Document:

Exhibit 10.10

 

WARRANT

 

	
THE   SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE   UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY OTHER   APPLICABLE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD, ASSIGNED,   PLEDGED OR OTHERWISE TRANSFERRED AT ANY TIME WITHOUT EFFECTIVE REGISTRATION   UNDER SUCH ACT AND LAWS OR AN EXEMPTION THEREFROM.

 

THE   SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL   RESTRICTIONS ON TRANSFER SPECIFIED HEREIN, AND THE COMPANY RESERVES THE RIGHT   TO REFUSE THE TRANSFER OF SUCH UNITS UNTIL SUCH TRANSFER IS IN COMPLIANCE   HEREWITH.
    

 

	
Warrant   No. 1
    	
Issue   Date: June 30, 2009

(the   “Issue Date”)
    

 

This certifies that, for value received, FIFTH THIRD BANK, a bank chartered under the laws of the State of Ohio (inclusive of any permitted transferee hereunder, the “Holder”), is entitled to purchase up to [·] fully paid and nonassessable Underlying Units, subject to adjustment pursuant to Section 3 (as adjusted pursuant to the terms hereof, the “Warrant Units”) of VANTIV HOLDING, LLC (formerly known as FTPS Holding, LLC), a Delaware limited liability company (the “Company”), at the Exercise Price and pursuant to the terms, and subject to the conditions, set forth in this warrant (this “Warrant”).

 

All capitalized terms used, but not otherwise defined, in this Warrant are defined in Section 10.

 

1.                                       Exercisability of Warrant.  This Warrant shall be exercisable, in whole or in part, and from time to time, but not during a Restricted Period, during the period beginning on the Issue Date and terminating at the Expiration Time (such period, the “Warrant Exercise Period”); provided, however, that notwithstanding the existence of a Restricted Period, this Warrant shall be exercisable at any time after (i) the Internal Revenue Service has issued a private letter ruling confirming that the exercise of the Warrant will not cause a capital shift that would result in a taxable event for Vantiv, Inc., a Delaware corporation (“Vantiv”), (ii) the Treasury Department has enacted as final regulations the proposed noncompensatory partnership regulations proposed by REG-103580-02 (published January 22, 2003 and corrected April 1, 2003), in a form that confirms that the exercise of the Warrant will not cause such a capital shift, or (iii) in connection with the exercise of the Warrant, Fifth Third Bank if Fifth Third Bank is the Holder, or such other Holder so long as such other Holder’s creditworthiness is reasonably satisfactory to the Company or, to the extent consented to by Fifth Third Bank, Fifth Third Bank agrees to indemnify the Company and Vantiv for an amount equal to 70% of the taxes payable in respect of any income or gain recognized by the Company or Vantiv (including interest, penalties and additions to tax) resulting from a capital shift resulting from the exercise of the Warrant.

 

(1)                                  Note to Draft: Needs to correlate to existing 11,594,203.

 

 

The “Exercise Price” shall be $[·](1) per Warrant Unit and shall be subject to adjustment as set forth in Section 3.  The Company has reserved and will keep available, out of the authorized and unissued Units, the full number of Underlying Units sufficient to provide for the exercise of the rights of purchase represented by this Warrant.  The Company shall promptly take such corporate action as may be necessary from time to time to increase its authorized but unissued Underlying Units to such number as is sufficient for the exercise of this Warrant in its entirety.  Upon issuance and delivery (either against payment or following any net exercise pursuant to the terms of this Warrant), all Warrant Units will be duly authorized and validly issued, free from all preemptive rights of any holder of Underlying Units, and free from all taxes, liens and charges with respect to the issue thereof (other than transfer taxes) and, if the Underlying Units are then listed on any national securities exchange or quoted on NASDAQ, will be duly listed or quoted thereon, as the case may be, at the Company’s expense.  This Warrant shall automatically expire and terminate at, and shall no longer be exercisable after, the Expiration Time.

 

2.                                       Method of Exercise.

 

(a)                                  Exercise for Cash.  This Warrant may be exercised by the Holder, in whole or in part, at any time, or from time to time, during the Warrant Exercise Period by (i) the surrender of this Warrant, properly endorsed, at the principal office of the Company, (ii) the payment of the Exercise Price in respect of the Warrant Units being purchased and (iii) delivery to the Company of the Form of Subscription attached hereto (or a reasonable facsimile thereof) completed and duly executed by the Holder The Exercise Price may be paid in cash, by wire transfer to an account specified in advance by the Company or by certified or bank cashier’s check.

 

(b)                                 Net Exercise.  This Warrant may also be exercised by the Holder, in whole or in part, during the Warrant Exercise Period by (i) the surrender of this Warrant, properly endorsed, at the principal office of the Company and (ii) delivery to the Company of the Form of Subscription attached hereto (or a reasonable facsimile thereof) completed and duly executed by the Holder and indicating that this Warrant is being net exercised, in which case the Company shall issue to the Holder such number of Warrant Units as is computed using the following formula:

 

	
X = 
    	
 
    	
Y * (A – B)
    
	
A
    

 

where:             X =                             the number of Warrant Units to be issued to the Holder pursuant to this Section 2(b);

 

Y =                              the number of Warrant Units covered by this Warrant in respect of which the net issue election is made pursuant to this Section 2(b);

 

A =                            the Fair Market Value of one Warrant Unit; and

 

(2)                                  Note to Draft: Exercise Price needs to correlate to what existing $28.088235 would be.

 

 

B =                              the Exercise Price in effect under this Warrant at the time such net exercise is made pursuant to this Section 2(b).

 

(c)                                  Effective Time of Exercise.  Each exercise of this Warrant shall be deemed to have been effected, and the Person entitled to receive the Warrant Units for which this Warrant is exercised shall be treated for all purposes as the holder of record of such Warrant Units, immediately prior to the close of business on the Business Day on which (i) this Warrant was surrendered to the Company, (ii) if such exercise is made for cash pursuant to Section 2(a), the Company received payment of the Exercise Price in respect of the Warrant Units being purchased and (iii) the Company received the Form of Subscription attached hereto (or a reasonable facsimile thereof), all as provided in this Section 2.

 

(d)                                 Delivery of Warrant Units and Remainder of Unexercised Warrant.  In the event of any exercise of this Warrant, certificates for the Warrant Units for which this Warrant is exercised will be delivered at the Company’s expense to the Holder within five (5) Business Days after this Warrant is exercised, and unless this Warrant has expired, a new warrant containing identical terms and conditions as contained in this Warrant representing the number of Warrant Units, if any, with respect to which this Warrant was not exercised shall also be issued to the Holder at such time.

 

(e)                                  Fractional Units.  No fractional Warrant Units will be issued in connection with any exercise hereunder, but in lieu of such fractional Warrant Units, the Company shall make a cash payment to the Holder in an amount equal to the Fair Market Value of such fractional Warrant Units.

 

3.                                       Structural Anti-Dilution Adjustments.  The Exercise Price and the number of Warrant Units as to which this Warrant may be exercised are subject to adjustment from time to time, as provided in this Section 3.

 

(a)                                  Adjustment Events.  If the Company (i) fixes a record date for any distribution on its Units other than a Quarterly Distribution (as defined in the LLC Agreement), (ii) forward splits or subdivides its outstanding Units into a greater number of Units, (iii) reverse splits or combines its outstanding Units into a smaller number of Units, (iv) issues new Units below Fair Market Value, (v) effects a Pro Rata Repurchase or (vi) reclassifies or otherwise changes the Units into the same or a different number of securities of any other class or classes of securities of the Company (each of the events described in (i)-(vi), an “Adjustment Event”) then (x) this Warrant will become exercisable for the aggregate number and kind of Warrant Units that the Holder would have owned immediately following such record date (in the case of a distribution) or action if this Warrant had been exercised immediately prior to such record date (in the case of a distribution) or action, and the number of Warrant Units as to which this Warrant may be exercised immediately prior to such record date (in the case of a distribution) or action shall be proportionately adjusted on an equitable basis and (y) the Exercise Price in effect immediately prior to such record date (in the case of a distribution) or action shall be proportionately adjusted on an equitable basis, assuming for purposes of determining the adjustment to the Warrant Units under this Section 3(a)

 

 

that the aggregate number of Warrant Units for which this Warrant and all warrants issued pursuant to this Warrant are exercisable should equal that number necessary to maintain that percentage of the Units on a fully-diluted basis that the Warrant Units under this Warrant and all warrants issued pursuant to this Warrant represented immediately prior to the Adjustment Event.  Adjustments shall be made successively whenever any event listed above shall occur.

 

(b)                                 Effective Time of Adjustment.  An adjustment made pursuant to Section 3(a) shall become effective at the close of business on the record date (in the case of a distribution) or on the effective date of another action referred to in Section 3(a); provided that, in the event that such distribution is not made, the number of Warrant Units or other property for which this Warrant may be exercised and the Exercise Price shall be readjusted, effective as of the date when the Board determines in Good Faith not to make such distribution, to reverse the effect of the applicable adjustment made pursuant to Section 3(a).

 

(c)                                  When De Minimis Adjustments May Be Deferred.  No adjustment in the number of Warrant Units as to which this Warrant may be exercised or the Exercise Price need be made until cumulative adjustments would require an increase or decrease of at least 0.5% in the number of Warrant Units as to which this Warrant may be exercised or the Exercise Price then in effect.  Any adjustments that are not made shall be carried forward and taken into account in any subsequent adjustment.

 

(d)                                 Rounding.  All calculations under this Section 3 shall be made to the nearest 1/10,000th of a cent or to the nearest 1/100th of a Unit, as the case may be.

 

(e)                                  No Impairment.  The Company shall not, by amendment of its certificate of incorporation, bylaws or other organizational documents, or through a reorganization, transfer of assets, consolidation, merger, dissolution, issue, or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed under this Warrant by the Company, but shall at all times in good faith assist in carrying out all of the provisions of this Section 3 and in taking all such action as may be necessary or appropriate to protect the Holder’s rights under this Section 3 against impairment.

 

 

4.                                       Change of Control. In the event of any Change of Control, the Holder shall be entitled and obligated to transfer this Warrant to the acquirer or surviving entity (which, for the sake of clarity, may be the Company or Vantiv) in such Change of Control (the “Acquirer”), and the Acquirer, as a condition to the consummation of such Change of Control transaction, shall be obligated to purchase this Warrant from the Holder, in each case, at an aggregate purchase price equal to the product of (a) the number of Units for which this Warrant is exercisable immediately before such Change of Control, multiplied by (b) the difference, if positive, between (i) the price paid per Unit to the holders of Units (or in the case of Change of Control of Vantiv, the price paid per share of Class A Common Stock) in such Change of Control (as determined based upon the Fair Market Value of the consideration paid, directly or indirectly), minus (ii) the Exercise Price; it being understood that the Holder shall receive the foregoing payment in the same form of consideration (and in the same proportion) as the consideration received by the holders of the Units (or in the case of a Change of Control of Vantiv, the shares of Class A Common Stock), in such Change of Control; it being further understood that if the holders of the Units (or in the case of a Change of Control of Vantiv, shares of Class A Common Stock) have the option to receive all or any of their portion of their consideration in cash or other property, the Holder shall have the same option.  Notwithstanding the foregoing, at the election of the Acquirer, the Acquirer may require that the Holder transfer this Warrant to Vantiv or a subsidiary of Vantiv in connection with the Change of Control for the same per Unit consideration received by the holders of the Units (or in the case of a Change of Control of Vantiv, for the same per share consideration received by the holders of the shares of Class A Common Stock) for each Warrant Unit then issuable under this Warrant pursuant to Section 1.  In the event that in any Change of Control the difference between the price paid per Unit or share of Class A Common Stock, as applicable, in such Change of Control minus the Exercise Price is less than or equal to zero, this Warrant shall automatically expire and terminate, and shall no longer be exercisable, immediately after the consummation of such Change of Control.  The Acquirer shall be entitled to assign its rights to purchase this Warrant so long as such assignment does not adversely affect the Holder; provided that Acquirer shall not be relieved of its obligations hereunder by virtue of such assignment; and provided further that if the stock of Acquirer represents a portion of the purchase price then the Holder shall still receive stock of the Acquirer as provided above despite such assignment.

 

5.                                       Notice of Adjustments and Certain Actions.  If (a) (i) the Company proposes to take any action that would require an adjustment pursuant to Section 3 to the Exercise Price and/or the number of Warrant Units as to which this Warrant may be exercised or (ii) an event has occurred that would require the Exercise Price and/or the number of Warrant Units as to which this Warrant may be exercised to be adjusted pursuant to Section 3, (b) there is a proposal for any liquidation or dissolution of Vantiv, the Company, Opco or a significant Subsidiary or (c) the Company or Vantiv proposes to enter into a Change of Control, then, in any such case, the Company shall (x) promptly deliver to the Holder a notice in accordance with Section 12 stating the proposed record date for, or the date of the occurrence of, such event and, in the case of clause (a), the proposed adjustment to the Exercise Price and/or the number of Warrant Units as to which this Warrant may be exercised, showing in reasonable detail the facts upon which such adjustment is based, and (y) file such notice at the principal office of the Company.  In addition, promptly upon request of the Holder following any adjustment pursuant to Section 3 to the number of Warrant Units as to which this Warrant may be exercised and/or the Exercise

 

 

Price, the Company shall deliver to the Holder a new warrant evidencing such adjustments in substitution and replacement for this Warrant and otherwise containing identical terms and conditions as those contained in this Warrant.  In connection with a Change of Control, the Company shall deliver a notice in accordance with Section 12 within the earlier of five (5) days following the execution of the agreement with respect to such Change of Control and ten (10) days before the proposed date upon which the contemplated Change of Control is to be effected, indicating in such notice the date of execution of such agreement or such proposed effective date, as applicable, the amount and types of consideration to be paid for Units or shares of Class A Common Stock, as applicable, in the Change of Control, any election with respect to types of consideration that a holder of Units or shares of Class A Common Stock, as applicable, shall be entitled to make in connection with the Change of Control and the percentage of total Units or shares of Class A Common Stock, as applicable, to be transferred to the Acquirer in the Change of Control.  In addition, promptly upon request of the Holder following any Transfer or termination of the Warrant in part but not in whole pursuant to Sections 4, 6(a) or 6(b), the Company shall deliver to the Holder a new warrant evidencing the remaining portion of the Warrant that was neither Transferred nor terminated, in substitution and replacement for this Warrant and otherwise containing identical terms and conditions as those contained in this Warrant, subject to any adjustment to the provisions of the Warrant made pursuant to Section 3.

 

6.                                       Transferability of Warrant.

 

(a)                                  Mechanics of Transfers. The Company shall maintain a registry showing the name and address of the Holder as the registered holder of this Warrant.  Subject to satisfaction of the conditions set forth in this Section 6, this Warrant and all rights hereunder are transferable, in whole or in part, on the books of the Company to be maintained for such purpose, upon (i) the surrender of this Warrant, properly endorsed, at the principal office of the Company and (ii) delivery to the Company of the Form of Assignment attached hereto (or a reasonable facsimile thereof) completed and duly executed by the Holder.  Upon such surrender and delivery, the Company shall promptly (i) make, execute and deliver a new warrant or warrants containing identical terms and conditions as contained in this Warrant other than the name(s) of any assignee(s) and the number of Warrant Units represented thereby in the name(s) of the assignee(s) and in the denominations specified in such instrument of assignment, and (ii) make, execute and deliver to the Holder a new warrant representing the number of Warrant Units that were not Transferred and otherwise containing identical terms and conditions as those contained in this Warrant.  Upon such deliveries by the Company, this Warrant shall be canceled.

 

(b)                                 Transfer Restrictions.  Before an IPO, the Holder may Transfer all or any part of this Warrant, in each case, upon five (5) days’ prior written notice to the Company, only to:

 

(i)                                     a transferee that concurrently acquires a pro rata portion of Class B Units (based on the Class B Units being Transferred by such Holder and its Permitted Affiliates (as defined below) to such transferee in relation to all Class B Units held by the Holder and its Affiliates as of the Closing Date) in accordance with the LLC Agreement; or

 

 

(ii)                                  any of the following Persons: (A) (I) any Person who is a direct or indirect wholly-owned subsidiary of the Holder, (II) any Person who owns, directly or indirectly, one hundred percent (100%) of the equity interests of the Holder prior to such Transfer or (III) any Person that is directly or indirectly wholly owned by a Person who owns, directly or indirectly, one hundred percent (100%) of the equity interests of the Holder prior to such Transfer (any such Person in clauses (I), (II) or (III), a “Permitted Affiliate”); provided that, if at any time such transferee ceases to be a Permitted Affiliate of the Holder, such transferee shall immediately (and, in any event, no later than three (3) Business Days thereafter) Transfer the portion of this Warrant that it holds (in whole but not in part) to a Person that is a Permitted Affiliate of the Holder or to the Holder itself; or (B) any Person, in the event that, as a result of any change in applicable law or the scope of business activities in which the Company and the Subsidiaries are engaged, ownership by the Holder of this Warrant is no longer legally permissible, as determined reasonably and in good faith by the Holder’s legal counsel (provided such legal counsel is of national reputation and specializes in the legal matters involved in such determination); provided that to the extent the Holder is given a time period during which to divest this Warrant pursuant to this clause (B), the Holder shall use its commercially reasonable efforts to transfer this Warrant to an acquirer, if any at such time, of Class B Units as provided under Section 6(b)(i);

 

except, in the case of each of clauses (i) and (ii), to the extent any such action would, or would be reasonably likely to, result in a violation of applicable law (as determined by the Company’s outside legal counsel, provided such legal counsel is of national reputation and specializes in the legal matters involved in such determination) or the imposition of material and adverse obligations, limitations or conditions on the Company and the Subsidiaries.

 

Following an IPO, the Holder may Transfer all or any part of this Warrant without restriction except as set forth in Sections 6(a), (c) and (d).

 

(c)                                  Tax Matters.  Notwithstanding any provision herein to the contrary, no direct or indirect Transfer of this Warrant shall be permitted during the Restricted Period (and for purposes of this Section 6(c) only, a Restricted Period does not terminate upon a Change of Control) if, after giving effect to such Transfer, the Company would have more than one hundred (100) partners (within the meaning of Treasury Regulation Section 1.7704-1(h), including without limitation, Section 1.7704-1(h)(3)), treating (solely for this purpose) each Holder of this Warrant or any new warrant(s) issued pursuant to this Warrant as a partner, and any such Transfer will be void ab initio, unless legal counsel to the Holder (provided such legal counsel is of national reputation and specializes in the legal matters involved in such determination) renders an opinion to the Company that such Transfer will not cause the Company to be treated as a publicly traded partnership within the meaning of Section 7704 of the Code.

 

(d)                                 Transfer Expenses.  If the Holder proposes to Transfer all or any part of this Warrant in accordance with the terms and conditions hereof, then the Holder shall be

 

 

responsible for all expenses incurred by such Holder in connection with such Transfer and the Company shall be responsible for all expenses incurred by the Company in connection with such Transfer.

 

(e)                                  Invalid Transfers.  Any purported Transfer of this Warrant other than in accordance with the terms of this Warrant shall be null and void ab initio, and the Company shall refuse to recognize any such Transfer for any purpose and shall not reflect in its records any change in record ownership pursuant to any such Transfer.

 

(f)                                    LLC Agreement.  Notwithstanding Section 8.4 of the LLC Agreement, in connection with a proposed Transfer of this Warrant, the Holder may, and the Company shall upon written request and upon receipt of a written confirmation by a proposed transferee to keep the same confidential, provide to such proposed transferee of this Warrant an electronic copy of the LLC Agreement.

 

7.                                       Registration Rights.  Upon issuance of any Warrant Units upon the exercise of this Warrant, a Holder (including any subsequent holders) of such Warrant Units shall have the right, upon execution of a joinder to the Registration Rights Agreement, to include all or any portion of the shares of Class A Common Stock for which such Warrant Units are exchangeable in any Registration Statement (as such term is defined in the Registration Rights Agreement) pursuant to the terms, and subject to the conditions, of the Registration Rights Agreement.

 

8.                                       No Member Rights.  This Warrant shall not entitle the Holder to any voting rights or other rights as a Member of the Company prior to the exercise of this Warrant.

 

9.                                       Securities Act.

 

(a)                                  The Holder of this Warrant, by acceptance hereof, acknowledges that neither this Warrant nor the Warrant Units issuable upon exercise of this Warrant have been registered under the Securities Act or any applicable state securities laws.  The Holder, by acceptance of this Warrant, represents that it is fully informed as to the applicable limitations upon any distribution or resale of any portion of this Warrant and the Warrant Units under the Securities Act and any applicable state securities laws and agrees not to distribute or resell any portion of this Warrant or any Warrant Units if such distribution or resale would constitute a violation of the Securities Act or any applicable state securities laws or would cause the issuance of this Warrant or the Warrant Units to be in violation of the Securities Act or any applicable state securities laws. Any exercise of this Warrant by the Holder shall constitute a representation by the Holder that the Warrant Units are not being acquired with a view to, or for resale in connection with, any distribution or public offering of such Warrant Units in violation of the Securities Act or any applicable state securities laws.

 

(b)                                 At all times after the Company has filed a registration statement with the SEC under the Securities Act, the Company covenants that it will use its reasonable best efforts to timely file all reports and other documents required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations promulgated by the SEC thereunder to enable such Holder to, if permitted by the terms of this Warrant, sell

 

 

this Warrant without registration under the Securities Act within the limitation of the exemptions provided by (i) Rule 144 or Regulation S under the Securities Act, as such rules may be amended from time to time, or (ii) any successor rule or regulation hereafter adopted by the SEC. Upon the written request of the Holder or any holder of a warrant issued pursuant to this Warrant, the Company will deliver to such holder a written statement that it has complied with such requirements.

 

(c)                                  Subject to the provision of documentation as the Company may reasonably request, the Company will replace any legended certificates representing Warrant Units with unlegended certificates promptly upon the request by any Holder of Warrant Units at any time after such Warrant Units are registered under the Securities Act or no longer require an exemption from registration under the Securities Act.

 

10.                                 Definitions.  The following terms shall have the meanings given to them below.

 

“Acquirer” has the meaning set forth in Section 4.

 

“Adjustment Event” has the meaning set forth in Section 3(a).

 

“Advent Blocker” means Advent-Kong Blocker Corp., a corporation organized under the laws of the State of Delaware and currently known as Vantiv.

 

“Advent Stockholders” means any investment fund affiliates of Advent International Corporation (or any successor) that hold shares of Class A Common Stock.

 

“Affiliate” means, with respect to any Person, any other Person, directly or indirectly, through one or more intermediaries, controlling, controlled by, or under common control with, such Person; it being understood that “control” or any version thereof in this definition shall have the meaning ascribed thereto in Rule 12b-2 under the Exchange Act.

 

“Board” means the Board of Directors of Vantiv.

 

“Business Day” means any day of the year other than a Saturday, a Sunday or any other day on which national or state banking institutions in Ohio are required or authorized by law to close.

 

“Change of Control” means: any (i) merger, consolidation or other business combination of the Company or Vantiv (or any Subsidiary or Subsidiaries that alone or together represent all or substantially all of the Company’s or Vantiv’s consolidated business at that time) or any successor or other entity owning or holding substantially all the assets of the Company or Vantiv and their respective Subsidiaries that results in the Members (in the case of the Company) or the Members and the holders of Class A Common Stock (in the case of Vantiv) immediately before the consummation of such transaction, or a series of related transactions, holding, directly or indirectly, less than fifty percent (50%) of the voting power of the Company or Vantiv (or such Subsidiary or Subsidiaries) or any successor or other entity owning or holding substantially all the assets of the Company or Vantiv and their respective Subsidiaries or the surviving entity thereof, as applicable, immediately following the consummation of such transaction or series of related transactions; it being understood that such ownership shall be evaluated on a combined

 

 

basis (i.e, on an as converted basis and without regard to any voting power or ownership limitation on FTB and its Affiliates) so that any ownership interest in Vantiv shall be aggregated with any ownership interest in the Company or any other Subsidiary of Vantiv or any such successor; and it being further understood that no Change of Control shall be deemed to occur to the extent the acquirer thereof is any of the Advent Stockholders or their Affiliates or FTB or any of its Affiliates or any Person with whom any of the foregoing has formed a joint venture or has otherwise formed a Group with respect to such Change of Control; (ii) transfer, in one or a series of related transactions, of, (x) with respect to the Company or any successor or other entity owning or holding substantially all the assets of the Company and its Subsidiaries, Units (or other equity interests) representing fifty percent (50%) or more of the voting power of the Company (or such Subsidiary or Subsidiaries) or such successor or other entity, to a Person or Group (other than Vantiv and any of its Subsidiaries, the Advent Stockholders or any of their Affiliates or FTB or any of its Affiliates or any Person with whom any of the foregoing has formed a joint venture or has otherwise formed a Group with respect to such Change of Control), and (y) with respect to Vantiv or any successor or other entity owning or holding substantially all the assets of Vantiv and its Subsidiaries, shares of Class A Common Stock (or other equity interests) that results in any Person or Group (other than any of Vantiv’s Subsidiaries, the Advent Stockholders or their Affiliates or FTB or its Affiliates or any Person with whom any of the foregoing has formed a joint venture or has otherwise formed a Group with respect to such Change of Control) owning or holding, directly or indirectly, (A) shares of Class A Common Stock entitled to elect a majority of the Board or the board of directors of any such successor or other entity or (B) fifty percent (50%) or more of the shares of Class A Common Stock (or equity interests) of Vantiv (or such Subsidiary or Subsidiaries) or any such successor or other entity; it being understood that such ownership shall be evaluated on a combined basis (i.e., , on an as converted basis) so that any ownership interest in Vantiv shall be aggregated with any ownership interest in the Company or any other Subsidiary of Vantiv or any such successor; or (iii) sale or other disposition in one or a series of related transactions of all or substantially all of the assets of the Company or Vantiv and their respective Subsidiaries; it being understood that no Change of Control shall be deemed to occur to the extent the acquirer of such assets is any of the Advent Stockholders or their Affiliates or FTB or any of its Affiliates or any Person with whom any of the foregoing has formed a joint venture or has otherwise formed a Group with respect to such Change of Control.  Notwithstanding anything to the contrary contained herein, for purpose of determining whether a Change of Control has occurred, it shall be assumed that all Class B Units have been exchanged for shares of Class A Common Stock (or equity interests of any successor or other entity owning or holding substantially all the assets of Vantiv and its Subsidiaries) immediately prior to any such merger, consolidation, other business combination or transfer and there is no limitation on the voting power or ownership limitation on FTB and its Affiliates. For the avoidance of doubt, an IPO shall not be deemed to be a Change of Control.

 

“Chosen Courts” has the meaning set forth in Section 13.

 

“Class A Common Stock” means the Class A common stock of Vantiv.

 

“Class A Units” means the Class A Units of the Company or any successor thereto.

 

“Class B Units” means the Class B Units of the Company or any successor thereto.

 

 

“Class C Non-Voting Units” means the Class C Non-Voting Units of the Company or any successor thereto.

 

“Closing Date” means June 30, 2009.

 

“Code” means the Internal Revenue Code of 1986, as amended, or any successor statute.

 

“Commission” means the Securities and Exchange Commission and any successor thereto.

 

“Company” has the meaning set forth in the Preamble and includes any successor thereof.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, as amended, or any successor federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect from time to time.

 

“Exercise Price” has the meaning set forth in Section 1.

 

“Expiration Time” means the earlier of (a) immediately after the consummation of a Change of Control in the event the price paid per Unit in such Change of Control minus the Exercise Price is less than or equal to zero, (b) 5:00 p.m., Cincinnati, Ohio time, on the twentieth (20th) anniversary of the Issue Date and (c) 5:00 p.m., Cincinnati, Ohio time, on the sixtieth (60th) day (subject to extension for an additional sixty (60) days in the event of an extended regulatory review) following the date on which the Put Rights (as defined in the First LLC Agreement) are exercised if (i) the closing of the transactions contemplated by Section 6.3(f) of the First LLC Agreement are not consummated or (ii) the payment contemplated by Section 6.3(f) is not made, in either case, within sixty (60) days (subject to extension for an additional sixty (60) days in the event of an extended regulatory review) following the date on which the Put Rights are exercised; provided that, if the right to exercise the Put Right is disputed in good faith pursuant to Section 6.3(f) of the First LLC Agreement, then in such case the Expiration Time shall occur only when and if the dispute is settled in a manner such that the holders of voting capital stock of Advent Blocker did have the right to exercise the Put Rights.

 

“Fair Market Value” means, with respect to any asset or security, the fair market value of such asset or security, as between a willing buyer and a willing seller not under a compulsion to buy or sell in an arms’-length transaction occurring on the date of the valuation, taking into account the relevant factors, as reasonably determined in Good Faith by the Board at the time of issuance or the entry into the transaction; it being understood that, (i) with respect to a security that is listed on a national securities exchange or quoted on NASDAQ, Fair Market Value shall mean the average of the closing prices of such security over the thirty (30) day period ending one (1) Business Day prior to the date of measurement, and (ii) with respect to a security that is traded over-the-counter, Fair Market Value shall mean the average of the closing bid prices over the thirty (30) day period ending one (1) Business Day prior to the date of measurement.

 

“First LLC Agreement” means the Amended and Restated Limited Liability

 

 

Company Agreement of the Company, dated as of June 30, 2009.

 

“FTB” means Fifth Third Bank, a bank chartered under the laws of the State of Ohio.

 

“Good Faith” means a Person having acted honestly and fairly and in a manner such Person reasonably believed to be in or not opposed to the best interests of the Company (as opposed to the interests of a particular Member), and, with respect to a criminal proceeding, having had no reasonable cause to believe such Person’s conduct was unlawful.

 

“Group” means “group” (within the meaning of Section 13(d)(3) of the Exchange Act).

 

“Holder” has the meaning set forth in the Preamble.

 

“IPO” means the first registered, public offering of shares of Class A Common Stock of Vantiv for cash pursuant to an effective registration statement under the Securities Act, registered on Form S-1 (or any successor form) in which such shares of Class A Common Stock of Vantiv are sold to one or more underwriters on a firm-commitment basis for reoffering to the public.

 

“Issue Date” means the date set forth in the Preamble.

 

“LLC Agreement” means the Amended and Restated Limited Liability Company Agreement of the Company, dated as of the date hereof, as amended from time to time in accordance with its terms.

 

“Member” means Advent Blocker, FTB, FTPS Partners, LLC and the Persons listed on Schedule I of the LLC Agreement, and each other Person who is hereafter admitted as a Member in accordance with the terms of the LLC Agreement, but only to the extent such Person has not ceased to be a Member pursuant to Section 6.1 of the LLC Agreement.

 

“Opco” means Fifth Third Processing Solutions, LLC, a Delaware limited liability company and the Company’s wholly-owned Subsidiary, and any successor thereto.

 

“Original Holder” means any of Advent Blocker, FTB and FTPS Partners, LLC.

 

“Permitted Affiliate” has the meaning set forth in Section 6(b)(ii).

 

“Person” means an individual, a corporation, a partnership, an association, a limited liability company, a joint venture, a Government Entity, a trust or other entity or organization.

 

“Pro Rata Repurchases” means any purchase of Units by the Company or any Affiliate thereof pursuant to (A) any tender offer or exchange offer subject to Section 13(e) or 14(e) of the Exchange Act or Regulation 14E promulgated thereunder or (B) any other offer available to substantially all holders of Units, in the case of both (A) or (B), whether for cash, Units or other securities of the Company, evidences of indebtedness of the Company or any other

 

 

Person or any other property, or any combination thereof, effected while this Warrant is outstanding. The “effective date” of a Pro Rata Repurchase shall mean the date of acceptance of shares for purchase or exchange by the Company under any tender or exchange offer that is a Pro Rata Repurchase or the date of purchase with respect to any Pro Rata Purchase that is not a tender or exchange offer.

 

“Registration Rights Agreement” means the Registration Rights Agreement by and among Vantiv and the stockholders listed on the signature pages thereto, dated as of the date hereof, as amended from time to time in accordance with its terms.

 

“Restricted Period” means any period with respect to which the Company (or any successor thereto) is treated as a partnership for U.S. federal income tax purposes; provided that the Restricted Period shall terminate upon the earlier of (i) a Change of Control, and (ii) in the event Vantiv is no longer a public company owning the Company, the first registered, public offering of Units of the Company for cash pursuant to an effective registration statement under the Securities Act, registered on Form S-1 (or any successor form) in which such Units are sold to one or more underwriters on a firm-commitment basis for reoffering to the public or conversion of the Company or like transaction (or any Subsidiary or Subsidiaries that alone or together represent all or substantially all of the Company’s consolidated business at that time) in anticipation of such an initial public offering (for the avoidance of doubt, the initial public offering of shares of Class A Common Stock shall not be deemed to constitute the initial public offering described in clause (ii)).

 

“Securities Act” means the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect from time to time.

 

“Subsidiary” means any Person of which (i) a majority of the outstanding share capital, voting securities or other equity interests are owned, directly or indirectly, by the Company and/or any other Subsidiary or (ii) the Company and/or any other Subsidiary is entitled, directly or indirectly, to appoint a majority of the board of directors or comparable body of such Person.

 

“Transfer” means, with respect to this Warrant or any Units, (a) when used as a verb, to sell, assign, dispose of, exchange, pledge, encumber, hypothecate or otherwise transfer such Warrant or Units or any participation or interest therein, whether directly or indirectly, or to agree or commit to do any of the foregoing, and (b) when used as a noun, a direct or indirect sale, assignment, disposition, exchange, pledge, encumbrance, hypothecation or other transfer of such Warrant or Units or any participation or interest therein, or any agreement or commitment to do any of the foregoing, including in each case through the Transfer of any Person directly holding such Warrant or Units or any direct interest in such Person; it being understood that a Transfer of a controlling interest in any Person holding such Warrant or Units shall be deemed to be a Transfer of such Warrant and all of the Units held by such Person.  Notwithstanding anything to the contrary in this Warrant, no Transfer of an interest in any Person which is a public company or which is a limited partner in any investment entity that holds a direct or indirect interest in an Original Holder shall be deemed to constitute a Transfer of this Warrant or any Units held by such Original Holder unless such Original Holder and such Person are acting

 

 

in concert with respect to such Transfer or such Original Holder, alone or together with its Affiliates or other Persons with whom it is acting in concert, controls such Person.

 

“Underlying Unit” means, as applicable, (a) prior to, and except in connection with, following such time as Vantiv is no longer a public company owning the Company the first registered, public offering of Units of the Company for cash pursuant to an effective registration statement under the Securities Act, registered on Form S-1 (or any successor form) in which such Units are sold to one or more underwriters on a firm-commitment basis for reoffering to the public and in which the Class B Units (or their equivalent) are offered or the Class B Units are exchangeable for such Units being offered, a Class C Non-Voting Unit, or (b) upon and after the consummation of such an initial public offering in which the Class B Units (or their equivalent) are offered or the Class B Units are exchangeable for such Units being offered, (i) a Class C Non-Voting Unit or (ii) the common stock or other equity securities for which a Class C Non-Voting Unit has been converted or exchanged of a successor corporation or entity into which the Company is merged.

 

“Unit” means, a Class A Unit, a Class B Unit, a Class C Non-Voting Unit or any other Underlying Unit, as applicable, and “Units” means the Class A Units, the Class B Units, the Class C Non-Voting Units or any other Underlying Units, collectively or separately.

 

“Vantiv” has the meaning set forth in Section 1 and includes any successor thereof.

 

“Warrant” has the meaning set forth in the Preamble.

 

“Warrant Exercise Period” has the meaning set forth in Section 1.

 

“Warrant Unit” has the meaning set forth in the Preamble.

 

11.                               Amendment and Waiver.  This Warrant and any provision hereof may be amended only by an instrument in writing signed by the Holder and the Company; provided that if the Company has consented to an amendment of any warrant issued pursuant to this Warrant that is more favorable to the Holder thereof, the Company promptly shall so inform the Holder and such amendment shall apply to this Warrant without further action by the Holder.  This Warrant and any provision hereof may only be waived by a writing signed by the party against whom the waiver is to be effective; provided that if the Company has waived any provision of any warrant issued pursuant to this Warrant, the Company promptly shall so inform the Holders and upon request of any Holder shall execute an instrument in writing consenting to a like waiver of such provision with respect to such Holder.  Notwithstanding anything to the contrary in this Warrant, in the event that all or any part of this Warrant is Transferred to more than one Holder of record in accordance with Section 6, the consent of FTB (for so long as FTB is a Holder) and the Holders of record of a majority of Units then underlying all outstanding warrants derived from this Warrant shall be required to amend any provisions of such warrants, and any such amendment or waiver shall be binding on, and enforceable against, all such Holders.  The failure of any party to enforce any of the provisions of this Warrant shall in no way be construed as a waiver of such provisions and shall not affect the right of such party thereafter to enforce each and every provision of this Warrant in accordance with its terms.

 

 

12.                               Notices.  Any notice, request or other  document required or permitted to be given or delivered to the Holder or the Company shall be given at the address or email address set forth on the signature pages to this Warrant.  Each proper notice shall be effective upon any of the following: (a) personal delivery to the recipient, (b) when telecopied or emailed to the recipient if the telecopy is promptly confirmed by automated or telephone confirmation thereof or if the email is promptly confirmed by email or telephone confirmation thereof, or (c) one (1) Business Day after being sent to the recipient by reputable overnight courier service (charges prepaid).

 

13.                               Descriptive Headings; Governing Law; Selection of Forum; Waiver of Trial by Jury.  The descriptive headings of the several paragraphs of this Warrant are inserted for convenience only and do not constitute a part of this Warrant.  This Warrant shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of New York, without reference to the conflicts of laws thereof to the extent such reference would direct a matter to another jurisdiction. Each of the Holder and the Company agrees that it shall bring any action, suit, demand or proceeding (including counterclaims) in respect of any claim arising out of or related to this Warrant, exclusively in the United States District Court for the Southern District of New York or any New York State court, in each case, sitting in New York County (the “Chosen Courts”), and solely in connection with claims arising under this Warrant (i) irrevocably submits to the exclusive jurisdiction of the Chosen Courts, (ii) waives any objection to laying venue in any such action, suit, demand or proceeding in the Chosen Courts, (iii) waives any objection that the Chosen Courts are an inconvenient forum or do not have jurisdiction over such party and (iv) agrees that service of process upon such party in any such action, suit, demand or proceeding shall be effective if notice is given in accordance with Section 12.  Each of the Holder and the Company irrevocably waives any and all right to trial by jury in any action, suit, demand or proceeding (including counterclaims) arising out of or related to this Warrant.

 

14.                               Lost Warrant.  Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction, or mutilation of this Warrant (which evidence may include an affidavit of loss), and (a) in the case of any such loss, theft or destruction, the posting of a bond in an amount reasonably satisfactory to the Company or execution and delivery of an indemnity agreement in a form reasonably satisfactory to the Company and, (b) in the case of any such mutilation, upon surrender and cancellation of such Warrant, the Company will make, execute and deliver a new Warrant in lieu of the lost, stolen, destroyed or mutilated Warrant.

 

15.                               HSR Filings.  In the event that as a condition to or in connection with the exercise of this Warrant, the Company is required to make any filing pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as in effect from time to time, and the regulations promulgated thereunder, or any similar law, rule or regulation, the Holder shall reimburse the Company for all filing fees and actual and reasonable attorneys fees and other out of pocket expenses incurred in connection with such filing, and the Company’s obligations hereunder with respect to issuing Warrant Units shall not be effective until any applicable waiting period has expired or consent has been obtained.

 

[The remainder of this page is left blank intentionally.]

 

 

IN WITNESS WHEREOF, the Company has executed this Warrant as of the Issue Date.

 

	
 
    	
VANTIV   HOLDING, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By.
    	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Address for notice purposes:
    
	
 
    	
 
    
	
 
    	
c/oVantiv, Inc.
    
	
 
    	
8500 Governor’s Hill Drive
    
	
 
    	
Symmes Township, OH 45249
    
	
 
    	
Attention:General Counsel
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
With a copy to:
    
	
 
    	
 
    
	
 
    	
Advent International Corporation
    
	
 
    	
75 State Street
    
	
 
    	
Boston, MA 02109
    
	
 
    	
email: jwestra@adventinternational.com
    

 

Acknowledged and agreed as of the Issue Date:

 

HOLDER:

 

	
FIFTH   THIRD BANK
    	
 
    
	
 
    	
 
    
	
By.
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    
	
Title:
    	
 
    
	
 
    	
 
    
	
By.
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    
	
Title:
    	
 
    
	
 
    	
 
    
	
Address for notice purposes:
    	
 
    
	
 
    	
 
    
	
38 Fountain Square Plaza
    	
 
    
	
Cincinnati, OH 45263
    	
 
    
	
email: paul.reynolds@53.com
    	
 
    

 

 

Form of Subscription

 

To the Company:

 

The undersigned holder of the attached Warrant (the “Holder”) hereby (check all that apply):

 

o                                    irrevocably elects to purchase for cash                                Warrant Units for an aggregate Exercise Price of $                               , the payment of which amount the Holder is concurrently making to the Company (check all that apply) in cash , byo wire transfer , by certified checko or by any combination of theo foregoing ; and/oro

 

o                                    irrevocably surrenders the right to purchase                               Warrant Units, and a proportionate part of the Warrant and the rights evidenced thereby, in exchange for that number of Warrant Units computed in accordance with the provisions of Section 2(b) of the Warrant; and

 

requests that such Warrant Units be held (and the related capital contribution be made) in the name of                                whose address is                               .

 

The Holder hereby represents (i) that it has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of its investment in the Warrant Units; (ii) that it can bear the economic risk of its investment in the Warrant Units and can afford to lose its entire investment in the Warrant Units; (iii)  that it has been furnished the materials relating to its investment in the Warrant Units which it has reasonably requested in connection with its investment; and (iv) that it is acquiring the Warrant Units for investment and not with a view toward, or for sale in connection with, any distribution thereof in violation of the Securities Act of 1933, as amended (the “Securities Act”) or any applicable state securities laws. The Holder agrees that the Warrant Units may not be sold, transferred, offered for sale, pledged, hypothecated or otherwise disposed of without registration under the Securities Act, except pursuant to an exemption from the Securities Act and any applicable state securities laws.

 

The Holder (to the extent not already a party thereto) hereby joins each of the following agreements as if an original party thereto: (i) the Lock-Up Agreement by and among J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Credit Suisse Securities (USA) LLC, as representatives of the several underwriters listed in Schedule 1 to the Underwriting Agreement referenced therein, and the stockholders of Vantiv named therein, dated as of [date], in the capacity of a “stockholder” thereunder, (ii) the Registration Rights Agreement in the capacity of a “Fifth Third Holder” thereunder and (iii) the Exchange Agreement by and among Vantiv, the Company, FTB, FTPS Partners, LLC and such other holders of Class B Units or Class  C Non-Voting Units of the Company from time to time party thereto, as amended from time to time in accordance with its terms, in the capacity of a “Holding Unitholder” thereunder.

 

If the number of Warrant Units purchased is less than all of the Warrant Units evidenced by the Warrant, then the Holder requests that a new warrant representing the remaining Warrant Units subject to the Warrant be issued and delivered to the Holder.

 

 

All capitalized terms used but not defined herein shall have the meanings ascribed to those terms in the Warrant.

 

	
Dated:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
(Signature)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
(Address)
    	
 
    

 

 

Form of Assignment

 

FOR VALUE RECEIVED, the undersigned holder of the attached Warrant (the “Holder”) hereby sells, assigns and transfers all of the rights of the Holder under that portion of the attached Warrant specified below unto the assignee(s) specified below:

 

	
Name of Assignee
    	
 
    	
Address
    	
 
    	
No. of Warrant Units Underlying 
   the Warrant Subject to Transfer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

	
Dated:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
(Signature)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
(Address)Exhibit 10.15

 

 

VANTIV HOLDING, LLC
 (F/K/A FTPS HOLDING, LLC)

 

 

MANAGEMENT PHANTOM EQUITY PLAN, AS AMENDED

 

 

EFFECTIVE AS OF AUGUST 1, 2011

 

 

VANTIV HOLDING, LLC
 (F/K/A FTPS HOLDING, LLC)
 MANAGEMENT PHANTOM EQUITY PLAN, AS AMENDED

 

SECTION 1.  PURPOSE.

 

The purpose of the Plan is to attract and retain the best available personnel, to provide additional incentive to persons who provide services to the Company or any Parent or Subsidiary, and to promote the success of the Company’s business.  Consistent with these objectives, the Plan authorizes the granting of Phantom Units pursuant to the terms and conditions set forth herein.  Unless the context otherwise requires, capitalized terms used herein are defined in Section 8.

 

SECTION 2.  ADMINISTRATION.

 

a.               Committees.  The Plan shall be administered by the Board or, at its election, by one or more Committees consisting of one or more members of the Board who have been appointed by the Board in accordance with the LLC Agreement.  Each Committee shall have such authority and be responsible for such functions as may be delegated to it by the Board, and any reference to the Board in the Plan shall be construed as a reference to the Committee (if any) to whom the Board has delegated the relevant function.  If no Committee has been appointed, the entire Board shall administer the Plan.

 

b.               Authority of the Board.  The Board shall have full authority and discretion to take any actions it deems necessary or advisable for the administration and operation of the Plan, including a review of any decision, interpretation or other action by a Committee.  All decisions, interpretations and other actions of the Board or, in the absence of any action by the Board, any Committee shall be final and binding on all Participants and other persons deriving their rights from a Participant.  Without limiting the generality of the foregoing, the Board may, in its sole discretion, clarify, construe or resolve any ambiguity in any provision of the Plan or any Phantom Unit Agreement, accelerate vesting of Phantom Units, or modify or waive any terms or conditions applicable to any Phantom Units; provided, however, that no action taken by the Board shall adversely affect in any material respect the rights granted to any Participant under any outstanding Phantom Unit without the Participant’s written consent, unless such action is taken pursuant to Section 6(c).

 

c.               Fair Market Value Determinations of the Board.  The Board shall determine the Fair Market Value of a Class A Unit at least annually and at such shorter intervals as appropriate, as determined by the Board in its sole discretion.

 

SECTION 3.  UNITS SUBJECT TO PLAN.

 

a.               Basic Limitation.  The aggregate number of Phantom Units that may be issued under the Plan shall not exceed 8,695,652. The number of Phantom Units is subject to adjustment pursuant to Section 6. The number of Phantom Units outstanding at any time under the Plan shall not exceed the number of Phantom Units that then remain available for issuance under the Plan.

 

 

b.               Additional Units. In the event that any outstanding Phantom Unit expires, is cancelled or otherwise terminated without payment therefor, such Phantom Units shall again be available for the purposes of the Plan.

 

SECTION 4.  GENERAL TERMS.

 

a.               Eligibility.  The Board is authorized to grant Phantom Units to Employees, Directors and Consultants.

 

b.               Nontransferability.  Any Phantom Units issued under the Plan shall be subject to such vesting and special forfeiture conditions and other transfer restrictions as the Board may determine.  Such restrictions shall be set forth in the applicable Phantom Unit Agreement, and shall apply in addition to any restrictions that may apply to holders of Phantom Units generally. Except as may otherwise be provided in the relevant Phantom Unit Agreement, no Phantom Unit may be transferred, assigned, pledged or hypothecated by any Participant during the Participant’s lifetime, whether by operation of law or otherwise, or be made subject to execution, attachment or similar process, except by beneficiary designation, will or the laws of descent and distribution.

 

c.               Withholding Requirements.  All payments required to be paid hereunder shall be subject to, and a Participant shall make such arrangements as the Board may require for the satisfaction of any federal, state, local or foreign withholding tax obligations or other deductions that may arise in connection with any Phantom Units granted under the Plan.

 

d.               No Retention Rights.  Nothing in the Plan or in any Phantom Unit Agreement granted under the Plan shall confer upon a Participant any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining the Participant) or of the Participant, which rights are hereby expressly reserved by each, to terminate his or her Service at any time and for any reason, with or without Cause, subject to the terms of any applicable employment agreement between a Participant and either the Company or any Parent or Subsidiary.  Nothing herein shall be interpreted or construed as treating a Participant as a member or partner of the Company.

 

e.               Unfunded Plan.  The Plan is intended to be an unfunded and unsecured obligation of the Company.  All payments under the Plan shall be made from the general assets of the Company and to the extent that any person acquires the right to receive payment from the Company under the Plan, such right, except to the extent required by law, shall be no greater than the rights of any unsecured general creditor of the Company.

 

f.                 No Effect on Benefits.  Phantom Units and payments under the Plan shall constitute special discretionary incentive payments to the Participants and shall not be required to be taken into account in computing the amount of salary or compensation of the Participants for the purpose of determining any contributions to or any benefits under any pension, retirement, profit-sharing, bonus, life insurance, severance or other benefit plan of the Company or any Parent or Subsidiary or under any agreement with a Participant, unless the Company or any Parent or Subsidiary or such other arrangement specifically provides otherwise.

 

g.              Severability.  The provisions of the Plan shall be deemed severable and the invalidity or unenforceability of any provisions of the Plan shall not affect the validity or enforceability of the

 

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other provisions hereof.  If any provision of the Plan, or the application thereof to any Person or any circumstance, is invalid or unenforceable, (i) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (ii) the remainder of the Plan and the application of such provision to other Persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.

 

SECTION 5.  PHANTOM UNITS.

 

a.               Phantom Unit Agreement.  Each grant of a Phantom Unit under the Plan shall be evidenced by a Phantom Unit Agreement between the Participant and the Company.  Except to the extent otherwise expressly provided for in the Phantom Unit Agreement, such Phantom Units shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which the Board deems appropriate for inclusion in a Phantom Unit Agreement, and the effectiveness of any grant may be conditioned upon the Participant being subject to such restrictive covenants as determined by the Board in its sole discretion.  The provisions of the various Phantom Unit Agreements entered into under the Plan need not be identical (whether or not the Participants are similarly situated).  No person shall have any claim or right to receive a grant of Phantom Units under the Plan.  The grant of Phantom Units to a Participant at any time shall neither require the Board to grant Phantom Units to such Participant or any other Participant or other person at any time nor preclude the Board from making subsequent grants of Phantom Units to such Participant or any other Participant or other person.

 

b.               Number of Units.  Each Phantom Unit Agreement shall specify the number of Phantom Units granted thereunder and shall provide for the adjustment of such number in accordance with Section 6, if applicable.

 

c.               Vesting.  Each Phantom Unit Agreement shall specify the date and events on which all or any installment of the Phantom Unit shall be vested and nonforfeitable (except as otherwise provided in the Plan).  The vesting and nonforfeitability provisions applicable to any Phantom Unit shall be determined by the Board in its sole discretion.

 

d.               Basic Term.  The Phantom Unit Agreement shall specify the term of the Phantom Units granted thereunder.  The Board at its sole discretion shall determine when such Phantom Units are to expire.

 

e.               Base Price.  All Phantom Units shall have a Base Price.

 

f.                 Payments and Issuances.  Payments of all vested Phantom Units (or issuances of shares of stock or other equity securities of the Company or any successor in lieu thereof) shall be made in accordance with the terms, and subject to the conditions, contained in the corresponding Phantom Unit Agreement.

 

SECTION 6.  ADJUSTMENT OF PHANTOM UNITS.

 

a.               General.  In the event that the Board determines in its sole discretion that any extraordinary distribution (whether in the form of cash, securities or other property), sale, recapitalization, 

 

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reorganization, merger, consolidation, issuance or exchange of Class A Units, other ownership interests or other securities of the Company, or any other transaction or event affects the Phantom Units such that an adjustment is determined, by the affirmative vote of not less than 75% of the Board, to be appropriate in order to prevent inappropriate dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Board may in its sole discretion, in such manner as it deems equitable in order to maintain any Participant’s proportionate economic interest, adjust any or all of the number of the Phantom Units, other ownership interests or other securities of the Company (or number and kind of other securities or property) with respect to which awards may be made under the Plan; provided  that the Board shall make an equitable adjustment to outstanding Phantom Units in order to maintain each Participant’s proportionate economic interests with respect to any subdivision or consolidation of the Class A Units.

 

b.               Initial Public Offering.  In the event of an IPO Conversion, the outstanding Phantom Units shall be converted into such common stock or other equity securities according to the terms, and subject to the conditions, contained in the corresponding Phantom Unit Agreement.

 

c.               Reservation of Rights. Except as provided in this Section 6 or a Phantom Unit Agreement, neither a Participant nor a Participant’s representative shall have any rights by reason of (i) any subdivision or consolidation of Units of any class (except as provided in the proviso in Section 6(a)), (ii) the payment of any distribution (except as provided in Section 6(a)) or (iii) any other increase or decrease in the number of Units of any class.  Any issuance by the Company of Units of any class, or securities convertible into Units of any class, shall not otherwise affect, and no other adjustment by reason thereof shall be made with respect to, the number or Base Price of Phantom Units.  The grant of a Phantom Units pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets.

 

d.               Section 409A Compliance.  To the extent that the Plan and/or the Phantom Units granted under the Phantom Unit Agreement are subject to Section 409A of the Code, the Board may, in its sole discretion and without a Participant’s prior consent, amend the Plan and/or awards, adopt policies and procedures, or take any other actions (including amendments, policies, procedures and actions with retroactive effect) as are necessary or appropriate to (a) exempt the Plan and/or any Phantom Units from the application of Section 409A of the Code, (b) preserve the intended tax treatment of any such Phantom Units, or (c) comply with the requirements of Section 409A of the Code, Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the date of the grant (“Section 409A Guidance”).  The Plan shall be interpreted at all times in such a manner that the terms and provisions of the Plan and/or the Phantom Unit Agreement are exempt from or comply with Section 409A Guidance.  The Company shall have no liability to any Participant or otherwise if the Plan or any grant, vesting or payment of any Phantom Unit hereunder are subject to the additional tax and penalties under Section 409A of the Code.

 

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SECTION 7.  DURATION AND AMENDMENTS.

 

a.               Term of the Plan.  The Plan, as set forth herein, shall become effective on the date of its adoption by the Board.  The Plan shall terminate automatically on the day preceding the tenth anniversary of its adoption by the Board unless earlier terminated pursuant to Section 7(b).

 

b.               Right to Amend or Terminate the Plan.  The Board may amend, suspend or terminate the Plan in whole or in part at any time and for any reason, subject to Section 2(b); provided, however, that any amendment of the Plan (except as provided in Section 6) which increases the maximum number of Phantom Units available for issuance under the Plan in the aggregate shall be subject to the approval of the Company’s members in accordance with the LLC Agreement.  Member approval shall not be required for any other amendment of the Plan.  No Phantom Units shall be issued under the Plan after the termination thereof.  The termination of the Plan shall not affect any Phantom Units outstanding on the termination date.

 

SECTION 8.                            DEFINITIONS.

 

a.               “Base Price” shall mean the Fair Market Value of a Class A Unit on the date of grant.

 

b.               “Board” shall mean the Board of Directors of the Company, as constituted from time to time.

 

c.               “Cause” shall have the meaning set forth in the Participant’s then-effective employment agreement with the Company or any Parent or Subsidiary, or, if there is no then-effective agreement, then “Cause” shall mean: (i) the Participant’s failure to follow the reasonable instructions of the Board or the Participant’s direct supervisor (other than as a result of total or partial incapacity due to physical or mental illness), which breach, if curable, is not cured within 10 business days after notice to the Participant, or, if cured, recurs within 180 business days, (ii) the Participant’s gross negligence, willful misconduct, fraud, insubordination, acts of dishonesty or conflict of interest relating to the Company or any Parent or Subsidiary or (iii) the Participant’s commission of any misdemeanor relating to the affairs of the Company or any Parent or Subsidiary or the Participant’s indictment for, or plea of nolo contendere to, a crime constituting a felony under the laws of the United States or any state thereof.

 

d.               “Class A Units” shall mean the Class A Units (as defined in the LLC Agreement) of the Company or any successor security.

 

e.               “Code” shall mean the Internal Revenue Code of 1986, as amended, or any successor statute thereto.

 

f.                 “Committee” shall mean a committee of the Board, as described in Section 2(a).

 

g.              “Common Stock” shall mean (i) the common stock or other equity securities for which the Class A Units have been converted or exchanged of a successor corporation or other entity into which the Company is converted or merged, (ii) the common stock or other equity securities of a corporation or other entity otherwise formed by the Company or its members for the purpose of offering securities to the public that are issued or issuable for the Class A Units or the rights to receive, or the securities that are convertible into, or exchangeable or exercisable for, the

 

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common stock or other equity securities of a corporation or other entity otherwise formed by the Company or the holders of Units for the purpose of offering securities to the public that are issued or issuable for the Class A Units, or (iii) the common stock or other equity securities of a Parent, a Subsidiary or other entity to which the assets of the Company and/or the Subsidiaries have been transferred, in each case, whose securities the Company has determined to offer to the public and that are issued or issuable for the Class A Units.

 

h.              “Company” shall mean Vantiv Holding, LLC (f/k/a FTPS Holding, LLC), a Delaware limited liability company.

 

i.                 “Consultant” shall mean a person who performs bona fide services for the Company or any Parent or Subsidiary as a consultant or advisor, excluding Employees and Directors.

 

j.                 “control”  (including the correlative meanings of the terms “controlled by” and “under common control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management policies of such Person, whether through the ownership of voting securities or by contract or otherwise.

 

k.             “Director” shall mean a member of the Board who is not an Employee.

 

l.                 “Disability” shall have the meaning set forth in the Participant’s then-effective employment agreement with the Company or any Parent or Subsidiary, or, if there is no then-effective agreement, then “Disability” shall mean: the inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment, as determined by the Board in its sole reasonable discretion.

 

m.           “Employee” shall mean an individual who is a common-law employee of the Company or any Parent or Subsidiary.

 

n.              “Fair Market Value” of any security shall mean, (i) if such security is readily traded on a national securities exchange or other market system, the closing price of such security on the last business day immediately preceding the date of determination, or (ii) if such security is not readily tradable on an exchange or other market system, then the fair market value of such security, as between a willing buyer and a willing seller not under a compulsion to buy or sell in an arms’-length transaction occurring on the date of the valuation, taking into account the relevant factors, as reasonably determined in Good Faith by the Board as of the time of valuation.

 

o.               “Good Faith” shall mean a Person having acted honestly and fairly and in a manner such Person reasonably believed to be in or not opposed to the best interests of the Company (as opposed to the interests of a particular member of the Company).

 

p.               “Initial Public Offering” means the first registered public offering and sale of Class A Units or Common Stock for cash pursuant to an effective registration statement under the Securities Act of 1933, as amended, registered on Form S-1 (or any successor form), in which such Class A Units or Common Stock are sold to one or more underwriters on a firm-commitment basis for reoffering to the public.

 

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q.               “IPO Conversion” shall mean, with respect to an Initial Public Offering, the conversion or exchange of Class A Units into Common Stock as approved by the Board in its discretion in accordance with the LLC Agreement in connection with such Initial Public Offering.

 

r.               “LLC Agreement” shall mean the Amended and Restated Limited Liability Company Agreement by and among the Company and the members party thereto, dated as of June 30, 2009, as may be amended from time to time in accordance with its terms.

 

s.               “Parent” shall mean, with respect to any Person, a Person that has control of such Person.  A Person that attains the status of a Parent on a date after the adoption of the Plan shall be considered a Parent commencing as of such date.

 

t.                 “Participant” shall mean an Employee, Director or Consultant to whom the Board has granted Phantom Units under the Plan.

 

u.              “Person” shall mean a natural person, individual, corporation, partnership, limited partnership, limited liability partnership, limited liability company, association, joint venture, joint stock company, estate, legal representative, trust, unincorporated association, government or any political subdivision or agency thereof, any business or legal entity, and any spouse, heir, legatee, executor, administrator, predecessor, successor, representative or assign of any of the foregoing.

 

v.                “Phantom Unit” shall mean a notional Class A Unit (or any successor security) of the Company that tracks the value of a Class A Unit but does not entitle a Participant to be the holder of a Class A Unit or any equity interest of the Company or any Parent or Subsidiary at any time.

 

w.             “Phantom Unit Agreement” shall mean any agreement between the Company and any Participant which contains the terms, conditions and restrictions pertaining to the Participant’s Phantom Units.  The Board may make such changes to the form of the Phantom Unit Agreement for any particular grant as the Board may determine pursuant to its authority set forth in Section 2 of the Plan.

 

x.               “Plan” shall mean this Vantiv Holding, LLC (f/k/a FTPS Holding, LLC) Management Phantom Equity Plan, as may be amended, modified and supplemented from time to time.

 

y.               “Service” shall mean service as an Employee, Director or Consultant.

 

z.               “Subsidiary” shall mean any Person of which (i) a majority of the outstanding share capital, voting securities or other equity interests are owned, directly or indirectly, by the Company and/or any Subsidiary or (ii) the Company and/or any Subsidiary is entitled, directly or indirectly, to appoint a majority of the board of directors or comparable body of such Person.  A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date.  For purposes of this definition, “corporation” shall include a partnership, limited liability company or other entity consistent with the purpose of this definition.

 

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aa.         “Units” shall mean the Class A Units, the Class B Units and the Class C Units (each, as defined in the LLC Agreement) of the Company.

 

SECTION 9.  MISCELLANEOUS.

 

a.               Choice of Law.  The Plan shall be governed by, and construed in accordance with, the laws of the State of Delaware, as such laws are applied to contracts entered into and performed in such State without reference to the conflicts of laws thereof to the extent such reference would direct a matter to another jurisdiction.

 

b.               Notices.  Any notice, request or other  document required or permitted to be given or delivered to a Participant or the Company shall be given at the address or email address set forth below and shall be effective upon (1) personal delivery to the recipient, (2) when telecopied or emailed to the recipient if the telecopy is promptly confirmed by automated or telephone confirmation thereof or if the email is promptly confirmed by email or telephone confirmation thereof, or (3) one (1) business day after being sent to the recipient by reputable overnight courier service (charges prepaid):

 

If to a Participant, to the Participant’s last address (or to the last facsimile number) shown on the payroll records of the Company.

 

If to the Company or any Parent or Subsidiary, to:

 

Vantiv Holding, LLC
 8500 Governor’s Hill Drive

Cincinnati, OH 45249-1384
 Attention: Charles D. Drucker

 

c.               Successors and Assigns of the Company.  The terms of the Plan shall be binding upon and inure to the benefit of the Company and any of its successors and assigns.

 

d.               Execution.  To record the adoption of the Plan by the Board, the Company has caused its authorized officer to execute the same.

 

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Vantiv   Holding, LLC
    
	
 
    	
(f/k/a   FTPS Holding, LLC)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Nelson F. Greene
    
	
 
    	
Name:
    	
Nelson   F. Greene
    
	
 
    	
Title:
    	
Chief   Legal Officer and Secretary
    
	
 
    	
 
    
	
 
    	
Signed   pursuant to authority granted by the Vantiv Holding, LLC Board of Directors   on April 26, 2011

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