Exhibit 10.1
Execution Version
SUPPORT AGREEMENT
This
Support Agreement (this “Agreement”), dated as of February 27, 2023, is entered into by and among the
undersigned stockholders of the Company (the “Stockholders”), Ferdinand FFP Ultimate Holdings, LP, a Delaware limited
partnership (“Topco Aggregator”), Ferdinand FFP Parent, Inc., a Delaware corporation and a direct, wholly owned
subsidiary of Topco Aggregator (“Topco” and, together with Topco Aggregator, the “Topco Parties”),
Focus Financial Partners Inc., a Delaware corporation (the “Company”), and Ferdinand FFP Acquisition, LLC, a Delaware
limited liability company and an indirect, wholly owned subsidiary of Topco (“Parent”). Capitalized terms used but
not defined herein shall have the meanings given to them in the Merger Agreement (as defined below).
RECITALS
WHEREAS,
concurrently with the execution and delivery of this Agreement, (i) the Company, (ii) Focus Financial Partners, LLC, a Delaware
limited liability company (“Focus LLC”), (iii) Parent, (iv) Ferdinand FFP Merger Sub 1, Inc., a Delaware
corporation and a direct, wholly owned Subsidiary of Parent (“Company Merger Sub”), and (v) Ferdinand FFP Merger
Sub 2, LLC, a Delaware limited liability company and a direct, wholly owned Subsidiary of Parent (“LLC Merger Sub”),
will enter into an Agreement and Plan of Merger (as may be amended from time to time, the “Merger Agreement”),
which provides for, among other things, the merger of Company Merger Sub with and into the Company (the “Company Merger”)
with the Company surviving the Company Merger as a wholly owned subsidiary of Parent;
WHEREAS,
as of the date hereof, each of the Stockholders is the record or “beneficial owner” (within the meaning of Rule 13d-3
under the Exchange Act) of (i) the number of shares of Class A Common Stock, par value $0.01 per share, of the Company (the
“Class A Common Stock”) set forth opposite such Stockholder’s name on Exhibit A hereto under
the heading “Class A Owned Shares”, collectively being all of the shares of Class A Common Stock owned of record
or beneficially by the Stockholders as of the date hereof (the “Class A Owned Shares”), (ii) the
number of shares of Class B Common Stock, par value $0.01 per share, of the Company (the “Class B Common Stock”
and the Class A Common Stock and Class B Common Stock, collectively, the “Common Stock”) set forth opposite
such Stockholder’s name on Exhibit A hereto under the heading “Class B Owned Shares”, collectively
being all of the shares of Class B Common Stock owned of record or beneficially by the Stockholders as of the date hereof (the “Class B
Owned Shares” and together with the Class A Owned Shares, the “Owned Shares”) and (iii) the number
of Focus LLC Units set forth opposite such Stockholder’s name on Exhibit A hereto under the heading “Owned Units”,
collectively being all of the equity of Focus LLC owned of record or beneficially by the Stockholders as of the date hereof (the “Owned
Units”);
WHEREAS, in connection with
the Closing, each of the Stockholders will contribute and transfer the number of Class A Owned Shares set forth opposite such Stockholder’s
name on Exhibit B hereto under the heading “Class A Rollover Shares”, as adjusted in accordance with Section 2.1
(such shares, the “Class A Rollover Shares”), which Class A Rollover Shares otherwise would be converted
into the right to receive the Merger Consideration in cash (the aggregate amount of the Merger Consideration that would have been payable
in respect of the Class A Rollover Shares but for the transactions contemplated by this Agreement and their classification as Excluded
Shares as a result of the transactions contemplated hereby, the “Class A Rollover Amount”) to Topco, which indirectly
owns 100% of the equity interests of Parent, on the Closing Date and immediately prior to the Vested Units Exchanges and the LLC Merger
Effective Time (the “Rollover Time”), in exchange for a number of newly issued shares of Topco with an aggregate value
equal to the Class A Rollover Amount (the “Exchanged Class A Shares”);
WHEREAS, in connection with
the Closing, each of the Stockholders will contribute and transfer the number of Owned Units and corresponding Class B Owned Shares
set forth opposite such Stockholder’s name on Exhibit B hereto under the heading “Rollover Units”, as adjusted
in accordance with Section 2.1 (such paired units and shares, the “Rollover Units” and together with the
Class A Rollover Shares, the “Rollover Equity”), which Rollover Units otherwise would be exchanged into shares
of Class A Common Stock and converted into the right to receive the Merger Consideration in cash but for the transactions contemplated
by this Agreement and their exclusion from the Vested Units Exchanges pursuant to Section 1.1 of the Merger Agreement (the aggregate
amount of the Merger Consideration that would have been payable in respect of the Rollover Units if such Rollover Units were exchanged
for shares of Class A Common Stock pursuant to Section 1.1 of the Merger Agreement, the “Unit Rollover Amount”,
and collectively with the Class A Rollover Amount, the “Rollover Amount”) to Topco at the Rollover Time, in exchange
for a number of newly issued shares of Topco with an aggregate value equal to the Unit Rollover Amount (the “Exchanged Unit
Shares”, together with the Exchanged Class A Shares, the “Exchanged Shares”) (the contribution of the
Rollover Equity by the Stockholders to Topco, the “Topco Rollover”);
WHEREAS, immediately following
the Topco Rollover, each of the Stockholders will contribute and transfer the Exchanged Shares to Topco Aggregator, in exchange for a
number of newly issued units of Topco Aggregator (the “Topco Aggregator Units”) with an aggregate value (based on
the same per unit price paid by Xxxxxxx, Dubilier & Rice Fund XII, L.P. (or its affiliates) (collectively, the “Sponsor”)
for the units issued to the Sponsor by Topco Aggregator at the Closing (the “Sponsor Units”)) equal to the Rollover
Amount (the contribution of the Exchanged Shares by the Stockholders to Topco Aggregator, the “Topco Aggregator Rollover”);
and
WHEREAS, as a condition and
inducement to Xxxxxx’s willingness to enter into the Merger Agreement and concurrently with the execution and delivery of the Merger
Agreement, Parent has required that each of the Stockholders, and the Stockholders have agreed, to enter into this Agreement.
NOW, THEREFORE, in consideration
of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby, the Stockholders,
the Company, Parent, Topco and Topco Aggregator hereby agree as follows:
1. Agreement
to Vote the Covered Shares.
1.1 Beginning
on the date hereof until the Termination Date (as defined below), at every meeting of the Company’s stockholders, including any
postponement, recess or adjournment thereof, or in any other circumstance, in each case, upon which a vote, consent or other approval
(including a written consent) with respect to the Merger Agreement, the Mergers or any other transaction contemplated by the Merger Agreement
is sought each Stockholder agrees to, and if applicable, to cause its controlled Affiliates to, affirmatively vote (including via proxy)
or execute consents with respect to (or cause to be voted (including via proxy) or consents to be executed with respect to) all of the
Owned Shares and any additional shares of Common Stock or other voting securities of the Company acquired by such Stockholder or its
controlled Affiliates after the date hereof and prior to the Termination Date (collectively, and together with the Owned Shares, the
“Covered Shares”) as follows: (a) in favor of (i) the adoption of the Merger Agreement and the approval
of the Mergers, (ii) the approval of any proposal to adjourn or postpone any Company Stockholders Meeting if the Company or Parent
proposes or requests such postponement or adjournment in accordance with Section 6.4 of the Merger Agreement, and (iii) the
approval of any other proposal considered and voted upon by the stockholders of the Company at any Company Stockholders Meeting necessary
or desirable for the consummation of the Mergers and the transactions contemplated by the Merger Agreement, and (b) against (i) any
proposal, action or agreement that would reasonably be expected to result in a breach of any covenant, representation or warranty or
other obligation or agreement of the Company contained in the Merger Agreement or that would reasonably be expected to result in any
condition set forth in Sections 7.1 or 7.2 of the Merger Agreement not being satisfied or not being fulfilled prior to the Termination
Date, (ii) any Acquisition Proposal, (iii) any reorganization, dissolution, liquidation, winding up or similar extraordinary
transaction involving the Company (except as contemplated by the Merger Agreement) and (iv) any other action, agreement or proposal
which would reasonably be expected to prevent, materially impede or materially delay the consummation of the Mergers or any of the transactions
contemplated by the Merger Agreement (clauses (a) and (b) collectively, the “Supported Matters”). Each Stockholder
agrees to, and agrees to cause its applicable controlled Affiliates to, be present, in person or by proxy, at every meeting of the Company’s
stockholders, including any postponement, recess or adjournment thereof, or in any other circumstance, however called, to vote on the
Supported Matters (in the manner described in this Section 1.1) so that all of the Covered Shares will be counted for purposes of
determining the presence of a quorum at such meeting, or otherwise cause the Covered Shares to be counted as present thereat for purposes
of establishing a quorum. For the avoidance of doubt, other than with respect to the Supported Matters, each Stockholder does not have
any obligation to vote the Covered Shares in any particular manner and, with respect to such other matters (other than the Supported
Matters), such Stockholder shall be entitled to vote the Covered Shares in its sole discretion.
2. Rollover.
2.1 Contribution
and Rollover. On the terms set forth herein and subject to Section 2.2 and Section 2.3:
(a) Each
Stockholder agrees and covenants to Parent, Topco and Topco Aggregator that it will, (i) at the Rollover Time, contribute, assign,
transfer, convey and deliver (or cause to be contributed, assigned, transferred, conveyed and delivered) to Topco such Stockholder’s
Rollover Equity in exchange for the issuance by Topco of such Stockholder’s Exchanged Shares to such Stockholder and (ii) immediately
following the Topco Rollover, contribute, assign, transfer, convey and deliver (or cause to be contributed, assigned, transferred, conveyed
and delivered) to Topco Aggregator such Stockholder’s Exchanged Shares in exchange for the issuance by Topco Aggregator of the
Topco Aggregator Units to such Stockholder, in each case, free and clear of any and all Liens (including any restriction on the right
to vote, sell or otherwise dispose of such Rollover Equity or such Exchanged Shares, as applicable), except as may exist by reason of
this Agreement, the Merger Agreement and applicable securities laws (the “Rollover”).
(b) Notwithstanding
anything to the contrary set forth in this Agreement, to the extent approved in writing by Xxxxxxx, Xxxxxxxx & Xxxx, LLC (“CD&R”)
(such approval not to be unreasonably withheld, conditioned or delayed), if any Affiliate of a Stockholder irrevocably commits after
the date hereof, on terms reasonably acceptable to CD&R, to invest an amount of cash in Parent (a “Stockholder Affiliate
Commitment”), (i) the Rollover Amount shall be automatically reduced, without any further action of the parties hereto,
on a dollar-for-dollar basis by the aggregate amount of such Stockholder Affiliate Commitment actually funded, and the Class A Rollover
Amount and the Unit Rollover Amount shall be proportionately reduced by such Stockholder Affiliate Commitment actually funded based on
the Class A Rollover Share Percentage and the Rollover Unit Percentage, respectively, (ii) the number of Class A Rollover
Shares shall be reduced by the quotient of (A) the product of the Class A Rollover Share Percentage and the amount of such
Stockholder Affiliate Commitment actually funded and (B) the Merger Consideration and (iii) the number of Rollover Units shall
be reduced by such number of Focus LLC Units that are exchangeable into such number of shares of Class A Common Stock equal to the
quotient of (A) the product of the Rollover Unit Percentage and the amount of such Stockholder Affiliate Commitment actually funded
and (B) the Merger Consideration. The “Class A Rollover Share Percentage” means a fraction, expressed
as a percentage, the numerator of which is the number of Class A Rollover Shares (determined without giving effect to this Section 2.1(b))
and the denominator of which is the total number of equity interests representing the Rollover Equity (determined without giving effect
to this Section 2.1(b)), with Owned Units and corresponding Class B Owned Shares counting as a single equity interest
for purposes of calculating Rollover Equity. The “Rollover Unit Percentage” means a fraction, expressed as a
percentage, the numerator of which is the number of Rollover Units (determined without giving effect to this Section 2.1(b))
and the denominator of which is the total number of equity interests representing the Rollover Equity (determined without giving effect
to this Section 2.1(b)), with Owned Units and corresponding Class B Owned Shares counting as a single equity interest
for purposes of calculating Rollover Equity.
(c) Each
Stockholder acknowledges and agrees that, from and after the Rollover, except as set forth in Section 2.3, such Stockholder
shall have no right, title or interest in or to the Rollover Equity.
2.2 Conditions
to Rollover. The obligations of each Stockholder to consummate the Rollover is subject to the satisfaction (or waiver by such Stockholder
in writing) of the following conditions:
(a) (i) The
satisfaction, or written waiver by Parent (to the extent permitted by the Merger Agreement), of all conditions to the obligations of
Parent and Merger Subs to consummate the Mergers and the transactions contemplated by the Merger Agreement that are to occur on the Closing
Date as set forth in Sections 7.1 and 7.2 of the Merger Agreement (other than those conditions that by their terms are to be satisfied
at the Closing, but subject to the satisfaction or written waiver by Parent (to the extent permitted by the Merger Agreement) of such
conditions), (ii) the satisfaction, or written waiver by the Company (to the extent permitted by the Merger Agreement), of all conditions
to the obligations of the Company to consummate the Mergers and the transactions contemplated by the Merger Agreement that are to occur
on the Closing Date as set forth in Sections 7.1 and 7.3 of the Merger Agreement (other than those conditions that by their terms are
to be satisfied at the Closing, but subject to the satisfaction or written waiver by the Company (to the extent permitted by the Merger
Agreement) of such conditions), (iii) the substantially concurrent funding of the Equity Financing on the terms and subject to the
conditions set forth in the Equity Commitment Letters and (iv) the consummation of the Mergers immediately following the Rollover;
and
(b) No
Law enacted, entered, promulgated, enforced or issued by any Governmental Authority shall be in effect preventing the consummation of,
or otherwise making illegal, the Rollover.
2.3 Failure
to Consummate the Mergers. In the event that after the Rollover, the Mergers fails to be consummated for any reason whatsoever and
the Merger Agreement is terminated, the parties hereto agree that concurrently with the termination of the Merger Agreement, automatically
and without any action of the parties hereto, Topco Aggregator shall assign, transfer, convey and deliver (or shall cause to be assigned,
transferred, conveyed and delivered) to the Stockholders the Rollover Equity and the Stockholders shall assign, transfer, convey and
deliver to Topco Aggregator the Topco Aggregator Units issued to the Stockholders. In such event, each party hereto shall, as promptly
as practicable, provide all such cooperation as the other parties hereto may reasonably request in order to ensure that the foregoing
has occurred and been made effective.
2.4 Tax
Treatment. The parties hereto agree that, for U.S. federal (and applicable state and local) income tax purposes, (a) the Topco
Rollover, together with the contributions by Topco Aggregator to Topco in connection with the transactions contemplated by the Merger
Agreement, are intended to constitute a single integrated transaction and be treated as a transaction described in Section 351(a) of
the Internal Revenue Code of 1986, as amended (the “Code”) and the Treasury Regulations promulgated thereunder and
(b) the Topco Aggregator Rollover is intended to be treated as a transaction described in Section 721(a) of the Code (the
“Intended Tax Treatment”). Each party hereto shall prepare and file (and shall cooperate in the preparation and filing
of, as reasonably requested) all Tax Returns in a manner consistent with the Intended Tax Treatment and shall not take any position inconsistent
with the Intended Tax Treatment in connection with any tax matters, in each case, unless otherwise required pursuant to a final “determination”
within the meaning of Section 1313(a)(1) of the Code. The Topco Parties and the Stockholders shall use their reasonable best
efforts to cause the transactions contemplated by this Agreement to qualify for the Intended Tax Treatment and shall not take any action
(or fail to take any action) that knowingly would, or that knowingly would reasonably be likely to cause the transactions not to so qualify.
2.5 Termination.
Parent shall not be permitted to terminate its obligations under this Section 2 without the written consent of the Stockholders
(it being understood that this Section 2 shall also be terminated automatically, without any further action required by the parties
thereto, upon any termination of this Agreement pursuant to Section 3).
2.6 Tax
Information. Within ninety (90) days following the Closing Date, each Stockholder shall provide to Topco Aggregator or its accountants
the Stockholder’s estimated tax basis and holding period as of the Closing Date in its Rollover Equity and shall promptly provide
updated information in respect thereof if the Stockholder determines that its actual tax basis or holding period is different than previously
reported. At the Rollover Time, each Stockholder shall deliver to the Topco Parties a properly completed and timely executed IRS Form W-8
or W-9.
2.7 Withholding.
Each of Parent, Topco, and Topco Aggregator (and any Affiliates and designees of the foregoing), shall be entitled to deduct or withhold
from any amounts owing from such Persons to any Stockholder (including withholding equity interests in the case of issuances of equity
by such Persons) for any federal, state, local or non-U.S. withholding taxes, excise taxes, or employment taxes imposed with respect
to compensation or other payments to such Stockholder or such Stockholder's ownership interest in Topco Aggregator, Topco, or their Affiliates,
including, without limitation, equity issuances, wages, bonuses, distributions, the receipt or exercise of equity options and/or the
receipt or vesting of restricted equity; provided, that the Person intending to make any such deduction or withholding (other
than compensatory withholding or withholding resulting from the failure of a Stockholder to provide the forms required under Section 2.6)
shall reasonably cooperate with the applicable Stockholder in determining whether any reductions or exemptions from withholding are available,
including providing such Stockholder with a reasonable opportunity to provide such forms, certificates or other evidence to eliminate
or reduce any such required deduction or withholding. To the extent any amounts are so deducted or withheld, such deducted or withheld
amounts shall be treated for all purposes of this Agreement as having been paid to the applicable Stockholder. In the event any such
deductions or withholdings are not made with respect to a Stockholder, such Stockholder shall indemnify Parent, Topco, and Topco Aggregator
(and any Affiliates and designees of the foregoing) for any amounts paid with respect to the applicable taxes, together with any interest,
penalties and related expenses thereto. Each Stockholder shall provide Topco Aggregator with such additional tax-related information,
certifications and documentation as Topco Aggregator may request.
2.8 Additional
Tax Matters. The Topco Parties agree that the Limited Partnership Agreement of Topco Aggregator at the Rollover Time shall include
the following provisions substantially the same and not materially different than the following:
(a) (A) In
the event of an in-kind distribution by Topco Aggregator to some or all of its partners (whether or not in full or partial redemption
of the any partner’s interest in Topco Aggregator), the partner shall receive (or be deemed to receive), to the extent possible,
(and Topco Aggregator shall record on its books and records the distribution as being a distribution of): (x) first, if the in-kind
distribution includes any assets such partner contributed to Topco Aggregator (“Contributed Assets”), such Contributed
Assets shall be distributed to such partner to the extent of any amounts due to such partner in respect of such distribution, and (y) second,
to the extent that no further distribution can be made in accordance with clause (x), or if the in-kind distribution does not include
any Contributed Assets with respect to such partner, then, property shall be distributed to such partner other than Contributed Assets
with respect to any other partner, (B) any future partial disposition by Topco Aggregator of common stock of Topco shall be structured,
to the extent possible such that the items of income, gain, loss or deduction resulting from such disposition are allocated (taking into
account any allocations required pursuant to Section 704(c) of the Code) to the partners to whom the proceeds are intended
to be distributed, as determined by the General Partner in good faith and (C) in the event that after the Closing Date there shall
be additional capital contributions of property or cash into Topco Aggregator and to the extent such property or cash is further contributed
to Topco (or any successor thereof), such contribution to Topco shall only be made in exchange for newly issued shares of common stock
of Topco, on a value for value basis, governed by Section 351 of the Code (i.e., not as a paid-in capital). For purposes of the
provisions set forth in this Section 2.7(a), (i) a Stockholder shall include a successor in interest that is considered to
have contributed assets (other than cash or cash equivalents) to Topco Aggregator under Sections 1.704-3(a)(7) and 1.737-1(c)(2)(iii) of
the Treasury Regulations, and (ii) any Contributed Assets shall include assets that are treated as substituted basis property under
Sections 1.704-3(a)(8)(i) and 1.737-2(d)(3)(i) of the Treasury Regulations as a result of having been received by Topco Aggregator
in respect of Contributed Assets in an exchange or series of exchanges in which no gain or loss was recognized as provided in Sections
1.704-3(a)(8)(i) and 1.737-2(d)(3)(i) of the Treasury Regulation, including for these purposes, but not limited to, shares
of Topco issued on account of Topco Rollover pursuant to this Agreement (“Substituted Basis Property”). With respect
to any Contributed Assets (or Substituted Basis Property), Topco Aggregator shall use reasonable efforts to separately identify such
property in order to give effect to this Section 2.7(a), to the extent reasonably practicable. This Section 2.7(a) is
intended to minimize the potential application of Sections 704(c)(1)(B) and 737 of the Code with respect to each partner and shall
be interpreted consistently with that intention.
(b) Topco
Aggregator shall use reasonable best efforts to provide reasonably prompt written notice to the Stockholders if Topco Aggregator obtains
actual knowledge that Topco becomes or is likely to become a U.S. real property holding corporation.
3. Termination.
This Agreement shall terminate automatically and without further action upon the earliest to occur of: (i) the valid termination
of the Merger Agreement in accordance with its terms, (ii) the Company Merger Effective Time (following the consummation of the
Rollover), (iii) any amendment of the Merger Agreement, without the prior written consent of the Stockholders, that reduces the
amount of the Merger Consideration or changes the form of the Merger Consideration (such amendment, an “Adverse Amendment”)
or (iv) the written consent of the Stockholders, Parent and the Company (such date, the “Termination Date”);
provided that the provisions set forth in Sections 2.3, and 12 through 26 shall survive the termination of
this Agreement; provided, further, that Sections 2.4, 2.6 and 2.7 shall survive the termination of
this Agreement pursuant to the foregoing clause (ii); provided, further, that Section 4.5 and the provisions
and obligations incorporated by reference in Section 4.5 shall survive to the extent that, and only for so long as, the corresponding
provisions referenced therein survive under the terms of the Interim Investors Agreement; and provided further that the termination
of this Agreement shall not prevent any party hereto from seeking any remedies (at law or in equity) against (x) any other party
hereto for that party’s Willful Breach of this Agreement that may have occurred on or before such termination or (y) against
any of the Stockholders for such Stockholder’s material breach of Sections 2.1(a), 4.3(b) and 4.5 (including,
for the avoidance of doubt, any material breach of any of the provisions of the Interim Investors Agreement incorporated by reference
in Section 4.5) (any material breach contemplated by this clause (y), a “Material Rollover Breach”). For
the purpose hereof, “Willful Breach” means a material breach of this Agreement (other than a Material Rollover Breach)
that is a consequence of a willful or deliberate act or failure to act by a Party that knows or would reasonably be expected to have
known that the taking of such act or failure to act would, or would reasonably be expected to, cause a breach of this Agreement.
4. Certain
Covenants.
4.1 Acquisition
Proposals.
(a) From
and after the date hereof until the earlier of the termination of the Merger Agreement pursuant to Article VIII thereof and the
Company Merger Effective Time, subject to Section 8, each of the Stockholders hereby agrees that it shall not, and it shall instruct
and use its reasonable best efforts to cause its Representatives not to, directly or indirectly:
(1) initiate,
solicit, propose or knowingly encourage or knowingly facilitate any inquiries or the making of any proposal or offer that constitutes,
or would reasonably be expected to lead to, any Acquisition Proposal;
(2) engage
in, continue or otherwise participate in any discussions or negotiations regarding, or provide any nonpublic information or data to any
Person or Group relating to, any Acquisition Proposal or any inquiry, proposal or offer that would reasonably be expected to lead to
an Acquisition Proposal (other than to state that the terms of this Section 4.1 prohibit such discussions);
(3) furnish
to any Person (other than Parent or any of its Affiliates) any non-public information relating to the Company or any of its Subsidiaries
or afford to any such Person access to the business, properties, assets, books, records or other non-public information, or to any personnel,
of the Company and its Subsidiaries, in any such case with the intent to induce, or that could reasonably be expected to result in, the
making, submission or announcement of, an Acquisition Proposal;
(4) approve,
endorse or recommend any proposal that constitutes or would reasonably be expected to lead to, an Acquisition Proposal; or
(5) resolve
or agree to do any of the foregoing.
(b) Notwithstanding
anything to the contrary in Section 4.1(a):
(1) From
the date hereof until the No-Shop Period Start Date (or with respect to an Excluded Party, the Cut-Off Time), the Stockholders may, at
the Company’s request and with substantially concurrent written notice to Parent (which notice shall include the identity of the
Third Person referenced in this Section 4.1(b)(1)), engage in discussions with a Third Person who has submitted an Acquisition Proposal
solely for the purpose of confirming that the Stockholders are willing to enter into an agreement to vote in favor of such Acquisition
Proposal if the Company Board (acting on the recommendation of the Special Committee) or the Special Committee, as applicable, were to
subsequently determine that such Acquisition Proposal constitutes a Superior Proposal in accordance with Section 6.2 of the Merger
Agreement.
(2) The
Stockholders and their Representatives may engage in or otherwise participate in discussions or negotiations regarding a bona fide written
Acquisition Proposal that the Company Board, acting upon the recommendation of the Special Committee, or the Special Committee has determined
in good faith based on the information then available and after consultation with its financial advisor and outside counsel either constitutes
a Superior Proposal or is reasonably likely to result in a Superior Proposal in accordance with the Merger Agreement and the failure
to take such action would reasonably be expected to be inconsistent with its fiduciary duties under applicable Law.
(c) From
the date hereof until the earlier of the termination of the Merger Agreement pursuant to Article VIII thereof and the Effective
Time, subject to Section 8, each Stockholder (solely in its capacity as a stockholder of the Company) agrees that it will promptly
(and, in any event, within twenty-four hours) notify Parent in writing following any discussions or negotiations with any Person or Group
pursuant to Section 4.1(b) and shall provide, in connection with such notice, the material terms and conditions of any proposal,
indication of interest (including, for the avoidance of doubt, the form and amount of consideration and proposed financing arrangements),
or offer (including the identity of the Person or Group making such proposal, indication of interest or offer and, if applicable, copies
of any written proposal, indication of interest or offer, including proposed agreements or commitment letters) that is the subject of
such discussions or negotiations, and thereafter shall keep Parent informed, on a reasonably prompt basis (and, in any event, within
twenty-four hours), of any material changes to the status and terms of any such proposal, indication of interest or offer (including
any amendments thereto) and any material changes to the status and terms of any such proposal, indication of interest or offer. Notwithstanding
the foregoing, the Stockholders shall not be required to notify Parent of any discussions or negotiations to the extent the Company has
notified Parent thereof.
4.2 Transfers.
Beginning on the date hereof until the Termination Date, each Stockholder hereby covenants and agrees that, except as expressly contemplated
pursuant to this Agreement, such Stockholder shall not, and shall direct its controlled Affiliates not to, directly or indirectly (i) tender
any Covered Shares into any tender or exchange offer, (ii) offer, sell, transfer, assign, exchange, pledge, hypothecate, encumber,
or otherwise dispose of (collectively, “Transfer”) or enter into any contract, option, agreement, understanding or
other arrangement with respect to the Transfer of, any Covered Shares or beneficial ownership, voting power or any other interest thereof
or therein (including by operation of law), (iii) grant any proxies or powers of attorney, deposit any Covered Shares into a voting
trust or enter into a voting agreement with respect to any Covered Shares that is inconsistent with this Agreement, (iv) enter into
any hedge, swap or other transaction or Contract which is designed to (or is reasonably expected to lead to or result in) a transfer
of the economic consequences of ownership of any Covered Shares, whether any such transaction is to be settled by delivery of Covered
Shares, in cash or otherwise, (v) take an action that would reasonably be expected to prevent or materially impair or materially
delay the consummation of the transactions contemplated by this Agreement or the Merger Agreement or (vi) commit or agree to take
any of the foregoing actions. Any Transfer in violation of this Section 4.2 shall be void ab initio. Notwithstanding
anything to the contrary in this Agreement, but subject to Section 2.1(b), each Stockholder may Transfer any or all of the
Covered Shares from and after the Requisite Company Stockholder Approvals have been obtained; provided that the Stockholders retain,
collectively, such number of Owned Shares and Owned Units that collectively have an aggregate value equal to the Rollover Amount, as
determined in accordance with Section 2.
4.3 Focus
LLC Contribution.
(a) Pursuant
to Section 6.23 of the Merger Agreement, the Company, in its capacity as Managing Member (as such term is defined in the Focus LLC
Agreement) of Focus LLC, has agreed to consent to any Transfer (as such term is defined in the Focus LLC Agreement) of the Rollover Units
as contemplated by this Agreement.
(b) Each
Stockholder hereby covenants and agrees to take or cause to be taken all other or further actions required (including under the Focus
LLC Agreement) to validly contribute, assign, transfer, convey and deliver (or cause to be contributed, assigned, transferred, conveyed
and delivered) to Topco the Rollover Units at the Rollover Time, free and clear of any and all Liens (including any restriction on the
right to vote, sell or otherwise dispose of the Rollover Units), except as may exist by reason of this Agreement, the Merger Agreement
and applicable securities laws. Each Stockholder hereby acknowledges and agrees that to the extent any Rollover Units are exchanged for
shares of Class A Common Stock following the date hereof pursuant to the Focus LLC Agreement, such shares of Class A Common
Stock received pursuant to such exchange shall be treated as Covered Shares and Class A Rollover Shares.
4.4 Termination
of Nomination Agreement. At or prior to the Closing, subject to and conditioned upon the Closing, the Stockholders shall deliver
a termination notice to the Company pursuant to Section 4.2 of that certain Nomination Agreement (as may be amended, supplemented
or otherwise modified in accordance with its terms), dated as of July 30, 2018, by and between the Stockholders and the Company.
4.5 Certain
Agreements. The Stockholders agree to be bound by, subject to the exceptions and limitations set forth therein, the following provisions
of the Interim Investors Agreement, dated as of the date hereof (the “Interim Investors Agreement”), by and among
Topco Aggregator, Topco, Parent and the other parties appearing on the signature pages thereto, as set forth in this Section 4.5:
(a) Section 2.4, mutatis mutandis, as if the Stockholders were Investors (as defined in the Interim Investors Agreement)
and Requisite Investors (as defined in the Interim Investors Agreement) thereunder; (b) Section 2.11, mutatis mutandis,
as if the Stockholders were Sponsor Investors (as defined in the Interim Investors Agreement); (c) Section 2.11(a)(ii) and
Section 2.11(c), mutatis mutandis, as if the Stockholders were Investors thereunder; (d) the last sentence of Section 4.9,
mutatis mutandis, as if the Stockholders were Investors thereunder; (e) Section 4.10, mutatis mutandis, as if
the Stockholders were parties thereunder; provided that such provisions shall not apply to any information received, supplied
or otherwise available to such Stockholders unrelated to the Merger and the transactions contemplated by the Merger Agreement; (f) Section 4.11,
mutatis mutandis, as if the Stockholders were parties thereunder; provided that such provisions shall not apply (other
than the proviso to the first sentence in Section 4.11, which shall continue to apply, mutatis mutandis) to the information
required to be included in the Stockholder's disclosure statements on Schedule 13D or amendments or supplements thereto; and (g) Section 4.12,
mutatis mutandis, as if the Stockholders were parties thereunder. To the extent any Stockholder commits any Material Rollover
Breach which continues uncured for twenty-four (24) hours following notice thereof by Parent to such Stockholder, such Stockholder agrees
to be bound by, subject to the exceptions and limitations set forth therein, Section 2.12(b) and Section 4.4 of the Interim
Investors Agreement, mutatis mutandis, as if such Stockholder were a “Failing Investor” thereunder. Notwithstanding
anything to the contrary set forth in this Agreement or the Interim Investors Agreement, in the event of any Material Rollover Breach
or any Breach (as defined in the Interim Investors Agreement), in no event shall the aggregate liability of the Stockholders hereunder
and SPC (as defined in the Interim Investors Agreement), in the aggregate, exceed an amount equal to the Maximum Liability Cap (as defined
in the Interim Investors Agreement).
5. Proxy
Statement; Schedule 13e-3 and Schedule 13D.
(a) The
Company, Parent and the Stockholders shall cooperate to, concurrently with the preparation and filing of the Proxy Statement, jointly
prepare and file with the SEC the Schedule 13e-3. Each Stockholder will provide information reasonably requested by the Company or Parent
in connection with the preparation of the Schedule 13e-3. To the knowledge of each Stockholder, the information supplied by such Stockholder
for inclusion or incorporation by reference in the Proxy Statement, the Schedule 13e-3 or any other filing Parent or the Company is required
to make in connection with the Mergers will not, at the time that such information is provided, contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they are made, not misleading. Promptly after the execution of this Agreement, Parent and the Stockholders
shall cooperate to prepare and file with the SEC one or more disclosure statements on Schedule 13D or amendments or supplements thereto,
as applicable (such disclosure statements, including any amendments or supplements thereto, the “Schedule 13Ds”) relating
to the Merger Agreement and this Agreement and the transactions contemplated hereby and thereby. Parent shall (i) provide the Stockholders
and Stockholders’ counsel a reasonable opportunity to review drafts of the Schedule 13e-3 prior to filing the Schedule 13e-3 with
the SEC and (ii) consider in good faith all comments thereto reasonably proposed by the Stockholders, their outside counsel and
other Representatives. To the extent legally permissible, Parent and the Stockholders shall (A) provide each other and their respective
counsel a reasonable opportunity to review drafts of the Schedule 13Ds prior to filing the Schedule 13Ds with the SEC and (B) consider
in good faith all comments thereto reasonably proposed by the other parties their outside counsel and their other Representatives, it
being understood that failure to provide such prior review or to incorporate any comments shall not in any way limit or preclude Parent
or the Stockholders, as applicable, from amending any such Schedule 13D.
(b) Parent,
Sponsor and the Stockholders will each use its reasonable best efforts to furnish all information concerning such Party and its controlled
Affiliates to the other parties that is reasonably necessary for the preparation and filing of the Proxy Statement and the Schedule 13e-3,
and provide such other assistance, as may be reasonably requested by such other Party to be included therein and will otherwise reasonably
assist and cooperate with the other in the preparation, filing and distribution of the Proxy Statement and the Schedule 13e-3 and the
resolution of any comments to either received from the SEC.
6. Representations
and Warranties of the Stockholder. Each Stockholder hereby represents and warrants to Parent and the Company as follows:
6.1 Due
Authority. Such Stockholder is a legal entity duly organized, validly existing and in good standing under the Laws of its jurisdiction
of formation. Such Stockholder has all requisite corporate or other similar power and authority and has taken all corporate or other
similar action necessary (including approval by the board of directors or applicable corporate bodies) to execute, deliver, comply with
and perform its obligations under this Agreement in accordance with the terms hereof and to consummate the transactions contemplated
hereby, and no other action on the part of or vote of holders of any equity securities of such Stockholder is necessary to authorize
the execution and delivery of, compliance with and performance by such Stockholder of this Agreement. This Agreement has been duly executed
and delivered by such Stockholder and, assuming the due execution and delivery of this Agreement by the Company, Parent, Topco and Topco
Aggregator, constitutes a legal, valid and binding agreement of such Stockholder enforceable against such Stockholder in accordance with
its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and other similar
Laws affecting or relating to creditors’ rights generally.
6.2 No
Conflict. The execution and delivery of, compliance with and performance of this Agreement by such Stockholder including, for the
avoidance of doubt, the contribution to Topco of the Rollover Units, do not and will not (i) conflict with or result in any violation
or breach of any provision of the certificate of formation or operating agreement or similar organizational documents of such Stockholder,
(ii) conflict with or result in any violation or breach of any provision of the Focus LLC Agreement, (iii) conflict with or
result in a violation or breach of any applicable Law, (iv) require any consent by any Person under, constitute a default, or an
event that, with or without notice or lapse of time or both, would constitute a default under, or cause or permit the termination, cancellation
or acceleration of any right or obligation or the loss of any benefit to which such Stockholder is entitled, under any Contract binding
upon such Stockholder, or to which any of its properties, rights or other assets are subject or (v) result in the creation of a
Lien (other than Permitted Liens) on any of the properties or assets (including intangible assets) of such Stockholder, except in the
case of clauses (i), (ii), (iii), (iv) and (v) above, any such violation, breach, conflict, default, termination, acceleration,
cancellation or loss that would not, individually or in the aggregate, reasonably be expected to restrict in any material respect, prohibit
or impair in any material respect the consummation of the Mergers or the performance by such Stockholder of its obligations under this
Agreement.
6.3 Consents.
No consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Authority or any other
Person, is required by or with respect to the Stockholder in connection with the execution and delivery of this Agreement or the consummation
by the Stockholder of the transactions contemplated hereby, except (a) as required by the rules and regulations promulgated
under the Exchange Act, the Securities Act, or state securities, takeover and “blue sky” laws, (b) compliance with any
applicable requirements of the HSR Act and any applicable foreign Antitrust Laws, (c) the applicable rules and regulations
of the SEC or any applicable stock exchange or (d) as would not, individually or in the aggregate, reasonably be expected to restrict
in any material respect, prohibit, impair in any material respect or materially delay the consummation of the Mergers or the performance
by such Stockholder of its obligations under this Agreement.
6.4 Ownership
of the Owned Shares and Owned Units. Such Stockholder is, as of the date hereof, the record and beneficial owner of the Owned Shares
and the Owned Units, all of which are free and clear of any Liens, other than those created by this Agreement, the Merger Agreement,
the Focus LLC Agreement or arising under applicable securities laws. Such Stockholder has the full legal right, power and authority to
deliver the Rollover Equity to Parent pursuant to Section 2. Such Stockholder does not own, of record or beneficially, any shares
of capital stock of the Company, or other rights to acquire shares of capital stock of the Company, in each case other than the Owned
Shares and Owned Units. Such Stockholder has the sole right to dispose of the Owned Shares and Owned Units, and none of the Owned Shares
or Owned Units is subject to any pledge, disposition, transfer or other agreement, arrangement or restriction, except as contemplated
by this Agreement. As of the date hereof, such Stockholder has not entered into any agreement to Transfer any Owned Shares or Owned Units
and no person has a right to acquire any of the Owned Shares or Owned Units held by such Stockholder.
6.5 Absence
of Litigation. As of the date hereof, there is no legal action pending against, or, to the knowledge of the Stockholder, threatened
against the Stockholder that would reasonably be expected to prevent, materially or materially impair the ability of the Stockholder
to perform its obligations under this Agreement.
6.6 Investment.
The Exchanged Shares and the TopCo Aggregator Units to be acquired by the Stockholder pursuant to this Agreement will be acquired for
the Stockholder’s own account and not with a view to, or intention of, distribution thereof in violation of any applicable state
securities laws. Each Stockholder is an “accredited investor” within the meaning of Rule 501 of Regulation D of the
SEC. Each Stockholder is sophisticated in financial matters and is able to evaluate the risks and benefits of the investment in the Exchanged
Shares and the TopCo Aggregator Units. Each Stockholder is able to bear the economic risk of its investment in the Exchanged Shares and
the TopCo Aggregator Units for an indefinite period of time because the Exchanged Shares and the TopCo Aggregator Units have not been
registered under the Securities Act and, therefore, cannot be sold unless subsequently registered under the Securities Act or an exemption
from such registration is available. Each Stockholder has had an opportunity to ask questions and receive answers concerning the terms
and conditions of the offering of the Exchanged Shares and the TopCo Aggregator Units and has had access to such other information concerning
Parent as such Stockholder has requested.
6.7 Finders
Fees. No broker, investment bank, financial advisor or other person is entitled to any broker’s, finder’s, financial
adviser’s or similar fee or commission in connection with the transactions contemplated hereby based upon arrangements made by
or on behalf of such Stockholder.
7. Representations
and Warranties of Parent. Parent hereby represents and warrants to the Stockholders as follows:
7.1 Due
Authority. Parent is a legal entity duly incorporated, validly existing and in good standing under the Laws of its jurisdiction of
formation. Parent has all requisite corporate power and authority and has taken all corporate action necessary (including approval by
the board of directors or applicable corporate bodies) to execute, deliver and perform its obligations under this Agreement in accordance
with the terms hereof and no other corporate action by Parent or vote of holders of any class of the capital stock of Parent is necessary
to approve and adopt this Agreement. This Agreement has been duly executed and delivered by Xxxxxx and, assuming the due execution and
delivery of this Agreement by all of the other parties hereto, constitutes a valid and binding agreement of Parent enforceable against
Parent in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium and other similar Laws affecting or relating to creditors’ rights generally.
7.2 No
Conflict. The execution, delivery and performance by Parent of this Agreement do not and will not, other than as provided in the
Merger Agreement with respect to the Mergers and the other transactions contemplated thereby, (i) conflict with or result in any
violation or breach of any provision of the certificate of incorporation or bylaws of Parent or the similar organizational documents
of any of its Subsidiaries, (ii) conflict with or result in a violation or breach of any applicable Law, (iii) require any
consent by any Person under, constitute a default, or an event that, with or without notice or lapse of time or both, would constitute
a default under, or cause or permit the termination, cancellation or acceleration of any right or obligation or the loss of any benefit
to which Parent and any of its Subsidiaries are entitled, under any Contract binding upon Parent or any of its Subsidiaries, or to which
any of their respective properties, rights or other assets are subject or (iv) result in the creation of a Lien (other than Permitted
Liens) on any of the properties or assets (including intangible assets) of Parent or any of its Subsidiaries, except in the case of clauses
(ii), (iii) and (iv) above, any such violation, breach, conflict, default, termination, acceleration, cancellation or loss
that would not reasonably be expected to restrict, prohibit or impair the performance by Parent of its obligations under this Agreement.
7.3 Consents.
No consent, approval, order or authorization of, or registration, declaration or, (except as required by the rules and regulations
promulgated under the Exchange Act, the Securities Act, or state securities, takeover and “blue sky” laws) filing with, any
Governmental Authority or any other Person, is required by or with respect to Parent in connection with the execution and delivery of
this Agreement or the consummation by Parent of the transactions contemplated hereby, except as would not, individually or in the aggregate,
reasonably be expected to restrict, prohibit, impair or delay the consummation of the Mergers or the performance by Parent of its obligations
under this Agreement.
7.4 Absence
of Litigation. As of the date hereof, there is no legal action pending against, or, to the knowledge of Parent, threatened against
or affecting Parent that would reasonably be expected to prevent, materially delay or materially impair the ability of Parent to perform
its obligations under this Agreement.
7.5 Exchanged
Shares. The Exchanged Shares and the Topco Aggregator Units, when issued to the Stockholder pursuant to the Rollover, will be duly
authorized, validly issued and outstanding, fully paid and non-assessable, and issued free and clear of any Liens, other than those created
by governance documents of Topco or Topco Aggregator, as applicable, or arising under applicable securities Laws.
8. Representations
and Warranties of the Company. The Company hereby represents and warrants to the Stockholders and Parent as follows:
8.1 Due
Authority. The Company is a legal entity duly incorporated, validly existing and in good standing under the Laws of its jurisdiction
of formation. The Company has all requisite corporate power and authority and has taken all corporate action necessary (including approval
by the Company Board (acting on the recommendation of the Special Committee)) to execute, deliver and perform its obligations under this
Agreement in accordance with the terms hereof and no other corporate action by the Company or vote of holders of any class of the capital
stock of the Company is necessary to approve and adopt this Agreement. This Agreement has been duly executed and delivered by the Company
and, assuming the due execution and delivery of this Agreement by all of the other parties hereto, constitutes a valid and binding agreement
of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other similar Laws affecting or relating to creditors’ rights generally.
8.2 No
Conflict. The execution, delivery and performance by the Company of this Agreement do not and will not, other than as provided in
the Merger Agreement with respect to the Mergers and the other transactions contemplated thereby, (i) conflict with or result in
any violation or breach of any provision of the certificate of incorporation or bylaws of the Company or the similar organizational documents
of any of its Subsidiaries, (ii) conflict with or result in a violation or breach of any applicable Law, (iii) require any
consent by any Person under, constitute a default, or an event that, with or without notice or lapse of time or both, would constitute
a default under, or cause or permit the termination, cancellation or acceleration of any right or obligation or the loss of any benefit
to which the Company and any of its Subsidiaries are entitled, under any Contract binding upon the Company or any of its Subsidiaries,
or to which any of their respective properties, rights or other assets are subject or (iv) result in the creation of a Lien (other
than Permitted Liens) on any of the properties or assets (including intangible assets) of the Company or any of its Subsidiaries, except
in the case of clauses (ii), (iii) and (iv) above, any such violation, breach, conflict, default, termination, acceleration,
cancellation or loss that would not reasonably be expected to restrict, prohibit or impair the performance by the Company of its obligations
under this Agreement.
9. Stockholder
Capacity. This Agreement is being entered into by the Stockholders solely in their respective capacity as a record or beneficial
owner of the Owned Shares and Owned Units, and nothing in this Agreement shall restrict or limit the ability of any of the Stockholders
or any of their respective Affiliates or Representatives who is a director or officer of the Company or any of the Company’s Subsidiaries
to take, or refrain from taking, any action in his or her capacity as a director or officer of the Company or any of its Subsidiaries,
including the exercise of fiduciary duties to the Company or its stockholders, and any such action taken in such capacity or any such
inaction shall not constitute a breach of this Agreement, and the provisions of this Agreement shall not apply to such directors or officers
in their capacity as such.
10. Non-Survival
of Representations, Warranties and Covenants. Other than the covenants and agreements in Section 2.4, Section 2.6, Section 2.7,
Section 3, Section 11, Sections 13 through 28 and, solely to the extent and only for so long as the provisions and obligations
incorporated by reference in Section 4.5 survive under the terms of the Interim Investors Agreement, Section 4.5 (and
such applicable provisions incorporated by reference therein), in each case, which shall survive the Company Merger Effective Time, the
representations, warranties and covenants contained herein shall not survive the Company Merger Effective Time.
11. Waiver
of Appraisal and Dissenter Rights and Certain Other Actions. The Stockholder hereby irrevocably and unconditionally waives, to the
fullest extent of the Law, and agrees to cause to be waived and not to assert any appraisal rights, any dissenter’s rights and
any similar rights under Section 262 of the DGCL or otherwise with respect to the Owned Shares or Owned Units with respect to the
Mergers and the transactions contemplated by the Merger Agreement.
12. Certain
Adjustments. In the event of a stock split, stock dividend or distribution, or any change in the Common Stock and Focus LLC Units
by reason of any split-up, reverse stock split, recapitalization, combination, reclassification, exchange of shares or the like, the
terms “Common Stock”, “Covered Shares”, “Class A Rollover Shares”, “Rollover Units”,
“Rollover Equity”, “Owned Shares”, “Class A Owned Shares”, “Class B Owned Shares”
and “Owned Units” shall be deemed to refer to and include such shares as well as all such stock dividends and distributions
and any securities into which or for which any or all of such shares may be changed or exchanged or which are received in such transaction.
13. Further
Assurances. Parent and Stockholders shall, from time to time, execute and deliver, or cause to be executed and delivered, such additional
or further consents, documents and other instruments as Parent and the Stockholders may reasonably request to the extent necessary to
effect the transactions contemplated by this Agreement and the Merger Agreement, including any documentation necessary to effect the
Rollover in accordance with the terms hereof.
14. Notices.
All notices, requests, instructions or other communications or documents to be given or made hereunder by any party to the other parties
to this Agreement shall be in writing and (a) served by personal delivery by hand upon the part(ies) for whom it is intended, (b) served
by an internationally recognized overnight courier service upon the part(ies) for whom it is intended, (c) delivered by registered
or certified mail, return receipt requested or (d) sent by email:
if to Stockholder to:
c/o Stone Point Capital LLC
00 Xxxxxxxxx Xxxx
Greenwich, CT 06830
| Attn: | Xxxxx X. Xxxxxxxx; Xxxxx X. Xxxxxxxx |
| Email: | xxxxxxxxx@xxxxxxxxxx.xxx; xxxxxxxxx@xxxxxxxxxx.xxx |
with a copy (which will not constitute notice) to:
Xxxxxxx Xxxxxxx & Xxxxxxxx LLP
000 Xxxxxxxxx Xxxxxx
New York, NY 10017
| Attn: | Xxxxxxxxx X. Xxxxxx; Xxxx X. Xxxxx |
| Email: | xxxxxxx@xxxxxx.xxx; xxxx.xxxxx@xxxxxx.xxx |
if to Parent to:
c/o Xxxxxxx Xxxxxxxx & Xxxx,
LLC
000 Xxxx Xxxxxx, 18th Floor
New York, NY 10152
| Attn: | Xxxxx Xxxxxxx |
| Email: | xxxxxxxx@xxx-xxx.xxx |
with a copy (which will not constitute notice) to:
Xxxxxxxx &
Xxxxx LLP
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
| Attn: | Xxxxx Xxxxx, P.C.; Xxxxxxx Xxxxxx,
P.C. |
| Email: | xxxxxx@xxxxxxxx.xxx; xxxxxxx.xxxxxx@xxxxxxxx.xxx |
Xxxxxxxx & Xxxxx LLP
000 Xxxxx XxXxxxx
Chicago, IL 60654
| Attn: | Xxxxxxx Xxxxxxxx, P.C.; Xxxxx
Xxxxxxx, P.C. |
| Email: | xxxxxxxxx@xxxxxxxx.xxx; xxxxxxxx@xxxxxxxx.xxx |
If to the Company, to:
Focus
Financial Partners Inc.
000 Xxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
| Attention: | Xxxxxxx XxXxxxxxxx |
| Email: | xxxxxxxxxxx@xxxxxxxxxxxxx.xxx |
with a copy (which shall not constitute notice)
to:
Xxxxxx &
Xxxxxx L.L.P.
000 Xxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, XX 00000
| Attention: | Xxxxxxx Xxxx |
| Email: | xxxxx@xxxxx.xxx |
Xxxxxx &
Xxxxxx L.L.P.
0000 Xxxxxx xx xxx Xxxxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
| Attention: | Xxxxxxxx Xxxxxxxx |
| Email: | xxxxxxxxx@xxxxx.xxx |
and
Potter Xxxxxxxx & Xxxxxxx LLP
0000 Xxxxx Xxxxxx Xxxxxx, 0xx Floor
Wilmington, DE 19801
| Attention: | Xxxx X. Xxxxxx |
| Email: | xxxxxxx@xxxxxxxxxxxxxx.xxx |
15. Interpretation.
The headings herein are for convenience of reference only, do not constitute part of this Agreement and shall not be deemed to limit
or otherwise affect any of the provisions hereof. Where a reference in this Agreement is made to a Section or Exhibit, such reference
shall be to a Section of or Exhibit to this Agreement unless otherwise indicated. If a term is defined as one part of speech
(such as a noun), it shall have a corresponding meaning when used as another part of speech (such as a verb). Unless the context of this
Agreement clearly requires otherwise, words importing the masculine gender shall include the feminine and neutral genders and vice versa,
and the definitions of terms contained in this Agreement are applicable to the singular as well as the plural forms of such terms. The
words “includes” or “including” shall mean “including without limitation,” the words “hereof,”
“hereby,” “herein,” “hereunder” and similar terms in this Agreement shall refer to this Agreement
as a whole and not any particular section or article in which such words appear, the word “extent” in the phrase “to
the extent” shall mean the degree to which a subject or other thing extends and such phrase shall not mean simply “if,”
any reference to a Law shall include any rules and regulations promulgated thereunder, and any reference to any Law in this Agreement
shall mean such Law as from time to time amended, modified or supplemented. Currency amounts referenced herein are in U.S. Dollars. Each
reference to a “wholly-owned Subsidiary” or “wholly-owned Subsidiaries” of a Person shall be deemed to include
any Subsidiary of such Person where all of the equity interests of such Subsidiary are directly or indirectly owned by such Person (other
than directors qualifying shares, nominee shares or other equity interests that are required by Law or regulation to be held by a director
or nominee).
16. Entire
Agreement. This Agreement (along with the documents referenced herein), the Interim Investors Agreement and the Merger Agreement
collectively constitute the entire agreement, and supersede all other prior agreements, understandings, representations and warranties
both written and oral, among the parties hereto, with respect to the subject matter hereof.
17. No
Third-Party Beneficiaries. This Agreement shall be binding upon and inure solely to the benefit of the parties hereto and their respective
successors and permitted assigns, and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person
any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.
18. Governing
Law and Venue; Waiver of Jury Trial. This Agreement and any claim, cause of action or proceeding (whether at law, in contract or
in tort) that may directly or indirectly be based upon, relate to or arise out of this Agreement or any transaction contemplated hereby,
or the negotiation, execution or performance hereunder shall be governed by and construed and enforced in accordance with the Laws of
the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware
or any other jurisdiction) that would cause the application of the Laws of any jurisdictions other than the State of Delaware. In addition,
each of the parties hereto (i) irrevocably and unconditionally submits to the personal jurisdiction and venue of the Court of Chancery
of the State of Delaware and any state appellate court therefrom within the State of Delaware (or, if the Court of Chancery of the State
of Delaware does not have subject matter jurisdiction, the United States District Court for the District of Delaware or, if jurisdiction
is not then available in the United States District Court for the District of Delaware, then any Delaware state court) (the “Chosen
Courts”) in the event of any claim, cause of action or proceeding between or among the parties hereto (whether in contract,
tort, or otherwise) arising out of or relating to this Agreement or the transactions contemplated hereby, (ii) expressly waives
any claim of lack of personal jurisdiction or improper venue and any claims that such courts are an inconvenient forum with respect to
such a claim; (iii) agrees that it shall not bring any claim, cause of action or proceeding against any other parties hereto arising
out of or relating to this Agreement or the transactions contemplated hereby in any court other than the Chosen Courts and that a final
judgment in any legal proceeding in the Chosen Courts will be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by applicable Law; and (iv) agrees that it will not attempt to deny or defeat such personal jurisdiction
by motion or other request for leave from the Chosen Courts. Each of the parties irrevocably consents to the service of process of any
of the aforementioned courts in any such claim, cause of action or proceeding by the mailing of copies thereof by registered or certified
mail or by overnight courier service, postage prepaid, to its address set forth in Section 14. EACH PARTY ACKNOWLEDGES AND AGREES
THAT ANY CONTROVERSY THAT MAY ARISE PURSUANT TO THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE
EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM, CAUSE OF ACTION OR PROCEEDING (WHETHER AT LAW, IN CONTRACT, TORT OR OTHERWISE) DIRECTLY
OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY (i) CERTIFIES THAT
NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT,
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 18, (iii) UNDERSTANDS AND HAS CONSIDERED THE
IMPLICATIONS OF THIS WAIVER, AND (iv) MAKES THIS WAIVER VOLUNTARILY.
19. Assignment;
Successors. Other than as provided herein, neither this Agreement nor any of the rights, interests or obligations under this Agreement
(including those set forth in Section 2.1(a)) may be assigned or delegated, in whole or in part, by operation of Law or otherwise,
by any party hereto without the prior written consent of the other parties hereto, and any such assignment without such prior written
consent shall be null and void. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of, and
be enforceable by, the parties hereto and their respective successors and assigns.
20. Enforcement.
The parties hereto agree that irreparable damage for which monetary damages, even if available, would not be an adequate remedy would
occur in the event that the parties hereto do not perform the provisions of this Agreement (including any party hereto failing to take
such actions that are required of it hereunder in order to consummate this Agreement) in accordance with its specified terms or otherwise
breach such provisions. The parties hereto acknowledge and agree that (a) the parties hereto will be entitled, in addition to any
other remedy to which they are entitled at law or in equity, to an injunction, specific performance and other equitable relief to prevent
breaches (or threatened breaches) of this Agreement or to enforce specifically the terms and provisions hereof, (b) the parties
hereto will not assert that a remedy of monetary damages would provide an adequate remedy for such breach and (c) the right of specific
enforcement is an integral part of the transactions contemplated hereby and without that right, none of the Company, Parent, Topco, Topco
Aggregator or the Stockholder would have entered into this Agreement.
21. Non-Recourse.
This Agreement may only be enforced against, and any Action based upon, arising out of, or related to this Agreement, or the negotiation,
execution or performance of this Agreement, may only be brought against the entities that are expressly named as parties hereto and then
only with respect to the specific obligations set forth herein with respect to such party. No past, present or future director, officer,
employee, incorporator, manager, member, general or limited partner, stockholder, equityholder, controlling person, Affiliate, agent,
attorney or other Representative of any party hereto or any of their successors or permitted assigns or any direct or indirect director,
officer, employee, incorporator, manager, member, general or limited partner, stockholder, equityholder, controlling person, Affiliate,
agent, attorney, Representative, successor or permitted assign of any of the foregoing, shall have any liability to the Stockholder,
Parent, the Company, Topco or Topco Aggregator for any obligations or liabilities of any party under this Agreement or for any legal
proceeding (whether in tort, contract or otherwise) based on, in respect of or by reason of the transactions contemplated hereby or in
respect of any written or oral representations made or alleged to be made in connection herewith.
22. Severability.
In the event that any provision of this Agreement, or the application thereof, becomes or is declared by a court of competent jurisdiction
to be illegal, void or unenforceable, the remainder of this Agreement will continue in full force and effect and the application of such
provision to other Persons or circumstances will be interpreted so as reasonably to effect the intent of the parties hereto. The parties
hereto further agree to replace such void or unenforceable provision of this Agreement with a valid and enforceable provision that will
achieve, to the extent possible, the economic, business and other purposes of such void or unenforceable provision.
23. Counterparts.
This Agreement and any amendments hereto may be executed in one or more counterparts, all of which will be considered one and the same
agreement and will become effective when one or more counterparts have been signed by each of the parties hereto and delivered to the
other parties hereto, it being understood that all parties hereto need not sign the same counterpart. Any such counterpart, to the extent
delivered by electronic delivery, will be treated in all manners and respects as an original executed counterpart and will be considered
to have the same binding legal effect as if it were the original signed version thereof delivered in person. No party hereto may raise
the use of an electronic delivery to deliver a signature, or the fact that any signature or agreement or instrument was transmitted or
communicated through the use of an electronic delivery, as a defense to the formation of a contract, and each party hereto forever waives
any such defense, except to the extent such defense relates to lack of authenticity.
24. Amendment;
Waiver. This Agreement may be amended by the parties hereto, and the terms and conditions hereof may be waived, only by an instrument
in writing signed on behalf of each of the parties hereto, or, in the case of a waiver, by an instrument signed on behalf of the party
waiving compliance. No failure or delay on the part of a party in the exercise of any right or remedy hereunder shall impair such right
or power or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or agreement herein, nor shall
any single or partial exercise of any such right preclude any other or further exercise thereof or of any other right or power.
25. No
Presumption Against Drafting Party. The Company, Parent and the Stockholder acknowledge that each party to this Agreement has been
represented by counsel in connection with this Agreement and the transactions contemplated by this Agreement. Accordingly, any rule of
Law or any legal decision that would require interpretation of any claimed ambiguities in this Agreement against the drafting party has
no application and is expressly waived.
26. No
Agreement until Executed. This Agreement shall not be effective unless and until the Company Board has approved, for purposes of
any applicable anti-takeover laws and regulations, and any applicable provision of the Amended and Restated Certificate of Incorporation
of the Company, the Merger Agreement, this Agreement and the transactions contemplated by the Merger Agreement, including the Mergers.
27. No
Ownership Interest. Except as expressly provided in Section 2 with respect to the Rollover Equity, (a) nothing contained
in this Agreement shall be deemed to vest in Parent any direct or indirect ownership or incidence of ownership of or with respect to
any Covered Shares and (b) all ownership and economic benefits of and relating to the Covered Shares shall remain vested in and
belong to the Stockholder.
28. Company
Special Committee Approval. Notwithstanding any provision to the contrary, no amendment or waiver of any provision of this Agreement
shall be made by the Company or the Company Board without first obtaining the approval of the Special Committee. The Special Committee
shall direct enforcement by the Company of any provisions of this Agreement against the Stockholder.
[Signature
pages follow]
IN WITNESS WHEREOF, the parties
have caused this Agreement to be duly executed and delivered on the date and year first above written.
|
TRIDENT FFP LP |
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By: |
Trident FFP GP LLC, as general partner |
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By: |
/s/ Xxxxx Xxxxxxxx |
|
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Name: Xxxxx Xxxxxxxx |
|
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Title: Vice President and Assistant Secretary |
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|
TRIDENT VI, L.P. |
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|
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By: |
Stone Point Capital LLC, as manager |
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By: |
/s/ Xxxxx Xxxxxxxx |
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Name: Xxxxx Xxxxxxxx |
|
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Title: Managing Director and Counsel |
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TRIDENT VI PARALLEL FUND, L.P. |
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|
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By: |
Stone Point Capital LLC, as manager |
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By: |
/s/ Xxxxx Xxxxxxxx |
|
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Name: Xxxxx Xxxxxxxx |
|
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Title: Managing Director and Counsel |
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TRIDENT VI DE PARALLEL FUND, L.P. |
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|
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By: |
Stone Point Capital LLC, as manager |
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By: |
/s/ Xxxxx Xxxxxxxx |
|
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Name: Xxxxx Xxxxxxxx |
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Title: Managing Director and Counsel |
[Signature Page to Support Agreement]
IN WITNESS WHEREOF, the parties
have caused this Agreement to be duly executed and delivered on the date and year first above written.
|
Ferdinand FFP Acquisition, LLC |
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By: |
/s/ Xxxxx Xxxxxxx |
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Name: Xxxxx Xxxxxxx |
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Title: President |
|
Ferdinand FFP Ultimate Holdings, LP |
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By: |
/s/ Xxxxx
Xxxxxxx |
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Name: Xxxxx Xxxxxxx |
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Title: President |
|
Ferdinand FFP Parent, Inc. |
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By: |
/s/ Xxxxx Xxxxxxx |
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Name: Xxxxx Xxxxxxx |
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Title: President |
[Signature Page to Support Agreement]
IN WITNESS WHEREOF, the parties
have caused this Agreement to be duly executed and delivered on the date and year first above written.
[Signature Page to Support Agreement]
Exhibit A
Owned Shares
Stockholder | |
Class A
Owned Shares | | |
Class B
Owned Shares | | |
Owned Units | |
Trident FFP LP | |
| - | | |
| 8,250,165 | | |
| 8,250,165 | |
Trident VI, L.P. | |
| 955,755 | | |
| - | | |
| - | |
Trident VI Parallel Fund, L.P. | |
| 6,701,039 | | |
| - | | |
| - | |
Trident VI DE Parallel Fund, L.P. | |
| 142,016 | | |
| - | | |
| - | |
[Exhibit A to Support Agreement]
Exhibit B
Rollover Equity
Stockholder | |
Class A
Rollover Shares | | |
Class B
Rollover Shares | | |
Rollover Units | |
Trident FFP LP | |
| - | | |
| 4,125,083 | | |
| 4,125,083 | |
Trident VI, L.P. | |
| 477,877 | | |
| - | | |
| - | |
Trident VI Parallel Fund, L.P. | |
| 3,350,520 | | |
| - | | |
| - | |
Trident VI DE Parallel Fund, L.P. | |
| 71,008 | | |
| - | | |
| - | |
[Exhibit B to Support Agreement]