Document:

Exhibit 10.2

 

Execution
Copy

 

AMENDED
AND RESTATED SECURITIES PURCHASE AGREEMENT

 

THIS AMENDED AND RESTATED SECURITIES
PURCHASE AGREEMENT
(this “Agreement”) is made as of January 28, 2008, by and between
Solera Holdings, Inc., a Delaware corporation (the “Company”), Jack
Pearlstein  (“Purchaser”), Ian Z.
Pearlstein 2001 Trust (“Ian Pearlstein Trust”) and Ivanna V. Pearlstein
2001 Trust (“Ivanna Pearlstein Trust”). 
Certain definitions are set forth in Section 6 of this
Agreement.

 

On April 13, 2006, pursuant to a Securities
Purchase Agreement, dated as of April 13, 2006, by and between Solera
Holdings, LLC, a Delaware limited liability company and predecessor to the
Company (“Solera LLC”), and Purchaser (the “Prior Purchase Agreement”),
Purchaser purchased from Solera LLC 1,213.766 of Solera LLC’s Class B  Preferred Units (as defined below) and 2,862,344 of Solera
LLC’s Class A Common Units (as defined below).  All Class B  Preferred
Units and Class A Common Units acquired by Purchaser are referred to
herein as “Units.”

 

On May 1, 2006, Purchaser transferred 200,000 Class A
Common Units to each of (i) Ian Pearlstein Trust and (ii) Ivanna
Pearlstein Trust.

 

On April 28, 2007, pursuant to a resolution of
the board of managers of Solera LLC, a three-to-one reverse split of the Class A
Common Units of Solera LLC was effected pursuant to which the number of Class A
Common Units held by each of Purchaser, Ian Pearlstein Trust and Ivanna
Pearlstein Trust was divided by three and any resulting fractional Unit was
cancelled.

 

On May 10, 2007, pursuant to a resolution of the
board of managers of Solera LLC, Solera LLC filed a certificate of conversion
(as filed, the “Certificate of Conversion”) with the Secretary of State
of the State of Delaware, pursuant to which Solera LLC was converted from a
limited liability company into a corporation and all outstanding Class A
Common Units and Class B Preferred Units of Solera LLC were converted into
shares (the “Conversion”) of the common stock, par value $0.01 per share
(the “Common Stock”), of the Company as set forth in the Certificate of
Conversion.

 

Immediately following the Conversion, the Investors
owned an aggregate of 41,526,756 shares of Common Stock (such number of shares,
the “Initial Investor Amount”).

 

On May 11, 2007, pursuant to and subject to the
terms of (a) a Restricted Stock Unit Grant Agreement, dated May 11,
2007, between the Company and Executive (the “RSU Agreement”), and (b) the
Company’s 2007 Long-Term Equity Incentive Plan, the Company issued to Executive
50,216 restricted stock units (the “RSUs”).

 

On May 15, 2007, the Company completed an initial
public offering (the “IPO”) of shares of Common Stock.  In connection with the IPO, Purchaser sold
65,341 shares of Common Stock to the underwriters in the IPO.

 

On October 10, 2007, certain stockholders of the
Company completed a public offering (the “October Offering”) of
shares of Common Stock.  In connection
with the October 

 

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Offering, Executive sold
102,159 shares of Common Stock to the underwriters in the October Offering.

 

As a result of the foregoing events, the Company,
Purchaser, Ian Pearlstein Trust and Ivanna Pearlstein Trust desire to amend and
restate the Prior Purchase Agreement in its entirety.  Certain provisions of this Agreement are
intended for the benefit of, and will be enforceable by, the Investors (as
defined below).

 

NOW, THEREFORE, in consideration of the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties to the
Prior Purchase Agreement agree that the Prior Purchase Agreement is hereby
amended and restated in its entirety as follows and all parties hereto hereby
agree as follows:

 

1.             Purchase
and Sale of Securities.

 

(a)           Pursuant
to the Prior Purchase Agreement, Purchaser purchased, and Solera LLC sold, (i) 2,356,608
Class A Common Units at a price of $0.10 per unit (the “Carried Common
Units”), (ii) 505,736 Class A Common Units at a price of $0.10
per unit (the “Co-Invest Common Units” and together with the Class B
Preferred Units, the “Co-Invest Units”), and (iii) 1,213.766 Class B
Preferred Units at a price of $1,000.00 per unit.  Solera LLC delivered to Purchaser a copy of
the certificate(s) representing such Units, and Purchaser delivered to
Solera LLC or an account designated by Solera LLC a cashier’s or certified
check or wire transfer of immediately available funds in an aggregate amount
equal to $1,500,000.00 as payment for such Units.

 

(b)           On May 1,
2006, Purchaser transferred 200,000 Co-Invest Common Units to each of (i) Ian
Pearlstein Trust and (ii) Ivanna Pearlstein Trust.  On such date, Ian Pearlstein Trust and Ivanna
Pearlstein Trust executed joinders to the Prior Purchase Agreement.

 

(c)           On April 28,
2007, pursuant to a resolution of the board of managers of Solera LLC, a
three-to-one reverse split of the Class A Common Units of Solera LLC was
effected pursuant to which the number of Class A Common Units held by each
of Purchaser, Ian Pearlstein Trust and Ivanna Pearlstein Trust was divided by
three and any resulting fractional Unit was cancelled.

 

(d)           On May 10,
2007, pursuant to the Conversion, all of the outstanding units of Solera LLC,
including the Units, were converted into shares of Common Stock.  Immediately following such Conversion, (i) Purchaser
owned the following:  (A) 785,536
shares of Common Stock, which shares shall be referred to herein as the “Carried
Shares” and (B) 117,848 shares of Common Stock, which shares shall be
referred to herein as the “Purchaser Co-Invest Shares;” and (ii) each
of Ian Pearlstein Trust and Ivanna Pearlstein Trust owned 66,666 shares of
Common Stock, which shares, together with the Purchaser Co-Invest Shares, shall
be referred to herein as the “Co-Invest Shares.”  The Carried Shares and Co-Invest Shares,
together with any shares of Common Stock that are issued in respect of RSUs
that have vested, shall be referred to herein, collectively, as “Securities.”  As of May 10, the total number of Carried
Shares plus Co-Invest Shares was equal to 1,036,716.

 

 

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(e)   Immediately following the Conversion, the
Investors owned an aggregate number of shares of Common Stock equal to the
Initial Investor Amount.

 

(f)    On May 11, 2007, pursuant to and
subject to the terms of (a) the RSU Agreement and (b) the Company’s
2007 Long-Term Equity Incentive Plan, the Company issued to Executive the RSUs.

 

(g)   On May 15, 2007, in connection with the
IPO, Purchaser sold 65,341 Purchaser Co-Invest Shares to the underwriters in
the IPO.

 

(h)   On October 10, 2007, in connection
with the October Offering, Executive sold 102,159 shares of Common Stock
to the underwriters in the October Offering.

 

(i)    All certificates evidencing the Unvested
Shares (as defined below) shall be held by the Company for the benefit of
Executive and other holder(s) of Unvested Shares; provided, that, upon
written request by the Executive, the Company shall release to Executive and
other holder(s) of Vested Shares certificates evidencing those Vested
Shares.  Upon the occurrence of a Sale of
the Company, the Company will return all certificates in its possession
evidencing Unvested Shares to the record holders thereof.

 

(j)            Purchaser
represents and warrants to the Company that:

 

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

 

(ii)           Except
for the Solera Employment Agreement, Purchaser is neither party to, nor bound
by, any other employment agreement, consulting agreement, noncompete agreement,
non-solicitation agreement or confidentiality agreement.

 

(k)           Purchaser
acknowledges and agrees that no provision contained in this Agreement shall
entitle Purchaser to remain in the employment of the Company or any of its
Subsidiaries or affect the right of the Company or its Subsidiaries to
terminate Purchaser’s employment at any time for any reason.

 

(l)            In
accordance with the terms of the Prior Purchase Agreement, Purchaser has
executed in blank ten security transfer powers (the “Security Powers”)
with respect to the Units acquired pursuant to such agreement and has delivered
such Security Powers to the Company. 
Concurrently with the execution of this Agreement, Purchaser shall
execute in blank ten Security Powers in the form of Exhibit A
attached hereto with respect to the Unvested Shares and shall deliver such
Security Powers to the Company.  The
Security Powers shall authorize the Company to assign, transfer and deliver the
Unvested Shares to the appropriate acquiror thereof pursuant to Section 3
below and under no other circumstances.

 

(m)          In
accordance with the terms of the Prior Purchase Agreement, Purchaser’s spouse
executed a Spousal Consent with respect to the Units acquired pursuant to 

 

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such agreement. 
Concurrently with the execution of this Agreement, if Purchaser is
lawfully married, Purchaser’s spouse shall execute the Consent in the form of Exhibit B
attached hereto.

 

(n)           On April 13,
2006, Purchaser became a party to the Registration Agreement in the capacity of
an Executive and Securityholder.  On May 1,
2006, each of Ian Pearlstein Trust and Ivanna Pearlstein Trust became a party
to the Registration Agreement.

 

2.             Vesting
of Carried Shares and RSUs.

 

(a)           The
Co-Invest Shares are fully vested.  The
Carried Shares shall be subject to vesting in the manner specified in this Section 2.  As of the date hereof, 628,428 Carried Shares
have vested.

 

(b)   Except as otherwise provided in this Section 2,
beginning March 31, 2008, an additional 5% (that is, 39,276 shares) of the
Carried Shares shall become vested on March 31, June 30, September 30
and December 31 of each year, if as of each such date Executive is
employed by the Company or any of its Subsidiaries, until all Carried Shares
have become vested.

 

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

 

(d)   In the event of a Public Sale of shares
of Common Stock by the Investors after the date hereof, if, as of the date of
the consummation of such Public Sale, the Vested Ratio (prior to giving effect
to any vesting on such date pursuant to this Section 2(d)) is less
than the Cumulative Ratio (after giving effect to such Public Sale), then a
number of Unvested Shares (as defined below) shall become vested in connection
with such Public Sale such that the Vested Ratio (after giving effect to any
vesting on such date pursuant to this Section 2(d)) equals the Cumulative
Ratio (after giving effect to such Public Sale) on such date, if, as of such
date, Executive has been continuously employed by the Company, Employer or any
of their Subsidiaries from the date of this Agreement through and including
such date.  Notwithstanding, and in
addition to, any vesting pursuant to this Section 2(d), the Carried
Shares shall continue to vest as set forth in Section 2(b).

 

(e)           If (i) requested
by Purchaser in a written notice to the Company in connection with a Sale of
the Company, and (ii) Purchaser is a “disqualified individual” (within the
meaning of Section 280G(c) of the Internal Revenue Code, as amended
(the “Code”)) entitled to receive a “parachute payment” (within the
meaning of Code Section 280G(b)) in connection with such Sale of the
Company, and (iii) Purchaser has waived his 280G Payment (as defined
below) subject to the Stockholder Vote (as defined below), the Company shall
use commercially reasonable efforts prior to the closing of such Sale of the
Company to hold a vote of the Company’s stockholders (the “Stockholder Vote”)
seeking approval of any such parachute payment to the extent such parachute
payment exceeds 2.999 times Purchaser’s “base amount” (within the meaning of
Code Section 280G(b)(3)) (the “280G Payment”).

 

 

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(f)            Carried
Shares that have become vested (“Vested Carried Shares”), shares of
Common Stock issued in respect of RSUs that have vested and the Co-Invest
Shares are collectively referred to herein as “Vested Shares.”  All Carried Shares that have not vested are
referred to herein as “Unvested Shares.”

 

(g)   As of the date hereof, notwithstanding
anything to the contrary set forth in the RSU Agreement, 40,172 of the RSUs
have vested.  In the event of a Public
Sale of shares of Common Stock by the Investors after the date hereof, if, as
of the date of the consummation of such Public Sale, the RSU Vested Ratio
(prior to giving effect to any vesting on such date pursuant to this Section 2(g))
is less than the Cumulative Ratio (after giving effect to such Public Sale),
then a number of unvested RSUs shall become vested in connection with such
Public Sale such that the RSU Vested Ratio (after giving effect to any vesting
on such date pursuant to this Section 2(g)) equals the Cumulative
Ratio (after giving effect to such Public Sale) on such date, if, as of such
date, Executive has been continuously employed by the Company, Employer or any
of their Subsidiaries from the date of this Agreement through and including
such date.  Notwithstanding, and in
addition to, any vesting pursuant to this Section 2(g), the RSUs
shall continue to vest as set forth in the RSU Agreement.

 

3.             Repurchase
Option.

 

(a)           In
the event of a Separation, the Unvested Shares (whether held by Purchaser or
one or more of Purchaser’s transferees, other than the Company and the
Investors) will be subject to repurchase, in each case by the Company and the
Investors pursuant to the terms and conditions set forth in this Section 3
(the “Repurchase Option”).  The
Company may assign its repurchase rights set forth in this Section 3
to any Person.

 

(b)           In
the event of a Separation, the purchase price for each Unvested Share will be
the lesser of (A) Purchaser’s Original Cost for such share and (B) the
Fair Market Value of such share as of the delivery date of the Repurchase
Notice or Supplemental Repurchase Notice, as the case may be, in either case
first delivered pursuant to Section 3(c).

 

(c)           In the event of a Separation, the Company (with the
approval of the Board) may elect to purchase all or any portion of the Unvested
Shares pursuant to this Section 3 by delivering written notice (the
“Repurchase Notice”) to the holder or holders of such securities within
six months and 10 days after the Separation. 
The Repurchase Notice will set forth the number of Unvested Shares to be
acquired from each holder, the aggregate consideration to be paid for such
shares and the time and place for the closing of the transaction.  Unvested Shares to be repurchased by the
Company shall first be satisfied to the extent possible from the Unvested
Shares held by Purchaser at the time of delivery of the Repurchase Notice.  If the number of Unvested Shares to be
repurchased by the Company then held by Purchaser is less than the total number
of Unvested Shares that the Company has elected to purchase, the Company shall
purchase the remaining Unvested Shares elected to be purchased from the other
holder(s) of Unvested Shares under this Agreement (i.e., Purchaser’s
Permitted Transferees), pro rata according to the number of Unvested Shares
held by such other holder(s) at the time of delivery of such Repurchase
Notice (determined as nearly as practicable to the nearest share).

 

 

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(d)           If for any reason the Company does not elect to
purchase all of the Unvested Shares pursuant to the Repurchase Option, the
Investors shall be entitled to exercise the Repurchase Option for all or any
portion of the Unvested Shares that the Company has not elected to purchase
(the “Available Securities”).  As
soon as practicable after the Company has determined that there will be
Available Securities, but in any event within five months after the Separation,
the Company shall give written notice (the “Option Notice”) to the
Investors setting forth the number of Available Securities and the purchase
price for such Available Securities.  The
Investors may elect to purchase any or all of the Available Securities by
giving written notice to the Company within six months and 10 days after the
Separation.  If the Investors elect to
purchase an aggregate number of Available Securities that is greater than the
number of Available Securities, the Available Securities shall be allocated
among the Investors based upon the number of shares of Common Stock owned by
each Investor.  As soon as practicable,
and in any event within ten days, after the expiration of the six-month and
ten-day period set forth above, the Company shall notify each holder of
Unvested Shares as to the number of Unvested Shares being purchased from such
holder by the Investors (the “Supplemental Repurchase Notice”).  At the time the Company delivers the
Supplemental Repurchase Notice to the holder(s) of Unvested Shares, the
Company shall also deliver written notice to each Investor setting forth the
number of shares such Investor is entitled to purchase, the aggregate purchase
price and the time and place of the closing of the transaction.

 

(e)           The closing of the purchase of the Unvested Shares
pursuant to the Repurchase Option shall take place on the date designated by
the Company in the Repurchase Notice or Supplemental Repurchase Notice, which
date shall not be more than one month nor less than five days after the
delivery of the later of either such notice to be delivered.  The Company will pay for the Securities to be
purchased by it pursuant to the Repurchase Option by first offsetting amounts
outstanding under any bona fide debts owed by Purchaser to the Company, and
will pay the remainder of the purchase price by, at its option, (A) a
check or wire transfer of funds, (B) the issuance of a subordinated
promissory note of the Company payable in full in one lump sum on the third
anniversary of the date of issuance and bearing interest at a rate equal to
such rate as may be determined by the Board (provided that such rate may not be
less than the prime rate (as published in The Wall Street Journal from
time to time)), which interest shall be payable in cash on a quarterly basis,
or (C) any combination of (A) and (B) as the Board may elect in
its discretion; provided that, to the extent that the Company has readily
available cash resources in excess of its working capital and other reasonable
cash needs and without imposing any obligation on the Company to raise
financing to fund the repurchases or to materially impair its financial
liquidity or condition, the Company shall use reasonable efforts to pay the
purchase price for such Unvested Shares pursuant to the foregoing clause (A).  Each Investor will pay for the Unvested
Shares purchased by it by a check or wire transfer of funds.  The Company and the Investors will be
entitled to receive customary representations and warranties from the sellers
regarding such sale.

 

(f)            Notwithstanding anything to the contrary contained in
this Agreement, all repurchases of Unvested Shares by the Company pursuant to
the Repurchase Option shall be subject to applicable restrictions contained in
the Delaware General Corporation Law or such other governing corporate law, and
in the Company’s and its Subsidiaries’ debt and equity financing agreements,
provided that with respect to any such equity financing agreements in effect on
the date hereof, only such restrictions as are set forth in such agreements as
in effect on 

 

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the date hereof shall apply for purposes of this Section 3.2(f).  If any such restrictions prohibit (i) the
repurchase of Unvested Shares hereunder which the Company is otherwise entitled
or required to make or (ii) dividends or other transfers of funds from one
or more Subsidiaries to the Company to enable such repurchases, then the
Company may make such repurchases as soon as it is permitted to make
repurchases or receive funds from Subsidiaries under such restrictions but in
no event later than 12 months after the date of the Repurchase Notice, and for
any such repurchase that is to be made at Fair Market Value, Fair Market Value
shall be determined as of the date such restrictions lapse.

 

(g)           Notwithstanding anything to the contrary contained in
this Agreement, if the Fair Market Value of Unvested Shares is finally
determined to be an amount at least 20% greater than the per share repurchase
price for such Unvested Share in the Repurchase Notice or in the Supplemental
Repurchase Notice, each of the Company and the Investors shall have the right
to revoke its exercise of the Repurchase Option for all or any portion of the
Unvested Shares elected to be repurchased by it by delivering notice of such
revocation in writing to the holders of Unvested Shares during the thirty-day
period beginning on the date that the Company and/or the Investors are given
written notice that the Fair Market Value of an Unvested Share was finally
determined to be an amount at least 20% greater than the per share repurchase
price for Unvested Shares set forth in the Repurchase Notice or in the
Supplemental Repurchase Notice.

 

(h)           The provisions of this Section 3 will
terminate upon the consummation of a Sale of the Company.

 

4.             Restrictions on Transfer of Securities.

 

(a)           Transfer of Securities.  The holders
of Securities shall not Transfer any interest in any Securities, except
pursuant to (i) the provisions of Section 3 hereof or (ii) the
provisions of Section 4(b) below.

 

(b)   Certain Permitted Transfers. 
The restrictions in this Section 4 will not apply with
respect to any Transfer of Securities made (i) pursuant to applicable laws
of descent and distribution or to such Person’s legal guardian in the case of
any mental incapacity or among such Person’s Family Group, or (ii) subject
to the restrictions on transfer set forth in the Registration Agreement
(including, without limitation, in Section 3 thereof) or any
agreement entered into pursuant thereto, of shares of Common Stock that are
Vested Shares, but in the case of this clause (ii) only an amount
of shares of Common Stock that are Vested Shares equal to the product of (A) the
Total Share Number and (B) the Cumulative Ratio (as of the date of such
Transfer pursuant to this clause (ii), after giving effect to any Public
Sale of Common Stock by the Investors on such date), less the sum of (X) the
aggregate number of shares of Securities transferred by Executive in Public
Sales prior to the date hereof and (Y) as of the date of such transfer,
the aggregate number of shares of Securities previously transferred by
Executive, Ian Pearlstein Trust, Ivanna Pearlstein Trust and their Permitted
Transferees after the date hereof pursuant to this clause (ii); provided
that any in-kind distributions of shares of Common Stock by the Investors to
their limited partners shall be deemed to be a Public Sale for purposes of this
Section 4(b)(ii); provided further that the restrictions
contained in this Section 4 will continue to be applicable to the
Securities after any Transfer of the type referred to in clause (i) above
and 

 

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the transferees of such Securities must agree in
writing to be bound by the provisions of this Agreement.  Any transferee of Securities pursuant to a
Transfer in accordance with the provisions of clause (i) of this Section 4(b) is
herein referred to as a “Permitted Transferee.”  Upon the Transfer of Securities pursuant to
this Section 4(b), the transferring holder of Securities will
deliver a written notice (a “Transfer Notice”) to the Company.  In the case of a Transfer pursuant to clause
(i) hereof, the Transfer Notice will disclose in reasonable detail the
identity of the Permitted Transferee(s).

 

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

 

5.             Additional Restrictions on Transfer of Securities.

 

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

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY
ISSUED AS OF MAY 10, 2007, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE SOLD OR
TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT
OR AN EXEMPTION FROM REGISTRATION THEREUNDER. 
THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO
ADDITIONAL RESTRICTIONS ON TRANSFER, CERTAIN REPURCHASE OPTIONS AND CERTAIN
OTHER AGREEMENTS SET FORTH IN AN AMENDED AND RESTATED SECURITIES PURCHASE AGREEMENT
AMONG THE COMPANY AND AN EXECUTIVE OF THE COMPANY AND OTHER PARTIES, DATED AS
OF JANUARY 28, 2008, AS AMENDED.  A COPY
OF SUCH AGREEMENT MAY BE OBTAINED BY THE HOLDER HEREOF AT THE COMPANY’S
PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE.”

 

(b)           Opinion of Counsel.  No holder of
Securities may Transfer any Securities (except pursuant to Section 3 or
4(b) of this Agreement or an effective registration statement under
the Securities Act) without first delivering to the Company a written notice at
least 10 days prior to such transfer describing in reasonable detail the
proposed Transfer, and, if requested by the Company prior to such Transfer, an
opinion of counsel (reasonably acceptable in form and substance to the Company)
that neither registration nor qualification under the Securities Act and
applicable state securities laws is required in connection with such
transfer.  In addition, if the holder of
the Securities delivers to the Company an opinion of counsel that no subsequent
Transfer of such Securities shall require registration under the Securities
Act, the Company shall promptly upon such contemplated Transfer deliver new
certificates for such Securities that do not bear the Securities Act portion of
the legend set forth in Section 5(a).  If the Company is not required to deliver new
certificates for such Securities not bearing such legend, the holder 

 

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thereof shall not Transfer the same until the prospective transferee
has confirmed to the Company in writing its agreement to be bound by the
conditions contained in this Section 5.

 

6.             Definitions.

 

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

 

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

 

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

 

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

 

“Cumulative Ratio”
means, as of a given date, the quotient of (a) the aggregate number of
shares of Common Stock sold by the Investors in Public Sales between May 10,
2007 and such date (including any Public Sales on such date), divided by (b) the
Initial Investor Amount.

 

“Fair Market Value” of each share of Securities
means the average of the closing prices of the sales of such Securities on all
securities exchanges on which such Securities may at the time be listed, or, if
there have been no sales on any such exchange on any day, the average of the
highest bid and lowest asked prices on all such exchanges at the end of such
day, or, if on any day such Securities are not so listed, the average of the
representative bid and asked prices quoted in the NASDAQ System as of 4:00 P.M.,
New York time, or, if on any day such Securities are not quoted in the NASDAQ
System, the average of the highest bid and lowest asked prices on such day in
the domestic over-the-counter market as reported by the National Quotation
Bureau Incorporated, or any similar successor organization, in each such case
averaged over a period of 21 days consisting of the day as of which the Fair
Market Value is being determined and the 20 consecutive business days prior to
such day.  If at any time such Securities
are not listed on any securities exchange or quoted in the NASDAQ System or the
over-the-counter market, the Fair Market Value will be the fair value of such
Securities as determined in good faith by the Board.  If Purchaser reasonably disagrees with such
determination, Purchaser shall deliver to the Board a written notice of
objection within ten days after delivery of the Repurchase Notice (or if no
Repurchase Notice is delivered, then within ten days after delivery of the
Supplemental Repurchase Notice).  Upon
receipt of Purchaser’s written notice of objection, the Board and Purchaser will
negotiate in good faith to agree on such Fair Market Value.  If such agreement is not reached within 30
days after the delivery of the Repurchase Notice (or if no Repurchase Notice is
delivered, then within 30 days after the delivery of the Supplemental
Repurchase Notice), Fair Market Value shall be determined by an appraiser
jointly selected by the Board and Purchaser, which appraiser shall submit to
the Board 

 

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and Purchaser a report
within 30 days of its engagement setting forth such determination.  If the parties are unable to agree on an
appraiser within 45 days after delivery of the Repurchase Notice or the
Supplemental Repurchase Notice, within seven days, each party shall submit the
names of four nationally recognized firms that are engaged in the business of
valuing non-public securities, and each party shall be entitled to strike two
names from the other party’s list of firms, and the appraiser shall be selected
by lot from the remaining four appraisal firms. 
The expenses of such appraiser shall be borne by Purchaser unless the
appraiser’s valuation is more than 10% greater than the amount determined by
the Board, in which case the expenses of the appraiser shall be borne by the
Company.  In making such appraisal, the
appraiser shall determine the fair value of the Company as a whole without
discount for either lack of control or contractual restrictions on transfer
applicable to the Securities.  The determination
of such appraiser as to Fair Market Value shall be final and binding upon all
parties.

 

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

 

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

 

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

 

“GTCR Co-Invest II” means GTCR Co-Invest II,
L.P., a Delaware limited partnership.

 

“GTCR Fund VIII” means GTCR Fund VIII, L.P., a
Delaware limited partnership.

 

“GTCR Fund VIII/B” means GTCR Fund VIII/B,
L.P., a Delaware limited partnership.

 

“Investor Purchase Agreement” means the Amended
and Restated Securities Agreement, dated as of May 10, 2007, among the
Company and the Investors, as amended from time to time pursuant to its terms.

 

“Investors” means GTCR Fund VIII, GTCR Fund
VIII/B, GTCR Co-Invest II, and any other investment fund managed by GTCR I or
GTCR II that at any given time owns securities of the Company.

 

“LLC Agreement” means the Limited Liability
Company Agreement of Solera LLC, dated as of April 1, 2005, as amended
from time to time pursuant to its terms.

 

 

10

“Majority Holders” means the holders of a
majority of the Investor Securities (as defined in the Investor Purchase
Agreement).

 

“Original Cost” means $0.30 per share (as
proportionately adjusted for all share splits, share dividends and other
recapitalizations subsequent to the date hereof).

 

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

 

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

 

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

 

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

 

“RSU Vested Ratio” means, as of a given date,
the quotient of (a) the number of RSUs that have vested (pursuant to the
RSU Agreement or hereunder) as of such date, divided by (b) the total
number of RSUs granted under the RSU Agreement.

 

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

 

“Securities” will continue to be Securities in
the hands of any holder other than Purchaser (except for the Company and the
Investors and except for transferees in a Public Sale), and except as otherwise
provided herein, each such other holder of Securities will succeed to all
rights and obligations attributable to Purchaser as a holder of Securities
hereunder.  Securities will also include
equity of the Company issued with respect to Securities (i) by way of a
share split, share dividend, conversion, or other recapitalization or (ii) by
way of reorganization or recapitalization of the Company  Notwithstanding the foregoing, all Unvested
Shares shall remain Unvested Shares after any Transfer thereof.

 

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

 

 

11

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

 

“Solera Employment Agreement” means the
Employment Agreement, dated as of April 13, 2006, among Solera LLC, Solera, Inc.
and Purchaser, as amended from time to time pursuant to its terms.

 

“Solera, Inc.” means Solera, Inc., a
Delaware corporation.

 

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

 

“Total Share Number” means, as of a given date,
1,036,716 plus the aggregate number of shares of Common Stock issued as of such
date with respect to RSUs that have vested.

 

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

 

“Vested Ratio” means, as of a given date, the
quotient of (a) the number of Vested Carried Shares as of such date,
divided by (b) 785,535.  For the purposes
of determining the Vested Ratio, the number of Vested Carried Shares shall
include all such shares, without duplication, (x) held on such date by
Executive, Ian Pearlstein Trust, Ivanna Pearlstein Trust or any Permitted
Transferee or (y) transferred on or prior to such date by Executive or a
Permitted Transferee in a Public Sale or otherwise.

 

7.             Notices.  All notices, demands or other communications
to be given or delivered under or by reason of the provisions of this Agreement
shall be in writing and shall be deemed to have been given when (i) delivered
personally to the recipient, (ii) sent to the recipient by reputable
express courier service (charges prepaid), (iii) mailed to the recipient
by certified or registered mail, return receipt requested and postage prepaid,
or (iv) telecopied to the recipient (with hard copy sent to the recipient
by reputable overnight courier service (charges prepaid) that 

 

12

same day) if telecopied before 5:00 p.m. Chicago, Illinois time on
a business day, and otherwise on the next business day.  Such notices, demands and other
communications shall be sent to the parties at the addresses indicated below:

 

	
   

  	
  If to the
  Company:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Solera
  Holdings, Inc.

  
	
   

  	
   

  	
  15030 Avenue of
  Science, Suite 200

  
	
   

  	
   

  	
  San
  Diego, CA 92128

  
	
   

  	
   

  	
  Attention:  

  	
  Chief Executive Officer

  
	
   

  	
   

  	
  Facsimile: 

  	
  (858) 812-3011

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with copies to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GTCR Golder
  Rauner II, L.L.C.

  
	
   

  	
   

  	
  6100 Sears Tower

  
	
   

  	
   

  	
  Chicago,
  Illinois 60606-6402

  
	
   

  	
   

  	
  Attention: 

  	
  Philip A. Canfield

  
	
   

  	
   

  	
   

  	
  Craig A. Bondy

  
	
   

  	
   

  	
  Facsimile: 

  	
  (312) 382-2201

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
    and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Kirkland &
  Ellis LLP

  
	
   

  	
   

  	
  200 East
  Randolph Drive

  
	
   

  	
   

  	
  Chicago,
  Illinois 60601

  
	
   

  	
   

  	
  Attention:

  	
  Stephen L. Ritchie,
  P.C.

  
	
   

  	
   

  	
   

  	
  Mark A. Fennell

  
	
   

  	
   

  	
  Facsimile: 

  	
  (312) 861-2200

  
	
   

  	
   

  	
   

  
	
   

  	
  If to Purchaser,
  Ian Pearlstein Trust or Ivanna Pearlstein Trust:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Jack Pearlstein

  
	
   

  	
   

  	
  5122 Warren Place, NW

  
	
   

  	
   

  	
  Washington, DC 20016

  
	
   

  	
   

  	
  Facsimile: 

  	
  (925) 866-3491

  
	
   

  	
   

  	
   

  
	
   

  	
  If to the
  Investors:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GTCR Golder
  Rauner II, L.L.C.

  
	
   

  	
   

  	
  6100 Sears Tower

  
	
   

  	
   

  	
  Chicago, Illinois
  60606-6402

  
	
   

  	
   

  	
  Attention:

  	
  Philip A.
  Canfield

  
	
   

  	
   

  	
   

  	
  Craig A. Bondy

  
	
   

  	
   

  	
  Facsimile: 

  	
  (312) 382-2201

  
												

 

 

13

	
   

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Kirkland &
  Ellis LLP

  
	
   

  	
   

  	
  200 East
  Randolph Drive

  
	
   

  	
   

  	
  Chicago,
  Illinois 60601

  
	
   

  	
   

  	
  Attention: 

  	
  Stephen L.
  Ritchie, P.C.

  
	
   

  	
   

  	
   

  	
  Mark A. Fennell

  
	
   

  	
   

  	
  Facsimile: 

  	
  (312) 861-2200

  

 

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

 

8.             General
Provisions.

 

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

 

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

 

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

 

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

 

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

 

 

14

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

 

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

 

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

 

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

 

(j)            Amendment
and Waiver.  The provisions of this
Agreement may be amended and waived only with the prior written consent of the
Company, Solera, Inc., Purchaser and the Majority Holders.

 

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

 

15

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

 

(l)            Termination.  This Agreement shall survive a Separation and
shall remain in full force and effect after such Separation.

 

(m)  Adjustments of Numbers. 
All numbers set forth herein that refer to prices or amounts will be
appropriately adjusted to reflect stock splits, stock dividends, combinations
of shares and other recapitalizations affecting the subject class of equity
that occur after the date hereof.

 

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

 

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

 

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

 

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

 

(r)            Deemed
Senior Management Agreement. 
Notwithstanding anything in the Investor Purchase Agreement or the
Registration Agreement to the contrary, this Agreement shall be deemed to be a “Senior
Management Agreement” for the purposes of such agreements.

 

16

*     *    
*     *     *

 

 

17

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

 

	
   

  	
  SOLERA
  HOLDINGS, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tony Aquila

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   /s/ Jack Pearlstein

  	
   

  
	
   

  	
  JACK
  PEARLSTEIN

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  IAN Z.
  PEARLSTEIN 2001 TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bruce Levin

  	
   

  
	
   

  	
  Name:

  	
  Bruce S. Levin

  
	
   

  	
  Its:

  	
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  IVANNA
  V. PEARLSTEIN 2001 TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bruce Levin

  	
   

  
	
   

  	
  Name:

  	
  Bruce S. Levin

  
	
   

  	
  Its:

  	
  Trustee

  
									

 

 

Signature Page to
Amended and Restated Securities Purchase Agreement of Jack Pearlstein

18

 

	
  Agreed and Accepted:

  	
   

  
	
  THE INVESTORS:

  	
   

  
	
   

  	
   

  	
   

  
	
  GTCR FUND VIII, L.P.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  GTCR Partners VIII,
  L.P.

  	
   

  
	
  Its:

  	
  General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  GTCR Golder Rauner II,
  L.L.C.

  	
   

  
	
  Its:

  	
  General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Phillip A. Canfield

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Its:

  	
  Principal

  	
   

  
	
   

  	
   

  	
   

  
	
  GTCR FUND VIII/B, L.P.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  GTCR Partners VIII,
  L.P.

  	
   

  
	
  Its:

  	
  General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  GTCR Golder Rauner II,
  L.L.C.

  	
   

  
	
  Its:

  	
  General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Phillip A. Canfield

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Its:

  	
  Principal

  	
   

  
	
   

  	
   

  	
   

  
	
  GTCR CO-INVEST II, L.P.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  GTCR Golder Rauner II,
  L.L.C.

  	
   

  
	
  Its:

  	
  General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Phillip A. Canfield

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Its:

  	
  Principal

  	
   

  
	
   

  	
   

  	
   

  
						

 

Signature Page to
Amended and Restated Securities Purchase Agreement of Jack Pearlstein

 

19

 

EXHIBIT A

 

ASSIGNMENT SEPARATE FROM
CERTIFICATE

 

FOR VALUE RECEIVED, Jack Pearlstein  does hereby sell, assign and transfer unto
                              ,
a                                   ,
                
shares of the common stock, par value $0.01 per share, of Solera Holdings, Inc.,
a Delaware corporation (the “Company”), standing in the undersigned’s
name on the books of the Company represented by Certificate Nos.
                                  
herewith and does hereby irrevocably constitute and appoint each officer of the
Company (acting alone or with one or more other such officers) as attorney to
transfer said securities on the books of the Company with full power of
substitution in the premises.  THIS
ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THAT CERTAIN AMENDED AND
RESTATED SECURITIES PURCHASE AGREEMENT BY AND AMONG THE COMPANY AND THE
UNDERSIGNED AND THE OTHER PARTIES THERETO DATED AS OF JANUARY 28, 2008, AS
AMENDED.

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Jack Pearlstein

  

 

EXHIBIT B

 

SPOUSAL
CONSENT

 

The undersigned spouse of Purchaser hereby
acknowledges that I have read the foregoing Amended and Restated Securities
Purchase Agreement, dated as of January 28, 2008, and the Registration
Agreement referred to therein and that I understand their contents.  I am aware that the foregoing Amended and
Restated Securities Purchase Agreement provides for the sale or repurchase of
my spouse’s Securities under certain circumstances and/or imposes other
restrictions on such securities (including, without limitation, restrictions on
transfer).  I agree that my spouse’s
interest in these securities is subject to these restrictions and any interest
that I may have in such securities shall be irrevocably bound by these
agreements and further, that my community property interest, if any, shall be
similarly bound by these agreements.

 

	
   

  	
   

  	
  Date: January 28,
  2008

  
	
   

  	
   

  	
   

  
	
   

  	
  Spouse’s Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date: January 28,
  2008

  
	
   

  	
   

  	
   

  
	
   

  	
  Witness’ Name:Exhibit
10.1

 

FIRST AMENDMENT TO RETENTION AGREEMENT

 

The Retention Agreement between Adobe
Systems Incorporated, a Delaware Corporation (the “Company”), and Shantanu
Narayen, dated January 12, 1998 (the “Agreement”), is hereby amended,
effective as of February 11, 2008, as follows:

 

1.     Subsection 3(a) entitled
Cash Severance Payment is replaced in its entirety with the following:

 

“(a)(i)      Payment of Wages and Accrued
Vacation.  In the
event of your Involuntary Termination, the Company shall pay to you within five
(5) days of the date of such Involuntary Termination the full amount of
any earned but unpaid base salary through the Date of Termination at the rate
in effect at the time of the Notice of Termination, plus a cash payment
(calculated on the basis of your Reference Salary) for all unused vacation time
which you have accrued as of the Date of Termination.

 

(a)(ii)       Payment of Cash Severance.  Subject to execution of a release of claims
as described below, you will receive the following cash benefits:

 

(1)           The Company
shall pay to you a pro rata portion (based on the number of days served in the
applicable bonus period) of your target bonus for the year in which such
Involuntary Termination occurs, calculated on the assumption that all
performance targets have been or will be achieved at target levels, plus the
full amount of any bonus that you earned for the year prior to the year in
which the Involuntary Termination occurs based on actual Company and individual
performance, to the extent such bonus has not been paid prior to the Date of
Termination.  Except as otherwise
provided in Sections 3(f) and 4 below, these cash payments will be made in
a lump sum on the day following the Release Effective Date.

 

(2)           In addition,
the Company shall pay to you an amount (the “Severance
Payment”) equal to the product of (A) the sum of your Reference
Salary and Reference Bonus, multiplied by (B) two (2) plus one
twelfth (1/12th) for each of your completed years of service with
the Company (not in excess of twelve (12)) (the number determined in accordance
with the clause (B) being hereinafter referred to as the “Severance Multiple”). 
This Severance Payment shall be in lieu of any other cash severance
payments which you are entitled to receive under any other notice or severance
pay and/or retention plan or arrangement sponsored by the Company and its
subsidiaries.  Except as otherwise
provided in Sections 3(f) and 4 below, these Severance Payments will be
made in a lump sum on the day following the Release Effective Date.

 

 

2.     Subsection 3(b) entitled
Vesting and Exercise of Equity Awards and Restricted Units is replaced
in its entirety with the following:

 

“(b) 
Vesting and Exercise of Equity Awards. 
Subject to your execution of a release of claims as described in Subsection
(h) below, and notwithstanding anything to the contrary contained in an
applicable Equity Award agreement, in the event of a Change in Control, all
Equity Awards held by you shall vest in full and, as applicable, shall become
fully exercisable, as of the Change in Control Date, except as otherwise
provided in Sections 3(f) and 4 below. 
Notwithstanding anything in this Plan to the contrary, in no event shall
the vesting and exercisability provisions applicable to you under the terms of
an Equity Award be less favorable to you than the terms and provisions of such
awards in effect on the Change in Control Date.”

 

3.     Subsection 3(c) entitled
Benefits Continuation is replaced in its entirety with the following:

 

“(c)  Benefits Continuation. 
In the event of your Involuntary Termination during the Term, and
subject to your execution of a release of claims in the form prescribed by the
Company as further described below, and subject to your and/or your eligible
dependents’ election of continued medical insurance coverage in accordance with
the applicable provisions of federal law (commonly referred to as “COBRA”), the
Company shall pay your COBRA premiums for the duration of such COBRA coverage,
or for the period of years equal to your Severance Multiple, whichever is
less.  If your medical coverage
immediately prior to your Date of Termination included one or more of your
dependents, the Company-paid COBRA premiums shall include the premiums
necessary for such dependents as have elected COBRA coverage.  Notwithstanding the foregoing and
notwithstanding the provisions of Section 3(e), in the event that you
become covered under another employer’s group health plan (other than a plan
which imposes a pre-existing condition exclusion unless the pre-existing condition
exclusion does not apply) or otherwise cease to be eligible for COBRA during
the period provided in this Section 3(c), the Company shall immediately
cease payment of any COBRA premiums hereunder.”

 

4.     Section 3 is amended
and restated to add the following new Subsections (f), (g) and (h):

 

“(f)  Application of Section 409A.  Notwithstanding any other provision of this
Agreement, to the extent that (i) one or more of the payments or benefits
received or to be received by you pursuant to this Agreement would constitute
deferred compensation subject to the requirements of Section 409A of the
Code, and (ii) you are a “specified employee” within the meaning of Code Section 409A,
then such payment or benefit or portion thereof will be delayed until the earliest
date following your “separation from service” with the Company within the
meaning of Code Section 409A on which the Company can provide such payment
or benefit to you without your incurrence of any additional tax or interest
pursuant to Code Section 409A, with all remaining payments or benefits due
thereafter occurring in accordance with the original schedule.  In addition, this Agreement and the payments
to be made hereunder are intended to comply in all respects with the applicable
provisions of Code Section 409A.

 

2

 

(g)  Vesting of Performance Awards.  Subject to your execution of a release of
claims as described in Subsection (h) below, and notwithstanding anything
to the contrary contained in an applicable Performance Award agreement, and
except as otherwise provided in this Section 3(g) and Section 4
below, with respect to all Performance Awards in the event of a Change in
Control the Actual Award credited to you under the Performance Share Plan shall
vest in full as of the Change in Control Date.

 

Notwithstanding anything in this Agreement to the contrary, in no event
shall the vesting and exercisability provisions applicable to you under the
terms of a Performance Award be less favorable to you than the terms and
provisions of such awards in effect on the Change in Control Date.

 

(h) 
Release of Claims.  As a condition
to the receipt of the severance payments and benefits described in this Section 3,
you must execute and allow to become effective a release of claims in a
form  substantially identical with the form attached hereto as Exhibit A,
subject only to making the minimum modifications (if any) that are
required to reflect changes in the applicable law between February 5,
2008, and the date when the release is executed, with such execution occurring
not prior to the Date of Termination and not later than 45 days after your
receipt thereof.  The date on which such
release becomes effective is the “Release Effective Date”.  No benefits under Section 3 will be paid
to you prior to the Release Effective Date. 
The form of release shall not cause you to waive or release any claims
or rights you may have to be indemnified by the Company under applicable law,
the Company’s Certificate of Incorporation or Bylaws, or the terms of any
then-effective indemnification agreement or obligation.”

 

5.     Section 4 entitled Limitation
on Payments is replaced in its entirety with the following:

 

“In
the event that it is determined by the Accounting Firm that any amount payable
to you under this Plan, alone or when aggregated with any other amount payable
or benefit provided to you pursuant to any other plan or arrangement of the
Company, would constitute an “excess parachute payment” within the meaning of Section 280G
of the Code, then notwithstanding the other provisions of this Plan, the
amounts payable will not exceed the amount which produces the greatest
after-tax benefit to you.  For purposes
of the foregoing, the greatest after-tax benefit will be determined within
thirty (30) days of the occurrence of the event giving rise to such payment to
you.  The Company shall request a
determination in writing by the Accounting Firm of whether the full amount of
the payments to you, or a lesser amount, will result in the greatest after-tax
benefit to you.  As soon as practicable
thereafter, the Accounting Firm shall determine and report to the Company and
you the amount of such payments and benefits which would produce the greatest
after-tax benefit to you.  For the
purposes of 

 

3

 

such
determination, the Accounting Firm may rely on reasonable, good faith
interpretations concerning the application of Sections 280G and 4999 of
the Code.  The Company and you shall
furnish to the Accounting Firm such information and documents as the Accounting
Firm may reasonably request in order to make their required determination.  The Company shall bear all fees and expenses
the Accounting Firm may reasonably charge in connection with its services
contemplated by this Section.  If a
reduced amount of the payments will give rise to the greatest after tax
benefit, the reduction in the payments and benefits shall occur in the
following order unless you elects in writing a different order prior to the
last day of the year preceding the date on which the event that triggers the
payment occurs: (i) reduction of cash payments; (ii) cancellation of
accelerated vesting of equity awards (including Performance Awards) other than
stock options; (iii) cancellation of accelerated vesting of stock options;
and (iv) reduction of other benefits paid to you.  In the event that acceleration of
compensation from your equity awards (including Performance Awards) is to be
reduced, such acceleration of vesting shall be canceled in the reverse order of
the date of grant unless you elect in writing a different order for
cancellation prior to the last day of the year preceding the date on which the
event that triggers the payment occurs.”

 

6.     Section 5 entitled Legal
Fees and Expenses is replaced in its entirety with the following:

 

“The
Company shall pay or reimburse you for all costs and expenses (including,
without limitation, court costs and reasonable legal fees and expenses which
reflect common practice with respect to the matters involved) incurred by you
as a result of any bona fide claim, action or proceeding (a) arising out
of your termination of employment during the Term, (b) contesting,
disputing or enforcing any right, benefits or obligations under this Agreement
or (c) arising out of or challenging the validity, advisability or
enforceability of this Agreement or any provision thereof.  The payments or reimbursements provided for
herein shall be paid by the Company and its subsidiaries promptly (but in no
event more than five (5) business days) following receipt of a written
request for payment or reimbursement, as the case may be.  It is intended that each installment of
payments under this Section 5 is a separate “payment” for purposes of Section 409A.  For the avoidance of doubt, it is intended
that the payments under this Section 5 satisfy, to the greatest extent
possible, the exemptions from the application of Code Section 409A
provided under Treasury Regulation 1.409A-1(b)(11).”

 

7.  The following definitions shall be amended
and restated in their entirety in Section 7 entitled Definitions:

 

“Accounting Firm”
shall mean KPMG LLP or, if such firm is unable or unwilling to perform the
calculations required under this agreement, such other national accounting firm
as shall be designated by agreement between you and the Company.

 

4

 

 “Cause” shall
mean a termination of your employment during the Term which is a result of (i) your
felony conviction, (ii) your willful disclosure of material trade secrets
or other material confidential information related to the business of the
Company and its subsidiaries or (iii) your willful and continued failure
substantially to perform your same duties with the Company as in existence
prior to the Change in Control (other than any such failure resulting from your
incapacity due to physical or mental illness or any actual or anticipated
failure resulting from a resignation by you for Good Reason) after a written
demand for substantial performance is delivered to you by the Board, which
demand identifies the specific actions which the Board believes constitute
willful and continued failure substantially to perform your duties, and which
performance is not substantially corrected by you within ten (10) days of
receipt of such demand.  For purposes of
the previous sentence, no act or failure to act on your part shall be deemed “willful”
unless done, or omitted to be done, by you with willful malfeasance or gross
negligence and without reasonable belief that your action or omission was not
materially adverse to the best interest of the Company.  Notwithstanding the foregoing, you shall not
be deemed to have been terminated for Cause unless and until there shall have
been delivered to you a copy of a resolution duly adopted by the affirmative
vote of not less than three-fourths (3/4ths) of the entire membership of the
board at a meeting of the Board called and held for such purpose (after
reasonable notice to you and an opportunity for you, together with your
counsel, to be heard before the Board), finding that in the good faith opinion
of the Board you were guilty of conduct set forth above in clause (i), (ii) or
(iii) of the first sentence of this section and specifying the particulars
thereof in detail.

 

 “Equity Awards”
shall mean options, stock appreciation rights, stock purchase rights,
restricted stock, stock bonuses and other awards which consist of, or relate
to, equity securities of the Company, other than Performance Awards, in each case
which have been granted to you under the Equity Plans.  For purposes of this Plan, Equity Awards
shall also include any shares of common stock or other securities issued
pursuant to the terms of an Equity Award.

 

“Equity Plans”
shall mean the Adobe Systems Incorporated 1994 Stock Option Plan, the Adobe
Systems Incorporated 1994 Amended Performance and Restricted Stock Plan, the
Adobe Systems Incorporated 1999 Nonstatutory Stock Option Plan, the Adobe
Systems Incorporated 2003 Equity Incentive Plan, the Adobe Systems Incorporated
2005 Special Purpose Equity Incentive Plan, and any other equity-based
incentive plan or arrangement adopted or assumed by the Company, and any future
equity-based incentive plan or arrangement adopted or assumed by the Company, but
shall not include the Adobe Systems Incorporated 1997 Employee Stock Purchase
Plan or any other plan intended to be qualified under Section 423 of the
Code.

 

5

 

8.     The following definitions
shall be added to Section 7 entitled Definitions:

 

 “Actual
Award” shall have the meaning in the applicable Performance Share Program.

 

“Certification Date” shall have the
meaning set forth in the applicable Performance Share Program.

 

“Performance Awards” shall have the meaning set forth in the
applicable Equity Plan, and shall include awards of performance-based
restricted stock, performance-based restricted stock units and
performance-based cash awards.

 

“Performance Period” shall have the meaning set forth in the
applicable Performance Share Program and underlying Equity Plan.

 

“Performance Share Program” shall mean the specific terms of
Performance Awards adopted from time to time by the Company with respect to a
specified Performance Period.

 

9.     Except to the extent
specifically amended by this First Amendment, the provisions of the Agreement
dated January 12, 1998, shall remain in full force and effect.

 

6

 

IN WITNESS WHEREOF, the
parties hereto have executed this First Amendment on the date as set forth
below.

 

 

	
   

  	
  ADOBE SYSTEMS INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Karen Cottle

  	
   

  
	
   

  	
   

  	
  Karen
  Cottle

  
	
   

  	
   

  	
  Senior
  Vice President and General Counsel

  
	
   

  	
   

  
	
   

  	
  February 12,
  2008

  

 

 

	
  Agreed to:

  
	
   

  
	
   

  
	
  /s/ Shantanu Narayen

  	
   

  
	
  Shantanu Narayen

  
	
   

  
	
   

  
	
  February 12, 2008

  

 

7

 

Exhibit A

 

Form of
General Release Agreement

 

8

 

FORM OF
GENERAL RELEASE AGREEMENT

 

In consideration of the severance and other benefits which are to be
provided me by Adobe Systems Incorporated (“Adobe”),
pursuant to my Retention Agreement with Adobe dated January 12, 1998 as
amended effective February 11, 2008 (“the Agreement”), I agree to the
following release (the “Release”).

 

1.     On behalf of
myself, my heirs, executors, administrators, successors, and assigns, I hereby
fully and forever release and discharge Adobe, and each of its current, former
and future parents, subsidiaries, affiliated companies, related entities,
employee benefit plans, and its fiduciaries, predecessors, successors,
officers, directors, shareholders, agents, employees and assigns (collectively,
the “Company”) from any and all claims,
causes of action, and liabilities up through the date of my execution of the
Release which arise from or relate to my employment with the Company and the
termination of such employment.  All such
claims (including related attorneys’ fees and costs) are barred without regard
to whether those claims are based on any alleged breach of a duty arising in
statute, contract, or tort.  This
expressly includes waiver and release of any rights and claims relating to my
employment with the Company and the termination of such employment which arise
under any and all laws, rules, regulations, and ordinances including, but not
limited to: Title VII of the Civil Rights Act of 1964; the Older Workers
Benefit Protection Act; the Americans With Disabilities Act; the Age
Discrimination in Employment Act; the Fair Labor Standards Act; the National
Labor Relations Act; the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”); the Workers Adjustment and
Retraining Notification Act; the California Fair Employment and Housing Act;
the Equal Pay Act of 1963; and any similar law of any other state or governmental
entity.  California law shall apply in
interpreting this Release. Accordingly, I further waive any rights under Section 1542
of the Civil Code of the State of California or any similar state statute.  Section 1542 states: “A general release does not extend to claims which the creditor does not
know or suspect to exist in his/her favor at the time of executing the release,
which, if known to him/her, must have materially affected his/her settlement
with the debtor.”

 

2.     This Release
does not extend to, and has no effect upon, any benefits that have accrued, and
to which I have become vested or otherwise entitled, whether in connection with
my employment with the Company or the termination of that employment, under the
Agreement, any employee benefit plan within the meaning of ERISA sponsored by
the Company or under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”).  In addition,
this Release does not extend to and has no effect upon any of my rights that
may not be waived or released as a matter of law, including any rights that I
have or may have to indemnification by the Company under any then-effective
indemnification agreement or obligation, applicable law or the Company’s
Certificate of Incorporation or Bylaws with respect to acts or omissions that
occurred during the term of my employment with Adobe.

 

3.     I have been
advised to consult with an attorney of my choice prior to executing the
Release.  I understand that nothing in
this Release shall prohibit me from exercising legal rights that are, as a
matter of law, not subject to waiver such as: (a) my rights under
applicable workers’ compensation laws; (b) my right, if any, to seek
unemployment benefits; (c) my right to file a charge with the Equal
Opportunity Commission (EEOC) challenging the validity of my 

 

9

 

waiver
of claims under the ADEA;  (d) my
right to be
indemnified by Adobe under applicable law, Adobe’s Certificate of Incorporation
or Bylaws, or the terms of any then-effective indemnification agreement or
obligation; and (e) any indemnity or other
rights of mine that cannot be waived as a matter of law.

 

4.     I understand
and agree that Adobe will not provide me with the severance and other benefits
under the Agreement unless I timely execute the Release.  I acknowledge that that I have previously
received or will receive, regardless of the execution of the Release, all wages
owed to me, including any accrued but unused vacation pay, less applicable
withholdings and deductions, earned through my termination date.

 

5.     As part of my
existing and continuing obligations to Adobe, I have returned to Adobe all
Company documents (and all copies thereof) and other Company property that I
have had in my possession at any time, including but not limited to Company
files, notes, drawings, records, business plans and forecasts, financial
information, specification, computer-recorded information, tangible property
(including, but not limited to, computers, laptops, pagers, etc.), credit
cards, entry cards, identification badges and keys; and any materials of any
kind which contain or embody any proprietary or confidential information of the
Company (and all reproductions thereof). 
I understand that, even if I did not sign the Release, I would still be
bound by any and all confidential/proprietary/trade secret information,
non-disclosure and inventions assignment agreement(s) signed by me in
connection with my employment with the Company (“Employee
Agreements”), pursuant to the terms of such agreement(s).

 

6.     I represent and
warrant that I am the sole owner of all the claims released herein and that I
have not assigned or transferred any such claims to any other person or entity.

 

7.     I understand
and agree that the Release shall not be construed at any time as an admission
of liability or wrongdoing by the Company or myself.

 

8.     Any controversy
or any claim arising out of or relating to the interpretation, enforceability
or breach of this Release shall be settled in accordance with the provisions
set forth in the Agreement.

 

9.     I agree that I
have had at least [twenty-one (21)/forty-five (45) calendar days as required]
in which to consider whether to execute this Release, no one hurried me into
executing the Release during that period, and no one coerced me into executing
the Release. I understand that I may revoke the Release at any time during the
seven-day period after I sign it, by email notice of revocation to
[                ].
I further understand that Adobe’s obligations under the Release shall not
become effective or enforceable until the eighth (8th) calendar day
after the date I sign the Release (the “Effective Date”),
provided that I have (a) timely delivered the Release to Adobe prior to
the Effective Date, and (b) not revoked the Release prior to the Effective
Date.  I understand that the severance
benefits under Agreement under will become available to me in accordance with
Internal Revenue Code Section 409A.

 

10.   In executing the Release, I acknowledge that I have
not relied upon any statement made by the Company or any of its representatives
or employees, with regard to the Release unless the representation is
specifically included herein. 
Furthermore, the Release contains our entire understanding regarding
eligibility for and the payment of severance benefits and 

 

10

 

supersedes
any or all prior representations and agreements regarding the subject matter of
the Release.  However, the Release does
not modify, amend or supersede the Employee Agreements.  Once effective and enforceable, this Release
can only be changed by another written agreement signed by me and an authorized
representative of Adobe.

 

11.   Should any provision of the Release be determined by
an arbitrator or court of competent jurisdiction to be wholly or partially
invalid or unenforceable, the legality, validity and enforceability of the
remaining parts, terms, or provisions are intended to remain in full force and
effect.  I acknowledge that I have
obtained sufficient information to intelligently exercise my own judgment
regarding the terms of the Release before executing the Release.

 

11

 

EMPLOYEE’S ACCEPTANCE
OF RELEASE

 

BEFORE SIGNING MY NAME TO THE
RELEASE, I STATE THE FOLLOWING:  I HAVE
READ THE RELEASE, I UNDERSTAND IT AND I KNOW THAT I AM GIVING UP IMPORTANT
RIGHTS. I HAVE OBTAINED SUFFICIENT INFORMATION TO INTELLIGENTLY EXERCISE MY OWN
JUDGMENT. I HAVE BEEN ADVISED THAT I SHOULD CONSULT WITH AN ATTORNEY BEFORE
SIGNING IT, AND I HAVE SIGNED THE RELEASE KNOWINGLY AND VOLUNTARILY.

 

 

	
   

  	
  Executed this
                        
  day of
                        ,
  20    .

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Shantanu Narayen

  

 

12

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