SEC Contract Filing

Filing Date: 2015-02-27

Document Content:
<DOCUMENT>
<TYPE>EX-10.21
<SEQUENCE>5
<FILENAME>d861802dex1021.htm
<DESCRIPTION>EX-10.21
<TEXT>
<HTML><HEAD>
<TITLE>EX-10.21</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Exhibit 10.21 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>RIGHT OF FIRST OFFER AGREEMENT </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B></B>THIS RIGHT OF FIRST OFFER AGREEMENT
(the &#147;<B>Agreement</B>&#148;) is made as of the 24th day of February 2015 by and among Benefitfocus, Inc., a Delaware corporation (the &#147;<B>Company</B>&#148;), Mercer LLC, a Delaware limited liability company (&#147;<B>Mercer</B>&#148;), GS
Capital Partners VI Parallel, L.P., a Delaware limited partnership (&#147;<B>GS Parallel</B>&#148;), GS Capital Partners VI GmbH&nbsp;&amp; Co. KG, a German limited partnership (&#147;<B>GS GmbH</B>&#148;), GS Capital Partners VI Fund, L.P., a
Delaware limited partnership (&#147;<B>GS Main</B>&#148;), GS Capital Partners VI Offshore Fund, L.P., a Cayman Islands limited partnership (&#147;<B>GS Offshore</B>&#148;, and each of GS Parallel, GS GmbH, GS Main and GS Offshore, a &#147;<B>GS
Fund</B>&#148;), Oak Investment Partners XII, Limited Partnership, a Delaware limited partnership (the &#147;<B>Oak Fund</B>&#148;), and the Key Holders listed on Schedule B.<B> </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, each Investor and Key Holder is the legal owner of the number of shares of Capital Stock, or of options to purchase Common
Stock, set forth opposite the name of such Investor on Schedule A or the name of such Key Holder on Schedule B, as applicable; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B></B>WHEREAS, on the date hereof, the Company and Mercer are entering into a Securities Purchase Agreement (the &#147;<B>Securities
Purchase Agreement</B>&#148;), pursuant to which the Company has agreed to issue and sell, and Mercer has agreed to purchase, on the terms and subject to the conditions set forth therein, the number of shares of Common Stock set forth therein;
and<B> </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, in connection with the transactions contemplated by the Securities Purchase Agreement, the parties hereto
desire to enter into this Agreement with respect to the matters set forth herein. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">NOW, THEREFORE, the Company, Mercer, the
Key Holders and the Investors agree as follows: </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">ARTICLE 1 </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">D<SMALL>EFINITIONS</SMALL> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B></B>&#147;<B>Affiliate</B>&#148; means, with respect to any Person, any other Person directly or indirectly controlling, controlled by or under common control with such Person. For the purpose of this
definition, the term &#147;<B>control</B>&#148; (including, with correlative meanings, the terms &#147;<B>controlling</B>&#148;, &#147;<B>controlled by</B>&#148; and &#147;<B>under common control with</B>&#148;), as used with respect to any Person,
means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. For the avoidance of doubt,
(i)&nbsp;any account or any fund that is managed or advised by an Affiliate of a Person shall be an Affiliate of such Person and (ii)&nbsp;accounts or funds that are managed or advised by the same Person or by Persons who are Affiliates shall be
Affiliates of each other. Notwithstanding the foregoing, an operating company (or any of its subsidiaries) that is controlled by a fund or account managed or advised by a Person, or Affiliates of such Person, shall not be deemed an Affiliate of such
Person. <B> </B></FONT></P>

<p Style='page-break-before:always'>
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;<B>Alliance Agreement</B>&#148; means the Mercer Exchange Software as a Service
Agreement, dated as of April&nbsp;1, 2013, between the Company and Mercer Health&nbsp;&amp; Benefits LLC, a Delaware limited liability company, and amended through the date hereof, including all exhibits, schedules and annexes thereto, and as
amended and/or restated from time to time. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;<B>beneficial owner</B>,&#148; &#147;<B>beneficially owns</B>,&#148;
&#147;<B>beneficial ownership</B>&#148; and terms of similar import have the meaning set forth in Rule 13d-3 under the Securities Exchange Act of 1934, as amended, (i)&nbsp;assuming the full conversion into, and exchange and exercise for, shares of
Common Stock of all shares of Capital Stock beneficially owned by the applicable Person and (ii)&nbsp;determined without regard for the number of days in which such Person has the right to acquire such beneficial ownership. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;<B>Bus