SEC Contract Filing

Filing Date: 2022-10-13

Document Content:
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<TYPE>EX-10.3
<SEQUENCE>5
<FILENAME>d405969dex103.htm
<DESCRIPTION>EX-10.3
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<TITLE>EX-10.3</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.3 </B></P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SUPPORT AGREEMENT </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This
Support Agreement (this &#147;<U>Agreement</U>&#148;), dated as of October&nbsp;11, 2022, is entered into by and among KnowBe4, Inc., a Delaware corporation (the &#147;<U>Company</U>&#148;), Elephant Partners I LP, Elephant Partners II LP for
Elephant Partners <FONT STYLE="white-space:nowrap">II-B</FONT> LP and Elephant Partners 2019 <FONT STYLE="white-space:nowrap">SPV-A</FONT> LP (collectively the &#147;<U>Stockholder</U>&#148;) and Oranje Holdco, LLC, a Delaware limited liability
company (&#147;<U>Parent</U>&#148;). Capitalized terms used but not defined herein shall have the meanings given to them in the Merger Agreement (as defined below). </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>RECITALS </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS,
concurrently with the execution and delivery of this Agreement, (i)&nbsp;the Company, (ii)&nbsp;Parent and (iii)&nbsp;Oranje Merger Sub, Inc., a Delaware corporation and a wholly owned Subsidiary of Parent (&#147;<U>Merger Sub</U>&#148;), will enter
into an Agreement and Plan of Merger (as may be amended from time to time, the &#147;<U>Merger Agreement</U>&#148;), which provides for the merger of Merger Sub with and into the Company (the &#147;<U>Merger</U>&#148;) with the Company surviving the
Merger as a wholly owned subsidiary of Parent; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, as of the date hereof, the Stockholder is the record and/or &#147;beneficial
owner&#148; (within the meaning of Rule <FONT STYLE="white-space:nowrap">13d-3</FONT> under the Exchange Act) of the number of shares of Class&nbsp;A Common Stock, par value $0.00001 per share, of the Company (the &#147;<U>Class</U><U></U><U>&nbsp;A
Common Stock</U>&#148;) and the number of shares of Class&nbsp;B Common Stock, par value $0.00001 per share, of the Company (the &#147;<U>Class</U><U></U><U>&nbsp;B Common Stock</U>&#148;) (the Class&nbsp;A Common Stock and Class&nbsp;B Common
Stock, collectively, the &#147;<U>Common Stock</U>&#148;) set forth opposite such Stockholder&#146;s name on <U>Exhibit A</U> hereto under the heading &#147;Owned Shares&#148;, being all of the shares of Common Stock owned of record or beneficially
by the Stockholder as of the date hereof (the &#147;<U>Owned Shares</U>&#148;); </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, it is anticipated that each Stockholder will
contribute and transfer to an entity that indirectly owns 100% of the equity interests of Parent (&#147;<U>Topco</U>&#148;) the number of Owned Shares set forth opposite such Stockholder&#146;s name on <U>Exhibit A</U> hereto under the heading
&#147;Rollover Shares&#148; (such shares the &#147;<U>Rollover Shares</U>&#148;), with the specific Rollover Shares designated by such Stockholder, which Rollover Shares otherwise would be converted into the right to receive the Per Share Price in
cash (the aggregate amount of the Per Share Price that would have been payable in respect of the Rollover Shares but for their classification as excluded shares as a result of the transactions contemplated hereby, the &#147;<U>Rollover
Amount</U>&#148;) to Topco on the Closing Date and immediately prior to the Effective Time (the &#147;<U>Exchange Time</U>&#148;), in exchange for a number of newly issued equity interests of Topco (of the same class and series as the equity
interests to be issued to Vista Equity Partners Fund VII, L.P. and Vista Equity Partners Fund VIII, L.P. (or their applicable affiliates) (collectively, the &#147;<U>Sponsor</U>&#148;) in connection with the Closing (the &#147;<U>Sponsor
Shares</U>&#148;)) with an aggregate value (based on the same per share price paid by the Sponsor for the Sponsor Shares) equal to the Rollover Amount (the &#147;<U>Exchange Shares</U>&#148;); and </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, it is intended that for U.S. federal (and applicable state and local) tax purposes, the contribution of Rollover Shares to Topco
(which will be treated as a domestic corporation for U.S. federal income tax purposes as of the Effective Time) in exchange for Exchange Shares, in conjunction with Sponsor&#146;s contributions of cash and or equity in exchange for the Sponsor
Shares (the &#147;<U>Sponsor Contributions</U>&#148;) and any other contributions of cash or equity </P>
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by the Reinvestment Shareholders other than the Stockholder (the &#147;<U>Other Investors</U>&#148;) in exchange for equity interests of Topco (the &#147;<U>Other Investor
Contributions</U>&#148;), shall be treated for U.S. federal, and applicable state and local, income tax purposes as an exchange of property for stock under Section&nbsp;351(a) of the Internal Revenue Code of 1986, as amended (the
&#147;<U>Code</U>&#148;); and </P> <P STYLE="margin-top:12pt; margin-bottom:0pt