatives relating to a potential sale of all or part of the Securities held by such Investor; provided, further, that, prior to furnishing Data to such persons, such Investor shall cause the potential purchasers that will receive the Data from such Investor to enter into a confidentiality agreement with provisions substantially the same as those set forth herein.

 

(C)          The term “Data” shall not apply to information which:

 

(i)                                     is or becomes available to the public other than as a result of a disclosure in violation of the provisions set forth herein;

 

(ii)                                  was available to an Investor prior to its disclosure to such Investor by the Company under this Agreement;

 

(iii)                               was or is developed by an Investor independently of, and without reference to, the Data;

 

(iv)                              is required to be disclosed by action of any court, tribunal, regulatory authority, self-regulatory organization or by any requirement of law, legal process, regulation, or governmental order, decree or rule or necessary or desirable for an Investor to disclose in connection with any proceeding in any court, tribunal or before any regulatory authority in order to preserve its rights;

 

(v)                                 the Company agrees may be disclosed; or

 

 

(vi)                              is or becomes available to an Investor from sources which to such Investor’s knowledge are under no obligation of confidentiality to the Company.

 

2.             Except in connection with the agreement of the Investor expressly contained herein to keep Data confidential, an Investor shall not incur any liability or obligation to the Company by reason of or arising out of such Investor’s inspection and evaluation of the Data.  An Investor will not be liable for any loss, cost, liability or other claim in connection with the Data beyond reasonably foreseeable losses and will not be liable for lost profits or consequential or punitive damages.

 

3.             An Investor’s obligation of confidentiality set forth herein with respect to any Data disclosed to it shall expire two (2) years after the disclosure of such Data to such Investor.

 

 

Schedule A

List of Investors

 

	
Name and Address of Investor
    	
 
    	
Type and Number of
   Securities
    	
 
    	
Purchase Price
    
	
Macquarie Sierra Investment Holdings Inc.
   125 W 55th Street, Level 17
   New York, New York 10019
   Attention: MacCap Legal and Melissa Toomey
   E-mail: ibgcflegalna@macquarie.com; Melissa.Toomey@macquarie.com

 

with a copy to:

 

Goodwin Procter LLP
   The New York Times Building
   620 Eighth Avenue
   New York, NY 10018
   Attention: Ilan Nissan, Paul Cicero and Oreste Cipolla
   Telecopy: +1 212 202 6392
   E-mail: INissan@Goodwinlaw.com;

PCicero@Goodwinlaw.com;

OCipolla@Goodwinlaw.com
    	
 
    	
23,000 shares of Series A-1 Preferred Stock
    	
 
    	
$
    	
23,000,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
AESI II, L.P.
   One Manhattanville Road, Suite 201
   Purchase, NY 10577
   Attention: Joseph D. Glatt
   E-mail: jglatt@apollolp.com
    
    with a copy to:
    
   Paul, Weiss, Rifkind, Wharton & Garrison LLP
   1285 Avenue of the Americas
   New York, NY 10019-6064
   Attention: Brian Finnegan and Tracey Zaccone
   Telecopy: +1 212 373 3000
   E-mail:  Bfinnegan@paulweiss.com;

Tzaccone@paulweiss.com
    	
 
    	
2,367.285 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
2,367,285
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Apollo Centre Street Partnership, L.P.
   One Manhattanville Road, Suite 201
   Purchase, NY 10577
    	
 
    	
6,554.247 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
6,554,247
    

 

i

 

	
Attention: Joseph D. Glatt
   E-mail: jglatt@apollolp.com

 

with a copy to:

 

Paul, Weiss, Rifkind, Wharton & Garrison   LLP
   1285 Avenue of the Americas
   New York, NY 10019-6064
   Attention: Brian Finnegan and Tracey Zaccone
   Telecopy: +1 212 373 3000
   E-mail:  Bfinnegan@paulweiss.com;

Tzaccone@paulweiss.com
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Apollo Zeus Strategic Investments, L.P.
   One Manhattanville Road, Suite 201
   Purchase, NY 10577
   Attention: Joseph D. Glatt
   E-mail: jglatt@apollolp.com
    
    with a copy to:
    
   Paul, Weiss, Rifkind, Wharton & Garrison LLP
   1285 Avenue of the Americas
   New York, NY 10019-6064
   Attention: Brian Finnegan and Tracey Zaccone
   Telecopy: +1 212 373 3000
   E-mail:  Bfinnegan@paulweiss.com;

Tzaccone@paulweiss.com
    	
 
    	
3,528.554 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
3,528,554
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Credit Opportunity Trading Fund III
   One Manhattanville Road, Suite 201
   Purchase, NY 10577
   Attention: Joseph D. Glatt
   E-mail: jglatt@apollolp.com
    
    with a copy to:
    
   Paul, Weiss, Rifkind, Wharton & Garrison LLP
   1285 Avenue of the Americas
   New York, NY 10019-6064
   Attention: Brian Finnegan and Tracey Zaccone
   Telecopy: +1 212 373 3000
   E-mail:  Bfinnegan@paulweiss.com;
    	
 
    	
29,200.064 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
29,200,064
    

 

ii

 

	
Tzaccone@paulweiss.com
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
AP Investment Europe III, L.P.
   9 West 57th Street, 43rd Floor
   New York, NY 10019
   Attention: Joseph D. Glatt
   E-mail: jglatt@apollolp.com
    
    with a copy to:
    
   Paul, Weiss, Rifkind, Wharton & Garrison LLP
   1285 Avenue of the Americas
   New York, NY 10019-6064
   Attention: Brian Finnegan and Tracey Zaccone
   Telecopy: +1 212 373 3000
   E-mail:  Bfinnegan@paulweiss.com;

Tzaccone@paulweiss.com
    	
 
    	
2,931.087 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
2,931,087
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Apollo Hercules Partners, L.P.
   One Manhattanville Road, Suite 201
   Purchase, NY 10577
   Attention: Joseph D. Glatt
   E-mail: jglatt@apollolp.com
    
    with a copy to:
    
   Paul, Weiss, Rifkind, Wharton & Garrison LLP
   1285 Avenue of the Americas
   New York, NY 10019-6064
   Attention: Brian Finnegan and Tracey Zaccone
   Telecopy: +1 212 373 3000
   E-mail:  Bfinnegan@paulweiss.com;

Tzaccone@paulweiss.com
    	
 
    	
2,620.847 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
2,620,847
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Apollo Union Street Partners, L.P.
   One Manhattanville Road, Suite 201
   Purchase, NY 10577
   Attention: Joseph D. Glatt
   E-mail: jglatt@apollolp.com
    
    with a copy to:
    
   Paul, Weiss, Rifkind, Wharton & Garrison LLP
    	
 
    	
1,905.419 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
1,905,419
    

 

iii

 

	
1285 Avenue of the Americas
   New York, NY 10019-6064
   Attention: Brian Finnegan and Tracey Zaccone
   Telecopy: +1 212 373 3000
   E-mail:  Bfinnegan@paulweiss.com; Tzaccone@paulweiss.com
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Apollo Thunder Partners, L.P.
   One Manhattanville Road, Suite 201
   Purchase, NY 10577
   Attention: Joseph D. Glatt
   E-mail: jglatt@apollolp.com
    
    with a copy to:
    
   Paul, Weiss, Rifkind, Wharton & Garrison LLP
   1285 Avenue of the Americas
   New York, NY 10019-6064
   Attention: Brian Finnegan and Tracey Zaccone
   Telecopy: +1 212 373 3000
   E-mail:  Bfinnegan@paulweiss.com; Tzaccone@paulweiss.com
    	
 
    	
2,184.039 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
2,184,039
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Apollo Kings Alley Credit Fund, L.P.
   One Manhattanville Road, Suite 201
   Purchase, NY 10577
   Attention: Joseph D. Glatt
   E-mail: jglatt@apollolp.com
    
    with a copy to:
    
   Paul, Weiss, Rifkind, Wharton & Garrison LLP
   1285 Avenue of the Americas
   New York, NY 10019-6064
   Attention: Brian Finnegan and Tracey Zaccone
   Telecopy: +1 212 373 3000
   E-mail:  Bfinnegan@paulweiss.com; Tzaccone@paulweiss.com
    	
 
    	
2,185.317 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
2,185,317
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Apollo Lincoln Private Credit, L.P.
   One Manhattanville Road, Suite 201
   Purchase, NY 10577
   Attention: Joseph D. Glatt
   E-mail: jglatt@apollolp.com
    	
 
    	
2,130.770 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
2,130,770
    

 

iv

 

	
with a copy to:
    
   Paul, Weiss, Rifkind, Wharton & Garrison LLP
   1285 Avenue of the Americas
   New York, NY 10019-6064
   Attention: Brian Finnegan and Tracey Zaccone
   Telecopy: +1 212 373 3000
   E-mail:  Bfinnegan@paulweiss.com;

Tzaccone@paulweiss.com
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Apollo A-N Credit Fund (Delaware), L.P.
   One Manhattanville Road, Suite 201
   Purchase, NY 10577
   Attention: Joseph D. Glatt
   E-mail: jglatt@apollolp.com
    
    with a copy to:
    
   Paul, Weiss, Rifkind, Wharton & Garrison LLP
   1285 Avenue of the Americas
   New York, NY 10019-6064
   Attention: Brian Finnegan and Tracey Zaccone
   Telecopy: +1 212 373 3000
   E-mail:  Bfinnegan@paulweiss.com;

Tzaccone@paulweiss.com
    	
 
    	
2,352.370 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
2,352,370
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Apollo Tower Credit Fund, L.P.
   One Manhattanville Road, Suite 201
   Purchase, NY 10577
   Attention: Joseph D. Glatt
   E-mail: jglatt@apollolp.com
    
    with a copy to:
    
   Paul, Weiss, Rifkind, Wharton & Garrison LLP
   1285 Avenue of the Americas
   New York, NY 10019-6064
   Attention: Brian Finnegan and Tracey Zaccone
   Telecopy: +1 212 373 3000
   E-mail:  Bfinnegan@paulweiss.com;

Tzaccone@paulweiss.com
    	
 
    	
5,540.001 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
5,540,001
    

 

v

 

	
Apollo Special Situations Fund, L.P.
   c/o Apollo Special Situations Advisors, L.P.
   One Manhattanville, Suite 201
   Purchase, NY 10577
   Attn: General Counsel
    
    with a copy to:
    
   Paul, Weiss, Rifkind, Wharton & Garrison LLP
   1285 Avenue of the Americas
   New York, NY 10019-6064
   Attention: Brian Finnegan and Tracey Zaccone
   Telecopy: +1 212 373 3000
   E-mail:  Bfinnegan@paulweiss.com;

Tzaccone@paulweiss.com
    	
 
    	
63,500.000 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
63,500,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
RK Gold (Cayman) Holdings, L.P.
   c/o GCM Customized Fund Investment Group, L.P
   767 Fifth Avenue, 14th Floor
   New York, NY 10153
   Attention: General Counsel
   E-mail: legal@gcmlp.com
    
    with a copy to:
    
   Gibson, Dunn & Crutcher LLP
   200 Park Avenue
   New York, NY 10166-0193
   Attention: Edward Sopher and Glenn Pollner
   Telecopy: +1 212 351 4000
   E-mail:  ESopher@gibsondunn.com;

GPollner@gibsondunn.com
    	
 
    	
48,000 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
48,000,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Abraaj Platinum Holding, L.P.
   The Abraaj Group
   Pedregal 24-801B
   Molino del Rey, 11040
   Mexico City, Mexico
   Attention: Miguel Olea and Eduardo Cortina
   Telecopy: +52 55 9178 9010
   E-mail: miguel.olea@abraaj.com;

eduardo.cortina@abraaj.com
    	
 
    	
127,000 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
127,000,000
    

 

vi

 

	
with a copy to:
    
   Weil, Gotshal & Manges LLP
   100 Federal Street, 34th Floor
   Boston, MA 02110-1802
   Attention: Shayla Harlev
   Telecopy: +1 617 772 8300
   E-mail: Shayla.Harlev@weil.com
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
KKR 2006 Fund (Overseas), Limited Partnership
   c/o Kohlberg Kravis Roberts & Co.
   9 West 57th St., Suite 4200
   New York, NY 10019
   Attention: General Counsel
   Facsimile: +1 212 750 0003
    
    with a copy to:
    
   Kirkland & Ellis LLP
   601 Lexington Avenue
   New York, NY 10022
   Attention: Sean D. Rodgers, P.C.
   Telecopy: +1 212 446 4800
   E-mail:  Sean.rodgers@kirkland.com
    	
 
    	
59,350.000 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
59,350,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
KKR Partners (International), Limited Partnership
   Kohlberg Kravis Roberts & Co.
   9 West 57th St., Suite 4200
   New York, NY 10019
   Attention: General Counsel
   Facsimile: +1 212 750 0003
    
    with a copy to:
    
   Kirkland & Ellis LLP
   601 Lexington Avenue
   New York, NY 10022
   Attention: Sean D. Rodgers, P.C.
   Telecopy: +1 212 446 4800
   E-mail:  Sean.rodgers@kirkland.com
    	
 
    	
650.000 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
650,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Snow, Phipps Group, LP.
   667 Madison Avenue, 18th Floor
   New York, NY 10021
    	
 
    	
13,669.987 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
13,669,987
    

 

vii

 

	
Attention: Ian K. Snow
   Telecopy:
   E-mail: isnow@spgpartners.com
    
    with a copy to:
    
   Kirkland & Ellis LLP
   601 Lexington Avenue
   New York, NY 10022
   Attention: Sean D. Rodgers, P.C.
   Telecopy: +1 212 446 4800
   E-mail:  Sean.rodgers@kirkland.com
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
S.P.G. Co-Investment, L.P.
   667 Madison Avenue, 18th Floor
   New York, NY 10021
   Attention: Ian K. Snow
   Telecopy:
   E-mail: isnow@spgpartners.com
    
    with a copy to:
    
   Kirkland & Ellis LLP
   601 Lexington Avenue
   New York, NY 10022
   Attention: Sean D. Rodgers, P.C.
   Telecopy: +1 212 446 4800
   E-mail:  Sean.rodgers@kirkland.com
    	
 
    	
45 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
45,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Snow, Phipps Group (B), L.P.
   667 Madison Avenue, 18th Floor
   New York, NY 10021
   Attention: Ian K. Snow
   Telecopy:
   E-mail: isnow@spgpartners.com
    
    with a copy to:
    
   Kirkland & Ellis LLP
   601 Lexington Avenue
   New York, NY 10022
   Attention: Sean D. Rodgers, P.C.
   Telecopy: +1 212 446 4800
   E-mail:  Sean.rodgers@kirkland.com
    	
 
    	
131.324 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
131,324.17
    

 

viii

 

	
Snow, Phipps Group (Offshore), L.P.
   667 Madison Avenue, 18th Floor
   New York, NY 10021
   Attention: Ian K. Snow
   Telecopy:
   E-mail: isnow@spgpartners.com
    
    with a copy to:
    
   Kirkland & Ellis LLP
   601 Lexington Avenue
   New York, NY 10022
   Attention: Sean D. Rodgers, P.C.
   Telecopy: +1 212 446 4800
   E-mail:  Sean.rodgers@kirkland.com
    	
 
    	
441.838 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
441,838.33
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Snow, Phipps Group (RPV), L.P.
   667 Madison Avenue, 18th Floor
   New York, NY 10021
   Attention: Ian K. Snow
   Telecopy:
   E-mail: isnow@spgpartners.com
    
    with a copy to:
    
   Kirkland & Ellis LLP
   601 Lexington Avenue
   New York, NY 10022
   Attention: Sean D. Rodgers, P.C.
   Telecopy: +1 212 446 4800
   E-mail:  Sean.rodgers@kirkland.com
    	
 
    	
711.851 shares of Series A-2 Preferred Stock
    	
 
    	
$
    	
711,850.64
    

 

ix

 

Schedule 2.1(d)

Restricted Transferees

 

[See attached]

 

x

 

Exhibit A

Registration Rights Agreement

 

[See Attached]

 

xi

 

Exhibit B-1

2016-Based Test Period Certificate

 

[See Attached]

 

xii

 

Exhibit B-2

2017 Trigger Certificate

 

[See Attached]

 

xiii

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