Document:

Forms of Agreement for Equity Compensation

 This exhibit contains forms of agreements used by the company to grant non-qualified and incentive stock options to its
executive officers under the company’s 1996 Stock Incentive Plan and non-qualified options to its non-employee directors under its Stock Option Plan for Non-Employee Directors. Readers should note that there are forms of agreement only and
particular agreements with executive officers and directors may contain terms that differ but not in material respects. 
  
 Exhibit 10.80 
 COM-E 
 8-22-02 
  
 CSG SYSTEMS INTERNATIONAL, INC. 
 1996 STOCK INCENTIVE PLAN 
 NON-QUALIFIED STOCK OPTION AGREEMENT 
  
 This Non-Qualified Stock Option Agreement dated «Agreement_Date», is entered into between «Employee» (the “Optionee”)
and CSG SYSTEMS INTERNATIONAL, INC. (the “Company”), a Delaware corporation. 
  
 * * * 
  
 WHEREAS, the Company has
adopted a 1996 Stock Incentive Plan (the “Plan”); and 
  
 WHEREAS, the Plan is administered by the Compensation Committee (the “Committee”) of the Board of Directors of the Company; and 
  
 WHEREAS, the Committee has authority under the Plan to grant Non-Qualified Stock Options covering shares of Common Stock of the Company; and 

 
 WHEREAS, pursuant to the Plan, the Committee has granted a Non-Qualified
Stock Option to the Optionee and has directed the Company to execute this Agreement for the purpose of evidencing the grant of such option; 
  
 NOW, THEREFORE, the Company and the Optionee agree as follows: 
  

1. Grant of Option. Pursuant to the Plan, on «Grant_Date» (the “Grant Date”), the Committee granted to the Optionee an
option (the “Option”) to purchase «Grant_Amt» shares of Common Stock of the Company at a purchase price of «Price» per share; and the Company and the Optionee are executing this Agreement to evidence the grant of
the Option and the terms thereof. The Option is a Non-Qualified Stock Option for all purposes of the Plan and this Agreement. The Plan is incorporated in this Agreement with the same force and effect as if the Plan were set forth in full in this
Agreement, and the Option is subject to all of the applicable terms and provisions of the Plan. The number of shares subject to the Option and the purchase price per share are subject to adjustment as provided in the Plan. By signing this Agreement,
the Optionee acknowledges receipt from the Company of a copy of the Plan. 
  
 2. Term and Exercisability of Option. The Option shall not be exercisable more than ten (10) years after the Grant Date. If not sooner exercised, terminated, or cancelled, the Option shall expire ten (10) years
after the Grant Date. Subject to all of the terms of the Plan, the Option shall be exercisable in «Installments» installments of                 
shares each [or:              (            ) installments of «Install_1»;
«Install_2»; «Install_3» and «Install_4» shares, respectively], which installments shall become exercisable on «Vest_1»; «Vest_2»; «Vest_3» «Vest_4»,
respectively. Once an installment of the Option becomes exercisable under this Agreement, it shall remain exercisable until the expiration, cancellation, or termination of the Option. Except as otherwise provided in Paragraphs 4, 5, 6, and 7, the
Option shall terminate if the Optionee ceases to be employed by the Company and all of its Subsidiaries and may not thereafter be exercised. 
  
 3. Method of Exercise of Option. The Option may be exercised by the Optionee (or by the Optionee’s legal representative, any other person
entitled to exercise the Option pursuant to Paragraph 6, or a permitted assignee to whom the Option has been assigned pursuant to Paragraph 9) as to all or any part of the shares covered by the Option as to which the Option is then exercisable by
(i) either logging on to www.benefitaccess.com, which is a stock option access web site, or calling (800) 367-4777, which is a touch-tone voice response system, in either case specifying the number of shares to be purchased and providing any
other information requested by the web site or voice response system, and (ii) submitting to the Company or the broker designated by the Company payment in full for such shares in cash or as otherwise permitted by the Committee with respect to such
exercise of the Option. The Committee reserves the right from time to time to modify or supplement the method or methods of exercising the Option and will promptly notify the Optionee of any such modification. 

 4. Termination of Employment Other than by Reason of Death, Disability, or Retirement. If the
Optionee ceases to be employed by the Company and all of its Subsidiaries for any reason other than the Optionee’s death, Disability, or Retirement, prior to the expiration of the Option and without the Optionee’s having fully exercised
the Option, then the Optionee (or the Optionee’s legal representative) shall have the right to exercise the Option during its term within a period of three (3) months after such termination of employment to the extent that the Option was
exercisable at the time of such termination of employment. Notwithstanding the foregoing provisions of this Paragraph 4, the Optionee (and the Optionee’s legal representative) shall not have any rights under the Option, and the Company shall
not be obligated to sell or deliver shares of Common Stock of the Company (or have any other obligation or liability) under the Option, if the Committee shall determine that (i) the employment of the Optionee with the Company or any Subsidiary has
been terminated for cause or (ii) the Optionee has engaged or may engage in employment or activities competitive with the Company or any Subsidiary or contrary, in the opinion of the Committee, to the best interests of the Company or any Subsidiary.
In the event of such determination, the Optionee (and the Optionee’s legal representative) shall have no right under the Option to purchase any shares of Common Stock of the Company regardless of whether the Optionee (or the Optionee’s
legal representative) shall have delivered a notice of exercise of the Option prior to the Committee’s making of such determination. The Option may be terminated entirely by the Committee at the time of or at any time subsequent to a
determination by the Committee under this Paragraph 4 which has the effect of eliminating the Company’s obligation to sell or deliver shares of Common Stock of the Company under the Option. Any rights which the Optionee may have under this
Paragraph 4 are subject to the provisions of Paragraph 15. 
  
 5.
Termination of Employment by Reason of Disability. If the Optionee ceases to be employed by the Company and all of its Subsidiaries by reason of the Optionee’s Disability, prior to the expiration of the Option and without the
Optionee’s having fully exercised the Option, then the Optionee (or the Optionee’s legal representative) shall have the right to exercise the Option during its term within a period of six (6) months after such termination of employment to
the extent that the Option was exercisable at the time of such termination of employment. Any rights which the Optionee may have under this Paragraph 5 are subject to the provisions of Paragraph 15. 
  
 6. Termination of Employment by Reason of Death. If the Optionee
ceases to be employed by the Company and all of its Subsidiaries by reason of the Optionee’s death, prior to the expiration of the Option and without the Optionee’s having fully exercised the Option, then the personal representative of the
Optionee’s estate or the person who acquired the right to exercise the Option by bequest or inheritance from the Optionee shall have the right to exercise the Option during its term within a period of twelve (12) months after the date of the
Optionee’s death to the extent that the Option was exercisable at the time of such death; however, if, at the time of the Optionee’s death, the Optionee either (i) had reached the age of sixty-five (65) years or (ii) had reached the age of
fifty-five (55) years and completed six (6) continuous years of employment by the Company or its Subsidiaries, then such 12-month period shall be extended to thirty-six (36) months. 
  
 7. Termination of Employment by Reason of Retirement. If the Optionee ceases to be employed by the Company and all of
its Subsidiaries by reason of the Optionee’s Retirement, prior to the expiration of the Option and without the Optionee’s having fully exercised the Option, then the Optionee (or the Optionee’s legal representative) shall have the
right to exercise the Option during its term within a period of thirty-six (36) months after such termination of employment to the extent that the Option was exercisable at the time of such termination of employment. Any rights which the Optionee
may have under this Paragraph 7 are subject to the provisions of Paragraph 15. For purposes of this Agreement, “Retirement” means the termination of the Optionee’s employment for any reason (including but not limited to the
Optionee’s Disability) other than the Optionee’s death after the Optionee either (i) has reached the age of sixty-five (65) years or (ii) has reached the age of fifty-five (55) years and completed six (6) continuous years of employment by
the Company or its Subsidiaries. 
  
 8. Rights of Optionee.
Neither the Optionee nor any other person having the right to exercise the Option shall have any rights as a stockholder of the Company with respect to the shares of Common Stock of the Company subject to the Option until the issuance of a stock
certificate to the Optionee or such other person for such shares in accordance with the Plan. 
  

 2 

 9. Nonassignability of Option. Except as provided in the following sentence, neither the Option
nor any of the Optionee’s rights and interests under the Plan or this Agreement may be assigned or transferred by the Optionee in whole or in part either directly or by operation of law or otherwise (except by will or the laws of descent and
distribution in the event of the Optionee’s death); and neither the Option nor any of the Optionee’s rights and interests under the Plan or this Agreement may be pledged, encumbered, or otherwise subjected to any obligation or liability of
the Optionee. After giving at least thirty (30) days’ prior written notice to the Secretary of the Company, the Optionee may assign the Option in whole or in part to a Family Member or a Family Entity at any time prior to the expiration,
termination, or cancellation of the Option, subject to all of the terms and conditions of the Plan and this Agreement; provided, that any such assignment shall be in writing, the Optionee promptly shall deliver a copy of any such assignment to the
Secretary of the Company, and the Optionee and the assignee shall enter into such further agreement with the Company providing for the satisfaction of applicable federal, state, and local tax withholding requirements arising from or in connection
with the exercise of the Option as the Company may require. A Family Member or a Family Entity to whom the Option has been assigned pursuant to the preceding sentence also shall be subject to the restrictions, limitations, and requirements contained
in the first two sentences of this Paragraph 9. For purposes of this Paragraph 9, “Family Member” means only (i) the Optionee, (ii) a spouse, parent, child or more remote descendant, brother, sister, niece, or nephew of the Optionee, and
(iii) a spouse of a brother, sister, child, or more remote descendant of the Optionee. For purposes of this Paragraph 9, “Family Entity” means only (i) a corporation, partnership, or limited liability company all of whose equity interests
are owned by Family Members or other Family Entities and (ii) a trust or custodianship for the exclusive benefit of one or more Family Members (other than non-Family Member contingent beneficiaries whose rights arise only if no Family Member
beneficiary is living). Subject to the first two sentences of Paragraph 2, the exercisability of the Option by a Family Member or a Family Entity to whom the Option has been assigned pursuant to this Paragraph 9 shall be determined by reference to
the Optionee’s employment as provided in Paragraphs 2, 4, 5, 6, and 7 and is subject to the provisions of Paragraph 15. The Committee shall have exclusive authority to determine whether an assignment or transfer of the Option is permitted by
this Paragraph 9, and the decision of the Committee with respect to such matter shall be binding and conclusive on the Company, the Optionee, and all other persons and entities. Without the prior approval of the Committee, a Family Entity to which
the Option has been assigned pursuant to this Paragraph 9 shall not permit any non-Family Member to become a beneficial owner of an equity interest in or a beneficiary of such Family Entity (except by will or the laws of descent and distribution in
the event of the death of a Family Member); and if a Family Entity violates the foregoing provisions of this sentence, then the Committee in its absolute discretion may terminate the Option effective as of the date on which such violation occurred.
No Family Member or Family Entity to whom the Option has been assigned shall have any greater rights with respect to the Option than the Optionee would have had if the Option had not been assigned. 
  
 10. Right of Discharge Reserved. Nothing in the Plan or in this
Agreement shall confer upon the Optionee the right to continue in the employ of the Company or any Subsidiary for any particular period of time or in any particular capacity or affect any right which the Company or any Subsidiary may have to
terminate the employment of the Optionee. 
  
 11.
Interpretations. The Committee shall have the authority to construe and interpret the provisions of the Plan and this Agreement and to make all decisions of fact and other determinations necessary or advisable for the administration of the
Plan and this Agreement. Decisions and determinations of the Committee on all matters relating to the Plan or this Agreement shall be final and binding on all persons as provided in the Plan. The captions of the various paragraphs of this Agreement
are for the purpose of convenient reference only and are not intended to define or limit the contents of such paragraphs. Capitalized terms used in this Agreement, unless defined in this Agreement, shall have the meanings given to such terms in the
Plan. 
  
 12. Waivers. The waiver by the Company of any
provision of this Agreement shall not operate or be construed to be a subsequent waiver of the same provision or a waiver of any other provision of this Agreement. 
  
 13. Governing Law. The Plan and this Agreement shall be governed by and construed in accordance with the laws of
Delaware. 
  

 3 

 14. Binding Effect. This Agreement shall be binding upon the Company, the Optionee, and their
respective heirs, personal representatives, successors, and assigns. However, nothing contained in this Paragraph 14 shall be construed to allow the Optionee to make any assignment which is otherwise prohibited by the Plan or this Agreement.

  
 15. Nonsolicitation Agreement of Optionee. (a) As a
further consideration for the grant of the Option, the Optionee agrees with the Company that for a period of twelve (12) months after the Optionee ceases for any reason, whether voluntarily or involuntarily, to be employed by the Company or any of
the Company’s Subsidiaries, the Optionee will not, in any capacity and whether alone or in association with another, directly or indirectly employ, solicit for employment, assist any other person to employ or solicit for employment, or advise
or recommend to any other person that such other person employ or solicit for employment any person who then is employed by the Company or any of its Subsidiaries or who was employed by the Company or any of its Subsidiaries during the ninety (90)
day period prior to the taking of such action by the Optionee. 
  
 (b) The Company and the Optionee acknowledge that, if the Optionee breaches any of the foregoing provisions of this Paragraph 15, it would be unreasonably difficult or substantially impossible to determine the actual damages which the
Company will sustain or incur as a result of such breach. Accordingly, the Company and the Optionee agree that the Company shall be entitled to recover from the Optionee liquidated damages in respect of such breach determined as follows: 

 

	 	(i)	If the Optionee has not exercised the Option as to some or all of the shares of Common Stock of the Company covered by the Option (the “Option Shares”), then the Company
shall have the right by written notice to the Optionee to terminate the Option as to all of the Option Shares as to which the Option has not been exercised or previously terminated. 

  

	 	(ii)	If the Optionee has exercised the Option as to some or all of the Option Shares but has not yet disposed of some or all of the shares of Common Stock of the Company received upon
such exercise(s) of the Option (the “Issued Shares”), then upon written demand from the Company the Optionee forthwith shall deliver to the Company for cancellation the certificates for all of the Issued Shares. 

 

	 	(iii)	If the Optionee has exercised the Option as to some or all of the Option Shares and has disposed of some or all of the Issued Shares received upon such exercise(s), then upon
written demand from the Company the Optionee forthwith shall pay to the Company an amount equal to (w) the gross cash proceeds of the sale of the Issued Shares (if the Issued Shares have been disposed of by the Optionee for cash), (x) the fair
market value of any consideration other than cash received for the Issued Shares (if the Issued Shares have been disposed of by the Optionee for a consideration other than cash), (y) the fair market value of the Issued Shares on the date of their
disposition (if the Issued Shares have been disposed of by the Optionee by gift or otherwise for less than their fair market value), or (z) a combination of the foregoing amounts if applicable. 

  
 If the Company incurs any costs or expenses, including attorney fees, in enforcing the
provisions of this Paragraph 15, then the Optionee further agrees that the Company also shall be entitled to recover from the Optionee, in addition to the foregoing liquidated damages, the reasonable costs and expenses of such enforcement.

  
 16. Change of Control. (a) Upon the occurrence of a
Change of Control, the Option automatically shall become immediately exercisable in full without regard to the provisions of Paragraph 2 relating to the exercisability of the Option in installments. 
  

 4 

 (b) For purposes of this agreement, a “Change of Control” shall be deemed to have occurred upon
the happening of any of the following events: 
  

	 	(i)	The Company is merged or consolidated into another corporation or entity, and immediately after such merger or consolidation becomes effective the holders of a majority of the
outstanding shares of voting capital stock of the Company immediately prior to the effectiveness of such merger or consolidation do not own (directly or indirectly) a majority of the outstanding shares of voting capital stock or other equity
interests having voting rights of the surviving or resulting corporation or other entity in such merger or consolidation; 

  

	 	(ii)	any person, entity, or group of persons within the meaning of Sections 13(d) or 14(d) of the Securities Exchange Act of 1934 (the “1934 Act”) and the rules promulgated
thereunder becomes the beneficial owner (within the meaning of Rule 13d-3 under the 1934 Act) of thirty percent (30%) or more of the outstanding voting capital stock of the Company; 

  

	 	(iii)	the Common Stock of the Company ceases to be publicly traded because of an issuer tender offer or other “going private” transaction (other than a transaction sponsored by
the then current management of the Company); 

  

	 	(iv)	the Company dissolves or sells or otherwise disposes of all or substantially all of its property and assets (other than to an entity or group of entities which is then under common
majority ownership (directly or indirectly) with the Company); or 

  

	 	(v)	In one or more substantially concurrent transactions or in a series of related transactions, the Company directly or indirectly disposes of a portion or portions of its business
operations (collectively, the “Sold Business”) other than by ceasing to conduct the Sold Business without its being acquired by a third party (regardless of the entity or entities through which the Company conducted the Sold Business and
regardless of whether such disposition is accomplished through a sale of assets, the transfer of ownership of an entity or entities, a merger, or in some other manner) and either (i) the fair market value of the consideration received or to be
received by the Company for the Sold Business is equal to at least thirty percent (30%) of the market value of the outstanding Common Stock of the Company determined by multiplying the average of the closing prices for the Common Stock of the
Company on the thirty (30) trading days immediately preceding the date of the first public announcement of the proposed disposition of the Sold Business by the average of the numbers of outstanding shares of Common Stock on such thirty (30) trading
days or (ii) the revenues of the Sold Business during the most recent four (4) calendar quarters ended prior to the first public announcement of the proposed disposition of the Sold Business represented thirty percent (30%) or more of the total
consolidated revenues of the Company during such four (4) calendar quarters. 

  

	 	(vi)	during any period of two consecutive years or less, individuals who at the beginning of such period constituted the Board of Directors of the Company cease, for any reason, to
constitute at least a majority of the Board of Directors of the Company, unless the election or nomination for election of each new director of the Company who took office during such period was approved by a vote of at least seventy-five percent
(75%) of the directors of the Company still in office at the time of such election or nomination for election who were directors of the Company at the beginning of such period. 

  
 (c) For purposes of this agreement, “Change of Control Date” means
the date upon which a Change of Control becomes effective. 
  
 (d)
The provisions of this Paragraph 16 shall be construed and applied in such manner as to enable the Optionee to realize the economic benefits (if any) of the Option in conjunction with the consummation or anticipated consummation of a Change of
Control, and the Company shall permit the exercise of the Option to occur at a time 
  

 5 

 and in a manner which will achieve such result (including, in appropriate circumstances, the exercise of the Option
immediately prior to the Change of Control Date) or shall provide for the replacement of the Option with an economically equivalent option to acquire shares of the publicly traded capital stock or other publicly traded equity interests having voting
rights of another corporation or other entity which is the direct or indirect successor to the Company as a result of such Change of Control. 
  
 (e) Notwithstanding any other provision of this Agreement which provides a shorter period during which the Option may be exercised after the Optionee
ceases to be employed by the Company and all of its Subsidiaries, if the Optionee ceases to be employed by the Company and all of its Subsidiaries for any reason upon or after a Change of Control, prior to the expiration or other termination of the
Option and without the Optionee’s having fully exercised the Option, then the Optionee or the Optionee’s legal representative (or, in the case of the Optionee’s death, the personal representative of the Optionee’s estate or the
person who acquired the right to exercise the Option by bequest or inheritance from the Optionee) shall have the right to exercise the Option (to the extent not previously exercised) at any time during that period after such termination of
employment which is the shorter of (i) the remaining term of the Option or (ii) thirty-six (36) months. 
  
 17. Gross-Up Payments. If the exercisability of the Option is accelerated pursuant to Paragraph 16 and such acceleration causes the Optionee to
become liable for any excise tax on “excess parachute payments” (within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended, and any regulations thereunder) and any interest or penalties thereon (such excise tax,
interest, and penalties, collectively, the “Tax Penalties”), then the Company promptly shall make a cash payment (the “Cash Payment”) to the Optionee in an amount equal to the Tax Penalties. The Company also promptly shall make
an additional cash payment to the Optionee in an amount rounded to the nearest $100.00 which is equal to any additional income, excise, and other taxes (using the individual tax rates applicable to the Optionee for the year for which such Tax
Penalties are owed) for which the Optionee will be liable as a result of the Optionee’s receipt of the Cash Payment (the additional cash payment provided for in this sentence being referred to as a “Gross-Up Payment”). In addition,
the Optionee shall be entitled to promptly receive from the Company a further Gross-Up Payment in respect of each prior Gross-Up Payment until the amount of the last Gross-Up Payment is less than $100.00. 
  
 IN WITNESS WHEREOF, the Company and the Optionee have duly executed this
Agreement as of the date first above written. 
  

			
	 CSG SYSTEMS INTERNATIONAL,

	 INC., a Delaware corporation

		
	 By:
	 	  

	 Title:
	 	  

		
	 	 	 
	
 «Employee», Optionee

  

 6 

 COM 
 8-22-02 
  
 CSG SYSTEMS
INTERNATIONAL, INC. 
 1996 STOCK INCENTIVE PLAN 
 NON-QUALIFIED STOCK OPTION AGREEMENT 
  
 This Non-Qualified Stock Option Agreement dated
                            , is entered into between
                                 (the “Optionee”) and CSG SYSTEMS
INTERNATIONAL, INC. (the “Company”), a Delaware corporation. 
  
 * * * 
  
 WHEREAS, the Company has adopted a 1996 Stock
Incentive Plan (the “Plan”); and 
  
 WHEREAS, the Plan
is administered by the Compensation Committee (the “Committee”) of the Board of Directors of the Company; and 
  
 WHEREAS, the Committee has authority under the Plan to grant Non-Qualified Stock Options covering shares of Common Stock of the Company; and 

 
 WHEREAS, pursuant to the Plan, the Committee has granted a Non-Qualified
Stock Option to the Optionee and has directed the Company to execute this Agreement for the purpose of evidencing the grant of such option; 
  
 NOW, THEREFORE, the Company and the Optionee agree as follows: 
  

1. Grant of Option. Pursuant to the Plan, on
                             (the “Grant Date”), the Committee granted to the Optionee an
option (the “Option”) to purchase                  shares of Common Stock of the Company at a purchase price of
$             per share; and the Company and the Optionee are executing this Agreement to evidence the grant of the Option and the terms thereof. The Option is a Non-Qualified Stock
Option for all purposes of the Plan and this Agreement. The Plan is incorporated in this Agreement with the same force and effect as if the Plan were set forth in full in this Agreement, and the Option is subject to all of the applicable terms and
provisions of the Plan. The number of shares subject to the Option and the purchase price per share are subject to adjustment as provided in the Plan. By signing this Agreement, the Optionee acknowledges receipt from the Company of a copy of the
Plan. 
  
 2. Term and Exercisability of Option. The Option
shall not be exercisable more than ten (10) years after the Grant Date. If not sooner exercised, terminated, or cancelled, the Option shall expire ten (10) years after the Grant Date. Subject to all of the terms of the Plan, the Option shall be
exercisable in                  (            ) installments of
                 shares each [or:                 
(            ) installments of                 ,
                ,                 , and
                 shares, respectively], which installments shall become exercisable on
                    ,
                    ,
                    , and
                    , respectively. Once an installment of the Option becomes exercisable under this Agreement, it shall remain exercisable
until the expiration, cancellation, or termination of the Option. Except as otherwise provided in Paragraphs 4, 5, 6, and 7, the Option shall terminate if the Optionee ceases to be employed by the Company and all of its Subsidiaries and may not
thereafter be exercised. The Option shall be exercisable during the life of the Optionee only by the Optionee or the Optionee’s legal representative. 

 3. Method of Exercise of Option. The Option may be exercised by the Optionee (or by the
Optionee’s legal representative or any other person entitled to exercise the Option pursuant to Paragraph 6) as to all or any part of the shares covered by the Option as to which the Option is then exercisable by (i) either logging on to
www.benefitaccess.com, which is a stock option access web site, or calling (800) 367-4777, which is a touch-tone voice response system, in either case specifying the number of shares to be purchased and providing any other information
requested by the web site or voice response system, and (ii) submitting to the Company or the broker designated by the Company payment in full for such shares in cash or as otherwise permitted by the Committee with respect to such exercise of the
Option. The Committee reserves the right from time to time to modify or supplement the method or methods of exercising the Option and will promptly notify the Optionee of any such modification. 
  
 4. Termination of Employment Other than by Reason of Death, Disability, or
Retirement. If the Optionee ceases to be employed by the Company and all of its Subsidiaries for any reason other than the Optionee’s death, Disability, or Retirement, prior to the expiration of the Option and without the Optionee’s
having fully exercised the Option, then the Optionee (or the Optionee’s legal representative) shall have the right to exercise the Option during its term within a period of three (3) months after such termination of employment to the extent
that the Option was exercisable at the time of such termination of employment. Notwithstanding the foregoing provisions of this Paragraph 4, the Optionee (and the Optionee’s legal representative) shall not have any rights under the Option, and
the Company shall not be obligated to sell or deliver shares of Common Stock of the Company (or have any other obligation or liability) under the Option, if the Committee shall determine that (i) the employment of the Optionee with the Company or
any Subsidiary has been terminated for cause or (ii) the Optionee has engaged or may engage in employment or activities competitive with the Company or any Subsidiary or contrary, in the opinion of the Committee, to the best interests of the Company
or any Subsidiary. In the event of such determination, the Optionee (and the Optionee’s legal representative) shall have no right under the Option to purchase any shares of Common Stock of the Company regardless of whether the Optionee (or the
Optionee’s legal representative) shall have delivered a notice of exercise of the Option prior to the Committee’s making of such determination. The Option may be terminated entirely by the Committee at the time of or at any time subsequent
to a determination by the Committee under this Paragraph 4 which has the effect of eliminating the Company’s obligation to sell or deliver shares of Common Stock of the Company under the Option. Any rights which the Optionee may have under this
Paragraph 4 are subject to the provisions of Paragraph 15. 
  
 5.
Termination of Employment by Reason of Disability. If the Optionee ceases to be employed by the Company and all of its Subsidiaries by reason of the Optionee’s Disability, prior to the expiration of the Option and without the
Optionee’s having fully exercised the Option, then the Optionee (or the Optionee’s legal representative) shall have the right to exercise the Option during its term within a period of six (6) months after such termination of employment to
the extent that the Option was exercisable at the time of such termination of employment. Any rights which the Optionee may have under this Paragraph 5 are subject to the provisions of Paragraph 15. 
  

 2 

 6. Termination of Employment by Reason of Death. If the Optionee ceases to be employed by the
Company and all of its Subsidiaries by reason of the Optionee’s death, prior to the expiration of the Option and without the Optionee’s having fully exercised the Option, then the personal representative of the Optionee’s estate or
the person who acquired the right to exercise the Option by bequest or inheritance from the Optionee shall have the right to exercise the Option during its term within a period of twelve (12) months after the date of the Optionee’s death to the
extent that the Option was exercisable at the time of such death; however, if, at the time of the Optionee’s death, the Optionee either (i) had reached the age of sixty-five (65) years or (ii) had reached the age of fifty-five (55) years and
completed six (6) continuous years of employment by the Company or its Subsidiaries, then such 12-month period shall be extended to thirty-six (36) months. 
  
 7. Termination of Employment by Reason of Retirement. If the Optionee ceases to be employed by the Company and all of its Subsidiaries by reason of
the Optionee’s Retirement, prior to the expiration of the Option and without the Optionee’s having fully exercised the Option, then the Optionee (or the Optionee’s legal representative) shall have the right to exercise the Option
during its term within a period of thirty-six (36) months after such termination of employment to the extent that the Option was exercisable at the time of such termination of employment. Any rights which the Optionee may have under this Paragraph 7
are subject to the provisions of Paragraph 15. For purposes of this Agreement, “Retirement” means the termination of the Optionee’s employment for any reason (including but not limited to the Optionee’s Disability) other than the
Optionee’s death after the Optionee either (i) has reached the age of sixty-five (65) years or (ii) has reached the age of fifty-five (55) years and completed six (6) continuous years of employment by the Company or its Subsidiaries.

  
 8. Rights of Optionee. Neither the Optionee nor any
other person having the right to exercise the Option shall have any rights as a stockholder of the Company with respect to the shares of Common Stock of the Company subject to the Option until the issuance of a stock certificate to the Optionee or
such other person for such shares in accordance with the Plan. 
  
 9. Nonassignability of Option. Neither the Option nor any of the Optionee’s rights and interests under the Plan or this Agreement may be assigned or transferred by the Optionee in whole or in part either directly or by operation
of law or otherwise (except by will or the laws of descent and distribution in the event of the Optionee’s death); and neither the Option nor any of the Optionee’s rights and interests under the Plan or this Agreement may be pledged,
encumbered, or otherwise subjected to any obligation or liability of the Optionee. 
  
 10. Right of Discharge Reserved. Nothing in the Plan or in this Agreement shall confer upon the Optionee the right to continue in the employ of the Company or any Subsidiary for any particular period of time or
in any particular capacity or affect any right which the Company or any Subsidiary may have to terminate the employment of the Optionee. 
  
 11. Interpretations. The Committee shall have the authority to construe and interpret the provisions of the Plan and this Agreement and to make all
decisions of fact and other determinations necessary or advisable for the administration of the Plan and this Agreement. Decisions and determinations of the Committee on all matters relating to the Plan or this Agreement shall be final and binding
on all persons as provided in the Plan. The captions of the various paragraphs of this Agreement are for the purpose of convenient reference only and are not intended to define or limit the contents of such paragraphs. Capitalized terms used in this
Agreement, unless defined in this Agreement, shall have the meanings given to such terms in the Plan. 
  

 3 

 12. Waivers. The waiver by the Company of any provision of this Agreement shall not operate or be
construed to be a subsequent waiver of the same provision or a waiver of any other provision of this Agreement. 
  
 13. Governing Law. The Plan and this Agreement shall be governed by and construed in accordance with the laws of Delaware. 
  
 14. Binding Effect. This Agreement shall be binding upon the Company,
the Optionee, and their respective heirs, personal representatives, successors, and assigns. However, nothing contained in this Paragraph 14 shall be construed to allow the Optionee to make any assignment which is otherwise prohibited by the Plan or
this Agreement. 
  
 15. Nonsolicitation Agreement of
Optionee. (a) As a further consideration for the grant of the Option, the Optionee agrees with the Company that for a period of twelve (12) months after the Optionee ceases for any reason, whether voluntarily or involuntarily, to be employed by
the Company or any of the Company’s Subsidiaries, the Optionee will not, in any capacity and whether alone or in association with another, directly or indirectly employ, solicit for employment, assist any other person to employ or solicit for
employment, or advise or recommend to any other person that such other person employ or solicit for employment any person who then is employed by the Company or any of its Subsidiaries or who was employed by the Company or any of its Subsidiaries
during the ninety (90) day period prior to the taking of such action by the Optionee. 
  
 (b) The Company and the Optionee acknowledge that, if the Optionee breaches any of the foregoing provisions of this Paragraph 15, it would be unreasonably difficult or substantially impossible to determine the actual
damages which the Company will sustain or incur as a result of such breach. Accordingly, the Company and the Optionee agree that the Company shall be entitled to recover from the Optionee liquidated damages in respect of such breach determined as
follows: 
  

	 	(i)	If the Optionee has not exercised the Option as to some or all of the shares of Common Stock of the Company covered by the Option (the “Option Shares”), then the Company
shall have the right by written notice to the Optionee to terminate the Option as to all of the Option Shares as to which the Option has not been exercised or previously terminated. 

  

	 	(ii)	If the Optionee has exercised the Option as to some or all of the Option Shares but has not yet disposed of some or all of the shares of Common Stock of the Company received upon
such exercise(s) of the Option (the “Issued Shares”), then upon written demand from the Company the Optionee forthwith shall deliver to the Company for cancellation the certificates for all of the Issued Shares. 

 

	 	(iii)	If the Optionee has exercised the Option as to some or all of the Option Shares and has disposed of some or all of the Issued Shares received upon such 

  

 4 

 exercise(s), then upon written demand from the Company the Optionee forthwith shall pay to the Company an
amount equal to (w) the gross cash proceeds of the sale of the Issued Shares (if the Issued Shares have been disposed of by the Optionee for cash), (x) the fair market value of any consideration other than cash received for the Issued Shares (if the
Issued Shares have been disposed of by the Optionee for a consideration other than cash), (y) the fair market value of the Issued Shares on the date of their disposition (if the Issued Shares have been disposed of by the Optionee by gift or
otherwise for less than their fair market value), or (z) a combination of the foregoing amounts if applicable. 
  
 If the Company incurs any costs or expenses, including attorney fees, in enforcing the provisions of this Paragraph 15, then the Optionee further agrees that the Company also shall be entitled to recover from the
Optionee, in addition to the foregoing liquidated damages, the reasonable costs and expenses of such enforcement. 
  
 IN WITNESS WHEREOF, the Company and the Optionee have duly executed this Agreement as of the date first above written. 
  

			
	 CSG SYSTEMS INTERNATIONAL,

	 INC., a Delaware corporation

		
	 By:
	 	  

	 Title:
	 	  

	
	  

	 Optionee

  

 5 

 COM-E 
 8-22-02 
  
 CSG SYSTEMS
INTERNATIONAL, INC. 
 1996 STOCK INCENTIVE PLAN 
 INCENTIVE STOCK OPTION AGREEMENT 
  
 This Incentive Stock Option Agreement dated «Agreement_Date», is entered into between «Employee» (the “Optionee”) and CSG SYSTEMS INTERNATIONAL, INC. (the “Company”), a
Delaware corporation. 
  
 * * * 
  
 WHEREAS, the Company has adopted a 1996 Stock Incentive Plan (the
“Plan”); and 
  
 WHEREAS, the Plan is administered by
the Compensation Committee (the “Committee”) of the Board of Directors of the Company; and 
  
 WHEREAS, the Committee has authority under the Plan to grant Incentive Stock Options covering shares of Common Stock of the Company; and 
  
 WHEREAS, pursuant to the Plan, the Committee has granted an Incentive Stock
Option to the Optionee and has directed the Company to execute this Agreement for the purpose of evidencing the grant of such option; 
  
 NOW, THEREFORE, the Company and the Optionee agree as follows: 
  

1. Grant of Option. Pursuant to the Plan, on «Grant_Date» (the “Grant Date”), the Committee granted to the Optionee an
option (the “Option”) to purchase «Grant_Amt» shares of Common Stock of the Company at a purchase price of «Price» per share; and the Company and the Optionee are executing this Agreement to evidence the grant of
the Option and the terms thereof. The Option is an Incentive Stock Option for all purposes of the Plan and this Agreement. The Plan is incorporated in this Agreement with the same force and effect as if the Plan were set forth in full in this
Agreement, and the Option is subject to all of the applicable terms and provisions of the Plan. The number of shares subject to the Option and the purchase price per share are subject to adjustment as provided in the Plan. By signing this Agreement,
the Optionee acknowledges receipt from the Company of a copy of the Plan. 
  
 2. Term and Exercisability of Option. The Option shall not be exercisable more than ten (10) years after the Grant Date. If not sooner exercised, terminated, or cancelled, the Option shall expire ten (10) years
after the Grant Date. Subject to all of the terms of the Plan, the Option shall be exercisable in              (        ) installments
of              shares each [or              (        )
installments of             ,             ,
            , and              shares, respectively], which installments shall become exercisable on
                    ,
                    ,
                    , and
                    , respectively. Once an installment of the Option becomes exercisable under this Agreement, it shall remain exercisable
until the expiration, cancellation, or termination of the Option. Except as otherwise provided in Paragraphs 4, 5, and 6, the Option shall terminate if the Optionee ceases to be employed by the Company and all of its Subsidiaries and may not
thereafter be exercised. The Option shall be exercisable during the life of the Optionee only by the Optionee or the Optionee’s legal representative. 
  
 3. Method of Exercise of Option. The Option may be exercised by the Optionee (or by the Optionee’s legal representative or any other person
entitled to exercise the Option pursuant to Paragraph 6) as to all or any part of the shares covered by the Option as to which the Option is then exercisable by (i) either logging on to www.benefitaccess.com, which is a stock option access
web site, or calling (800) 367-4777, which is a touch-tone voice response system, in either case specifying the number of shares to be purchased and providing any other information requested by the web site or voice response system, and (ii)
submitting to the Company or the broker designated by the Company payment in full for such shares in cash or as otherwise permitted by the Committee with respect to such exercise of the Option. The Committee reserves the right from time to time to
modify or supplement the method or methods of exercising the Option and will promptly notify the Optionee of any such modification. 

 4. Termination of Employment Other than by Reason of Death or Disability. If the Optionee ceases
to be employed by the Company and all of its Subsidiaries for any reason other than the Optionee’s death or Disability, prior to the expiration of the Option and without the Optionee’s having fully exercised the Option, then the Optionee
(or the Optionee’s legal representative) shall have the right to exercise the Option during its term within a period of three (3) months after such termination of employment to the extent that the Option was exercisable at the time of such
termination of employment. Notwithstanding the foregoing provisions of this Paragraph 4, the Optionee (and the Optionee’s legal representative) shall not have any rights under the Option, and the Company shall not be obligated to sell or
deliver shares of Common Stock of the Company (or have any other obligation or liability) under the Option, if the Committee shall determine that (i) the employment of the Optionee with the Company or any Subsidiary has been terminated for cause or
(ii) the Optionee has engaged or may engage in employment or activities competitive with the Company or any Subsidiary or contrary, in the opinion of the Committee, to the best interests of the Company or any Subsidiary. In the event of such
determination, the Optionee (and the Optionee’s legal representative) shall have no right under the Option to purchase any shares of Common Stock of the Company regardless of whether the Optionee (or the Optionee’s legal representative)
shall have delivered a notice of exercise of the Option prior to the Committee’s making of such determination. The Option may be terminated entirely by the Committee at the time of or at any time subsequent to a determination by the Committee
under this Paragraph 4 which has the effect of eliminating the Company’s obligation to sell or deliver shares of Common Stock of the Company under the Option. Any rights which the Optionee may have under this Paragraph 4 are subject to the
provisions of Paragraph 15. 
  
 5. Termination of Employment by
Reason of Disability. If the Optionee ceases to be employed by the Company and all of its Subsidiaries by reason of the Optionee’s Disability, prior to the expiration of the Option and without the Optionee’s having fully exercised the
Option, then the Optionee (or the Optionee’s legal representative) shall have the right to exercise the Option during its term within a period of six (6) months after such termination of employment to the extent that the Option was exercisable
at the time of such termination of employment. Any rights which the Optionee may have under this Paragraph 5 are subject to the provisions of Paragraph 15. 
  
 6. Termination of Employment by Reason of Death. If the Optionee ceases to be employed by the Company and all of its Subsidiaries by reason of the
Optionee’s death, prior to the expiration of the Option and without the Optionee’s having fully exercised the Option, then the personal representative of the Optionee’s estate or the person who acquired the right to exercise the
Option by bequest or inheritance from the Optionee shall have the right to exercise the Option during its term within a period of twelve (12) months after the date of the Optionee’s death to the extent that the Option was exercisable at the
time of such death. 
  
 7. Rights of Optionee. Neither the
Optionee nor any other person having the right to exercise the Option shall have any rights as a stockholder of the Company with respect to the shares of Common Stock of the Company subject to the Option until the issuance of a stock certificate to
the Optionee or such other person for such shares in accordance with the Plan. 
  
 8. Nonassignability of Option. Neither the Option nor any of the Optionee’s rights and interests under the Plan or this Agreement may be assigned or transferred by the Optionee in whole or in part either
directly or by operation of law or otherwise (except by will or the laws of descent and distribution in the event of the Optionee’s death); and neither the Option nor any of the Optionee’s rights and interests under the Plan or this
Agreement may be pledged, encumbered, or otherwise subjected to any obligation or liability of the Optionee. 
  
 9. Right of Discharge Reserved. Nothing in the Plan or in this Agreement shall confer upon the Optionee the right to continue in the employ of the
Company or any Subsidiary for any particular period of time or in any particular capacity or affect any right which the Company or any Subsidiary may have to terminate the employment of the Optionee. 
  

 2 

 10. Notice of Disposition. The Optionee shall notify the Company of any disposition of shares of
Common Stock of the Company issued pursuant to the exercise of the Option under the circumstances described in Section 421(b) of the Internal Revenue Code of 1986 (relating to certain disqualifying dispositions) within ten (10) days after such
disposition. 
  
 11. Interpretations. The Committee shall
have the authority to construe and interpret the provisions of the Plan and this Agreement and to make all decisions of fact and other determinations necessary or advisable for the administration of the Plan and this Agreement. Decisions and
determinations of the Committee on all matters relating to the Plan or this Agreement shall be final and binding on all persons as provided in the Plan. The captions of the various paragraphs of this Agreement are for the purpose of convenient
reference only and are not intended to define or limit the contents of such paragraphs. Capitalized terms used in this Agreement, unless defined in this Agreement, shall have the meanings given to such terms in the Plan. 
  
 12. Waivers. The waiver by the Company of any provision of this
Agreement shall not operate or be construed to be a subsequent waiver of the same provision or a waiver of any other provision of this Agreement. 
  
 13. Governing Law. The Plan and this Agreement shall be governed by and construed in accordance with the laws of Delaware. 
  
 14. Binding Effect. This Agreement shall be binding upon the Company,
the Optionee, and their respective heirs, personal representatives, successors, and assigns. However, nothing contained in this Paragraph 14 shall be construed to allow the Optionee to make any assignment which is otherwise prohibited by the Plan or
this Agreement. 
  
 15. Nonsolicitation Agreement of
Optionee. (a) As a further consideration for the grant of the Option, the Optionee agrees with the Company that for a period of twelve (12) months after the Optionee ceases for any reason, whether voluntarily or involuntarily, to be employed by
the Company or any of the Company’s Subsidiaries, the Optionee will not, in any capacity and whether alone or in association with another, directly or indirectly employ, solicit for employment, assist any other person to employ or solicit for
employment, or advise or recommend to any other person that such other person employ or solicit for employment any person who then is employed by the Company or any of its Subsidiaries or who was employed by the Company or any of its Subsidiaries
during the ninety (90) day period prior to the taking of such action by the Optionee. 
  
 (b) The Company and the Optionee acknowledge that, if the Optionee breaches any of the foregoing provisions of this Paragraph 15, it would be unreasonably difficult or substantially impossible to determine the actual
damages which the Company will sustain or incur as a result of such breach. Accordingly, the Company and the Optionee agree that the Company shall be entitled to recover from the Optionee liquidated damages in respect of such breach determined as
follows: 
  

	 	(i)	If the Optionee has not exercised the Option as to some or all of the shares of Common Stock of the Company covered by the Option (the “Option Shares”), then the Company
shall have the right by written notice to the Optionee to terminate the Option as to all of the Option Shares as to which the Option has not been exercised or previously terminated. 

  

	 	(ii)	If the Optionee has exercised the Option as to some or all of the Option Shares but has not yet disposed of some or all of the shares of Common Stock of the Company received upon
such exercise(s) of the Option (the “Issued Shares”), then upon written demand from the Company the Optionee forthwith shall deliver to the Company for cancellation the certificates for all of the Issued Shares. 

 

 3 

	 	(iii)	If the Optionee has exercised the Option as to some or all of the Option Shares and has disposed of some or all of the Issued Shares received upon such exercise(s), then upon
written demand from the Company the Optionee forthwith shall pay to the Company an amount equal to (w) the gross cash proceeds of the sale of the Issued Shares (if the Issued Shares have been disposed of by the Optionee for cash), (x) the fair
market value of any consideration other than cash received for the Issued Shares (if the Issued Shares have been disposed of by the Optionee for a consideration other than cash), (y) the fair market value of the Issued Shares on the date of their
disposition (if the Issued Shares have been disposed of by the Optionee by gift or otherwise for less than their fair market value), or (z) a combination of the foregoing amounts if applicable. 

  
 If the Company incurs any costs or expenses, including attorney fees, in enforcing the
provisions of this Paragraph 15, then the Optionee further agrees that the Company also shall be entitled to recover from the Optionee, in addition to the foregoing liquidated damages, the reasonable costs and expenses of such enforcement.

  
 16. Change of Control. (a) Upon the occurrence of a
Change of Control, the Option automatically shall become immediately exercisable in full without regard to the provisions of Paragraph 2 relating to the exercisability of the Option in installments. 
  
 (b) For purposes of this agreement, a “Change of Control” shall be
deemed to have occurred upon the happening of any of the following events: 
  

	 	(i)	The Company is merged or consolidated into another corporation or entity, and immediately after such merger or consolidation becomes effective the holders of a majority of the
outstanding shares of voting capital stock of the Company immediately prior to the effectiveness of such merger or consolidation do not own (directly or indirectly) a majority of the outstanding shares of voting capital stock or other equity
interests having voting rights of the surviving or resulting corporation or other entity in such merger or consolidation; 

  

	 	(ii)	any person, entity, or group of persons within the meaning of Sections 13(d) or 14(d) of the Securities Exchange Act of 1934 (the “1934 Act”) and the rules promulgated
thereunder becomes the beneficial owner (within the meaning of Rule 13d-3 under the 1934 Act) of thirty percent (30%) or more of the outstanding voting capital stock of the Company; 

  

	 	(iii)	the Common Stock of the Company ceases to be publicly traded because of an issuer tender offer or other “going private” transaction (other than a transaction sponsored by
the then current management of the Company); 

  

	 	(iv)	the Company dissolves or sells or otherwise disposes of all or substantially all of its property and assets (other than to an entity or group of entities which is then under common
majority ownership (directly or indirectly) with the Company); or 

  

	 	(v)	In one or more substantially concurrent transactions or in a series of related transactions, the Company directly or indirectly disposes of a portion or portions of its business
operations (collectively, the “Sold Business”) other than by ceasing to conduct the Sold Business without its being acquired by a third party (regardless of the entity or entities through which the Company conducted the Sold Business and
regardless of whether such disposition is accomplished through a sale of assets, the transfer of ownership of an entity or entities, a merger, or in some other manner) and either (i) the fair market value of the consideration received or to be
received by the Company for the Sold Business is equal to 

  

 4 

 at least thirty percent (30%) of the market value of the outstanding Common Stock of the Company
determined by multiplying the average of the closing prices for the Common Stock of the Company on the thirty (30) trading days immediately preceding the date of the first public announcement of the proposed disposition of the Sold Business by the
average of the numbers of outstanding shares of Common Stock on such thirty (30) trading days or (ii) the revenues of the Sold Business during the most recent four (4) calendar quarters ended prior to the first public announcement of the proposed
disposition of the Sold Business represented thirty percent (30%) or more of the total consolidated revenues of the Company during such four (4) calendar quarters. 
  

	 	(vi)	during any period of two consecutive years or less, individuals who at the beginning of such period constituted the Board of Directors of the Company cease, for any reason, to
constitute at least a majority of the Board of Directors of the Company, unless the election or nomination for election of each new director of the Company who took office during such period was approved by a vote of at least seventy-five percent
(75%) of the directors of the Company still in office at the time of such election or nomination for election who were directors of the Company at the beginning of such period. 

  
 (c) For purposes of this agreement, “Change of Control Date” means
the date upon which a Change of Control becomes effective. 
  
 (d)
The provisions of this Paragraph 16 shall be construed and applied in such manner as to enable the Optionee to realize the economic benefits (if any) of the Option in conjunction with the consummation or anticipated consummation of a Change of
Control, and the Company shall permit the exercise of the Option to occur at a time and in a manner which will achieve such result (including, in appropriate circumstances, the exercise of the Option immediately prior to the Change of Control Date).

  
 17. Gross-Up Payments. If the exercisability of the
Option is accelerated pursuant to Paragraph 16 and such acceleration causes the Optionee to become liable for any excise tax on “excess parachute payments” (within the meaning of Section 280G of the Internal Revenue Code of 1986, as
amended, and any regulations thereunder) and any interest or penalties thereon (such excise tax, interest, and penalties, collectively, the “Tax Penalties”), then the Company promptly shall make a cash payment (the “Cash
Payment”) to the Optionee in an amount equal to the Tax Penalties. The Company also promptly shall make an additional cash payment to the Optionee in an amount rounded to the nearest $100.00 which is equal to any additional income, excise, and
other taxes (using the individual tax rates applicable to the Optionee for the year for which such Tax Penalties are owed) for which the Optionee will be liable as a result of the Optionee’s receipt of the Cash Payment (the additional cash
payment provided for in this sentence being referred to as a “Gross-Up Payment”). In addition, the Optionee shall be entitled to promptly receive from the Company a further Gross-Up Payment in respect of each prior Gross-Up Payment until
the amount of the last Gross-Up Payment is less than $100.00. 
  
 IN WITNESS WHEREOF, the Company and the Optionee have duly executed this Agreement as of the date first above written. 
  

			
	CSG SYSTEMS INTERNATIONAL,
	INC., a Delaware corporation
		
	 By:
	 	  

	 Title:
	 	  

	  
  

	«Employee»Optionee

  

 5 

 COM 
 8-22-02 
  
 CSG SYSTEMS
INTERNATIONAL, INC. 
 1996 STOCK INCENTIVE PLAN 
 INCENTIVE STOCK OPTION AGREEMENT 
  
 This Incentive Stock Option Agreement dated                 , is entered into between
                 (the “Optionee”) and CSG SYSTEMS INTERNATIONAL, INC. (the “Company”), a Delaware corporation. 
  
 * * * 
  
 WHEREAS, the Company has adopted a 1996 Stock Incentive Plan (the “Plan”); and 
  
 WHEREAS, the Plan is administered by the Compensation Committee (the
“Committee”) of the Board of Directors of the Company; and 
  
 WHEREAS, the Committee has authority under the Plan to grant Incentive Stock Options covering shares of Common Stock of the Company; and 
  
 WHEREAS, pursuant to the Plan, the Committee has granted an Incentive Stock Option to the Optionee and has directed the Company to execute this Agreement
for the purpose of evidencing the grant of such option; 
  
 NOW,
THEREFORE, the Company and the Optionee agree as follows: 
  
 1.
Grant of Option. Pursuant to the Plan, on                      (the “Grant Date”), the Committee granted to the Optionee an
option (the “Option”) to purchase              shares of Common Stock of the Company at a purchase price of
$             per share; and the Company and the Optionee are executing this Agreement to evidence the grant of the Option and the terms thereof. The Option is an Incentive Stock
Option for all purposes of the Plan and this Agreement. The Plan is incorporated in this Agreement with the same force and effect as if the Plan were set forth in full in this Agreement, and the Option is subject to all of the applicable terms and
provisions of the Plan. The number of shares subject to the Option and the purchase price per share are subject to adjustment as provided in the Plan. By signing this Agreement, the Optionee acknowledges receipt from the Company of a copy of the
Plan. 
  
 2. Term and Exercisability of Option. The Option
shall not be exercisable more than ten (10) years after the Grant Date. If not sooner exercised, terminated, or cancelled, the Option shall expire ten (10) years after the Grant Date. Subject to all of the terms of the Plan, the Option shall be
exercisable in              (            ) installments of
             shares each [or             
(            ) installments of             ,
            ,             , and             
shares, respectively], which installments shall become exercisable on                     ,
                    ,
                    , and
                    , respectively. Once an installment of the Option becomes exercisable under this Agreement, it shall remain exercisable
until the expiration, cancellation, or termination of the Option. Except as otherwise provided in Paragraphs 4, 5, and 6, the Option shall terminate if the Optionee ceases to be employed by the Company and all of its Subsidiaries and may not
thereafter be exercised. The Option shall be exercisable during the life of the Optionee only by the Optionee or the Optionee’s legal representative. 

 3. Method of Exercise of Option. The Option may be exercised by the Optionee (or by the
Optionee’s legal representative or any other person entitled to exercise the Option pursuant to Paragraph 6) as to all or any part of the shares covered by the Option as to which the Option is then exercisable by (i) either logging on to
www.benefitaccess.com, which is a stock option access web site, or calling (800) 367-4777, which is a touch-tone voice response system, in either case specifying the number of shares to be purchased and providing any other information
requested by the web site or voice response system, and (ii) submitting to the Company or the broker designated by the Company payment in full for such shares in cash or as otherwise permitted by the Committee with respect to such exercise of the
Option. The Committee reserves the right from time to time to modify or supplement the method or methods of exercising the Option and will promptly notify the Optionee of any such modification. 
  
 4. Termination of Employment Other than by Reason of Death or
Disability. If the Optionee ceases to be employed by the Company and all of its Subsidiaries for any reason other than the Optionee’s death or Disability, prior to the expiration of the Option and without the Optionee’s having fully
exercised the Option, then the Optionee (or the Optionee’s legal representative) shall have the right to exercise the Option during its term within a period of three (3) months after such termination of employment to the extent that the Option
was exercisable at the time of such termination of employment. Notwithstanding the foregoing provisions of this Paragraph 4, the Optionee (and the Optionee’s legal representative) shall not have any rights under the Option, and the Company
shall not be obligated to sell or deliver shares of Common Stock of the Company (or have any other obligation or liability) under the Option, if the Committee shall determine that (i) the employment of the Optionee with the Company or any Subsidiary
has been terminated for cause or (ii) the Optionee has engaged or may engage in employment or activities competitive with the Company or any Subsidiary or contrary, in the opinion of the Committee, to the best interests of the Company or any
Subsidiary. In the event of such determination, the Optionee (and the Optionee’s legal representative) shall have no right under the Option to purchase any shares of Common Stock of the Company regardless of whether the Optionee (or the
Optionee’s legal representative) shall have delivered a notice of exercise of the Option prior to the Committee’s making of such determination. The Option may be terminated entirely by the Committee at the time of or at any time subsequent
to a determination by the Committee under this Paragraph 4 which has the effect of eliminating the Company’s obligation to sell or deliver shares of Common Stock of the Company under the Option. Any rights which the Optionee may have under this
Paragraph 4 are subject to the provisions of Paragraph 15. 
  
 5.
Termination of Employment by Reason of Disability. If the Optionee ceases to be employed by the Company and all of its Subsidiaries by reason of the Optionee’s Disability, prior to the expiration of the Option and without the
Optionee’s having fully exercised the Option, then the Optionee (or the Optionee’s legal representative) shall have the right to exercise the Option during its term within a period of six (6) months after such termination of employment to
the extent that the Option was exercisable at the time of such termination of employment. Any rights which the Optionee may have under this Paragraph 5 are subject to the provisions of Paragraph 15. 
  

 2 

 6. Termination of Employment by Reason of Death. If the Optionee ceases to be employed by the
Company and all of its Subsidiaries by reason of the Optionee’s death, prior to the expiration of the Option and without the Optionee’s having fully exercised the Option, then the personal representative of the Optionee’s estate or
the person who acquired the right to exercise the Option by bequest or inheritance from the Optionee shall have the right to exercise the Option during its term within a period of twelve (12) months after the date of the Optionee’s death to the
extent that the Option was exercisable at the time of such death. 
  
 7. Rights of Optionee. Neither the Optionee nor any other person having the right to exercise the Option shall have any rights as a stockholder of the Company with respect to the shares of Common Stock of the Company subject to the
Option until the issuance of a stock certificate to the Optionee or such other person for such shares in accordance with the Plan. 
  
 8. Nonassignability of Option. Neither the Option nor any of the Optionee’s rights and interests under the Plan or this Agreement may be
assigned or transferred by the Optionee in whole or in part either directly or by operation of law or otherwise (except by will or the laws of descent and distribution in the event of the Optionee’s death); and neither the Option nor any of the
Optionee’s rights and interests under the Plan or this Agreement may be pledged, encumbered, or otherwise subjected to any obligation or liability of the Optionee. 
  
 9. Right of Discharge Reserved. Nothing in the Plan or in this Agreement shall confer upon the Optionee the right to
continue in the employ of the Company or any Subsidiary for any particular period of time or in any particular capacity or affect any right which the Company or any Subsidiary may have to terminate the employment of the Optionee. 
  
 10. Notice of Disposition. The Optionee shall notify the Company of
any disposition of shares of Common Stock of the Company issued pursuant to the exercise of the Option under the circumstances described in Section 421(b) of the Internal Revenue Code of 1986 (relating to certain disqualifying dispositions) within
ten (10) days after such disposition. 
  
 11.
Interpretations. The Committee shall have the authority to construe and interpret the provisions of the Plan and this Agreement and to make all decisions of fact and other determinations necessary or advisable for the administration of the
Plan and this Agreement. Decisions and determinations of the Committee on all matters relating to the Plan or this Agreement shall be final and binding on all persons as provided in the Plan. The captions of the various paragraphs of this Agreement
are for the purpose of convenient reference only and are not intended to define or limit the contents of such paragraphs. Capitalized terms used in this Agreement, unless defined in this Agreement, shall have the meanings given to such terms in the
Plan. 
  
 12. Waivers. The waiver by the Company of any
provision of this Agreement shall not operate or be construed to be a subsequent waiver of the same provision or a waiver of any other provision of this Agreement. 
  
 13. Governing Law. The Plan and this Agreement shall be governed by and construed in accordance with the laws of
Delaware. 
  

 3 

 14. Binding Effect. This Agreement shall be binding upon the Company, the Optionee, and their
respective heirs, personal representatives, successors, and assigns. However, nothing contained in this Paragraph 14 shall be construed to allow the Optionee to make any assignment which is otherwise prohibited by the Plan or this Agreement.

  
 15. Nonsolicitation Agreement of Optionee. (a) As a
further consideration for the grant of the Option, the Optionee agrees with the Company that for a period of twelve (12) months after the Optionee ceases for any reason, whether voluntarily or involuntarily, to be employed by the Company or any of
the Company’s Subsidiaries, the Optionee will not, in any capacity and whether alone or in association with another, directly or indirectly employ, solicit for employment, assist any other person to employ or solicit for employment, or advise
or recommend to any other person that such other person employ or solicit for employment any person who then is employed by the Company or any of its Subsidiaries or who was employed by the Company or any of its Subsidiaries during the ninety (90)
day period prior to the taking of such action by the Optionee. 
  
 (b) The Company and the Optionee acknowledge that, if the Optionee breaches any of the foregoing provisions of this Paragraph 15, it would be unreasonably difficult or substantially impossible to determine the actual damages which the
Company will sustain or incur as a result of such breach. Accordingly, the Company and the Optionee agree that the Company shall be entitled to recover from the Optionee liquidated damages in respect of such breach determined as follows: 

 

	 	(i)	If the Optionee has not exercised the Option as to some or all of the shares of Common Stock of the Company covered by the Option (the “Option Shares”), then the Company
shall have the right by written notice to the Optionee to terminate the Option as to all of the Option Shares as to which the Option has not been exercised or previously terminated. 

  

	 	(ii)	If the Optionee has exercised the Option as to some or all of the Option Shares but has not yet disposed of some or all of the shares of Common Stock of the Company received upon
such exercise(s) of the Option (the “Issued Shares”), then upon written demand from the Company the Optionee forthwith shall deliver to the Company for cancellation the certificates for all of the Issued Shares. 

 

	 	(iii)	If the Optionee has exercised the Option as to some or all of the Option Shares and has disposed of some or all of the Issued Shares received upon such exercise(s), then upon
written demand from the Company the Optionee forthwith shall pay to the Company an amount equal to (w) the gross cash proceeds of the sale of the Issued Shares (if the Issued Shares have been disposed of by the Optionee for cash), (x) the fair
market value of any consideration other than cash received for the Issued Shares (if the Issued Shares have been disposed of by the Optionee for a consideration other than cash), (y) the fair market value of the Issued Shares on the date of their
disposition (if the Issued Shares have been disposed of by the Optionee by gift or otherwise for less than their fair market value), or (z) a combination of the foregoing amounts if applicable. 

  

 4 

 If the Company incurs any costs or expenses, including attorney fees, in enforcing the provisions of this Paragraph 15,
then the Optionee further agrees that the Company also shall be entitled to recover from the Optionee, in addition to the foregoing liquidated damages, the reasonable costs and expenses of such enforcement. 
  
 IN WITNESS WHEREOF, the Company and the Optionee have duly executed this
Agreement as of the date first above written. 
  

			
	CSG SYSTEMS INTERNATIONAL,
	INC., a Delaware corporation
		
	 By:
	 	  

	 Title:
	 	  

	 	 	 
	
	  

	 Optionee

  

 5 

 CSG SYSTEMS INTERNATIONAL, INC. 
 STOCK OPTION PLAN FOR NON-EMPLOYEE DIRECTORS 
 STOCK OPTION AGREEMENT

  
 This Stock Option Agreement dated
                            ,
            , is entered into between
                             (the “Optionee”) and CSG SYSTEMS INTERNATIONAL, INC. (the
“Company”), a Delaware corporation. 
  
 * * * 

 
 WHEREAS, the Company has adopted a Stock Option Plan for Non-Employee
Directors (the “Plan”); and 
  
 WHEREAS, the Plan is
administered by the Board of Directors of the Company (the “Board”); and 
  
 WHEREAS, the Board has authority under the Plan to grant Stock Options covering shares of Common Stock of the Company; and 
  
 WHEREAS, pursuant to the Plan, the Board has granted a Stock Option to the Optionee and has directed that this Agreement be executed for the purpose of
evidencing the grant of such Stock Option; 
  
 NOW, THEREFORE, the
Company and the Optionee agree as follows: 
  
 1. Grant of
Option. Pursuant to the Plan, on                     ,             
(the “Grant Date”), the Board granted to the Optionee an option (the “Option”) to purchase                  shares of Common Stock of the
Company at a purchase price of $             per share; and the Company and the Optionee are executing this Agreement to evidence the grant of the Option and the terms thereof. The
Option is a nonqualified stock option for purposes of the Internal Revenue Code of 1986. The Plan is incorporated in this Agreement with the same force and effect as if the Plan were set forth in full in this Agreement, and the Option is subject to
all of the applicable terms and provisions of the Plan. The number of shares subject to the Option and the purchase price per share are subject to adjustment as provided in the Plan. By signing this Agreement, the Optionee acknowledges receipt from
the Company of a copy of the Plan. 
  
 2. Term and
Exercisability of Option. Subject to all of the terms of the Plan and this Agreement, the Option shall be exercisable in                 
(            ) installments of              shares each, which installments shall become exercisable on
                    ,             , and
                        , respectively. Once an installment of the Option becomes exercisable under this Agreement, it
shall remain exercisable until the expiration, cancellation, or termination of the Option. The Option shall not be exercisable more than ten (10) years after the Grant Date. If not sooner exercised, terminated, or cancelled, the Option shall expire
ten (10) years after the Grant Date. Except as otherwise provided in Paragraphs 4, 5, and 6, the Option shall terminate if the Optionee ceases to be a member of the Board. 

 3. Method of Exercise of Option. The Option may be exercised by the Optionee (or by the
Optionee’s legal representative, any other person entitled to exercise the Option pursuant to Paragraph 6, or a permitted assignee to whom the Option has been assigned pursuant to Paragraph 8) as to all or any part of the shares covered by the
Option as to which the Option is then exercisable by (i) either logging on to www.benefitaccess.com, which is a stock option access web site, or calling (800) 367-4777, which is a touch-tone voice response system, in either case specifying
the number of shares to be purchased and providing any other information requested by the web site or voice response system, and (ii) submitting to the Company or the broker designated by the Company payment in full for such shares either (a) in
cash, (b) in shares of Common Stock of the Company which already are owned by the Optionee (and have been owned by the Optionee for more than six months prior to the Option exercise date) and which are surrendered to the Company in good form for
transfer, or (c) in any combination of cash and such shares of Common Stock of the Company. When payment is made in shares of Common Stock of the Company, the value of such shares for such purpose shall be their Fair Market Value (as defined in the
Plan) on the Option exercise date. The Board reserves the right from time to time to modify or supplement the method or methods of exercising the Option and will promptly notify the Optionee of any such modification. 
  
 4. Cessation of Service as a Director. If the Optionee ceases to be a
member of the Board for any reason other than retirement from the Board under the circumstances described in Paragraph 5 or death, then the Option (to the extent not previously exercised) shall continue to be exercisable to the extent that it was
exercisable at the time that the Optionee ceased to be a member of the Board but only until the earlier of (i) one year after the Optionee ceased to be a member of the Board or (ii) the expiration of the term of the Option; and to the extent not
exercisable or not exercised (if exercisable) by such applicable date, the Option shall terminate and be of no further force or effect. 
  
 5. Retirement from Board. If the Optionee ceases to be a member of the Board (other than by reason of death) and at the time of such occurrence
(the “Retirement Date”) is at least age 65 with ten or more years of service as a member of the Board or is at least age 70 with five or more years of service as a member of the Board, then the Option (to the extent not previously
exercised) shall continue to be or shall become exercisable in accordance with its terms until the earlier of (i) five years after the Retirement Date or (ii) the expiration of the term of the Option; and to the extent not exercisable or not
exercised (if exercisable) by such applicable date, the Option shall terminate and be of no further force or effect. 
  
 6. Death. If the Optionee dies while the Option is unexercised (in whole or in part) and has been held by the Optionee for at least twelve months
as of the date of the Optionee’s death, then the Option automatically shall become exercisable in full (if not already exercisable) upon the Optionee’s death. If the Option becomes exercisable pursuant to the preceding sentence or already
was exercisable on the date of the Optionee’s death, then the Option may be exercised by the personal representative of the Optionee’s estate or by the beneficiaries of such estate to whom the Option is distributed until the earlier of (i)
three years after the date of the Optionee’s death or (ii) the expiration of the term of the Option; and to the extent not exercisable or not exercised (if exercisable) by such applicable date, the Option shall terminate and be of no further
force or effect. 
  

 2 

 7. Rights of Optionee. Neither the Optionee nor any other person having the right to exercise the
Option shall have any rights as a stockholder of the Company with respect to the shares of Common Stock of the Company subject to the Option until the issuance of a stock certificate to the Optionee or such other person for such shares in accordance
with the Plan. 
  
 8. Nonassignability of Option. Except as
provided in the following sentence, neither the Option nor any of the Optionee’s rights and interests under the Plan or this Agreement may be assigned or transferred by the Optionee in whole or in part either directly or by operation of law or
otherwise (except by will or the laws of descent and distribution in the event of the Optionee’s death); and neither the Option nor any of the Optionee’s rights and interests under the Plan or this Agreement may be pledged, encumbered, or
otherwise subjected to any obligation or liability of the Optionee. After giving at least thirty (30) days’ prior written notice to the Secretary of the Company, the Optionee may assign the Option in whole or in part to a Family Member or a
Family Entity at any time prior to the expiration, termination, or cancellation of the Option, subject to all of the terms and conditions of the Plan and this Agreement; provided, that any such assignment shall be in writing, and the Optionee
promptly shall deliver a copy of any such assignment to the Secretary of the Company. A Family Member or a Family Entity to whom the Option has been assigned pursuant to the preceding sentence also shall be subject to the restrictions, limitations,
and requirements contained in the first two sentences of this Paragraph 8. For purposes of this Paragraph 8, “Family Member” means only (i) the Optionee, (ii) a spouse, parent, child or more remote descendant, brother, sister, niece, or
nephew of the Optionee, and (iii) a spouse of a brother, sister, child, or more remote descendant of the Optionee. For purposes of this Paragraph 8, “Family Entity” means only (i) a corporation, partnership, or limited liability company
all of whose equity interests are owned by Family Members or other Family Entities and (ii) a trust or custodianship for the exclusive benefit of one or more Family Members (other than non-Family Member contingent beneficiaries whose rights arise
only if no Family Member beneficiary is living). Subject to the third and fourth sentences of Paragraph 2, the exercisability of the Option by a Family Member or a Family Entity to whom the Option has been assigned pursuant to this Paragraph 8 shall
be determined by reference to the Optionee’s membership on the Board as provided in Paragraphs 2, 4, 5, and 6. The Board shall have exclusive authority to determine whether an assignment or transfer of the Option is permitted by this Paragraph
8, and the decision of the Board with respect to such matter shall be binding and conclusive on the Company, the Optionee, and all other persons and entities. Without the prior approval of the Board, a Family Entity to which the Option has been
assigned pursuant to this Paragraph 8 shall not permit any non-Family Member to become a beneficial owner of an equity interest in or a beneficiary of such Family Entity (except by will or the laws of descent and distribution in the event of the
death of a Family Member); and if a Family Entity violates the foregoing provisions of this sentence, then the Board in its absolute discretion may terminate the Option effective as of the date on which such violation occurred. No Family Member or
Family Entity to whom the Option has been assigned shall have any greater rights with respect to the Option than the Optionee would have had if the Option had not been assigned. 
  

 3 

 9. Change of Control. 
  
 (a) Upon the occurrence of a Change of Control, the Option automatically shall become immediately
exercisable in full without regard to the provisions of Paragraph 2 relating to the exercisability of the Option in installments. 
  
 (b) For purposes of this agreement, a “Change of Control” shall be deemed to have occurred upon the happening of any of the
following events: 
  

	 	(1)	The Company is merged or consolidated into another corporation or entity, and immediately after such merger or consolidation becomes effective the holders of a majority of the
outstanding shares of voting capital stock of the Company immediately prior to the effectiveness of such merger or consolidation do not own (directly or indirectly) a majority of the outstanding shares of voting capital stock or other equity
interests having voting rights of the surviving or resulting corporation or other entity in such merger or consolidation; 

  

	 	(2)	any person, entity, or group of persons within the meaning of Sections 13(d) or 14(d) of the Securities Exchange Act of 1934 (the “1934 Act”) and the rules promulgated
thereunder becomes the beneficial owner (within the meaning of Rule 13d-3 under the 1934 Act) of thirty percent (30%) or more of the outstanding voting capital stock of the Company; 

  

	 	(3)	the Common Stock of the Company ceases to be publicly traded because of an issuer tender offer or other “going private” transaction (other than a transaction sponsored by
the then current management of the Company); 

  

	 	(4)	the Company dissolves or sells or otherwise disposes of all or substantially all of its property and assets (other than to an entity or group of entities which is then under common
majority ownership (directly or indirectly) with the Company); or 

  

	 	(5)	In one or more substantially concurrent transactions or in a series of related transactions, the Company directly or indirectly disposes of a portion or 

  

 4 

 portions of its business operations (collectively, the “Sold Business”) other than by ceasing
to conduct the Sold Business without its being acquired by a third party (regardless of the entity or entities through which the Company conducted the Sold Business and regardless of whether such disposition is accomplished through a sale of assets,
the transfer of ownership of an entity or entities, a merger, or in some other manner) and either (i) the fair market value of the consideration received or to be received by the Company for the Sold Business is equal to at least thirty percent
(30%) of the market value of the outstanding Common Stock of the Company determined by multiplying the average of the closing prices for the Common Stock of the Company on the thirty (30) trading days immediately preceding the date of the first
public announcement of the proposed disposition of the Sold Business by the average of the numbers of outstanding shares of Common Stock on such thirty (30) trading days or (ii) the revenues of the Sold Business during the most recent four (4)
calendar quarters ended prior to the first public announcement of the proposed disposition of the Sold Business represented thirty percent (30%) or more of the total consolidated revenues of the Company during such four (4) calendar quarters.

  

	 	(6)	during any period of two consecutive years or less, individuals who at the beginning of such period constituted the Board of Directors of the Company cease, for any reason, to
constitute at least a majority of the Board of Directors of the Company, unless the election or nomination for election of each new director of the Company who took office during such period was approved by a vote of at least seventy-five percent
(75%) of the directors of the Company still in office at the time of such election or nomination for election who were directors of the Company at the beginning of such period. 

  
 (c) For purposes of this agreement, “Change of Control
Date” means the date upon which a Change of Control becomes effective. 
  

 5 

 (d) The provisions of this Paragraph 9 shall be construed and applied in such manner as
to enable the Optionee to realize the economic benefits (if any) of the Option in conjunction with the consummation or anticipated consummation of a Change of Control, and the Company shall permit the exercise of the Option to occur at a time and in
a manner which will achieve such result (including, in appropriate circumstances, the exercise of the Option immediately prior to the Change of Control Date) or shall provide for the replacement of the Option with an economically equivalent option
to acquire shares of the publicly traded capital stock or other publicly traded equity interests having voting rights of another corporation or other entity which is the direct or indirect successor to the Company as a result of such Change of
Control. 
  
 (e) If the Optionee ceases to be a
member of the Board upon or after a Change of Control, prior to the expiration or other termination of the Option and without the Optionee’s having fully exercised the Option, then the period of time referred to in clause (i) of Paragraph 4
shall be three years rather than one year. 
  
 10. Gross-Up
Payments. If the exercisability of the Option is accelerated pursuant to Paragraph 9 and such acceleration causes the Optionee to become liable for any excise tax on “excess parachute payments” (within the meaning of Section 280G of
the Internal Revenue Code of 1986, as amended, and any regulations thereunder) and any interest or penalties thereon (such excise tax, interest, and penalties, collectively, the “Tax Penalties”), then the Company promptly shall make a cash
payment (the “Cash Payment”) to the Optionee in an amount equal to the Tax Penalties. The Company also promptly shall make an additional cash payment to the Optionee in an amount rounded to the nearest $100.00 which is equal to any
additional income, excise, and other taxes (using the individual tax rates applicable to the Optionee for the year for which such Tax Penalties are owed) for which the Optionee will be liable as a result of the Optionee’s receipt of the Cash
Payment (the additional cash payment provided for in this sentence being referred to as a “Gross-Up Payment”). In addition, the Optionee shall be entitled to promptly receive from the Company a further Gross-Up Payment in respect of each
prior Gross-Up Payment until the amount of the last Gross-Up Payment is less than $100.00. 
  
 11. No Right of Continued Service. Nothing in the Plan or in this Agreement shall confer upon the Optionee the right to continue to be a member of the Board. 
  
 12. Interpretations. The Board shall have the authority to interpret
the provisions of the Plan and this Agreement and to decide all questions of fact and make all other determinations necessary or advisable for the administration of the Plan and this Agreement. Decisions and determinations of the Board on all
matters relating to the Plan or this Agreement shall be final and binding on all persons as provided in the Plan. The captions of the various paragraphs of this Agreement are for the purpose of convenient reference only and are not intended to
define or limit the contents of such paragraphs. Capitalized terms used in this Agreement, unless defined in this Agreement, shall have the meanings given to such terms in the Plan. 
  

 6 

 13. Waivers. The waiver by the Company of any provision of this Agreement shall not operate as or
be construed to be a subsequent waiver of the same provision or a wavier of any other provision of this Agreement. 
  
 14. Governing Law. The Plan and this Agreement shall be governed by and construed in accordance with the laws of Delaware. 
  
 15. Binding Effect. This Agreement shall be binding upon the Company,
the Optionee, and their respective heirs, personal representatives, successors, and assigns. However, nothing contained in this Paragraph 15 shall be construed to allow the Optionee to make any assignment which is otherwise prohibited by the Plan or
this Agreement. 
  
 IN WITNESS WHEREOF, the Company and the
Optionee have duly executed this Agreement as of the date first above written. 
  

			
	 CSG SYSTEMS INTERNATIONAL,

	 INC., a Delaware corporation

		
	 By:
	 	  

	 Title:
	 	 Chairman of the Board and

	 	 	 Chief Executive Officer

	
	

	                        , Optionee

  

 7 

 CSG SYSTEMS INTERNATIONAL, INC. 
 STOCK OPTION PLAN FOR NON-EMPLOYEE DIRECTORS 
 STOCK OPTION AGREEMENT

  
 This Stock Option Agreement dated
                            ,
            , is entered into between
                             (the “Optionee”) and CSG SYSTEMS INTERNATIONAL, INC. (the
“Company”), a Delaware corporation. 
  
 *  *  * 
  
 WHEREAS, the Company has
adopted a Stock Option Plan for Non-Employee Directors (the “Plan”); and 
  
 WHEREAS, the Plan is administered by the Board of Directors of the Company (the “Board”); and 
  
 WHEREAS, the Board has authority under the Plan to grant Stock Options covering shares of Common Stock of the Company; and 
  
 WHEREAS, pursuant to the Plan, the Board has granted a Stock Option to the
Optionee and has directed that this Agreement be executed for the purpose of evidencing the grant of such Stock Option; 
  
 NOW, THEREFORE, the Company and the Optionee agree as follows: 
  

1. Grant of Option. Pursuant to the Plan, on
                            ,
             (the “Grant Date”), the Board granted to the Optionee an option (the “Option”) to purchase
                 shares of Common Stock of the Company at a purchase price of $             per
share; and the Company and the Optionee are executing this Agreement to evidence the grant of the Option and the terms thereof. The Option is a nonqualified stock option for purposes of the Internal Revenue Code of 1986. The Plan is incorporated in
this Agreement with the same force and effect as if the Plan were set forth in full in this Agreement, and the Option is subject to all of the applicable terms and provisions of the Plan. The number of shares subject to the Option and the purchase
price per share are subject to adjustment as provided in the Plan. By signing this Agreement, the Optionee acknowledges receipt from the Company of a copy of the Plan. 
  
 2. Term and Exercisability of Option. Subject to all of the terms of the Plan and this Agreement, the Option shall be
exercisable in                  (            ) installments of
                 shares each, which installments shall become exercisable on
                ,                 , and
                    , respectively. Once an installment of the Option becomes exercisable under this Agreement, it shall remain exercisable
until the expiration, cancellation, or termination of the Option. The Option shall not be exercisable more than ten (10) years after the Grant Date. If not sooner exercised, terminated, or cancelled, the Option shall expire ten (10) years after the
Grant Date. Except as otherwise provided in Paragraphs 4, 5, and 6, the Option shall terminate if the Optionee ceases to be a member of the Board. 

 3. Method of Exercise of Option. The Option may be exercised by the Optionee (or by the
Optionee’s legal representative, any other person entitled to exercise the Option pursuant to Paragraph 6, or a permitted assignee to whom the Option has been assigned pursuant to Paragraph 8) as to all or any part of the shares covered by the
Option as to which the Option is then exercisable by (i) either logging on to www.benefitaccess.com, which is a stock option access web site, or calling (800) 367-4777, which is a touch-tone voice response system, in either case specifying
the number of shares to be purchased and providing any other information requested by the web site or voice response system, and (ii) submitting to the Company or the broker designated by the Company payment in full for such shares either (a) in
cash, (b) in shares of Common Stock of the Company which already are owned by the Optionee (and have been owned by the Optionee for more than six months prior to the Option exercise date) and which are surrendered to the Company in good form for
transfer, or (c) in any combination of cash and such shares of Common Stock of the Company. When payment is made in shares of Common Stock of the Company, the value of such shares for such purpose shall be their Fair Market Value (as defined in the
Plan) on the Option exercise date. The Board reserves the right from time to time to modify or supplement the method or methods of exercising the Option and will promptly notify the Optionee of any such modification. 
  
 4. Cessation of Service as a Director. If the Optionee ceases to be a
member of the Board for any reason other than retirement from the Board under the circumstances described in Paragraph 5 or death, then the Option (to the extent not previously exercised) shall continue to be exercisable to the extent that it was
exercisable at the time that the Optionee ceased to be a member of the Board but only until the earlier of (i) one year after the Optionee ceased to be a member of the Board or (ii) the expiration of the term of the Option; and to the extent not
exercisable or not exercised (if exercisable) by such applicable date, the Option shall terminate and be of no further force or effect. 
  
 5. Retirement from Board. If the Optionee ceases to be a member of the Board (other than by reason of death) and at the time of such occurrence
(the “Retirement Date”) is at least age 65 with ten or more years of service as a member of the Board or is at least age 70 with five or more years of service as a member of the Board, then the Option (to the extent not previously
exercised) shall continue to be or shall become exercisable in accordance with its terms until the earlier of (i) five years after the Retirement Date or (ii) the expiration of the term of the Option; and to the extent not exercisable or not
exercised (if exercisable) by such applicable date, the Option shall terminate and be of no further force or effect. 
  
 6. Death. If the Optionee dies while the Option is unexercised (in whole or in part) and has been held by the Optionee for at least twelve months
as of the date of the Optionee’s death, then the Option automatically shall become exercisable in full (if not already exercisable) upon the Optionee’s death. If the Option becomes exercisable pursuant to the preceding sentence or already
was exercisable on the date of the Optionee’s death, then the Option may be exercised by the personal representative of the Optionee’s estate or by the beneficiaries of such estate to whom the Option is distributed until the earlier of (i)
three years after the date of the Optionee’s death or (ii) the expiration of the term of the Option; and to the extent not exercisable or not exercised (if exercisable) by such applicable date, the Option shall terminate and be of no further
force or effect. 
  

 2 

 7. Rights of Optionee. Neither the Optionee nor any other person having the right to exercise the
Option shall have any rights as a stockholder of the Company with respect to the shares of Common Stock of the Company subject to the Option until the issuance of a stock certificate to the Optionee or such other person for such shares in accordance
with the Plan. 
  
 8. Nonassignability of Option. Except as
provided in the following sentence, neither the Option nor any of the Optionee’s rights and interests under the Plan or this Agreement may be assigned or transferred by the Optionee in whole or in part either directly or by operation of law or
otherwise (except by will or the laws of descent and distribution in the event of the Optionee’s death); and neither the Option nor any of the Optionee’s rights and interests under the Plan or this Agreement may be pledged, encumbered, or
otherwise subjected to any obligation or liability of the Optionee. After giving at least thirty (30) days’ prior written notice to the Secretary of the Company, the Optionee may assign the Option in whole or in part to a Family Member or a
Family Entity at any time prior to the expiration, termination, or cancellation of the Option, subject to all of the terms and conditions of the Plan and this Agreement; provided, that any such assignment shall be in writing, and the Optionee
promptly shall deliver a copy of any such assignment to the Secretary of the Company. A Family Member or a Family Entity to whom the Option has been assigned pursuant to the preceding sentence also shall be subject to the restrictions, limitations,
and requirements contained in the first two sentences of this Paragraph 8. For purposes of this Paragraph 8, “Family Member” means only (i) the Optionee, (ii) a spouse, parent, child or more remote descendant, brother, sister, niece, or
nephew of the Optionee, and (iii) a spouse of a brother, sister, child, or more remote descendant of the Optionee. For purposes of this Paragraph 8, “Family Entity” means only (i) a corporation, partnership, or limited liability company
all of whose equity interests are owned by Family Members or other Family Entities and (ii) a trust or custodianship for the exclusive benefit of one or more Family Members (other than non-Family Member contingent beneficiaries whose rights arise
only if no Family Member beneficiary is living). Subject to the third and fourth sentences of Paragraph 2, the exercisability of the Option by a Family Member or a Family Entity to whom the Option has been assigned pursuant to this Paragraph 8 shall
be determined by reference to the Optionee’s membership on the Board as provided in Paragraphs 2, 4, 5, and 6. The Board shall have exclusive authority to determine whether an assignment or transfer of the Option is permitted by this Paragraph
8, and the decision of the Board with respect to such matter shall be binding and conclusive on the Company, the Optionee, and all other persons and entities. Without the prior approval of the Board, a Family Entity to which the Option has been
assigned pursuant to this Paragraph 8 shall not permit any non-Family Member to become a beneficial owner of an equity interest in or a beneficiary of such Family Entity (except by will or the laws of descent and distribution in the event of the
death of a Family Member); and if a Family Entity violates the foregoing provisions of this sentence, then the Board in its absolute discretion may terminate the Option effective as of the date on which such violation occurred. No Family Member or
Family Entity to whom the Option has been assigned shall have any greater rights with respect to the Option than the Optionee would have had if the Option had not been assigned. 
  
 9. No Right of Continued Service. Nothing in the Plan or in this Agreement shall confer upon the Optionee the right
to continue to be a member of the Board. 
  

 3 

 10. Interpretations. The Board shall have the authority to interpret the provisions of the Plan
and this Agreement and to decide all questions of fact and make all other determinations necessary or advisable for the administration of the Plan and this Agreement. Decisions and determinations of the Board on all matters relating to the Plan or
this Agreement shall be final and binding on all persons as provided in the Plan. The captions of the various paragraphs of this Agreement are for the purpose of convenient reference only and are not intended to define or limit the contents of such
paragraphs. Capitalized terms used in this Agreement, unless defined in this Agreement, shall have the meanings given to such terms in the Plan. 
  
 11. Waivers. The waiver by the Company of any provision of this Agreement shall not operate as or be construed to be a subsequent waiver of the
same provision or a wavier of any other provision of this Agreement. 
  
 12. Governing Law. The Plan and this Agreement shall be governed by and construed in accordance with the laws of Delaware. 
  
 13. Binding Effect. This Agreement shall be binding upon the Company, the Optionee, and their respective heirs, personal representatives,
successors, and assigns. However, nothing contained in this Paragraph 13 shall be construed to allow the Optionee to make any assignment which is otherwise prohibited by the Plan or this Agreement. 
  
 IN WITNESS WHEREOF, the Company and the Optionee have duly executed this
Agreement as of the date first above written. 
  

			
	 CSG SYSTEMS INTERNATIONAL,

	 INC., a Delaware corporation

		
	 By:
	 	  

	 Title:
	 	 Chairman of the Board and

	 	 	 Chief Executive Officer

	  
  

	                         , Optionee

  

 4Form of Amended and Restated Registration Rights Agreement

 Exhibit 10.11 
  

  
 AMENDED AND RESTATED 
 REGISTRATION RIGHTS AGREEMENT 
  
 CAMBRIDGE DISPLAY TECHNOLOGY, INC. 
  

Dated as of [                    ], 2004 

 

  

 Table of Contents 
  

					
	 	  	 	  	Page

	 1.
	  	 Registrations Upon Request.
	  	1
	 1.1
	  	 Request by Outside Investors.
	  	1
	 1.2
	  	 Registration Statement Form
	  	3
	 1.3
	  	 Expenses
	  	3
	 1.4
	  	 Priority in Demand Registrations
	  	3
	 1.5
	  	 No Company Initiated Registration
	  	4
			
	 2.
	  	 Incidental Registrations
	  	4
			
	 3.
	  	 Registration Procedures
	  	5
			
	 4.
	  	 Underwritten Offerings.
	  	10
	 4.1
	  	 Underwriting Agreement
	  	10
	 4.2
	  	 Selection of Underwriters
	  	11
			
	 5.
	  	 Holdback Agreements.
	  	12
			
	 6.
	  	 Preparation; Reasonable Investigation
	  	13
			
	 7.
	  	 No Grant of Future Registration Rights
	  	13
			
	 8.
	  	 Permitted Assignees
	  	13
			
	 9.
	  	 Indemnification.
	  	13
	 9.1
	  	 Indemnification by the Company
	  	13
	 9.2
	  	 Indemnification by the Sellers
	  	14
	 9.3
	  	 Notices of Claims, etc
	  	15
	 9.4
	  	 Other Indemnification
	  	16
	 9.5
	  	 Indemnification Payments
	  	16
	 9.6
	  	 Other Remedies
	  	16
			
	 10.
	  	 Representations and Warranties
	  	17
			
	 11.
	  	 Definitions
	  	17
			
	 12.
	  	 Miscellaneous.
	  	20
	 12.1
	  	 Rule 144, etc
	  	20
	 12.2
	  	 Successors, Assigns and Transferees
	  	20
	 12.3
	  	 Stock Splits
	  	20
	 12.4
	  	 Amendment and Modification
	  	20
	 12.5
	  	 Governing Law
	  	21
	 12.6
	  	 Invalidity of Provision
	  	21
	 12.7
	  	 Notices
	  	21
	 12.8
	  	 Headings; Execution in Counterparts
	  	22

 Table of Contents 
 (continued) 
  

					
	 	  	 	  	Page

	 12.9
	  	 Injunctive Relief
	  	22
	 12.10
	  	 Term
	  	22
	 12.11
	  	 Termination With Respect to Minority Investors
	  	22
	 12.12
	  	 Further Assurances
	  	23
	 12.13
	  	 Entire Agreement
	  	23
	 12.14
	  	 Additional Management Stockholders
	  	23

  
 Annex A: Cambridge Display Technology,
Inc. Minority Investors 
  

 ii 

 AMENDED AND RESTATED  
 REGISTRATION RIGHTS AGREEMENT 
  
 AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT, dated as of [            ], 2004, among Cambridge Display Technology, Inc. (formerly named CDT Acquisition Corp.), a Delaware
corporation (the “Company”), Kelso Investment Associates VI, L.P., a Delaware limited partnership (“KIA VI”), KEP VI, LLC, a Delaware limited liability company (“KEP VI”, and, together with KIA VI, “Kelso”),
Hillman Capital Corporation, a Delaware corporation (“Hillman Capital”), Hillman CDT LLC, a Delaware limited liability company, and Hillman CDT 2000 LLC, a Delaware limited liability company (collectively, “HCDT”, and, together
with Hillman Capital, “Hillman”, and, together with Kelso, the “Outside Investors”), and those employees of the Company or its subsidiaries who may become parties to this Agreement from time to time (collectively, the
“Management Stockholders”, and, together with Kelso, HCDT and any other persons who become parties to this Agreement from time to time, the “Stockholders”). Capitalized terms used herein without definition are defined in Section
11. 
  
 WHEREAS, certain parties hereto were previously party to a
Registration Rights Agreement, dated as of July 27, 1999, as amended as of July 25, 2000, December 29, 2000 and August 23, 2001 (the “Registration Rights Agreement”); and 
  
 WHEREAS, in connection with the consummation of the underwritten initial public offering of shares of Common Stock, the
parties hereto wish to amend and restate 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 Request by Outside Investors. 
  
 (a) Kelso and Hillman Capital (each, a “Requesting Stockholder”)
shall each have the right to make up to 5 separate requests that the Company effect the registration under the Securities Act of all or a portion of the Registrable Securities owned by the Kelso Investors or the Hillman Investors, as the case may
be, each such request to specify the intended method or methods of disposition thereof (which may include disposition in a Rule 415 Offering at any time at which the Company is eligible to effect a Rule 415 Offering), provided that the
Company shall not be required to effect a registration pursuant to this Section 1.1 during: (i) the 270-day period following the effective date of the registration statement in connection with the IPO and (ii) the 180-day period 

 following the effective date of the most recent registration previously effected pursuant to this Section 1.1. A request
made by a Requesting Stockholder shall not be counted for purposes of the request limitations set forth above (a) if such Requesting Stockholder determines in its good faith judgment to withdraw the proposed registration of any Registrable
Securities requested to be registered pursuant to this Section 1.1 due to marketing or regulatory reasons, (b) the registration statement relating to any such request is not declared effective within 90 days of the date such registration
statement is first filed with the Commission, (c) if, within 180 days after the registration relating to any such request has become effective, such registration is interfered with by any stop order, injunction or other order or requirement
of the Commission or other governmental agency or court for any reason and the Company fails to have such stop order, injunction or other order or requirement removed, withdrawn or resolved to such Requesting Stockholder’s reasonable
satisfaction within 30 days, (d) if more than 10% of the Registrable Securities requested by such Requesting Stockholder to be included in the registration are not so included pursuant to Section 1.4, or (e) the conditions to closing
specified in the underwriting agreement or purchase agreement entered into in connection with the registration relating to any such request are not satisfied (other than as a result of a default or breach thereunder by such Requesting Stockholder).
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 such Requesting Stockholder, 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 20 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
each seller of such Registrable Securities. 
  
 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 an adverse effect on 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, and ending on the later of (i) a date 60 days following the effective date of the registration 
  

 2 

 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 furnish to each seller of Registrable Securities a certificate (a “Referral Certificate”)
signed by the President of the Company stating that the Company has pending or in process a material transaction (including a financing transaction), the disclosure of which would, in the good faith judgment of the Board, materially and adversely
affect the Company, the Company may defer the filing (but not the preparation) of a registration statement 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) provided that the Company shall not be permitted to defer the filing of registration statements pursuant to this clause (b) more than once in any 180 day period. 
  
 (b) Any rights exercisable by the Hillman Investors under this Section shall
be exercisable solely by Hillman Capital. The Company shall be entitled to deal exclusively with the party or parties having the right to act on behalf of the Hillman Investors at any given time and to rely on its or their consent, waiver or other
action as the consent, waiver and other action of all of the Hillman Investors. 
  
 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 the Requesting Stockholder. 
  
 1.3 Expenses. The Company will pay all Registration Expenses in
connection with any registration requested under Section 1.1; provided that each seller of Registrable Securities shall pay all Registration Expenses to the extent required to be paid by such seller under applicable law. 
  
 1.4 Priority in Demand Registrations. If a registration pursuant to
Section 1.1 involves an underwritten offering, and the 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 will 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 the Kelso Investors, the Hillman Investors and the Minority Investors, on a pro rata basis (based on the number of shares of Registrable Securities owned by such Person), second, the securities, if any, being sold
by the 
  

 3 

 Company and third, the securities, if any, being sold by the Management Stockholders on a pro rata
basis (based on the number of shares of Registrable Securities owned by such Management Stockholders). 
  
 1.5 No Company Initiated Registration. After receipt of notice of a requested registration pursuant to Section 1.1, the Company shall not initiate,
without the consent of the Requesting Stockholder, a registration of any of its securities for its own account until 90 days after such registration has been effected or such registration has been terminated. 
  
 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 (other than pursuant to a registration on Form S-4 or S-8 or any successor form) and (i) Kelso or Hillman Capital has requested that the Company include
Registrable Securities owned by any Kelso Investor or Hillman Investor, as the case may be, in such registration or (ii) the Kelso Investors and the Hillman Investors no longer own any Registrable Securities, the Company will give prompt
written notice to all holders of Registrable Securities regarding such proposed registration. Upon the written request of any such holder made within 20 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 will use its best efforts to effect the registration under the Securities Act of such Registrable Securities on a pro
rata basis (based on the number of shares of Registrable Securities owned by such requesting holder) in accordance with such intended method or methods of disposition, provided that: 
  
 (a) if such registration shall be in connection with an IPO, (i) the
Company shall not include any Registrable Securities in such proposed registration if the Board shall have determined, after consultation with the managing underwriter for such offering, that it is not in the best interests of the Company to include
any Registrable Securities in such registration and (ii) the Company shall not include any Registrable Securities of the Management Stockholders in such proposed registration if it believes in good faith that inclusion of such securities
would not be in the best interests of the Company, provided that the Company will include in such registration that number of Registrable Securities of the Management Stockholders that such managing underwriter and the Company determine would
not be adverse to the best interests of the Company; 
  
 (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 the Requesting Stockholders to request that a registration be effected under Section
1.1; and 
  

 4 

 (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,
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, then in the case of
any registration pursuant to this Section 2, the Company will 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, second, the Registrable Securities of the Kelso Investors, the Hillman Investors and the Minority Investors, on a pro rata basis (based on the number of shares of Registrable Securities owned
by each such Person), and third, the Registrable Securities of the Management Stockholders, on a pro rata basis (based on the number of shares of Registrable Securities owned by each such Management Stockholder). 
  
 Notwithstanding the foregoing, the Management Stockholders will not be
entitled to participate in any 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 and
in writing (with a copy to each affected Person requesting registration of Registrable Securities) that the participation of any such Management Stockholder would adversely affect the marketability or offering price of the securities being sold by
the Company in such registration. 
  
 The Company will 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 all Registration Expenses to the extent required to be
paid by such seller under applicable law. No registration effected under this Section 2 shall relieve the Company from its obligation to effect registrations under Section 1.1. 
  
 3. Registration Procedures. If and whenever the Company is required to use its best efforts to effect the
registration of any Registrable Securities under the Securities Act as provided in Sections 1.1 and 2, the Company will 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; 
  

 5 

 (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 in no event for a period of more than six months in the case of an underwritten public
offering (or such longer period of time as may be required by the managing underwriter), and for a period of 45 days in all other cases, after such registration statement becomes effective (which period shall be extended, in the case of a Rule 415
Offering for so long as sales of Registrable Securities have been suspended pursuant to Section 3(j)); 
  
 (c) furnish copies of all documents proposed to be filed with the Commission in connection with such registration to (i) in the case of a
registration pursuant to Section 1.1 or Section 2 in which any Kelso Investors but no Hillman Investors are participating, counsel selected by Kelso, (ii) in the case of a registration pursuant to Section 1.1 or Section 2 in which any Hillman
Investors but no Kelso Investors are participating, counsel selected by Hillman Capital, (iii) in the case of a registration pursuant to Section 1.1 or Section 2 in which at least one Kelso Investor and at least one Hillman Investor is
participating, counsel mutually acceptable to both Kelso and Hillman Capital and (iv) in the case of a registration pursuant to Section 2 in which no Kelso Investors nor any Hillman Investors are participating, counsel selected by the holders
of at least 51% of the Registrable Securities proposed to be sold in connection with such registration (such holders, the “Majority Holders”), and such documents shall be subject to the review of such counsel and Kelso, Hillman Capital or
the Majority Holders, as the case may be, and the Company shall not file any amendment or post-effective amendment or supplement to such registration statement or the prospectus used in connection therewith to which either such counsel or Kelso,
Hillman Capital or the Majority Holders, as the case may be, shall have reasonably objected in writing on the grounds that such amendment or supplement does not comply (explaining why) in all material respects with the requirements of the Securities
Act or of the rules or regulations thereunder, provided, however, that in no event shall Hillman or Kelso, as the case may be, have any right pursuant to this clause (c) if, at the time the registration is requested pursuant to Section
1.1 or the Company provides written notice of the proposed registration pursuant to Section 2, the Kelso Investors (in the case of Kelso) or the Hillman Investors (in the case of Hillman) own less than 10% of the number of shares of Common Stock
they own on the date hereof, unless either Hillman or Kelso is the Requesting Stockholder with respect to a registration pursuant to Section 1.1 in which event they will be entitled to such right notwithstanding this proviso; 
  
 (d) furnish to each seller of Registrable Securities, without charge, such
number of conformed copies of such registration statement and of each such amendment 
  

 6 

 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) furnish to each seller of Registrable Securities a signed counterpart,
addressed to the sellers, of 
  
 (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 issuer’s counsel and in accountants’ letters delivered to the underwriters in
underwritten public offerings of securities and such other matters as Kelso, Hillman Capital or the Majority Holders, as the case may be, may reasonably request; 
  
 (h) subject to Section 3(j) below, 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, and, as promptly as is
practicable, 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 in a Rule 415 Offering that the Company has a pending or in
process material transaction (including a financing transaction) or other material development, the disclosure of which would, in the good faith judgment of the Board, materially and adversely affect the Company, whereupon the holders of Registrable
Securities being sold in such Rule 415 Offering shall suspend sales of such Registrable Securities beginning on the date of receipt of such notice and expiring on the date upon which such information is disclosed to the public or ceases to be
material, as evidenced by a notice from the Company to such holders to that effect; provided, however, that such deferral shall in no event be for a period of more than 90 days; 
  
 (k) 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 
  

 8 

 issuance by the Commission of any stop order suspending the effectiveness of such registration statement or the
initiation of any 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; 
  
 (l) 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; 
  
 (m) 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 a 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; 
  
 (n) 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; 
  
 (o) furnish to any seller of such Registrable Securities such information and assistance as such holder may reasonably request in connection with any
“due diligence” effort which such seller deems appropriate; and 
  
 (p) 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 furnish to the Company such information regarding such seller, its ownership of Registrable Securities and the disposition of such Registrable 
  

 9 

 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 seller of any Registrable Securities covered thereby by name, or otherwise identifies such
seller as the holder of any Registrable Securities, without the consent of such seller, such consent not to be unreasonably withheld or delayed, unless such disclosure is required by law. 
  
 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(b) 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) following the effectiveness of the post-effective amendment in which such supplemental or amended prospectus
is included. 
  
 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, 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 (i) to Kelso in the case of a registration requested pursuant to Section 1.1 or Section 2 in which any Kelso Investors but no Hillman Investors are participating, (ii) to Hillman Capital in the case of a
registration requested pursuant to Section 1.1 or Section 2 in which any Hillman Investors but no Kelso Investors are participating, (iii) to both Kelso and Hillman Capital in the case of a registration requested pursuant to Section 1.1 or
Section 2 in which at least one Hillman Investor and at least one Kelso Investor is participating or (iv) to the Majority Holders in all other cases, provided, however, that in 
  

 10 

 no event shall Hillman or Kelso, as the case may be, have any rights pursuant to the foregoing clauses (i) through (iii)
if, at the time the registration is requested pursuant to Section 1.1 or the Company provides written notice of the proposed registration pursuant to Section 2, the Kelso Investors (in the case of Kelso) or the Hillman Investors (in the case of
Hillman) own less than 10% of the outstanding shares of Common Stock, unless either Hillman or Kelso is the Requesting Stockholder with respect to a registration pursuant to Section 1.1 in which event they will be entitled to such rights
notwithstanding this proviso. Any such underwriting agreement shall contain such representations and warranties by the Company and such other terms and provisions as are customarily contained in agreements of this type, including, without
limitation, indemnities to the effect and to the extent provided in Section 9. The holders of Registrable Securities to be distributed by such underwriter shall be parties to such underwriting agreement and may, at their 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 holders 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 holders of Registrable Securities. No underwriting agreement (or other agreement in connection with
such offering) shall require the Kelso Investors, the Hillman Investors, any Minority Investor or any Management Stockholder, in their respective capacities as stockholders and/or controlling persons, 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 9.2. 
  
 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 the Kelso
Investors at such time own at least 10% of the outstanding shares of Common Stock, only with the approval of Kelso or if the Hillman Investors at such time own at least 10% of the outstanding shares of Common Stock, only with the approval of Hillman
Capital, in each case, 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, the Requesting Stockholder will have the right
to select the managing underwriter (which shall be of nationally recognized standing) who will be selected to administer the offering, (i) in the case of a Registration Statement in which Kelso is the Requesting Stockholder and at least one Hillman
Investor is participating, jointly by both Kelso and Hillman Capital, (ii) in the case of a registration in which Hillman Capital is the Requesting Stockholder and at least one Kelso Investor is participating, jointly by Hillman Capital and Kelso,
(iii) in the case of a registration in 
  

 11 

 which Kelso is the Requesting Stockholder and no Hillman Investors are participating, by Kelso, (iv) in the case of a
registration in which Hillman Capital is the Requesting Stockholder and no Kelso Investors are participating, by Hillman Capital, but in each case 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 on Form S-4 or S-8 or any successor form) 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: 
  
 (i) not to effect any public 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: (x) for 270 days after the effective date of the registration statement in connection with the IPO; and (y) within seven days prior to and 90 days (unless, in the case of
any holder of Registrable Securities other than a Minority Investor, advised in writing 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 the registration statement relating to such registration, except as part of such registration; and 
  
 (ii) to enter into a similar holdback agreement with the managing underwriter for any underwritten offering if so requested by such
underwriter. 
  
 (b) The Company agrees not to effect any public
sale or distribution or any sale or distribution pursuant to Rule 144A or Regulation S under the Securities Act 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 (unless advised in writing 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
any registration statement filed pursuant to Section 1.1 (except as part of such registration or pursuant to a registration on Form S-4 or S-8 or any successor form). In addition, the Company shall use its best efforts to cause each holder 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 a similar agreement
to such effect with the Company. 
  

 12 

 6. Preparation; Reasonable Investigation. In connection with the preparation and filing of each
registration statement registering Registrable Securities under the Securities Act, the Company will give the holders of such Registrable Securities so to be registered and their underwriters, if any, and their respective counsel and accountants 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 will give each of them such access to the financial
and other records, pertinent corporate documents and properties of the Company and its subsidiaries and such 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 as shall be reasonably requested by such holders in connection with such registration statement. 
  
 7. No Grant of Future Registration Rights. The Company shall not grant any other demand or incidental registration rights to any other Person
without the prior written consent of each Outside Investor, so long as the Outside Investors, together with their Permitted Assignees, continue to own at least 15% of the number of shares of Common Stock that the Outside Investors own on the date
hereof; provided that the Outside Investors will not grant any such consent unless the Minority Investors have the same right (if any), on a pro rata basis (based on the number of shares of Registrable Securities owned by each
such Stockholder), as the Outside Investors and their Permitted Assignees to include Registrable Securities in any such registration. During the term of this Agreement, the Company shall not grant to any third party incidental registration rights
that are of a higher priority to the rights granted to the holders of Registrable Securities under Section 2 hereof. 
  
 8. Permitted Assignees. Notwithstanding the definition of the term “Registrable Securities,” each of the Outside Investors shall have the
right to have included in any registration pursuant to Section 1.1 or 2 any shares of Common Stock owned by any of their Permitted Assignees and such shares shall be deemed Registrable Securities that shall be considered owned by such Outside
Investors for purposes of the “cut-back” provisions applicable to such registration. 
  
 9. Indemnification. 
  
 9.1 Indemnification by the Company. In the event of any registration of any Registrable Securities pursuant to this Agreement, the Company will 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 against any and all losses, claims, damages or liabilities (or actions or proceedings in respect
thereof), 
  

 13 

 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 expressly for use in the preparation thereof. 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 9.1 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). 
  
 9.2 Indemnification by the Sellers. The Company may require, as a condition to including Registrable Securities of
any prospective seller in any registration statement filed pursuant to Section 1.1 or 2 that the Company shall have received an undertaking satisfactory to it from such prospective seller of Registrable Securities to indemnify and hold harmless,
severally, not jointly, in the same manner and to the same extent as set forth in Section 9.1, 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. 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 9.2 shall not 
  

 14 

 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 Company and the holders of Registrable Securities hereby acknowledge and agree that for all purposes of this Agreement the only
information furnished or to be furnished to the Company for use in any such registration statement, preliminary prospectus, final prospectus, summary prospectus, amendment or supplement 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. The
indemnity provided by each seller of Registrable Securities under this Section 9.2 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. 
  
 9.3 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 9, such indemnified party will, 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 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 9, 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 will 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 no more than one 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 or delayed, 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. 
  

 15 

 9.4 Other Indemnification. Indemnification similar to that specified in the preceding paragraphs
of this Section 9 (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. 
  
 9.5 Indemnification Payments. Any indemnification required to be made by an indemnifying party pursuant to this Section 9 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. 
  
 9.6 Other Remedies. If for any reason the foregoing indemnity 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 expenses in such proportion as is appropriate to reflect the relative faults of the indemnifying party on the one hand and the indemnified party on the other in connection with the
offering of Registrable Securities. If, however, the allocation provided by the immediately preceding sentence 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 expenses in such proportion as is appropriate to reflect the relative
benefits to the indemnifying party on the one hand and the indemnifying party on the other in connection with the offering of Registrable Securities (taking into account the portion of the proceeds of the offering realized by such party). 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. No party shall be liable for contribution under this Section 9.6 except to the
extent as such party would have been liable to indemnify under this Section 9 if such indemnification were enforceable under applicable law. 
  

 16 

 10. Representations and Warranties. Each Stockholder represents and warrants to the Company and
each other Stockholder that: 
  
 (i) 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; 
  
 (ii) 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; 
  
 (iii) 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 
  
 (iv) 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 (A) any material contract, commitment or other material instrument to which such Stockholder is
a party or by which such Stockholder is bound or (B) 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. 
  
 11. Definitions. For purposes of this Agreement, the following terms shall have the following respective meanings: 
  
 Affiliate: with respect to a specified Person, any Person that
directly or indirectly controls, is controlled by, or is under common control with the specified person. As used in this definition, the term “control” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a person, whether through ownership of voting securities, by contract or otherwise. 
  
 Board: the board of directors of the Company. 
  
 By-Laws: the By-Laws of the Company, as in effect from time to time. 
  
 Commission: the Securities and Exchange Commission. 
  
 Common Stock: the Common Stock of the Company, par value $.01 per share. 
  

 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. 
  
 Hillman: as defined in the preamble hereto. 
  
 Hillman Investors: Hillman Capital Corporation, Hillman CDT LLC, Hillman CDT 2000 LLC, Hillman Capital Management LLC, Hillman Capital Management 2000 LLC and their respective Affiliates. 
  
 IPO: means 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 $20 million and after which an established trading market exists for the Common Stock. 

 
 Kelso: as defined in the preamble hereto. 
  
 Kelso Investors: KEP VI, KIA VI, their respective Affiliates and any
Kelso Designee. 
  
 Kelso Designees: board members of Kelso
& Companies, Inc., the Louis & Patricia Kelso Trust, officers and directors of any current or former Kelso & Co. portfolio company, any other Persons designated by Kelso and any permitted transferee of any such Person. 

 
 Majority Holders: as defined in Section 3(c). 
  
 Management Stockholders: as defined in the preamble hereto.

  
 Minority Investors: the persons set forth on Annex A
hereto. 
  
 NASD: National Association of Securities
Dealers, Inc. 
  
 NASDAQ: the Nasdaq National Market.

  
 Permitted Assignee: (i) in the case of Kelso, any Kelso
Investor, and (ii) in the case of HCDT, any Hillman Investor. 
  
 Permitted Transferee: as defined in Section 12.2. 
  
 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.

  

 18 

 Registrable Securities: the shares of Common Stock beneficially owned (within the meaning of Rule
13d-3 of the Exchange Act) by the Kelso Investors, the Hillman Investors, the Minority Investors, the Management Stockholders or the Permitted Transferees. 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) they shall have been sold to the public pursuant to Rule 144 under the Securities Act, (iii) 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, (iv) following the applicable holdback period pursuant to Section 5 hereof following the effective date of the first Secondary Offering
Registration Statement after the IPO, such securities may be offered and sold to the public in the United States without a registration statement pursuant to Rule 144(k) (or any successor rule or regulation) promulgated under the Securities Act or
(v) they shall have ceased to be outstanding. 
  
 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 any one counsel retained by the sellers of Registrable Securities, which counsel shall be designated in
the manner specified in Section 3 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. 
  
 Rule 415 Offering: an offering pursuant to a “shelf”
registration pursuant to Rule 415 under the Securities Act, or any successor rule or regulation to similar effect. 
  
 Secondary Offering Registration Statement: a registration statement, other than the registration statement declared effective in connection with an
IPO, filed by the Company to register any of its equity securities under the Securities Act for its own account (other than on Form S-4 or S-8 or any successor form) or filed to effect the registration of any Registrable Securities under the
Securities Act pursuant to Section 1.1 or 2. 
  
 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. 
  

 19 

 12. Miscellaneous. 
  
 12.1 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 will 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 will 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 will deliver to such holder a written statement as to whether it has complied with such requirements. 
  
 12.2 Successors, Assigns and Transferees. This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns under this Section 12.2. Provided that an express assignment shall have been made, a copy of which shall have been delivered to the
Company, 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 subsequent holder of any Registrable Securities (“Permitted Transferees”).
Notwithstanding anything herein to the contrary, the Management Stockholders shall 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. 
  
 12.3 Stock Splits. Each holder of Registrable Securities agrees that
it will vote to effect a stock split or combination with respect to any Registrable Securities in connection with any registration of any Registrable Securities hereunder, or otherwise, if 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 or combination would facilitate or increase the likelihood of success of the offering.
The Company shall cooperate in all respects in effecting any such stock split or combination. 
  
 12.4 Amendment and Modification. This Agreement may be amended, modified or supplemented by the Company with the written consent of (i) each of Kelso and Hillman Capital and (ii) a majority (by
number of shares) of any other holders of Registrable Securities whose interests would be adversely affected by such amendment, provided that (A) in the event the Management Stockholders are adversely affected by 
  

 20 

 such amendment, such amendment will require the consent of a majority (by number of shares) of the Management
Stockholders and (B) all Stockholders shall be notified of such amendment, modification or supplement. 
  
 12.5 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 law of the State of Delaware, without giving effect to the choice of law principles thereof. 
  
 12.6 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. 
  
 12.7 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 telecopy or telegram, as follows: 
  
 (i) If to the Company, to it at: 
  
 Cambridge Display Technology, Inc. 
 Madingley Rise 
 Madingley Road 
 Cambridge CB3 0TX 
 England 
 Fax: 011-44-1223-723-503 
 Attention: Stephen Chandler 
  
 with a copy to Hillman Capital and to Kelso at their addresses set forth
below. 
  
 (ii) If to a Management Stockholder, to his or her
attention at the address of the Company set forth above. 
  
 (iii)
If to Hillman, to it at: 
  
 Hillman Capital Corporation

 313 West 80th Street 
 New
York, New York 10022 
 Fax: 212-874-9347 
 Attention: Gerald Paul Hillman 
  

 21 

 (iv) If to Kelso, to it at: 
  
 Kelso & Company 
 350 Park Avenue, 21st Floor 
 New York, New York 10022 
 Fax: 212-223-2379 
 Attention: James J.
Connors 
  
 with a copy to: 
  
 Debevoise & Plimpton LLP 
 919 Third Avenue 
 New York, New York 10022

 Fax: 212-909-6836 
 Attention: Richard D. Bohm 
  
 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 telecopy or telegram, on the next day following the
day on which such telecopy or telegram was sent, provided that a copy is also sent by certified or registered mail. 
  
 12.8 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. 
  
 12.9 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. 
  
 12.10 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.

  
 12.11 Termination With Respect to Minority Investors.
Following the applicable holdback period pursuant to Section 5 hereof following the effective date of the first 
  

 22 

 Secondary Offering Registration Statement after the IPO, this agreement shall automatically terminate with respect to all
Minority Investors and no Minority Investor shall have any further rights or obligations under this Agreement; provided that, following such termination, the Company will continue to take action as any Minority Stockholder may reasonably
request from time to time, to enable such Minority Stockholder to sell shares of Common Stock 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. 
  
 12.12 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. 
  
 12.13 Entire Agreement. This Agreement is intended by the parties
hereto as a final expression of their agreement and intended to be a complete and exclusive statement of their agreement and understanding in respect of the subject matter contained herein. This Agreement supersedes all prior agreements and
understandings between the parties with respect to such subject matter. 
  
 12.14 Additional Management Stockholders. Notwithstanding anything in this Agreement to the contrary, the Company may from time to time admit additional Management Stockholders to this Agreement, provided that (a) any such
Management Stockholder(s) holds Registrable Securities and (b) has executed and delivered a joinder agreement and such other agreements or documents as may reasonably be requested by the Company. Notwithstanding anything in this Agreement to
the contrary, any amendment to the Registration Rights Agreement that would adversely affect the interests of a Management Stockholder who is a Management Stockholder as of the date of this Agreement shall not be binding on such Management
Stockholder unless either (x) such Management Stockholder consents to such amendment or (y) a majority (by number of shares) of the Management Stockholders who are Management Stockholders as of the date of this Agreement consent to
such amendment. 
  

 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. 
  

			
	 CAMBRIDGE DISPLAY TECHNOLOGY, INC.

		
	 By:
	 	  

	 Name:
	 	 David Fyfe

	 Title:
	 	 Chief Executive Officer

	
	 KELSO INVESTMENT ASSOCIATES VI, L.P.

		
	 By:
	 	 Kelso GP VI, LLC,

	 	 	 its general partner

		
	 By:
	 	  

	 Name:
	 	 Philip E. Berney

	 Title:
	 	 Managing Member

	
	 KEP VI, LLC

		
	 By:
	 	  

	 Name:
	 	 Philip E. Berney

	 Title:
	 	 Managing Member

  

 i 

			
	 HILLMAN CAPITAL CORPORATION

		
	 By:
	 	  

	 Name:
	 	 Gerald Paul Hillman

	 Title:
	 	 Managing Director

	
	 HILLMAN CDT LLC

		
	 By:
	 	 HILLMAN CAPITAL MANAGEMENT LLC,

	 	 	 its managing member

		
	 By:
	 	  

	 Name:
	 	 Gerald Paul Hillman

	 Title:
	 	 Managing Director

	
	 HILLMAN CDT 2000 LLC

		
	 By:
	 	 HILLMAN CAPITAL MANAGEMENT 2000 LLC,
 its managing member

		
	 By:
	 	  

	 Name:
	 	 Gerald Paul Hillman

	 Title:
	 	 Managing Director

  

 ii 

 ANNEX A 
  
 [List of the Minority Investors of Cambridge Display Technology, Inc.]

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