Document:

Exhibit 10.7

 

SOLERA HOLDINGS,
LLC

 

2006 EMPLOYEE
SECURITIES PURCHASE PLAN

 

1.     Purpose
of Plan. This 2006 Employee Securities Purchase Plan (this “Plan”)
of Solera Holdings, LLC (the “Company”) is designed to provide
incentives to such present and future employees, directors, consultants or
advisers of the Company and its Subsidiaries, as may be selected in the sole
discretion of the Company’s Board of Managers (“Participants”), through
the sale of Class A Common Units to Participants. Such sale of Class A Common
Units to Participants is not intended to raise capital for the Company. Only
those Participants who are employees of the Company or one of its Subsidiaries
shall be eligible to participate in this Plan. Participation in this Plan is
voluntary. This Plan is intended to qualify under Rule 701 of the
Securities Act of 1933, as amended.

 

2.     Definitions.
Certain terms used in this Plan have the meanings set forth below:

 

“Board of Managers” means the board of managers
of the Company.

 

“Class A Common Units” means the Company’s
Class A Common Units (as defined in the LLC Agreement).

 

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

 

“Person” means an individual, a partnership, a
corporation, a limited liability company, an association and any other business
entity.

 

“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 (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, a majority of the limited liability company, 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 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 director or general partner of such limited liability company,
partnership, association or other business entity.

 

3.     Sale of
Class A Common Units. The Board of Managers shall have the power and
authority to sell to any Participant any Class A Common Units at any time prior
to the termination of this Plan in such quantity, at such price, on such terms
and subject to such conditions that are consistent with this Plan and
established by the Board of Managers. Class A Common Units sold under this Plan
shall be subject to such terms and evidenced by agreements as shall be
determined from time to time by the Board of Managers.

 

 

4.     Administration
of the Plan. The Board of Managers shall have the power and authority to
prescribe, amend and rescind rules and procedures governing the administration
of this Plan, including, but not limited to, the full power and authority (i)
to interpret the terms of this Plan and (ii) to determine the rights of any
Person under this Plan, or the meaning of requirements imposed by the terms of
this Plan or any rule or procedure established by the Board of Managers. Each
action of the Board of Managers shall be binding on all Persons.

 

5.     Taxes.
The Company shall be entitled, if necessary or desirable, to withhold (or
secure payment from a Participant in lieu of withholding) the amount of any
withholding or other tax due from the Company with respect to any amount
payable and/or shares issuable under this Plan, and the Company may defer such
payment or issuance unless indemnified to its satisfaction.

 

6.     Termination
and Amendment. The Board of Managers at any time may suspend or terminate
this Plan and make such additions or amendments as it deems advisable under
this Plan.

 

*   *   *   *   *

 

2Exhibit 10.10

 

 

UNIT
PURCHASE AGREEMENT

 

THIS UNIT PURCHASE AGREEMENT
(this “Agreement”) is made as of April 1, 2005, by and among Solera
Holdings, LLC, a Delaware limited liability company (the “Company”),
GTCR Fund VIII, L.P., a Delaware limited partnership (“Fund VIII”), GTCR
Fund VIII/B, L.P., a Delaware limited partnership (“Fund VIII/B”), and
GTCR Co-Invest II, L.P., a Delaware limited partnership (“GTCR Co-Invest”).
Each of Fund VIII, Fund VIII/B and GTCR Co-Invest, together with any investment
fund managed by GTCR Golder Rauner, L.L.C., a Delaware limited liability
company (“GTCR I”), or GTCR Golder Rauner II, L.L.C., a Delaware limited
liability company (“GTCR II”), that at any time executes a counterpart
of this Agreement or otherwise agrees to be bound by this Agreement shall be
referred to herein as an “Investor” and, collectively as the “Investors.”  Except as otherwise indicated herein,
capitalized terms used herein are defined in Section 6 hereof.

 

The parties hereto agree as follows:

 

Section  1.              Authorization and
Closing.

 

1A.          Authorization of the
Securities. The Company shall authorize the issuance and sale to the
Investors of up to 96,000of its
Class B Preferred Units (as defined in the LLC Agreement (as defined below))
(the “Class B Preferred Units”), and 40,000,000 of its Class A
Common Units (as defined in the LLC Agreement) (the “Class A Common Units”),
each having the rights and preferences set forth in Exhibit B attached
hereto. The Class B Preferred Units and the Class A Common Units are
collectively referred to herein as the “Securities.”

 

1B.          Purchase and Sale of
the Securities.

 

(a)           Initial
Closing. At the Initial Closing (as defined below), the Company shall sell
to the Investors and, subject to the terms and conditions set forth herein, the
Investors shall purchase from the Company, an aggregate of 40,000,000 Class A
Common Units at a price of $0.10 per unit and an aggregate of 1,000 Class B
Preferred Units at a price of $1,000.00 per unit. Each Investor shall purchase
the percentage of such Securities set forth next to such Investor’s name on the
Schedule of Investors attached hereto by payment of the aggregate
purchase price thereof by wire transfer of immediately available funds to such
account as is designated by the Company. The initial closing of the purchase
and sale of the Class A Common Units (the “Initial Closing”) shall take
place at the offices of Kirkland & Ellis LLP, 200 East Randolph Drive,
Chicago, Illinois 60601 at 10:00 a.m. on the date hereof. The proceeds of the Securities
sold to the Investors at the Initial Closing may be used by the Company and
Solera, Inc., a Delaware corporation (“Solera, Inc.”), for organic
growth and for general company purposes but shall not, without the prior
written consent of the Investors, be used by the Company or Solera, Inc. for
acquisitions or to fund the expenses of any businesses acquired by the Company.

 

(b)           The
Company has been organized for the purpose of building a business in the
insurance claims processing, analytics and outsourcing industry (the “Industry”)
through acquisitions and organic growth. In addition to the $5,000,000.00
invested by the Investors on the Initial Closing Date pursuant to Section
1B(a) above,the Investors may
provide up to

 

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$95,000,000.00 in additional equity financing to the
Company as the equity portion of the debt and equity financing necessary to
fund acquisitions, which are (i) approved by the Board of Managers of the
Company (the “Board”) and the Investors (an “Approved Acquisition”),
(ii) in the Industry or are synergistic with or otherwise complementary to the
business of the Company or its Subsidiaries in the Industry and (iii) generally
consistent with the characteristics for acquisitions set forth on the Schedule
of Acquisition Characteristics attached to this Agreement. The Investors’
obligation to purchase any Securities pursuant to this Section 1B will
be further conditioned on the Company’s not being in default under any of its
material agreements, adequate debt financing being available to fund any
Approved Acquisition on terms satisfactory to the Investors, and the Company’s
operations and the Approved Acquisition being satisfactory to the Investors. In
order to implement the foregoing, the Investors may purchase from time to time
after the Initial Closing, upon the written request of the Board in connection
with an Approved Acquisition, up to an aggregate of 95,000Class B Preferred Units at a price of
$1,000.00 per unit (the amounts set forth in this sentence as adjusted from
time to time as a result of unit dividends, unit splits, recapitalizations and
similar events) (each such purchase, a “Subsequent Closing”). Each
Subsequent Closing shall take place at the offices of Kirkland & Ellis LLP,
200 East Randolph Drive, Chicago, Illinois 60601 at 10:00 a.m. on such date as
may be mutually agreeable to the Company and the Investors. At the time of any
Subsequent Closing, the Investors shall be entitled to receive, and the Company
shall be obligated to deliver, satisfactory representations and warranties and
all other information and documentation as the Investors may reasonably request.
This Section 1(B)(b) shall terminate upon the first to occur of a
consummation of a Sale of the Company (as defined in the Securityholders
Agreement) and a Public Offering.

 

Section  2.              Conditions of the
Investors’ Obligation at the Initial Closing and each Subsequent Closing. The
obligation of each Investor to purchase and pay for the Securities to be
purchased by it at the Initial Closing is subject to the satisfaction as of the
Initial Closing of the following conditions (other than Section 2N) and
the obligation of each Investor to purchase and pay for the Securities to be
purchased by it at each Subsequent Closing is subject to the satisfaction as of
such Subsequent Closing of the conditions set forth in Section 2N:

 

2A.          Representations and
Warranties; Covenants. The representations and warranties contained in Section
5 hereof shall be true and correct at and as of the Initial Closing as
though then made, except to the extent of changes caused by the transactions
expressly contemplated herein, and the Company shall have performed in all
material respects all of the covenants required to be performed by it hereunder
prior to the Initial Closing.

 

2B.          Certificate of
Formation. The Company’s certificate of formation (the “Certificate of
Formation”) shall include the provisions set forth in Exhibit A
attached hereto, shall be in full force and effect under the laws of Delaware
as of the Initial Closing and shall not have been amended or modified.

 

2C.          Limited Liability
Company Agreement. The Company and the members of the Company shall have
entered into a Limited Liability Company Agreement in form and substance substantially
similar to Exhibit B attached hereto (the “LLC Agreement”), and
the LLC Agreement shall be in full force and effect as of the Initial Closing.

 

2

 

2D.          Initial Senior
Management Agreement. The Company and, as appropriate, one or more of its
subsidiaries shall have entered into a Senior Management Agreement (the “Initial
Senior Management Agreement”), in form and substance substantially similar
to Exhibit C attached hereto, with Tony Aquila (“Executive”). The
Initial Senior Management Agreement shall not have been amended or modified and
shall be in full force and effect as of the Initial Closing, and Executive
shall have purchased the Securities proposed to be purchased by him thereunder.

 

2E.           Securityholders
Agreement. The Company, the Investors and Executive shall have entered into
a securityholders agreement in form and substance substantially similar to Exhibit
D attached hereto (the “Securityholders Agreement”), and the
Securityholders Agreement shall be in full force and effect as of the Initial
Closing.

 

2F.           Registration
Agreement. The Company, the Investors and Executive shall have entered into
a registration rights agreement in form and substance substantially similar to Exhibit
E attached hereto (the “Registration Agreement”), and the
Registration Agreement shall be in full force and effect as of the Initial
Closing.

 

2G.          Professional Services
Agreement. Solera, Inc. and GTCR II shall have entered into a professional
services agreement in form and substance substantially similar to Exhibit F
attached hereto (the “Professional Services Agreement”), and the
Professional Services Agreement shall be in full force and effect as of the
Initial Closing.

 

2H.          Subsidiary Charter.
Solera, Inc. shall have duly adopted, executed and filed with the Secretary of
State of Delaware an amended and restated certificate of incorporation in form
and substance substantially similar to Exhibit G attached hereto (the “Charter”),
and the Charter shall continue to be in full force and effect as of the Initial
Closing and shall not have been further amended or modified.

 

2I.            Subsidiary Bylaws.
Solera, Inc. shall have duly adopted amended and restated bylaws in form and
substance substantially similar to Exhibit H attached hereto (the “Bylaws”),
and the Bylaws shall continue to be in full force and effect as of the Initial
Closing and shall not have been further amended or modified.

 

2J.           Initial Closing
Documents. The Company shall have delivered to the Investors all of the following
documents:

 

(a)           an
Officer’s Certificate, dated the date of the Initial Closing, stating that the
conditions specified in Section 1 and Sections 2A through 2I,
inclusive, have been fully satisfied;

 

(b)           certified
copies of the resolutions duly adopted by the Board and/or the board of
directors of Solera, Inc., as appropriate, authorizing the execution, delivery
and performance of this Agreement, the LLC Agreement, the Initial Senior
Management Agreement, the Securityholders Agreement, the Registration
Agreement, the Professional Services Agreement, and each of the other
agreements contemplated hereby (the “Transaction 

 

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Documents”), the issuance and sale
of the Securities and the consummation of all other transactions contemplated
by this Agreement;

 

(c)           certified
copies of the resolutions duly adopted by the board of directors of Solera,
Inc. adopting the Charter and the Bylaws; and

 

(d)           certified
copies of the Company’s Certificate of Formation and the LLC Agreement, each as
in effect at the Initial Closing.

 

2K.          Fees and Expenses.
The Company shall have reimbursed each Investor for its fees and expenses as
provided in Section 7A hereof.

 

2L.           Compliance with
Applicable Laws. The purchase of Securities by the Investors hereunder
shall not be prohibited by any applicable law or governmental regulation, shall
not subject any such Investor to any penalty, liability or, in each Investor’s
sole judgment, other onerous conditions under or pursuant to any applicable law
or governmental regulation, and shall be permitted by laws and regulations of
the jurisdictions to which any Investor is subject.

 

2M.         Consents and Approvals.
The Company shall have received or obtained all governmental, regulatory and
third party consents and approvals necessary for the consummation of the
transactions contemplated by the Initial Closing.

 

2N.          Conditions to
Subsequent Closings. The obligation of each Investor to purchase and pay
for the Securities at any Subsequent Closing is subject to the satisfaction as
of the Subsequent Closing of the following conditions:

 

(a)           Representations
and Warranties; Covenants. The representations and warranties contained in Section
5 hereof shall be true and correct at and as of such Subsequent Closing as
though then made, except to the extent of changes caused by the transactions
expressly contemplated herein or by the other Transaction Documents and except
for changes occurring in the ordinary course of the Company’s and its
Subsidiaries’ businesses that have not had a Material Adverse Effect (including
the filing of any material litigation against the Company or any Subsidiary or
the existence of any material dispute with any Person that involves a
reasonable likelihood of such litigation being commenced).

 

(b)           Consents
and Approvals. The Company shall have received or obtained all
governmental, regulatory and third party consents and approvals necessary for
the consummation of the transactions contemplated by such Subsequent Closing.

 

(c)           Compliance
with Applicable Laws. The purchase of Securities by the Investors hereunder
shall not be prohibited by any applicable law or governmental regulation, shall
not subject any such Investor to any penalty, liability or, in each Investor’s
sole judgment, other onerous conditions under or pursuant to any applicable law
or governmental regulation, and shall be permitted by laws and regulations of
the jurisdictions to which any Investor is subject.

 

4

 

2O.          Waiver. Any
condition specified in this Section 2 may be waived only if such waiver
is set forth in a writing executed by the Investors.

 

Section  3.              Covenants.

 

3A.          Financial Statements
and Other Information. The Company shall deliver to each Investor (so long
as such Investor holds any Securities) and to each holder of at least 15% of
the Investor Preferred and to each holder of at least 15% of the Investor
Common:

 

(a)           as
soon as available but in any event within 30 days after the end of each monthly
accounting period in each fiscal year, unaudited consolidating and consolidated
statements of income and cash flows of the Company and its Subsidiaries for
such monthly period and for the period from the beginning of the fiscal year to
the end of such month, and consolidating and consolidated balance sheets of the
Company and its Subsidiaries as of the end of such monthly period, all prepared
in accordance with United States generally accepted accounting principles,
consistently applied, subject to (i) the absence of footnote disclosures and
(ii) normal year-end adjustments;

 

(b)           as
soon as available but in any event within 30 days after the end of each
quarterly accounting period in each fiscal year, unaudited consolidated
statements of income and cash flows of the Company and its Subsidiaries for
such quarterly period and for the period from the beginning of the fiscal year
to the end of such quarter, and consolidated balance sheets of the Company and
its Subsidiaries as of the end of such quarterly period, all prepared in
accordance with United States generally accepted accounting principles,
consistently applied, subject to the absence of footnote disclosures and to
normal year-end adjustments, and such other modifications from GAAP as the
Board may authorize, together with a management discussion and analysis of
financial conditions and results of operations in a form reasonably
satisfactory to the Investors (an “MD&A”) and accompanied by an
Officer’s Certificate from either the chief executive officer or chief financial
officer of the Company stating the following: 
“To the knowledge of the undersigned, the information contained in the
financial statements attached to this certificate fairly presents, in all
material respects, the financial condition and results of operations of the
Company and its Subsidiaries.”;

 

(c)           accompanying
the financial statements referred to in subsections (a) and (b) above,
an Officer’s Certificate stating that, to such officer’s knowledge, neither the
Company nor any of its Subsidiaries is in material default under any of its
material agreements or, if any such default exists, specifying the nature and
period of existence thereof and what actions the Company and its Subsidiaries
have taken and propose to take with respect thereto;

 

(d)           within
90 days after the end of each fiscal year, consolidating and consolidated
statements of income and cash flows of the Company and its Subsidiaries for
such fiscal year, and consolidating and consolidated balance sheets of the
Company and its Subsidiaries as of the end of such fiscal year, setting forth
in each case comparisons to the annual budget and to the preceding fiscal year,
all prepared in accordance with United States generally accepted accounting
principles, consistently applied, together with an MD&A, and accompanied by
(i) with respect to the consolidated portions of such statements (except with
respect to budget data), an opinion containing no exceptions or qualifications
(except for qualifications regarding 

 

5

 

specified contingent liabilities) of an independent
accounting firm of recognized national standing reasonably acceptable to the
Majority Holders, (ii) a copy of such accounting firm’s annual management
letter to the Board, and (iii) an Officer’s Certificate from either the chief
executive officer or chief financial officer of the Company stating the
following:  “To the knowledge of the
undersigned, the information contained in the financial statements attached to
this certificate fairly presents, in all material respects, the financial
condition and results of operations of the Company and its Subsidiaries.”;

 

(e)           promptly
upon receipt thereof, any additional reports, management letters or other
detailed information concerning significant aspects of the Company’s operations
or financial affairs given to the Company by its independent accountants (and
not otherwise contained in other materials provided hereunder);

 

(f)            at
least 30 days prior to the beginning of each fiscal year, an annual budget
prepared on a monthly basis for the Company and its Subsidiaries for such
fiscal year (displaying anticipated statements of income and cash flows), and
promptly upon preparation thereof any other significant budgets prepared by the
Company and any revisions of such annual or other budgets, and within 30 days
after any monthly period in which there is a material adverse deviation from
the annual budget, an Officer’s Certificate explaining the deviation and what
actions the Company has taken and proposes to take with respect thereto;

 

(g)           promptly
(but in any event within seven business days) after:

 

(i)                            the
discovery or receipt of notice of any default under any agreement to which the
Company or any of its Subsidiaries is a party that is reasonably likely to have
a Material Adverse Effect (as defined herein);

 

(ii)                           any
litigation, action, investigation or proceeding is commenced, or to the
knowledge of the Company or any Subsidiary, is threatened to be, or has a
reasonable likelihood of being (based on the existence of any material dispute
with any Person or otherwise), commenced and that is, or any pending
litigation, action, investigation or proceeding that becomes, reasonably likely
to (A) have a material adverse effect on the ability of the Company or any
Subsidiary to perform its material obligations under its agreements, (B) have a
Material Adverse Effect or (C) constitute or result in a material breach of any
representation, warranty, covenant or agreement set forth in any material
agreements;

 

(iii)                          any
material casualty, damage, destruction, loss or forfeiture (whether or not
covered by insurance and whether or not in the ordinary course of business or
consistent with past practice) of or to property of the Company and its
Subsidiaries having a Material Adverse Effect;

 

(iv)                          any
material change in the conduct of the business of the Company or any
Subsidiary, or any material change in the manner in which the Company or any
Subsidiary markets, produces, distributes or sells its products and services, in
each such case which has had or may reasonably be expected to have a Material
Adverse Effect;

 

6

 

(v)                           any
material change in any accounting procedures, practices or the basis of
accounting of the Company or any Subsidiary; or

 

(vi)                          any
other transaction, event or circumstance affecting the Company or any
Subsidiary reasonably likely to have a Material Adverse Effect (including any
material alteration or change in the business plan or strategy of the Company or
any Subsidiary);

 

a written notice setting forth in reasonable detail
the facts and circumstances relating to any of the above-listed items, which
notice shall include a copy of any material documentation received or obtained
by the Company or its Subsidiaries in relation thereto;

 

(h)           promptly
(but in any event within 5 business days) after the discovery or receipt of
notice of any default under any material agreement to which the Company or any
of its Subsidiaries is a party or any other event or circumstance affecting the
Company or any Subsidiary that is reasonably likely to have a Material Adverse
Effect (including the filing of any material litigation against the Company or
any Subsidiary or the existence of any material dispute with any Person that
involves a reasonable likelihood of such litigation being commenced), an
Officer’s Certificate specifying the nature and period of existence thereof and
what actions the Company and its Subsidiaries have taken and propose to take
with respect thereto;

 

(i)            promptly
(but in any event within 5 business days) days after transmission thereof,
copies of all financial statements, proxy statements, reports and any other
general written communications that the Company sends to its equityholders and
copies of all registration statements and all regular, special or periodic
reports that it files, or any of its officers or directors file with respect to
the Company, with the Securities and Exchange Commission or with any securities
exchange on which any of the Company’s securities are then listed, and copies
of all press releases and other statements made available generally by the
Company to the public concerning material developments in the Company’s and its
Subsidiaries’ businesses; and

 

(j)            with
reasonable promptness, such other information and financial data concerning the
Company and its Subsidiaries as any Person entitled to receive information
under this Section 3A may reasonably request.

 

Each of the financial
statements referred to in subsections (a), (b) and (d)
shall be true and correct in all material respects as of the dates and for the
periods stated therein, subject in the case of the unaudited financial
statements to changes resulting from normal year-end audit adjustments (none of
which would, alone or in the aggregate, be materially adverse to the financial
condition, operating results, assets, operations or business prospects of the
Company and its Subsidiaries taken as a whole). In connection with the Company’s
annual audit, the Company shall request that the Company’s auditors perform
certain procedures regarding executive compensation and expense reimbursements
and related party transactions as the Majority Holders reasonably request.

 

3B.          Management Rights.
The Company shall permit any representatives designated by any Investor (so
long as such Investor holds any Securities) or any holder of at least 15% of
the Investor Preferred or at least 15% of the Investor Common, upon reasonable 

 

7

 

notice and during normal business hours and at such
other times as any such holder may reasonably request, to (a) visit and inspect
any of the properties of the Company and its Subsidiaries, (b) examine the
corporate and financial records of the Company and its Subsidiaries and make
copies thereof or extracts therefrom and (c) discuss the affairs, finances and
accounts of any such entities with the directors, officers, key employees and
independent accountants of the Company and its Subsidiaries; provided
that the Company shall have the right to have its chief financial officer
present at any meetings with the Company’s independent accountants.

 

3C.          Restrictions. The
Company shall not, without the prior written consent of the Majority Holders:

 

(a)           directly
or indirectly declare or pay any dividends or make any distributions upon any
of its equity securities, other than distributions of unpaid yield or
unreturned capital on the Class A Preferred Units or the Class B Preferred
Units pursuant to the LLC Agreement;

 

(b)           directly
or indirectly redeem, purchase or otherwise acquire, or permit any Subsidiary
to redeem, purchase or otherwise acquire, any of the Company’s equity
securities (including, without limitation, warrants, options and other rights
to acquire equity securities);

 

(c)           except
as expressly contemplated by this Agreement or the Senior Management
Agreements, authorize, issue, sell or enter into any agreement providing for
the issuance (contingent or otherwise), or permit any Subsidiary to authorize,
issue, sell or enter into any agreement providing for the issuance (contingent
or otherwise) of, (i) any notes or debt securities containing equity features
(including, without limitation, any notes or debt securities convertible into
or exchangeable for equity securities, issued in connection with the issuance
of equity securities or containing profit participation features) or (ii) any
equity securities (or any securities convertible into or exchangeable for any
equity securities) or rights to acquire any equity securities, other than the
issuance of equity securities by a Subsidiary to the Company or another
Subsidiary;

 

(d)           make,
or permit any Subsidiary to make, any loans or advances to, guarantees for the
benefit of, or Investments in, any Person, except for (i) reasonable advances
to employees in the ordinary course of business as well as travel advances,
(ii) relocation loans, (iii) trade credit extended to customers in the ordinary
course of business and (iv) Investments having a stated maturity no greater
than one year from the date the Company makes such Investment in (A)
obligations of the United States government or any agency thereof or
obligations guaranteed by the United States government, (B) certificates of
deposit of commercial banks having combined capital and surplus of at least $50
million, (C) commercial paper with a rating of at least “Prime-1” by Moody’s
Investors Service, Inc. or (D) money market accounts investing in any of the
foregoing or in substantially similar investments;

 

(e)           merge
or consolidate with any Person or permit any Subsidiary to merge or consolidate
with any Person (other than a wholly-owned Subsidiary);

 

8

 

(f)            sell,
lease or otherwise dispose of, or permit any Subsidiary to sell, lease or
otherwise dispose of, more than 5% of the consolidated assets of the Company
and its Subsidiaries (computed on the basis of book value, determined in
accordance with United States generally accepted accounting principles
consistently applied, or fair market value, determined by the Board in its
reasonable good faith judgment) in any transaction or series of related
transactions (other than sales of inventory in the ordinary course of
business);

 

(g)           except
as contemplated by the LLC Agreement and the Securityholders Agreement in
connection with a Public Offering, liquidate, dissolve or effect a
recapitalization or reorganization in any form of transaction (including,
without limitation, any reorganization into a corporation or a partnership);

 

(h)           acquire,
or permit any Subsidiary to acquire, any interest in any business (whether by a
purchase of assets, purchase of securities, merger or otherwise), or enter into
any joint venture;

 

(i)            enter
into the ownership, active management or operation of any business other than
the ownership of the securities of its Subsidiaries or permit any Subsidiary to
enter into the ownership, active management or operation of any business other
than a business whose principal
business activities are in, or relate to, the insurance claims processing,
analytics and outsourcing industry;

 

(j)            enter
into, or permit any Subsidiary to enter into, any transaction with any of its
or any Subsidiary’s officers, directors, employees or Affiliates or any
individual related by blood, marriage or adoption to any such Person (a “Relative”)
or any entity in which any such Person or individual owns a beneficial interest
(a “Related Entity”), except for normal employment arrangements and
benefit programs on reasonable terms and except as otherwise expressly
contemplated by this Agreement, the Senior Management Agreements and the
Professional Services Agreement;

 

(k)           become
subject to, or permit any of its Subsidiaries to become subject to, any
agreement or instrument that by its terms would (under any circumstances)
restrict (i) the right of any Subsidiary to make loans or advances or pay
dividends to, transfer property to, or repay any Indebtedness owed to, the
Company or any Subsidiary or (ii) the Company’s right to perform the provisions
of this Agreement, the Certificate of Formation, the LLC Agreement or the other
Transaction Documents;

 

(l)            except
as expressly contemplated by this Agreement, make any amendment to the
Certificate of Formation or the LLC Agreement that would increase the number of
authorized Securities or adversely affect or otherwise impair the rights or the
relative preferences and priorities of the holders of the Securities under this
Agreement, the Certificate of Formation, the LLC Agreement or the other
Transaction Documents; or

 

(m)          create,
incur, assume or suffer to exist, or permit any Subsidiary to create, incur,
assume or suffer to exist, Indebtedness exceeding the amounts approved therefor
by the Board in the annual budget.

 

9

 

3D.          Affirmative Covenants.
So long as the Investors hold any Securities, the Company shall, and shall
cause each Subsidiary to:

 

(a)           comply
with all applicable laws, rules and regulations of all governmental
authorities, the violation of which would reasonably be expected to have a
Material Adverse Effect, and pay and discharge when payable all taxes,
assessments and governmental charges (except to the extent the same are being
contested in good faith and adequate reserves therefor have been established);
and

 

(b)           enter
into and maintain appropriate nondisclosure and noncompete agreements with its
key employees.

 

3E.           Current Public
Information. At all times after the Company (or its successor) has filed a
registration statement with the Securities and Exchange Commission pursuant to
the requirements of either the Securities Act or the Securities Exchange Act,
the Company (or its successor) shall file all reports required to be filed by
it under the Securities Act and the Securities Exchange Act and the rules and
regulations adopted by the Securities and Exchange Commission thereunder and
shall take such further action as any holder or holders of Restricted
Securities may reasonably request, all to the extent required to enable such
holders to sell Restricted Securities pursuant to (a) Rule 144 adopted by the
Securities and Exchange Commission under the Securities Act (as such rule may
be amended from time to time) or any similar rule or regulation hereafter
adopted by the Securities and Exchange Commission or (b) a registration
statement on Form S-2 or S-3 or any similar registration form hereafter adopted
by the Securities and Exchange Commission. Upon request, the Company (or its
successor) shall deliver to any holder of Restricted Securities a written
statement as to whether it has complied with such requirements.

 

3F.           Amendment of Other
Agreements. The Company shall not amend, modify or waive any provision of
the Senior Management Agreements or any other agreement with key executives of
the Company without the prior written consent of the Majority Holders. The
Company shall enforce the provisions of the Senior Management Agreements and
any other agreement with key executives of the Company and shall exercise all
of its rights and remedies thereunder (including, without limitation, any
repurchase options and first refusal rights) unless it is otherwise directed by
the Majority Holders.

 

3G.          Public Disclosures.
The Company shall not, nor shall it permit any Subsidiary to, disclose any
Investor’s name or identity as an investor in the Company in any press release
or other public announcement or in any document or material filed with any
governmental entity (other than tax filings in the ordinary course), without
the prior written consent of such Investor, unless such disclosure is required
by applicable law or governmental regulations or by order of a court of
competent jurisdiction, in which case prior to making such disclosure the
Company shall give written notice to such Investor describing in reasonable
detail the proposed content of such disclosure and shall permit such Investor
to review and comment upon the form and substance of such disclosure.

 

3H.          Unrelated Business
Taxable Income; Effectively Connected Income. The Company shall not engage
in any transaction which is reasonably likely to cause any Investor or 

 

10

 

any limited partner thereof that is exempt from income
taxation under Section 501(a) of the IRC and, if applicable, any pension plan
that any such trust may be a part of, to recognize unrelated business taxable
income as defined in Section 512 and Section 514 of the IRC. The Company will
use reasonable best efforts not to engage in, or invest in any Person that is
treated as a flow-through entity for U.S. federal income tax purposes that
engages in, (a) any “commercial activity” as defined in Section 892(a)(2)(i) of
the IRC or (b) transactions which will cause the Company to incur income that
is effectively connected with a “trade or business within the United States” as
defined in Section 864(b) of the IRC.

 

3I.            Hart-Scott-Rodino
Compliance. In connection with any transaction in which the Company is
involved (a “Transaction”) that is required to be reported under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended from time to
time (the “HSR Act”), the Company shall prepare and file all documents
with the Federal Trade Commission and the United States Department of Justice
which may be required to comply with the HSR Act, and shall promptly furnish
all materials thereafter requested by any of the regulatory agencies having
jurisdiction over such filings, in connection with a Transaction. The Company
shall take all reasonable actions and shall file and use reasonable best efforts
to have declared effective or approved all documents and notifications with any
governmental or regulatory bodies, as may be necessary or may reasonably be
requested under federal antitrust laws for the consummation of the Transaction.
Notwithstanding the foregoing, if any Investor, rather than the Company, is
required to make a filing under the HSR Act in connection with a Transaction,
the Company will provide to such Investor all necessary information for such
filing, will facilitate such filing and will pay all fees and expenses
associated with such filing.

 

3J.           Additional
Accounting Procedures. Upon the reasonable request of the Investors, the
Company and its Subsidiaries will cause their accounting firm to conduct
additional procedures with respect to, and monitor and evaluate, the Company’s
and any Subsidiary’s executive compensation, expense reimbursement and
related-party transactions policies and practices.

 

3K.          Stock Purchase
Agreement. Within fourteen (14) calendar days of the Initial Closing, the
Company shall, and the Company shall cause Solera, Inc. to, enter into a stock
purchase agreement on terms substantially similar to the terms set forth
herein.

 

Section  4.              Transfer of
Restricted Securities.

 

(a)           Restricted
Securities are transferable only pursuant to (i) Public Offerings, (ii) Rule
144 of the Securities and Exchange Commission (or any similar rule or rules
then in force) if such rule or rules are available and (iii) subject to the
conditions specified in clause (b) below, any other legally available
means of transfer.

 

(b)           In
connection with the transfer of any Restricted Securities (other than a
transfer described in Sections 4(a)(i) or (ii) above or to any
Affiliate of an Investor), the holder thereof shall deliver written notice to
the Company describing in reasonable detail the transfer or proposed transfer. If
the holder of the Restricted Securities delivers to the Company an opinion of
Kirkland & Ellis LLP or other counsel that no subsequent transfer of such
Restricted Securities shall require registration under the Securities Act, the
Company shall promptly upon 

 

11

 

such contemplated transfer deliver to the prospective
transferor new certificates for such Restricted Securities that do not bear the
Securities Act legend set forth in Section 7C. If the Company is not
required to deliver new certificates for such Restricted Securities not bearing
such legend, the holder thereof shall not transfer the same until the
prospective transferee has confirmed to the Company in writing its agreement to
be bound by the conditions contained in this Section 4 and Section 7C.

 

(c)           Upon
the request of an Investor, the Company shall promptly supply to such Investor
or its prospective transferees all information regarding the Company required
to be delivered in connection with a transfer pursuant to Rule 144A of the
Securities and Exchange Commission.

 

Section  5.              Representations
and Warranties of the Company. As a material inducement to each Investor to
enter into this Agreement and purchase the Securities, the Company hereby
represents and warrants to each Investor that:

 

5A.          Organization and
Corporate Power. The Company is a limited liability company duly organized,
validly existing and in good standing under the laws of Delaware and is
qualified to do business in every jurisdiction in which the failure to so
qualify might reasonably be expected to have a Material Adverse Effect. The
Company has all requisite limited liability company power and authority and all
material licenses, permits and authorizations necessary to own and operate its
properties, to carry on its businesses as now conducted and presently proposed
to be conducted and to carry out the transactions contemplated by this
Agreement. The copies of the Company’s Certificate of Formation and the LLC
Agreement that have been furnished to the Investors reflect all amendments made
thereto at any time prior to the date of this Agreement and are correct and
complete.

 

5B.          Equity Securities and
Related Matters.

 

(a)           As
of the Initial Closing and immediately thereafter, the authorized equity
securities of the Company shall consist of the following: (i) an unlimited
number of units designated as Class A Preferred Units, none of which shall be
issued and outstanding and all of which may only be issued in exchange for
other equity securities of the Company pursuant to the terms of the Senior
Management Agreements; (ii) an unlimited number of units designated as Class B
Preferred Units, 1,016.625 shall be issued and outstanding, 95,000 of which
shall be reserved for issuance to the Investors pursuant to Section 1B
hereof, 1,579.373ofwhich shall be reserved for issuance to the Executive pursuant to
the Initial Senior Management Agreement to which Executive is a party; (iii) an
unlimited number of units designated as Class A Common Units, 44,040,021 of
which shall be issued and outstanding; (iv) an unlimited number of units
designated as Class B Common Units (as defined in the LLC Agreement), none of
which shall be issued and outstanding; and (v) 3,857,170 Common Units shall be
reserved for issuance to other executives and/or managers of the Company and
its Subsidiaries as determined by the Board. As of the Initial Closing, the
Company shall not have outstanding any securities convertible or exchangeable
for any equity securities of the Company or containing any profit participation
features, nor shall it have outstanding any rights or options to subscribe for
or to purchase its equity securities or any securities convertible into or
exchangeable for its equity securities or any equity appreciation rights or
phantom equity plans other than pursuant to and as contemplated by 

 

12

 

this Agreement, the LLC Agreement and the Senior
Management Agreements. As of the Initial Closing, the Company shall not be
subject to any obligation (contingent or otherwise) to repurchase or otherwise
acquire or retire any of its equity securities or any warrants, options or
other rights to acquire its equity securities, except obligations, if any,
pursuant to this Agreement, the LLC Agreement, the Senior Management Agreements
and the Company’s Certificate of Formation. As of the Initial Closing, all of
the Company’s outstanding equity securities shall be validly issued, fully paid
and nonassessable.

 

(b)           There
are no statutory or, to the best of the Company’s knowledge, contractual
securityholders preemptive rights or rights of refusal with respect to the
issuance of the Securities hereunder or the issuance of the Securities pursuant
to Section 1B(b), except as expressly contemplated in the
Securityholders Agreement, the LLC Agreement or as provided herein. Based in
part on the investment representations of the Investors in Section 7C
hereof and of Executive in Section 1(e) of the Initial Senior Management
Agreement, the Company has not violated any applicable federal or state
securities laws in connection with the offer, sale or issuance of any of its
equity securities, and the offer, sale and issuance of the Securities hereunder
and pursuant to Section 1B(b) hereof do not and will not require
registration under the Securities Act or any applicable state securities laws. To
the best of the Company’s knowledge, there are no agreements between the
Company’s securityholders with respect to the voting or transfer of the Company’s
equity securities or with respect to any other aspect of the Company’s affairs,
except for the Securityholders Agreement, the LLC Agreement, the Initial Senior
Management Agreement, the Registration Agreement and the Professional Services
Agreement.

 

5C.          Subsidiaries;
Investments. Immediately after the consummation of the Initial Closing,
Solera, Inc. will be the Company’s only Subsidiary. Immediately after the
consummation of the Initial Closing, the Company will own 100% of the capital
stock of Solera, Inc. Solera, Inc. is duly organized, validly existing and in
good standing under the laws of Delaware, possesses all requisite corporate
power and authority and all material licenses, permits and authorizations
necessary to own its properties and to carry on its business as now being
conducted and as presently proposed to be conducted and is qualified to do
business in every jurisdiction in which its ownership of property or the
conduct of its business requires it to qualify.

 

5D.          Authorization; No
Breach. The execution, delivery and performance of this Agreement, the LLC
Agreement, the Initial Senior Management Agreement, the Securityholders
Agreement, the Registration Agreement, the Professional Services Agreement, and
all other agreements contemplated hereby or thereby to which the Company is a
party, have been duly authorized by the Company. This Agreement, the Initial
Senior Management Agreement, the LLC Agreement, the Securityholders Agreement,
the Registration Agreement, the Professional Services Agreement, the
Certificate of Formation and all other agreements contemplated hereby or
thereby each constitutes a valid and binding obligation of the Company,
enforceable in accordance with its terms. The execution and delivery by the
Company of this Agreement, the LLC Agreement, the Initial Senior Management
Agreement, the Securityholders Agreement, the Registration Agreement, the
Professional Services Agreement, and all other agreements contemplated hereby
or thereby to which the Company is a party, the offering, sale and issuance of
the Securities hereunder (including pursuant to Section 1B(b)) and the 

 

13

 

fulfillment of and compliance with the respective
terms hereof and thereof by the Company do not and will not (a) conflict with
or result in a breach of the terms, conditions or provisions of, (b) constitute
a default under, (c) result in the creation of any lien, security interest,
charge or encumbrance upon the Company’s equity securities or assets pursuant
to, (d) give any third party the right to modify, terminate or accelerate any
obligation under, (e) result in a violation of, or (f) require any
authorization, consent, approval, exemption or other action by or notice to any
court or administrative or governmental body pursuant to, the Certificate of
Formation of the Company or the LLC Agreement, or any law, statute, rule or
regulation to which the Company is subject, or any agreement, instrument,
order, judgment or decree to which the Company is a party or by which it is
bound.

 

5E.           Conduct of Business;
Liabilities.

 

(a)           Other
than the negotiation, execution and delivery of this Agreement, the Initial
Senior Management Agreement, the Securityholders Agreement, the Registration
Agreement, the Professional Services Agreement and the other agreements
contemplated hereby and thereby, prior to the Initial Closing, the Company has
not (i) conducted any business, (ii) incurred any expenses, obligations or
liabilities (whether accrued, absolute, contingent, unliquidated or otherwise,
whether or not known to the Company and whether due or to become due and
regardless of when asserted), (iii) owned any assets, (iv) entered into any contracts
or agreements, or (v) violated any laws or governmental rules or regulations.

 

(b)           Except
as set forth on the Schedule of Subsidiary Activities attached hereto
and other than the negotiation, execution and delivery of the Professional
Services Agreement and the Initial Senior Management Agreement, and the other
agreements contemplated hereby and thereby, prior to the Initial Closing,
Solera, Inc. has not (i) conducted any business, (ii) incurred any expenses,
obligations or liabilities (whether accrued, absolute, contingent, unliquidated
or otherwise, whether or not known to Solera, Inc. and whether due or to become
due and regardless of when asserted), (iii) owned any assets, (iv) entered into
any contracts or agreements, or (v) violated any laws or governmental rules or
regulations.

 

5F.           Litigation, etc.
There are no actions, suits, proceedings, orders, investigations or claims
pending or, to the best of the Company’s knowledge, threatened against or
affecting either the Company or Solera, Inc. (or to the best of the Company’s
knowledge, pending or threatened against or affecting any of the officers,
directors or employees of the Company or Solera, Inc. with respect to their
businesses or proposed business activities) at law or in equity, or before or
by any governmental department, commission, board, bureau, agency or
instrumentality with respect to the transactions contemplated by this
Agreement.

 

5G.          Brokerage. There
are no claims for brokerage commissions, finders’ fees or similar compensation
in connection with the transactions contemplated by this Agreement based on any
arrangement or agreement binding upon the Company. The Company shall pay, and
hold the Investors harmless against, any liability, loss or expense (including,
without limitation, attorneys’ fees and out-of-pocket expenses) arising in
connection with any such claim.

 

5H.          Governmental Consent,
etc. No permit, consent, approval or authorization of, or declaration to or
filing with, any governmental authority is required in connection with the 

 

14

 

execution, delivery and performance by the Company of
this Agreement or the other agreements contemplated hereby, or the consummation
by the Company of any other transactions contemplated hereby or thereby.

 

5I.            Disclosure. Neither
this Agreement nor any of the schedules, attachments, written statements,
documents, certificates or other items prepared or supplied to the Investors by
or on behalf of the Company with respect to the transactions contemplated
hereby contain any untrue statement of a material fact or omit a material fact
necessary to make each statement contained herein or therein not misleading. There
is no fact which the Company has not disclosed to the Investors in writing and
of which any of its officers, directors, managers or executive employees is
aware and which has had or might reasonably be anticipated to have a Material
Adverse Effect.

 

5J.           Initial Closing Date.
The representations and warranties of the Company contained in this Section
5 and elsewhere in this Agreement and all information contained in any
exhibit, schedule or attachment hereto or in any writing delivered by, or on
behalf of, the Company to the Investors shall be true and correct in all
material respects on the date of the Initial Closing as though then made,
except as affected by the transactions expressly contemplated by this
Agreement.

 

Section  6.              Definitions. For
the purposes of this Agreement, the following terms have the meanings set forth
below:

 

“Affiliate” of any particular Person means any
other Person controlling, controlled by or under common control with such
particular Person or entity; it being understood and agreed that GTCR II and
its Affiliates shall for all purposes hereunder be Affiliates of GTCR I. For
purposes of this Agreement, all holdings of Class B Preferred Units and Class A
Common Units by Persons who are Affiliates of each other shall be aggregated
for purposes of meeting any threshold tests under this Agreement.

 

“Class A Preferred Units” means the Class A
Preferred Units, as defined in the LLC Agreement.

 

“Indebtedness” means all indebtedness for
borrowed money (including purchase money obligations) maturing one year or more
from the date of creation or incurrence thereof or renewable or extendible at
the option of the debtor to a date one year or more from the date of creation
or incurrence thereof, all indebtedness under revolving credit arrangements
extending over a year or more, all capitalized lease obligations and all
guarantees of any of the foregoing.

 

“Investor Common” means (i) any Class A Common
Units issued pursuant to this Agreement and (ii) any Class A Common Units
issued or issuable with respect to the Class A Common Units referred to in clause
(i) above by way of unit dividends or unit splits or in connection with a
combination of units, recapitalization, merger, consolidation or other
reorganization. As to any particular units of Investor Common, such units shall
cease to be Investor Common when they have been (a) effectively registered
under the Securities Act and disposed of in accordance with the registration
statement covering them or (b) distributed to the 

 

15

 

public through a broker,
dealer or market maker pursuant to Rule 144 under the Securities Act (or any
similar rule then in force).

 

“Investor Preferred” means (i) the Class B
Preferred Units issued hereunder (including, without limitation, pursuant to
Section 1B(b)), and (ii) any Class B Preferred Units issued or issuable with
respect to the Class B Preferred Units referred to in clause (i) above by way
of unit dividends or unit splits or in connection with a combination of units,
recapitalization, merger, consolidation or other reorganization. As to any
particular units of Investor Preferred, such units shall cease to be Investor
Preferred when they have been (a) effectively registered under the Securities
Act and disposed of in accordance with the registration statement covering them
or (b) distributed to the public through a broker, dealer or market maker
pursuant to Rule 144 under the Securities Act (or any similar rule then in
force).

 

“Investor Securities” means, collectively, the
Investor Preferred and the Investor Common.

 

“Investment” as applied to any Person means (i)
any direct or indirect purchase or other acquisition by such Person of any
notes, obligations, instruments, stock, securities or ownership interest
(including partnership interests and joint venture interests) of any other
Person and (ii) any capital contribution by such Person to any other Person.

 

“IRC” means the Internal Revenue Code of 1986,
as amended, and any reference to any particular IRC Section shall be
interpreted to include any revision of or successor to that Section regardless
of how numbered or classified.

 

“Majority Holders” means the holders of a
majority of the Investor Preferred or, if no Investor Preferred is outstanding,
the holders of a majority of the Investor Common.

 

“Material Adverse Effect” means a material
adverse effect on the business, liabilities, operations, properties, assets,
operating results, prospects or condition (financial or otherwise) of the
Company and its Subsidiaries taken as a whole.

 

“Officer’s Certificate” means a certificate
signed by the Company’s chief executive officer or its chief financial officer,
stating that (i) the officer signing such certificate has made or has caused to
be made such investigations as are necessary in order to permit such officer to
verify the accuracy of the information set forth in such certificate and (ii)
to the best of such officer’s knowledge, such certificate does not misstate any
material fact and does not omit to state any fact necessary to make the
certificate not misleading.

 

“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, an
investment fund, any other business entity and a governmental entity or any
department, agency or political subdivision thereof.

 

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

 

16

 

“Restricted Securities” means (i) the
Securities issued hereunder and pursuant to Section 1B(b) hereof and
(ii) any securities issued with respect to the securities referred to in clause
(i) above by way of a unit dividend or unit split or in connection with a
combination of units, recapitalization, merger, consolidation or other
reorganization. As to any particular Restricted Securities, such securities
shall cease to be Restricted Securities when they have (a) been effectively
registered under the Securities Act and disposed of in accordance with the
registration statement covering them, (b) become eligible for sale pursuant to
Rule 144(k) (or any similar provision then in force) under the Securities Act
or (c) been otherwise transferred and new certificates for them not bearing the
Securities Act legend set forth in Section 7C have been delivered by the
Company in accordance with Section 4(b). Whenever any particular
securities cease to be Restricted Securities, the holder thereof shall be
entitled to receive from the Company, without expense, new securities of like
tenor not bearing a Securities Act legend of the character set forth in Section
7C.

 

“Securities Act” means the Securities Act of
1933, as amended, or any similar federal law then in force.

 

“Securities Exchange Act” means the Securities
Exchange Act of 1934, as amended, or any similar federal law then in force.

 

“Securities and Exchange Commission” includes
any governmental body or agency succeeding to the functions thereof.

 

“Senior Management Agreement” means any Senior
Management Agreement entered into from time to time among the Company, Solera,
Inc. (or any other Subsidiaries of the Company) and its executives, as the same
may be amended from time to time pursuant to the terms thereof (including, without
limitation, the Initial Senior Management Agreement and any other agreements
designated as Senior Management Agreements for the sale of equity securities
between the Company and any employees or other service providers of the Company
or its Subsidiaries, as approved by the Board).

 

“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 

 

17

 

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.

 

Section  7.              Miscellaneous.

 

7A.          Expenses. The
Company agrees to pay, and hold the Investors and all holders of Investor
Securities harmless against liability for the payment of, (a) the reasonable
fees and expenses of their counsel arising in connection with the negotiation
and execution of this Agreement and the consummation of the transactions
contemplated by this Agreement (including, without limitation, fees and
expenses arising with respect to any subsequent purchase of Securities pursuant
to Section 1B(b) hereof), (b) the fees and expenses incurred with
respect to any amendments or waivers (whether or not the same become effective)
under or in respect of this Agreement, the LLC Agreement, the Senior Management
Agreements, the Securityholders Agreement, the Registration Agreement, the
Professional Services Agreement, the other agreements contemplated hereby or
thereby and the Certificate of Formation, (c) stamp and other taxes that may be
payable in respect of the execution and delivery of this Agreement or the
issuance, delivery or acquisition of any Securities purchased hereunder or in
accordance with Section 1B(b) hereof, (d) the fees and expenses incurred
with respect to the interpretation or enforcement of the rights granted under
this Agreement, the LLC Agreement, the Senior Management Agreements, the
Securityholders Agreement, the Registration Agreement, the Professional
Services Agreement, the other agreements contemplated hereby or thereby and the
Certificate of Formation and (e) such reasonable travel expenses, legal fees
and other out-of-pocket fees and expenses as have been or may be incurred by
any Investor, its Affiliates and its Affiliates’ directors, officers and
employees in connection with any Company-related financing and in connection
with the rendering of any other services by an Investor or its Affiliates
(including, but not limited to, fees and expenses incurred in attending board
of managers or other Company-related meetings).

 

7B.          Remedies. Each
holder of Investor Securities shall have all rights and remedies set forth in
this Agreement, the LLC Agreement, the Securityholders Agreement, the
Registration Agreement and the Certificate of Formation and all rights and
remedies that such holders have been granted at any time under any other
agreement or contract and all of the rights that such holders have under any
law. Any Person having any rights under any provision of this Agreement shall
be entitled to enforce such rights specifically (without posting a bond or
other security), to recover damages by reason of any breach of any provision of
this Agreement and to exercise all other rights granted by law.

 

7C.          Each Investor’s
Investment Representations. Each Investor hereby represents (a) that it is
acquiring the Restricted Securities purchased hereunder or acquired pursuant
hereto for its own account with the present intention of holding such
securities for purposes of investment, and that it has no intention of selling
such securities in a public distribution in violation of the federal securities
laws or any applicable state securities laws, (b) that it is an “accredited
investor” and a sophisticated investor for purposes of applicable U.S. federal
and state securities laws and regulations, (c) that the Restricted Securities
were not offered to such Investor by any means of general solicitation or
general advertising, (d) that it believes that it has such knowledge and
experience in financial and business matters that such Investor is capable of
evaluating the merits and risks of an investment in the Company, (e) that it

 

18

 

is able to bear the economic risks of an investment in
the Restricted Securities and could afford a complete loss of such investment,
(f) that this Agreement and each of the other agreements contemplated hereby
constitutes (or will constitute) the legal, valid and binding obligation of
such Investor, enforceable in accordance with its terms and (g) that the
execution, delivery and performance of this Agreement and such other agreements
by such Investor does not and will not conflict with, violate or cause a breach
of any agreement, contract or instrument to which such Investor is subject. Notwithstanding
the foregoing, nothing contained herein shall prevent any Investor and
subsequent holders of Restricted Securities from transferring such securities
in compliance with the provisions of Section 4 hereof. Each certificate
for Restricted Securities shall be imprinted with a legend in substantially the
following form:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE
ORIGINALLY ISSUED ON                  ,
200      AND HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED. THE TRANSFER OF THE SECURITIES REPRESENTED
BY THIS CERTIFICATE IS SUBJECT TO THE CONDITIONS SPECIFIED IN THE UNIT PURCHASE
AGREEMENT, DATED AS OF APRIL 1, 2005 BY AND AMONG THE ISSUER (THE “COMPANY”)
AND CERTAIN INVESTORS, AS AMENDED, AND THE COMPANY RESERVES THE RIGHT TO REFUSE
THE TRANSFER OF SUCH SECURITIES UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED WITH
RESPECT TO SUCH TRANSFER. A COPY OF SUCH CONDITIONS SHALL BE FURNISHED BY THE
COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST AND WITHOUT CHARGE.”

 

7D.          Consent to Amendments.
Except as otherwise expressly provided herein, the provisions of this Agreement
may be amended and the Company may take any action herein prohibited, or omit
to perform any act herein required to be performed by it, only if the Company
has obtained the prior written consent of the Majority Holders. This Agreement
may not be amended without the written consent of the Company and the Majority
Holders. No other course of dealing between the Company and the holder of any
Securities or any delay in exercising any rights hereunder or under the LLC
Agreement shall operate as a waiver of any rights of any such holders. For
purposes of this Agreement, Securities held by the Company or any of its
Subsidiaries shall not be deemed to be outstanding.

 

7E.           Survival of
Representations and Warranties. All representations and warranties
contained herein or made in writing by any party in connection herewith shall
survive the execution and delivery of this Agreement and the consummation of
the transactions contemplated hereby, regardless of any investigation made by
an Investor or on its behalf.

 

7F.           Successors and
Assigns. Except as otherwise expressly provided herein, all covenants and agreements
contained in this Agreement by or on behalf of any of the parties hereto shall
bind and inure to the benefit of the respective successors and assigns of the
parties hereto whether so expressed or not. In addition, and whether or not any
express assignment has been made, the provisions of this Agreement that are for
each Investor’s benefit as a purchaser or holder of Securities are also for the
benefit of, and enforceable by, any subsequent holder of such 

 

19

 

Securities. The rights and obligations of each
Investor under this Agreement and the agreements contemplated hereby may be
assigned by such Investor at any time, in whole or in part, to any investment
fund managed by GTCR I or GTCR II or any successor thereto.

 

7G.          Generally Accepted
Accounting Principles. Where any accounting determination or calculation is
required to be made under this Agreement or the exhibits hereto, such
determination or calculation (unless otherwise provided) shall be made in
accordance with United States generally accepted accounting principles,
consistently applied, except that if because of a change in United States
generally accepted accounting principles the Company would have to alter a
previously utilized accounting method or policy in order to remain in
compliance with United States generally accepted accounting principles, such
determination or calculation shall continue to be made in accordance with the
Company’s previous accounting methods and policies.

 

7H.          Severability.
Whenever possible, each provision of this Agreement shall be interpreted in
such manner as to be effective and valid under applicable law, but if any
provision of this Agreement is held to be invalid, illegal or unenforceable in
any respect under any applicable law or rule in any jurisdiction, 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.

 

7I.            Counterparts. This
Agreement may be executed simultaneously in two or more counterparts, any one
of which need not contain the signatures of more than one party, but all such
counterparts taken together shall constitute one and the same Agreement.

 

7J.           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.

 

7K.          Descriptive Headings;
Interpretation. The descriptive headings of this Agreement are inserted for
convenience only and do not constitute a section of this Agreement. The use of
the word “including” in this Agreement shall be by way of example rather than
by limitation.

 

7L.           Governing Law. The
Delaware Limited Liability Company Act shall govern all issues concerning the
relative rights of the Company and its securityholders. All other questions
concerning the construction, validity and interpretation of this Agreement and
the 

 

20

 

exhibits and schedules hereto shall 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.

 

7M.         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 OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

 

7N.          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 (a) delivered personally to the recipient, (b)
sent to the recipient by reputable express courier service (charges prepaid),
(c) mailed to the recipient by certified or registered mail, return receipt
requested and postage prepaid, or (d) telecopied to the recipient (with hard
copy sent to the recipient by reputable overnight courier service (charges
prepaid) that same day) if telecopied before 5:00 p.m. Chicago, Illinois time
on a business day, and otherwise on the next business day. Such notices,
demands and other communications shall be sent to the Investors and to the
Company at the addresses indicated below (or at such other address as shall be
given in writing by one party to the others):

 

If to the Company:

 

Solera Holdings, LLC

12230 El Camino Real

Suite 200

San Diego, CA  92130

Attention:  Chief Executive Officer

Telephone:  (858)
812-2870

Facsimile:    (858)
812-3011

 

21

 

with copies to:

 

GTCR Golder Rauner,
L.L.C.

6100 Sears Tower

Chicago, Illinois  60606-6402

Attention:   Philip
A. Canfield

Craig A. Bondy

Telephone:  (312)
382-2200

Facsimile:   (312)
382-2201

 

Kirkland & Ellis LLP

200 East Randolph Drive

Chicago, Illinois  60601

Attention:   Stephen
L. Ritchie, P.C.

Telephone: (312) 861-2000

Facsimile:  (312) 861-2200

 

If to any of the Investors:

 

GTCR Golder Rauner, L.L.C.

6100 Sears Tower

Chicago, Illinois  60606-6402

Attention:   Philip
A. Canfield

Craig A. Bondy

Telephone:  (312)
382-2200

Facsimile:   (312) 382-2201

 

with a copy to:

 

Kirkland & Ellis LLP

200 East Randolph Drive

Chicago, Illinois  60601

Attention:   Stephen
L. Ritchie, P.C.

Telephone: (312) 861-2000

Facsimile:  (312) 861-2200

 

or to such other address
or to the attention of such other person as the recipient party has specified
by prior written notice to the sending party.

 

22

 

7O.          Entire Agreement.
This Agreement, those documents expressly referred to herein and other
documents of even date herewith embody the complete agreement and understanding
among the parties and supersede and preempt any prior understandings,
agreements or representations by or among the parties, written or oral, that
may have related to the subject matter hereof in any way.

 

7P.           No Strict
Construction. The parties hereto have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the parties hereto, and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of the authorship
of any of the provisions of this Agreement.

 

*     *    
*     *     *

 

23

IN WITNESS WHEREOF, the parties hereto have executed
this Unit Purchase Agreement as of the date first above written.

 

	
   

  	
  SOLERA
  HOLDINGS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tony Aquila

  	
   

  
	
   

  	
  Name:

  	
  Tony Aquila

  
	
   

  	
  Its:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GTCR
  FUND VIII, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GTCR Partners VIII,
  L.P.

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GTCR Golder Rauner II, L.L.C.

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip A. Canfield

  	
   

  
	
   

  	
  Name:

  	
  Philip A. Canfield

  
	
   

  	
  Its:

  	
  Principal

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GTCR
  FUND VIII/B, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GTCR Partners VIII,
  L.P.

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GTCR Golder Rauner II, L.L.C.

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip A. Canfield

  	
   

  
	
   

  	
  Name:

  	
  Philip A. Canfield

  
	
   

  	
  Its:

  	
  Principal

  
	
   

  	
   

  	
   

  
	
   

  	
  GTCR
  CO-INVEST II, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GTCR Golder Rauner II, L.L.C.

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip A. Canfield

  	
   

  
	
   

  	
  Name:

  	
  Philip A. Canfield

  
	
   

  	
  Its:

  	
  Principal

  

 

24

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