FALSE000170305600017030562022-12-092022-12-09


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
 Date of Report (Date of earliest event reported): December 9, 2022
ADT Inc.
(Exact name of registrant as specified in its charter)
Delaware001-3835247-4116383
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
1501 Yamato Road
Boca Raton, Florida 33431
(Address of principal executive offices)

(561) 988-3600
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareADTNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o




Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(e) 2020 Special RSU Awards
On March 9, 2020, pursuant to the ADT Inc. 2018 Omnibus Incentive Plan (the “2018 Plan”), the Company granted certain key employees of the Company restricted stock units (“RSUs”) pursuant to the terms and conditions of the Restricted Stock Unit Special Equity Award Agreement (each, a “Special RSU Award Agreement”) and the 2018 Plan. Each Special RSU Award Agreement provided that the award holder may transfer a certain number of shares of common stock, par value $0.01 per share, of the Company (“Common Stock”) received upon settlement of the RSUs equal to the product of (a) the net shares of Common Stock that had previously been delivered upon settlement of the RSUs, after satisfying any applicable U.S. federal, state and local tax withholding obligations and non-U.S. tax withholding obligations (such net shares, the “Award Shares”) and (b) a fraction equal to the proportion of shares of Common Stock owned by the investment funds managed, sponsored or advised by Apollo Management VIII, L.P. (collectively, “Apollo”) that are sold or otherwise disposed of by Apollo (the product of the calculation described in clauses (a) and (b), the “Transferable Shares”).
On December 9, 2022, the Compensation Committee of the Board, acting by unanimous written consent, acknowledged and clarified that, following such date, the aggregate number of Transferable Shares under each Special RSU Award Agreement, as determined from time to time, will be equal to the product of (a) (x) the Award Shares plus (y) the net shares of Common Stock that are delivered upon any future settlement of RSUs, after satisfying any applicable U.S. federal, state and local tax withholding obligations and non-U.S. tax withholding obligations and (b) the Apollo Sale Percentage (as defined in the MIRA Amendment).
MIRA Amendment
On December 9, 2022, after discussions between Prime Security Services TopCo Parent, L.P. (“TopCo Parent”) and certain officers of the Company, Topco Parent entered into Amendment No. 1 to Amended and Restated Management Investor Rights Agreement (the “MIRA Amendment”), amending that certain Amended and Restated Management Investor Rights Agreement, dated as of January 23, 2018 (the “MIRA”), among TopCo Parent, the Company and certain Holders (as defined in the MIRA) thereof.
Pursuant to the MIRA Amendment, (a) all Subject Shares (as defined in the MIRA Amendment) will have Piggy-Back Registration Rights (as defined in the MIRA) without regard to further proceeds received or consideration paid for Common Stock by TopCo Parent, (b) only Subject Shares will be subject to the MIRA, (c) holders of Subject Shares may Dispose (as defined in the MIRA) of vested Subject Shares in proportion to the Apollo Sale Percentage and (d) the MIRA will be terminated upon such time as the Majority Stockholders (as defined in the MIRA Amendment) no longer collectively beneficially own at least 25% of the outstanding shares of Common Stock on an as-converted basis.
The foregoing description of the MIRA Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the MIRA Amendment, which is filed as Exhibit 10.1 to this Current Report on Form 8-K, and the MIRA, which was filed as Exhibit 10.39 to the Company’s Annual Report on Form 10-K for fiscal year 2017.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
ExhibitDescription
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:December 15, 2022ADT Inc.
By:/s/ Richard S. Mattessich
Richard S. Mattessich
Vice President and Deputy General Counsel, Corporate & Securities


EXECUTION VERSION AMENDMENT NO. 1 TO AMENDED AND RESTATED MANAGEMENT INVESTOR RIGHTS AGREEMENT This AMENDMENT NO. 1 TO AMENDED AND RESTATED MANAGEMENT INVESTOR RIGHTS AGREEMENT (this “Amendment”) is made as of December 9, 2022 (the “Effective Date”) and amends the Amended and Restated Management Investor Rights Agreement, dated as of January 23, 2018 (the “Original Agreement” and, as amended by this Amendment, the “Amended Agreement”), among Prime Security Services TopCo Parent, L.P., a Delaware limited partnership (“TopCo Parent”), ADT Inc., a Delaware corporation (the “Company”), and certain Holders (as defined in the Original Agreement) thereof. Capitalized terms used herein but not defined herein are as defined in the Original Agreement. WHEREAS, in connection with the initial public offering of the Company (the “IPO”), certain holders of Class B-1, B-2 and B-3 Units of TopCo Parent (collectively, “Class B Units”) (a) received in redemption of such Class B Units a distribution of shares of common stock, par value $0.01 per share, of the Company (“Common Stock” and, such shares of Common Stock received in redemption of Class B Units, the “Distributed Shares”) and (b) received pursuant to a Nonqualified Stock Option Award Agreement under the Company’s 2018 Omnibus Incentive Plan, as amended and restated from time to time (the “2018 Plan”), options to acquire shares of Common Stock (the “Top-Up Options” and, the shares of Common Stock received from time to time upon exercise of vested Top-Up Options, the “Top-Up Option Shares”), which Distributed Shares and Top-Up Options were subject to the same vesting conditions and schedule applicable to any such holder’s Class B Units immediately prior to the redemption thereof; WHEREAS, under the Company’s 2016 Equity Incentive Plan, as amended and restated from time to time (the “2016 Plan”), Prime Security Services Parent, Inc. awarded to certain employees options to acquire shares of Common Stock (the “2016 Options” and, the shares of Common Stock received from time to time upon exercise of vested 2016 Options, the “2016 Option Shares”); WHEREAS, in connection with the IPO, the Company awarded to certain executives of the Company (a) grants of vested shares of Common Stock pursuant to a Common Stock Award Agreement under the 2018 Plan and (b) grants of restricted shares of Common Stock pursuant to a Restricted Stock Award Agreement under the 2018 Plan, in each case, in place of retention bonuses awarded prior to the IPO (collectively, the “Retention Bonus Shares” and, together with the Distributed Shares, the Top-Up Option Shares and the 2016 Option Shares, the “Subject Shares”); WHEREAS, TopCo Parent desires to amend certain provisions of the Original Agreement to: (a) clarify that Holders of all Subject Shares have Piggy-Back Registration Rights without regard to further proceeds received or consideration paid for Common Stock by TopCo Parent; 2 (b) clarify that only Subject Shares are subject to the Agreement; (c) clarify that Holders can Dispose of vested Subject Shares in proportion to the Apollo Sale Percentage (as defined below); and (d) provide for termination of the Agreement in relation to future aggregate holdings by certain affiliates of Apollo Global Management, Inc. (“Apollo Global Management”); and WHEREAS, pursuant to Section 15.4 of the Original Agreement, except as otherwise expressly set forth therein, the Original Agreement may only be modified or amended by an instrument in writing duly executed and delivered by TopCo Parent. NOW, THEREFORE, the Original Agreement is amended as set forth below: 1. Definitions. As used in this Amendment: “Apollo Sale Percentage” means, as of the applicable time, a fraction, (x) the numerator of which shall be (i) 641,114,368 shares of Common Stock (such number of shares, the “Measurement Amount”), minus (ii) the aggregate number of shares of Common Stock held by the Majority Stockholders as of such applicable time, and (y) the denominator of which shall be the Measurement Amount; provided that should the Apollo Sale Percentage decrease as a result of the acquisition by the Majority Stockholders of additional shares of Common Stock, the Apollo Sale Percentage shall be calculated in such a manner as to not give effect to such acquisition(s). “Majority Stockholders” mean, collectively, Prime Security Services TopCo (ML), L.P., a Delaware limited partnership, Prime Security Services TopCo (ML II), L.P., a Delaware limited partnership and any Apollo Funds. 2. Amendments to the MIRA. Notwithstanding anything to the contrary in the Original Agreement but subject to the other terms and conditions of this Amendment: (a) Holders of vested Subject Shares shall be permitted to make Dispositions of such Subject Shares in an aggregate amount not to exceed the product of (i) the aggregate number of the Holder’s Subject Shares that have vested (whether or not such Subject Shares have been previously disposed), multiplied by (ii) the then-applicable Apollo Sale Percentage. (b) Section 1 of the Original Agreement is hereby amended by: (i) Adding the following paragraph as the first paragraph in Section 1: Notwithstanding anything herein to the contrary, only Subject Shares shall be subject to the terms and conditions of this Agreement. (ii) Amending and restating the definition of “Management Shares” to read as follows: 3 “Management Shares” means all Subject Shares. (iii) Adding the following new defined term in appropriate alphabetical order: “Subject Shares” has the meaning ascribed to such term in Amendment No. 1 to Amended and Restated Management Investor Rights Agreement, dated as of December 8, 2022, entered into by TopCo Parent. (c) Section 10.10(c) of the Original Agreement is hereby amended by deleting the first proviso therein, replacing the text “and provided, further” in the second proviso therein with the text “provided, however” and removing clause (D) of the second proviso therein. (d) Section 15.5 of the Original Agreement is hereby amended and restated in its entirety to read as follows: 15.5 Termination. This Agreement shall terminate automatically upon: (a) the dissolution of the Company, (b) the consummation of a Control Disposition or (c) such time as the Majority Stockholders no longer collectively beneficially own at least 25% of the outstanding shares of Common Stock on an as-converted basis. 3. Effectiveness. This Amendment shall become effective as of and from the Effective Date. 4. Effect of Amendment. Except as specifically contemplated hereby, the Original Agreement shall remain unchanged and in full force and effect. References in the Original Agreement to “this Agreement”, “herein”, “hereunder”, “hereto”, “hereof” and words of similar import shall refer to the Original Agreement as amended hereby, and references to the date of the Original Agreement, and references to the “date hereof”, “the date of this Agreement” or words of similar meaning in the Original Agreement, shall continue to refer to January 23, 2018. 5. Headings. The headings of this Amendment are for the purposes of reference only and shall not affect the construction of this Amendment. 6. Miscellaneous. The provisions of Section 8 (Notices), Section 12 (Confidentiality), Section 15.2 (Binding Effect), Section 15.3 (Governing Law), Section 15.4 (Amendment), Section 15.13 (Entire Agreement) and Section 15.14 (Third-Party Beneficiaries) of the Original Agreement are incorporated herein by reference, mutatis mutandis. [Signature Pages Follow] [Signature Page to Amendment No. 1 to Management Investor Rights Agreement] IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written. PRIME SECURITY SERVICES TOPCO PARENT, L.P. By: PRIME SECURITY SERVICES TOPCO PARENT GP, LLC, its general partner By: Name: James Elworth Title: Vice President