Document:

secondamendmenttotherece

745095982 21671763  SECOND AMENDMENT  TO THE  RECEIVABLES FINANCING AGREEMENT  This SECOND AMENDMENT TO THE RECEIVABLES FINANCING AGREEMENT  (this “Amendment”), dated as of December 10, 2021, is entered into by and among the following  parties:  (i) ADT FINANCE LLC, a Delaware limited liability company, as Borrower  (the “Borrower”) and as Buyer (the “Buyer”); and  (ii) MIZUHO BANK, LTD. (“Mizuho”), as Administrative Agent, Arranger,  Collateral Agent, and Structuring Agent;   (iii) ADT LLC, a Delaware limited liability company (“ADT”), in its individual  capacity and as initial Servicer (in such capacity, the “Servicer”) and as Originator (in such  capacity, the “Originator”);  (iv) Mizuho, as a Lender and Group Agent;  (v) MUFG BANK, LTD. (“MUFG”), as a Lender and Group Agent (in such  capacities, together, the “MUFG Group”);  (vi) STARBIRD FUNDING CORPORATION (“Starbird”), as a Conduit  Lender; and  (vii) BNP PARIBAS (“BNPP”), as a Lender and Group Agent for itself and  Starbird (Starbird, as a Conduit Lender, and BNPP, as Starbird’s Related Lender and as a  Group Agent, shall constitute the “BNPP Group”).  PRELIMINARY STATEMENTS  1. The parties hereto are parties to that certain Receivables Financing Agreement,  dated as of July 16, 2021 (as heretofore amended, supplemented or otherwise modified from time  to time, the “Receivables Financing Agreement”).  2. The parties hereto desire to amend the Receivables Financing Agreement as set  forth herein.   In consideration of the premises herein contained and for other good and valuable  consideration, the receipt and adequacy of which the parties hereto hereby acknowledge, the  parties hereto agree as follows:  Section 1. Definitions.  Capitalized terms used herein and not otherwise defined herein  shall have the respective meanings assigned thereto in the Receivables Financing Agreement, and  

 

2  745095982 21671763  the interpretive rules set forth in Section 1.02 of the Receivables Financing Agreement shall apply  to this Amendment.  Section 2. Amendment to the Receivables Financing Agreement. The Receivables  Financing Agreement is hereby amended as follows effective as of November 30, 2021:  (a) Section 1.01 of the Receivables Financing Agreement is amended so that  the definition of “Excess CCTV Concentration Amount” therein is amended to read in its entirety  as follows:  “Excess CCTV Concentration Amount” means, as of any date of  determination, the amount, if any by which (a) the aggregate Financed  Unpaid Balances of all Eligible Receivables in the Receivable Pool which  relate to the “CCTV” Product Type, as of such date of determination,  exceeds (b) 4.00% of the aggregate Financed Unpaid Balances of all  Eligible Receivables in the Receivable Pool, as of such date of  determination.  Section 3. Representations and Warranties. On the date hereof, each of the Borrower  and ADT hereby represents and warrants (solely as to itself) to the Credit Parties as follows:  (a) after giving effect to this Amendment, no event or condition has occurred  and is continuing which constitutes an Event of Termination or Unmatured Event of Termination;  (b) after giving effect to this Amendment, the representations and warranties of  such Person set forth in the Receivables Financing Agreement and each other Transaction  Document to which it is party are true and correct as of the date hereof, as though made on and as  of such date (except to the extent such representations and warranties relate solely to an earlier  date and then as of such earlier date); and  (c) this Amendment constitutes the valid and binding obligation of such Person,  enforceable against such Person in accordance with its terms.  Section 4. Condition to Effectiveness of this Amendment.  This Amendment shall  become effective as of the date hereof upon receipt by the Administrative Agent of counterparts  of this Amendment, duly executed by each of the parties hereto.  Section 5. Miscellaneous.  (a) Effect of Amendment; Ratification.  Except as specifically set forth herein,  the Receivables Financing Agreement (as amended hereby) is hereby ratified and confirmed in all  respects, and all of its provisions shall remain in full force and effect. After this Amendment  becomes effective, all references in any Transaction Document to the Receivables Financing  Agreement, including by reference, as applicable, to “this Agreement”, “hereof”, “herein”, or  words of similar effect, shall be deemed to be references to the Receivables Financing Agreement,  as amended hereby.  This Amendment shall not be deemed to expressly or impliedly waive, amend,  or supplement any provision of the Receivables Financing Agreement or any other Transaction  Document other than as specifically set forth herein.   

 

3  745095982 21671763  (b) Counterparts; Delivery. This Amendment may be executed in any number  of counterparts and by the different parties hereto in separate counterparts, each of which when so  executed shall be deemed to be an original and all of which when taken together shall constitute  one and the same agreement.  Delivery of an executed counterpart hereof by facsimile or other  electronic means shall be equally effective as delivery of an originally executed counterpart.  The  words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to  any document to be signed in connection with this Amendment and the transactions contemplated  hereby shall be deemed to include an electronic sound, symbol, or process attached to, or  associated with, a contract or other record and adopted by a Person with the intent to sign,  authenticate or accept such contract or record, deliveries or the keeping of records in electronic  form (provided that no electronic signatures may be affixed through the use of a third-party service  provider), each of which shall be of the same legal effect, validity or enforceability as a manually  executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as  the case may be, to the extent and as provided for in any applicable law, including the Federal  Electronic Signatures in Global and National Commerce Act, the New York State Electronic  Signatures and Records Act, or any other similar state laws based on the Uniform Electronic  Transactions Act.  (c) Severability.  Any provisions of this Amendment which are prohibited or  unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such  prohibition or unenforceability without invalidating the remaining provisions hereof, and any such  prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such  provision in any other jurisdiction.  (d) Captions. The various captions in this Amendment are provided solely for  convenience of reference and shall not affect the meaning or interpretation of any provision of this  Amendment, the Receivables Financing Agreement or any other Transaction Document.   (e) GOVERNING LAW. THIS AMENDMENT, INCLUDING THE RIGHTS  AND DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND  CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK  (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF  THE STATE OF NEW YORK, BUT WITHOUT REGARD TO ANY OTHER CONFLICTS OF  LAW PROVISIONS THEREOF, EXCEPT TO THE EXTENT THAT THE PERFECTION, THE  EFFECT OF PERFECTION OR PRIORITY OF THE INTERESTS OF THE COLLATERAL  AGENT, THE ADMINISTRATIVE AGENT, OR ANY LENDER IN THE COLLATERAL IS  GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW  YORK)   (f) WAIVER OF TRIAL BY JURY.  EACH PARTY HERETO HEREBY  EXPRESSLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR  PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AMENDMENT OR  THE RECEIVABLES FINANCING AGREEMENT, ANY OTHER TRANSACTION  DOCUMENT, OR UNDER ANY AMENDMENT, INSTRUMENT, OR DOCUMENT  DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION  HEREWITH OR ARISING FROM ANY BANKING OR OTHER RELATIONSHIP EXISTING  IN CONNECTION WITH THIS AMENDMENT, THE RECEIVABLES FINANCING  

 

4  745095982 21671763  AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT AND AGREES THAT ANY  SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT A  JURY.  (Signature Pages Follow)  

 

 

 

S-2 2nd Amendment to   Receivables Financing Agreement   745095982 21671763  MIZUHO BANK, LTD.,  as Administrative Agent  By:  Name:  Title:  MIZUHO BANK, LTD.,  as Group Agent for the Mizuho Group  By:  Name:  Title:  MIZUHO BANK, LTD.,  as a Lender  By:  Name:  Title:  MIZUHO BANK, LTD.,  as Structuring Agent  By:  Name:  Title:  MIZUHO BANK, LTD.,  as Collateral Agent  By:  Name:  Title:  

 

 

 

S-4 2nd Amendment to   Receivables Financing Agreement   745095982 21671763 BNP PARIBAS, as a Lender and as a Group Agent By: Name: Title: By: Name: Title: STARBIRD FUNDING CORPORATION, as Lender By: Name: Title: Chris Fukuoka Director Advait Joshi Directora2018-12x14arstockholder

Doc#: US1:12158454v2  AMENDED AND RESTATED  STOCKHOLDERS AGREEMENT  by and among  ADT INC.  and  THE OTHER PARTIES HERETO  _________________________________  Dated as of December 14, 2018  __________________________________  

 

i  Doc#: US1:12158454v2  TABLE OF CONTENTS  Page  ARTICLE I. INTRODUCTORY MATTERS ................................................................................ 1  1.1  Defined Terms ..................................................................................................... 1  1.2  Construction ......................................................................................................... 4  ARTICLE II. BOARD OF DIRECTORS ....................................................................................... 4  2.1  Election of Directors ............................................................................................ 4  ARTICLE III. INFORMATION ..................................................................................................... 6  3.1  Books and Records; Access ................................................................................. 6  3.2  Sharing of Information......................................................................................... 7  ARTICLE IV. OTHER RIGHTS .................................................................................................... 7  4.1  Consent to Certain Actions. ................................................................................. 7  ARTICLE V. GENERAL PROVISIONS....................................................................................... 8  5.1  Termination .......................................................................................................... 8  5.2  Notices ................................................................................................................. 8  5.3  Amendment; Waiver ............................................................................................ 9  5.4  Further Assurances .............................................................................................. 9  5.5  Assignment ........................................................................................................ 10  5.6  Third Parties ....................................................................................................... 10  5.7  Governing Law .................................................................................................. 10  5.8  Jurisdiction; Waiver of Jury Trial ...................................................................... 10  5.9  Specific Performance ......................................................................................... 10  5.10  Entire Agreement ............................................................................................... 10  5.11  Severability ........................................................................................................ 11  5.12  Table of Contents, Headings and Captions ........................................................ 11  5.13  Counterparts ....................................................................................................... 11  5.14  Effectiveness ...................................................................................................... 11  5.15  No Recourse ....................................................................................................... 11  

 

Doc#: US1:12158454v2  AMENDED AND RESTATED  STOCKHOLDERS AGREEMENT  This Stockholders Agreement is entered into as of December 14, 2018 by  and among ADT Inc., a Delaware corporation (the “Company”), and each of the other  parties identified on the signature pages hereto (the “Holders”.  RECITALS:  A. WHEREAS, the Company and certain other Persons entered into that certain Stockholders Agreement, dated as of January 23, 2018 (the “Prior Agreement”.  B. WHEREAS, Section 5.3 of the Prior Agreement provided that the Prior  Agreement could be amended by a written instrument executed by the Company and the other  Persons party thereto.  C. WHEREAS, the Company and the other Persons party to the Prior  Agreement have executed a written instrument whereby each has agreed to amend, restate and  supersede the Prior Agreement, as set forth herein, and such amendment and restatement has  been approved by the Board (as defined herein.   NOW, THEREFORE, the parties agree as follows:  ARTICLE I.  INTRODUCTORY MATTERS  1.1 Defined Terms.  In addition to the terms defined elsewhere herein, the  following terms have the following meanings when used herein with initial capital letters:  “Affiliate” means, with respect to any Person, (a) any Person that, directly or  indirectly, through one or more intermediaries, controls, or is controlled by, or is under common  control with, such Person, or (b) any Person who is a general partner, partner, managing director,  manager, officer, director or principal of the specified Person.  Notwithstanding the foregoing,  except with respect to Section 5.15 and the definitions of  “Apollo Entities”, “Related Entities”,  “Related Party” and “Related Parties”, none of the Apollo Entities or the Related Entities shall be  considered an Affiliate of (i) any portfolio company in which the Apollo Entities or the Related  Entities or any of their investment fund affiliates have made a debt or equity investment (and  vice versa), (ii) any limited partners, non-managing members of, or other similar direct or  indirect investors in, the Apollo Entities or the Related Entities or any of their respective  affiliates (and vice versa) or (iii) any portfolio company in which any limited partner, non- managing member of, or other similar direct or indirect investor in the Apollo Entities or the  Related Entities any of their respective affiliates have made a debt or equity investment (and vice  versa), and none of the Persons described in clauses (i) through (iii) of this definition shall be  considered an Affiliate of each other.  

 

2  Doc#: US1:12158454v2  “Agreement” means this Amended and Restated Stockholders Agreement, as the  same may be amended, supplemented, restated or otherwise modified from time to time in  accordance with the terms hereof.  “Apollo Designee” has the meaning set forth in Section 2.1(b).  “Apollo Entities” means TopCo Parent, its Affiliates that are beneficially owned  by Apollo Global Management, LLC and TopCo Parent’s and such Affiliates’ respective  successors and Permitted Assigns.  “beneficially own” has the meaning set forth in Rule 13d-3 promulgated under the  Exchange Act.  “Board” means the board of directors of the Company.  “Business Day” means a day other than a Saturday, Sunday, federal or New York  State holiday or other day on which commercial banks in New York City are authorized or  required by law to close.  “Bylaws” means the Amended and Restated Bylaws of the Company, as the same  may be amended and/or restated from time to time.  “Charter” means the Amended and Restated Certificate of Incorporation of the  Company, as the same may be amended and/or restated from time to time.  “Common Stock” means the shares of common stock, par value $0.01 per share,  of the Company, and any other capital stock of the Company into which such stock is  reclassified or reconstituted and any other common stock of the Company.  “Company” has the meaning set forth in the Preamble.  “control” (including its correlative meanings, “controlled by” and “under common  control with”) means possession, directly or indirectly, of the power to direct or cause the  direction of the management or policies (whether through ownership of securities or any  partnership or other ownership interest, by contract or otherwise) of a Person.  “Director” means any member of the Board.  “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the  rules and regulations promulgated thereunder, as the same may be amended from time to time.  “Governmental Authority” means any nation or government, any state or other  political subdivision thereof, and any entity exercising executive, legislative, judicial, regulatory  or administrative functions of or pertaining to government.  “Holders” has the meaning set forth in the Preamble.  

 

3  Doc#: US1:12158454v2  “Law” means any statute, law, regulation, ordinance, rule, injunction, order,  decree, governmental approval, directive, requirement, or other governmental restriction or any  similar form of decision of, or determination by, or any interpretation or administration of any of  the foregoing by, any Governmental Authority.  “Permitted Assigns” means with respect to a Related Entity, a Transferee of  shares of Common Stock that agrees to become party to, and to be bound to the same extent as  its Transferor by the terms of, this Agreement.  “Person” means an individual, a partnership, a corporation, a limited liability  company, an association, a joint stock company, a trust, a joint venture, an unincorporated  organization, or other form of business organization, whether or not regarded as a legal entity  under applicable Law, or any Governmental Authority or any department, agency or political  subdivision thereof.  “Related Entities” means TopCo Parent, its Affiliates and its and its Affiliates’  respective successors and Permitted Assigns.  “Subsidiary” means, with respect to any Person, any corporation, limited liability  company, partnership, association or other business entity of which: (i) if a corporation, a  majority of the total voting power of shares of stock entitled to vote in the election of directors,  representatives or trustees thereof is at the time owned or controlled, directly or indirectly, by  that Person or one or more of the other Subsidiaries of that Person or a combination thereof; or  (ii) if a limited liability company, partnership, association or other business entity, a majority of the total voting power of stock (or equivalent ownership interest) of the limited liability company, partnership, association or other business entity is at the time owned or controlled, directly or indirectly, by any Person or one or more Subsidiaries of that Person or a combination thereof.  For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity if such Person or Persons shall be allocated a majority of limited liability company, partnership, association or other business entity gains or losses or shall be or control the managing member, managing director or other governing body or general partner of such limited liability company, partnership, association or other business entity. “TopCo Parent” means Prime Security Services TopCo Parent, L.P., a Delaware  limited partnership.  “Total Number of Directors” means the total number of directors constituting the  Board.  “Transfer” (including its correlative meanings, “Transferor”, “Transferee” and  “Transferred”) shall mean, with respect to any security, directly or indirectly, to sell, contract to  sell, give, assign, hypothecate, pledge, encumber, grant a security interest in, offer, sell any  option or contract to purchase, purchase any option or contract to sell, grant any option, right or  warrant to purchase, lend or otherwise transfer or dispose of any economic, voting or other rights  in or to such security.  When used as a noun, “Transfer” shall have such correlative meaning as  the context may require.  

 

4  Doc#: US1:12158454v2  1.2 Construction.  Interpretation of this Agreement shall be governed by the  following rules of construction.  Unless the context otherwise requires: (a) references to the  terms Article, Section, paragraph and Exhibit are references to the Articles, Sections, paragraphs  and Exhibits to this Agreement unless otherwise specified; (b) the terms “hereof,” “herein,”  “hereby,” “hereto,” and derivative or similar words refer to this entire Agreement, including  Exhibits hereto; (c) references to “$” or “Dollars” shall mean United States dollars; (d) the words  “include,” “includes,” “including” and words of similar import when used in this Agreement  shall mean “including without limitation,” unless otherwise specified; (e) the word “or” shall not  be exclusive; (f) references to “written” or “in writing” include in electronic form; (g) provisions  shall apply, when appropriate, to successive events and transactions; (h) the headings contained  in this Agreement are for reference purposes only and shall not affect in any way the meaning or  interpretation of this Agreement; (i) each of TopCo Parent and the Holders has participated in the  negotiation and drafting of this Agreement and if an ambiguity or question of interpretation  should arise, this Agreement shall be construed as if drafted jointly by the parties thereto and no  presumption or burden of proof shall arise favoring or burdening either party by virtue of the  authorship of any of the provisions in this Agreement; (j) a reference to any Person includes such  Person’s permitted successors and assigns; (k) references to “days” mean calendar days unless  Business Days are expressly specified; (l) the word “will” shall be construed to have the same  meaning and effect as the word “shall”; (m) the terms “party”, “party hereto”, “parties” and  “party hereto” shall mean a party to this Agreement and the parties to this Agreement, as  applicable, unless otherwise specified; (n) with respect to the determination of any period of  time, “from” means “from and including”; and (o) any deadline or time period set forth in this  Agreement that by its terms ends on a day that is not a Business Day shall be automatically  extended to the next succeeding Business Day.  Any agreement, instrument or statute defined or  referred to herein means such agreement, instrument or statute as from time to time may be  amended, supplemented, restated or modified, including (in the case of agreements or  instruments) by waiver or consent and (in the case of statutes) by succession of comparable  successor statutes.  ARTICLE II.  BOARD OF DIRECTORS  2.1 Election of Directors.  (a) TopCo Parent shall have the right, but not the obligation, to nominate to the Board a number of designees equal to at least:  (i) a majority of the Total  Number of Directors, so long as the Apollo Entities beneficially own 50% or more of the  outstanding shares of Common Stock; (ii) 50% of the Total Number of Directors, in the event  that the Apollo Entities beneficially own 40% or more, but less than 50%, of the outstanding  shares of Common Stock; (iii) 40% of the Total Number of Directors, in the event that the  Apollo Entities beneficially own 30% or more, but less than 40%, of the outstanding shares of  Common Stock; (iv) 30% of the Total Number of Directors, in the event that the Apollo Entities  beneficially own 20% or more, but less than 30%, of the outstanding shares of Common Stock;  and (v) 20% of the Total Number of Directors, in the event that the Apollo Entities beneficially  own 5% or more, but less than 20%, of the outstanding shares of Common Stock.  For purposes  

 

5  Doc#: US1:12158454v2  of calculating the number of Directors that TopCo Parent is entitled to designate pursuant to the  immediately preceding sentence, any fractional amounts shall automatically be rounded up to the  nearest whole number (e.g., one and one quarter (11/4) Directors shall equate to two  (2) Directors) and any such calculations shall be made after taking into account any increase in the Total Number of Directors.  In addition to the foregoing, TopCo Parent shall have the right, but not the obligation, to nominate to the Board one (1) designee (the “Co-Invest Nominee”) identified to TopCo Parent by the party set forth on Exhibit A, so long as such party continues to hold, directly or indirectly, an interest in the Company (including, for the avoidance of doubt, as a limited partner of TopCo Parent or a direct or indirect shareholder, member, or limited partner of a limited partner in TopCo Parent) of at least the amount set forth on Exhibit A (such condition, the “Co-Investor Condition”). (b) In the event that TopCo Parent has nominated less than the total number of designees TopCo Parent shall be entitled to nominate pursuant to Section 2.1(a),  TopCo Parent shall have the right, at any time, to nominate such additional designees to which it  is entitled, in which case, the Company and the Directors shall take all necessary corporate  action, to the fullest extent permitted by applicable law, to (x) enable TopCo Parent to nominate  and effect the election or appointment of such additional individuals, whether by increasing the  size of the Board, or otherwise and (y) to effect the election or appointment of such additional  individuals nominated by TopCo Parent to fill such newly-created directorships or to fill any  other existing vacancies.  Each such person whom TopCo Parent shall actually nominate  pursuant to this Section 2.1 and who is thereafter elected to the Board to serve as a Director  (other than the Co-Invest Designee) shall be referred to herein as an “Apollo Designee”.  Each  Co-Invest Nominee whom TopCo Parent shall actually nominate pursuant to this Section 2.1 and  who is thereafter elected to the Board to serve as a Director shall be referred to as a “Co-Invest  Designee”).      (c) In the event that a vacancy is created at any time by the death, retirement or resignation of any Apollo Designee or Co-Invest Designee (provided that the Co- Investor Condition is satisfied), the remaining Directors and the Company shall, to the fullest  extent permitted by applicable law, take all actions necessary at any time and from time to time  to cause the vacancy created thereby to be filled by a new designee of TopCo Parent (which  designee, in the case of a vacancy in respect of a Co-Invest Designee, shall be identified by the  party set forth on Exhibit A), as soon as possible.  (d) The Company agrees, to the fullest extent permitted by applicable law, to include in the slate of nominees recommended by the Board for election at any meeting  of stockholders called for the purpose of electing directors the persons designated pursuant to  this Section 2.1 and to nominate and recommend each such individual to be elected as a Director  as provided herein, and to solicit proxies or consents in favor thereof.  The Company is entitled,  solely for the purposes set forth in this Section 2.1(d), to identify such individual as an Apollo  Designee or a Co-Invest Designee pursuant to this Stockholders Agreement.  

 

6  Doc#: US1:12158454v2  ARTICLE III.  INFORMATION  3.1 Books and Records; Access.  The Company shall, and shall cause its  Subsidiaries to, keep proper books, records and accounts, in which full and correct entries shall  be made of all financial transactions and the assets and business of the Company and each of its  Subsidiaries in accordance with generally accepted accounting principles.  For so long as (x) no  Apollo Designee is then serving as a Director, and (y) TopCo Parent beneficially owns 3% or  more of the outstanding shares of Common Stock, the Company shall, and shall cause its  Subsidiaries to, permit the Apollo Entities and their respective designated representatives, at  reasonable times and upon reasonable prior notice to the Company, to inspect, review and/or  make copies and extracts from the books and records of the Company or any of such Subsidiaries  and to discuss the affairs, finances and condition of the Company or any of such Subsidiaries  with the officers of the Company or any such Subsidiary.  For so long as (x) no Apollo Designee  is then serving as a Director, and (y) TopCo Parent beneficially owns 3% or more of the  outstanding shares of Common Stock, the Company, upon the written request of any Apollo  Entity, shall, and shall cause its Subsidiaries to, provide the Apollo Entities, in addition to other  information that might be reasonably requested by the Apollo Entities from time to time,  (i) direct access to the Company’s auditors and officers, (ii) the ability to link TopCo Parent’s systems into the Company’s general ledger and other systems in order to enable the Apollo Entities to retrieve data on a “real-time” basis, (iii) quarter-end reports, in a format to be prescribed by the Apollo Entities, to be provided within 30 days after the end of each quarter, (iv) copies of all materials provided to the Board (or committee of the Board) at the same time as provided to the Directors (or members of a committee of the Board), (v) access to appropriate officers and directors of the Company and its Subsidiaries at such times as may be requested by the Apollo Entities, as the case may be, for consultation with each of the Apollo Entities with respect to matters relating to the business and affairs of the Company and its Subsidiaries, (vi) information in advance with respect to any significant corporate actions, including, without limitation, extraordinary dividends, stock redemptions or repurchases, mergers, acquisitions or dispositions of assets, issuances of significant amounts of debt or equity and material amendments to the Charter or Bylaws or the organizational documents of any of its Subsidiaries, and to provide the Apollo Entities with the right to consult with the Company and its Subsidiaries with respect to such actions, (vii) flash data, in a format to be prescribed by the Apollo Entities, to be provided within ten days after the end of each quarter and (viii) to the extent otherwise prepared by the Company, operating and capital expenditure budgets and periodic information packages relating to the operations and cash flows of the Company and its Subsidiaries (all such information so furnished pursuant to this Section 3.1, the “Information”). The Company agrees to consider, in good faith, the recommendations of the Apollo Entities in connection with the matters on which the Company is consulted as described above.  Subject to Section 3.2, any Apollo Entity (and any party receiving Information from an Apollo Entity) who shall receive Information shall maintain the confidentiality of such Information, and the Company shall not be required to disclose any privileged Information of the Company so long as the Company has used its commercially reasonable efforts to enter into an arrangement pursuant to which it may provide such information to the Apollo Entities without the loss of any such privilege. 

 

7  Doc#: US1:12158454v2  3.2 Sharing of Information.  Individuals associated with TopCo Parent may  from time to time serve on the Board or the equivalent governing body of the Company’s  Subsidiaries.  The Company, on its behalf and on behalf of its Subsidiaries, recognizes that such  individuals (i) will from time to time receive non-public information concerning the Company  and its Subsidiaries, and (ii) may (subject to the obligation to maintain the confidentiality of such  information in accordance with Section 3.1) share such information with other individuals  associated with TopCo Parent.  Such sharing will be for the dual purpose of facilitating support  to such individuals in their capacity as Directors (or members of the governing body of any  Subsidiary) and enabling the Apollo Entities, as equityholders, to better evaluate the Company’s  performance and prospects.  The Company, on behalf of itself and its Subsidiaries, hereby  irrevocably consents to such sharing.  ARTICLE IV.  OTHER RIGHTS  4.1 Consent to Certain Actions.   (a) Subject to the provisions of Section 4.1(b), without the prior written approval of TopCo Parent, the Company shall not, and shall (to the extent applicable)  cause each of its Subsidiaries not to:  (i) amend, modify or repeal (whether by merger, consolidation or otherwise) any provision of the Charter, the Bylaws or equivalent organizational documents of  its Subsidiaries in a manner that adversely affects any of the Apollo Entities;  (ii) issue additional equity interests of the Company or any of its Subsidiaries, other than (A) any award under any stockholder-approved equity compensation  plan, (B) any award under an equity compensation plan approved by a majority of the Apollo  Designees, or (C) any intra-company issuance among the Company and its wholly-owned  Subsidiaries;  (iii) make any payment or declaration of any dividend or other distribution on any shares of Common Stock or entering into any recapitalization transaction, the  primary purpose of which is to pay a dividend;  (iv) merge or consolidate with or into any other entity, or transfer (by lease, assignment, sale or otherwise) all or substantially all of the Company’s and its  Subsidiaries’ assets, taken as a whole, to another entity, or enter into or agree to undertake any  transaction that would constitute a “Change of Control” as defined in the Company’s or its  Subsidiaries’ principal credit facilities or note indentures (other than, in each case, transactions  among the Company and its wholly-owned Subsidiaries);  (v) other than in the ordinary course of business with vendors, customers and suppliers, enter into or effect any (A) acquisition by the Company or any  Subsidiary of the equity interests or assets of any Person, or the acquisition by the Company or  any Subsidiary of any business, properties, assets, or Persons, in one transaction or a series of  

 

8  Doc#: US1:12158454v2  related transactions or (B) disposition of assets of the Company or any Subsidiary or the shares  or other equity interests of any Subsidiary, in each case where the amount of consideration for  any such acquisition or disposition exceeds $25 million in any single transaction, or an aggregate  amount of $50 million in any series of transactions during a calendar year;  (vi) undertake any liquidation, dissolution or winding up of the Company;  (vii) incur financial indebtedness, in a single transaction or a series of related transactions, aggregating to more than $25 million, except for borrowings under  a revolving credit facility that has previously been approved or is in existence (with no increase  in maximum availability) on the date hereof or otherwise approved by TopCo Parent;  (viii) hire or terminate any Executive Officer of the Company or designate any new Executive Officer of the Company;   (ix) effect any material change in the nature of the business of the Company or any Subsidiary, taken as a whole; or  (x) change the size of the Board. (b) The approval rights set forth in Section 4.1(a) shall terminate at such time as TopCo Parent no longer collectively beneficially owns at least 25% of the  outstanding shares of Common Stock.   ARTICLE V.  GENERAL PROVISIONS  5.1 Termination.  This Agreement shall terminate on the earlier to occur of  (i) such time as TopCo Parent no longer beneficially owns 3% or more of the outstanding shares of Common Stock and (ii) upon the delivery of a written notice by TopCo Parent to the Company requesting that this Agreement terminate.  Notwithstanding the foregoing, the provisions of Article II of this Agreement shall survive termination of this Agreement until such time as the party set forth on Exhibit A no longer satisfies the Co-Investor Condition, unless the written notice delivered by TopCo Parent to the Company in accordance with this Section 5.1 is also signed by the party set forth on Exhibit A, as long as it satisfies the Co-Investor Condition as of such date. 5.2 Notices.  Any notice provided for in this Agreement shall be in writing  and shall be either personally delivered, sent by electronic transmission or sent by reputable  overnight courier service (charges prepaid) to the Company at the address set forth below and to  any other recipient at the address indicated on the Company’s records, or at such address or to  the attention of such other Person as the recipient party has specified by prior written notice to  the sending party.  Notices will be deemed to have been given hereunder when delivered  personally, sent by electronic transmission or upon actual delivery by reputable overnight courier  service (as indicated in such courier service’s records).  

 

9  Doc#: US1:12158454v2  The Company’s address is:  ADT Inc.  1501 Yamato Road  Boca Raton, Florida 33431  Attention:  Chief Executive Officer  with a mandatory copy to:  ADT Inc.  1501 Yamato Road  Boca Raton, Florida 33431  Attention:  Chief Legal Officer  The Apollo Entities’ address is:  c/o Apollo Global Management  9 West 57th Street, 43rd Floor  New York, NY 10019  Attention:  Marc Becker and General Counsel  Fax:  (646) 417-6429  with a copy (not constituting notice) to:  Paul, Weiss, Rifkind, Wharton & Garrison LLP  1285 Avenue of the Americas  New York, NY 10019-60064  Attention:  Taurie M. Zeitzer and David Beller   Fax:  (212) 492-0353  5.3 Amendment; Waiver.  This Agreement may be amended, supplemented or  otherwise modified only by a written instrument executed by the Company and the other parties  hereto.  Neither the failure nor delay on the part of any party hereto to exercise any right,  remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any  single or partial exercise of any right, remedy, power or privilege preclude any other or further  exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of  any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of  such right, remedy, power or privilege with respect to any other occurrence.  No waiver shall be  effective unless it is in writing and is signed by the party asserted to have granted such waiver.  5.4 Further Assurances.  The parties hereto will sign such further documents,  cause such meetings to be held, resolutions passed, exercise their votes and do and perform and  cause to be done such further acts and things necessary, proper or advisable in order to give full  effect to this Agreement and every provision hereof.  To the fullest extent permitted by law, the  Company shall not directly or indirectly take any action that is intended to, or would reasonably  be expected to result in, any Apollo Entity being deprived of the rights contemplated by this  Agreement.  

 

10  Doc#: US1:12158454v2  5.5 Assignment.  This Agreement will inure to the benefit of and be binding  on the parties hereto and their respective successors and permitted assigns.  This Agreement may  not be assigned without the express prior written consent of the other parties hereto, and any  attempted assignment, without such consents, will be null and void; provided, however, that (i)  each Apollo Entity shall be entitled to assign, in whole or in part, to any of its Permitted Assigns  without such prior written consent any of its rights hereunder and (ii) each Holder shall be  entitled to assign, in whole or in part, any of its rights hereunder without such prior written  consent to any entity to which such Holder may transfer all or part of its limited partnership  interests in AP VIII Prime Security Services Holdings, L.P. (“AP VIII”), pursuant to and in  accordance with that certain Amended and Restated Agreement of Limited Partnership of AP  VIII, dated as of May 2, 2016, and any other applicable agreements by and between AP VIII and  such Holder.  5.6 Third Parties.  Except as provided for in Section 3.2 with respect to any  Apollo Entity, this Agreement does not create any rights, claims or benefits inuring to any person  that is not a party hereto nor create or establish any third party beneficiary hereto.  5.7 Governing Law.  This Agreement shall be governed by and construed in  accordance with the laws of the State of Delaware, without regard to principles of conflicts of  laws thereof.  5.8 Jurisdiction; Waiver of Jury Trial.  In any judicial proceeding involving  any dispute, controversy or claim arising out of or relating to this Agreement, each of the parties  unconditionally accepts the jurisdiction and venue of the Court of Chancery of the State of  Delaware or, if the Court of Chancery does not have subject matter jurisdiction over this matter,  the Superior Court of the State of Delaware (Complex Commercial Division), or if jurisdiction  over the matter is vested exclusively in federal courts, the United States District Court for the  District of Delaware, and the appellate courts to which orders and judgments thereof may be  appealed.  In any such judicial proceeding, the parties agree that in addition to any method for  the service of process permitted or required by such courts, to the fullest extent permitted by law,  service of process may be made by delivery provided pursuant to the directions in Section 5.2.   EACH OF THE PARTIES HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED  BY APPLICABLE LAW TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING  ANY DISPUTE, CONTROVERSY OR CLAIM ARISING OUT OF OR RELATING TO THIS  AGREEMENT.  5.9 Specific Performance.  Each party hereto acknowledges and agrees that in  the event of any breach of this Agreement by any of them, the other parties hereto would be  irreparably harmed and could not be made whole by monetary damages.  Each party accordingly  agrees to waive the defense in any action for specific performance that a remedy at law would be  adequate and that the parties, in addition to any other remedy to which they may be entitled at  law or in equity, shall be entitled to specific performance of this Agreement without the posting  of any bond.  5.10 Entire Agreement.  This Agreement sets forth the entire understanding of  the parties hereto with respect to the subject matter hereof.  There are no agreements,  representations, warranties, covenants or understandings with respect to the subject matter hereof  

 

11  Doc#: US1:12158454v2  or thereof other than those expressly set forth herein and therein.  This Agreement supersedes all  other prior agreements and understandings between the parties with respect to such subject  matter.  5.11 Severability.  If any provision of this Agreement, or the application of  such provision to any Person or circumstance or in any jurisdiction, shall be held to be invalid or  unenforceable to any extent, (i) the remainder of this Agreement shall not be affected thereby,  and each other provision hereof shall be valid and enforceable to the fullest extent permitted by  law, (ii) as to such Person or circumstance or in such jurisdiction such provision shall be  reformed to be valid and enforceable to the fullest extent permitted by law and (iii) the  application of such provision to other Persons or circumstances or in other jurisdictions shall not  be affected thereby.  5.12 Table of Contents, Headings and Captions.  The table of contents,  headings, subheadings and captions contained in this Agreement are included for convenience of  reference only, and in no way define, limit or describe the scope of this Agreement or the intent  of any provision hereof.  5.13 Counterparts.  This Agreement and any amendment hereto may be signed  in any number of separate counterparts, each of which shall be deemed an original, but all of  which taken together shall constitute one Agreement (or amendment, as applicable).  5.14 Effectiveness.  This Agreement shall become effective upon its execution  by each of the parties hereto.  5.15 No Recourse.  Notwithstanding anything that may be expressed or implied  in this Agreement or otherwise, and notwithstanding the fact that certain of the Holders may be  partnerships, limited liability companies, corporations or other entities, each party hereto  covenants, agrees and acknowledges that no recourse under this Agreement or any documents or  instruments delivered by any Person pursuant hereto or otherwise shall be had against any of the  Apollo Entities or the Related Entities or any of their former, current or future direct or indirect  equity holders, controlling Persons, stockholders, directors, officers, employees, agents,  Affiliates, members, financing sources, managers, general or limited partners or assignees (each  a “Related Party” and collectively, the “Related Parties”), in each case other than (subject, for the  avoidance of doubt, to the provisions of this Agreement) each party hereto or any of its  respective assignees under this Agreement, whether by the enforcement of any assessment or by  any legal or equitable proceeding, or by virtue of any 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 Related Parties, as such, for any obligation or liability of any  party hereto or any of its respective assignees under this Agreement or any documents or  instruments delivered by any Person pursuant hereto for any claim based on, in respect of or by  reason of such obligations or liabilities or their creation; provided, however, that nothing in this  Section 5.16 shall relieve or otherwise limit the liability of any party hereto or any of its  respective assignees for any breach or violation of its obligations under such agreements,  documents or instruments.  [Remainder Of Page Intentionally Left Blank]  

 

[Signature Page to Stockholders Agreement]  IN WITNESS WHEREOF, the parties hereto have executed this Stockholders  Agreement on the day and year first above written.  COMPANY  ADT INC.  By:  Name:  P. Gray Finney  Title:    Senior Vice President, Chief Legal               Officer and Secretary  

 

[Signature Page to Stockholders Agreement]  HOLDERS  PRIME SECURITY SERVICES TOPCO  PARENT, L.P.  By: Prime Security Services TopCo Parent GP,  LLC,  its general partner  By:  Name:  P. Gray Finney  Title:    Senior Vice President, Chief Legal               Officer and Secretary  

 

[Signature Page to Stockholders Agreement]  PRIME SECURITY SERVICES TOPCO PARENT  GP, LLC  By:  Name:  P. Gray Finney  Title:    Senior Vice President, Chief Legal               Officer and Secretary  

 

 

 

    Doc#: US1:12158454v2  Exhibit A    Specified Beneficial Ownership of Interest in the Company    Investor Amount of Interest Beneficially Owned  Birchtree Fund Investments Private Limited 30,258,000 shares of Common Stock (adjusted  to take into account any stock split, reverse  stock split, stock dividend, reorganization or  similar event effected with respect to the shares  of Common Stock)

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