Document:

Stockholders Agreement, dated as of January 27, 2005

 Exhibit 10.6 
  

 STOCKHOLDERS AGREEMENT 
  
 DLI HOLDING CORP. 
  
 Dated as of January 27, 2005 
  

 Table of Contents 
  

									
	 	  	 	  	 	  	 	  	Page

	 1.
	  	 Restrictions on Transfers of Capital Stock.
	  	1
	 	  	 1.1
	  	 	  	 [intentionally omitted.]
	  	1
	 	  	 1.2
	  	 	  	 Restrictions on Transfers by the Management Stockholders.
	  	1
	 	  	 1.3
	  	 	  	 Involuntary Transfers
	  	2
			
	 2.
	  	 Sale by Management Stockholders to the Company (“Put Rights”).
	  	2
	 	  	 2.1
	  	 	  	 Right to Sell
	  	2
	 	  	 2.2
	  	 	  	 Notice
	  	3
	 	  	 2.3
	  	 	  	 Payment.
	  	3
			
	 3.
	  	 Right of the Company to Purchase from Management Stockholders.
	  	4
	 	  	 3.1
	  	 	  	 Right to Purchase
	  	4
	 	  	 3.2
	  	 	  	 Notice
	  	5
	 	  	 3.3
	  	 	  	 Payment
	  	5
			
	 4.
	  	 Purchase Price.
	  	5
	 	  	 4.1
	  	 	  	 Appraisal
	  	5
	 	  	 4.2
	  	 	  	 Fair Market Value.
	  	5
			
	 5.
	  	 Prohibited Purchases
	  	6
			
	 6.
	  	 Tag-Along and Drag-Along Rights.
	  	8
	 	  	 6.1
	  	 	  	 Tag-Along Rights.
	  	8
	 	  	 6.2
	  	 	  	 Drag-Along Rights.
	  	10
			
	 7.
	  	 Election of Directors.
	  	11
			
	 8.
	  	 Stock Certificate Legend
	  	13
			
	 9.
	  	 Covenants; Representations and Warranties.
	  	14
	 	  	 9.1
	  	 	  	 New Management Stockholders
	  	14
	 	  	 9.2
	  	 	  	 No Other Arrangements or Agreements
	  	14
	 	  	 9.3
	  	 	  	 Additional Representations and Warranties
	  	15
			
	 10.
	  	 Amendment and Modification
	  	15
			
	 11.
	  	 Parties.
	  	16
	 	  	 11.1
	  	 	  	 Assignment by the Company
	  	16
	 	  	 11.2
	  	 	  	 Assignment Generally
	  	16
	 	  	 11.3
	  	 	  	 Termination.
	  	16
	 	  	 11.4
	  	 	  	 Agreements to Be Bound
	  	17
			
	 12.
	  	 Recapitalizations, Exchanges, etc
	  	17

  

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 Table of Contents 
 (continued) 
  

					
	 	  	 	  	Page

	 13.
	  	 No Third Party Beneficiaries
	  	17
			
	 14.
	  	 Confidentiality
	  	17
			
	 15.
	  	 Preparation for an IPO
	  	18
			
	 16.
	  	 Securities Act Matters
	  	19
			
	 17.
	  	 Further Assurances
	  	19
			
	 18.
	  	 Governing Law
	  	19
			
	 19.
	  	 Invalidity of Provision
	  	19
			
	 20.
	  	 Waiver
	  	19
			
	 21.
	  	 Notices
	  	20
			
	 22.
	  	 Headings
	  	20
			
	 23.
	  	 Counterparts
	  	21
			
	 24.
	  	 Entire Agreement
	  	21
			
	 25.
	  	 Injunctive Relief
	  	21
			
	 26.
	  	 Attorneys’ Fees
	  	21
			
	 27.
	  	 Trial by Jury
	  	22
			
	 28.
	  	 Defined Terms
	  	22

  

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 STOCKHOLDERS AGREEMENT 
  
 STOCKHOLDERS AGREEMENT, dated as of January 27, 2005 (this “Agreement”), among DLI Holding Corp., a
Delaware corporation (the “Company”), DLI Holding, LLC, a Delaware limited liability company (“DLI LLC”), and those employees of the Company or its Subsidiaries who are listed on Schedule A
(collectively, the “Management Stockholders” and together with DLI LLC, the “Stockholders”). The initial amount of Capital Stock held by each of the Stockholders as of the date hereof is set forth on
Schedule B opposite such Stockholder’s name. Capitalized terms used herein without definition are defined in Section 28. 
  
 The parties hereto agree as follows: 
  
 1. Restrictions on Transfers of Capital Stock. 
  
 1.1 [intentionally omitted.] 
  
 1.2 Restrictions on Transfers by the Management Stockholders. 
  
 (a) Generally. No shares of Capital Stock now or hereafter owned by any Management Stockholder, nor any interest
therein, nor any rights relating thereto, may be Transferred except (i) pursuant to subsection (b) (“Permitted Pledges”), (ii) pursuant to subsection (c) (“Estate Planning Transfers”) or, in case of his or her
death, by will or by the laws of intestate succession, to his or her executors, administrators, testamentary trustees, legatees or beneficiaries, (iii) pursuant to Section 2.1 (“Right to Sell”), (iv) pursuant to Section 3.1
(“Right to Purchase”), (v) pursuant to Section 6.1 (“Tag-Along Rights”), (vi) pursuant to Section 6.2 (“Drag-Along Rights”), (vii) in accordance with Section 1.3 (“Involuntary Transfers”),
or (viii) in a Registration. 
  
 (b) Permitted
Pledges. A Management Stockholder may pledge any or all shares of Capital Stock now or hereafter owned by him or her, or grant a security interest therein to secure indebtedness of such Management Stockholder owing to a bank or other financial
institution, in either case on terms and conditions approved by the Board (excluding such Management Stockholder, if he or she is a member of the Board), provided, however, that any pledgee pursuant to this subsection (b) shall acquire
only a security interest in such shares of Capital Stock entitling such pledgee to (i) the proceeds from any sale of such shares of Capital Stock made in compliance with the terms of this Agreement and (ii) any proceeds of any
distribution to stockholders on account of the shares of Capital Stock in any liquidation as a result of any bankruptcy proceeding or the winding up of affairs of the Company, and in no event shall such pledgee be entitled to receive title to such
shares of Capital Stock or any other rights incident thereto other than those specified above. The pledge agreements or other related financing agreements of any Management Stockholder shall be subject to and acknowledge the rights of the Company
and the other Stockholders set forth herein and shall acknowledge the restrictions imposed on the pledgee’s security interest pursuant to this Section 1.2(b). 

 (c) Estate Planning Transfers. Shares of Capital Stock held by Management Stockholders may be
Transferred for estate-planning purposes of such Management Stockholder to (i) a trust under which the distribution of the shares of Capital Stock may be made only to beneficiaries who are such Management Stockholder, his or her spouse, his
or her parents, members of his or her immediate family or his or her lineal descendants, (ii) a charitable remainder trust, the income from which will be paid to such Management Stockholder during his or her life, (iii) a corporation,
the stockholders of which are only such Management Stockholder, his or her spouse, his or her parents, members of his or her immediate family or his or her lineal descendants, or (iv) a partnership or limited liability company, the partners
or members of which are only such Management Stockholder, his or her spouse, his or her parents, members of his or her immediate family or his or her lineal descendants. 
  
 1.3 Involuntary Transfers. Any transfer of title or beneficial ownership of shares of Capital Stock upon default,
foreclosure, forfeit, divorce, court order or otherwise than by a voluntary decision on the part of a Stockholder (each, an “Involuntary Transfer”) shall be void unless the Stockholder complies with this Section 1.3 and
enables the Company to exercise in full its rights hereunder. Upon any Involuntary Transfer, the Company shall have the right to purchase such shares pursuant to this Section 1.3, and the Person to whom such shares have been Transferred (the
“Involuntary Transferee”) shall have the obligation to sell such shares in accordance with this Section 1.3. Upon the Involuntary Transfer of any shares of Capital Stock, such Stockholder shall promptly (but in no event later
than two days after such Involuntary Transfer) furnish written notice to the Company indicating that the Involuntary Transfer has occurred, specifying the name of the Involuntary Transferee, giving a detailed description of the circumstances giving
rise to, and stating the legal basis for, the Involuntary Transfer. Upon the receipt of such notice, and for 60 days thereafter, the Company shall have the right to purchase, and the Involuntary Transferee shall have the obligation to sell, all (but
not less than all) of the shares of Capital Stock acquired by the Involuntary Transferee for a purchase price equal to the lesser of (i) the Fair Market Value (as defined in Section 4.2(a)) of such shares of Common Stock, and (ii) the
Carrying Value (as defined in Section 4.2(c)) of such shares of Common Stock. 
  
 2. Sale by Management Stockholders to the Company (“Put Rights”). 
  
 2.1 Right to Sell. Subject to all subsections of this Section 2 and to Section 5 (“Prohibited Purchases”), each of the Management
Stockholders shall have the right to sell to the Company, and the Company shall have the obligation to purchase from each such Management Stockholder, all, but not less than all, of such Management Stockholder’s shares of Capital Stock:

  
 (i) at the Fair Market Value of such shares
of Capital Stock to be sold, if the employment of such Management Stockholder with the Company or any Subsidiary that employs such individual (or by the Company on behalf of any such Subsidiary) (a) is terminated without Cause or (b)
terminates as a result of (i) the death or Disability of such Management Stockholder, (ii) the resignation of such Management Stockholder for Good Reason or (iii) the retirement of such Management Stockholder upon or after
reaching the age of 65 (“Retirement”); or 
  

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 (ii) at the Fair Market Value or the Carrying Value of such shares of Capital Stock to be
sold, in the sole discretion of the Board (excluding such Management Stockholder and other members of the Board who are designees of the Management Stockholders), if the employment of such Management Stockholder with the Company or any Subsidiary
that employs such individual (or by the Company on behalf of any such Subsidiary) terminates as a result of the voluntary resignation of such Management Stockholder without Good Reason; provided, that the purchase price applicable to any of
such Management Stockholder’s shares of Exchange Option Stock shall be the Fair Market Value of such shares of Exchange Option Stock to be sold. 
  
 2.2 Notice. If any Management Stockholder desires to sell shares of Capital Stock pursuant to Section 2.1, he or she (or his or her estate, trust,
corporation or partnership, as the case may be) shall notify the Company (a) not more than 180 days after a termination of employment as a result of the death or Disability of such Management Stockholder or (b) not more than 60 days
after a termination of employment as a result of a termination without Cause, the resignation of such Management Stockholder with or without Good Reason or Retirement; provided that, if the shares of Capital Stock desired to be sold after a
termination of employment as described in clause (b) of this Section 2.2 are shares of Common Stock acquired at any time by such Management Stockholder pursuant to an exercise of any stock options occurring within six months and one day of the date
of termination of employment of such Management Stockholder (including, without limitation, after the termination of employment), then the notice required by this Section 2.2 shall be given to the Company not earlier than six months and one day nor
later than eight months after the acquisition of such shares. Each such notice shall specify the number of shares of Capital Stock such Management Stockholder owns at the time notice is given. 
  
 2.3 Payment. 
  
 Subject to Section 5 (“Prohibited Purchases”), payment for any
shares of Capital Stock sold by a Management Stockholder pursuant to Section 2.1 shall be made no later than on the date that is 30 days (or the first business day thereafter if the 30th day is not a business day) following the date of receipt by the Company of such Management Stockholder’s notice with respect to such shares pursuant to
Section 2.2; provided, 

  

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however, that, in the event the Company is conducting an Appraisal as required under Section 4.1 and such Appraisal (as defined in Section 4.1) is not
completed by such 30th day, then payment shall be made within five business days of the completion of the Appraisal.

  
 3. Right of the Company to Purchase from Management
Stockholders. 
  
 3.1 Right to Purchase. Subject to
all subsections of this Section and to Section 5 (“Prohibited Purchases”), the Company shall have the right to purchase from each Management Stockholder, and each such Management Stockholder shall have the obligation to sell to the
Company, all, but not less than all, of such Management Stockholder’s shares of Capital Stock: 
  
 (i) at the Fair Market Value of such shares of Capital Stock to be purchased, if such Management Stockholder’s employment with the
Company and any Subsidiary that employs such individual is terminated as a result of (A) the termination by the Company and any such Subsidiary (or by the Company on behalf of any such Subsidiary) of such employment without Cause, (B)
the death or Disability of such Management Stockholder, (C) the resignation of such Management Stockholder for Good Reason, or (D) the Retirement of such Management Stockholder; 
  
 (ii) at the lesser of the Fair Market Value and the Carrying
Value of such shares of Capital Stock to be purchased, if such Management Stockholder’s employment with the Company and any Subsidiary that employs such individual is terminated by the Company and any such Subsidiary (or by the Company on
behalf of any such Subsidiary) for Cause; provided, that the purchase price applicable to any of such Management Stockholder’s shares of Exchange Option Stock shall be the Fair Market Value of such shares of Exchange Option Stock to be
purchased; or 
  
 (iii) at the Fair Market Value
or the Carrying Value of such shares of Capital Stock to be purchased, in the sole discretion of the Board (excluding such Management Stockholder and other members of the Board who are designees of the Management Stockholders), if such Management
Stockholder’s employment with the Company and any Subsidiary that employs such individual is terminated by the Company or such Management Stockholder for any reason other than as a result of an event described in either subparagraph (i) or (ii)
of this Section 3.1; provided, that the purchase price applicable to any of such Management Stockholder’s shares of Exchange Option Stock shall be the Fair Market Value of such shares of Exchange Option Stock to be purchased. 

 

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 3.2 Notice. If the Company desires to purchase shares of Capital Stock from a Management
Stockholder pursuant to Section 3.1, it shall notify such Management Stockholder (or his or her estate, trust, corporation or partnership, as the case may be) not more than 60 days after the termination of employment as a result of the event giving
rise to the Company’s right to acquire such Management Stockholder’s shares of Capital Stock; provided that, with respect to the Company’s purchase of shares of Common Stock acquired at any time by such Management Stockholder
pursuant to an exercise of any stock options occurring within six months and one day of the date of termination of employment of such Management Stockholder (including, without limitation, after the termination of employment) in connection with any
termination other than as a result of death, Disability or for Cause, the notice required by this Section 3.2 shall be given by the Company not earlier than six months and one day nor later than eight months after the acquisition of such shares.

  
 3.3 Payment. Subject to Section 5 (“Prohibited
Purchases”), payment for any shares of Capital Stock purchased by the Company pursuant to Section 3.1 shall be made on the date that is 30 days (or the first business day thereafter if the 30th day is not a business day) following the date of the receipt by a Management Stockholder of the Company’s notice with respect to such shares pursuant to
Section 3.2; provided, however, that, in the event the Company is conducting an Appraisal as required under Section 4.1 and such Appraisal is not completed by such 30th day, then payment shall be made within five business days of the completion of the Appraisal. 
  
 4. Purchase Price. 
  
 4.1 Appraisal. The Company shall engage, from time to time at the discretion of the Board, but not less often than within 90 days after every
fiscal year, commencing with the fiscal year ending on December 31, 2004, an independent valuation consultant or appraiser of recognized national standing, reasonably satisfactory to DLI LLC (the “Appraiser”), to appraise the
Fair Market Value of the shares of Common Stock as of the last day of the calendar year then most recently ended or, at the request of the Company, as of any more recent date (the “Appraisal Date”), and to prepare and deliver
a report to the Company describing the results of such appraisal (the “Appraisal”). The Company shall bear the fees and expenses of each Appraisal. 
  
 4.2 Fair Market Value. 
  
 (a) The “Fair Market Value” of any share of Common Stock shall be (x) the fair market value of the entire equity interest
of the Company taken as a whole, without additional premiums for control or discounts for minority interests or restrictions on transfer, divided by (y) the number of outstanding shares of Common Stock, calculated on a fully diluted,
provided that the Appraiser shall be entitled to determine, in its judgment, the extent to which any stock options, the exercise price of which exceeds the Fair Market Value of the underlying shares of Common Stock, should be included in the
calculation of the number of fully diluted shares of Common Stock. 
  

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 (b) The Fair Market Value of any share of Common Stock shall be calculated with reference to the most
recent Appraisal and as of the most recent Appraisal Date prior to the termination of the relevant Management Stockholder’s employment or the Involuntary Transfer, as the case may be, provided that, if the relevant Management Stockholder
or the Company gives notice in accordance with Section 2.2 or Section 3.2, respectively, concerning shares of Common Stock acquired at any time by such Management Stockholder pursuant to an exercise of any stock options occurring within six months
prior to the date of termination of employment of such Management Stockholder (including, without limitation, after the termination of employment), the Fair Market Value of any share of Common Stock acquired at any time pursuant to an exercise of
stock options with respect to which such notice was given shall be calculated with reference to the most recent Appraisal and as of the most recent Appraisal Date prior to the date of such notice (or as of the first Appraisal and the first Appraisal
Date in the event that such termination or Involuntary Transfer occurs prior to December 31, 2005). 
  
 (c) Carrying Value. For the purposes of this Agreement, the “Carrying Value” of any share of Common Stock being purchased
by the Company shall be equal to the price paid by the selling Stockholder for any such share less the amount of dividends and other distributions paid in respect of such share, provided that the price of any shares of Common Stock that were
acquired by a Management Stockholder pursuant to the exercise of Exchange Options shall be equal to the Closing Date Value, less the amount of dividends and distributions paid in respect of such shares. 
  
 5. Prohibited Purchases. Notwithstanding anything to the contrary
herein, the Company shall not be permitted or obligated to purchase any shares of Capital Stock from a Management Stockholder hereunder to the extent (a) the Company is prohibited from purchasing such shares by applicable law or by any debt
instruments or agreements, including any amendment, renewal, extension, substitution, refinancing, replacement or other modification thereof, which have been entered into or which may be entered into by the Company or any of its Subsidiaries,
including those to acquisitions by the Company or recapitalizations by the Company (the “Financing Documents”), (b) an event of default has occurred (or, with notice or the lapse of time or both, would occur) under any
Financing Document and is (or would be) continuing, (c) the purchase of such shares of Capital Stock would, or in the view of the Board (excluding, if applicable, such Management Stockholder and other members of the Board who are designees of
the Management Stockholders), would be reasonably likely to result in the occurrence of an event of default under any Financing Document or create a condition which would be reasonably likely to, with notice or lapse of time or both, result in such
an event of default or (d) the purchase of such shares of Capital Stock would, in the view of the Board (excluding such Management Stockholder and other members of the Board who 

  

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are designees of the Management Stockholders), be imprudent in view of the financial condition (present or projected) of the Company or any of its
Subsidiaries or the anticipated impact of the purchase of such shares of Capital Stock on the Company’s or any of its Subsidiaries’ ability to meet their respective obligations under any Financing Document or otherwise. If shares of
Capital Stock which the Company has the right or obligation to purchase on any date exceed the total amount permitted to be purchased on such date pursuant to the preceding sentence (the “Maximum Amount”), the Company shall
purchase on such date only that number of shares of Capital Stock up to the Maximum Amount (if any) (and shall not be required to purchase more than the Maximum Amount) in such amounts as the Board shall in good faith determine, applying the
following order of priority: 
  
 (a) First, the shares of Capital
Stock of all Management Stockholders whose shares of Capital Stock are being purchased by the Company by reason of termination of employment due to death or Disability and, to the extent that the number of shares of Capital Stock that the Company is
obligated to purchase from such Management Stockholders (but for this Section 5) exceeds the Maximum Amount, such shares of Capital Stock pro rata among such Management Stockholders on the basis of the number of shares of Capital Stock held by each
of such Management Stockholders that the Company is obligated to or has the right to purchase, 
  
 (b) Second, to the extent that the Maximum Amount is in excess of the amount the Company purchases pursuant to clause (a) above, the shares of Capital Stock of all Management Stockholders whose shares of Capital Stock
are being purchased by the Company by reason of termination of employment without Cause or due to Retirement or resignation for Good Reason up to the Maximum Amount (as reduced by shares described in clause (a) to be purchased) and, to the extent
that the number of shares of Capital Stock that the Company is obligated to purchase from such Management Stockholders (but for this Section 5) exceeds the Maximum Amount (as reduced by shares described in clause (a) to be purchased), such shares of
Capital Stock pro rata among such Management Stockholders on the basis of the number of shares of Capital Stock held by each of such Management Stockholders that the Company is obligated or has the right to purchase, and 
  
 (c) Third, to the extent the Maximum Amount is in excess of the amounts the
Company purchases pursuant to clauses (a) and (b) above, the shares of Capital Stock of all other Management Stockholders whose shares of Capital Stock are being purchased by the Company up to the Maximum Amount (as reduced by shares described in
clauses (a) and (b) to be purchased) and, to the extent that the number of shares of Capital Stock that the Company is obligated to purchase from such Management Stockholders (but for this Section 5) exceeds the Maximum Amount (as reduced by shares
described in clauses (a) and (b) to be purchased), the shares of Capital Stock of such Management Stockholders in such order of priority and in such amounts as 

  

 7 

 
the Board (excluding such Management Stockholders and other members of the Board who are designees of the Management Stockholders) in its sole discretion
shall in good faith determine to be appropriate under the circumstances. 
  
 Notwithstanding anything to the contrary contained in this Agreement, if the Company is unable to make any payment when due to any Management Stockholder under this Agreement by reason of this Section 5, the Company
shall have the option to either (i) make such payment at the earliest practicable date permitted under this Section 5 or (ii) pay the purchase price for such shares of Capital Stock with a subordinated note, which is fully subordinated
in right of payment and exercise of remedies to the lenders’ rights under the Financing Documents. 
  
 6. Tag-Along and Drag-Along Rights. 
  
 6.1 Tag-Along Rights. 
  
 (a) In the event that at any time DLI LLC proposes to sell shares of Common Stock owned by it to any Person (a “Proposed
Purchaser”), other than any Transfer (i) pursuant to a Registration or Rule 144, (ii) to a Management Stockholder who is a member of DLI LLC in connection with a distribution to such member, or (iii) to an
Affiliate, and the shares proposed to be sold, together with all shares of Common Stock previously sold by DLI LLC and/or its Affiliates, would represent more than 25% of the aggregate number of shares of Common Stock owned by DLI LLC immediately
after the Closing, then DLI LLC will promptly provide each Management Stockholder written notice (a “Sale Notice”) of such proposed sale (a “Proposed Sale”) and the material terms of the Proposed Sale
as of the date of Sale Notice (the “Material Terms”), including the aggregate number of shares of Common Stock the Proposed Purchaser is willing to purchase. If, within 30 days of the receipt of the Sale Notice, DLI LLC
receives a written request (a “Sale Request”) to include (I) shares of Common Stock held by one or more Management Stockholders or (II) Exchange Option Stock that will be acquired on or prior to the closing of
the Proposed Sale, such Capital Stock shall be so included as provided therein; provided, however, that any Sale Request shall be irrevocable unless (x) there shall be a material adverse change in the Material Terms or
(y) otherwise mutually agreed to in writing by such Management Stockholders and DLI LLC. Each Management Stockholder wishing to include in the Proposed Sale shares of Exchange Option Stock must include with such Management Stockholder’s
Sale Request an irrevocable commitment to exercise such Exchange Options immediately prior to the closing of such Proposed Sale, subject only to the closing of such Proposed Sale. 
  
 (b) The number of shares of Capital Stock that any Management Stockholder will be permitted to include in a Proposed Sale on
a pro rata basis pursuant to a Sale Request will be equal to the product of (i) (A) the number of shares of Common Stock and Exchange Option Stock held by such Management Stockholder divided by (B) 

  

 8 

 
the number of shares of Common Stock and Exchange Option Stock held by all Stockholders participating in such Proposed Sale and (ii) the aggregate
number of shares of Common Stock proposed to be sold in such Proposed Sale (the “Includible Share Number”). 
  
 (c) Shares of Capital Stock subject to a Sale Request will be included in a Proposed Sale pursuant hereto and to any agreement with the Proposed Purchaser
relating thereto, on the same terms and subject to the same conditions applicable to the shares of Capital Stock which DLI LLC proposes to sell in the Proposed Sale. Such terms and conditions shall include, without limitation, (i) the sale
consideration (which shall be reduced by the fees and expenses incurred by DLI LLC and the Company in connection with the Proposed Sale) and (ii) the provision of information, representations, warranties, covenants and requisite
indemnifications; provided however, that (x) any representations and warranties relating specifically to any Stockholder shall only be made by that Stockholder; (y) any indemnification provided by the Stockholders shall be based
on the number of shares of Common Stock being sold by each Stockholder in the Proposed Sale, either on a several, not joint, basis or solely with recourse to an escrow established for the benefit of the Proposed Purchaser (it being understood and
agreed that the Stockholders’ contributions to such escrow shall be on a pro-rata basis in accordance with the number of shares of Capital Stock (including shares acquired pursuant to the exercise of Exchange Options) being sold by each
Stockholder in such Proposed Sale), and that any such indemnification obligation of a Stockholder shall in no event exceed the net proceeds of such Stockholder from such Proposed Sale; and (z) the form of consideration to be received by DLI
LLC in connection with the Proposed Sale may be different from that received by the Management Stockholders so long as the per share value of the consideration to be received by DLI LLC is the same or less than that to be received by the Management
Stockholders (as reasonably determined by the Board in good faith). 
  
 (d) Upon delivering a Sale Request, each Management Stockholder will, if requested by DLI LLC (or any of its Affiliates), execute and deliver a custody agreement and power of attorney in form and substance satisfactory to DLI LLC (or any
such Affiliate of DLI LLC) (a “Custody Agreement and Power of Attorney”) with respect to the shares of the Capital Stock which are to be included in the Proposed Sale pursuant to this Section 6.1. The Custody Agreement and
Power of Attorney will provide, among other things, that each such Management Stockholder will deliver to and deposit in custody with DLI LLC, named as the custodian and attorney-in-fact therein, a certificate or certificates representing such
shares of Capital Stock (duly endorsed in blank by the registered owner or owners thereof or accompanied by duly executed stock powers in blank) and irrevocably appoint DLI LLC as such Management Stockholder’s agent and attorney-in-fact with
full power and authority to act under a custody agreement and power of attorney on behalf of such Management Stockholder with respect to the matters specified therein. 
  

 9 

 (e) Each Management Stockholder agrees that he or she will execute such other agreements as DLI LLC (or
any of its Affiliates) may reasonably request in connection with the consummation of a Proposed Sale and Sale Request and the transactions contemplated thereby, including, without limitation, any purchase, recapitalization or merger agreement,
escrow agreement or other ancillary agreements, proxies, written consents in lieu of meetings or waivers of appraisal rights. 
  
 6.2 Drag-Along Rights. 
  
 (a) In the event that any time DLI LLC proposes to sell shares of Common Stock owned by it to any Proposed Purchaser other than any Transfer (i)
pursuant to a Registration or Rule 144, (ii) to a Management Stockholder who is a member of DLI LLC in connection with a distribution to such member, or (iii) to an Affiliate, and the shares proposed to be sold, together with all
shares of Common Stock previously sold by DLI LLC and/or its Affiliates would represent more than 25% of the aggregate number of shares of Common Stock owned by DLI LLC immediately after the Closing, then DLI LLC may provide each Management
Stockholder written notice (a “Drag-Along Notice”) of such Proposed Sale and the Material Terms thereof not less than 25 business days prior to the proposed closing date of the Proposed Sale and each such Management
Stockholder hereby agrees to sell to such Proposed Purchaser that number of shares of Common Stock equal to the product of the number of shares of Common Stock and Exchange Option Stock then held by such Management Stockholder (plus any number of
shares to be acquired by such Management Stockholder on or before the closing of the Proposed Sale) multiplied by (y) the aggregate percentage of Common Stock held by DLI LLC that is represented by the Common Stock that DLI LLC proposes to
sell in the Proposed Sale (the “Applicable Share Number”); provided that (x) the number of shares of Common Stock and Exchange Option Stock held by any Stockholder (or all of them) shall be determined on an
As-Converted Basis as of the date of the Drag-Along Notice. 
  
 (b) Shares of Capital Stock subject to a Drag-Along Notice and Exchange Option Stock will be included in the Proposed Sale pursuant hereto and to any agreement with the Proposed Purchaser relating thereto, on the same terms and subject to
the same conditions applicable to the shares of Capital Stock which DLI LLC proposes to sell in the Proposed Sale. Such terms and conditions shall include, without limitation, (i) the sale consideration (which shall be reduced by the fees and
expenses incurred by DLI LLC and the Company in connection with the Proposed Sale) and (ii) the provision of information, representations, warranties, covenants and requisite indemnifications; provided, however, that (x) any
representations and warranties relating specifically to any Stockholder shall only be made by that Stockholder, (y) any indemnification provided by the Stockholders shall be based on the number of shares of Capital Stock being sold by each
Stockholder in the Proposed Sale, either on a several, not joint, basis or solely with recourse to an escrow established for the benefit of the Proposed Purchaser (it being 

  

 10 

 
understood and agreed that the Stockholders’ contributions to such escrow shall be on a pro-rata basis in accordance with the number of shares of
Capital Stock (including shares acquired pursuant to the exercise of Exchange Options) being sold by each Stockholder in such Proposed Sale), and that any such indemnification obligation of a Stockholder shall in no event exceed the net proceeds of
such Stockholder from such Proposed Sale, and (z) that the form of consideration to be received by DLI LLC in connection with the Proposed Sale may be different from that received by the Management Stockholders so long as the per share value
of the consideration to be received by DLI LLC is the same or less than that to be received by the Management Stockholders (as reasonably determined by the Board in good faith). 
  
 (c) Each Management Stockholder will, if requested by DLI LLC (or any of its Affiliates), execute and deliver a Custody
Agreement and Power of Attorney in form and substance satisfactory to DLI LLC (or any such Affiliate of DLI LLC) with respect to the shares of Capital Stock which are to be included in the Proposed Sale pursuant to this Section 6.2. The Custody
Agreement and Power of Attorney will provide, among other things, that each such Management Stockholder will deliver to and deposit in custody with DLI LLC, named as the custodian and attorney-in-fact therein, a certificate or certificates
representing such shares of Capital Stock (duly endorsed in blank by the registered owner or owners thereof or accompanied by duly endorsed stock powers in blank) and irrevocably appoint DLI LLC such Management Stockholder’s agent and
attorney-in-fact with full power and attorney to act under a custody agreement and power of attorney on behalf of such Management Stockholder with respect to the matters specified therein. 
  
 (d) Each Management Stockholder agrees that he or she will execute such other
agreements as DLI LLC (or any Affiliate of DLI LLC) may reasonably request in connection with the consummation of a Proposed Sale and Drag-Along Notice and the transactions contemplated thereby, including, without limitation, any purchase, merger or
recapitalization agreement, escrow agreement or other ancillary agreements, proxies, written consents in lieu of meetings or waivers of appraisal rights. 
  
 7. Election of Directors. 
  
 (a) Each Management Stockholder shall vote all of its shares of Common Stock and any other voting securities of the Company over which such Management
Stockholder has voting control and shall take all other necessary or desirable actions within such Management Stockholder’s control (whether in such Management Stockholder’s capacity as a stockholder, director, member of a Board committee
or officer of the Company or otherwise, and including, without limitation, attendance at meetings in person or by proxy for purposes of obtaining a quorum, execution of written consents in lieu of meetings and approval of amendments and/or
restatements of the Company’s certificate of incorporation or by-laws), and the Company 

  

 11 

 
shall take all necessary and desirable actions within its control (including, without limitation, calling special Board or stockholder meetings and approval
of amendments and/or restatements of the Company’s certificate of incorporation or by-laws), so that: 
  
 (i) the authorized number of directors on the Board shall be six; 
  
 (ii) all of the directors, which will be designated by DLI LLC (and which DLI LLC agrees shall initially
include at least one independent director and three members of the Company’s management), shall be elected to the Board; 
  
 (iii) the composition of the board of directors of each of the Company’s Subsidiaries (a “Subsidiary Board”)
shall be determined only upon the approval of the Board; 
  
 (iv) any committees of the Board or a Subsidiary Board shall be created only upon the approval of the Board; and 
  
 (v) the removal from the Board or a Subsidiary Board or a committee of the Board or a Subsidiary Board (with or without cause) of any
representative designated pursuant hereto by DLI LLC shall be at DLI LLC’s written request, as the case may be, but only upon such written request and under no other circumstances. 
  
 (b) If DLI LLC fails to designate a representative to fill a directorship pursuant to the terms of this Section 7 after 30
days following a notice by the Company of such party’s failure to designate a representative have passed, the election of a person to such directorship shall be accomplished in accordance with the Company’s by-laws and applicable law.

  
 (c) Approval of at least one designee of DLI LLC (other than
any Company management designee or any independent director designated by DLI LLC) shall be required in connection with any action of the Board. 
  
 (d) In order to secure each Management Stockholder’s obligation to vote its shares of Common Stock and other voting securities of the Company in
accordance with the provisions of this Section 7, each Management Stockholder hereby appoints DLI LLC as its true and lawful proxy and attorney-in-fact, with full power of substitution, to vote all of such Person’s shares of Common Stock and
other voting securities of the Company for the election and removal of directors and all such other matters as expressly provided for in this Section 7. DLI LLC may exercise the irrevocable proxy granted to it hereunder at any time any Management
Stockholder fails to comply with the provisions of this Section 7. The proxies and powers granted by each Management Stockholder pursuant to this paragraph (d) are coupled with an interest and are given to secure the performance of the obligations
under this Agreement. Such 

  

 12 

 
proxies and powers will be irrevocable until the termination of this Agreement, and will survive the death, incompetency and disability of each Management
Stockholder and the holders of each of his or her respective shares of Common Stock. 
  
 8. Stock Certificate Legend. A copy of this Agreement shall be filed with the Secretary of the Company and kept with the records of the Company. Each certificate representing shares of Common Stock owned by the
Stockholders shall bear upon its face the following legends, as appropriate: 
  

	 	(a)	“THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND
MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS AND UNTIL REGISTERED UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR UNLESS, IN THE OPINION OF COUNSEL TO THE STOCKHOLDER, WHICH COUNSEL
MUST BE, AND THE FORM AND SUBSTANCE OF WHICH OPINION ARE, SATISFACTORY TO THE ISSUER, SUCH OFFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION, TRANSFER OR OTHER DISPOSITION IS EXEMPT FROM REGISTRATION OR IS OTHERWISE IN COMPLIANCE WITH THE ACT, SUCH
LAWS AND THE STOCKHOLDERS AGREEMENT OF THE ISSUER, DATED AS OF JANUARY 27, 2005 (THE “STOCKHOLDERS AGREEMENT”).” 

  

	 	(b)	“THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER AND OTHER CONDITIONS AS SPECIFIED IN THE STOCKHOLDERS AGREEMENT, COPIES OF WHICH
ARE ON FILE AT THE OFFICE OF THE ISSUER AND WILL BE FURNISHED WITHOUT CHARGE TO THE HOLDER OF SUCH SHARES UPON WRITTEN REQUEST.” 

  

	 	(c)	“THE ISSUER WILL FURNISH WITHOUT CHARGE TO EACH STOCKHOLDER WHO SO REQUESTS THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL OR OTHER SPECIAL RIGHTS
OF EACH CLASS OR SERIES OF SHARES AUTHORIZED TO BE ISSUED AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES AND/OR RIGHTS.” 

  

 13 

 In addition, certificates representing shares of Capital Stock owned by residents of certain states shall bear any
legends required by the laws of such states. 
  
 All Stockholders
shall be bound by the requirements of such legends. Upon a Registration of any shares of Common Stock, the certificate representing the registered shares shall be replaced, at the expense of the Company, with certificates not bearing the legends
required by clauses (a) and (b) of this Section 8. 
  
 9.
Covenants; Representations and Warranties. 
  
 9.1 New
Management Stockholders. Each of the Stockholders hereby agrees that any employee of the Company or any of its Subsidiaries who, after the date of this Agreement, is offered shares of any class of Common Stock or holds stock options exercisable
into shares of Common Stock shall, as a condition precedent to the acquisition of such shares of Common Stock or the exercise of such stock options, as the case may be, (a) become a party to this Agreement by executing a signature page to the
same and (b) if such employee is a resident of a state with a community or marital property system, cause his or her spouse to execute a Spousal Waiver in the form of Exhibit A attached hereto, and deliver such executed signature page to this
Agreement and Spousal Waiver, if applicable, to the Company at its address specified in Section 21 hereof. Upon such execution and delivery, such employee shall be a Management Stockholder for all purposes of this Agreement and the Company shall
amend Schedule A accordingly. 
  
 9.2 No Other Arrangements or
Agreements. Each Stockholder hereby represents and warrants to the Company and to each Management Stockholder that, except for this Agreement, the Registration Rights Agreement, the LLC Agreement, the applicable stock subscription agreements, if
any, with the Company (collectively, the “Stock Subscription Agreements”), and in the case of any affected Management Stockholder, any Exchange Agreement, any employment agreement with the Company and any stock option
agreement of the Company applicable to such Management Stockholder, he, she or it has not entered into or agreed to be bound by any other arrangements or agreements of any kind with any other party with respect to the shares of Capital Stock,
including, but not limited to, arrangements or agreements with respect to the acquisition or disposition of shares of Capital Stock or any interest therein or the voting of shares of Capital Stock (whether or not such agreements and arrangements are
with the Company or any of its Subsidiaries, or Management Stockholders) and each Management Stockholder agrees that, except as expressly permitted under this Agreement, he or she will not enter into any such other arrangements or agreements.

  

 14 

 9.3 Additional Representations and Warranties. Each Stockholder represents and warrants to the
Company and each other Stockholder that: 
  
 (a) such Stockholder
has the power, authority and capacity (or, in the case of any Stockholder that is a corporation, limited liability company or limited partnership, all corporate limited liability company or limited partnership power and authority, as the case may
be) to execute, deliver and perform this Agreement; 
  
 (b) in the
case of a Stockholder that is a corporation, limited liability company or limited partnership, the execution, delivery and performance of this Agreement by such Stockholder have been duly and validly authorized and approved by all necessary
corporate, limited liability company or limited partnership action, as the case may be; 
  
 (c) this Agreement has been duly and validly executed and delivered by such Stockholder and constitutes a valid and legally binding obligation of such Stockholder, enforceable in accordance with its terms, subject to
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to creditors’ rights generally and general principles of equity; and 
  
 (d) the execution, delivery and performance of this Agreement by such Stockholder does not and will not violate the terms of
or result in the acceleration of any obligation under (i) any material contract, commitment or other material instrument to which such Stockholder is a party or by which such Stockholder is bound or (ii) in the case of a Stockholder
that is a corporation, limited liability company or limited partnership, the certificate of incorporation and the by-laws, the certificate of formation and the limited liability company agreement, or the certificate of limited partnership and the
limited partnership agreement, as the case may be. 
  
 10.
Amendment and Modification. This Agreement may not be amended, modified or supplemented except by a written instrument signed by the Company, and DLI LLC, but, with respect to DLI LLC only for so long as DLI LLC holds Capital Stock;
provided, however, that the Company may, pursuant to Section 9.1, amend Schedule A without the consent of any other party hereto except DLI LLC. Notwithstanding the foregoing, this Agreement may not be amended, modified or supplemented
without the prior written consent of a majority in interest of the Management Stockholders (based on the aggregate number of shares of Common Stock owned by the Management Stockholders at the time of such amendment, modification or supplement), if
such amendment, modification or supplement could reasonably be expected to adversely affect the Management Stockholders or, to the extent (and only to the extent) any particular Management Stockholder would be uniquely and adversely affected by a
proposed amendment, modification or supplement, by such Management Stockholder. The Company shall notify all Stockholders promptly after any such amendment, modification or supplement shall have taken effect. 
  

 15 

 11. Parties. 
  
 11.1 Assignment by the Company. The Company shall have the right to assign to DLI LLC all or any portion of its
rights and obligations under Sections 2.1 (“Right to Sell”), 3.1 (“Right to Purchase”) and 1.3 (“Involuntary Transfers”); provided that any such assignment or assumption is accepted by DLI LLC. If the Company has
not exercised its right to purchase shares of Common Stock pursuant to any such Section within 15 days of receipt by the Company of the letter, notice or other occurrence giving rise to such right, then DLI LLC shall have the right to require the
Company to assign such right. DLI LLC shall have the right to assign to one or more of its Affiliates all or any of its rights to purchase shares of Common Stock pursuant to this Section 11.1. 
  
 11.2 Assignment Generally. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns; provided (a) that neither the Company nor any Management Stockholder shall assign any of its rights
or obligations hereunder without the consent of DLI LLC unless, in the case of an Management Stockholder, such assignment is in connection with a Transfer explicitly permitted by this Agreement and, prior to such assignment, such assignee complies
with the requirements of Section 11.4, (b) that DLI LLC may not assign any of its rights or obligations hereunder unless such assignment is in compliance with Section 11.4. 
  
 11.3 Termination. 
  
 (a) Any Stockholder who ceases to own shares of Capital Stock or any interest therein, shall cease to be a party to, or a Person who is subject to, this
Agreement and thereafter shall have no rights or obligations hereunder; provided, however, that a Transfer of shares of Capital Stock not explicitly permitted under this Agreement shall not relieve a Stockholder of any of his or her
obligations hereunder. All rights and obligations pursuant to Sections 1, 2, 3, 4, 6 and 7 of this Agreement shall terminate upon the occurrence of an IPO. 
  
 (b) This entire Agreement shall terminate upon a sale of Common Stock by DLI LLC to a Third Party Investor, whether in a stock sale transaction, merger or
otherwise, if (i) following such sale, a majority of the issued and outstanding shares of Common Stock are owned by Third Party Investors and (ii) the Management Stockholders were afforded a right to participate in such sale pursuant
to Section 6.1, whether or not the Management Stockholders in fact exercise such right. 
  

 16 

 11.4 Agreements to Be Bound. Notwithstanding anything to the contrary contained in this Agreement,
any Transfer of shares by a Stockholder (the “Transferor”) (other than (x) pursuant to a Registration, (y) pursuant to Sections 2, 3, or 11.3(b), or (z) pursuant to the exercise of the Company’s
rights under Section 1.3) shall be permitted under the terms of this Agreement only if the transferee of such Transferor (the “Transferee”) shall agree in writing to be bound by the terms and conditions of this Agreement
pursuant to an instrument of assumption reasonably satisfactory in substance and form to the Company, and in the case of a Transferee of a Management Stockholder who resides in a state with a community property system, such Transferee causes his or
her spouse, if any, to execute a Spousal Waiver in the form of Exhibit A attached hereto. Upon the execution of the instrument of assumption by such Transferee and, if applicable, the Spousal Waiver by the spouse of such Transferee, such Transferee
shall enjoy all of the rights and shall be subject to all of the restrictions and obligations of the Transferor of such Transferee, including, without limitation, if such Transferor was a Management Stockholder, the provisions of Sections 2 and 3
(which shall continue to apply as though such Transferor were still the holder of such shares). 
  
 12. Recapitalizations, Exchanges, etc. Except as otherwise provided herein, the provisions of this Agreement shall apply to the full extent set
forth herein with respect to (a) the shares of Capital Stock and (b) any and all shares of capital stock of the Company or any successor or assign of the Company (whether by merger, consolidation, sale of assets or otherwise) which may
be issued in respect of, in exchange for, or in substitution for the shares of Capital Stock, by reason of any stock dividend, split, reverse split, combination, recapitalization, reclassification, merger, consolidation or otherwise. All share
numbers and percentages shall be proportionately adjusted to reflect any stock split, stock dividend or other subdivision or combination effected after the date hereof. 
  
 13. No Third Party Beneficiaries. Except as otherwise provided herein, this Agreement is not intended to confer upon
any Person, except for the parties hereto, any rights or remedies hereunder. 
  
 14. Confidentiality. All materials and information obtained by any Stockholder who is not also an employee of the Company pursuant to the rights granted under this Agreement, together with all other
confidential or proprietary information of the Company (such materials and information collectively, the “Confidential Information”), shall be kept confidential and shall not be disclosed to any third party except (a)
information which is obtained by a Stockholder from a third party who is not known by such Stockholder to be prohibited from disclosing the information to such Stockholder by a contractual, legal or fiduciary obligation to the Company, (b)
information which is or becomes publicly available (other than as a result of disclosure by a Stockholder in violation hereof or a third party violation of such third party’s contractual, legal or fiduciary obligation to the Company);
(c) information which is independently developed, discovered or arrived at by a Stockholder without use of 

  

 17 

 
Confidential Information, (d) to such Stockholder’s equity holders, directors, officers, trustees, partners, employees, agents, accountants,
representatives and professional consultants (“Representatives”) on a need-to-know-basis, (e) to any Person to which such Stockholder offers to Transfer any shares of Capital Stock; provided that the prospective
transferee shall agree to be bound by a confidentiality agreement for the benefit of the Company containing provisions substantially similar to the provisions of this Section 14, (f) in any report, statement, testimony or other submission to
any governmental authority having or claiming to have jurisdiction over such Stockholder or (g) in order to comply with any law, rule, regulation, or order applicable to a Stockholder, or in response to any summons, subpoena or other legal
process or formal or informal investigative demand issued to such recipient in the course of any litigation, investigation or administrative proceeding. In the event that any party hereto or any of its Representatives becomes legally compelled by
deposition, interrogatory, request for documents, subpoena, civil investigative demand or similar judicial or administrative process to disclose any Confidential Information, the disclosing party shall provide the Company with prompt prior written
notice of such requirement and shall cooperate with the Company, at the Company’s expense, to obtain a protective order or similar remedy to cause such Confidential Information not to be disclosed, including interposing all available objections
thereto, such as objections based on settlement privilege. In the event that such protective order or other similar remedy is not obtained, the disclosing party shall furnish only that portion of such Confidential Information that has been legally
compelled to be furnished. Notwithstanding the foregoing, any Stockholder may disclose information that constitutes U.S. federal income tax treatment or tax structure of the transactions contemplated by this Agreement and all materials of any kind
(including opinions or other tax analyses) that are provided to such Stockholder relating to such tax treatment and tax structure. For the avoidance of doubt, and notwithstanding anything in Section 11.3 to the contrary, the confidentiality
obligations described in this Section 14 shall survive the termination of this Agreement and with respect to any Stockholder, such Stockholder’s ceasing to be a party to this Agreement for any reason. Any Stockholder who is an employee of the
Company or its subsidiaries shall, during such employment, disclose Confidential Information only for the benefit of the Company and in accordance with any restrictions placed on its disclosure by the Company. 
  
 15. Preparation for an IPO. Notwithstanding anything in this Agreement
to the contrary, in connection with and subject to the closing of an IPO, the Stockholders shall vote their shares of Capital Stock and take all actions necessary or desirable (including attendance at meetings in person or by proxy for purposes of
obtaining a quorum and execution of written consents in lieu of meetings), and the Company shall take all necessary and desirable actions within its control (including calling special board and stockholder meetings), to amend the Amended and
Restated Certificate of Incorporation and the Bylaws of the Company to include (a) customary anti-takeover protections and (b) provisions preserving the rights of DLI LLC as the controlling Stockholder of the Company. In each case,
such provisions will be developed 

  

 18 

 
by DLI LLC and the managing underwriters, taking into account (a) then-prevailing corporate governance practices for companies operating in the
Company’s and its Subsidiaries’ industry and in public offerings involving controlling stockholders and (b) the then prevailing or applicable practices and requirements of any exchange on which Capital Stock may be listed.

  
 16. Securities Act Matters. Each Stockholder
understands that in addition to the restrictions on transfer contained in this Agreement, he or she must bear the economic risks of his or her investment for an indefinite period because the shares of Capital Stock have not been registered under the
Securities Act. 
  
 17. Further Assurances. Each party
hereto shall do and perform or cause to be done and performed all such further acts and things and shall execute and deliver all such other agreements, certificates, instruments and documents as any other party hereto or Person subject hereto may
reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby. 
  

18. Governing Law. This Agreement and the rights and obligations of the parties hereunder and the Persons subject hereto shall be governed by,
and construed and interpreted in accordance with, the laws of the State of Delaware, without giving effect to the choice of law principles thereof. 
  
 19. Invalidity of Provision. The invalidity or unenforceability of any provision of this Agreement in any jurisdiction shall not affect the
validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of this Agreement, including that provision, in any other jurisdiction. 
  
 20. Waiver. Waiver by any party hereto of any breach or default by the
other party of any of the terms of this Agreement shall not operate as a waiver of any other breach or default, whether similar to or different from the breach or default waived. No waiver of any provision of this Agreement shall be implied from any
course of dealing between the parties hereto or from any failure by either party to assert its or his or her rights hereunder on any occasion or series of occasions. 
  

 19 

 21. Notices. All notices, requests, demands, waivers and other communications required or
permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered personally, (b) mailed, by certified or registered mail with postage prepaid, (c) sent by next-day or
overnight mail or delivery or (d) sent by fax, as follows (or to such other address as the party entitled to notice shall hereafter designate in accordance with the terms hereof): 
  
 (i) If to the Company, to: 
  
 DLI Holding Corp. 
 c/o Kelso & Company 
 320 Park Avenue, 24th Floor 
 New York, New York 10022 
 Attention: James J. Connors II, Esq. 
 Facsimile No.: (212) 223-2379 
  
 with a copy (which shall not constitute notice) to Debevoise
& Plimpton LLP at its address set forth below. 
  
 (ii) If to a Management Stockholder, to his or her attention at the last address of record for such Management Stockholder in the books and records of the Company. 
  
 (iii) If to DLI LLC, to: 
  
 DLI Holding, LLC 
 c/o Kelso & Company 
 320 Park Avenue, 24th Floor 
 New York, New York 10022 
 Attention: James J. Connors II, Esq. 
 Facsimile No.: (212) 223-2379 
  
 with a copy (which shall not constitute notice) to: 
  
 Debevoise & Plimpton LLP 
 919 Third Avenue 
 New York, New York 10022 
 Attention: Margaret A. Davenport, Esq. 
 Facsimile No.: (212) 909-6836 
  
 All such
notices, requests, demands, waivers and other communications shall be deemed to have been received by (w) if by personal delivery, on the day delivered, (x) if by certified or registered mail, on the fifth business day after the
mailing thereof, (y) if by next-day or overnight mail or delivery, on the day delivered, or (z) if by fax, on the day delivered, provided that such delivery is confirmed. 
  
 22. Headings. The headings to Sections in this Agreement are for the
convenience of the parties only and shall not control or affect the meaning or construction of any provision hereof. 
  

 20 

 23. Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original but all of which together shall constitute one and the same instrument. 
  
 24. Entire Agreement. This Agreement, the Merger Agreement, the Registration Rights Agreement, the Advisory Agreement, the LLC Agreement and, in
the case of any affected Management Stockholder, any employment agreement with the Company, any Exchange Agreement and any stock option agreement of the Company applicable to such Management Stockholder, constitute the entire agreement and
understanding of the parties hereto with respect to the matters referred to herein. This Agreement and the agreements referred to in the preceding sentence supersede all prior agreements and understandings among the parties with respect to such
matters. There are no representations, warranties, promises, inducements, covenants or undertakings relating to the shares of Capital Stock, other than those expressly set forth or referred to herein, in the Registration Rights Agreement, the LLC
Agreement, the Stock Purchase Agreement, the Stock Subscription Agreements or, in the case of any affected Management Stockholder, any employment agreement with the Company and any stock option agreement of the Company applicable to such Management
Stockholder. 
  
 25. Injunctive Relief. The shares of
Capital Stock cannot readily be purchased or sold in the open market, and for that reason, among others, the Company and the Stockholders will be irreparably damaged in the event this Agreement is not specifically enforced. Each of the parties
therefore agrees that, in the event of a breach of any provision of this Agreement, the aggrieved party may elect to institute and prosecute proceedings in any court of competent jurisdiction to enforce specific performance or to enjoin the
continuing breach of this Agreement. Such remedies shall, however, be cumulative and not exclusive, and shall be in addition to any other remedy which the Company or any Stockholder may have. Each Stockholder hereby irrevocably submits to the
non-exclusive jurisdiction of the state and federal courts in New York for the purposes of any suit, action or other proceeding arising out of or based upon this Agreement or the subject matter hereof. Each Stockholder hereby consents to service of
process made in accordance with Section 21. 
  
 26.
Attorneys’ Fees. The substantially prevailing party in any action or proceeding relating to this Agreement shall be entitled to receive an award of, and to recover from the other party or parties, any fees or expenses incurred by him,
her or it (including, without limitation, reasonable attorneys’ fees and disbursements) in connection with any such action or proceeding; provided, however, with respect to any Management Stockholder who is a party to an employment
agreement with the Company, the awarding of fees and expenses in any action or proceeding relating to a dispute arising out of any such employment agreement shall be governed by such employment agreement. 
  

 21 

 27. Trial by Jury. EACH STOCKHOLDER HEREBY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR
PROCEEDING BASED UPON, ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, OR THE BREACH, TERMINATION OR VALIDITY OF THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
  
 28. Defined Terms. As used in this Agreement, the following terms shall have the meanings ascribed to them
below: 
  
 Advisory Agreement: the
Advisory Agreement of even date herewith by and between the Company and Kelso & Company. 
  
 Affiliate: a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under
common control with, the Person specified. 
  
 Amended and Restated Certificate of Incorporation: the Company’s Amended and Restated Certificate of Incorporation, of even date herewith. 
  

Beneficial Owner: the meaning set forth in Rule 13d-3 of the rules and regulations promulgated under the Securities Exchange Act
of 1934. 
  
 Board: the board of directors
of the Company. 
  
 Capital Stock: the
Common Stock, including for the avoidance of doubt any Exchange Option Stock. 
  
 Change of Control: with respect to any Person, the occurrence of any of the following events: (a) any other Person becoming the Beneficial Owner, directly or indirectly, of securities representing fifty
percent or more of the total voting power represented by such Person’s then outstanding voting securities, (b) a change in the composition of the Board occurring within a twelve-month period, as a result of which fewer than a majority of
the directors are either (i) directors of such Person as of the date hereof, or (ii) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the incumbent directors at the time of such
election or nomination, (c) the consummation of a merger or consolidation of such Person with any other Person, other than a merger or consolidation that would result in the voting securities of such Person outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or such surviving entity’s parent) at least fifty percent of the total voting power represented by the voting
securities of such Person or such surviving entity or such surviving entity’s parent outstanding immediately after such merger or consolidation; or (d) the consummation of the sale or disposition by such Person of all or substantially
all of such Person’s assets. 
  

 22 

 Cause: the meaning as set forth in the employment agreement between the Company
and such Management Stockholder, or, if such Management Stockholder is not a party to an employment agreement, a termination of such Management Stockholder’s employment by the Company or any Subsidiary (or by the Company on behalf of any such
Subsidiary) due to (i) the refusal or neglect of the Management Stockholder to perform substantially his or her employment-related duties, (ii) the Management Stockholder’s personal dishonesty, incompetence, willful misconduct or
breach of fiduciary duty, (iii) the Management Stockholder’s conviction of, or entering a plea of guilty or nolo contendere (or any applicable equivalent thereof) to a crime constituting a felony (or a crime or offense of equivalent
magnitude in any jurisdiction) or his or her willful violation of any law, rule, or regulation (other than a traffic violation or other offense or violation outside of the course of employment which in no way adversely affects the Company or any
Subsidiary or its reputation or the ability of the Management Stockholder to perform his or her employment-related duties or to represent the Company or any Subsidiary), or (iv) the material breach by the Management Stockholder of any
covenant or agreement with the Company or any Subsidiary, or any written policy of the Company or any Subsidiary, not to disclose any information pertaining to the Company or any Subsidiary or not to compete or interfere with the Company or any
Subsidiary. 
  
 Closing: the closing of
the transactions contemplated by the Merger Agreement. 
  
 Closing Date: the effective date of this Agreement. 
  
 Closing Date Value: $32.718857 per share of Common Stock, as such number may be equitably adjusted for any stock dividend, stock split, reverse stock split, recapitalization or consolidation. 
  
 Closing Date Debt Documents: collectively, any
instrument or agreement (including any amendments thereof), relating to any indebtedness for borrowed money of the Company or any of its Subsidiaries outstanding on the Closing Date, or to any indebtedness of the Company or any of its Subsidiaries
issued upon a registered exchange offer of indebtedness privately placed as of the Closing Date. 
  
 Common Stock: the Common Stock of the Company, par value $.01 per share, or any other securities of the Company or any other Person
issued with respect to such Common Stock by way of a conversion, exchange, replacement, stock dividend or stock split or other distribution in connection with a combination of shares, conversion exchange, replacement, recapitalization, merger,
consolidation or other reorganization or otherwise. 
  

 23 

 Disability: the meaning as set forth in the employment agreement between the
Company and such Management Stockholder, or, if such Management Stockholder is not a party to an employment agreement, a termination of a Management Stockholder’s employment with the Company or any Subsidiary (or by the Company on behalf of
such Subsidiary) as a result of such Management Stockholder’s incapacity due to reasonably documented physical or mental illness that shall have prevented such Management Stockholder from performing his or her duties for the Company on a
full-time basis for more than six months and within 30 days after written notice of termination has been given to such Management Stockholder, such Management Stockholder shall not have returned to the full-time performance of his or her duties. The
date of termination in the case of a termination for “Disability” shall be deemed to be the last day of the aforementioned 30-day period. 
  
 Exchange Agreements: the Exchange Agreements of even date herewith by and between the Company and each of the Management
Stockholders who are a party to this Agreement as of the date first written above, as the same may be amended, modified, supplemented or restated from time to time. 
  
 Exchange Options: any options to purchase Common Stock that were acquired pursuant to an Exchange
Agreement. 
  
 Exchange Option Stock:
Common Stock acquired through the exercise of Exchange Options. 
  
 Good Reason: the meaning as set forth in the employment agreement between the Company and such Management Stockholder, or, if such Management Stockholder is not a party to an employment agreement, a termination
of a Management Stockholder’s employment with the Company or any Subsidiary shall be for “Good Reason” if such Management Stockholder voluntarily terminates his or her employment with the Company or any Subsidiary as a result of
either of the following: 
  
 (i) without such
Management Stockholder’s prior written consent, a significant reduction by the Company or any Subsidiary of his or her current salary, other than any such reduction which is part of a general salary reduction or other concessionary arrangement
affecting all employees or affecting the group of employees of which the Management Stockholder is a member (after receipt by the Company or such Subsidiary of written notice and the expiration of a 20-day cure period); or 
  

 24 

 (ii) the taking of any action by the Company or any Subsidiary that would substantially
diminish the aggregate value of the benefits provided him or her under the Company’s or such Subsidiary’s accident, disability, life insurance and any other employee benefit plans in which he or she was participating on the date of his or
her execution of this Agreement, other than any such reduction which is (A) required by law, (B) implemented in connection with a general concessionary arrangement affecting all employees or affecting the group of employees of which
the Management Stockholder is a member or (C) generally applicable to all beneficiaries of such plans (after receipt by the Company or such Subsidiary of written notice and a 20-day cure period). 
  
 IPO: an underwritten initial public offering of
Common Stock having an aggregate offering value (measured by the Company’s proceeds before underwriters’ discounts and selling commissions) of at least $75 million and after which an established trading market exists for the Common Stock.

  
 LLC Agreement: the Limited Liability
Company Agreement of DLI Holding LLC, dated as of the date first written above, as the same may be amended, modified, supplemented or restated from time to time. 
  
 Merger Agreement: the Agreement and Plan of Merger, dated as of July 1, 2004, by and among the
Company, DLI Acquisition, Inc. and Del Laboratories, Inc., as the same may be amended modified, supplemented or restated from time to time. 
  
 Person: an individual, corporation, partnership, limited liability company, joint venture, association, trust or other entity or
organization, including a government or political subdivision or an agency or instrumentality thereof. 
  
 Registration: the closing of a public offering pursuant to an effective registration statement (including a “take down”
of a shelf registration statement) under the Securities Act of 1933, as amended. 
  
 Registration Rights Agreement: the Registration Rights Agreement of even date herewith among the parties hereto, as the same may be
amended modified, supplemented or restated from time to time. 
  
 Rule 144: Rule 144 promulgated under the Securities Act of 1933, as amended. 
  
 Subsidiary: any entity a majority of whose outstanding voting securities is owned, directly or indirectly, by the Company.

  

 25 

 Third Party Investor: any Person other than an Affiliate of DLI LLC. 

 
 Transfer: any direct or indirect sale, assignment,
mortgage, transfer, pledge, hypothecation or other disposal. 
  

 26 

 IN WITNESS WHEREOF, this Agreement has been signed by each of the parties hereto, and shall be effective
as of the date first above written. 
  

			
	 DLI HOLDING CORP.

		
	 By:
	 	 /s/ William McMenemy

	 Name:
	 	 William McMenemy

	 Title:
	 	 President

	
	 DLI HOLDING LLC

		
	 By:
	 	 /s/ James J. Connors, II

	 Name:
	 	 James J. Connors, II

	 Title:
	 	 Vice President and Secretary

	
	 /s/ William McMenemy

	 William McMenemy

	 300 E. 77th Street, #14B

	 New York, NY 10021

	
	 /s/ Charles J. Hinkaty

	 Charles J. Hinkaty

	 250 Southdown Road

	 Lloyd Harbor, NY 11743

	
	 /s/ Harvey P. Alstodt

	 Harvey P. Alstodt

	 111 E. 85th Street, #6E

	 New York, NY 10028

 Exhibit A 
  

SPOUSAL WAIVER 
  
 [INSERT NAME] hereby waives and releases any and all equitable or legal claims and rights, actual, inchoate or contingent, which
[she] [he] may acquire with respect to the disposition, voting or control of the shares of Common Stock subject to the Stockholders Agreement of DLI Holding Corp., dated as of
[                    ], 2005, as the same may be amended, modified, supplemented or restated from time to time, except for rights in respect
of the proceeds of any disposition of such Common Stock. 
  

	
	

	 Name:

 Schedule A 
 Management Stockholders 
  
 William McMenemy 
 Charles J. Hinkaty 
 Harvey P. Alstodt 

 Schedule B 
  

			
	 Stockholder

	  	 Initial Amount of
 Capital Stock Held

	 DLI Holding LLC
	  	4,223,864
	 William McMenemy
	  	0
	 Charles J. Hinkaty
	  	0
	 Harvey P. Alstodt
	  	0Registration Rights Agreement, dated as of January 27, 2005

 Exhibit 10.7 
  

  
 REGISTRATION RIGHTS AGREEMENT 
  
 DLI HOLDING CORP.

  
 Dated as of January 27, 2005 
  

 TABLE OF CONTENTS 
  

							
	 	 	 	 	 	 	Page

	1.	 	Registrations Upon Request.	 	1
	 	 	1.1	 	Requests by DLI LLC.	 	1
	 	 	1.2	 	Registration Statement Form	 	3
	 	 	1.3	 	Expenses	 	3
	 	 	1.4	 	Priority in Demand Registrations	 	3
			
	2.	 	Incidental Registrations	 	4
			
	3.	 	Registration Procedures	 	6
			
	4.	 	Underwritten Offerings.	 	10
	 	 	4.1	 	Underwriting Agreement	 	10
	 	 	4.2	 	Selection of Underwriters	 	11
			
	5.	 	Holdback Agreements.	 	11
			
	6.	 	Preparation; Reasonable Investigation	 	12
			
	7.	 	Indemnification.	 	13
	 	 	7.1 Indemnification by the Company	 	13
	 	 	7.2 Indemnification by the Sellers	 	14
	 	 	7.3 Notices of Claims, etc	 	14
	 	 	7.4 Other Indemnification	 	15
	 	 	7.5 Indemnification Payments	 	15
	 	 	7.6 Other Remedies	 	15
			
	8.	 	Representations and Warranties	 	16
			
	9.	 	Definitions	 	17
			
	10.	 	Miscellaneous.	 	19
	 	 	10.1	 	Rule 144, etc	 	19
	 	 	10.2	 	Successors, Assigns and Transferees	 	20
	 	 	10.3	 	Stock Splits, etc	 	20
	 	 	10.4	 	Amendment and Modification	 	20
	 	 	10.5	 	Additional Management Stockholders	 	21
	 	 	10.6	 	Governing Law	 	21
	 	 	10.7	 	Invalidity of Provision	 	21
	 	 	10.8	 	Notices	 	21
	 	 	10.9	 	Headings; Execution in Counterparts	 	22
	 	 	10.10	 	Injunctive Relief	 	22
	 	 	10.11	 	Term	 	22
	 	 	10.12	 	Further Assurances	 	22
	 	 	10.13	 	Entire Agreement	 	22

  

 i 

 Table of Contents 
 (continued) 
  

							
	 	 	 	 	 	 	Page

  

 ii 

 REGISTRATION RIGHTS AGREEMENT 
  
 REGISTRATION RIGHTS AGREEMENT, dated as of January 27, 2005 among DLI Holding Corp., a Delaware corporation (the
“Company”), DLI Holding LLC, a Delaware limited liability company (“DLI LLC”), and those employees of the Company or its subsidiaries listed on Schedule 1 (collectively, the “Management
Stockholders”). DLI LLC and the Management Stockholders are hereinafter referred to collectively as the “Stockholders.” Capitalized terms used herein without definition are defined in Section 9. 
  
 WHEREAS, DLI LLC has purchased or, simultaneously with the execution of this
Agreement, is purchasing shares of Common Stock; 
  
 WHEREAS, the
Management Stockholders have exchanged or, simultaneously with the execution of this Agreement, are exchanging options to acquire common stock of Del Laboratories, Inc. for options to acquire Common Stock; and 
  
 WHEREAS, the parties hereto wish to set forth certain rights and obligations
with respect to the registration of the shares of Common Stock under the Securities Act. 
  
 NOW, THEREFORE, in consideration of the mutual covenants and obligations set forth in this Agreement, the parties hereto agree as follows: 
  
 1. Registrations Upon Request. 
  
 1.1 Requests by DLI LLC. 
  
 (a) Notice of Request. At any time, and from time to time, DLI LLC shall have the right to request that the Company effect the
registration under the Securities Act of all or a portion of the Registrable Securities owned by DLI LLC, each such request to specify the intended method or methods of disposition thereof (it being understood that the right to request registration
on a Shelf Registration Statement shall be governed by Section 1.1(b)). Upon any such request, the Company will promptly, but in any event within 15 days, give written notice of such request to all holders of Registrable Securities and thereupon the
Company will, subject to Section 1.4, use its best efforts to effect the prompt registration under the Securities Act of: 
  
 (i) the Registrable Securities which the Company has been so requested to register by DLI LLC, and 

 (ii) all other Registrable Securities which the Company has been requested to register by
the holders thereof by written request given to the Company by such holders within 15 days after the giving of such written notice by the Company to such holders, 
  
 all to the extent required to permit the disposition of the Registrable Securities so to be registered in accordance with the intended
method or methods of disposition of DLI LLC. 
  
 (b) Shelf Registration. The right of DLI LLC to request a registration of Registrable Securities pursuant to Section 1.1(a) shall include the right from and after the first anniversary of the IPO to request that the Company file a
registration statement to permit the requesting holder to sell Registrable Securities on a delayed or continuous basis pursuant to Rule 415 under the Securities Act (or any similar rule that may be adopted by the Commission) in accordance with the
intended method or methods of disposition by such requesting holder (a “Shelf Registration Statement”). Notwithstanding anything to the contrary herein, 
  
 (i) upon any Shelf Registration Statement having been declared effective, the Company shall use reasonable
best efforts to keep such Shelf Registration Statement continuously effective until the earlier of (x) such time as all Registrable Securities that could be sold under such Shelf Registration Statement have been sold or are no longer
outstanding and (y) two years from the date of effectiveness; 
  
 (ii) if at any time following the effectiveness of any Shelf Registration Statement DLI LLC desires to sell Registrable Securities pursuant thereto, DLI LLC shall notify the Company of such intent at least ten
Business Days prior to any such sale (any such proposed transaction, a “Take-down Transaction”), and the Company thereupon shall, subject to Section 1.1(c), prepare and file within ten Business Days a prospectus supplement or
post-effective amendment to the Shelf Registration Statement, as necessary, to permit the consummation of such Take-down Transaction; 
  
 (iii) upon receipt of notice from DLI LLC regarding a Take-down Transaction as provided in clause (ii) of this Section 1.1(b), the Company
shall immediately deliver notice to any other holders of Registrable Securities whose Registrable Securities have been included in such Shelf Registration Statement and shall permit such holders to participate in such Take-down Transaction (subject
to Section 1.4), it being understood, for the avoidance of doubt, that no holder other than DLI LLC shall have the right to initiate a Take-Down Transaction; and 
  

 2 

 (iv) each holder who participates in a Take-Down Transaction shall be deemed through such
participation to have represented to the Company that any information previously supplied by such holder, unless modified by such holder by written notice to the Company, remains accurate as of the date of the prospectus supplement or amendment to
the Shelf Registration Statement, as applicable.  
  
 (c) Blackout. Notwithstanding the foregoing, but subject to the rights of holders of Registrable Securities under Section 2, (a) if the Board determines in its good faith judgment, after consultation
with a firm of nationally recognized underwriters, that a requested registration under this Section 1.1 will have a material and adverse effect on the offering price of a then contemplated IPO, the Company may defer the filing (but not the
preparation) of the registration statement which is required to effect such registration during the period starting with the 30th day immediately preceding the date of anticipated filing by the Company of the registration statement and ending on the
later of (i) a date 60 days following the effective date of the registration statement relating to such IPO or (ii) such later date (not to exceed 180 days) as may be required by the managing underwriter of the IPO; provided
that at all times the Company is in good faith using all reasonable efforts to cause such registration statement to be filed as soon as possible; and provided, further, that such period shall end on such earlier date as may be
permitted by the underwriters of such underwritten public offering, and (b) if the Company shall at any time (including upon receipt of notice regarding a Take-down Transaction) furnish to DLI LLC a Material Event Notice, the Company may
defer the filing (but not the preparation) of a registration statement (or prospectus supplement or post-effective amendment, as applicable) to be filed pursuant to this Section 1.1 for up to 60 days (but the Company shall use its best efforts to
complete the transaction and file the registration statement as soon as possible). 
  
 1.2 Registration Statement Form. A registration requested pursuant to Section 1.1 shall be effected by the filing of a registration statement on a form agreed to by DLI LLC. 
  
 1.3 Expenses. The Company shall pay all Registration Expenses in
connection with any registration requested under Section 1.1; provided that each seller of Registrable Securities shall pay (a) all Registration Expenses to the extent required to be paid by such seller under applicable law and
(b) its pro rata share (based on the number of Registrable Securities included in such offering) of all underwriting discounts and commissions and transfer taxes, if any. 
  
 1.4 Priority in Demand Registrations. If a registration pursuant to Section 1.1 (including any Take-down Transaction)
involves an underwritten offering, and the 

  

 3 

 
managing underwriter (or, in the case of an offering which is not underwritten, a nationally recognized investment banking firm) shall advise the Company in
writing (with a copy to each Person requesting registration of Registrable Securities) that, in its opinion, the number of securities requested, and otherwise proposed to be included in such registration, exceeds the number which can be sold in such
offering without materially and adversely affecting the offering price, the Company shall include in such registration, to the extent of the number which the Company is so advised can be sold in such offering without such material adverse effect,
first, the Registrable Securities of DLI LLC, and the Management Stockholders, on a pro rata basis (based on the number of shares of Registrable Securities owned by each such Stockholder), and second, the securities, if
any, being sold by the Company. Notwithstanding the foregoing, the Management Stockholders shall not be entitled to participate in any such registration requested by DLI LLC (including any Take-down Transaction) to the extent that the managing
underwriter (or, in the case of an offering that is not underwritten, a nationally recognized investment banking firm) shall determine in good faith and in writing (with a copy to each affected Person requesting registration of Registrable
Securities), that the participation of management would materially and adversely affect the marketability or offering price of the securities being sold in such registration, it being understood that the Company shall include in such registration
that number of shares of the Management Stockholders which can be sold in such offering without materially and adversely affecting the marketability or offering price of the other securities to be sold in such registration. In the event of
any such determination under this Section 1.4, the Company shall give the affected holders of Registrable Securities notice of such determination and in lieu of the notice otherwise required under Section 1.1. 
  
 2. Incidental Registrations. If the Company at any time proposes to
register any of its equity securities under the Securities Act for its own account (including, but not limited to, a Shelf Registration Statement, but other than pursuant to (i) a registration on Form S-4 or S-8 or any successor form or
(ii) a registration of securities which are a combination of debt and equity), then the Company shall give prompt written notice to all holders of Registrable Securities regarding such proposed registration. Upon the written request of any
such holder made within 15 days after the receipt of any such notice (which request shall specify the number of Registrable Securities intended to be disposed of by such holder and the intended method or methods of disposition thereof), the Company
shall use its best efforts to effect the registration under the Securities Act of such Registrable Securities on a pro rata basis in accordance with such intended method or methods of disposition; provided that: 
  
 (a) (i) the Company shall not include Registrable
Securities in such proposed registration to the extent that the Board shall have determined, after consultation with the managing underwriter for such offering, that it would materially and adversely affect the offering price to include any
Registrable Securities in such registration and (ii) the Company shall not include Registrable 
  

 4 

 Securities of any Management Stockholder in any proposed registration pursuant to this Section 2 to the
extent that the managing underwriter (or, in the case of an offering that is not underwritten, a nationally recognized investment banker) shall determine in good faith that the participation of such Management Stockholder would materially and
adversely affect the marketability or the offering price of the securities being sold in such registration; and provided, further, that in the event of any such determination under clause (i) or (ii), the Company shall give the
affected holders of Registrable Securities notice of such determination and in lieu of the notice otherwise required by the first sentence of this Section 2; 
  

(b) if, at any time after giving written notice (pursuant to this Section 2) of its intention to register equity securities and prior
to the effective date of the registration statement filed in connection with such registration, the Company shall determine for any reason not to register such equity securities, the Company may, at its election, give written notice of such
determination to each holder of Registrable Securities and, thereupon, shall not be obligated to register any Registrable Securities in connection with such registration (but shall nevertheless pay the Registration Expenses in connection therewith),
without prejudice, however, to the rights of DLI LLC that a registration be effected under Section 1.1; and 
  
 (c) if in connection with a registration pursuant to this Section 2, the managing underwriter of such registration (or, in the case of an
offering that is not underwritten, a nationally recognized investment banking firm) shall advise the Company in writing (with a copy to each holder of Registrable Securities requesting registration thereof) that the number of securities requested
and otherwise proposed to be included in such registration exceeds the number which can be sold in such offering without materially and adversely affecting the offering price of the securities being sold in such registration, then in the case of any
registration pursuant to this Section 2, the Company shall include in such registration to the extent of the number which the Company is so advised can be sold in such offering without such material adverse effect, first, the securities, if
any, being sold by the Company, and second, the Registrable Securities of DLI LLC, and the Management Stockholders, on a pro rata basis (based on the number of shares of Registrable Securities owned by each such Stockholder).

  
 The Company shall pay all Registration Expenses in connection
with each registration of Registrable Securities requested pursuant to this Section 2; provided that each seller of Registrable Securities shall pay (a) all Registration Expenses to the extent required to be paid by such seller under
applicable law and (b) its pro rata share (based on the number of Registrable Securities included in such offering) of all underwriting discounts and commissions and transfer taxes, if any. No registration effected under this Section 2 shall
relieve the Company from its obligation to effect registrations under Sections 1.1. 
  

 5 

 3. Registration Procedures. Subject to Section 1.1(b), if and whenever the Company is required to
use its best efforts to effect the registration of any Registrable Securities under the Securities Act pursuant to Sections 1.1 or 2, the Company shall promptly: 
  
 (a) prepare, and as soon as practicable, but in any event within 60 days thereafter, file with the
Commission, a registration statement with respect to such Registrable Securities, make all required filings with the NASD and use its best efforts to cause such registration statement to become effective as soon as practicable; 
  
 (b) prepare and promptly file with the Commission such
amendments and post-effective amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective for so long as is required to comply with the
provisions of the Securities Act and to complete the disposition of all securities covered by such registration statement in accordance with the intended method or methods of disposition thereof, but (other than in the case of a Shelf Registration
Statement) in no event for a period of more than six months after such registration statement becomes effective; 
  
 (c) furnish copies of all documents proposed to be filed with the Commission in connection with such registration to (i) counsel
selected by DLI LLC in the case of a registration pursuant to Section 1.1, and counsel selected by the Majority Holders in all other cases (provided that, if such counsel selected by the Majority Holders determines that there could reasonably be a
conflict in also representing the Management Stockholders, then, additionally, counsel selected by the Management Stockholders participating in such offering); provided that (y) in each case such counsel shall be reasonably
satisfactory to the Company and (z) such counsel may also be counsel to the Company, and (ii) each seller of Registrable Securities (or in the case of the initial filing of a registration statement, within five business days of such
initial filing) and such documents shall be subject to the review of such counsel (which shall be reasonably prompt); provided that the Company shall not file any registration statement or any amendment or post-effective amendment or
supplement to such registration statement or the prospectus used in connection therewith to which such counsel shall have reasonably objected on the grounds that such registration statement amendment, supplement or prospectus does not comply
(explaining why) in all material respects with the requirements of the Securities Act or of the rules or regulations thereunder; 
  

 6 

 (d) furnish to each seller of Registrable Securities, without charge, such number of
conformed copies of such registration statement and of each such amendment and supplement thereto (in each case including all exhibits and documents filed therewith) and such number of copies of the prospectus included in such registration statement
(including each preliminary prospectus and any summary prospectus) and any other prospectus filed under Rule 424 under the Securities Act, in conformity with the requirements of the Securities Act, and such other documents, as such seller may
reasonably request in order to facilitate the disposition of the Registrable Securities owned by such seller in accordance with the intended method or methods of disposition thereof; 
  
 (e) use its best efforts to register or qualify such Registrable Securities covered by such registration
statement under the securities or blue sky laws of such jurisdictions as each seller shall reasonably request, and do any and all other acts and things which may be necessary or advisable to enable such seller to consummate the disposition of such
Registrable Securities in such jurisdictions in accordance with the intended method or methods of disposition thereof; provided that the Company shall not for any such purpose be required to qualify generally to do business as a foreign
corporation in any jurisdiction wherein it is not so qualified, subject itself to taxation in any jurisdiction wherein it is not so subject, or take any action which would subject it to general service of process in any jurisdiction wherein it is
not so subject; 
  
 (f) use its best efforts to
cause all Registrable Securities covered by such registration statement to be registered with or approved by such other governmental agencies, authorities or self-regulatory bodies as may be necessary by virtue of the business and operations of the
Company to enable the seller or sellers thereof to consummate the disposition of such Registrable Securities in accordance with the intended method or methods of disposition thereof; 
  
 (g) in any underwritten offering, furnish to DLI LLC: 
  
 (i) an opinion of counsel for the Company experienced in
securities law matters, dated the effective date of the registration statement (and, if such registration includes an underwritten public offering, the date of the closing under the underwriting agreement), and 
  
 (ii) a “comfort” letter (unless the registration
is pursuant to Section 2 and such a letter is not otherwise being furnished to the Company), dated the effective date of such registration statement (and if such registration includes an underwritten public offering, dated the date of the closing
under the underwriting agreement), signed by the independent public accountants who have issued an audit report on the Company’s financial statements included in the registration statement, 
  

 7 

 covering such matters as are customarily covered in opinions of counsel and in accountants’ letters
delivered to the underwriters in underwritten public offerings of securities; 
  
 (h) notify each seller of any Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any
event or existence of any fact as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the circumstances then existing, (i) in the case of a Shelf Registration Statement, if a Stockholder has provided notice of an intent to sell, within five Business Days of
such notice and (ii) in the case of any other registration statement hereunder, as promptly as is practicable but in any event, no later than 30 days after such notice (except in the case of clause (i) or (ii) to the extent the Company
delivers a Material Event Notice, in which case such period may be up to 60 days but shall end upon public disclosure of the material transaction which necessitated such Material Event Notice), prepare and furnish to such seller a reasonable number
of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such securities, such prospectus shall not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing; 
  
 (i) otherwise comply with all applicable rules and regulations of the Commission, and make available to its security holders, as soon as
reasonably practicable, an earnings statement of the Company (in form complying with the provisions of Rule 158 under the Securities Act) covering the period of at least 12 months, but not more than 18 months, beginning with the first month after
the effective date of such registration statement; 
  
 (j) notify each seller of any Registrable Securities covered by such registration statement (i) when the prospectus or any prospectus supplement or post-effective amendment has been filed, and, with respect to such registration
statement or any post-effective amendment, when the same has become effective, (ii) of any request by the Commission for amendments or supplements to such registration statement or to amend or to supplement such prospectus or for additional
information, (iii) of the issuance by the Commission of any stop order suspending the effectiveness of such registration statement or the initiation of any 
  

 8 

 proceedings for that purpose and (iv) of the suspension of the qualification of such securities
for offering or sale in any jurisdiction, or of the institution of any proceedings for any of such purposes; 
  
 (k) use every reasonable effort to obtain the lifting of any stop order that might be issued suspending the effectiveness of such
registration statement at the earliest possible moment; 
  
 (l) use its best efforts (i) (A) to list such Registrable Securities on any securities exchange on which the equity securities of the Company are then listed or, if no such equity securities are then
listed, on an exchange selected by the Company, if such listing is then permitted under the rules of such exchange, or (B) if such listing is not practicable, to secure designation of such securities as a NASDAQ “national market system
security” within the meaning of Rule 11Aa2-1 under the Exchange Act or, failing that, to secure NASDAQ authorization for such Registrable Securities, and, without limiting the foregoing, to arrange for at least two market makers to register as
such with respect to such Registrable Securities with the NASD, and (ii) to provide an independent transfer agent and registrar for such Registrable Securities not later than the effective date of such registration statement and to instruct
such transfer agent (A) to release any stop transfer order with respect to the certificates with respect to the Registrable Securities being sold and (B) to furnish certificates without restrictive legends representing ownership of the
shares being sold, in such denominations requested by the sellers of the Registrable Securities or the lead underwriter; 
  
 (m) enter into such agreements and take such other actions as the sellers of Registrable Securities or the underwriters reasonably request
in order to expedite or facilitate the disposition of such Registrable Securities, including, without limitation, preparing for, and participating in, such number of “road shows” and all such other customary selling efforts as the
underwriters reasonably request in order to expedite or facilitate such disposition; 
  
 (n) furnish to any holder of such Registrable Securities, and to any underwriter, counsel, accountant or other agent retained by such
holder or underwriter on a confidential basis such information and assistance as such holder or underwriter may reasonably request in connection with any “due diligence” effort which such seller deems appropriate; and 
  
 (o) use its best efforts to take all other steps necessary
to effect the registration of such Registrable Securities contemplated hereby. 
  
 As a condition to its registration of Registrable Securities of any prospective seller, the Company may require such seller of any Registrable Securities as to which any registration is being effected to execute
powers-of-attorney, custody 

  

 9 

 
arrangements and other customary agreements appropriate to facilitate the offering and to furnish to the Company such information regarding such seller, its
ownership of Registrable Securities and the disposition of such Registrable Securities as the Company may from time to time reasonably request in writing and as shall be required by law in connection therewith. Each such holder agrees to furnish
promptly to the Company all information required to be disclosed in order to make the information previously furnished to the Company by such holder not materially misleading. 
  
 The Company agrees not to file or make any amendment to any registration statement with respect to any Registrable
Securities, or any amendment of or supplement to the prospectus used in connection therewith, which refers to any holder of Registrable Securities, or otherwise identifies any holder of Registrable Securities as the holder of any Registrable
Securities, without the consent of such holder, such consent not to be unreasonably withheld or delayed, unless such disclosure is required by law, in which case the Company will provide written notice to such holder no less than five days prior to
such amendment of or supplement to the prospectus. 
  
 By
acquisition of Registrable Securities, each holder of such Registrable Securities shall be deemed to have agreed that upon receipt of any notice from the Company of the happening of any event of the kind described in Section 3(h), such holder will
promptly discontinue such holder’s disposition of Registrable Securities pursuant to the registration statement covering such Registrable Securities until such holder’s receipt of the copies of the supplemented or amended prospectus
contemplated by Section 3(h). If so directed by the Company, each holder of Registrable Securities will deliver to the Company (at the Company’s expense) all copies, other than permanent file copies, in such holder’s possession of the
prospectus covering such Registrable Securities at the time of receipt of such notice. In the event that the Company shall give any such notice, the period mentioned in Section 3(a) shall be extended by the number of days during the period from and
including the date of the giving of such notice to and including the date when each seller of any Registrable Securities covered by such registration statement shall have received the copies of the supplemented or amended prospectus contemplated by
Section 3(h). 
  
 4. Underwritten Offerings. 
  
 4.1 Underwriting Agreement. If requested by the underwriters for any
underwritten offering pursuant to a registration requested under Section 1.1 or 2 (including any Take-down Transaction), the Company shall enter into an underwriting agreement with the underwriters for such offering, such agreement to be reasonably
satisfactory in substance and form to the underwriters and to DLI LLC (unless DLI LLC is not participating in such registration, in which case, counsel to the Majority Holders). Any such underwriting agreement shall contain such representations and
warranties by the Company and such other terms and provisions as are customarily contained in 

  

 10 

 
agreements of this type, including, without limitation, indemnities to the effect and to the extent provided in Section 7. Each holder of Registrable
Securities to be distributed by such underwriter shall be a party to such underwriting agreement and may, at such holder’s option, require that any or all of the representations and warranties by, and the agreements on the part of, the Company
to and for the benefit of such underwriters be made to and for the benefit of such holder of Registrable Securities and that any or all of the conditions precedent to the obligations of such underwriters under such underwriting agreement shall also
be conditions precedent to the obligations of such holder of Registrable Securities. No Stockholder in its capacity as stockholder and/or controlling person (but not in its capacity as a director or officer of the Company) shall be required by any
underwriting agreement to make any representations or warranties to or agreements with the Company or the underwriters other than representations, warranties or agreements regarding such holder, the ownership of such holder’s Registrable
Securities and such holder’s intended method or methods of disposition and any other representation required by law or to furnish any indemnity to any Person which is broader than the indemnity furnished by such holder pursuant to Section 7.2.

  
 4.2 Selection of Underwriters. If the Company at any
time proposes to register any of its securities under the Securities Act for sale for its own account pursuant to an underwritten offering, the Company will have the right to select the managing underwriter (which shall be of nationally recognized
standing) to administer the offering, but if DLI LLC and its Affiliates at such time own at least 51% of the number of shares of Common Stock they own on the date hereof, only with the approval of DLI LLC, such approval not to be unreasonably
withheld. Notwithstanding the foregoing sentence, whenever a registration requested pursuant to Section 1.1 is for an underwritten offering, DLI LLC will have the right to select the managing underwriter (which shall be of nationally recognized
standing) to administer the offering, but only with the approval of the Company, such approval not to be unreasonably withheld. 
  
 5. Holdback Agreements. 
  
 (a) If and whenever the Company proposes to register any of its equity securities under the Securities Act for its own account (other than
pursuant to (i) a registration on Form S-4 or S-8 or any successor form or (ii) a registration of securities which are a combination of debt and equity) or is required to use its best efforts to effect the registration of any
Registrable Securities under the Securities Act pursuant to Section 1.1 or 2, each holder of Registrable Securities agrees by acquisition of such Registrable Securities not to effect any sale or distribution, including any sale pursuant to Rule 144
under the Securities Act, or to request registration under Section 1.1 of any Registrable Securities within seven days prior to and 90 days (unless advised by the managing underwriter that a longer period, not to exceed 180 days, is required, or
such shorter period as the managing underwriter for any underwritten offering may agree) after the effective date of 
  

 11 

 the registration statement relating to such registration (the “Trigger Date”),
except as part of such registration or unless, in the case of a sale or distribution not involving a public offering, the transferee agrees in writing to be subject to this Section 5, even if such Registrable Securities cease to be Registrable
Securities upon such transfer; provided that, with respect to any Shelf Registration Statement, the Trigger Date shall be the pricing of any offering made under such registration statement. If requested by such managing underwriter, each
holder of Registrable Securities agrees to execute an agreement to such effect with the Company and consistent with such managing underwriter’s customary form of holdback agreement. 
  
 (b) The Company agrees not to effect any public sale or distribution of its equity securities or securities
convertible into or exchangeable or exercisable for any of such securities within seven days prior to and 90 days (or such longer period, not to exceed 180 days, which may be required by the managing underwriter, or such shorter period as the
managing underwriter may agree) after the Trigger Date with respect to any registration statement filed pursuant to Section 1.1 (except (i) as part of such registration, (ii) as permitted by any related underwriting agreement,
(iii) pursuant to an employee equity compensation plan, (iv) pursuant to an acquisition or strategic relationship, bank or equipment financing or similar transaction, (v) pursuant to a registration on Form S-4 or S-8 or any
successor form and (vi) pursuant to a registration of securities which are a combination of debt and equity; provided that, with respect to any Shelf Registration Statement, the Trigger Date shall be the pricing of any offering made
under such registration statement. In addition, if, and to the extent requested by the managing underwriter, the Company shall use its best efforts to cause each holder (other than any holder already subject to Section 5(a)) of its equity securities
or any securities convertible into or exchangeable or exercisable for any of such securities, whether outstanding on the date of this Agreement or issued at any time after the date of this Agreement (other than any such securities acquired in a
public offering), to agree not to effect any such public sale or distribution of such securities during such period, except as part of any such registration if permitted, and to cause each such holder to enter into an agreement to such effect with
the Company and consistent with such managing underwriter’s customary form of holdback agreement. 
  
 6. Preparation; Reasonable Investigation. In connection with the preparation and filing of each registration statement registering Registrable
Securities under the Securities Act, the Company shall give the underwriters, counsel to such underwriters, accountants, agents and counsel for holders of Registrable Securities the opportunity to participate in the preparation of such registration
statement, each prospectus included therein or filed with the Commission, and each amendment thereof or supplement thereto, and shall give such counsel access to the financial and other records, pertinent corporate 

  

 12 

 
documents and properties of the Company and its subsidiaries and opportunities to discuss the business of the Company with its officers and the independent
public accountants who have issued audit reports on its financial statements in each case as shall be reasonably requested by such underwriters, counsel to such underwriters, accountants, agents and counsel for holders of Registrable Securities in
connection with such registration statement. 
  
 7.
Indemnification. 
  
 7.1 Indemnification by the
Company. In the event of any registration of any Registrable Securities pursuant to this Agreement, the Company shall indemnify, defend and hold harmless (a) each seller of such Registrable Securities, (b) the directors, members,
stockholders, officers, partners, employees, agents and Affiliates of such seller, (c) each Person who participates as an underwriter in the offering or sale of such securities and (d) each person, if any, who controls (within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) any of the foregoing (“Controlling Persons”) against any and all losses, claims, damages or liabilities (or actions or proceedings in respect
thereof), jointly or severally, directly or indirectly, based upon or arising out of (i) any untrue statement or alleged untrue statement of a fact contained in any registration statement under which such Registrable Securities were
registered under the Securities Act, any preliminary prospectus, final prospectus or summary prospectus contained therein or used in connection with the offering of securities covered thereby, or any amendment or supplement thereto, or (ii)
any omission or alleged omission to state a fact required to be stated therein or necessary to make the statements therein not misleading; and the Company will reimburse each such indemnified party for any legal or any other expenses reasonably
incurred by them in connection with enforcing its rights hereunder or under the underwriting agreement entered into in connection with such offering or investigating, preparing, pursuing or defending any such loss, claim, damage, liability, action
or proceeding, except insofar as any such loss, claim, damage, liability, action, proceeding or expense arises out of or is based upon an untrue statement or omission made in such registration statement, any such preliminary prospectus, final
prospectus, summary prospectus, amendment or supplement in reliance upon and in conformity with written information furnished to the Company by such seller or any of its Controlling Persons expressly for use in the preparation thereof in accordance
with the second sentence of Section 7.2. Such indemnity shall remain in full force and effect, regardless of any investigation made by such indemnified party and shall survive the transfer of such Registrable Securities by such seller. If the
Company is entitled to, and does, assume the defense of the related action or proceedings provided herein, then the indemnity agreement contained in this Section 7.1 shall not apply to amounts paid in settlement of any such loss, claim, damage,
liability, action or proceeding if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld or delayed). 
  

 13 

 7.2 Indemnification by the Sellers. It shall be a condition to including any Registrable
Securities in any registration statement filed pursuant to Section 1.1, or 2 (including any Take-down Transaction) that the Company shall have received an undertaking satisfactory to it from each of the prospective sellers of such Registrable
Securities to indemnify and hold harmless, severally, not jointly, in the same manner and to the same extent as set forth in Section 7.1, the Company, its directors, officers, employees, agents and each person, if any, who controls (within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company, with respect to any statement or alleged statement in or omission or alleged omission from such registration statement, any preliminary prospectus, final
prospectus or summary prospectus contained therein, or any amendment or supplement thereto, if such statement or alleged statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the
Company by such seller expressly for use in the preparation of such registration statement, preliminary prospectus, final prospectus, summary prospectus, amendment or supplement. The Company and the holders of the Registrable Securities in their
capacities as stockholders and/or controlling persons (but not in their capacities as managers of the Company) hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such holders, the only information furnished or to
be furnished to the Company for use in any registration statement or prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated therewith are statements specifically relating to (a)
transactions between such holder and its Affiliates, on the one hand, and the Company, on the other hand, (b) the beneficial ownership of shares of Common Stock by such holder and its Affiliates and (c) the name and address of such
holder. If any additional information about such holder or the plan of distribution (other than for an underwritten offering) is required by law to be disclosed in any such document, then such holder shall not unreasonably withhold its agreement
referred to in the immediately preceding sentence of this Section 7.2. Such indemnity shall remain in full force and effect, regardless of any investigation made by or on behalf of the Company or any such director, officer or controlling person and
shall survive the transfer of such Registrable Securities by such seller. The indemnity agreement contained in this Section 7.2 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such
settlement is effected without the consent of such seller (which consent shall not be unreasonably withheld or delayed). The indemnity provided by each seller of Registrable Securities under this Section 7.2 shall be limited in amount to the net
amount of proceeds actually received by such seller from the sale of Registrable Securities pursuant to such registration statement. 
  
 7.3 Notices of Claims, etc. Promptly after receipt by an indemnified party of notice of the commencement of any action or proceeding involving a
claim referred to in the preceding paragraphs of this Section 7, such indemnified party shall, if a claim in respect thereof is to be made against an indemnifying party, give written notice to the indemnifying party of the commencement of such
action or proceeding; provided that the 

  

 14 

 
failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its obligations under the preceding paragraphs
of this Section 7, except to the extent that the indemnifying party is materially prejudiced by such failure to give notice. In case any such action is brought against an indemnified party, the indemnifying party shall be entitled to participate
therein and to assume the defense thereof, jointly with any other indemnifying party similarly notified, to the extent that it may wish, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to
such indemnified party of its election so to assume the defense thereof, the indemnifying party will not be liable to such indemnified party for any legal or other expenses subsequently incurred by the latter in connection with the defense thereof
except for the reasonable fees and expenses of any counsel retained by such indemnified party to monitor such action or proceeding. Notwithstanding the foregoing, if such indemnified party reasonably determines, based upon advice of independent
counsel, that a conflict of interest may exist between the indemnified party and the indemnifying party with respect to such action and that it is advisable for such indemnified party to be represented by separate counsel, such indemnified party may
retain other counsel, reasonably satisfactory to the indemnifying party, to represent such indemnified party, and the indemnifying party shall pay all reasonable fees and expenses of such counsel. No indemnifying party, in the defense of any such
claim or litigation, shall, except with the consent of such indemnified party, which consent shall not be unreasonably withheld, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof
the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect of such claim or litigation. 
  
 7.4 Other Indemnification. Indemnification similar to that specified in the preceding paragraphs of this Section 7 (with appropriate modifications)
shall be given by the Company and each seller of Registrable Securities with respect to any required registration (other than under the Securities Act) or other qualification of such Registrable Securities under any federal or state law or
regulation of any governmental authority. 
  
 7.5
Indemnification Payments. Any indemnification required to be made by an indemnifying party pursuant to this Section 7 shall be made by periodic payments to the indemnified party during the course of the action or proceeding, as and when bills
are received by such indemnifying party with respect to an indemnifiable loss, claim, damage, liability or expense incurred by such indemnified party. 
  
 7.6 Other Remedies. If for any reason any indemnification specified in the preceding paragraphs of this Section 7 is unavailable, or is
insufficient to hold harmless an indemnified party, other than by reason of the exceptions provided therein, then the indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of such losses, claims,
damages, liabilities, actions, proceedings or 

  

 15 

 
expenses in such proportion as is appropriate to reflect the relative benefits to and faults of the indemnifying party on the one hand and the indemnified
party on the other (taking into account the portion of the proceeds of the offering realized by such party) and the statements or omissions or alleged statements or omissions which resulted in such loss, claim, damage, liability, action, proceeding
or expense, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue statement of a material fact or
the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statements
or omissions. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. Notwithstanding the
other provisions of this Section 7, in respect of any claim for indemnification pursuant to this Section 7, no indemnifying party (other than the Company) shall be required to contribute pursuant to this Section 7.6 any amount in excess of
(a) the net proceeds received and retained by such indemnifying party from the sale of its Registrable Securities covered by the applicable registration statement, preliminary prospectus, final prospectus, or supplement or amendment thereto,
filed pursuant hereto, deducting therefrom, in the case of the Management Stockholders, the price paid by the Management Stockholders to acquire the equity securities of the Company pursuant to the exercise of options, minus (b) any
amounts previously paid by such indemnifying party pursuant to this Section 7 in respect of such claim, it being understood that insofar as such net proceeds have been distributed by any indemnifying party to its partners, stockholders or members,
the amount of such indemnifying party’s contribution hereunder shall be limited to the net proceeds which it actually recovers from its partners, stockholders or members based upon their relative fault and that to the extent that such
indemnifying party has not distributed such net proceeds, the amount such indemnifying party’s contribution hereunder shall be limited by the percentage of such net proceeds which corresponds to the percentage equity interests in such
indemnifying party held by those of its partners, stockholders or members who have been determined to be at fault. No party shall be liable for contribution under this Section 7.6 except to the extent and under such circumstances as such party would
have been liable for indemnification under this Section 7 if such indemnification were enforceable under applicable law. 
  
 8. Representations and Warranties. Each Stockholder represents and warrants to the Company and each other Stockholder that: 
  
 (a) such Stockholder has the power, authority and capacity
(or, in the case of any Stockholder that is a corporation, limited liability company or limited partnership, all corporate, limited liability company or limited partnership power and authority, as the case may be) to execute, deliver and perform
this Agreement; 
  

 16 

 (b) in the case of a Stockholder that is a corporation, limited liability company or
limited partnership, the execution, delivery and performance of this Agreement by such Stockholder has been duly and validly authorized and approved by all necessary corporate, limited liability company or limited partnership action, as the case may
be; 
  
 (c) this Agreement has been duly and
validly executed and delivered by such Stockholder and constitutes a valid and legally binding obligation of such Stockholder, enforceable in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting or relating to creditors’ rights generally and general principles of equity; and 
  
 (d) the execution, delivery and performance of this Agreement by such Stockholder does not and will not violate the terms of or result in
the acceleration of any obligation under (i) any material contract, commitment or other material instrument to which such Stockholder is a party or by which such Stockholder is bound or (ii) in the case of a Stockholder that is a
corporation, limited liability company or limited partnership, the certificate of incorporation, certificate of formation, certificate of limited partnership, by-laws, limited liability company agreement or limited partnership agreement, as the case
may be. 
  
 9. Definitions. For purposes of this Agreement,
the following terms shall have the following respective meanings: 
  
 Affiliate: a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Person specified. 
  
 Business Day: means any day on which banks are not required or authorized to close in the City of New York.

  
 Board: the board of directors of the Company.

  
 Commission: the Securities and Exchange Commission.

  
 Common Stock: the Common Stock of the Company, par
value $.01 per share, or any other securities of the Company or any other Person issued with respect to such Common Stock by way of a conversion, exchange, replacement, stock dividend or stock split or other distribution in connection with a
combination of shares, conversion exchange, replacement, recapitalization, merger, consolidation or other reorganization or otherwise. 
  

 17 

 Exchange Act: the Securities Exchange Act of 1934, as amended, or any successor federal statute,
and the rules and regulations thereunder which shall be in effect at the time. 
  
 IPO: an underwritten initial public offering of Common Stock having an aggregate offering value (measured by the Company’s proceeds before underwriters’ discounts and selling commissions) of at least
$75 million and after which an established trading market exists for the Common Stock. 
  
 Majority Holders: the holders of at least 51% of the Registrable Securities that are participating in the registration at issue. 
  
 Material Event Notice: a certificate signed by the President of the Company stating that the Company has pending or
in process, as of the date of such certificate, a material transaction (including, but not limited to, a financing transaction), the disclosure of which would, in the good faith judgment of the Board, materially and adversely affect the Company.

  
 NASD: National Association of Securities Dealers, Inc.

  
 NASDAQ: the Nasdaq National Market. 
  
 Person: an individual, corporation, partnership, limited liability
company, joint venture, association, trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 
  
 Registrable Securities: the shares of Common Stock beneficially owned (within the meaning of Rule 13d-3 of the
Exchange Act) by DLI LLC, the Management Stockholders or the Permitted Transferees (as such term is defined in Section 10.2), except for any shares of Common Stock beneficially owned held by a Management Stockholder that (x)
were issued to such Management Stockholder pursuant to an effective registration statement under the Securities Act on Form S-8 or (y) may be sold by such Management Stockholder pursuant to Rule 144(k) under the Securities Act. As to any
particular shares of Common Stock, such securities shall cease to be Registrable Securities when (i) a registration statement with respect to the sale of such securities shall have become effective under the Securities Act and such securities
shall have been disposed of in accordance with such registration statement, (ii) a registration statement on Form S-8 with respect to the sale of such securities shall have become effective under the Securities Act, (iii) they shall
have been sold to the public pursuant to Rule 144 under the Securities Act, (iv) they shall have been otherwise transferred other than to a Permitted Transferee and subsequent disposition of them shall not require registration or
qualification of them under the Securities Act or any similar state law then in force or (v) they shall have ceased to be outstanding. Any and all shares of Common Stock which 

  

 18 

 
may be issued in respect of, in exchange for, or in substitution for any Registrable Securities, whether by reason of any stock split, stock dividend,
reverse stock split, recapitalization, combination or otherwise, shall also be “Registrable Securities” hereunder. 
  
 Registration Expenses: all expenses incident to the Company’s performance of or compliance with any registration pursuant to this Agreement,
including, without limitation, (i) registration, filing and NASD fees, (ii) fees and expenses of complying with securities or blue sky laws, (iii) fees and expenses associated with listing securities on an exchange or NASDAQ,
(iv) word processing, duplicating and printing expenses, (v) messenger and delivery expenses, (vi) transfer agents’, trustees’, depositories’, registrars’ and fiscal agents’ fees, (vii) fees and
disbursements of counsel for the Company and of its independent public accountants, including the expenses of any special audits or “cold comfort” letters, (viii) reasonable fees and disbursements of the counsel retained by the
sellers of Registrable Securities, which counsel shall be designated in the manner specified in Section 3(c), and (ix) any fees and disbursements of underwriters customarily paid by issuers or sellers of securities, but excluding underwriting
discounts and commissions and transfer taxes, if any. 
  
 Securities Act: the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations thereunder which shall be in effect at the time. 
  
 Stockholders Agreement: the Stockholders Agreement, dated as of the date hereof, as the same may be amended from time
to time, among the Company, DLI LLC and the Management Stockholders. 
  
 10. Miscellaneous. 
  
 10.1 Rule 144, etc.
If the Company shall have filed a registration statement pursuant to the requirements of Section 12 of the Exchange Act or a registration statement pursuant to the requirements of the Securities Act relating to any class of equity securities, the
Company shall file the reports required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the Commission thereunder, and shall take such further action as any holder of Registrable Securities
may reasonably request, all to the extent required from time to time to enable such holder to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by (a) Rule 144 under the
Securities Act, as such rule may be amended from time to time, or (b) any successor rule or regulation hereafter adopted by the Commission. Upon the request of any holder of Registrable Securities, the Company shall deliver to such holder a
written statement as to whether it has complied with such requirements. 
  

 19 

 10.2 Successors, Assigns and Transferees. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective permitted successors and assigns under this Section 10.2. The provisions of this Agreement which are for the benefit of a holder of Registrable Securities shall be for the benefit of and enforceable
by any transferee of such Registrable Securities; provided that (i) such transferee acquires such Registrable Securities in accordance with all of the terms of the Stockholders Agreement and pursuant to an express assignment from the
transferor, and (ii) such transferee executes a joinder agreement agreeing to be bound by all of the transferor’s obligations hereunder, including, without limitation, Section 5 hereof, copies of which shall have been delivered to the
Company (each such transferee, a “Permitted Transferee”). Notwithstanding anything herein to the contrary, the Management Stockholders must exercise all rights hereunder on behalf of any of their Permitted Transferees and all
other parties hereto shall be entitled to deal exclusively with the Management Stockholders and rely on the consent, waiver or any other action by the Management Stockholders as the consent, waiver or other action, as the case may be, of any such
Permitted Transferees of such Management Stockholders. 
  
 10.3
Stock Splits, etc. Each holder of Registrable Securities agrees that it will vote to effect a stock split, reverse stock split, recapitalization or combination with respect to any Registrable Securities in connection with any registration of
any Registrable Securities hereunder, or otherwise, if (i) the managing underwriter shall advise the Company in writing (or, in connection with an offering that is not underwritten, if an investment banker shall advise the Company in writing)
that in its opinion such a stock split, reverse stock split, recapitalization or combination would facilitate or increase the likelihood of success of the offering, and (ii) such stock split, reverse stock split, recapitalization or combination does
not impact the respective ownership percentages of each such holder of Registrable Securities in the Company. The Company shall cooperate in all respects in effecting any such stock split, reverse stock split, recapitalization or combination.

  
 10.4 Amendment and Modification. This Agreement may be
amended, modified or supplemented by the Company with the written consent of DLI LLC and a majority (by number of shares) of any other holders of Registrable Securities whose interests would be adversely affected by such amendment, modification or
supplement or, to the extent (and only to the extent) any particular holder of Registrable Securities would be uniquely and adversely affected by a proposed amendment, modification or supplement, by such holder; provided that the interests of
any existing holders of Registrable Securities shall not be adversely affected by an amendment, modification or supplement of this Agreement that provides for or has the effect of providing for an additional grant of demand registration rights or of
incidental registration rights with a lower or the same priority as the rights held by such existing holders of Registrable Securities, as long as any such grant of incidental registration rights with the same priority are pari passu with
those held by such existing holders of Registrable Securities. 
  

 20 

 10.5 Additional Management Stockholders. Notwithstanding anything in this Agreement to the
contrary, the Company may, with the consent of DLI LLC (and only the consent of DLI LLC), admit additional Management Stockholders to this Agreement and amend Schedule 1 accordingly; provided that any such Management Stockholder has become a
party to the Stockholders Agreement and executes and delivers a joinder agreement to this Agreement and such other agreements or documents as may reasonably be requested by the Company. 
  
 10.6 Governing Law. This Agreement and the rights and obligations of the parties hereunder and the Persons subject
hereto shall be governed by, and construed and interpreted in accordance with, the laws of the State of Delaware, without giving effect to the choice of law principles thereof. 
  
 10.7 Invalidity of Provision. The invalidity or unenforceability of any provision of this Agreement in any
jurisdiction shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of this Agreement, including that provision, in any other jurisdiction. 
  
 10.8 Notices. All notices, requests, demands, letters, waivers and
other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered personally, (b) mailed, certified or registered mail with postage prepaid,
(c) sent by next-day or overnight mail or delivery or (d) sent by fax, as follows: 
  

	 	(i)	 	If to the Company, to it at: 

  
 c/o Kelso & Company 
 320 Park Avenue,
24th Floor 
 New York, New York 10022 
 Attention: James J. Connors II, Esq. 
 Telecopy No.: (212) 751-3939 
  
 with a copy to Debevoise & Plimpton LLP at its address set forth in (iv) below. 
  

	 	(ii)	 	If to a Management Stockholder, as provided on Schedule 1. 

  

	 	(iii)	 	If to DLI LLC, to it at: 

  
 c/o Kelso & Company 
 320 Park Avenue,
24th Floor 
 New York, New York 10022 
 Attention: James J. Connors II, Esq. 
 Telecopy No.: (212) 751-3939 
  

 21 

 with a copy to: 
  

Debevoise & Plimpton LLP 
 919 Third
Avenue 
 New York, New York 10022 
 Attention: Margaret A. Davenport, Esq. 
 Telecopy No.: (212) 909-6836 
  
 or to such other Person or address as any party shall specify by notice in writing to the Company. All such notices, requests, demands,
letters, waivers and other communications shall be deemed to have been received (w) if by personal delivery on the day after such delivery, (x) if by certified or registered mail, on the fifth business day after the mailing thereof,
(y) if by next-day or overnight mail or delivery, on the day delivered, or (z) if by fax, on the day delivered; provided that such delivery is confirmed. 
  
 10.9 Headings; Execution in Counterparts. The headings and captions contained herein are for convenience and shall
not control or affect the meaning or construction of any provision hereof. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and which together shall constitute one and the same instrument.

  
 10.10 Injunctive Relief. Each of the parties recognizes
and agrees that money damages may be insufficient and, therefore, in the event of a breach of any provision of this Agreement the aggrieved party may elect to institute and prosecute proceedings in any court of competent jurisdiction to enforce
specific performance or to enjoin the continuing breach of this Agreement. Such remedies shall, however, be cumulative and not exclusive, and shall be in addition to any other remedy which such party may have. 
  
 10.11 Term. This Agreement shall be effective as of the date hereof
and shall continue in effect thereafter until the earlier of (a) its termination by the consent of the parties hereto or their respective successors in interest and (b) the date on which no Registrable Securities remain outstanding;
provided that, the parties’ respective rights and obligations under Section 7 shall survive the termination of this Agreement. 
  
 10.12 Further Assurances. Subject to the specific terms of this Agreement, each of the Company and the Stockholders shall make, execute,
acknowledge and deliver such other instruments and documents, and take all such other actions, as may be reasonably required in order to effectuate the purposes of this Agreement and to consummate the transactions contemplated hereby. 
  
 10.13 Entire Agreement. This Agreement, the Stockholders Agreement,
the Stock Subscription Agreements (as defined in the Stockholders Agreement) and any 

  

 22 

 
agreements entered into in connection with any of the foregoing constitute the entire agreement and the understanding of the parties hereto with the matters
referred to herein. This Agreement and the agreements referred to in the preceding sentence supersede all prior agreements and understandings between the parties with respect to such matters. 
  

 23 

 IN WITNESS WHEREOF, this Agreement has been signed by each of the parties hereto, and shall be effective
as of the date first above written. 
  

			
	DLI HOLDING CORP.
		
	By:	 	 /s/ William McMenemy

	Name:	 	William McMenemy
	Title:	 	President and Chief Executive Officer
	
	DLI HOLDING LLC
		
	By:	 	 /s/ James J. Connors, II

	Name:	 	James J. Connors, II
	Title:	 	Vice President and Secretary
	
	 /s/ William McMenemy

	William McMenemy
	
	 /s/ Charles J. Hinkaty

	Charles J. Hinkaty
	
	 /s/ Harvey P. Alstodt

	Harvey P. Alstodt

 Schedule 1 
  
 William McMenemy 
 Charles J. Hinkaty 
 Harvey P. Alstodt

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]