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exhibit417-descriptionof

    Doc#: US1:14586845v3  Exhibit 4.17  DESCRIPTION OF THE REGISTRANT’S SECURITIES  REGISTERED PURSUANT TO SECTION 12 OF THE   SECURITIES EXCHANGE ACT OF 1934     In this document, the “Company,” “we,” “us” and “our” refer to Driven Brands Holdings Inc., a Delaware  corporation. The following description of our capital stock summarizes certain provisions of our Amended and  Restated Certificate of Incorporation (the “Certificate of Incorporation”) and our Amended and Restated Bylaws  (the “Bylaws”). The description is intended as a summary, and is qualified in its entirety by reference to our  Certificate of Incorporation and our Bylaws, copies of which have been filed as exhibits to this Annual Report on  Form 10-K. References to our “Principal Stockholders” refer to Driven Investor LLC and RC IV Cayman ICW  Holdings LLC.  Authorized Capital  Our Certificate of Incorporation authorizes capital stock consisting of:       •   900,000,000 shares of common stock, par value $0.01 per share (the “common stock”); and       •   100,000,000 shares of preferred stock, par value $0.01 per share (the “preferred stock”).  Our common stock is registered under Section 12(b) of the Securities Exchange Act of 1934, as amended (the  “Exchange Act”), and is listed on the NASDAQ Global Select Market (the “NASDAQ”) under the symbol  “DRVN”.   Common Stock  Voting Rights. Holders of our common stock are entitled to one vote for each share held of record on all  matters to which stockholders are entitled to vote generally, including the election or removal of directors. The  holders of our common stock do not have cumulative voting rights in the election of directors.  Dividends. Section 203 of the Delaware General Corporation Law (the “DGCL”) permits a corporation to  declare and pay dividends out of “surplus” or, if there is no “surplus,” out of its net profits for the fiscal year in  which the dividend is declared and/or the preceding fiscal year. “Surplus” is defined as the excess of the net assets of  the corporation over the amount determined to be the capital of the corporation by the board of directors. The capital  of the corporation is typically calculated to be (and cannot be less than) the aggregate par value of all issued shares  of capital stock. Net assets equals the fair value of the total assets minus total liabilities. The DGCL also provides  that dividends may not be paid out of net profits if, after the payment of the dividend, capital is less than the capital  represented by the outstanding stock of all classes having a preference upon the distribution of assets.  Declaration and payment of any dividend is subject to the discretion of our board of directors. The time and  amount of dividends are dependent upon our financial condition, operations, cash requirements and availability, debt  repayment obligations, capital expenditure needs and restrictions in our debt instruments, industry trends, the  provisions of Delaware law affecting the payment of dividends to stockholders and any other factors our board of  directors may consider relevant.  Liquidation. Upon our liquidation, dissolution or winding up and after payment in full of all amounts required  to be paid to creditors and to the holders of preferred stock having liquidation preferences, if any, the holders of our  common stock are entitled to receive pro rata our remaining assets available for distribution.  Rights and Preferences. Holders of our common stock do not have preemptive, subscription, redemption or  conversion rights. The common stock is not subject to further calls or assessment by us. There are no redemption or  sinking fund provisions applicable to the common stock. All outstanding shares of our common stock are fully paid  

 

2    Doc#: US1:14586845v3  and non-assessable. The rights, powers, preferences and privileges of holders of our common stock are subject to  those of the holders of any shares of our preferred stock we may authorize and issue in the future.     Preferred Stock  Our Certificate of Incorporation authorizes our board of directors to establish one or more series of preferred  stock (including convertible preferred stock). Unless required by law, the authorized shares of preferred stock will  be available for issuance without further action by the shareholders of our common stock. Our board of directors  may determine, with respect to any series of preferred stock, the powers (including voting powers), preferences and  relative participations, optional or other special rights, and the qualifications, limitations or restrictions thereof, of  that series, including, without limitation:       •   the designation of the series;        •   the number of shares of the series, which our board of directors may, except where otherwise provided in  the preferred stock designation, increase (but not above the total number of authorized shares of the class)  or decrease (but not below the number of shares then outstanding);       •   whether dividends, if any, will be cumulative or non-cumulative and the dividend rate of the series;       •   the dates at which dividends, if any, will be payable;       •   the redemption rights and price or prices, if any, for shares of the series;       •   the terms and amounts of any sinking fund provided for the purchase or redemption of shares of the series;       •   the amounts payable on shares of the series in the event of any voluntary or involuntary liquidation, dissolution or winding-up of the affairs of our Company;        •   whether the shares of the series will be convertible into shares of any other class or series, or any other  security, of our Company or any other corporation, and, if so, the specification of the other class or series  or other security, the conversion price or prices or rate or rates, any rate adjustments, the date or dates as  of which the shares will be convertible and all other terms and conditions upon which the conversion may  be made;       •   restrictions on the issuance of shares of the same series or of any other class or series; and       •   the voting rights, if any, of the holders of the series.  We could issue a series of preferred stock that could, depending on the terms of the series, impede or  discourage an acquisition attempt or other transaction that some, or a majority, of shareholders of our common stock  might believe to be in their best interests or in which they might receive a premium for their common stock over the  market price of the common stock. Additionally, the issuance of preferred stock may adversely affect the holders of  our common stock by restricting dividends on the common stock, diluting the voting power of the common stock or  subordinating the liquidation rights of the common stock. As a result of these or other factors, the issuance of  preferred stock could have an adverse impact on the market price of our common stock.  Anti-Takeover Effects of Our Certificate of Incorporation and Bylaws and Certain Provisions of Delaware  Law  Our Certificate of Incorporation, Bylaws and the DGCL, which are summarized in the following paragraphs,  contain provisions that are intended to enhance the likelihood of continuity and stability in the composition of our  board of directors. These provisions are intended to avoid costly takeover battles, reduce our vulnerability to a  hostile change of control and enhance the ability of our board of directors to maximize stockholder value in  connection with any unsolicited offer to acquire us. However, these provisions may have an anti-takeover effect and  may delay, deter or prevent a merger or acquisition of our Company by means of a tender offer, a proxy contest or  other takeover attempt that a stockholder might consider in its best interest, including those attempts that might  result in a premium over the prevailing market price for the shares of common stock held by stockholders.     Authorized but Unissued Capital Stock  

 

3    Doc#: US1:14586845v3  Delaware law does not require stockholder approval for any issuance of authorized shares. However, the  listing requirements of NASDAQ, which apply so long as our common stock remains listed on the NASDAQ,  require stockholder approval of certain issuances equal to or exceeding 20% of the then outstanding voting power or  then outstanding number of shares of common stock. These additional shares may be used for a variety of corporate  purposes, including future public offerings, to raise additional capital or to facilitate acquisitions.  Our board of directors may generally issue preferred shares on terms calculated to discourage, delay or  prevent a change of control of our Company or the removal of our management. Moreover, our authorized but  unissued shares of preferred stock will be available for future issuances without stockholder approval and could be  utilized for a variety of corporate purposes, including future offerings to raise additional capital, acquisitions and  employee benefit plans.  One of the effects of the existence of unissued and unreserved common stock or preferred stock may be to  enable our board of directors to issue shares to persons friendly to current management, which issuance could render  more difficult or discourage an attempt to obtain control of our Company by means of a merger, tender offer, proxy  contest or otherwise, and thereby protect the continuity of our management and possibly deprive our stockholders of  opportunities to sell their shares of common stock at prices higher than prevailing market prices.  Classified Board of Directors  Our Certificate of Incorporation provides that our board of directors is divided into three classes of directors,  with the classes to be as nearly equal in number as possible, and with the directors serving three-year terms. As a  result, approximately one-third of our board of directors are elected each year. The classification of directors has the  effect of making it more difficult for stockholders to change the composition of our board of directors. Our  Certificate of Incorporation and Bylaws provide that, subject to any rights of holders of preferred stock to elect  additional directors under specified circumstances or to any rights granted to our Principal Stockholders under our  stockholders agreement, the number of directors is fixed from time to time exclusively pursuant to a resolution  adopted by the board of directors.  Business Combinations  We have opted out of Section 203 of the DGCL; however, our Certificate of Incorporation contains similar  provisions providing that we may not engage in certain “business combinations” with any “interested stockholder”  for a three-year period following the time that the stockholder became an interested stockholder, unless:       •   prior to such time, our board of directors approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;        •   upon consummation of the transaction that resulted in the stockholder becoming an interested  stockholder, the interested stockholder owned at least 85% of our voting stock outstanding at the time the  transaction commenced, excluding certain shares; or        •   at or subsequent to that time, the business combination is approved by our board of directors and by the  affirmative vote of holders of at least 66 2/3% of the outstanding voting stock that is not owned by the  interested stockholder.  Generally, a “business combination” includes a merger, asset or stock sale or other transaction resulting in a  financial benefit to the interested stockholder. Subject to certain exceptions, an “interested stockholder” is a person  who, together with that person’s affiliates and associates, owns, or within the previous three years owned, 15% or  more of our voting stock. For purposes of this section only, “voting stock” has the meaning given to it in  Section 203 of the DGCL.     Under certain circumstances, this provision will make it more difficult for a person who would be an  “interested stockholder” to effect various business combinations with a corporation for a three-year period. This  provision may encourage companies interested in acquiring our Company to negotiate in advance with our board of  directors because the stockholder approval requirement would be avoided if our board of directors approves either  the business combination or the transaction which results in the stockholder becoming an interested stockholder.  

 

4    Doc#: US1:14586845v3  These provisions also may have the effect of preventing changes in our board of directors and may make it more  difficult to accomplish transactions which stockholders may otherwise deem to be in their best interests.  Our Certificate of Incorporation provides that our Principal Stockholders and their affiliates and any of their  respective direct or indirect transferees and any group as to which such persons are a party do not constitute  “interested stockholders” for purposes of this provision.  Removal of Directors; Vacancies  Under the DGCL, unless otherwise provided in our Certificate of Incorporation, directors serving on a  classified board may be removed by the stockholders only for cause. Our Certificate of Incorporation provides that  directors may be removed with or without cause upon the affirmative vote of a majority in voting power of all  outstanding shares of stock entitled to vote thereon, voting together as a single class; provided, however, at any time  when our Principal Stockholders and their affiliates beneficially own, in the aggregate, less than 50% in voting  power of the stock of the Company entitled to vote generally in the election of directors, directors may only be  removed for cause, and only by the affirmative vote of holders of at least 66 2/3% in voting power of all the then- outstanding shares of stock of the Company entitled to vote thereon, voting together as a single class. In addition,  our Certificate of Incorporation also provides that, subject to the rights granted to one or more series of preferred  stock then outstanding or the rights granted under the stockholders agreement with affiliates of our Principal  Stockholders, any vacancies on our board of directors are filled only by the affirmative vote of a majority of the  remaining directors, even if less than a quorum, by a sole remaining director or by the stockholders; provided,  however, at any time when our Principal Stockholders and their affiliates beneficially own, in the aggregate, less  than 40% in voting power of the stock of the Company entitled to vote generally in the election of directors, any  newly created directorship on the board of directors that results from an increase in the number of directors and any  vacancy occurring in the board of directors may, subject to any rights granted to our Principal Stockholders under  our stockholders agreement, only be filled by a majority of the directors then in office, although less than a quorum,  or by a sole remaining director (and not by stockholders).  No Cumulative Voting  Under Delaware law, the right to vote cumulatively does not exist unless the certificate of incorporation  specifically authorizes cumulative voting. Our Certificate of Incorporation does not authorize cumulative voting.  Therefore, stockholders holding a majority in voting power of the shares of our stock entitled to vote generally in the  election of directors are able to elect all our directors.  Special Stockholder Meetings  Our Certificate of Incorporation provides that special meetings of our stockholders may be called at any time  only by or at the direction of the board of directors or the chairman of the board of directors; provided, however, so  long as our Principal Stockholders and their affiliates own, in the aggregate, less than 40% in voting power of the  stock of the Company entitled to vote generally in the election of directors, special meetings of our stockholders  shall also be called by the board of directors or the chairman of the board of directors at the request of our Principal  Stockholders and their affiliates. Our Bylaws prohibit the conduct of any business at a special meeting other than as  specified in the notice for such meeting. These provisions may have the effect of deferring, delaying or discouraging  hostile takeovers, or changes in control or management of our Company.       Requirements for Advance Notification of Director Nominations and Stockholder Proposals  Our Bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of  candidates for election as directors, other than nominations made by or at the direction of the board of directors or a  committee of the board of directors. In order for any matter to be “properly brought” before a meeting, a stockholder  must comply with advance notice requirements and provide us with certain information. Generally, to be timely, a  stockholder’s notice must be received at our principal executive offices not less than 90 days nor more than 120 days  prior to the first anniversary date of the immediately preceding annual meeting of stockholders. Our Bylaws also  specify requirements as to the form and content of a stockholder’s notice. Our Bylaws allow the chairman of the  

 

5    Doc#: US1:14586845v3  meeting at a meeting of the stockholders to adopt rules and regulations for the conduct of meetings which may have  the effect of precluding the conduct of certain business at a meeting if the rules and regulations are not followed.  These provisions may also defer, delay or discourage a potential acquirer from conducting a solicitation of proxies  to elect the acquirer’s own slate of directors or otherwise attempting to influence or obtain control of our Company.  Stockholder Action by Written Consent  Pursuant to Section 228 of the DGCL, any action required to be taken at any annual or special meeting of the  stockholders may be taken without a meeting, without prior notice and without a vote if a consent or consents in  writing, setting forth the action so taken, is signed by the holders of outstanding stock having not less than the  minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares  of our stock entitled to vote thereon were present and voted, unless our Certificate of Incorporation provides  otherwise. Our Certificate of Incorporation precludes stockholder action by written consent at any time when our  Principal Stockholders and their affiliates beneficially own, in the aggregate, less than 40% in voting power of the  stock of the Company entitled to vote generally in the election of directors; provided, that any action required or  permitted to be taken by the holders of preferred stock, voting separately as a series or separately as a class with one  or more other such series, may be taken by written consent to the extent provided by the applicable certificate of  designation relating to such series.  Supermajority Provisions  Our Certificate of Incorporation and Bylaws provide that the board of directors is expressly authorized to  make, alter, amend, change, add to, rescind or repeal, in whole or in part, our Bylaws without a stockholder vote in  any matter not inconsistent with the laws of the State of Delaware or our Certificate of Incorporation. For as long as  our Principal Stockholders and their affiliates beneficially own, in the aggregate, at least 40% in voting power of the  stock of the Company entitled to vote generally in the election of directors, any amendment, alteration, rescission or  repeal of our Bylaws by our stockholders requires the affirmative vote of a majority in voting power of the  outstanding shares of our stock present in person or represented by proxy and entitled to vote on such amendment,  alteration, rescission or repeal. At any time when our Principal Stockholders and their affiliates beneficially own, in  the aggregate, less than 40% in voting power of the stock of the Company entitled to vote generally in the election  of directors, any amendment, alteration, rescission or repeal of our Bylaws by our stockholders requires the  affirmative vote of the holders of at least 66 2/3% in voting power of all the then-outstanding shares of stock of the  Company entitled to vote thereon, voting together as a single class.  The DGCL provides generally that the affirmative vote of a majority of the outstanding shares entitled to vote  thereon, voting together as a single class, is required to amend a corporation’s certificate of incorporation, unless the  certificate of incorporation requires a greater percentage.  Our Certificate of Incorporation provides that at any time when our Principal Stockholders and their affiliates  beneficially own, in the aggregate, less than 40% in voting power of the stock of the Company entitled to vote  generally in the election of directors, the following provisions in our Certificate of Incorporation may be amended,  altered, repealed or rescinded only by the affirmative vote of the holders of at least 66 2/3% in voting power of all  the then-outstanding shares of stock of the Company entitled to vote thereon, voting together as a single class:       •   the provision requiring a 66 2/3% supermajority vote for stockholders to amend our Bylaws;       •   the provisions providing for a classified board of directors (the election and term of our directors);       •   the provisions regarding resignation and removal of directors;       •   the provisions regarding competition and corporate opportunities;       •   the provisions regarding entering into business combinations with interested stockholders;       •   the provisions regarding stockholder action by written consent;       •   the provisions regarding calling special meetings of stockholders;       •   the provisions regarding filling vacancies on our board of directors and newly created directorships;  

 

6    Doc#: US1:14586845v3       •   the provisions eliminating monetary damages for breaches of fiduciary duty by a director; and       •   the amendment provision requiring that the above provisions be amended only with a 66 2/3% supermajority vote.  The combination of the classification of our board of directors, the lack of cumulative voting and the  supermajority voting requirements make it more difficult for our existing stockholders to replace our board of  directors as well as for another party to obtain control of us by replacing our board of directors. Because our board  of directors has the power to retain and discharge our officers, these provisions could also make it more difficult for  existing stockholders or another party to effect a change in management.  These provisions may have the effect of deterring hostile takeovers, delaying, or preventing changes in control  of our management or our Company, such as a merger, reorganization or tender offer. These provisions are intended  to enhance the likelihood of continued stability in the composition of our board of directors and its policies and to  discourage certain types of transactions that may involve an actual or threatened acquisition of us. These provisions  are designed to reduce our vulnerability to an unsolicited acquisition proposal. The provisions are also intended to  discourage certain tactics that may be used in proxy fights. However, such provisions could have the effect of  discouraging others from making tender offers for our shares and, as a consequence, they also may inhibit  fluctuations in the market price of our shares that could result from actual or rumored takeover attempts. Such  provisions may also have the effect of preventing changes in management.  Dissenters’ Rights of Appraisal and Payment  Under the DGCL, with certain exceptions, our stockholders have appraisal rights in connection with a merger  or consolidation of us. Pursuant to the DGCL, stockholders who properly request and perfect appraisal rights in  connection with such merger or consolidation will have the right to receive payment of the fair value of their shares  as determined by the Delaware Court of Chancery.  Stockholders’ Derivative Actions  Under the DGCL, any of our stockholders may bring an action in our name to procure a judgment in our  favor, also known as a derivative action, provided that the stockholder bringing the action is a holder of our shares at  the time of the transaction to which the action relates or such stockholder’s stock thereafter devolved by operation of  law.      Exclusive Forum  Our Certificate of Incorporation provides that unless we consent to the selection of an alternative forum, the  Court of Chancery of the State of Delaware shall, to the fullest extent permitted by law, be the sole and exclusive  forum for any (i) derivative action or proceeding brought on behalf of our Company, (ii) action asserting a claim of  breach of a fiduciary duty owed by any director or officer of our Company to the Company or the Company’s  stockholders, creditors or other constituents, (iii) action asserting a claim against the Company or any director or  officer of the Company arising pursuant to any provision of the DGCL or our Certificate of Incorporation or our  Bylaws or (iv) action asserting a claim against the Company or any director or officer of the Company governed by  the internal affairs doctrine; provided, that, if and only if the Court of Chancery of the State of Delaware dismisses  any such action for lack of subject matter jurisdiction, such action may be brought in another state court sitting in the  State of Delaware, or if no state court of the State of Delaware has jurisdiction, the federal district court for the  District of Delaware, unless we consent in writing to the selection of an alternative forum. Additionally, our  Certificate of Incorporation states that the foregoing provision will not apply to claims arising under the Securities  Act of 1933, as amended, (the “Securities Act”), the Exchange Act or other federal securities laws for which there is  exclusive federal or concurrent federal and state jurisdiction. Unless we consent in writing to the selection of an  alternative forum, the federal district courts of the United States of America shall be the exclusive forum for the  resolution of any complaint asserting a cause of action arising under the Securities Act. The exclusive forum  provisions may limit a stockholder’s ability to bring a claim in a judicial forum that it finds favorable for disputes  with us or any of our directors, officers or stockholders, which may discourage lawsuits with respect to such claims.  

 

7    Doc#: US1:14586845v3  Our stockholders will not be deemed to have waived our compliance with the federal securities laws and the rules  and regulations thereunder as a result of our exclusive forum provisions.   Conflicts of Interest  Delaware law permits corporations to adopt provisions renouncing any interest or expectancy in certain  opportunities that are presented to the corporation or its officers, directors or stockholders. Our Certificate of  Incorporation, to the maximum extent permitted from time to time by Delaware law, renounces any interest or  expectancy that we have in, or right to be offered an opportunity to participate in, specified business opportunities  that are from time to time presented to our officers, directors or stockholders or their respective affiliates, other than  those officers, directors, stockholders or affiliates who are our or our subsidiaries’ employees. Our Certificate of  Incorporation provides that, to the fullest extent permitted by law, each of our Principal Stockholders or any of their  affiliates or any director who is not employed by us (including any non-employee director who serves as one of our  officers in both his director and officer capacities) or his or her affiliates has no duty to refrain from (i) engaging in a  corporate opportunity in the same or similar lines of business in which we or our affiliates now engage or propose to  engage or (ii) otherwise competing with us or our affiliates. In addition, to the fullest extent permitted by law, in the  event that our Principal Stockholders or any of their affiliates or any non-employee director acquires knowledge of a  potential transaction or other business opportunity which may be a corporate opportunity for itself or himself or its  or his affiliates or for us or our affiliates, such person has no duty to communicate or offer such transaction or  business opportunity to us or any of our affiliates and they may take any such opportunity for themselves or offer it  to another person or entity. Our Certificate of Incorporation does not renounce our interest in any business  opportunity that is expressly offered to a non-employee director solely in his or her capacity as a director or officer  of the Company. To the fullest extent permitted by law, no business opportunity is deemed to be a potential  corporate opportunity for us unless we would be permitted to undertake the opportunity under our Certificate of  Incorporation, we have sufficient financial resources to undertake the opportunity and the opportunity would be in  line with our business.       Limitations on Liability and Indemnification of Officers and Directors  The DGCL authorizes corporations to limit or eliminate the personal liability of directors to corporations and  their stockholders for monetary damages for breaches of directors’ fiduciary duties, subject to certain exceptions.  Our Certificate of Incorporation includes a provision that eliminates the personal liability of directors for monetary  damages for any breach of fiduciary duty as a director, except to the extent such exemption from liability or  limitation thereof is not permitted under the DGCL. The effect of these provisions is to eliminate the rights of us and  our stockholders, through stockholders’ derivative suits on our behalf, to recover monetary damages from a director  for breach of fiduciary duty as a director, including breaches resulting from grossly negligent behavior. However,  exculpation does not apply to any director if the director has acted in bad faith, knowingly or intentionally violated  the law, authorized illegal dividends, repurchases or redemptions or derived an improper benefit from his or her  actions as a director.  Our Bylaws provide that we must generally indemnify, and advance expenses to, our directors and officers to  the fullest extent authorized by the DGCL. We also are expressly authorized to carry directors’ and officers’ liability  insurance providing indemnification for our directors, officers and certain employees for some liabilities. We  believe that these indemnification and advancement provisions and insurance are useful to attract and retain  qualified directors and executive officers.  The limitation of liability, indemnification and advancement provisions in our Certificate of Incorporation and  Bylaws may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duty.  These provisions also may have the effect of reducing the likelihood of derivative litigation against directors and  officers, even though such an action, if successful, might otherwise benefit us and our stockholders. In addition,  shareholders may be adversely affected to the extent we pay the costs of settlement and damage awards against  directors and officers pursuant to these indemnification provisions.  There is currently no pending material litigation or proceeding involving any of our directors, officers or  employees for which indemnification is sought.exhibit1011-shareholdera

STOCKHOLDERS AGREEMENT  DATED AS OF JANUARY 15, 2021  AMONG  DRIVEN BRANDS HOLDINGS INC.  AND  THE OTHER PARTIES HERETO Exhibit 10.11 

 

  i  Doc#: US1:13601293v14  TABLE OF CONTENTS   INTRODUCTORY MATTERS ................................................................................. 1  1.1 Defined Terms .................................................................................................................. 1  1.2 Construction ..................................................................................................................... 4   CORPORATE GOVERNANCE MATTERS ........................................................... 4  2.1 Election of Directors ........................................................................................................ 4  2.2 Consent Rights ................................................................................................................. 5  2.3 Permitted Disclosure ........................................................................................................ 7   INFORMATION ...................................................................................................... 7  3.1 Books and Records; Access ............................................................................................. 7  3.2 Confidentiality .................................................................................................................. 8   GENERAL PROVISIONS ...................................................................................... 8  4.1 Termination ...................................................................................................................... 8  4.2 Notices .............................................................................................................................. 9  4.3 Amendment; Waiver ...................................................................................................... 10  4.4 Further Assurances ......................................................................................................... 10  4.5 Assignment ..................................................................................................................... 10  4.6 Indemnification .............................................................................................................. 10  4.7 Third Parties ................................................................................................................... 13  4.8 Reimbursement of Expenses .......................................................................................... 13  4.9 Governing Law ............................................................................................................... 13  4.10 Jurisdiction; Waiver of Jury Trial .................................................................................. 13  4.11 Specific Performance ..................................................................................................... 14  4.12 Entire Agreement ........................................................................................................... 14  4.13 Severability..................................................................................................................... 14  4.14 Table of Contents, Headings and Captions .................................................................... 14  4.15 Counterparts ................................................................................................................... 15  4.16 Effectiveness .................................................................................................................. 15  4.17 No Recourse ................................................................................................................... 15    

 

    Doc#: US1:13601293v14 1  STOCKHOLDERS AGREEMENT  This Stockholders Agreement is entered into as of January 15, 2021 by and  among Driven Brands Holdings Inc., a Delaware corporation (the “Company”), and each of the  Principal Stockholders.  BACKGROUND:  WHEREAS, the Company is currently contemplating an underwritten initial  public offering (“IPO”) of shares of its Common Stock (as defined below); and  WHEREAS, in connection with, and effective upon, the date of completion of the  IPO (the “Closing Date”), the Company and the Principal Stockholders wish to set forth certain  understandings between such parties, including with respect to certain governance matters.  NOW, THEREFORE, the parties agree as follows:    INTRODUCTORY MATTERS  1.1 Defined Terms.  In addition to the terms defined elsewhere herein, the  following terms have the following meanings when used herein:  “Affiliate” has the meaning set forth in Rule 12b-2 promulgated under the  Exchange Act, as in effect on the date hereof.  “Agreement” means this Stockholders Agreement, as the same may be amended,  supplemented, restated or otherwise modified from time to time in accordance with the terms  hereof.  “beneficially own” has the meaning set forth in Rule 13d-3 promulgated under the  Exchange Act.  “Board” means the board of directors of the Company.  “Change in Control” means any transaction or series of related transactions  (whether by merger, consolidation, recapitalization, liquidation or sale or transfer of Common  Stock or assets (including equity securities of the Subsidiaries) or otherwise) as a result of which  any Person or group, within the meaning of Section 13(d)(3) of the Exchange Act (other than the  Principal Stockholders and their respective Affiliates, any group of which the foregoing are  members and any other members of such a group), obtains ownership, directly or indirectly, of  (i) Common Stock that represent more than 50% of the total voting power of the outstanding  

 

Doc#: US1:13601293v14 2 capital stock of the Company or applicable successor entity or (ii) all or substantially all of the  assets of the Company and its Subsidiaries on a consolidated basis.  “Closing Date” has the meaning set forth in the Background.  “Company” has the meaning set forth in the Preamble.  “Common Stock” means the shares of common stock, par value $0.01 per share,  of the Company, and any other capital stock of the Company into which such stock is  reclassified or reconstituted and any other common stock of the Company.  “Control” (including its correlative meanings, “Controlled by” and “under  common Control with”) means possession, directly or indirectly, of the power to direct or cause  the direction of management or policies (whether through ownership of securities or partnership  or other ownership interests, by contract or otherwise) of a Person.  “Controlled Entity” means, without limitation, any other corporation, limited  liability company, partnership, joint venture, trust, employee benefit plan or other enterprise  controlled by the Company.  “Director” means any member of the Board.  “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the  rules and regulations promulgated thereunder, as the same may be amended from time to time.  “Governmental Authority” means any nation or government, any state or other  political subdivision thereof, and any entity exercising executive, legislative, judicial, regulatory  or administrative functions of or pertaining to government.  “IPO” has the meaning set forth in the Background.  “Law” means any statute, law, regulation, ordinance, rule, injunction, order,  decree, governmental approval, directive, requirement, or other governmental restriction or any  similar form of decision of, or determination by, or any interpretation or administration of any of  the foregoing by, any Governmental Authority.  “Permitted Assigns” means with respect to a Principal Stockholder Entity, a  Transferee of shares of Common Stock that agrees to become party to, and to be bound to the  same extent as its Transferor by the terms of, this Agreement.  “Person” means any individual, partnership, corporation, limited liability  company, association, joint stock company, trust, joint venture, unincorporated organization, or  

 

  Doc#: US1:13601293v14 3  other form of business organization, whether or not regarded as a legal entity under applicable  Law, or any Governmental Authority or any department, agency or political subdivision thereof.  “Principal Stockholder Designee” has the meaning set forth in Section 2.1(c).  “Principal Stockholder Entities” means a Principal Stockholder, its Affiliates and  their respective successors and Permitted Assigns; provided, that for purposes of determining  any ownership threshold hereunder relevant to the Principal Stockholder Entities, such threshold  shall be determined based on the ownership of the applicable Principal Stockholders and their  Affiliates (and not, for the avoidance of doubt, any Permitted Assigns).  “Principal Stockholders” means, collectively, Driven Equity LLC, a Delaware  limited liability company, and RC IV Cayman ICW Holdings LLC, a Cayman Islands limited  liability company, and each, a “Principal Stockholder”; provided, that for purposes of  determining any ownership threshold hereunder relevant to the Principal Stockholders, such  threshold shall be determined based on the ownership of the applicable Principal Stockholders  (and not, for the avoidance of doubt, any Permitted Assigns).   “Subsidiary” means, with respect to any Person, any corporation, limited liability  company, partnership, association or other business entity of which: (i) if a corporation, a  majority of the total voting power of shares of stock entitled (without regard to the occurrence of  any contingency) to vote in the election of directors, representatives or trustees thereof is at the  time owned or Controlled, directly or indirectly, by that Person or one or more of the other  Subsidiaries of that Person or a combination thereof; or (ii) if a limited liability company,  partnership, association or other business entity, a majority of the total voting power of stock (or  equivalent ownership interest) of the limited liability company, partnership, association or other  business entity is at the time owned or Controlled, directly or indirectly, by any Person or one or  more Subsidiaries of that Person or a combination thereof.  For purposes hereof, a Person or  Persons shall be deemed to have a majority ownership interest in a limited liability company,  partnership, association or other business entity if such Person or Persons shall be allocated a  majority of limited liability company, partnership, association or other business entity gains or  losses or shall be or Control the managing member, managing director or other governing body  or general partner of such limited liability company, partnership, association or other business  entity.  “Total Number of Directors” means the total number of Directors comprising the  Board.  “Transfer” (including its correlative meanings, “Transferor”, “Transferee” and  “Transferred”) shall mean, with respect to any security, directly or indirectly, to sell, contract to  sell, give, assign, hypothecate, pledge, encumber, grant a security interest in, offer, sell any  option or contract to purchase, purchase any option or contract to sell, grant any option, right or  

 

  Doc#: US1:13601293v14 4  warrant to purchase, lend or otherwise transfer or dispose of any economic, voting or other rights  in or to such security.  When used as a noun, “Transfer” shall have such correlative meaning as  the context may require.  1.2 Construction.  The language used in this Agreement will be deemed to be  the language chosen by the parties to express their mutual intent, and no rule of strict  construction will be applied against any party.  Unless the context otherwise requires: (a) “or” is  disjunctive but not exclusive, (b) words in the singular include the plural and in the plural  include the singular, and (c) the words “hereof”, “herein”, and “hereunder” and words of similar  import when used in this Agreement refer to this Agreement as a whole and not to any particular  provision of this Agreement, and Section references are to this Agreement unless otherwise  specified.    CORPORATE GOVERNANCE MATTERS  2.1 Election of Directors.    Following the Closing Date, the Principal Stockholders (together with any  Permitted Assigns who are assigned such rights) shall have the right, but not the obligation, to  nominate to the Board an aggregate number of designees equal to at least: (i) a majority of the  Total Number of Directors, so long as the Principal Stockholder Entities collectively beneficially  own 50% or more of the outstanding shares of Common Stock; (ii) 40% of the Total Number of  Directors, in the event that the Principal Stockholder Entities collectively beneficially own 40%  or more, but less than 50%, of the outstanding shares of Common Stock; (iii) 30% of the Total  Number of Directors, in the event that the Principal Stockholder Entities collectively beneficially  own 30% or more, but less than 40%, of the outstanding shares of Common Stock; (iv) 20% of  the Total Number of Directors, in the event that the Principal Stockholder Entities collectively  beneficially own 20% or more, but less than 30%, of the outstanding shares of Common Stock;  and (v) 10% of the Total Number of Directors, in the event that the Principal Stockholder  Entities collectively beneficially own 5% or more, but less than 20%, of the outstanding shares  of Common Stock.  For purposes of calculating the number of Directors that the Principal  Stockholders are entitled to designate pursuant to the immediately preceding sentence, any  fractional amounts shall automatically be rounded up to the nearest whole number (e.g., one and  one quarter (11/4) Directors shall equate to two (2) Directors), and any such calculations shall be  made after taking into account any increase in the Total Number of Directors.   Following the Closing Date and subject to applicable laws and stock  exchange regulations, the Principal Stockholders shall have the right, but not the obligation, to  have representatives appointed to serve on each committee of the Board in the same proportion  as their representation on the Board.  The Principal Stockholders shall have the right, but not the  obligation, to have a representative appointed as an observer to any committee of the Board to  

 

  Doc#: US1:13601293v14 5  which the Principal Stockholders (i) do not elect to have a representative appointed or (ii) are  prohibited by applicable laws or stock exchange regulations from having a representative  appointed, in each case for so long as such Principal Stockholders have the right to designate at  least one (1) director for nomination under this Agreement.   In the event that the Principal Stockholders have nominated less than the  total number of designees the Principal Stockholders shall be entitled to nominate pursuant to  Section 2.1(a), the Principal Stockholders shall have the right, at any time, to nominate such  additional designees to which they are entitled, in which case the Company and the Directors  shall take all necessary corporation action, to the fullest extent permitted by applicable Law  (including with respect to fiduciary duties under Delaware law), to (x) enable the Principal  Stockholders to nominate and effect the election or appointment of such additional individuals,  whether by increasing the size of the Board or otherwise, and (y) designate such additional  individuals nominated by the Principal Stockholders to fill such newly-created vacancies or to  fill any other existing vacancies.  Each such individual whom the Principal Stockholders shall  actually nominate pursuant to this Section 2.1 and who is thereafter elected to the Board to serve  as a Director shall be referred to herein as a “Principal Stockholder Designee”.   In the event that a vacancy is created at any time by the death, retirement  or resignation of any Director designated pursuant to this Section 2.1, the remaining Directors  and the Company shall, to the fullest extent permitted by applicable Law (including with respect  to fiduciary duties under Delaware law), cause the vacancy created thereby to be filled by a new  designee of the Principal Stockholders as soon as possible, and the Company hereby agrees to  take, to the fullest extent permitted by applicable Law (including with respect to fiduciary duties  under Delaware law), at any time and from time to time, all actions necessary to accomplish the  same.   The Company agrees, to the fullest extent permitted by applicable Law  (including with respect to fiduciary duties under Delaware law), to include the individuals  designated pursuant to this Section 2.1 in the slate of nominees recommended by the Board for  election at any meeting of stockholders called for the purpose of electing Directors and to use its  best efforts to cause the election of each such designee to the Board, including nominating each  such individual to be elected as a Director as provided herein, recommending such individual’s  election and soliciting proxies or consents in favor thereof.  2.2 Consent Rights.     For so long as the Principal Stockholder Entities collectively beneficially  own at least 25% of the outstanding shares of Common Stock, the following actions by the  Company or any of its Subsidiaries shall require the approval of each Principal Stockholder  Designee, in addition to the Board’s approval (or the approval of the required governing body of  any Subsidiary of the Company):  

 

  Doc#: US1:13601293v14 6   entering into or effecting a Change in Control;   entering into any agreement providing for the acquisition or  divestiture of assets or equity security of any Person, in each case providing for aggregate  consideration in excess of $50 million;   entering into any joint venture or similar business alliance having a  fair market value as of the date of formation thereof (as reasonably determined by the Board) in  excess of $50 million;   initiating a voluntary liquidation, dissolution, receivership,  bankruptcy or other insolvency proceeding involving the Company or any Subsidiary of the  Company that is a “significant subsidiary” as defined in Rule 1-02 of Regulation S-X under the  Exchange Act;   any material change in the nature of the business of the Company  or any Subsidiary, taken as a whole;   any redemption, acquisition or other purchase of any shares of  Common Stock (a “Repurchase”) other than Repurchases in accordance with any existing  compensation plan of the Company or any Subsidiary or a Repurchase from an employee in  connection with such employee’s termination of employment with the Company or any  Subsidiary;   any payment or declaration of any dividend or other distribution on  any shares of Common Stock or entering into any recapitalization transaction the primary  purpose of which is to pay a dividend;   the incurrence of indebtedness for borrowed money (including  through capital leases, the issuance of debt securities or the guarantee of indebtedness of another  Person) in an aggregate principal amount in excess of $50 million, other than (x) the incurrence  of trade payables arising in the ordinary course of business of the Company and its Subsidiaries  or (y) borrowings under the Company’s variable funding notes (or amendments, extensions, or  replacements thereof);   terminating the employment of the Chief Executive Officer of the  Company or hiring a new Chief Executive Officer of the Company;   increasing or decreasing the size of the Board; and   any transaction with or involving any Affiliate of the Company or  any Affiliate of any stockholder of the Company that beneficially owns in excess of ten percent  (10%) of the voting power of the Company (in each case, other than any Principal Stockholder  

 

  Doc#: US1:13601293v14 7  Entity), other than any transaction or series of related transactions in the ordinary course of  business and on arms-length third-party terms and in an amount less than $5 million.  2.3 Permitted Disclosure.  Each Principal Stockholder Designee is permitted  to disclose to the Principal Stockholder Entities (other than any portfolio company of such  Principal Stockholder Entity or its Affiliates) information about the Company and its Affiliates  he or she receives as a result of being a Director.    INFORMATION  3.1 Books and Records; Access.  The Company shall, and shall cause its  Subsidiaries to, keep proper books, records and accounts, in which full and correct entries shall  be made of all financial transactions and the assets and business of the Company and each of its  Subsidiaries in accordance with generally accepted accounting principles.  The Company shall,  and shall cause its Subsidiaries to, permit the Principal Stockholder Entities (other than any  portfolio company of such Principal Stockholder Entity or its Affiliates) and their respective  designated representatives, at reasonable times and upon reasonable prior notice to the Company,  to review the books and records of the Company or any of such Subsidiaries and to discuss the  affairs, finances and condition of the Company or any of such Subsidiaries with the officers of  the Company or any such Subsidiary.  In addition to other information that might be reasonably  requested by the Principal Stockholder Entities from time to time (other than any portfolio  company of such Principal Stockholder Entity or its Affiliates), the Company shall also provide  (i) direct access to the Company’s auditors and officers upon request, (ii) copies of all materials  provided to the board of directors (or committee of the board of directors) at the same time as  provided to the directors (or members of a committee of the board of directors) of the Company,  (iii) access to appropriate officers and directors of the Company and its Subsidiaries at such  times as may be requested by the Principal Stockholder Entities for consultation with the  Principal Stockholder Entities with respect to matters relating to the business and affairs of the  Company and its Subsidiaries, (iv) information in advance with respect to any significant  corporate actions, including, without limitation, extraordinary dividends, stock redemptions or  repurchases, mergers, acquisitions or dispositions of assets, issuances of significant amounts of  debt or equity and material amendments to the organizational documents of the Company or any  of its Subsidiaries, and to provide the Principal Stockholder Entities with the right to consult with  the Company and its Subsidiaries with respect to such actions and (v) to the extent otherwise  prepared by the Company, operating and capital expenditure budgets and periodic information  packages relating to the operations and cash flows of Company and its Subsidiaries.   Notwithstanding the foregoing, the Company shall not be required to disclose any privileged  information of the Company so long as the Company has used its reasonable best efforts to  provide such information to the Principal Stockholder Entities without the loss of any such  

 

Doc#: US1:13601293v14 8 privilege and notified the Principal Stockholder Entities that such information has not been  provided.  3.2 Confidentiality. The Principal Stockholders agree that such Principal  Stockholders will keep confidential and will not disclose, divulge, or use for any purpose (other  than to monitor their investment in the Company) any confidential information obtained from the  Company pursuant to the terms of this Agreement, unless such confidential information (a) is  known or becomes known to the public in general (other than as a result of a breach of  this Section 3.2 by such Principal Stockholders or Principal Stockholder Entity), (b) is or has  been independently developed or conceived by the Principal Stockholders without use of the  Company’s confidential information, or (c) is or has been made known or disclosed to the  Principal Stockholders by a third party without a breach of any obligation of confidentiality such  third party may have to the Company; provided, however, that a Principal Stockholder may  disclose confidential information (i) to its attorneys, accountants, consultants, and other  professionals to the extent necessary to obtain their services in connection with monitoring its  investment in the Company, provided that prior to such disclosure such advisor has agreed to be  bound to provisions which are the same substantially similar to the provisions of this Subsection  3.2 or otherwise is obligated to keep such information confidential; (ii) to any prospective  purchaser of any securities from such Principal Stockholders, provided that prior to such  disclosure such prospective purchaser has agreed to be bound to provisions which are the same  or substantially similar to the provisions of this Subsection 3.2; (iii) to any Affiliate (other than  any portfolio company of such Principal Stockholder Entity or its Affiliates), partner, member,  stockholder, or wholly owned subsidiary of such Principal Stockholders in the ordinary course of  business, provided that such Principal Stockholders informs such Person that such information is  confidential and directs such Person to maintain the confidentiality of such information; (iv) to  investors or prospective investors in any investment fund managed (currently or in the future) by  any Person that directly or indirectly manages a Principal Stockholder or any affiliate thereof; or  (v) as may otherwise be required by law, provided that the Principal Stockholders, to the extent  legally permitted, promptly notify the Company of such disclosure and takes reasonable steps to  minimize the extent of any such required disclosure.  The Principal Stockholders acknowledge  and agree that they are aware that the U.S. securities laws prohibit any person who has material  non-public information from purchasing or selling securities of the Company, or from  communicating such material non-public information to any other person under circumstances in  which it is reasonably foreseeable that such person is likely to purchase or sell such securities.  GENERAL PROVISIONS  4.1 Termination.  This Agreement shall terminate at such time as no Principal  Stockholder is entitled to nominate a Director pursuant to Section 2.1(a).  This Agreement shall  also terminate with respect to an individual Principal Stockholder upon the delivery of a written  

 

  Doc#: US1:13601293v14 9  notice by such Principal Stockholder to the Company requesting that this Agreement terminate  with respect to such Principal Stockholder.  4.2 Notices.  Any notice provided for in this Agreement shall be in writing  and shall be either personally delivered, mailed first class mail (postage prepaid), sent by  reputable overnight courier service (charges prepaid) or sent by electronic mail, to the Company  at the address or e-mail address set forth below and to any other recipient at the address or e-mail  address indicated on the Company’s records, or at such address or e-mail address or to the  attention of such other Person as the recipient party has specified by prior written notice to the  sending party.  Notices will be deemed to have been given hereunder when, the day delivered  personally, five (5) days after deposit in the U.S. mail, one (1) day after deposit with a reputable  overnight courier service, or the day sent by electronic mail (receipt confirmed).  The Company’s address is:   Driven Brands Holdings Inc.  440 S. Church Street, Suite 700  Charlotte, NC 28202  Attention: Scott O'Melia  Email: scott.omelia@drivenbrands.com  with a copy (not constituting notice) to:  Paul, Weiss, Rifkind, Wharton & Garrison LLP  1285 Avenue of the Americas  New York, NY 10019  Attention:  Jeffrey D. Marell    Email: jmarell@paulweiss.com    The Principal Stockholders’ addresses are:  Driven Equity LLC    1180 Peachtree St. NE, Suite 2500  Atlanta, GA 30309   Attention: Stephen Aronson  Email: sda@roarkcapital.com  and  RC IV Cayman ICW Holdings LLC    1180 Peachtree St. NE, Suite 2500  Atlanta, GA 30309    

 

  Doc#: US1:13601293v14 10  Attention: Stephen Aronson  Email: sda@roarkcapital.com  with respect to each Principal Stockholder, with a copy (not constituting notice)  to:  Paul, Weiss, Rifkind, Wharton & Garrison LLP  1285 Avenue of the Americas  New York, NY 10019  Attention:  Jeffrey D. Marell    Email: jmarell@paulweiss.com  4.3 Amendment; Waiver.  This Agreement may be amended, supplemented or  otherwise modified only by a written instrument executed by the Company and the other parties  hereto.  Neither the failure nor delay on the part of any party hereto to exercise any right,  remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any  single or partial exercise of any right, remedy, power or privilege preclude any other or further  exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of  any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of  such right, remedy, power or privilege with respect to any other occurrence.  No waiver shall be  effective unless it is in writing and is signed by the party asserted to have granted such waiver.  4.4 Further Assurances.  The parties hereto will sign such further documents,  cause such meetings to be held and resolutions passed, exercise their votes and do and perform  and cause to be done such further acts and things necessary, proper or advisable in order to give  full effect to this Agreement and every provision hereof.  To the fullest extent permitted by Law,  the Company shall not directly or indirectly take any action that is intended to, or would  reasonably be expected to result in, any Principal Stockholder Entity being deprived of the rights  contemplated by this Agreement.  4.5 Assignment.  This Agreement will inure to the benefit of and be binding  on the parties hereto and their respective successors and permitted assigns.  This Agreement may  not be assigned without the express prior written consent of the other parties hereto, and any  attempted assignment, without such consents, will be null and void; provided, however, that each  Principal Stockholder Entity shall be entitled to assign, in whole or in part, to any of its  Permitted Assigns without such prior written consent any of its rights hereunder.  4.6 Indemnification.   The Company, will, and will cause its Subsidiaries to, jointly and  severally, indemnify, exonerate and hold each Principal Stockholder and its respective partners,  stockholders, members, Affiliates, directors, officers, fiduciaries, managers, controlling Persons,  

 

  Doc#: US1:13601293v14 11  employees and agents and each of the partners, stockholders, members, Affiliates, directors,  officers, fiduciaries, managers, controlling Persons, employees and agents of each of the  foregoing (collectively, the “Indemnitees”) free and harmless from and against any and all  liabilities, losses, damages and costs and out-of-pocket expenses in connection therewith  (including reasonable attorneys’ fees and expenses) incurred by the Indemnitees or any of them  before or after the date of this Agreement (collectively, the “Indemnified Liabilities”), arising out  of any action, cause of action, suit, litigation, investigation, inquiry, arbitration or claim (each, an  “Action”) arising directly or indirectly out of, or in any way relating to, (i) Indemnitees’  ownership of the Company’s securities or such Indemnitees’ control or ability to influence the  Company or any of its Subsidiaries (other than any such Indemnified Liabilities (x) to the extent  such Indemnified Liabilities arise out of any breach of this Agreement, any other agreement by  such Indemnitee or its Affiliates or other related Persons or the breach of any fiduciary or other  duty or obligation of such Indemnitee to its direct or indirect equity holders, creditors or  Affiliates, (y) to the extent such control or the ability to control the Company or any of its  Subsidiaries derives from such Stockholder’s or its Affiliates’ capacity as an officer or director  of the Company or any of its Subsidiaries or (z) to the extent such indemnification would violate  any applicable law) or (ii) the business, operations, properties, assets or other rights or liabilities  of the Company or any of its Subsidiaries; provided, however that if and to the extent that the  foregoing undertaking may be unavailable or unenforceable for any reason, the Company, will,  and will cause its Subsidiaries to, jointly and severally make the maximum contribution to the  payment and satisfaction of each of the Indemnified Liabilities that is permissible under  applicable Law. For the purposes of this Section 4.6, none of the circumstances described in the  limitations contained in the immediately preceding sentence shall be deemed to apply absent a  final non-appealable judgment of a court of competent jurisdiction to such effect, in which case  to the extent any such limitation is so determined to apply to any Indemnitee as to any previously  advanced indemnity payments made by the Company, then such payments shall be promptly  repaid by such Indemnitee to the Company.   The Company, will, and will cause its Subsidiaries to, jointly and  severally, reimburse any Indemnitee for all reasonable costs and expenses (including reasonable  attorneys’ fees and expenses and any other litigation-related expenses) as they are incurred in  connection with investigating, preparing, pursuing, defending or assisting in the defense of any  Action for which the Indemnitee would be entitled to indemnification under the terms of this  Section 4.6, or any action or proceeding arising therefrom, whether or not such Indemnitee is a  party thereto. The Company or its Subsidiaries, in the defense of any Action for which an  Indemnitee would be entitled to indemnification under the terms of this Section 4.6, may,  without the consent of such Indemnitee, consent to entry of any judgment or enter into any  settlement if and only if it (i) includes as a term thereof the giving by the claimant or plaintiff  therein to such Indemnitee of an unconditional release from all liability with respect to such  Action, (ii) does not impose any limitations (equitable or otherwise) on such Indemnitee, and (iii)  does not include a statement as to or an admission of fault, culpability or a failure to act by or on  

 

  Doc#: US1:13601293v14 12  behalf of such Indemnitee, and provided that the only penalty imposed in connection with such  settlement is a monetary payment that will be paid in full by the Company or its Subsidiaries.   The Company acknowledges and agrees that the Company shall, and to  the extent applicable shall cause its Subsidiaries to, be fully and primarily responsible for the  payment to the Indemnitee in respect of Indemnified Liabilities in connection with any Jointly  Indemnifiable Claims (as defined below), pursuant to and in accordance with (as applicable) the  terms of (i) the Delaware General Corporation Law, as amended, (ii) the certificate of  incorporation or similar organizational documents, as amended, of the Company, (iii) the bylaws  or similar organizational documents, as amended, of the Company, (iv) any director or officer  indemnification agreement, (v) this Agreement, (vi) any other agreement between the Company  or any Controlled Entity and the Indemnitee pursuant to which the Indemnitee is indemnified,  (vii) the laws of the jurisdiction of incorporation or organization of any Controlled Entity and/or  (viii) the certificate of incorporation, certificate of organization, bylaws, partnership agreement,  operating agreement, certificate of formation, certificate of limited partnership or other  organizational or governing documents of any Controlled Entity (clauses (i) through (viii),  collectively, the “Indemnification Sources”), irrespective of any right of recovery the Indemnitee  may have from any corporation, limited liability company, partnership, joint venture, trust,  employee benefit plan or other enterprise (other than the Company, any Controlled Entity or the  insurer under and pursuant to an insurance policy of the Company or any Controlled Entity) from  whom an Indemnitee may be entitled to indemnification with respect to which, in whole or in  part, the Company or any Controlled Entity may also have an indemnification obligation  (together, the “Indemnitee-Related Entities”). Under no circumstance shall the Company or any  Controlled Entity be entitled to any right of subrogation or contribution by the Indemnitee- Related Entities and no right of advancement or recovery the Indemnitee may have from the  Indemnitee-Related Entities shall reduce or otherwise alter the rights of the Indemnitee or the  obligations of the Company or any Controlled Entity under the Indemnification Sources. The  Company shall cause each of the Controlled Entities to perform the terms and obligations of this  Section 4.6(c) as though each such Controlled Entity was a party to this Agreement. For  purposes of this Section 4.6(c), the term “Jointly Indemnifiable Claims” shall be broadly  construed and shall include, without limitation, any Indemnified Liabilities for which the  Indemnitee shall be entitled to indemnification from both (1) the Company and/or any Controlled  Entity pursuant to the Indemnification Sources, on the one hand, and (2) any Indemnitee-Related  Entity pursuant to any other agreement between any Indemnitee-Related Entity and the  Indemnitee pursuant to which the Indemnitee is indemnified, the laws of the jurisdiction of  incorporation or organization of any Indemnitee-Related Entity and/or the certificate of  incorporation, certificate of organization, bylaws, partnership agreement, operating agreement,  certificate of formation, certificate of limited partnership or other organizational or governing  documents of any Indemnitee-Related Entity, on the other hand.  

 

Doc#: US1:13601293v14 13  The rights of any Indemnitee to indemnification pursuant to this Section  4.6 will be in addition to any other rights any such Person may have under any other Section of  this Agreement or any other agreement or instrument to which such Indemnitee is or becomes a  party or is or otherwise becomes a beneficiary or under law or regulation or under the certificate  of incorporation or bylaws of the Company, any newly formed direct or indirect parent or any  direct or indirect Subsidiary or investment holding vehicle with respect to any of the foregoing.   The Company shall obtain and maintain in effect at all times directors’ and  officers’ liability insurance reasonably satisfactory to the Principal Stockholders.  4.7 Third Parties.  This Agreement does not create any rights, claims or  benefits inuring to any Person that is not a party hereto or create or establish any third-party  beneficiary hereto.  4.8 Reimbursement of Expenses.   The Company will pay directly or reimburse, or cause to be paid directly  or reimbursed, the actual and reasonable out-of-pocket costs and expenses incurred by each  Principal Stockholder and its respective Affiliates in connection with the monitoring and/or  overseeing of their investment in the Company, including (i) reasonable out-of-pocket expenses  incurred by directors designated by such Principal Stockholder hereunder in connection with  such directors’ board service (including travel), (ii) fees and actual and reasonable out-of-pocket  disbursements of any independent professionals and organizations, including independent  accountants, outside legal counsel or consultants retained by such Principal Stockholder or any  of their Affiliates, (iii) reasonable costs of any outside services or independent contractors such  as financial printers, couriers, business publications, on-line financial services or similar  services, retained or used by such Principal Stockholder or any of their respective Affiliates and  (iv) reasonable transportation, word processing expenses or any similar expense.   All payments or reimbursement for such costs and expenses pursuant to  this Section 4.8 will be made by wire transfer in same-day funds to the bank account designated  by such Principal Stockholder or its relevant Affiliate promptly upon or as soon as practicable  following request for reimbursement; provided, however, that such Principal Stockholder or  Affiliate has provided the Company with such supporting documentation reasonably requested  by the Company.  4.9 Governing Law.  This Agreement shall be governed by and construed in  accordance with the laws of the State of Delaware, without regard to principles of conflicts of  laws thereof.  4.10 Jurisdiction; Waiver of Jury Trial.  In any judicial proceeding involving  any dispute, controversy or claim arising out of or relating to this Agreement, each of the parties  

 

Doc#: US1:13601293v14 14 unconditionally accepts the jurisdiction and venue of the Delaware Court of Chancery or, if the  Delaware Court of Chancery does not have subject matter jurisdiction over this matter, the  Superior Court of the State of Delaware (Complex Commercial Division) or, if jurisdiction over  the matter is vested exclusively in federal courts, the United States District Court for the District  of Delaware, and the appellate courts to which orders and judgments thereof may be appealed.   In any such judicial proceeding, the parties agree that in addition to any method for the service of  process permitted or required by such courts, to the fullest extent permitted by Law, service of  process may be made by delivery provided pursuant to the directions in Section 4.2.  EACH OF  THE PARTIES HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY  APPLICABLE LAW TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING  ANY DISPUTE, CONTROVERSY OR CLAIM ARISING OUT OF OR RELATING TO THIS  AGREEMENT.  4.11 Specific Performance.  Each party hereto acknowledges and agrees that in  the event of any breach of this Agreement by any of them, the other parties hereto would be  irreparably harmed and could not be made whole by monetary damages.  Each party accordingly  agrees to waive the defense in any action for specific performance that a remedy at law would be  adequate and that the parties, in addition to any other remedy to which they may be entitled at  law or in equity, shall be entitled to specific performance of this Agreement without the posting  of bond.  4.12 Entire Agreement.  This Agreement sets forth the entire understanding of  the parties hereto with respect to the subject matter hereof.   There are no agreements,  representations, warranties, covenants or understandings with respect to the subject matter hereof  or thereof other than those expressly set forth herein and therein.  This Agreement supersedes all  other prior agreements and understandings between the parties with respect to such subject  matter.  4.13 Severability.  If any provision of this Agreement, or the application of  such provision to any Person or circumstance or in any jurisdiction, shall be held to be invalid or  unenforceable to any extent, (a) the remainder of this Agreement shall not be affected thereby,  and each other provision hereof shall be valid and enforceable to the fullest extent permitted by  Law, (b) as to such Person or circumstance or in such jurisdiction, such provision shall be  reformed to be valid and enforceable to the fullest extent permitted by Law and (c) the  application of such provision to other Persons or circumstances or in other jurisdictions shall not  be affected thereby.  4.14 Table of Contents, Headings and Captions.  The table of contents,  headings, subheadings and captions contained in this Agreement are included for convenience of  reference only and in no way define, limit or describe the scope of this Agreement or the intent  of any provision hereof.  

 

Doc#: US1:13601293v14 15 4.15 Counterparts.  This Agreement and any amendment hereto may be signed  in any number of separate counterparts, each of which shall be deemed an original, but all of  which taken together shall constitute one Agreement (or amendment, as applicable).  4.16 Effectiveness.  This Agreement shall become effective upon the Closing  Date.  4.17 No Recourse.  This Agreement may only be enforced against, and any  claims or cause of action that may be based upon, arise out of or relate to this Agreement, or the  negotiation, execution or performance of this Agreement, may only be made against the entities  that are expressly identified as parties hereto, and no past, present or future Affiliate, director,  officer, employee, incorporator, member, manager, partner, stockholder, agent, attorney or  representative of any party hereto shall have any liability for any obligations or liabilities of the  parties to this Agreement or for any claim based on, in respect of, or by reason of the transactions  contemplated hereby.  [Remainder of Page Intentionally Left Blank]

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