Document:

REGISTRATION RIGHTS
AGREEMENT

    

    This
Registration Rights Agreement (this “Agreement”) is made
and entered into as of June 30, 2009, by and among Avantair, Inc., a Delaware
corporation (the “Company”) and each of
the several purchasers signatory hereto (each such purchaser, a “Purchaser” and,
collectively, the “Purchasers”).

     

    This
Agreement is made pursuant to the Securities Purchase Agreement, dated as of the
date hereof, by and among the Company and each Purchaser (the “Purchase
Agreement”).

     

    The
Company and each Purchaser hereby agrees as follows:

     

    1.           Definitions.

     

    Capitalized
terms used and not otherwise defined herein that are defined in the Purchase
Agreement shall have the meanings given such terms in the Purchase Agreement. As
used in this Agreement, the following terms shall have the following
meanings:

     

    “Advice” shall have
the meaning set forth in Section 6(d).

     

    “Effectiveness Date”
means, with respect to the Initial Registration Statement required to be filed
hereunder, the 90th
calendar day following the date filed and with respect to any additional
Registration Statements which may be required pursuant to Section 3(c), the
60th
calendar day following the date on which an additional Registration Statement is
required to be filed hereunder; provided, however, that in the
event the Company is notified by the Commission that one or more of the above
Registration Statements will not be reviewed or is no longer subject to further
review and comments, the Effectiveness Date as to such Registration Statement
shall be the fifth Trading Day following the date on which the Company is so
notified if such date precedes the dates otherwise required above.

     

    “Effectiveness Period”
shall have the meaning set forth in Section 2(a).

     

    “Filing Date” means,
with respect to the Initial Registration Statement required hereunder, the later
of (x) 45 days after the Initial Closing (as defined in the Purchase Agreement)
and (y) August 13, 2009 and, with respect to any additional Registration
Statements which may be required pursuant to Section 3(c), the date, following
the date on which the Company is permitted by SEC Guidance to file such
additional Registration Statement related to the Registrable Securities when the
Company, in the use of its commercially reasonable efforts, can file such
additional Registration Statement..

     

    “Holder” or “Holders” means the
holder or holders, as the case may be, from time to time of Registrable
Securities.

     

    “Holders’ Counsel”
means one counsel satisfactory to EBC serving as counsel to all of the Holders
with respect to the Registration Statements to be filed hereunder and related
matters.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    “Indemnified Party”
shall have the meaning set forth in Section 5(c).

     

    “Indemnifying Party”
shall have the meaning set forth in Section 5(c).

     

    “Initial Registration
Statement” means the initial Registration Statement filed pursuant to
this Agreement.

     

    “Losses” shall have
the meaning set forth in Section 5(a).

     

    “Plan of Distribution”
shall have the meaning set forth in Section 2(a).

     

    “Prospectus” means the
prospectus included in a Registration Statement (including, without limitation,
a prospectus that includes any information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A
promulgated by the Commission pursuant to the Securities Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Securities covered by a Registration
Statement, and all other amendments and supplements to the Prospectus, including
post-effective amendments, and all material incorporated by reference or deemed
to be incorporated by reference in such Prospectus.

     

    “Registrable
Securities” means (a) all of the Shares, (b) all Warrant Shares (assuming
on the date of determination the Warrants are exercised in full without regard
to any exercise limitations therein), (c) any additional shares of Common Stock
issuable in connection with any anti-dilution provisions in the Warrants
(without giving effect to any limitations on exercise set forth in the Warrants)
and (d) any securities issued or issuable upon any stock split, dividend or
other distribution,  recapitalization or similar event with respect to
the foregoing; provided, however, that the
Company shall not be required to maintain the effectiveness, or file another
Registration Statement hereunder, with respect to any Registrable Securities
that are eligible for resale without restriction pursuant to Rule 144
promulgated by the Commission pursuant to a written opinion letter of Company’s
counsel to such effect, addressed, delivered and acceptable to the Transfer
Agent and the affected Holders.

     

    “Registration
Statement” means any registration statement required to be filed
hereunder pursuant to Section 2(a) and any additional registration statements
contemplated by Section 3(c), including (in each case) the Prospectus,
amendments and supplements to any such registration statement or Prospectus,
including pre- and post-effective amendments, all exhibits thereto, and all
material incorporated by reference or deemed to be incorporated by reference in
any such registration statement.

     

    “Rule 415” means Rule
415 promulgated by the Commission pursuant to the Securities Act, as such Rule
may be amended or interpreted from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same
purpose and effect as such Rule.

     

    “Rule 424” means Rule
424 promulgated by the Commission pursuant to the Securities Act, as such Rule
may be amended or interpreted from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same
purpose and effect as such Rule.

    
      
         

      

      
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    “Selling Stockholder
Questionnaire” shall have the meaning set forth in Section
3(a).

     

    “SEC Guidance” means
(i) any publicly-available written or oral guidance, comments, requirements or
requests of the Commission staff and (ii) the Securities Act.

     

    2.           Registration.

     

    (a)          The
Company shall use its best effort to, on or prior to each Filing Date, prepare
and file with the Commission a Registration Statement on Form S-1 (or, if the
Company is then eligible, on Form S-3) covering the resale of all the
Registrable Securities as an offering to be made on a continuous basis pursuant
to Rule 415.  The Registration Statement prepared pursuant hereto
shall be on another appropriate form in accordance herewith) and shall contain
(unless otherwise directed by at least a majority in interest of the
Holders) substantially the “Plan of Distribution”
attached hereto as Annex
A.  Subject to the terms of this Agreement, the Company shall
use its best efforts to cause a Registration Statement to be declared effective
under the Securities Act by the applicable Effectiveness Date, and shall use its
best efforts to keep such Registration Statement continuously effective under
the Securities Act until all Registrable Securities covered by such Registration
Statement have been sold, or may be sold without restrictions pursuant to Rule
144, as determined by the counsel to the Company pursuant to a written opinion
letter to such effect, addressed and acceptable to the Transfer Agent and the
affected Holders (the “Effectiveness
Period”).

     

    (b)         If the Initial Registration Statement is not
filed on or prior to its Filing Date (any such failure being referred to as an
“Event” and the
date on which such Event occurs being referred to as “Event Date”), then,
in addition to any other rights the Holders may have hereunder or under
applicable law, on each such Event Date and on each monthly anniversary of each
such Event Date (if the Event shall not have been cured by such date) until the
Event is cured, the Company shall pay to each Holder an amount in cash, as
partial liquidated damages and not as a penalty, equal to 1% of the aggregate
purchase price paid by such Holder pursuant to the Purchase Agreement for any
unregistered Registrable Securities then held by such Holder.  The
parties agree that the Company shall not be liable for liquidated damages under
this Agreement with respect to any unexercised Warrants or Warrant
Shares.  If the Company fails to pay any partial liquidated damages
pursuant to this Section in full within seven days after the date payable, the
Company will pay interest thereon at a rate of 1% per annum (or such lesser
maximum amount that is permitted to be paid by applicable law) to the Holder,
accruing daily from the date such partial liquidated damages are due until such
amounts, plus all such interest thereon, are paid in full. The partial
liquidated damages pursuant to the terms hereof shall apply on a daily pro rata
basis for any portion of a month prior to the cure of an Event.

     

    3.           Registration
Procedures.

     

    In
connection with the Company’s registration obligations hereunder, the Company
shall:

    
      
         

      

      
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    (a)         Prior
to the filing of each Registration Statement and prior to the filing of any
related Prospectus or any amendment or supplement thereto (including any
document that would be incorporated or deemed to be incorporated therein by
reference), the Company shall (i) furnish to Holders’ Counsel copies of all such
documents proposed to be filed at such time as to provide Holders’ Counsel with
a reasonable amount of time to review same, which documents (other than those
incorporated or deemed to be incorporated by reference) will be subject to the
reasonable and timely review of Holders’ Counsel, and (ii) cause its officers
and directors, counsel and independent registered public accountants to respond
to such inquiries as shall be necessary, in the reasonable opinion of Holders’
Counsel, to conduct a reasonable investigation within the meaning of the
Securities Act. The Company shall not file a Registration Statement or any such
Prospectus or any amendments or supplements thereto to which Holders’ Counsel
shall reasonably object in good faith, provided that, the Company is notified of
such objection in writing prior to such filing.

     

    (b)         (i)
Prepare and file with the Commission such amendments, including post-effective
amendments, to a Registration Statement and the Prospectus used in connection
therewith as may be necessary to keep a Registration Statement continuously
effective as to the applicable Registrable Securities for the Effectiveness
Period and prepare and file with the Commission such additional Registration
Statements in order to register for resale under the Securities Act all of the
Registrable Securities, (ii) cause the related Prospectus to be amended or
supplemented by any required Prospectus supplement (subject to the terms of this
Agreement), and, as so supplemented or amended, to be filed pursuant to Rule
424, (iii) respond as promptly as reasonably possible to any comments received
from the Commission with respect to a Registration Statement or any amendment
thereto, and (iv) comply in all material respects with the provisions of the
Securities Act and the Exchange Act with respect to the disposition of all
Registrable Securities covered by a Registration Statement during the applicable
period in accordance (subject to the terms of this Agreement) with the intended
methods of disposition by the Holders thereof set forth in such Registration
Statement as so amended or in such Prospectus as so supplemented.

     

    (c)          If
during the Effectiveness Period, the number of Registrable Securities at any
time exceeds 100% of the number of shares of Common Stock then registered in a
Registration Statement, then the Company shall file as soon as reasonably
practicable, but in any case prior to the applicable Filing Date, an additional
Registration Statement covering the resale by the Holders of not less than the
number of such Registrable Securities.

    
      
         

      

      
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    (d)         Notify
EBC as representative of the Holders for the purposes prescribed in this Section
(which notice shall, pursuant to clauses (iii) through (vi) hereof, be
accompanied by an instruction to suspend the use of the Prospectus until the
requisite changes have been made) as promptly as reasonably possible (and, in
the case of (i)(A) below, not less than one Trading Day prior to such filing)
and (if requested by any such Person) confirm such notice in writing no later
than one Trading Day following the day (i)(A) when a Prospectus or any
Prospectus supplement or post-effective amendment to a Registration Statement is
proposed to be filed, (B) when the Commission notifies the Company whether there
will be a “review” of such Registration Statement and whenever the Commission
comments in writing on such Registration Statement, and (C) with respect to a
Registration Statement or any post-effective amendment, when the same has become
effective, (ii) of any request by the Commission or any other federal or state
governmental authority for amendments or supplements to a Registration Statement
or Prospectus or for additional information, (iii) of the issuance by the
Commission or any other federal or state governmental authority of any stop
order suspending the effectiveness of a Registration Statement covering any or
all of the Registrable Securities or the initiation of any Proceedings for that
purpose; (iv) of the receipt by the Company of any notification with respect to
the suspension of the qualification or exemption from qualification of any of
the Registrable Securities for sale in any jurisdiction, or the initiation or
threatening of any Proceeding for such purpose, (v) of the occurrence of any
event or passage of time that makes the financial statements included in a
Registration Statement ineligible for inclusion therein or any statement made in
a Registration Statement or Prospectus or any document incorporated or deemed to
be incorporated therein by reference untrue in any material respect or that
requires any revisions to a Registration Statement, Prospectus or other
documents so that, in the case of a Registration Statement or the Prospectus, as
the case may be, it will not contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading and (vi) of the occurrence or existence of any pending
corporate development with respect to the Company that the Company believes may
be material and that, in the determination of the Company, makes it not in the
best interest of the Company to allow continued availability of a Registration
Statement or Prospectus, provided that, any and all of such information shall
remain confidential to each Holder until such information otherwise becomes
public, unless disclosure by a Holder is required by law; provided, further, that
notwithstanding each Holder’s agreement to keep such information confidential,
each such Holder makes no acknowledgement that any such information is material,
non-public information.

     

    (e)         Use
its best efforts to avoid the issuance of, or, if issued, obtain the withdrawal
of (i) any order stopping or suspending the effectiveness of a Registration
Statement, or (ii) any suspension of the qualification (or exemption from
qualification) of any of the Registrable Securities for sale in any
jurisdiction, at the earliest practicable moment.

     

    (f)        
Furnish to Holders’ Counsel, without charge, at least one conformed copy of each
such Registration Statement and each amendment thereto, including financial
statements, but excluding, schedules, all documents incorporated or deemed to be
incorporated therein by reference and all Exhibit except to the extent requested
by such Person, promptly after the filing of such documents with the Commission;
provided, that any such item which is available on the EDGAR system need not be
furnished in physical form.

     

    (g)         Subject
to the terms of this Agreement, the Company hereby consents to the use of such
Prospectus and each amendment or supplement thereto by each of the selling
Holders in connection with the offering and sale of the Registrable Securities
covered by such Prospectus and any amendment or supplement thereto, except after
the giving of any notice pursuant to Section 3(d).

     

    (h)         The
Company shall cooperate with any broker-dealer through which a Holder proposes
to resell its Registrable Securities in effecting a filing with the FINRA
Corporate Financing Department pursuant to NASD Rule 2710, as requested by any
such Holder, and the Company shall pay the filing fee required by such filing
within five (5) Business Days of request therefor.

    
      
         

      

      
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    (i)          Prior
to any resale of Registrable Securities by a Holder, use its commercially
reasonable efforts to register or qualify or cooperate with the selling Holders
in connection with the registration or qualification (or exemption from the
Registration or qualification) of such Registrable Securities for the resale by
the Holder under the securities or Blue Sky laws of such jurisdictions within
the United States as any Holder reasonably requests in writing, to keep each
registration or qualification (or exemption therefrom) effective during the
Effectiveness Period and to do any and all other acts or things reasonably
necessary to enable the disposition in such jurisdictions of the Registrable
Securities covered by each Registration Statement; provided, that, the Company
shall not be required to qualify generally to do business in any jurisdiction
where it is not then so qualified, subject the Company to any material tax in
any such jurisdiction where it is not then so subject or file a general consent
to service of process in any such jurisdiction.

     

    (j)          If
requested by a Holder, cooperate with such Holders to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to
be delivered to a transferee pursuant to a Registration Statement, which
certificates shall be free, to the extent permitted by the Purchase Agreement,
of all restrictive legends, and to enable such Registrable Securities to be in
such denominations and registered in such names as any such Holder may
request.

     

    (k)         Upon
the occurrence of any event contemplated by Section 3(d), as promptly as
reasonably possible under the circumstances taking into account the Company’s
good faith assessment of any adverse consequences to the Company and its
stockholders of the premature disclosure of such event, prepare a supplement or
amendment, including a post-effective amendment, to a Registration Statement or
a supplement to the related Prospectus or any document incorporated or deemed to
be incorporated therein by reference, and file any other required document so
that, as thereafter delivered, neither a Registration Statement nor such
Prospectus will contain an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading. If the Company notifies the
Holders in accordance with clauses (iii) through (vi) of Section 3(d) above to
suspend the use of any Prospectus until the requisite changes to such Prospectus
have been made, then the Holders shall suspend use of such
Prospectus.  The Company will use its best efforts to ensure that the
use of the Prospectus may be resumed as promptly as is
practicable.  The Company shall be entitled to exercise its right
under this Section 3(k) to suspend the availability of a Registration Statement
and Prospectus for a period not to exceed 60 calendar days (which need not be
consecutive days) in any 12 month period.

     

    (l)           Comply
with all applicable rules and regulations of the Commission.

     

    (m)        The
Company may require each selling Holder to furnish to the Company a certified
statement as to the number of shares of Common Stock beneficially owned by such
Holder and, if required by the Commission, the natural persons thereof that have
voting and dispositive control over the shares. During any periods that the
Company is unable to meet its obligations hereunder with respect to the
registration of the Registrable Securities solely because any Holder fails to
furnish such information within three Trading Days of the Company’s request, any
registration obligations to such Holder only shall be tolled until such
information is delivered to the Company.

    
      
         

      

      
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    4.           Registration
Expenses. All fees and expenses incident to the performance of or
compliance with this Agreement by the Company shall be borne by the Company
whether or not any Registrable Securities are sold pursuant to a Registration
Statement. The fees and expenses referred to in the foregoing sentence shall
include, without limitation, (i) all registration and filing fees and the fees
(capped at $10,000, which shall be paid by Company upon filing of the
Registration Statement) and out of pocket disbursements of Holders’ Counsel and
the fees and expenses of independent registered public accountants (A) with
respect to filings made with the Commission, (B) with respect to filings
required to be made with any Trading Market on which the Common Stock is then
listed for trading, (C) in compliance with applicable state securities or Blue
Sky laws reasonably agreed to by the Company in writing (including, without
limitation, fees and disbursements of counsel for the Company in connection with
Blue Sky qualifications or exemptions of the Registrable Securities) and (D) if
not previously paid by the Company in connection with an Issuer Filing, with
respect to any filing that may be required to be made by any broker through
which a Holder intends to make sales of Registrable Securities with the FINRA
pursuant to NASD Rule 2710, so long as the broker is receiving no more than a
customary brokerage commission in connection with such sale, (ii) printing
expenses (including, without limitation, expenses of printing certificates for
Registrable Securities), (iii) messenger, telephone and delivery expenses, (iv)
fees and disbursements of counsel for the Company, (v) Securities Act liability
insurance, if the Company so desires such insurance, and (vi) fees and expenses
of all other Persons retained by the Company in connection with the consummation
of the transactions contemplated by this Agreement.  In addition, the
Company shall be responsible for all of its internal expenses incurred in
connection with the consummation of the transactions contemplated by this
Agreement (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), the expense of
any annual audit and the fees and expenses incurred in connection with the
listing of the Registrable Securities on any securities exchange as required
hereunder.  In no event shall the Company be responsible for any
broker or similar commissions of any Holder or any legal fees or other costs of
the Holders.

     

    5.           Indemnification.

     

    (a)         Indemnification by the
Company. The Company shall, notwithstanding any termination of this
Agreement, indemnify and hold harmless each Holder, the officers, directors,
members, partners, agents, brokers (including brokers who offer and sell
Registrable Securities as principal as a result of a pledge or any failure to
perform under a margin call of Common Stock), investment advisors and employees
(and any other Persons with a functionally equivalent role of a Person holding
such titles, notwithstanding a lack of such title or any other title) of each of
them, each Person who controls any such Holder (within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act) and the officers,
directors, members, stockholders, partners, agents and employees (and any other
Persons with a functionally equivalent role of a Person holding such titles,
notwithstanding a lack of such title or any other title) of each such
controlling Person, to the fullest extent permitted by applicable law, from and
against any and all losses, claims, damages, liabilities, costs (including,
without limitation, reasonable attorneys’ fees) and expenses (collectively,
“Losses”), as
incurred, arising out of or relating to (1) any untrue or alleged untrue
statement of a material fact contained in a Registration Statement, any
Prospectus or any form of prospectus or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or relating to any omission
or alleged omission of a material fact required to be stated therein or
necessary to make the statements therein (in the case of any Prospectus or
supplement thereto, in light of the circumstances under which they were made)
not misleading or (2) any violation or alleged violation by the Company of the
Securities Act, the Exchange Act or any state securities law, or any rule or
regulation thereunder, in connection with the performance of its obligations
under this Agreement, except to the extent, but only to the extent, that (i)
such untrue statements or omissions are based solely upon information regarding
such Holder furnished in writing to the Company by such Holder expressly for use
therein, or to the extent that such information relates to such Holder or such
Holder’s proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use in a
Registration Statement, such Prospectus or in any amendment or supplement
thereto (it being understood that the Holder has approved Annex A hereto for
this purpose) or (ii) in the case of an occurrence of an event of the type
specified in Section 3(d)(iii)-(vi), the use by such Holder of an outdated or
defective Prospectus after the Company has notified such Holder in writing that
the Prospectus is outdated or defective and prior to the receipt by such Holder
of the Advice contemplated in Section 6(d).  The Company shall notify
the Holders promptly of the institution, threat or assertion of any Proceeding
arising from or in connection with the transactions contemplated by this
Agreement of which the Company is aware.

    
      
         

      

      
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    (b)         Indemnification by
Holders. Each Holder shall, severally and not jointly, indemnify and hold
harmless the Company, its directors, officers, agents and employees, each Person
who controls the Company (within the meaning of Section 15 of the Securities Act
and Section 20 of the Exchange Act), and the directors, officers, agents or
employees of such controlling Persons, to the fullest extent permitted by
applicable law, from and against all Losses, as incurred, to the extent arising
out of or based solely upon: (x) such Holder’s failure to comply with the
prospectus delivery requirements of the Securities Act or (y) any untrue or
alleged untrue statement of a material fact contained in any Registration
Statement, any Prospectus, or in any amendment or supplement thereto or in any
preliminary prospectus, or arising out of or relating to any omission or alleged
omission of a material fact required to be stated therein or necessary to make
the statements therein not misleading (i) to the extent, but only to the extent,
that such untrue statement or omission is contained in any information so
furnished in writing by such Holder to the Company specifically for inclusion in
such Registration Statement or such Prospectus or (ii) to the extent that such
information relates to such Holder’s proposed method of distribution of
Registrable Securities and was reviewed and expressly approved in writing by
such Holder expressly for use in a Registration Statement (it being understood
that the Holder has approved Annex A hereto for this purpose), such Prospectus
or in any amendment or supplement thereto or (ii) in the case of an occurrence
of an event of the type specified in Section 3(d)(iii)-(vi), the use by such
Holder of an outdated or defective Prospectus after the Company has notified
such Holder in writing that the Prospectus is outdated or defective and prior to
the receipt by such Holder of the Advice contemplated in Section 6(d). In no
event shall the liability of any selling Holder hereunder be greater in amount
than the dollar amount of the net proceeds received by such Holder upon the sale
of the Registrable Securities giving rise to such indemnification
obligation.

    
      
         

      

      
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    (c)         Conduct of Indemnification
Proceedings. If any Proceeding shall be brought or asserted against any
Person entitled to indemnity hereunder (an “Indemnified Party”),
such Indemnified Party shall promptly notify the Person from whom indemnity is
sought (the “Indemnifying Party”)
in writing, and the Indemnifying Party shall have the right to assume the
defense thereof, including the employment of counsel reasonably satisfactory to
the Indemnified Party and the payment of all fees and expenses incurred in
connection with defense thereof; provided, that, the failure of any Indemnified
Party to give such notice shall not relieve the Indemnifying Party of its
obligations or liabilities pursuant to this Agreement, except (and only) to the
extent that it shall be finally determined by a court of competent jurisdiction
(which determination is not subject to appeal or further review) that such
failure shall have prejudiced the Indemnifying Party.

     

    An
Indemnified Party shall have the right to employ separate counsel in any such
Proceeding and to participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party or Parties
unless:  (1) the Indemnifying Party has agreed in writing to pay such
fees and expenses, (2) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding and to employ counsel reasonably
satisfactory to such Indemnified Party in any such Proceeding, or (3) the named
parties to any such Proceeding (including any impleaded parties) include both
such Indemnified Party and the Indemnifying Party, and counsel to the
Indemnified Party shall reasonably believe that a material conflict of interest
is likely to exist if the same counsel were to represent such Indemnified Party
and the Indemnifying Party (in which case, if such Indemnified Party notifies
the Indemnifying Party in writing that it elects to employ separate counsel at
the expense of the Indemnifying Party, the Indemnifying Party shall not have the
right to assume the defense thereof and the reasonable fees and expenses of no
more than one separate counsel shall be at the expense of the Indemnifying
Party).  The Indemnifying Party shall not be liable for any settlement
of any such Proceeding effected without its written consent, which consent shall
not be unreasonably withheld or delayed.  No Indemnifying Party shall,
without the prior written consent of the Indemnified Party, effect any
settlement of any pending Proceeding in respect of which any Indemnified Party
is a party, unless such settlement includes an unconditional release of such
Indemnified Party from all liability on claims that are the subject matter of
such Proceeding.

     

    Subject
to the terms of this Agreement, all reasonable fees and expenses of the
Indemnified Party (including reasonable fees and expenses to the extent incurred
in connection with investigating or preparing to defend such Proceeding in a
manner not inconsistent with this Section) shall be paid to the Indemnified
Party, as incurred, within ten Trading Days of written notice thereof to the
Indemnifying Party; provided, that, the Indemnified Party shall promptly
reimburse the Indemnifying Party for that portion of such fees and expenses
applicable to such actions for which such Indemnified Party is judicially
determined not to be entitled to indemnification hereunder.

     

    (d)         Contribution. To the
extent any indemnification by an Indemnifying Party is prohibited or limited by
law, the Indemnifying Party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 5(a) or 5(b)
hereof to the extent permitted by law, provided that (i) no contribution shall
be made under circumstances where the maker would not have been liable for
indemnification pursuant to the provisions of this Section, (ii) no seller of
Registrable Securities guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any seller of Registrable Securities who was not guilty of
such fraudulent misrepresentation, and (iii) in all cases, contribution by any
seller of Registrable Securities shall be limited to the net amount of proceeds
received by such seller from the sale of such Registrable
Securities.

    
      
         

      

      
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    6.           Miscellaneous.

     

    (a)         Remedies.  In
the event of a breach by the Company or by a Holder of any of their respective
obligations under this Agreement, each Holder or the Company, as the case may
be, in addition to being entitled to exercise all rights granted by law and
under this Agreement, including recovery of damages, shall be entitled to
specific performance of its rights under this Agreement.  The Company
and each Holder agree that monetary damages would not provide adequate
compensation for any losses incurred by reason of a breach by it of any of the
provisions of this Agreement and hereby further agrees that, in the event of any
action for specific performance in respect of such breach, it shall not assert
or shall waive the defense that a remedy at law would be adequate.

     

    (b)         No Piggyback on
Registrations; Prohibition on Filing Other Registration Statements.
Except as set forth on Schedule 6(b)
attached hereto, neither the Company nor any of its security holders (other than
the Holders in such capacity pursuant hereto) may include securities of the
Company in the Initial Registration Statement other than the Registrable
Securities.  The Company shall not file any other registration
statements until all Registrable Securities are registered pursuant to the
Initial Registration Statement that is declared effective by the Commission,
provided that this Section 6(b) shall not prohibit the Company from filing
amendments to registration statements filed prior to the date of this
Agreement.

     

    (c)         Compliance. Each
Holder covenants and agrees that it will comply with the prospectus delivery
requirements of the Securities Act as applicable to it in connection with sales
of Registrable Securities pursuant to a Registration Statement.

     

    (d)         Discontinued
Disposition.  By its acquisition of Registrable Securities,
each Holder agrees that, upon receipt of a notice from the Company of the
occurrence of any event of the kind described in Section 3(d)(iii) through (vi),
such Holder will forthwith discontinue disposition of such Registrable
Securities under a Registration Statement until it is advised in writing (the
“Advice”) by
the Company that the use of the applicable Prospectus (as it may have been
supplemented or amended) may be resumed.  The Company will use its
best efforts to ensure that the use of the Prospectus may be resumed as promptly
as is practicable.  The Company agrees and acknowledges that any
periods during which the Holder is required to discontinue the disposition of
the Registrable Securities hereunder shall be subject to the provisions of
Section 2(b).

     

    (e)         Piggy-Back
Registrations. If, at any time during the Effectiveness Period, there is
not an effective Registration Statement covering all of the Registrable
Securities and the Company shall determine to prepare and file with the
Commission a registration statement relating to an offering for its own account
or the account of others under the Securities Act of any of its equity
securities, other than on Form S-4 or Form S-8 (each as promulgated under the
Securities Act) or their then equivalents relating to equity securities to be
issued solely in connection with any acquisition of any entity or business or
equity securities issuable in connection with the Company’s stock option or
other employee benefit plans, then the Company shall deliver to each Holder a
written notice of such determination and, if within fifteen days after the date
of the delivery of such notice, any such Holder shall so request in writing, the
Company shall include in such registration statement all or any part of such
Registrable Securities such Holder requests to be registered; provided, however, that the
Company shall not be required to register any Registrable Securities pursuant to
this Section 6(e) that are eligible for resale pursuant to Rule 144 promulgated
by the Commission pursuant to the Securities Act or that are the subject of a
then effective Registration Statement.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (f)          Amendments and
Waivers. The provisions of this Agreement, including the provisions of
this sentence, may not be amended, modified or supplemented, and waivers or
consents to departures from the provisions hereof may not be given, unless the
same shall be in writing and signed by the Company and the Holders of a majority
or more of the then outstanding Registrable Securities (including, for this
purpose any Registrable Securities issuable upon exercise or conversion of any
Security).  If a Registration Statement does not register all of the
Registrable Securities pursuant to a waiver or amendment done in compliance with
the previous sentence, then the number of Registrable Securities to be
registered for each Holder shall be reduced pro rata among all Holders and each
Holder shall have the right to designate which of its Registrable Securities
shall be omitted from such Registration Statement. Notwithstanding the
foregoing, a waiver or consent to depart from the provisions hereof with respect
to a matter that relates exclusively to the rights of a Holder or some Holders
and that does not directly or indirectly affect the rights of other Holders may
be given by such Holder or Holders of all of the Registrable Securities to which
such waiver or consent relates; provided, however, that the
provisions of this sentence may not be amended, modified, or supplemented except
in accordance with the provisions of the first  sentence of this
Section 6(f).

     

    (g)         Notices. Any and all
notices or other communications or deliveries required or permitted to be
provided hereunder shall be delivered as set forth in the Purchase
Agreement.

     

    (h)         Successors and
Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors and permitted assigns of each of the parties and shall inure to
the benefit of each Holder. The Company may not assign (except by merger) its
rights or obligations hereunder without the prior written consent of the Holders
of a majority or more of the then outstanding Registrable Securities.
Notwithstanding anything to the contrary contained herein or in the Purchase
Agreement, any Holder may assign any or all of its rights under this Agreement
to any Person to whom such Holder assigns or transfers any Registrable
Securities, provided such transferee agrees in writing to be bound, with respect
to the transferred Registrable Securities, by the provisions of this Agreement
that apply to the “Holders.”

     

    (i)          Execution and
Counterparts. This Agreement may be executed in two or more counterparts,
all of which when taken together shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and
delivered to the other party, it being understood that both parties need not
sign the same counterpart.  In the event that any signature is
delivered by facsimile transmission or by e-mail delivery of a “.pdf” format
data file, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile or “.pdf” signature page were an original
thereof.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (j)           Governing
Law.  All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be determined in
accordance with the provisions of the Purchase Agreement.

     

    (k)          Cumulative Remedies.
The remedies provided herein are cumulative and not exclusive of any other
remedies provided by law.

     

    (l)           Severability. If any
term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated, and the parties hereto shall use their commercially reasonable
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

     

    (m)        Headings. The
headings in this Agreement are for convenience only, do not constitute a part of
the Agreement and shall not be deemed to limit or affect any of the provisions
hereof.

     

    (n)         Independent Nature of
Holders’ Obligations and Rights. The obligations of each Holder hereunder
are several and not joint with the obligations of any other Holder hereunder,
and no Holder shall be responsible in any way for the performance of the
obligations of any other Holder hereunder. Nothing contained herein or in any
other agreement or document delivered at any closing, and no action taken by any
Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as
a partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Holders are in any way acting in concert with
respect to such obligations or the transactions contemplated by this Agreement.
Each Holder shall be entitled to protect and enforce its rights, including
without limitation the rights arising out of this Agreement, and it shall not be
necessary for any other Holder to be joined as an additional party in any
proceeding for such purpose.

     

    ********************

     

    IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as
of the date first written above.

    

    
      
        	
                AVANTAIR,
      INC.

              
	 
      	 
      
	
                By:

              	
                /s/ Steven Santo

              
	 
      	
                Name:
      Steven Santo

              
	 
      	
                Title:
      Chief Executive Officer

              

      

    

     

    
      
         

      

      
        12Unassociated Document

     

    Exhibit
10.17

    CAMDEN
NATIONAL CORPORATION

     

    AMENDED AND RESTATED

    LONG-TERM PERFOMANCE SHARE
PLAN

    

     

    1.      Purpose.  This Plan
is intended to create incentives for certain executive officers of the Company
to allow the Company to attract and retain in its employ persons who will
contribute to the future success of the Company.  It is further the
intent of the Company that Awards made under this Plan will be used to achieve
the twin goals of (i) aligning executive incentive compensation with increases
in stockholder value and (ii)
using equity compensation as a tool to retain key employees.  This
Plan shall be a sub-plan of the Stock Option Plan and any Shares awarded under
this Plan shall reduce the number of Shares available for use under the Stock
Option Plan.

     

    2.      Definitions.  Capitalized
terms used and not otherwise defined herein shall have the meanings set forth
below:

     

    2.1          "Award" shall mean, for any
Participant, the actual payment in Shares at the end of a Long-Term Performance
Period.

     

    2.2          "Board" shall mean the Board
of Directors of the Company.

     

    2.3          "Change of Control" shall mean
the occurrence of any one of the following events:

     

    (a)              any
"Person," as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act") (other than the Company,
any of its subsidiaries, or any trustee, fiduciary or other person or entity
holding securities under any employee benefit plan or trust of the Company or
any of its Subsidiaries), together with all "affiliates" and "associates" (as
such terms are defined in Rule 12b-2 under the Exchange Act) of such person,
shall become the "beneficial owner" (as such term is defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of the Company
representing 50 percent or more of the combined voting power of the Company's
then outstanding securities having the right to vote in an election of the Board
("Voting Securities") (in such case other than as a result of an acquisition of
securities directly from the Company); or

    

    (b)              persons
who, as of the Effective Date, constitute the Board (the "Incumbent Directors")
cease for any reason, including, without limitation, as a result of a tender
offer, proxy contest, merger or similar transaction, to constitute at least a
majority of the Board, provided that any person becoming a director of the
Company subsequent to the Effective Date shall be considered an Incumbent
Director if such person's election was approved by or such person was nominated
for election by either (i) a vote of at least a majority of the Incumbent
Directors or (ii) a vote of at least a majority of the Incumbent Directors who
are members of a nominating committee comprised, in the majority, of Incumbent
Directors; but provided further, that any such person whose initial
assumption of office is in connection with an actual or threatened election
contest relating to the election of members of the Board or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person other
than the Board, including by reason of agreement intended to avoid or settle any
such actual or threatened contest or solicitation, shall not be considered an
Incumbent Director; or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)              the
consummation of a consolidation, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company (a
"Corporate Transaction"); excluding, however, a Corporate Transaction in which
the stockholders of the Company immediately prior to the Corporate Transaction,
would, immediately after the Corporate Transaction, beneficially own (as such
term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
shares representing in the aggregate more than 50 percent of the voting shares
of the corporation issuing cash or securities in the Corporate Transaction (or
of its ultimate parent corporation, if any); or

    

    (d)              the
approval by the stockholders of any plan or proposal for the liquidation or
dissolution of the Company.

    

    Notwithstanding
the foregoing, a "Change of Control" shall not be deemed to have occurred for
purposes of the foregoing clause (a) solely as the result of an acquisition of
securities by the Company which, by reducing the number of shares of Voting
Securities outstanding, increases the proportionate number of shares of Voting
Securities beneficially owned by any person to 50 percent or more of the
combined voting power of all then outstanding Voting Securities; provided,
however, that if any person referred to in this sentence shall thereafter become
the beneficial owner of any additional shares of Voting Securities (other than
pursuant to a stock split, stock dividend, or similar transaction or as a result
of an acquisition of securities directly from the Company) and immediately
thereafter beneficially owns 50 percent or more of the combined voting power of
all then outstanding Voting Securities, then a "Change of Control" shall be
deemed to have occurred for purposes of the foregoing clause (a).

     

    2.4          "Code" shall
mean the Internal Revenue Code of 1986, as amended.

     

    2.5          "Committee"
shall mean those members of the Compensation Committee of the Board who
are "outside directors" and "non-employee directors" as such terms are defined
under the Code, applicable regulations and Rule 16b-3 promulgated under the
Securities Exchange Act of 1934, as amended, respectively.

     

    2.6          "Company"
shall mean Camden National Corporation.

     

    2.7          "Effective Date"
shall mean, with respect to this amendment and restatement of the Plan,
January 1, 2009, and with respect to the original Plan, January 1, 2005
(amendments to the Plan shall be effective as indicated therein).

     

    2.8          "Efficiency Ratio "or "ER”  for a Long-Term Performance Period
shall mean the Company's non-interest expense divided by the Company's revenues
(i.e., the Company's fully tax equivalent net interest income and non-interest
income) during such Long-Term Performance Period.  Non-interest
expense and non-interest income shall exclude material non recurring events and
security gains and losses.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.9          "Fiscal Year" shall mean the
fiscal year of the Company, which is the 12- month period ending December 31 of
each year.

     

    2.10                     "Long-Term Performance Period"
shall mean a period of three consecutive Fiscal Years beginning on the
January 1 of the first year of such Long-Term Performance Period.  A
Long-Term Performance Period shall terminate prior to the expiration of three
consecutive Fiscal Years to the extent required pursuant to Section 6.3
hereof.

     

    2.11                     "Participant" shall mean an
executive officer of the Company designated by the Committee pursuant to Section
4 to participate in the Plan with respect to a Long-Term Performance
Period.

     

    2.12                     "Performance Measures" for
any Long-Term Performance Period shall mean:

     

    (a)              For
Long-Term Performance Periods beginning prior to 2007: Return on Average Equity,
and Tangible Book Value Per Diluted Share.

    

    (b)              For
the Long-Term Performance Period beginning on January 1, 2007: Revenue Growth
and Efficiency Ratio.

    

    (c)              For
Long-Term Performance Periods beginning after 2009: Efficiency Ratio, Return on
Average Equity, Revenue Growth and/or Tangible Book Value Per Diluted Share, as
determined by the Committee in its discretion.

    

    2.13                     "Plan" shall mean the Camden
National Corporation Amended and Restated Long-Term Performance Share Plan, as
amended from time to time.

     

    2.14                     "Retirement” shall mean an
employee's bona fide retirement from the Company provided that at the time of
such retirement (a) such employee is in good standing, and (b) has attained age
55 with at least 10 years of employment with the Company or has attained age 65
with at least five years of employment with the Company.

     

    2.15                     "Return on Average Equity
"
or "ROAE "
for a Long-Term Performance Period shall mean (i) the Company's net
income after taxes for each Fiscal Year during such Long-Term Performance
Period, divided by (ii) the Company's average equity during such Long-Tern
Performance Period, in each case as reported in the Company's annual reports on
Form 10-K for the Fiscal Years included in such Long-Term Performance
Period.

     

    2.16                     "Revenue Growth" or
“Compound Annual Growth Rate" or "CAGR” for a Long-Term Performance Period
shall mean the compound annual growth rate of the Company's revenues
(i.e., the Company's fully tax equivalent net interest income and non-interest
income) over the Long-Term Performance Period compared to peer group performance
as further defined in Exhibit A.  Non-interest income shall exclude
material non recurring events and security gains and losses.

     

    2.17                     "Share"
shall mean a share of common stock, no par value, of the
Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.18                     "Stock Option Plan"
shall mean the Camden National Corporation 2003 Stock Option and
Incentive Plan.

     

    2.19                     "Tangible Book
Value Per Diluted Share or "TBV" for a Long-Term Performance Period shall
mean the Company's tangible book value per diluted share as of the end of such
Long-Tern Performance Period, calculated by dividing (i) the Company's tangible
book value (i.e., total assets less total liabilities, less goodwill, and less
core deposit intangibles) as of the end of such Long-Term Performance Period
(ii) by the total amount of common shares outstanding on a fully diluted basis
as of the end of such Long-Term Performance Period, in each case as reported in
the Company's annual report on Form 10-K for the year that ends simultaneously
with (or that includes the last day of) such Long-Term Performance
Period.

     

    2.20                     "Target Award”
shall mean, for any Participant, a percentage of his or her base salary
at the beginning of the Long-Term Performance Period.

     

    2.21                     "Termination Event"
shall mean, for any Participant, termination of such Participant's
employment with the Company either (a) by the Company for any reason other than
Cause or (b) by the Participant for Good Reason. "Cause" means a vote of the
Board resolving that the Participant should be dismissed as a result of (i) the
commission of any act by a grantee constituting financial dishonesty against the
Company (which act would be chargeable as a crime under applicable law); (ii) a
Participant's engaging in any other act of dishonesty, fraud, intentional
misrepresentation, moral turpitude, illegality or harassment which, as
determined in good faith by the Board, would: (A) materially adversely affect
the business or the reputation of the Company with its current or prospective
customers, suppliers, lenders and/or other third parties with whom it does or
might do business; or (B) expose the Company to a risk of civil or criminal
legal damages, liabilities or penalties; (iii) the repeated failure by a
Participant to follow the directives of the Company's chief executive officer or
Board or (iv) any material misconduct, violation of the Company's policies, or
willful and deliberate non-performance of duty by the participant in connection
with the business affairs of the Company. "Good Reason" means the occurrence of
any of the following events: (i) a substantial adverse change in the nature or
scope of the Participant's responsibilities, authorities, powers, functions or
duties; (ii) a substantial reduction in the Participant's annual base salary
except for across-the-board salary reductions similarly affecting all or
substantially all management employees; or (iii) the relocation of the offices
at which the Participant is principally employed to a location more than 50
miles from such offices.

     

    3.      Administration.  The
Committee shall have sole discretionary power to interpret the provisions of
this Plan, to administer and make all decisions and exercise all rights of the
Company with respect to this Plan.  The Committee shall have final
authority to apply the provisions of the Plan and determine, in its sole
discretion, the amount of the Awards to be paid to Participants hereunder and
shall also have the exclusive discretionary authority to make all other
determinations (including, without limitation, the interpretation and
construction of the Plan and the determination of relevant facts) regarding the
entitlement to benefits hereunder and the amount of benefits to be paid pursuant
to the Plan.  The Committee's exercise of this discretionary authority
shall at all times be in accordance with the terms of the Plan and shall be
entitled to deference upon review by any court, agency or other entity empowered
to review its decision, and shall be enforced, provided that it is not
arbitrary, capricious or fraudulent.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.      Eligibility.  For each Long-Term Performance Period,
the Committee in its discretion shall select those executive officers who shall
be Participants.  The selection of an individual to be a Participant
in any one Long-Term Performance Period does not entitle the individual to be a
Participant in any other Long-Term Performance Period.  A newly hired
executive may be eligible to become a Participant if he or she is hired prior to
the first day of a Long-Term Performance Period.  Subject to Section
7 hereof, any Participant
who is not a Participant at the beginning of the Long-Term Performance Period
and therefore does not participate for the entire Long-Term Performance Period,
including a newly hired or promoted Participant, shall receive a pro-rated
Target Award based on his period of participation.

     

    5.      Performance Measures
and Awards.

     

    5.1          Performance
Measures. Within the first 180
days of a Long-Term Performance Period, the Committee shall establish the
performance share matrix with the Performance Measures for the Long-Term
Performance Period. The established matrix shall be set forth in Exhibit
A.

     

    5.2          Granting of Awards.
The
Committee shall assign each Participant a Target Award for the Long-Term
Performance Period.

     

    5.3          Nature of Awards.
The Target
Awards granted under this Plan shall be used solely as a device for the
measurement and determination of Awards that may potentially be made to each
Participant as provided herein. Awards shall not constitute or be treated as
property or as a trust fund of any kind or as capital stock of the Company,
stock options or other form of equity or security until they are paid to
Participants in the form of Shares.

     

    6.      Payment of
Awards.

     

    6.1          Committee
Certification.  No Participant shall receive an Award
of any Shares under this Plan unless the Committee has certified, by resolution
or other appropriate action in writing, that the Performance Measure with
respect to the Long-Term Performance Period has in fact been
satisfied.  No payments shall be made if the Performance Measure has
not been met for the Long-Term Performance Period.  If each of the
Performance Measures has been met, the amount of the actual Award will be made
pursuant to the provisions of Section

     

    6.2          Award to
Participants at End of Long-Term Performance Period. At the end of each
Long-Term Performance Period, if each Performance Measure equals or exceeds the
threshold set forth in Exhibit A, then each Participant shall receive an Award
in accordance with the matrix in Exhibit A. The Award for a Long-Term
Performance Period shall be paid to such Participant in Shares during the first
three months of the first Fiscal Year commencing after the end of such Long-Term
Performance Period.  The conversion of dollar amounts into Shares will
be based on the market value of a Share on the first day of the relevant
Long-Term Performance Period. Shares will be issued from the Stock Option
Plan.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6.3          Change of
Control.  Notwithstanding anything to the contrary elsewhere
herein, if a Change of Control shall occur, (a) each Long-Term Performance
Period that has not yet ended shall end as of the date the Change of Control
occurs and Awards shall be calculated for each such Long-Term Performance Period
as of such date based on the Company's performance through such date and (b) all
Participants who are employed by the Company on the date the Change of Control
occurs shall receive a pro rata Award based on such shortened Long-Term
Performance Period (or, in the discretion of the Committee, the cash value of
such pro rata Award), if any, as soon as practicable. Notwithstanding the
foregoing, in the event a Participant has a Termination Event within six months
after such Change of Control and such Termination Event is in connection with
such Change of Control, then such Participant shall be entitled to an additional
Award under this Plan at such time in an amount equal to the excess, if any, of
the amount determined pursuant to the preceding sentence (assuming the amount in
(a) was calculated based on Superior Target), over the amount determined
pursuant to the preceding sentence (assuming the amount in (a) was calculated
based on the Company's actual performance.

     

    7.      Forfeiture;
Retirement.  Unless otherwise determined by the Committee, a
Participant whose employment with the Company terminates for any reason (other
than Retirement) prior to the actual payment of the Awards under Section 6.2
above shall forfeit all rights to the Target Award which might otherwise have
been granted to him. Unless otherwise determined by the Committee, a Participant
whose employment with the Company terminates due to such Participant's
Retirement prior to the actual payment of the Awards under Section 6.2 above
shall receive a pro rata Award.  Such Award shall be based on the
entire Long-Term Performance Period and shall be pro-rated based on the portion
of the relevant Long-Term Performance Period during which such Participant was
an employee of the Company.  Any such pro rata Award shall be paid
during the first three  months of the first Fiscal Year commencing
after the end of such Long-Term Performance Period.

     

    Anything
herein to the contrary notwithstanding, if at the time of the Participant's
separation from service within the meaning of Section 409A of the Code, the
Participant is considered a "specified employee" within the meaning of Section
409A(a)(2)(B)(i) of the Code, and
if any payment that the Participant becomes entitled to under this Plan is
considered deferred compensation subject to interest, penalties and additional
tax imposed pursuant to Section 409A(a) of the Code as a result of the
application of Section 409A(a)(2)(B)(i) of the Code, then no such payment shall
be payable prior to the date that is the earlier of (i) six months after the
Participant’s separation from service, or (ii) the participant's
death.  It is intended that this Plan will be administered in
accordance with Section 409A of the Code.

     

    8.      Amendment or
Termination of Plan.  The Company may amend or terminate this
Plan at any time or from time to time; provided however,
that no such amendment or termination shall, without the written consent
of the Participants, affect the rights of a Participant in any material adverse
way with respect to benefits earned prior to the date of the amendment or
termination.

     

    9.      Limitation of
Company's Liability. Subject to its obligation to make payments as
provided for hereunder, neither the Company nor any person acting on behalf of
the Company shall be liable for any act performed or the failure to perform any
act with respect to this Plan, except in the event that there has been a
judicial determination of willful misconduct on the part of the Company or such
person.  The Company is under no obligation to fund any of the
payments required to be made hereunder in advance of their actual payment or to
establish any reserves with respect to this Plan.  Any benefits which
become payable hereunder shall be paid from the general assets of the
Company.  No Participant, beneficiary or beneficiaries, shall have any
right, other than the right of an unsecured general creditor, against the
Company in respect of the benefits to be paid hereunder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    10.                 Withholding of
Tax.  Anything to the contrary notwithstanding, all payments of
Awards required to be made by the Company hereunder shall be subject to the
withholding of such amounts as the Company reasonably may determine that it is
required to withhold pursuant to applicable federal, state or local law or
regulation.  Withholding can be made in the form of
Shares.

     

    11.                 Assignability.  Except
as otherwise provided by law, no benefit hereunder shall be assignable, or
subject to alienation, garnishment, execution or levy of any kind, and any
attempt to cause any benefit to be so subject shall be void.

     

    12.                 No Contract for
Continuing Services.  This Plan shall not be construed as
creating any contract for continued services between the Company and any
Participant and nothing herein contained shall give any Participant the right to
be retained as an employee of the Company.

     

    13.                 Governing Law.
This Plan shall be construed, administered, and enforced in accordance
with the laws of the State of Maine.

     

    14.                 Non-Exclusivity.  The
Plan does not limit the authority of the Company, the Committee, or any
subsidiary of the Company, to grant Awards or authorize any other compensation
under any other plan or authority, including, without limitation, awards or
other compensation based on the same Performance Measure used under the
Plan.

     

    
      
        	 	 	 	
                CAMDEN
      NATIONAL CORPORATION

              	 
	 	 	 	 	 	 
	Witness: 	
                /s/
      Tori Coombs  

              	 	
                By:
      

              	
                /s/
      Greg Dufour 

              	 
	 	 	 	 	Its
      CEO and President	 
	 	 	 	 	
              	 
	 	 	 	Date: 	      
                June
      30, 2009   

              	 

      

    

     

     

    Board
Approval:  June 30, 2009

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