North America
EX-10.20 19 c63891exv10w20.htm EX-10.20 exv10w20
Exhibit 10.20
AMENDMENT TO STOCKHOLDERS AGREEMENT
THIS AMENDMENT TO STOCKHOLDERS AGREEMENT (this Amendment) is entered into as of December 29, 2006 (the Amendment Date), by and among TrustWave Holdings, Inc., a Delaware corporation (the Company), and the persons signatory hereto (the Signatories).
RECITALS
WHEREAS, the Company and its stockholders are parties to that certain Stockholders Agreement, dated as of March 14, 2005 (the Original Agreement); and
WHEREAS, all capitalized terms used in this Amendment which are not defined herein shall have the respective meanings assigned to them in the Original Agreement; and
WHEREAS, the Signatories constitute the holders of at least a majority of the issued and outstanding shares of Common Stock (on an as-converted basis); and
WHEREAS, the parties hereto desire to amend the Original Agreement as provided in this Amendment.
NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises, representations, warranties, covenants and conditions contained in this Amendment and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:
1. Addition of Stockholders. The stockholders listed on the attached Exhibit D are hereby constituted as Other Stockholders and Stockholders for all purposes of the Original Agreement, as amended by this Amendment.
2. Election of Directors. Section 1.1(b) of the Original Agreement is hereby amended to read, in its entirety, as follows:
(b) the following individuals shall be elected to the Board:
(i) two (2) individuals (the FTV Directors) nominated by Financial Technologies Management II LLC (including its Affiliates, FTV);
(ii) two (2) individuals (the TrustWave Directors) nominated by the holders (the TrustWave Majority Holders) of a majority of the issued and outstanding shares of Common Stock owned by the Persons listed on Exhibit C attached hereto (the TrustWave Common Holders);
(iii) two (2) individuals (the Kiphart Directors) nominated by Richard Kiphart (Kiphart);
(iv) two (2) individuals (the MBK Directors) nominated by MBK Ventures, LLC, an Illinois limited liability company (MBK); and
(v) one (1) individual (the SecurePipe Director) nominated by the holders (the SecurePipe Majority Holders) of either (A) a majority of the issued and outstanding shares of Common Stock owned by the Persons listed on Exhibit D attached hereto (the SecurePipe Major Holders) or, (B) if such a majority of the SecurePipe Common Holders cannot be obtained, a plurality of the issued and outstanding shares of Common Stock owned by the SecurePipe Major Holders.
3. Election of SecurePipe Director. The undersigned hereby approve and elect ___________ to serve on the Board of Directors of the Company as the SecurePipe Director until his successor is duly elected and qualified in accordance with the provisions of the Agreement, as amended by this Amendment, and the Companys Bylaws.
4. Vacancies and Removal. Section 1.2 of the Original Agreement is amended by inserting a new subsection (g) to read, in its entirety, as follows:
(g) The Stockholders shall vote all of their shares of capital stock of the Company to cause any SecurePipe Director to be removed during his or her term of office, when and only when they are so directed to be removed in writing by SecurePipe Majority Holders or for Cause.
5. Right to Appoint Directors. Section 1.3 of the Original Agreement is amended by inserting new subsections (g) and (h) to read, in their entireties, as follows:
(g) SecurePipe Common Holders. At such time as the holders of Common Stock who received such Common Stock pursuant to that certain Agreement and Plan of Merger and Reorganization by and among the Company, SecurePipe, Inc. and certain stockholders of SecurePipe, Inc. the (SecurePipe Common Holders) hold less than twenty percent (20%) of the shares of Common Stock held by the SecurePipe Common Holders on the date hereof, the SecurePipe Majority Holders shall not be entitled to nominate any SecurePipe Director to the Board pursuant to Section 1.1(b) and the obligations of the other Stockholders to vote their shares in favor of election of the SecurePipe Majority Holders nominee under Section 1.1(b), and the obligations of the other Stockholders to vote to remove any SecurePipe Director under Section 1.2, shall terminate and be of no further force or effect. For so long as the SecurePipe Majority Holders are entitled to nominate a SecurePipe Director to the Board pursuant to Section 1.1(b), the Board shall not create any committee other than the Compensation Committee and the Audit Committee without offering to include on any such committee the SecurePipe Director.
(h) SecurePipe Observer. The SecurePipe Majority Holders shall have the right to appoint one representative (a SecurePipe Observer), who initially shall be ____________, from time to time who shall: (a) receive notice of all meetings of the Board and each committee thereof (such notice to be delivered or mailed as specified
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herein at the same time as notice is given to the members of such Board and/or committee); (b) be entitled to attend (or, in the case of telephone meetings, monitor) all such meetings; (c) receive all notices, information and reports which are furnished to the members of such board and/or committee at the same time and in the same manner as the same is furnished to any such member; (d) be entitled to participate in all discussions conducted at such meetings; and (e) receive as soon as available (but in any event prior to the next succeeding meeting of such board and/or committee) copies of the minutes of all such meetings. If any action is proposed to be taken by such Board and/or committee by written consent in lieu of a meeting, the Company will give written notice thereof to such SecurePipe Observer. The rights granted to the SecurePipe Majority Holders under this Section may not be transferred by the SecurePipe Majority Holders to any party. All expenses related to the SecurePipe Observers participation shall be borne exclusively by the SecurePipe Majority Holders.
6. Definition of Eligible Stockholders. The definition of the term Eligible Stockholders for purposes of Sections 3.2 and 3.3 of the Original Agreement, as amended by this Amendment, is hereby amended to mean any Stockholder holding at least 100,000 Shares (as adjusted for stock splits and on an as-converted basis) as of the Amendment Date and as of the date of the Offer.
7. Modification or Amendment. Section 4.9 of the Original Agreement is hereby amended to read, in its entirety, as follows:
4.9 Modification or Amendment. Neither this Agreement nor any provision hereof can be modified, amended, changed, discharged or terminated except by an instrument in writing, signed by at least a majority of the issued and outstanding shares of Common Stock (on an as-converted basis); provided, that (x) Sections 1.1(b)(i), 1.2(b) and 1.3(a) may not be modified, amended, changed, discharged or terminated without the written consent of FTV, Sections 1.1(b)(iii), 1.2(c) and 1.3(b) may not be modified, amended, changed, discharged or terminated without the written consent of Kiphart, Sections 1.1(b)(ii), 1.2(d) and 1.3(d) may not be modified, amended, changed, discharged or terminated without the written consent of TrustWave Majority Holders, Sections 1.1(b)(iv), 1.2(e) and 1.3(c) may not be modified, amended, changed, discharged or terminated without the written consent of MBK, and Sections 1.1(b)(v), 1.2(g), 1.3(g) and 1.3(h), may not be modified, amended, changed, discharged or terminated without the written consent of the SecurePipe Majority Holders, and (y) Section 2.1 may not be modified, amended, changed, discharged or terminated without the written consent of the holders of at least 66 2/3% of the then outstanding shares of Series A Preferred, Section 2.2 may not be modified, amended, changed, discharged or terminated without the written consent of TrustWave Majority Holders and Section 2.3 may not be modified, amended, changed, discharged or terminated without the written consent of MBK; provided further that, any such amendment, modification, change, discharge, termination or waiver that would adversely affect the rights hereunder of any Stockholder in its capacity as a Stockholder, without similarly affecting the rights hereunder of all Stockholders of such class, in their capacities as Stockholders of such class, shall not be effective as to such Stockholder without its prior approval. The inclusion of additional
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Persons as parties to this Agreement pursuant to a counterpart signature page or joinder agreement approved by the Company shall not require an amendment to this Agreement.
8. No Other Amendments. Except as expressly amended by this Amendment, all of the terms and provisions of the Original Agreement shall remain in full force and effect.
9. Counterparts. This Amendment may be executed by facsimile and in counterparts, each of which shall be an original, but all of which together shall constitute one instrument.
[Signature Page Follows]
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the Amendment Date.
COMPANY: | ||||||||
TRUSTWAVE HOLDINGS, INC. | ||||||||
By: | /s/ Robert McCullen | |||||||
Name: | Robert McCullen | |||||||
Title: | Chief Executive Officer | |||||||
STOCKHOLDERS: | ||||||||
Financial Technology Ventures II (Q), L.P. | ||||||||
By: | Financial Technology Management II, LLC | |||||||
By: | /s/ Richard N. Garman | |||||||
Name: | Richard N. Garman | |||||||
Title: | Chief Executive Officer | |||||||
Financial Technology Ventures II, L.P. | ||||||||
By: | Financial Technology Management II, LLC | |||||||
By: | /s/ Richard N. Garman | |||||||
Name: | Richard N. Garman | |||||||
Title: | Chief Executive Officer | |||||||
/s/ Richard Kiphart | ||||||||
Richard Kiphart | ||||||||
/s/ David Valentine | ||||||||
David Valentine | ||||||||
/s/ Joseph L. Patanella | ||||||||
Joseph L. Patanella |
SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT
/s/ Phillip J. Smith | ||||
Phillip J. Smith | ||||
MBK Ventures, LLC | ||||
By: | /s/ Robert McCullen | |||
Name: | Robert McCullen | |||
Title: | Manager | |||
[SECUREPIPE HOLDERS] |
SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT
ARGENTUM CAPITAL PARTNERS II, L.P. By: Argentum Partners II, L.L.C. | ||||||||
By: | /s/ Walter Barandiaran- | |||||||
Its: | ||||||||
PRISM OPPORTUNITY FUND IV, L.P. By: POF Partners SBIC, Inc., its General Partner | ||||||||
By: | /s/ Robert A. Funkel | |||||||
Its: | President | |||||||
THE PRODUCTIVITY FUND IV, L.P. By: First Analysis Management Company IV, L.L.C., its General Partner By: First Analysis Venture Operations and Research, L.L.C., its Member By: First Analysis Corporation, its Manager | ||||||||
By: | /s/ Howard S. Smith | |||||||
THE PRODUCTIVITY FUND IV ADVISORS FUND, L.P. By: First Analysis Management Company IV, L.L.C., its General Partner By: First Analysis Venture Operations and Research, L.L.C., its Member By: First Analysis Corporation, its Manager | ||||||||
By: | /s/ Howard S. Smith | |||||||
FA PRIVATE EQUITY FUND IV, L.P. By: FA Private Equity Management IV, L.L.C., its General Partner By: First Analysis Private Equity Management Company IV, L.L.C., its Managing Member By: First Analysis Venture Operations and Research, L.L.C., its Managing Member By: First Analysis Corporation, its Manager | ||||||||
By: | /s/ Howard S. Smith | |||||||
/s/ Marvin Lader | ||||||||
Marvin Lader | ||||||||
/s/ James Macdonald | ||||||||
James Macdonald | ||||||||
/s/ Jason Penn | ||||||||
Jason Penn | ||||||||
/s/ Arch Moesta | ||||||||
Arch P. Moesta | ||||||||
/s/ Dan Sterling | ||||||||
Dan Sterling | ||||||||
/s/ Susan Sterling | ||||||||
Susan Sterling | ||||||||
/s/ Art Roldan | ||||||||
Art Roldan | ||||||||
/s/ Lawrence Levine | ||||||||
Lawrence Levine | ||||||||
/s/ Lawrence Levine | ||||||||
Comet Capital LLC Lawrence Levine, Manager | ||||||||
/s/ Daniel T. Moesta | ||||||||
Daniel T. Moesta | ||||||||
Maxwell Guy and Cynthia Diane Morgan Revocable Trust dated November 15, 2002 | ||||||||
By: | /s/ Maxwell Guy | |||||||
Georgy Milliken, Trustee Milliken Family Trust | ||||||||
By: | /s/ George Miliken | |||||||
SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT
/s/ Michael Kiefer | ||||||||
Michael Kiefer | ||||||||
Purdy Family 2000 Trust, dated February 29, 2000 | ||||||||
By: | /s/ Allen R. Purdy, Trustee | |||||||
Wonder Trust and Abundance Trust | ||||||||
By: | /s/ Shannon C. Kiklenny, Trustee of Abundance Trust | |||||||
By: | /s/ Kathleen A. Currey, Trustee of Wonder Trust | |||||||
The Billow Family Trust, dated May 10, 1999 | ||||||||
By: | /s/ [illegible signature] | |||||||
/s/ Charles A. Higdon | ||||||||
Charles A. Higdon | ||||||||
/s/ Wayne C. Hardwick | ||||||||
Wayne C. Hardwick | ||||||||
/s/ Sally P. Hardwick | ||||||||
Sally P. Hardwick | ||||||||
/s/ Delois S. Morgan | ||||||||
/s/ Nancy A. DOnofrio | ||||||||
Nancy A. DOnofrio | ||||||||
/s/ Richard C. Conrad | ||||||||
Richard C. Conrad | ||||||||
/s/ Barbara J. Conrad | ||||||||
Barbara J. Conrad |
SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT
/s/ Kendall Risselada | ||||||||
Kendall Riss | ||||||||
/s/ John Silva | ||||||||
John Silva | ||||||||
/s/ Elizabeth Breslin | ||||||||
Elizabeth Breslin | ||||||||
Maxwell Guy and Cynthia Diann Morgan Revocable Trust, dated November 15, 2002 | ||||||||
By: | /s/ Maxwell Morgan, Trustee | |||||||
George Milliken, Trustee Milliken Family Trust | ||||||||
By: | /s/ George Milliken | |||||||
SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT
EXHIBIT D
List of SecurePipe Major Holders