Document:

exv10w1

Exhibit 10.1

Execution Version

 

REGISTRATION RIGHTS AGREEMENT

Dated as of September 23, 2010

By and Among

PHI, INC.,

as Issuer,

the GUARANTORS

Named Herein, and

UBS SECURITIES LLC,

as Initial Purchaser

8.625% Senior Notes due 2018

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Section 1.
	 	Definitions	 	 	1	 
	Section 2.
	 	Exchange Offer	 	 	4	 
	Section 3.
	 	Shelf Registration Statement	 	 	7	 
	Section 4.
	 	Liquidated Damages	 	 	8	 
	Section 5.
	 	Registration Procedures	 	 	9	 
	Section 6.
	 	Registration Expenses	 	 	16	 
	Section 7.
	 	Indemnification	 	 	17	 
	Section 8.
	 	Rules 144 and 144A	 	 	20	 
	Section 9.
	 	Underwritten Registrations	 	 	20	 
	Section 10.
	 	Miscellaneous	 	 	21	 

 

 

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this “Agreement”) is dated as of September 23, 2010, by
and among PHI, Inc., a Louisiana corporation (the “Company”), and each of the Guarantors (as
defined herein) (the Company and the Guarantors are referred to collectively herein as the
“Issuers”), on the one hand, and UBS Securities LLC (the “Initial Purchaser”), on the other hand.

     This Agreement is entered into in connection with the Purchase Agreement, dated September 16,
2010, by and among the Issuers and the Initial Purchaser (the “Purchase Agreement”), relating to
the offering of $300 million aggregate principal amount of the Company’s 8.625% Senior Notes due
2018 (including the guarantees thereof by the Guarantors, the “Notes”). The execution and delivery
of this Agreement is a condition to the Initial Purchaser’s obligation to purchase the Notes under
the Purchase Agreement.

     The parties hereby agree as follows:

          Section 1. Definitions.

     As used in this Agreement, the following terms shall have the following meanings:

     “action” shall have the meaning set forth in Section 7(c) hereof.

     “Advice” shall have the meaning set forth in Section 5(w) hereof.

     “Agreement” shall have the meaning set forth in the first introductory paragraph hereto.

     “Applicable Period” shall have the meaning set forth in Section 2(d) hereof.

     “Board of Directors” shall have the meaning set forth in Section 5(w) hereof.

     “Business Day” shall mean a day that is not a Legal Holiday.

     “Commission” shall mean the Securities and Exchange Commission.

     “Company” shall have the meaning set forth in the introductory paragraph hereto and shall also
include the Company’s permitted successors and assigns.

     “day” shall mean a calendar day.

     “Delay Period” shall have the meaning set forth in Section 5(w) hereof.

     “Effectiveness Period” shall have the meaning set forth in Section 3(b) hereof.

     “Event Date” shall have the meaning set forth in Section 4(b) hereof.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission promulgated thereunder.

 

 

     “Exchange Notes” shall have the meaning set forth in Section 2(a) hereof.

     “Exchange Offer” shall have the meaning set forth in Section 2(a) hereof.

     “Exchange Offer Registration Statement” shall have the meaning set forth in Section 2(a)
hereof.

     “FINRA” shall have the meaning set forth in Section 5(s) hereof.

     “Freely Tradable” shall mean, with respect to any Note, a Note (i) that, at the time of
determination, would be permitted to be sold to the public without limitation in accordance with
Rule 144, (ii) with respect to which the Company has enabled the applicable holder to have any
restrictive legends relating to the Securities Act removed and (iii) that bears an unrestricted
CUSIP number.

     “Guarantors” means each of the Persons executing this Agreement (as set forth on Schedule I of
the Purchase Agreement) on the date hereof and each Person who executes and delivers a counterpart
of this Agreement hereafter pursuant to Section 10(e) hereof.

     “Holder” shall mean any holder of a Registrable Note or Registrable Notes.

     “Indenture” shall mean the Indenture, dated as of September 23, 2010, by and among the Issuers
and The Bank of New York Mellon Trust Company, N.A, as trustee, pursuant to which the Notes are
being issued, as amended or supplemented from time to time in accordance with the terms thereof.

     “Initial Purchaser” shall have the meaning set forth in the first introductory paragraph
hereof.

     “Inspectors” shall have the meaning set forth in Section 5(n) hereof.

     “Issue Date” shall mean September 23, 2010, the date of original issuance of the Notes.

     “Issuers” shall have the meaning set forth in the introductory paragraph hereto, and shall
also include the Issuers’ permitted successors and assigns.

     “Legal Holiday” shall mean a Saturday, a Sunday or a day on which banking institutions in New
York, New York are required by law, regulation or executive order to remain closed.

     “Liquidated Damages” shall have the meaning set forth in Section 4(a) hereof.

     “Losses” shall have the meaning set forth in Section 7(a) hereof.

     “Notes” shall have the meaning set forth in the second introductory paragraph hereto.

     “Participant” shall have the meaning set forth in Section 7(a) hereof.

     “Participating Broker-Dealer” shall have the meaning set forth in Section 2(d) hereof.

2

 

     “Person” shall mean an individual, corporation, partnership, joint venture association, joint
stock company, trust, unincorporated limited liability company, government or any agency or
political subdivision thereof or any other entity.

     “Private Exchange” shall have the meaning set forth in Section 2(e) hereof.

     “Private Exchange Notes” shall have the meaning set forth in Section 2(e) hereof.

     “Prospectus” shall mean the prospectus included in any Registration Statement (including,
without limitation, any prospectus subject to completion and 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 under the Securities Act), as amended or
supplemented by any prospectus supplement, 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.

     “Purchase Agreement” shall have the meaning set forth in the second introductory paragraph
hereof.

     “Records” shall have the meaning set forth in Section 5(n) hereof.

     “Registrable Notes” shall mean each Note upon its original issuance and at all times
subsequent thereto, each Exchange Note as to which Section 2(i)(iv) hereof is applicable upon
original issuance and at all times subsequent thereto and each Private Exchange Note upon original
issuance thereof and at all times subsequent thereto, in each case until (i) a Registration
Statement (other than, with respect to any Exchange Note as to which Section 2(i)(iv) hereof is
applicable, the Exchange Offer Registration Statement) covering such Note, Exchange Note or Private
Exchange Note has been declared effective by the Commission and such Note, Exchange Note or such
Private Exchange Note, as the case may be, has been disposed of in accordance with such effective
Registration Statement, (ii) such Note has been exchanged pursuant to the Exchange Offer for an
Exchange Note or Exchange Notes that may be resold without restriction under state and federal
securities laws, (iii) such Note, Exchange Note or Private Exchange Note, as the case may be,
ceases to be outstanding for purposes of the Indenture or (iv) such Note is Freely Tradable.

     “Registration Default” shall have the meaning set forth in Section 4(a) hereof.

     “Registration Statement” shall mean any appropriate registration statement of the Issuers
covering any of the Registrable Notes filed with the Commission under the Securities Act, and all
amendments and supplements to any such Registration Statement, including post-effective amendments,
in each case including the Prospectus contained therein, all exhibits thereto and all material
incorporated by reference therein.

     “Requesting Participating Broker-Dealer” shall have the meaning set forth in Section 2(d)
hereof.

     “Rule 144” shall mean Rule 144 promulgated under the Securities Act, as such Rule may be
amended from time to time, or any similar rule (other than Rule 144A) or regulation hereafter

3

 

adopted by the Commission providing for offers and sales of securities made in compliance
therewith resulting in offers and sales by subsequent holders that are not affiliates of an issuer
of such securities being free of the registration and prospectus delivery requirements of the
Securities Act.

     “Rule 144A” shall mean Rule 144A promulgated under the Securities Act, as such rule may be
amended from time to time, or any similar rule (other than Rule 144) or regulation hereafter
adopted by the Commission.

     “Rule 415” shall mean Rule 415 promulgated under the Securities Act, as such rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by the Commission.

     “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and
regulations of the Commission promulgated thereunder.

     “Shelf Filing Event” shall have the meaning set forth in Section 2(i) hereof.

     “Shelf Registration Statement” shall have the meaning set forth in Section 3(a) hereof.

     “TIA” shall mean the Trust Indenture Act of 1939, as amended.

     “Trustee” shall mean the trustee under the Indenture and the trustee (if any) under any
indenture governing the Exchange Notes and Private Exchange Notes.

     “Underwritten registration or underwritten offering” shall mean a registration in which
securities of the Issuers are sold to an underwriter for reoffering to the public.

          Section 2. Exchange Offer

     (a) The Issuers shall (i) file a Registration Statement (the “Exchange Offer Registration
Statement”) with the Commission on an appropriate registration form with respect to a registered
offer (the “Exchange Offer”) to exchange any and all of the Registrable Notes for a like aggregate
principal amount of notes (including the guarantees with respect thereto, the “Exchange Notes”)
that are identical in all material respects to the Notes (except that the Exchange Notes shall not
contain terms with respect to transfer restrictions or Liquidated Damages upon a Registration
Default), (ii) use their reasonable best efforts to cause the Exchange Offer Registration Statement
to be declared effective under the Securities Act and (iii) use their reasonable best efforts to
consummate the Exchange Offer within 365 days after the Issue Date. Upon the Exchange Offer
Registration Statement being declared effective by the Commission, the Issuers will offer the
Exchange Notes in exchange for surrender of the Notes. The Issuers shall keep the Exchange Offer
open for not less than 30 days (or longer if required by applicable law) after the date notice of
the Exchange Offer is mailed to Holders.

     Each Holder that participates in the Exchange Offer will be required to represent to the
Company in writing that at the time of the consummation of the Exchange Offer (i) any Exchange
Notes to be received by it will be acquired in the ordinary course of its business, (ii) it has no
arrangement or understanding with any Person to participate in the distribution (within the

4

 

meaning of the Securities Act) of the Exchange Notes in violation of the provisions of the
Securities Act, (iii) it is not an “affiliate” of the Issuers, as defined by Rule 405 of the
Securities Act, or if it is an affiliate of the Issuers, it will comply with the registration and
prospectus delivery requirements of the Securities Act to the extent applicable, (iv) if such
Holder is not a broker-dealer, it is not engaged in, and does not intend to engage in, a
distribution of Exchange Notes and (v) if such Holder is a broker-dealer that will receive Exchange
Notes for its own account in exchange for Notes that were acquired as a result of market-making or
other trading activities, it will deliver a prospectus in connection with any resale of such
Exchange Notes.

     (b) The Company and the Initial Purchaser acknowledge that the staff of the Commission has
taken the position that any broker-dealer that elects to exchange Notes that were acquired by such
broker-dealer for its own account as a result of market-making or other trading activities for
Exchange Notes in the Exchange Offer (a “Participating Broker-Dealer”) may be deemed to be an
“underwriter” within the meaning of the Securities Act and must deliver a prospectus meeting the
requirements of the Securities Act in connection with any resale of such Exchange Notes (other than
a resale of an unsold allotment resulting from the original offering of the Notes).

     (c) The Company and the Initial Purchaser also acknowledge that the staff of the Commission
has taken the position that if the Prospectus contained in the Exchange Offer Registration
Statement includes a plan of distribution containing a statement to the above effect and the means
by which Participating Broker-Dealers may resell the Exchange Notes, without naming the
Participating Broker-Dealers or specifying the amount of Exchange Notes owned by them, such
Prospectus may be delivered by Participating Broker-Dealers to satisfy their prospectus delivery
obligations under the Securities Act in connection with resales of Exchange Notes for their own
accounts, so long as the Prospectus otherwise meets the requirements of the Securities Act.

     (d) In light of the foregoing, if requested by a Participating Broker-Dealer (a “Requesting
Participating Broker-Dealer”), the Issuers agree to use their reasonable best efforts to keep the
Exchange Offer Registration Statement continuously effective for a period of up to 180 days after
the date on which the Exchange Registration Statement is declared effective, or such longer period
if extended pursuant to the last paragraph of Section 5 hereof (such period, the “Applicable
Period”), or such earlier date as all Requesting Participating Broker-Dealers shall have notified
the Company in writing that such Requesting Participating Broker-Dealers have resold all Exchange
Notes acquired in the Exchange Offer. The Company shall include a plan of distribution in such
Exchange Offer Registration Statement that meets the requirements set forth in the preceding
paragraph.

     (e) If, prior to consummation of the Exchange Offer, any Holder holds any Notes acquired by it
that have, or that are reasonably likely to be determined to have, the status of an unsold
allotment in an initial distribution, or if any Holder is not entitled to participate in the
Exchange Offer, the Company, upon the request of any such Holder, shall simultaneously with the
delivery of the Exchange Notes in the Exchange Offer, issue and deliver to any such Holder, in
exchange (the “Private Exchange”) for such Notes held by any such Holder, a like principal amount
of notes (including the guarantees with respect thereto, the “Private Exchange Notes”) that are
identical in all material respects to the Exchange Notes, except that the Private Exchange

5

 

Notes may be subject to transfer restrictions and bear a legend to such effect; provided,
however, that the Issuers shall not be required to effect a Private Exchange if in the written
judgment of counsel for the Issuers or counsel for the Initial Purchaser (copies of which are
delivered to the Initial Purchaser or Holders whose request is the subject of such judgments) such
Private Exchange cannot be effected without registration under the Securities Act. The Private
Exchange Notes shall be issued pursuant to the same indenture as the Exchange Notes and, if
permitted by Standard & Poor’s CUSIP Bureau, shall bear the same CUSIP number as the Exchange
Notes.

     (f) In connection with the Exchange Offer, the Company shall:

     (i) mail or cause to be mailed to each Holder entitled to participate in the Exchange
Offer a copy of the Prospectus forming part of the Exchange Offer Registration Statement,
together with an appropriate letter of transmittal and related documents;

     (ii) utilize the services of a depositary for the Exchange Offer with an address in the
Borough of Manhattan, The City of New York;

     (iii) permit Holders to withdraw tendered Notes at any time prior to the close of
business, New York time, on the last Business Day on which the Exchange Offer shall remain
open; and

     (iv) otherwise comply in all material respects with all applicable laws, rules and
regulations.

     As soon as practicable after the close of the Exchange Offer and the Private Exchange, if any,
the Company shall:

     (i) accept for exchange all Notes validly tendered and not validly withdrawn pursuant
to the Exchange Offer and the Private Exchange, if any;

     (ii) deliver or cause to be delivered to the Trustee for cancellation all Notes so
accepted for exchange; and

     (iii) cause the Trustee to authenticate and deliver promptly to each Holder of Notes,
Exchange Notes or Private Exchange Notes, as the case may be, equal in principal amount to
the Notes of such Holder so accepted for exchange.

     (g) The Exchange Offer and the Private Exchange shall not be subject to any conditions, other
than that (i) the Exchange Offer or Private Exchange, as the case may be, does not violate
applicable law or any applicable interpretation of the staff of the Commission, (ii) no action or
proceeding shall have been instituted or threatened in any court or by any governmental agency
which might materially impair the ability of the Company to proceed with the Exchange Offer or the
Private Exchange, and no material adverse development shall have occurred in any existing such
action or proceeding with respect to the Company and (iii) all governmental approvals shall have
been obtained, which approvals the Company deems necessary for the consummation of the Exchange
Offer or Private Exchange.

6

 

     (h) The Exchange Notes and the Private Exchange Notes shall be issued under (i) the Indenture
or (ii) an indenture identical in all material respects to the Indenture (in either case, with such
changes as are necessary to comply with any requirements of the Commission to effect or maintain
the qualification thereof under the TIA) and which, in either case, has been qualified under the
TIA and shall provide that the Exchange Notes shall not be subject to the transfer restrictions set
forth in the Indenture. The Indenture or such indenture shall provide that the Exchange Notes, the
Private Exchange Notes and the Notes shall vote and consent together on all matters as one class
and that none of the Exchange Notes, the Private Exchange Notes or the Notes will have the right to
vote or consent as a separate class on any matter.

     (i) In the event that (i) any changes in law or the applicable interpretations of the staff of
the Commission do not permit the Issuers to effect the Exchange Offer, (ii) for any reason the
Exchange Offer is not consummated within 365 days after the Issue Date, (iii) any Holder is
prohibited by law or the applicable interpretations of the staff of the Commission from
participating in the Exchange Offer or does not receive Exchange Notes on the date of the exchange
that may be sold without restriction under state and federal securities laws (other than due solely
to the status of such Holder as an affiliate of any Issuer) or (iv) the Initial Purchaser so
requests with respect to Notes that have, or that are reasonably likely to be determined to have,
the status of unsold allotments in an initial distribution (each such event referred to in clauses
(i) through (iv) of this sentence, a “Shelf Filing Event”), then the Issuers shall use their
reasonable best efforts to, as promptly as practicable, file a Shelf Registration Statement
pursuant to Section 3 hereof.

          Section 3. Shelf Registration Statement

     If at any time a Shelf Filing Event shall occur, then:

     (a) The Issuers shall file with the Commission a Registration Statement for an offering to be
made on a continuous basis pursuant to Rule 415 covering all of the Registrable Notes not exchanged
in the Exchange Offer, Private Exchange Notes and Exchange Notes as to which Section 2(i)(iii) is
applicable (the “Shelf Registration Statement”). The Issuers shall use their reasonable best
efforts to file with the Commission the Shelf Registration Statement as promptly as practicable.
The Shelf Registration Statement shall be on an appropriate form permitting registration of such
Registrable Notes for resale by Holders in the manner or manners designated by them (including,
without limitation, one or more underwritten offerings). The Company shall not permit any
securities other than the Registrable Notes to be included in the Shelf Registration Statement.

     (b) The Issuers shall use their reasonable best efforts (x) to cause the Shelf Registration
Statement to be declared effective under the Securities Act on or prior to the 365th day after the
Issue Date and (y) to use their reasonable best efforts to keep the Shelf Registration Statement
continuously effective under the Securities Act for the period ending on the date which is one year
from the Issue Date, subject to extension pursuant to the penultimate paragraph of Section 5 hereof
(the “Effectiveness Period”), or such shorter period ending when all Registrable Notes covered by
the Shelf Registration Statement have been sold in the manner set forth and as contemplated in the
Shelf Registration Statement; provided, however, that (i) the Effectiveness Period in respect of
the Shelf Registration Statement shall be extended to the

7

 

extent required to permit dealers to comply with the applicable prospectus delivery
requirements of Rule 174 under the Securities Act and as otherwise provided herein and (ii) the
Company may suspend the effectiveness of the Shelf Registration Statement by written notice to the
Holders solely as a result of the filing of a post-effective amendment to the Shelf Registration
Statement to incorporate annual audited financial information with respect to the Company where
such post-effective amendment is not yet effective and needs to be declared effective to permit
Holders to use the related Prospectus.

     (c) The Issuers agree to supplement or make amendments to the Shelf Registration Statement as
and when required by the rules, regulations or instructions applicable to the registration form
used for such Shelf Registration Statement or by the Securities Act or rules and regulations
thereunder for shelf registration, or if reasonably requested by the Holders of a majority in
aggregate principal amount of the Registrable Notes covered by such Registration Statement or by
any underwriter of such Registrable Notes.

          Section 4. Liquidated Damages.

     (a) The Issuers and the Initial Purchaser agree that the Holders will suffer damages if the
Issuers fail to fulfill their respective obligations under Section 2 or Section 3 hereof and that
it would not be feasible to ascertain the extent of such damages with precision. Accordingly, the
Company agrees that if:

          (i) the Exchange Offer is not consummated or, if required, the Shelf Registration
Statement is not declared effective on or prior to the 365th day following the Issue Date,
or

          (ii) the Shelf Registration Statement is declared effective but thereafter ceases to be
effective or usable, except if the Shelf Registration Statement ceases to be effective or
usable as specifically permitted in Section 5(w) hereof

(each such event referred to in clauses (i) and (ii) a “Registration Default”), liquidated damages
in the form of additional cash interest (“Liquidated Damages”) will accrue on the affected Notes
and the affected Exchange Notes, as applicable. The rate of Liquidated Damages will be 0.25% per
annum for the first 90-day period immediately following the occurrence of a Registration Default,
increasing by an additional 0.25% per annum with respect to each subsequent 90-day period up to a
maximum amount of additional interest of 1.00% per annum, from and including the date on which any
such Registration Default shall occur to, but excluding, the earlier of (1) the date on which all
Registration Defaults have been cured or (2) the date on which all the Notes and Exchange Notes
cease to be Registrable Notes.

     Notwithstanding the foregoing, (1) the amount of Liquidated Damages payable shall not increase
because more than one Registration Default has occurred and is pending and (2) a Holder of Notes or
Exchange Notes who is not entitled to the benefits of the Shelf Registration Statement (i.e., such
Holder has not elected to include information) shall not be entitled to Liquidated Damages with
respect to a Registration Default that pertains to the Shelf Registration Statement.

8

 

     (b) The Company shall notify the Trustee within one Business Day after each and every date on
which an event occurs in respect of which Liquidated Damages are required to be paid (an “Event
Date”). Any amounts of Liquidated Damages due pursuant to this Section 4 will be payable in
addition to any other interest payable from time to time with respect to the Registrable Notes and
the Exchange Notes in cash on each interest payment date to the holders of record for such interest
payment date, commencing with the first such interest payment date occurring after any such
Liquidated Damages commence to accrue. The amount of Liquidated Damages will be determined in a
manner consistent with the calculation of interest under the Indenture.

          Section 5. Registration Procedures

     In connection with the filing of any Registration Statement pursuant to Section 2 or 3 hereof,
the Issuers shall effect such registrations to permit the sale of the securities covered thereby in
accordance with the intended method or methods of disposition thereof, and pursuant thereto and in
connection with any Registration Statement filed by the Issuers hereunder, the Issuers shall:

     (a) Prepare and file with the Commission the Registration Statement or Registration Statements
prescribed by Section 2 or 3 hereof, and use their reasonable best efforts to cause each such
Registration Statement to become effective and remain effective as provided herein; provided,
however, that, if (1) such filing is pursuant to Section 3 hereof or (2) a Prospectus contained in
the Exchange Offer Registration Statement filed pursuant to Section 2 hereof is required to be
delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange
Notes during the Applicable Period relating thereto, before filing any Registration Statement or
Prospectus or any amendments or supplements thereto, the Company shall furnish to and afford the
Holders of the Registrable Notes covered by such Registration Statement or each such Participating
Broker-Dealer, as the case may be, their counsel and the managing underwriters, if any, a
reasonable opportunity to review copies of all such documents (including copies of any documents to
be incorporated by reference therein and all exhibits thereto) proposed to be filed (in each case
at least five Business Days prior to such filing). The Company shall not file any Registration
Statement or Prospectus or any amendments or supplements thereto if the Holders of a majority in
aggregate principal amount of the Registrable Notes covered by such Registration Statement, or any
such Participating Broker-Dealer, as the case may be, their counsel, or the managing underwriters,
if any, shall reasonably object.

     (b) Prepare and file with the Commission such amendments and post-effective amendments to each
Shelf Registration Statement or Exchange Offer Registration Statement, as the case may be, as may
be necessary to keep such Registration Statement continuously effective for the Effectiveness
Period or the Applicable Period, as the case may be; cause the related Prospectus to be
supplemented by any Prospectus supplement required by applicable law, and as so supplemented to be
filed pursuant to Rule 424 (or any similar provisions then in force) promulgated under the
Securities Act; and comply with the provisions of the Securities Act and the Exchange Act
applicable to each of them with respect to the disposition of all securities covered by such
Registration Statement as so amended or in such Prospectus as so supplemented and with respect to
the subsequent resale of any securities being sold by a Participating Broker-

9

 

Dealer covered by any such Prospectus, in each case, in accordance with the intended methods
of distribution set forth in such Registration Statement or Prospectus, as so amended.

     (c) If (1) a Shelf Registration Statement is filed pursuant to Section 3 hereof or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2
hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period relating thereto, notify the selling
Holders of Registrable Notes, or each such Participating Broker-Dealer, as the case may be, their
counsel and the managing underwriters, if any, as promptly as possible and, if requested by any
such Person, confirm such notice in writing (i) when a Prospectus or any Prospectus supplement or
post-effective amendment has been filed and, with respect to a Registration Statement or any
post-effective amendment, when the same has become effective under the Securities Act (including in
such notice a written statement that any Holder may, upon request, obtain, at the sole expense of
the Company, one conformed copy of such Registration Statement or post-effective amendment
including financial statements and schedules, documents incorporated or deemed to be incorporated
by reference and exhibits), (ii) of the issuance by the Commission of any stop order suspending the
effectiveness of a Registration Statement or of any order preventing or suspending the use of any
preliminary prospectus or the initiation of any proceedings for that purpose, (iii) if at any time
when a Prospectus is required by the Securities Act to be delivered in connection with sales of the
Registrable Notes or resales of Exchange Notes by Participating Broker-Dealers the representations
and warranties of the Issuers contained in any agreement (including any underwriting agreement)
contemplated by Section 5(m) hereof cease to be true and correct in all material respects, (iv) of
the receipt by any of the Issuers of any notification with respect to the suspension of the
qualification or exemption from qualification of a Registration Statement or any of the Registrable
Notes or the Exchange Notes for offer or sale in any jurisdiction, or the initiation or threatening
of any proceeding for such purpose, (v) of the happening of any event, the existence of any
condition or any information becoming known to the Company that makes any statement made in such
Registration Statement or related Prospectus or any document incorporated or deemed to be
incorporated therein by reference untrue in any material respect or that requires the making of any
changes in or amendments or supplements to such Registration Statement, Prospectus or documents so
that, in the case of the Registration Statement, 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 not misleading, and that in the case of the Prospectus, 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 the light of the circumstances under which
they were made, not misleading and (vi) of the Company’s determination that a post-effective
amendment to a Registration Statement would be appropriate.

     (d) If (1) a Shelf Registration Statement is filed pursuant to Section 3 hereof, or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2
hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period, use their reasonable best efforts to
prevent the issuance of any order suspending the effectiveness of a Registration Statement or of
any order preventing or suspending the use of a Prospectus or suspending the qualification (or
exemption from qualification) of any of the Registrable Notes or the Exchange Notes, as the case

10

 

may be, for sale in any jurisdiction and, if any such order is issued, to use their reasonable
best efforts to obtain the withdrawal of any such order at the earliest practicable moment.

     (e) If (1) a Shelf Registration Statement is filed pursuant to Section 3 hereof or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2
hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period and, if reasonably requested by the
managing underwriter or underwriters (if any), the Holders of a majority in aggregate principal
amount of the Registrable Notes covered by such Registration Statement or any Participating
Broker-Dealer, as the case may be, (i) promptly incorporate in such Registration Statement or
Prospectus, a prospectus supplement or post-effective amendment such information as the managing
underwriter or underwriters (if any), such Holders or any Participating Broker-Dealer, as the case
may be (based upon advice of counsel), determine is reasonably necessary to be included therein and
(ii) make all required filings of such prospectus supplement or such post-effective amendment as
soon as practicable after the Company has received notification of the matters to be incorporated
in such prospectus supplement or post-effective amendment; provided, however, that the Issuers
shall not be required to take any action hereunder that would, in the written opinion of counsel to
the Company, violate applicable laws.

     (f) If (1) a Shelf Registration Statement is filed pursuant to Section 3 hereof or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2
hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period, furnish to each selling Holder of
Registrable Notes or each such Participating Broker-Dealer, as the case may be, who so requests,
their counsel and each managing underwriter, if any, at the sole expense of the Company, one
conformed copy of the Registration Statement or Registration Statements and each post-effective
amendment thereto, including financial statements and schedules, and, if requested, all documents
incorporated or deemed to be incorporated therein by reference and all exhibits.

     (g) If (1) a Shelf Registration Statement is filed pursuant to Section 3 hereof or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2
hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period, deliver to each selling Holder of
Registrable Notes or each such Participating Broker-Dealer, as the case may be, their respective
counsel and the underwriters, if any, at the sole expense of the Company, as many copies of the
Prospectus or Prospectuses (including each form of preliminary prospectus) and each amendment or
supplement thereto and any documents incorporated by reference therein as such Persons may
reasonably request; and, subject to the last paragraph of this Section 5, the Issuers hereby
consent to the use of such Prospectus and each amendment or supplement thereto by each of the
selling Holders of Registrable Notes or each such Participating Broker-Dealer, as the case may be,
and the underwriters or agents, if any, and dealers (if any), in connection with the offering and
sale of the Registrable Notes or the sale by Participating Broker-Dealers of the Exchange Notes.

     (h) Prior to any public offering of Registrable Notes or Exchange Notes or any delivery of a
Prospectus contained in the Exchange Offer Registration Statement by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, use

11

 

their reasonable best efforts to register or qualify, and to cooperate with the selling
Holders of Registrable Notes or each such Participating Broker-Dealer, as the case may be, the
managing underwriter or underwriters, if any, and their respective counsel in connection with the
registration or qualification (or exemption from such registration or qualification) of such
Registrable Notes or Exchange Notes, as the case may be, for offer and sale under the securities or
Blue Sky laws of such jurisdictions within the United States as any selling Holder, Participating
Broker-Dealer, or the managing underwriter or underwriters reasonably request; provided, however,
that where Exchange Notes or Registrable Notes are offered other than through an underwritten
offering, the Company agrees to cause the Company’s counsel to perform Blue Sky investigations and
file registrations and qualifications required to be filed pursuant to this Section 5(h); keep each
such registration or qualification (or exemption therefrom) effective during the period such
Registration Statement is required to be kept effective and do any and all other acts or things
reasonably necessary or advisable to enable the disposition in such jurisdictions of such Exchange
Notes or Registrable Notes covered by the applicable Registration Statement; provided, however,
that no Issuer shall be required to (A) qualify generally to do business in any jurisdiction where
it is not then so qualified, (B) take any action that would subject it to general service of
process in any such jurisdiction where it is not then so subject or (C) subject itself to taxation
in excess of a nominal dollar amount in any such jurisdiction where it is not then so subject.

     (i) If a Shelf Registration Statement is filed pursuant to Section 3 hereof, cooperate with
the selling Holders of Registrable Notes and the managing underwriter or underwriters, if any, to
facilitate the timely preparation and delivery of certificates representing Registrable Notes to be
sold, which certificates shall not bear any restrictive legends and shall be in a form eligible for
deposit with The Depository Trust Company; and enable such Registrable Notes to be in such
denominations and registered in such names as the managing underwriter or underwriters, if any, or
selling Holders may request at least two Business Days prior to any sale of such Registrable Notes
or Exchange Notes.

     (j) Use their reasonable best efforts to cause the Registrable Notes or Exchange Notes covered
by any Registration Statement to be registered with or approved by such other governmental agencies
or authorities as may be reasonably necessary to enable the seller or sellers thereof or the
underwriter or underwriters, if any, to consummate the disposition of such Registrable Notes or
Exchange Notes, except as may be required solely as a consequence of the nature of such selling
Holder’s business, in which case the Company will cooperate in all reasonable respects with the
filing of such Registration Statement and the granting of such approvals.

     (k) If (1) a Shelf Registration Statement is filed pursuant to Section 3 hereof or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2
hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period, upon the occurrence of any event
contemplated by Section 5(c)(v) or 5(c)(vi) hereof, as promptly as practicable prepare and (subject
to Section 5(a) hereof and the penultimate paragraph of this Section 5) file with the Commission,
at the sole expense of the Company, a supplement or post-effective amendment to the Registration
Statement or a supplement to the related Prospectus or any document incorporated or deemed to be
incorporated therein by reference, or file any other required

12

 

document so that, as thereafter delivered to the purchasers of the Registrable Notes being
sold thereunder or to the purchasers of the Exchange Notes to whom such Prospectus will be
delivered by a Participating Broker-Dealer, any such Prospectus will not 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 the light of the circumstances under which they were
made, not misleading.

     (l) Promptly after the consummation of the Exchange Offer or prior to the effective date of
the first Shelf Registration Statement relating to the Registrable Notes, as the case may be, (i)
provide the Trustee with certificates for the Exchange Notes or the Registrable Notes, as the case
may be, in a form eligible for deposit with The Depository Trust Company and (ii) provide a CUSIP
number for the Exchange Notes or the Registrable Notes, as the case may be.

     (m) In connection with any underwritten offering of Registrable Notes pursuant to a Shelf
Registration Statement, enter into an underwriting agreement as is customary in underwritten
offerings of debt securities similar to the Notes and take all such other actions as are reasonably
requested by the managing underwriter or underwriters in order to expedite or facilitate the
registration or the disposition of such Registrable Notes and, in such connection, (i) make such
representations and warranties to, and covenants with, the underwriters with respect to the
business of the Company and its subsidiaries (including any acquired business, properties or
entity, if applicable) and the Registration Statement, Prospectus and documents, if any,
incorporated or deemed to be incorporated by reference therein, in each case, as are customarily
made by issuers to underwriters in underwritten offerings of debt securities similar to the Notes,
and confirm the same in writing if and when requested; (ii) use their reasonable best efforts to
obtain the written opinions of counsel to the Company and written updates thereof in form, scope
and substance reasonably satisfactory to the managing underwriter or underwriters, addressed to the
underwriters covering the matters customarily covered in opinions requested in underwritten
offerings and such other matters as may be reasonably requested by the managing underwriter or
underwriters; (iii) use their reasonable best efforts to obtain “cold comfort” letters and updates
thereof in form, scope and substance reasonably satisfactory to the managing underwriter or
underwriters from the independent certified public accountants of the Company (and, if necessary,
any other independent certified public accountants of any subsidiary of the Company or of any
business acquired by the Company for which financial statements and financial data are, or are
required to be, included or incorporated by reference in the Registration Statement), addressed to
each of the underwriters, such letters to be in customary form and covering matters of the type
customarily covered in “cold comfort” letters in connection with underwritten offerings; and (iv)
if an underwriting agreement is entered into, the same shall contain indemnification provisions and
procedures no less favorable than those set forth in Section 7 hereof (or such other provisions and
procedures acceptable to Holders of a majority in aggregate principal amount of Registrable Notes
covered by such Registration Statement and the managing underwriter or underwriters or agents) with
respect to all parties to be indemnified pursuant to said Section. The above shall be done at each
closing under such underwriting agreement, or as and to the extent required thereunder.

     (n) If (1) a Shelf Registration Statement is filed pursuant to Section 3 hereof or (2) a
Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2

13

 

hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer
who seeks to sell Exchange Notes during the Applicable Period, make available for inspection
by any selling Holder of such Registrable Notes being sold or each such Participating
Broker-Dealer, as the case may be, any underwriter participating in any such disposition of
Registrable Notes, if any, and any attorney, accountant or other agent retained by any such selling
Holder or each such Participating Broker-Dealer, as the case may be, or underwriter (collectively,
the “Inspectors”), at the offices where normally kept, during reasonable business hours, all
financial and other records, pertinent corporate documents and instruments of the Company and its
subsidiaries (collectively, the “Records”) as shall be reasonably necessary to enable them to
exercise any applicable due diligence responsibilities, and cause the officers, directors and
employees of the Company and its subsidiaries to supply all information reasonably requested by any
such Inspector in connection with such Registration Statement and Prospectus. Each Inspector shall
agree in writing that it will not disclose any records that the Company determines, in good faith,
to be confidential and that it notifies the Inspectors in writing are confidential unless (i) the
disclosure of such Records is necessary to avoid or correct a misstatement or omission in such
Registration Statement or Prospectus, (ii) the release of such Records is ordered pursuant to a
subpoena or other order from a court of competent jurisdiction, (iii) disclosure of such
information is necessary or advisable in connection with any action, claim, suit or proceeding,
directly or indirectly, involving or potentially involving such Inspector and arising out of, based
upon, relating to, or involving this Agreement or the Purchase Agreement, or any transactions
contemplated hereby or thereby or arising hereunder or thereunder or (iv) the information in such
Records has been made generally available to the public; provided, however, that such Inspector
shall take such actions as are reasonably necessary to protect the confidentiality of such
information (if practicable) to the extent such action is otherwise not inconsistent with, an
impairment of or in derogation of the rights and interests of the Holder or any Inspector.

     (o) Provide an indenture trustee for the Registrable Notes or the Exchange Notes, as the case
may be, and cause the Indenture or the trust indenture provided for in Section 2(a) hereof to be
qualified under the TIA not later than the effective date of the Exchange Offer or the first
Registration Statement relating to the Registrable Notes; and in connection therewith, cooperate
with the trustee under any such indenture and the Holders of the Registrable Notes or Exchange
Notes, as applicable, to effect such changes to such indenture as may be required for such
indenture to be so qualified in accordance with the terms of the TIA; and execute, and use their
reasonable best efforts to cause such trustee to execute, all documents as may be required to
effect such changes, and all other forms and documents required to be filed with the Commission to
enable such indenture to be so qualified in a timely manner.

     (p) Comply with all applicable rules and regulations of the Commission and make generally
available to the Company’s securityholders earnings statements satisfying the provisions of Section
11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the
Securities Act) no later than 45 days after the end of any 12-month period (or 90 days after the
end of any 12-month period if such period is a fiscal year) (i) commencing at the end of any fiscal
quarter in which Registrable Notes or Exchange Notes are sold to underwriters in a firm commitment
or best efforts underwritten offering and (ii) if not sold to underwriters in such an offering,
commencing on the first day of the first fiscal quarter of the

14

 

Company after the effective date of
a Registration Statement, which statements shall cover said 12-month periods.

     (q) Upon the request of a Holder, upon consummation of the Exchange Offer or a Private
Exchange, use their reasonable best efforts to obtain an opinion of counsel to the Company, in a
form customary for underwritten transactions, addressed to the Trustee for the benefit of all
Holders of Registrable Notes participating in the Exchange Offer or the Private Exchange, as the
case may be, that the Exchange Notes or Private Exchange Notes, as the case may be, and the related
indenture constitute legal, valid and binding obligations of the Issuers, as applicable,
enforceable against the Issuers in accordance with its respective terms, subject to customary
exceptions and qualifications.

     (r) If the Exchange Offer or a Private Exchange is to be consummated, upon delivery of the
Registrable Notes by Holders to the Company (or to such other Person as directed by the Company) in
exchange for the Exchange Notes or the Private Exchange Notes, as the case may be, mark, or cause
to be marked, on such Registrable Notes that such Registrable Notes are being cancelled in exchange
for the Exchange Notes or the Private Exchange Notes, as the case may be; in no event shall such
Registrable Notes be marked as paid or otherwise satisfied.

     (s) Cooperate with each seller of Registrable Notes covered by any Registration Statement and
each underwriter, if any, participating in the disposition of such Registrable Notes and their
respective counsel in connection with any filings required to be made with the Financial Industry
Regulatory Authority (the “FINRA”).

     (t) Use their reasonable best efforts to take all other steps necessary or advisable to effect
the registration of the Exchange Notes and/or Registrable Notes covered by a Registration Statement
contemplated hereby.

     (u) The Company may require each seller of Registrable Notes or Exchange Notes as to which any
registration is being effected to furnish to the Company such information regarding such seller and
the distribution of such Registrable Notes or Exchange Notes as the Company may, from time to time,
reasonably request. The Company may exclude from such registration the Registrable Notes or
Exchange Notes of any seller so long as such seller fails to furnish such information within a
reasonable time after receiving such request. Each seller as to which any Shelf Registration
Statement is being effected agrees to furnish promptly to the Company all information required to
be disclosed in order to make any information previously furnished to the Company by such seller
not materially misleading.

     (v) If any such Registration Statement refers to any Holder by name or otherwise as the holder
of any securities of the Company, then such Holder shall have the right to require (i) the
insertion therein of language, in form and substance reasonably satisfactory to such Holder, to the
effect that the holding by such Holder of such securities is not to be construed as a
recommendation by such Holder of the investment quality of the securities covered thereby and that
such holding does not imply that such Holder will assist in meeting any future financial
requirements of the Company or (ii) in the event that such reference to such Holder by name or
otherwise is not required by the Securities Act or any similar federal statute then in force, the

15

 

deletion of the reference to such Holder in any amendment or supplement to the Registration
Statement filed or prepared subsequent to the time that such reference ceases to be required.

     (w) Each Holder of Registrable Notes and each Participating Broker-Dealer agrees by
acquisition of such Registrable Notes or Exchange Notes that, upon actual receipt of any notice
from the Company (i) of the happening of any event of the kind described in Section 5(c)(ii),
5(c)(iii), 5(c)(iv) or 5(c)(v) hereof or (ii) that the Board of Directors of the Company (the
“Board of Directors”) has resolved that the Company has a bona fide business purpose for doing so,
then the Company may delay the filing or the effectiveness of the Exchange Offer Registration
Statement or the Shelf Registration Statement (if not then filed or effective, as applicable) and
shall not be required to maintain the effectiveness thereof or amend or supplement the Exchange
Offer Registration Statement or the Shelf Registration Statement, in all cases, for a period (a
“Delay Period”) expiring upon the earlier to occur of (A) in the case of the immediately preceding
clause (i), such Holder’s or Participating Broker-Dealer’s receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 5(k) hereof or until it is advised in
writing (the “Advice”) by the Company that the use of the applicable Prospectus may be resumed, and
has received copies of any amendments or supplements thereto or (B) in the case of the immediately
preceding clause (ii), the date which is the earlier of (1) the date on which such business purpose
ceases to interfere with the Company’s obligations to file or maintain the effectiveness of any
such Registration Statement pursuant to this Agreement or (2) 60 days after the Company notifies
the Holders of such good faith determination. There shall not be more than 90 days of Delay Periods
during any 12-month period. Each of the Effectiveness Period and the Applicable Period, if
applicable, shall be extended by the number of days during any Delay Period. Any Delay Period will
not alter the obligations of the Company to pay Liquidated Damages under the circumstances set
forth in Section 4 hereof.

     (x) In the event of any Delay Period pursuant to Section 5(w)(ii) of the preceding paragraph,
notice shall be given as soon as practicable after the Board of Directors makes such a
determination of the need for a Delay Period and shall state, to the extent practicable, an
estimate of the duration of such Delay Period and shall advise the recipient thereof of the
agreement of such Holder provided in the next succeeding sentence. Each Holder, by his acceptance
of any Registrable Note, agrees that during any Delay Period, each Holder will discontinue
disposition of such Notes or Exchange Notes covered by such Registration Statement or Prospectus or
Exchange Notes to be sold by such Holder or Participating Broker-Dealer, as the case may be.

          Section 6. Registration Expenses

     All fees and expenses incident to the performance of or compliance with this Agreement by the
Issuers shall be borne by the Issuers, whether or not the Exchange Offer Registration Statement or
the Shelf Registration Statement is filed or becomes effective or the Exchange Offer is
consummated, including, without limitation, (i) all registration and filing fees (including,
without limitation, (A) fees with respect to filings required to be made with the FINRA in
connection with an underwritten offering and (B) fees and expenses of compliance with state
securities or Blue Sky laws (including, without limitation, reasonable fees and disbursements of
counsel in connection with Blue Sky qualifications of the Registrable Notes or Exchange Notes and
determination of the eligibility of the Registrable Notes or Exchange Notes for investment under
the laws of such jurisdictions (x) where the Holders of Registrable Notes are located, in

16

 

the case of an Exchange Offer, or (y) as provided in Section 5(h) hereof, in the case of a Shelf
Registration Statement or in the case of Exchange Notes to be sold by a Participating Broker-Dealer
during the Applicable Period)), (ii) printing expenses, including, without limitation,
expenses of printing prospectuses if the printing of prospectuses is requested by the managing
underwriter or underwriters, if any, or by the Holders of a majority in aggregate principal amount
of the Registrable Notes included in any Registration Statement or in respect of Exchange Notes to
be sold by any Participating Broker-Dealer during the Applicable Period, as the case may be, (iii)
messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company
and reasonable fees and disbursements of one special counsel for all of the sellers of Registrable
Notes (exclusive of any counsel retained pursuant to Section 7 hereof), (v) fees and disbursements
of all independent certified public accountants referred to in Section 5(m)(iii) hereof (including,
without limitation, the expenses of any special audit and “cold comfort” letters required by or
incident to such performance), (vi) Securities Act liability insurance, if the Company desires such
insurance, (vii) fees and expenses of all other Persons retained by any of the Issuers, (viii)
internal expenses of the Issuers (including, without limitation, all salaries and expenses of
officers and employees of the Company performing legal or accounting duties), (ix) the expense of
any audit, (x) the fees and expenses incurred in connection with the listing of the securities to
be registered on any securities exchange, and the obtaining of a rating of the securities, in each
case, if applicable, and (xi) the expenses relating to printing, word processing and distributing
all Registration Statements, underwriting agreements, indentures and any other documents necessary
in order to comply with this Agreement. Notwithstanding the foregoing or anything to the contrary,
each Holder shall pay all underwriting discounts and commissions of any underwriters with respect
to any Registrable Notes sold by or on behalf of it.

          Section 7. Indemnification

     (a) Each Issuer, jointly and severally, agrees to indemnify and hold harmless each Holder of
Registrable Notes and each Participating Broker-Dealer selling Exchange Notes during the Applicable
Period, each Person, if any, who controls any such Person within the meaning of Section 15 of the
Securities Act or Section 20(a) of the Exchange Act, the agents, employees, officers and directors
of each Holder and each such Participating Broker-Dealer and the agents, employees, officers and
directors of any such controlling Person (each, a “Participant”) from and against any and all
losses, liabilities, claims, damages and expenses whatsoever (including, but not limited to,
reasonable attorneys’ fees and any and all reasonable expenses whatsoever incurred in
investigating, preparing or defending against any litigation, commenced or threatened, or any claim
whatsoever, and any and all reasonable amounts paid in settlement of any claim or litigation)
(collectively, “Losses”) to which they or any of them may become subject under the Securities Act,
the Exchange Act or otherwise insofar as such Losses (or actions in respect thereof) arise out of
or are based upon any untrue statement or alleged untrue statement of a material fact contained in
any Registration Statement (or any amendment thereto) or Prospectus (as amended or supplemented if
the Company shall have furnished any amendments or supplements thereto) or any preliminary
prospectus or free writing prospectus (as defined in Rule 433 under the Securities Act), or caused
by, arising out of or based upon any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, in the case of the
Prospectus, in the light of the circumstances under which they were made, not misleading, provided
that the foregoing indemnity shall not be available to any Participant insofar as such Losses are
caused by any

17

 

untrue statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with information relating to such Participant furnished to the Company in
writing by or on behalf of such Participant expressly for use therein. This indemnity agreement
will be in
addition to any liability that the Issuers may otherwise have, including, but not limited to,
liability under this Agreement.

     (b) Each Participant agrees, severally and not jointly, to indemnify and hold harmless each
Issuer, each Person, if any, who controls any Issuer within the meaning of Section 15 of the
Securities Act or Section 20(a) of the Exchange Act, and each of their respective agents,
employees, officers and directors and the agents, employees, officers and directors of any such
controlling Person from and against any Losses to which they or any of them may become subject
under the Securities Act, the Exchange Act or otherwise insofar as such Losses (or actions in
respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of
a material fact contained in any Registration Statement (or any amendment thereto) or Prospectus
(as amended or supplemented if the Company shall have furnished any amendments or supplements
thereto) or any preliminary prospectus or free writing prospectus, or caused by, arising out of or
based upon any omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein, in the case of the Prospectus, in the light of
the circumstances under which they were made, not misleading, in each case to the extent, but only
to the extent, that any such Loss arises out of or is based upon any untrue statement or alleged
untrue statement or omission or alleged omission made in reliance upon and in conformity with
information relating to such Participant furnished in writing to the Company by or on behalf of
such Participant expressly for use therein.

     (c) Promptly after receipt by an indemnified party under subsection 7(a) or 7(b) above of
notice of the commencement of any action, suit or proceeding (collectively, an “action”), such
indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party
under such subsection, notify each party against whom indemnification is to be sought in writing of
the commencement of such action (but the failure so to notify an indemnifying party shall not
relieve such indemnifying party from any liability that it may have under this Section 7 except to
the extent that it has been prejudiced in any material respect by such failure). In case any such
action is brought against any indemnified party, and it notifies an indemnifying party of the
commencement of such action, the indemnifying party will be entitled to participate in such action,
and to the extent it may elect by written notice delivered to the indemnified party promptly after
receiving the aforesaid notice from such indemnified party, to assume the defense of such action
with counsel satisfactory to such indemnified party. Notwithstanding the foregoing, the indemnified
party or parties shall have the right to employ its or their own counsel in any such action, but
the reasonable fees and expenses of such counsel shall be at the expense of such indemnified party
or parties unless (i) the employment of such counsel shall have been authorized in writing by the
indemnifying parties in connection with the defense of such action, (ii) the indemnifying parties
shall not have employed counsel to take charge of the defense of such action within a reasonable
time after notice of commencement of the action, or (iii) the named parties to such action
(including any impleaded parties) include such indemnified party and the indemnifying party or
parties (or such indemnifying parties have assumed the defense of such action), and such
indemnified party or parties shall have reasonably concluded that there may be defenses available
to it or them that are different from or additional to those available to one or all of the
indemnifying parties (in which case the indemnifying

18

 

parties shall not have the right to direct the
defense of such action on behalf of the indemnified party or parties), in any of which events such
reasonable fees and expenses of counsel shall be borne by the indemnifying parties. In no event
shall the indemnifying party be liable for the fees
and expenses of more than one counsel (together with appropriate local counsel) at any time
for all indemnified parties in connection with any one action or separate but substantially similar
or related actions arising in the same jurisdiction out of the same general allegations or
circumstances. An indemnifying party shall not be liable for any settlement of any claim or action
effected without its written consent, which consent may not be unreasonably withheld.
Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for fees and expenses of counsel as
contemplated by paragraph (a) or (b) of this Section 7, then the indemnifying party agrees that it
shall be liable for any settlement of any proceeding effected without its written consent if (i)
such settlement is entered into more than 45 business days after receipt by such indemnifying party
of the aforesaid request, (ii) such indemnifying party shall not have reimbursed the indemnified
party in accordance with such request prior to the date of such settlement and (iii) such
indemnified party shall have given the indemnifying party at least 45 days prior notice of its
intention to settle. No indemnifying party shall, without the prior written consent of the
indemnified party, effect any settlement of any pending or threatened proceeding in respect of
which any indemnified party is or could have been a party and indemnity could have been sought
hereunder by such indemnified 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.

     (d) In order to provide for contribution in circumstances in which the indemnification
provided for in this Section 7 is for any reason held to be unavailable from the indemnifying
party, or is insufficient to hold harmless a party indemnified under this Section 7, each
indemnifying party shall contribute to the amount paid or payable by such indemnified party as a
result of such aggregate Losses (i) in such proportion as is appropriate to reflect the relative
benefits received by each indemnifying party, on the one hand, and each indemnified party, on the
other hand, from the sale of the Notes to the Initial Purchaser or the resale of the Registrable
Notes by such Holder, as applicable, or (ii) if such allocation is not permitted by applicable law,
in such proportion as is appropriate to reflect not only the relative benefits referred to above
but also the relative fault of each indemnified party, on the one hand, and each indemnifying
party, on the other hand, in connection with the statements or omissions that resulted in such
Losses, as well as any other relevant equitable considerations. The relative benefits received by
the Issuers, on the one hand, and each Participant, on the other hand, shall be deemed to be in the
same proportion as (x) the total proceeds from the sale of the Notes to the Initial Purchaser (net
of discounts and commissions but before deducting expenses) received by the Issuers are to (y) the
total net profit received by such Participant in connection with the sale of the Registrable Notes.
The relative fault of the parties shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Issuers or such Participant and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission or alleged statement or omission.

     (e) The parties agree that it would not be just and equitable if contribution pursuant to this
Section 7 were determined by pro rata allocation or by any other method of allocation that does not
take into account the equitable considerations referred to above. Notwithstanding the

19

 

provisions of
this Section 7, (i) in no case shall any Participant be required to contribute any amount in excess
of the amount by which the net profit received by such Participant in connection with the sale of
the Registrable Notes exceeds the amount of any damages that such
Participant has otherwise been required to pay by reason of any untrue or alleged untrue
statement or omission or alleged omission and (ii) no person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation. Any party entitled to
contribution will, promptly after receipt of notice of commencement of any action against such
party in respect of which a claim for contribution may be made against another party or parties
under this Section 7, notify such party or parties from whom contribution may be sought, but the
omission to so notify such party or parties shall not relieve the party or parties from whom
contribution may be sought from any obligation it or they may have under this Section 7 or
otherwise, except to the extent that it has been prejudiced in any material respect by such
failure; provided, however, that no additional notice shall be required with respect to any action
for which notice has been given under this Section 7 for purposes of indemnification. Anything in
this section to the contrary notwithstanding, no party shall be liable for contribution with
respect to any action or claim settled without its written consent, provided, that such written
consent was not unreasonably withheld.

          Section 8. Rules 144 and 144A

     The Company covenants that it will file the reports required to be filed by it under the
Securities Act and the Exchange Act and the rules and regulations adopted by the Commission
thereunder in a timely manner in accordance with the requirements of the Securities Act and the
Exchange Act and, if at any time the Company is not required to file such reports, it will, upon
the request of any Holder or beneficial owner of Registrable Notes, make available such information
necessary to permit sales pursuant to Rule 144A under the Securities Act. The Issuers further
covenant that they will take such further action as any Holder of Registrable Notes may reasonably
request from time to time to enable such Holder to sell Registrable Notes without registration
under the Securities Act within the limitation of the exemptions provided by (a) Rule 144 and Rule
144A under the Securities Act, as such rules may be amended from time to time, or (b) any similar
rule or regulation hereafter adopted by the Commission.

          Section 9. Underwritten Registrations

     If any of the Registrable Notes covered by any Shelf Registration Statement are to be sold in
an underwritten offering, the investment banker or investment bankers and manager or managers that
will manage the offering will be selected by the Holders of a majority in aggregate principal
amount of such Registrable Notes included in such offering and shall be reasonably acceptable to
the Company.

     No Holder of Registrable Notes may participate in any underwritten registration hereunder if
such Holder does not (a) agree to sell such Holder’s Registrable Notes on the basis provided in any
underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements
and (b) complete and execute all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents required under the terms of such underwriting arrangements.

20

 

          Section 10. Miscellaneous

     (a) No Inconsistent Agreements. The Issuers have not, as of the date hereof, and shall not,
after the date of this Agreement, enter into any agreement with respect to any of their securities
that is inconsistent with the rights granted to the Holders of Registrable Notes in this Agreement
or otherwise conflicts with the provisions hereof. The rights granted to the Holders hereunder do
not conflict with and are not inconsistent with, in any material respect, the rights granted to the
holders of any of the Issuers’ other issued and outstanding securities under any such agreements.
The Issuers have not entered and will not enter into any agreement with respect to any of their
securities which will grant to any Person piggy-back registration rights with respect to any
Registration Statement.

     (b) Adjustments Affecting Registrable Notes. The Company shall not, directly or indirectly,
take any action with respect to the Registrable Notes as a class that would adversely affect the
ability of the Holders of Registrable Notes to include such Registrable Notes in a registration
undertaken pursuant to this Agreement.

     (c) Amendments and Waivers. The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof may not be given
except pursuant to a written agreement duly signed and delivered by (I) the Company (on behalf of
all Issuers) and (II)(A) the Holders of not less than a majority in aggregate principal amount of
the then outstanding Registrable Notes and (B) in circumstances that would adversely affect the
Participating Broker-Dealers, the Participating Broker-Dealers holding not less than a majority in
aggregate principal amount of the Exchange Notes held by all Participating Broker-Dealers;
provided, however, that Section 7 and this Section 10(c) may not be amended, modified or
supplemented, and the amount of any Liquidated Damages payable hereunder may not be reduced and the
due date thereof may not be extended, except in any case pursuant to a written agreement duly
signed and delivered by each Holder and each Participating Broker-Dealer (including any Person who
was a Holder or Participating Broker-Dealer of Registrable Notes or Exchange Notes, as the case may
be, disposed of pursuant to any Registration Statement) affected by any such amendment,
modification, supplement, waiver or consent. 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 Holders of Registrable Notes whose securities are being sold pursuant to a Registration
Statement and that does not directly or indirectly affect, impair, limit or compromise the rights
of other Holders of Registrable Notes may be given by Holders of at least a majority in aggregate
principal amount of the Registrable Notes being sold pursuant to such Registration Statement.

     (d) Notices. All notices and other communications (including, without limitation, any notices
or other communications to the Trustee) provided for or permitted hereunder shall be made in
writing by hand-delivery, registered first-class mail, next-day air courier or facsimile:

     (i) if to a Holder of the Registrable Notes or any Participating Broker-Dealer, at the
most current address of such Holder or Participating Broker-Dealer, as the case may be, set
forth on the records of the registrar under the Indenture.

21

 

	 	(ii)	 	if to the Issuers, at the address as follows:

	 
	 	 	 	PHI, Inc.
Post Office Box 90808

Municipal Airport

Lafayette, Louisiana 70509-0808

Telephone: (337) 235-2452

Fax: (337) 206-9576

Attention: Chief Financial Officer
	 
	 	(iii)	 	if to the Initial Purchaser, at the address as follows:
	 
	 	 	 	UBS Securities LLC

299 Park Avenue

New York, New York 10171

Telephone: (212) 821-3000

Fax: (212) 821-6890

Attention: Syndicate Department

     All such notices and communications shall be deemed to have been duly given: when delivered by
hand, if personally delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt is acknowledged by the recipient’s facsimile machine, if faxed;
and on the next Business Day, if timely delivered to an air courier guaranteeing overnight
delivery.

     Copies of all such notices, demands or other communications shall be concurrently delivered by
the Person giving the same to the Trustee at the address and in the manner specified in the
Indenture.

     (e) Guarantors. So long as any Registrable Notes remain outstanding, the Issuers shall cause
each Person that becomes a guarantor of the Notes under the Indenture to execute and deliver a
counterpart to this Agreement which subjects such Person to the provisions of this Agreement as a
Guarantor. Each of the Guarantors agrees to join the Company in all of its undertakings hereunder
to effect the Exchange Offer for the Exchange Notes and the filing of any Shelf Registration
Statement required hereunder.

     (f) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors and assigns of each of the parties hereto, the Holders and the Participating
Broker-Dealers; provided, however, that this Agreement shall not inure to the benefit of or be
binding upon a successor or assign of a Holder unless and to the extent such successor or assign
holds Registrable Notes.

     (g) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement.

22

 

     (h) Headings. The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof.

     (i) GOVERNING LAW, WAIVER OF JURY TRIAL. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE AND PERFORMED
WHOLLY WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. EACH ISSUER
HEREBY AGREES ON ITS OWN BEHALF TO WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY PROCEEDINGS OR
COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) WITH RESPECT TO ANY CLAIM,
COUNTER-CLAIM OR ACTION ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

     (j) 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 best 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.

     (k) Securities Held by the Company or Its Affiliates. Whenever the consent or approval of
Holders of a specified percentage of Registrable Notes is required hereunder, Registrable Notes
held by the Company or any of its affiliates (as such term is defined in Rule 405 under the
Securities Act) shall not be counted in determining whether such consent or approval was given by
the Holders of such required percentage.

     (l) Third-Party Beneficiaries. Holders and beneficial owners of Registrable Notes and
Participating Broker-Dealers are intended third-party beneficiaries of this Agreement, and this
Agreement may be enforced by such Persons. No other Person is intended to be, or shall be construed
as, a third-party beneficiary of this Agreement.

     (m) Attorneys’ Fees. As between the parties to this Agreement, in any action or proceeding
brought to enforce any provision of this Agreement, or where any provision hereof is validly
asserted as a defense, the successful party shall be entitled to recover reasonable attorneys’ fees
actually incurred in addition to its costs and expenses and any other available remedy.

     (n) Entire Agreement. This Agreement, together with the Purchase Agreement and the Indenture,
is intended by the parties as a final and exclusive statement of the agreement and understanding of
the parties hereto in respect of the subject matter contained herein and therein and any and all
prior oral or written agreements, representations, or warranties, contracts, understandings,
correspondence, conversations and memoranda between the Holders on the one hand and the Company on
the other, or between or among any agents, representatives, parents,

23

 

subsidiaries, affiliates,
predecessors in interest or successors in interest with respect to the subject matter hereof and
thereof are merged herein and replaced hereby.

[remainder of page left intentionally blank]

24

 

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

	 	 	 	 	 
	 	PHI, INC.

 	 
	 	By:  	/s/ Michael J. McCann
 	 
	 	 	Name:  	Michael J. McCann 	 
	 	 	Title:  	Chief Financial Officer,
Treasurer and Secretary 	 
	 
	 	INTERNATIONAL HELICOPTER TRANSPORT, INC.

PHI TECH SERVICES, INC.

AIR EVAC SERVICES, INC.

PHI AIR MEDICAL, INC.

PETROLEUM HELICOPTERS INTERNATIONAL, INC.

HELICOPTER MANAGEMENT, L.L.C.

HELICOPTER LEASING, L.L.C.

HELEX, L.L.C.

SKY LEASING, L.L.C.

VERTILEASE, LLC

LEASING SOURCE, LLC

 	 
	 	By:  	      /s/ Michael J. McCann
 	 
	 	 	Name:  	Michael J. McCann 	 
	 	 	Title:  	Vice President 	 

[Signature Page to Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	ACCEPTED AND AGREED to as of the date first 

written above.

UBS SECURITIES LLC

 	 
	 	By:  	/s/ James Boland
 	 
	 	 	Name:  	James Boland 	 
	 	 	Title:  	Executive Director 	 
	 
	 	 	 
	 	By:  	                    /s/ Suzanne Rode
 	 
	 	 	Name:  	Suzanne Rode 	 
	 	 	Title:  	Director 	 

[Signature Page to Registration Rights Agreement]Exhibit 4.1

Exhibit 4.1

EXECUTION COPY

September 23, 2010

Mr. Michael B. Frankel

Western Liberty Bancorp

1370 Avenue of the Americas, 28th Floor

New York, NY 10019

Dear Mr. Frankel,

This Agreement (this “Agreement”) will confirm the basis upon which Western Liberty Bancorp
(formerly known as Global Consumer Acquisition Corp.) (the “Company”) and the holders of warrants
of the Company (the “Warrants”) listed on the signature pages and completing Schedule I
hereto (each, a “Holder”) have agreed to amend and restate that certain Amended and Restated
Warrant Agreement, dated as of July 20, 2009, between the Company and Continental Stock Transfer &
Trust Company, a New York corporation, with offices at 17 Battery Place, New York, New York 10004
(the “Warrant Agent”), as amended by that certain Amendment No. 1, dated as of October 7, 2009,
between the Company and the Warrant Agent (as amended, the “Prior Agreement”).

WHEREAS, the Company has entered into an Agreement and Plan of Merger with WL-S1 Interim Bank,
a Nevada corporation, Service1st Bank of Nevada (“Service1st”), and Curtis W.
Anderson, as representative of the former stockholders of Service1st, as amended on June 21, 2010
(as so amended, the “Service1st Merger Agreement”), which provides for the merger of
WL-S1 Interim Bank with and into Service1st, with Service1st being the
surviving entity and becoming the Company’s wholly-owned subsidiary. The transaction contemplated
by the Service1st Merger Agreement is referred to herein as the “Acquisition”.

WHEREAS, the Holders have agreed to reduce the number of Warrants held by such Holders on
thirty two-for-one basis, such that the number of outstanding Warrants will be reduced from
48,067,758 to approximately 1,502,117 Warrants.

WHEREAS, the Holders set forth on the signature page and Schedule I hereto,
constituting the beneficial holders of at least a majority of the presently outstanding Warrants,
agree to amend and/or restate the terms of the existing Warrants and agree to amend and restate the
Prior Agreement.

Accordingly, the parties, intending to be legally bound, agree as follows:

1. Capitalized terms used but not defined herein shall have the meaning assigned to such terms
in the Prior Agreement.

2. Subject to the terms and conditions of this Agreement, the Prior Agreement shall be amended
and restated so that it shall read in its entirety as set forth in the Second Amended and Restated
Warrant Agreement in the form attached as Exhibit A hereto (the “New Warrant Agreement”).

 

 

 

3. Each Holder hereby agrees, in any action upon which the Holder’s vote, consent or other
approval is sought in connection with the amendment(s) set forth in this Agreement (the
“Amendments”), the Holder shall vote (or cause to be voted) all of its Warrants as set forth on
Schedule I hereto in favor of the Amendments. The execution of this Agreement shall be
deemed approval, consent and a proxy (the “Proxy”) to the Warrant Agent to execute and deliver the
New Warrant Agreement. This Agreement is effective on the date hereof and the New Warrant
Agreement will be effective upon the execution and delivery of the New Warrant Agreement by the
Warrant Agent and the Company. Each Holder acknowledges that it is not an affiliate of the Company
as defined under the federal securities laws.

4. Expiration. The Proxy, and all other obligations of the Holders under this
Agreement, shall terminate as of the close of business on October 12, 2010 (the “Expiration Date”),
unless before the Expiration Date the New Warrant Agreement has been executed and delivered by the
Warrant Agent and the Company. Notwithstanding the foregoing, the Expiration Date shall be extended
indefinitely if the New Warrant Agreement has not been executed and delivered by the Warrant Agent
and the Company solely due to the failure of any of the Holders to satisfy its obligations set
forth in Paragraph 7 below.

5. Public Disclosure. The Company shall make a public disclosure of this Agreement
and all exhibits within 48 hours of execution of this Agreement. If the Company fails to make such
a disclosure, any Holder may do so.

6. Representations and Warranties of the Holders. Each Holder hereby represents and
warrants as to itself to the Company as follows:

(a) Each Holder is the beneficial owner of the Warrants set forth on Schedule
I, free and clear of any liens, adverse claims, charges or other encumbrances of any
nature whatsoever.

(b) Each Holder has the sole right to vote and to direct the voting of its Warrants and
give consent with respect thereto, and none of the Warrants are subject to any voting trust
or other agreement, arrangement or restriction with respect to the voting of the Warrants.

(c) Each Holder hereby acknowledges that it has not in any manner, directly or
indirectly, (i) formed, joined or in any way participated in a “group” (as defined under
the Securities Exchange Act of 1934, as amended) with respect to the Company, (ii) made any
“solicitation” of “proxies” (as such terms are used in the proxy rules of the Securities and
Exchange Commission) or consents to vote any voting securities of the Company held by any
other party for any reason whatsoever, (iii) acted, alone or in concert with others, to seek
to control or influence in any way whatsoever the management, Board of Directors (including,
but not limited to, any attempt to nominate, designate or otherwise request representation
on the Board of Directors) or policies of the Company or (iv) entered into any discussions,
arrangements or understandings with any third party with respect to any of the foregoing.

 

2

 

(d) Each Holder, if not a natural person: (i) is duly organized, validly existing and
in good standing under the laws of its jurisdiction of organization; and (ii) has the
requisite corporate, company, partnership or other power and authority to execute and
deliver this Agreement and the Proxy, to consummate the transactions contemplated hereby and
thereby and to comply with the terms hereof and thereof. The execution and delivery by each
Holder of this Agreement and the Proxy, the consummation by each Holder of the transactions
contemplated hereby and thereby and the compliance by each Holder with the provisions hereof
and thereof have been duly authorized by all necessary corporate, company, partnership or
other action on the part of each Holder, and no other corporate, company, partnership or
other proceedings on the part of each Holder are necessary to authorize this Agreement and
the Proxy, to consummate the transactions contemplated hereby and thereby or to comply with
the provisions hereof or thereof.

(e) This Agreement has been duly executed and delivered by each Holder, constitutes a
valid and binding obligation of each Holder and is enforceable against each Holder in
accordance with its terms.

(f) The execution and delivery of this Agreement, the consummation of the transactions
contemplated hereby and by the New Warrant Agreement and compliance with the provisions
hereof and thereof do not and will not conflict with, or result in any violation or breach
of, or default (with or without notice or lapse of time, or both) under, any provision of
(i) the certificate of incorporation or by-laws, partnership agreement or limited liability
company agreement (or similar organizational documents) of each Holder, if applicable, (ii)
any (A) statute, law, ordinance, rule or regulation or (B) judgment, order or decree, in
each case, applicable to each Holder or its properties or assets, or (iii) any contract,
trust, commitment, agreement, understanding, arrangement or restriction of any kind to which
each Holder is a party or by which each Holder or each Holder’s assets are bound.

(g) As of the date hereof each Holder is, and upon consummation of the transactions
contemplated hereby, will be, an institutional “accredited investor” as defined in Rule
501(a)(1), (2), (3) or (7) of Regulation D as promulgated under the Securities Act of 1933,
as amended.

(h) Each Holder has determined, based on its own independent review and such
professional advice as it has deemed appropriate under the circumstances, that its consent
to the Amendments (i) is fully consistent with its financial needs, objectives and
condition, and (ii) complies and is fully consistent with all investment policies,
guidelines and restrictions applicable to Holder (whether holding the Warrants as principal
or in a fiduciary capacity).

(i) Each Holder has reviewed all publicly available information regarding the Company
as it has deemed relevant to its decision to consent to the Amendments.

 

3

 

7. Covenant of the Holders. Each Holder covenants and agrees to use its best efforts,
within seven (7) days of the execution of this Agreement, (i) to instruct its respective Depository
Trust Company (“DTC”) participant with respect to its Warrants to provide written
instructions substantially in the form attached as Exhibit B hereto to DTC, as the
registered holder of the public Warrants, instructing DTC to execute a written consent
substantially in the form attached as Exhibit C hereto (the “DTC Consent”), whereby DTC
shall consent to the execution and delivery by the Warrant Agent of the New Warrant Agreement, and
(ii) to deliver the executed DTC Consent to the Company. Each Holder also covenants and agrees to
take such other actions as the Company or the Warrant Agent shall reasonably request, including but
not limited to signing such documentation or taking other such actions as any government agency or
agencies shall require, in connection with the Acquisition in order to effect the execution and
operation of the New Warrant Agreement.

8. This Agreement will be governed by and construed in accordance with the Laws of the State
of New York.

9. For the convenience of the parties hereto, this Agreement may be executed in any number of
separate counterparts, each such counterpart being deemed to be an original instrument, and all
such counterparts will together constitute the same agreement. Executed signature pages to this
Agreement may be delivered by facsimile and such facsimiles will be deemed as sufficient as if
actual signature pages had been delivered.

[Signature Page Follows]

 

4

 

IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized
officers of the parties hereto as of the date first herein above written.

	 	 	 	 	 
	 	NISSWA FIXED INCOME MASTER FUND LTD.

 	 
	 	By:  	/s/  Jeff Stolt
 	 
	 	 	Name:  	Jeff Stolt 	 
	 	 	Title:  	CFO-Pine River Capital Mgmt. LP

Its: Investment Manager 	 
	 

[WARRANT LETTER AGREEMENT]

 

 

 

	 	 	 	 	 
	 	NISSWA ACQUISITION MASTER FUND LTD.

 	 
	 	By:  	/s/ Jeff Stolt
 	 
	 	 	Name:  	Jeff Stolt 	 
	 	 	Title:  	CFO-Pine River Capital Mgmt. LP

Its: Investment Manager 	 
	 

[WARRANT LETTER AGREEMENT]

 

 

 

	 	 	 	 	 
	 	PINES EDGE VALUE INVESTORS LTD.

 	 
	 	By:  	/s/ Jeff Stolt
 	 
	 	 	Name:  	Jeff Stolt 	 
	 	 	Title:  	CFO-Pine River Capital Mgmt. LP

Its: Investment Manager 	 
	 

[WARRANT LETTER AGREEMENT]

 

 

 

	 	 	 	 	 
	 	INTEGRATED CORE STRATEGIES (US) LLC

 	 
	 	By:  	Integrated Holding Group LP, its Managing Member
 
 
	 	By:  	Millennium Management LLC, its General Partner 
	 	 	 
	 	By:  	/s/ Terry Feeney 	 
	 	 	Name:  	Terry Feeney	 
	 	 	Title:  	COO	 
	 

[WARRANT LETTER AGREEMENT]

 

 

 

	 	 	 	 	 
	 	HAYGROUND COVE ACQUISITION STRATEGIES FUND LP

 	 
	 	By:  	/s/ Jason N. Ader
 	 
	 	 	Name:  	Jason N. Ader 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[WARRANT LETTER AGREEMENT]

 

 

 

	 	 	 	 	 
	 	HAYGROUND COVE ACQUISITION STRATEGIES FUND LTD.

 	 
	 	By:  	/s/ Jason N. Ader
 	 
	 	 	Name:  	Jason N. Ader 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[WARRANT LETTER AGREEMENT]

 

 

 

	 	 	 	 	 
	 	HAYGROUND COVE TURBO FUND LTD.

 	 
	 	By:  	/s/ Jason N. Ader
 	 
	 	 	Name:  	Jason N. Ader 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[WARRANT LETTER AGREEMENT]

 

 

 

	 	 	 	 	 
	 	HC INSTITUTIONAL PARTNERS LP

 	 
	 	By:  	/s/ Jason N. Ader
 	 
	 	 	Name:  	Jason N. Ader 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[WARRANT LETTER AGREEMENT]

 

 

 

	 	 	 	 	 
	 	HC OVERSEAS PARTNERS LTD.

 	 
	 	By:  	/s/ Jason N. Ader
 	 
	 	 	Name:  	Jason N. Ader 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[WARRANT LETTER AGREEMENT]

 

 

 

	 	 	 	 	 
	 	DOHA PARTNERS I, LP

 	 
	 	By:  	/s/ Jason N. Ader 	 
	 	 	Name:  	Jason N. Ader	 
	 	 	Title:  	 	 
	 

[WARRANT LETTER AGREEMENT]

 

 

 

	 	 	 	 	 
	 

	 	/s/ Jason N. Ader
 

Jason N. Ader
	 	 
	 

[WARRANT LETTER AGREEMENT]

 

 

 

	 	 	 	 	 
	ACKNOWLEDGED AND AGREED TO:	 	 
	 
	 	 	 	 
	WESTERN LIBERTY BANCORP	 	 
	 
	 	 	 	 
	By:

	 	/s/ Michael B. Frankel
 

Name: Michael B. Frankel
	 	 
	 

	 	Title:   Director	 	 
	 

[WARRANT LETTER AGREEMENT]

 

 

 

SCHEDULE I

HOLDER INFORMATION

	 	 	 	 	 	 	 	 	 
	LEGAL NAME OF HOLDER:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	ADDRESS OF HOLDER:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Attention:	 	  	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	TELEPHONE NUMBER:
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	EMAIL:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	FAX NUMBER:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	NOMINEE (Name in which the Warrants are to be registered, if different than name of Holder):
	 	 	 	 	To be held at DTC	 	 
	 
	 	 	 	 	 	 	 	 
	TAX I.D. NUMBER:	 	N/A	 	 	 	 
	(If acquired in the name of a nominee, the taxpayer I.D. number of such nominee should be provided)
	 
	 	 	 	 	 	 	 	 
	NAME OF DTC PARTICIPANT (Broker-dealer at which the account or accounts to be credited with the
Warrants are maintained):
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	DTC PARTICIPANT NUMBER(S) AND NUMBER OF SHARES HELD BY EACH DTC PARTICIPANT:
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	NAME OF ACCOUNT AT DTC PARTICIPANT BEING CREDITED
WITH THE SHARES:
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	ACCOUNT NUMBER AT DTC PARTICIPANT BEING CREDITED WITH THE WARRANTS:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	PERSON TO RECEIVE COPIES OF TRANSACTION DOCUMENTS
	 

	 	NAME:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	TELEPHONE NUMBER:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	EMAIL:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	OPERATIONS CONTACTS	 	 	 	 	 	 
	 

	 	PRIMARY:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	TELEPHONE NUMBER:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	EMAIL:	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

 

 

	 	 	 	 	 	 	 	 	 
	 

	 	SECONDARY:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	TELEPHONE NUMBER:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	EMAIL:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	PAYMENT INSTRUCTIONS:	 	 	 	 	 	 
	 

	 	NAME OF BANK:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	ABA:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	ACCOUNT NAME:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	ACCOUNT NUMBER:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	REFERENCE/ATTENTION:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	MAIL PAYMENT NOTICES (if different than mailing address):
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Attention:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	TELEPHONE NUMBER:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	FAX NUMBER:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	STATE OF PRINCIPAL PLACE OF BUSINESS:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	PHYSICAL DELIVERY INSTRUCTIONS:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Attention:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 

	 	TELEPHONE NUMBER:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	FAX NUMBER:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	TAX WITHHOLDING FORM ATTACHED (indicate type):	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	NUMBER OF WARRANTS HELD BY YOU:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	(if special denominations required, please note)	 	 

 

 

 

EXHIBIT A

SECOND AMENDED AND RESTATED WARRANT AGREEMENT

This Second Amended and Restated Warrant Agreement (this “Warrant Agreement”) is made as of
                    , 2010 between Western Liberty Bancorp (formerly known as Global Consumer Acquisition
Corp.), a Delaware corporation, with offices at 1370 Avenue of the Americas, 28th Floor, New York,
New York 10019 (the “Company”), and Continental Stock Transfer & Trust Company, a New York
corporation, with offices at 17 Battery Place, New York, New York 10004 (the “Warrant Agent”), and
amends and restates in its entirety that certain Amended and Restated Warrant Agreement, dated as
of July 20, 2009, as amended by that certain Amendment No. 1, dated as of October 7, 2009, each
between the Company and the Warrant Agent (as amended, the “Prior Warrant Agreement”).

WHEREAS, the Company currently has outstanding 31,948,850 registered and publicly-traded
warrants (the “Public Warrants”) and 16,118,908 unregistered private warrants (the “Private
Warrants” and, together with the Public Warrants, the “Warrants”) each of such Warrants evidencing
the right of the holder thereof to purchase one share of common stock, par value $.0001 per share,
of the Company (the “Common Stock”) for the Public Warrants and the Private Warrants;

WHEREAS, the Company has entered into an Agreement and Plan of Merger with WL-S1 Interim Bank,
a Nevada corporation, Service1st Bank of Nevada (“Service1st”), and Curtis W.
Anderson, as representative of the former stockholders of Service1st, as amended on June 21, 2010
(as so amended, the “Service1st Merger Agreement”), which provides for the merger of
WL-S1 Interim Bank with and into Service1st, with Service1st being the
surviving entity and becoming the Company’s wholly-owned subsidiary. The transaction contemplated
by the Service1st Merger Agreement is referred to herein as the “Acquisition”;

WHEREAS, the Company desires the Warrant Agent to continue to act on behalf of the Company,
and the Warrant Agent is willing to so continue to act, in connection with the issuance,
registration, transfer, exchange, redemption and exercise of the Warrants;

WHEREAS, in order to assist the Company in gaining the requisite approval of certain
government agencies in connection with the Acquisition, the Company and the registered holders of
at least a majority of the presently outstanding Warrants (the “Consenting Holders”) have agreed to
amend and restate the Prior Warrant Agreement pursuant to that certain Letter Agreement, dated as
of September
 _____, 2010, between the Company and the Consenting Holders; and

WHEREAS, pursuant to Section 9.9 of the Prior Warrant Agreement, the Company and the
Consenting Holders wish to amend and restate the Prior Warrant Agreement in accordance with the
terms and provisions hereof, and have directed the Warrant Agent to
execute this Warrant Agreement.

 

 

 

NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto
agree as follows:

Section 1. Appointment of Warrant Agent. The Company previously appointed the Warrant Agent to act as
agent for the Company for the Warrants. The Company hereby agrees to continue its appointment of
the Warrant Agent to act as agent for the Company for the Warrants, and the Warrant Agent hereby
accepts such continued appointment and agrees to perform the same in accordance with the terms and
conditions set forth in this Warrant Agreement.

Section 2. Warrants.

2.1 Form of Warrant. Each Warrant shall remain issued in registered form only and, due
to the automatic exercise of all Warrants in accordance with Section 3.1 below, and since this
Warrant Agreement shall not become operative in accordance with Section 7.11 below until such date
as the Acquisition is consummated (the “Automatic Exercise Date”), each Warrant shall remain
substantially in the form described in the Prior Warrant Agreement, and no new Warrant Certificates
will be issued upon the operative date of this Warrant Agreement. Any inconsistencies between the
terms on the face of each outstanding Warrant and the terms of this Warrant Agreement on or after
the Automatic Exercise Date shall be resolved in favor of the terms of this Warrant Agreement.

2.2 Effect of Countersignature. Unless and until countersigned by the Warrant Agent
pursuant to this Warrant Agreement, a Warrant shall be invalid and of no effect and may not be
exercised by the holder thereof.

2.3 Registration.

2.3.1 Warrant Register. The Warrant Agent shall maintain books (“Warrant
Register”) for the registration of the original issuance and transfers of the Warrants. The
Warrant Agent shall issue and register the Warrants in the names of the respective holders
thereof in such denominations and otherwise in accordance with instructions delivered to the
Warrant Agent by the Company.

2.3.2 Registered Holder. Prior to due presentment for registration of transfer
of any Warrant, the Company and the Warrant Agent may deem and treat the person in whose
name such Warrant shall be registered upon the Warrant Register (“registered holder”) as the
absolute owner of such Warrant and of each Warrant represented thereby (notwithstanding any
notation of ownership or other writing on the warrant certificate made by anyone other than
the Company or the Warrant Agent), for the purpose of any exercise thereof, and for all
other purposes, and neither the Company nor the Warrant Agent shall be affected by any
notice to the contrary.

Section 3. Terms and Exercise of Warrants.

3.1 Automatic Exercise. On the Automatic Exercise Date, and without payment by any
Warrant holder of cash or any other consideration to the Company whatsoever, each Warrant will
automatically and immediately convert into one thirty-second (1/32) of one share of Common Stock
(meaning that each Warrant holder shall receive one (1) share of Common Stock for every thirty two
(32) Warrants in the conversion). In addition, in consideration of the amendments to Prior
Agreement contained in this Warrant Agreement, the Company shall pay each Warrant holder,
regardless of whether such holder is a Consenting Holder, $0.06 in cash for
each Warrant (the “Consent Fee”) (meaning that a Warrant holder shall receive a $1.92 Consent
Fee for every thirty-two (32) Warrants held on the Automatic Exercise Date).

 

2

 

3.2 Duration of Warrants. For the avoidance of any doubt, and subject to Section
7.11, all of the Warrants shall automatically be exercised into shares of Common Stock and
subsequently canceled on the Automatic Exercise Date.

3.3 Exercise of Warrants.

3.3.1 Payment. Subject to Section 3.3.2 below, each Warrant holder’s Warrants
shall automatically be converted into shares of Common Stock, and each Warrant holder shall
receive the Consent Fee, on the Automatic Exercise Date, and such Warrant holder shall not
be required to take any further action, including any payment of cash or other consideration
to the Company or the Warrant Agent whatsoever.

3.3.2 Issuance of Certificates. As soon as practicable after the automatic
exercise Warrants in accordance with Section 3.1 above, the Company shall issue to the
registered holder of such Warrant a certificate or certificates representing the number of
full shares of Common Stock to which he, she or it is entitled, registered in such name or
names as may be directed by him, her or it; provided, however, that each certificate
representing such shares of Common Stock issued shall bear a legend substantially in the
form of Exhibit A hereto until such time as a prospectus relating to such shares of
Common Stock is current and the Common Stock has been registered or qualified or deemed to
be exempt under the securities laws of the state of residence of the holder of such shares
of Common Stock on the Automatic Exercise Date in accordance with Section 5.4 below.
Warrants may not be exercised by, or securities issued to, any registered holder in any
state in which such exercise or issuance would be unlawful. Other than as set forth Section
5.4 below, in no event shall the registered holder of a share of Common Stock into which a
Warrant was exercised be entitled to receive any monetary damages if such share of Common
Stock has not been registered by the Company pursuant to an effective registration
statement.

3.3.3 Valid Issuance. All shares of Common Stock issued upon the proper
exercise of a Warrant in conformity with this Warrant Agreement shall be validly issued,
fully paid and non-assessable.

3.3.4 Date of Issuance. Each person or entity in whose name any such
certificate for shares of Common Stock is issued shall, for all purposes, be deemed to have
become the holder of record of such shares on the date on which the Warrant was
automatically exercised, irrespective of the date of delivery of such certificate, except
that, if the date of such exercise is a date when the stock transfer books of the Company
are closed, such person shall be deemed to have become the holder of such shares at the
close of business on the next succeeding date on which the stock transfer books are open.

 

3

 

3.3.5 No Fractional Shares. Notwithstanding any provision contained in this
Warrant Agreement to the contrary, the Company shall not issue fractional shares of Common
Stock upon automatic exercise of Warrants. Any Warrants that would entitle a
holder thereof to a fractional share of Common Stock after taking into account the
exercise of the remainder of such holder’s Warrants into full shares of Common Stock on the
Automatic Exercise Date shall be cancelled on the Automatic Exercise Date; provided,
however, that the Company shall pay the Consent Fee in connection with all such cancelled
Warrants.

3.4 Adjustments. If, prior to the Automatic Exercise Date, and subject to the
provisions of Section 3.3.5 above, the number of outstanding shares of Common Stock of the Company
is increased by a stock dividend payable in shares of Common Stock, or by a split-up of shares of
Common Stock, or other similar event, then the number of shares of Common Stock issuable upon
automatic exercise of each Warrant on the Automatic Exercise Date shall be increased in proportion
to such increase in outstanding shares of Common Stock. If, prior to the Automatic Exercise Date,
and subject to the provisions of Section 3.3.5 above, the number of outstanding shares of Common
Stock is decreased by a consolidation, combination, reverse stock split or reclassification of
shares of Common Stock or other similar event, then the number of shares of Common Stock issuable
upon automatic exercise of each Warrant on the Automatic Exercise Date shall be decreased in
proportion to such decrease in outstanding shares of Common Stock.

3.5 Form of Warrant. The Company may, at any time, in its sole discretion, make any
change in the form of Warrant that the Company may deem appropriate and that does not affect the
substance thereof, and any Warrant thereafter issued or countersigned, whether in exchange or
substitution for an outstanding Warrant or otherwise, may be in the form as so changed.

Section 4. Transfer and Exchange of Warrants.

4.1 Registration of Transfer. The Warrant Agent shall register the transfer, from
time to time, of any outstanding Warrant into the Warrant Register, upon surrender of such Warrant
for transfer, properly endorsed with signatures properly guaranteed and accompanied by appropriate
instructions for transfer. Upon any such transfer, a new Warrant representing an equal aggregate
number of Warrants shall be issued and the old Warrant shall be cancelled by the Warrant Agent.
The Warrants so cancelled shall be delivered by the Warrant Agent to the Company from time to time
upon the Company’s request.

4.2 Procedure for Surrender of Warrants. Warrants may be surrendered to the Warrant
Agent, together with a written request for exchange or transfer, and, thereupon, the Warrant Agent
shall issue in exchange therefor one or more new Warrants as requested by the registered holder of
the Warrants so surrendered, representing an equal aggregate number of Warrants; provided, however,
that, in the event a Warrant surrendered for transfer bears a restrictive legend, the Warrant Agent
shall not cancel such Warrant and shall issue new Warrants in exchange therefor until the Warrant
Agent has received an opinion of counsel for the Company stating that such transfer may be made and
indicating whether the new Warrants must also bear a restrictive legend.

 

4

 

4.3 Fractional Warrants. The Warrant Agent shall not be required to effect any
registration of transfer or exchange which will result in the issuance of a warrant certificate for
a fraction of a warrant.

4.4 Service Charges. No service charge shall be made for any exchange or registration
of transfer of Warrants.

4.5 Warrant Execution and Countersignature. The Warrant Agent is hereby authorized to
countersign and to deliver, in accordance with the terms of this Warrant Agreement, the Warrants
required to be issued pursuant to the provisions of this Section 4.5, and the Company, whenever
required by the Warrant Agent, will supply the Warrant Agent with Warrants duly executed on behalf
of the Company for such purpose.

Section 5. Other Provisions Relating to Rights of Holders of Warrants.

5.1 No Rights as Stockholder. A Warrant does not entitle the registered holder
thereof to any of the rights of a stockholder of the Company, including, without limitation, the
right to receive dividends, or other distributions, exercise any preemptive rights to vote or to
consent or to receive notice as stockholders in respect of the meetings of stockholders or the
election of directors of the Company or any other matter.

5.2 Lost, Stolen, Mutilated, or Destroyed Warrants. If any Warrant is lost, stolen,
mutilated or destroyed, the Company and the Warrant Agent may, on such terms as to indemnity or
otherwise as they may in their discretion impose (which terms shall, in the case of a mutilated
Warrant, include the surrender thereof), issue a new Warrant of like denomination, tenor and date
as the Warrant so lost, stolen, mutilated or destroyed. Any such new Warrant shall constitute a
substitute contractual obligation of the Company, whether or not the allegedly lost, stolen,
mutilated or destroyed Warrant shall be at any time enforceable by anyone.

5.3 Reservation of Common Stock. The Company shall at all times reserve and keep
available a number of its authorized but unissued shares of Common Stock that will be sufficient to
permit the exercise in full of all outstanding Warrants issued pursuant to this Warrant Agreement.

5.4 Registration of Common Stock. The Company agrees that, as promptly as practicable
but in no event later than thirty (30) days after the Automatic Exercise Date (the “Registration
Statement Filing Deadline”), it shall file with the SEC a registration statement (the “Registration
Statement”), for the registration under the Securities Act of 1933, as amended (the “Act”), of, and
it shall take such action as is necessary to qualify for sale, in those states in which the
Warrants were initially offered by the Company, the Common Stock issuable upon automatic exercise
of the Warrants. Furthermore, if, prior to the filing of the Registration Statement with the SEC,
the Company proposes to register any of its securities (other than the Common Stock issuable upon
automatic exercise of the Warrants) under the Act, whether or not for sale for its own account
(other than pursuant to Form S-4 or Form S-8 or any successor or similar forms), the Company shall
use such registration statement for the registration under the Act of all of the shares of Common
Stock issuable upon automatic exercise of the Warrants, and such

 

5

 

registration statement shall be
deemed the Registration Statement for purposes of this Section 5.4. Upon filing of the Registration Statement, the Company shall take all additional
actions necessary or appropriate to cause the Registration Statement to become and to remain
effective, and to cause a current prospectus to be and remain available for delivery in connection
with such Common Stock. The Company will take all actions necessary or appropriate to cause the
Common Stock issuable upon automatic exercise of the Warrants to become listed on a
nationally-recognized exchange on the 180th day following the Automatic Exercise Date.
In addition, the Company agrees to use commercially reasonable efforts to register such securities
under the blue sky laws of the states of residence of the exercising Warrant holders to the extent
an exemption is not available. The Company agrees to make a payment to each holder of such shares
of Common Stock in an amount equal to $0.12 per share of Common Stock held by such holder if, and
only if, it fails to timely file with the SEC the Registration Statement by the Registration
Statement Filing Deadline. Such payment, if any, shall be made by no later than thirty (30) days
after the Registration Statement Filing Deadline. The Company further agrees to make an additional
payment to each holder of such shares of Common Stock in an amount equal to $0.18 per share of
Common Stock held by such holder on the 180th day following the Automatic Exercise Date,
if, and only if, on such date the Registration Statement is not effective. Such payment shall only
be made to holders of Common Stock issued upon automatic exercise of the Warrants who held such
shares of Common Stock as of the Automatic Exercise Date, and only with respect to the number of
shares of Common Stock issued upon automatic exercise of the Warrants held by such holders as of
the date such additional payment, if any, becomes due. Such payments shall be in addition to all
other rights and remedies of the holders of the Warrants or the Common Stock issuable upon
automatic exercise of the Warrants in connection with the Company’s covenants under this Agreement,
including the right to seek specific performance of the covenants set forth in this Section 5.4 and
to seek all other remedies at law or in contract in connection with a breach of such covenants.

Section 6. Concerning the Warrant Agent and Other Matters.

6.1 Payment of Taxes. The Company will, from time to time, promptly pay all taxes and
charges that may be imposed upon the Company or the Warrant Agent in respect of the issuance or
delivery of shares of Common Stock upon the exercise of Warrants, but the Company shall not be
obligated to pay any transfer taxes in respect of the Warrants or such shares of Common Stock.

6.2 Resignation, Consolidation, or Merger of Warrant Agent.

6.2.1 Appointment of Successor Warrant Agent. The Warrant Agent, or any
successor to it hereafter appointed, may resign its duties and be discharged from all
further duties and liabilities hereunder after giving sixty (60) days’ notice in writing to
the Company. If the office of the Warrant Agent becomes vacant by resignation or incapacity
to act or otherwise, the Company shall appoint, in writing, a successor Warrant Agent in
place of the Warrant Agent. If the Company shall fail to make such appointment within a
period of 30 days after it has been notified in writing of such resignation or incapacity by
the Warrant Agent or by the holder of the Warrant (who shall, with such notice, submit his,
her or its Warrant for inspection by the Company), then the holder of any Warrant may apply
to the Supreme Court of the State of New York for

 

6

 

the County of New York for the appointment
of a successor Warrant Agent. Any successor Warrant Agent, whether appointed by the Company or by such court, shall be a
corporation organized and existing under the laws of the State of New York, in good standing
and have its principal office in the Borough of Manhattan, City and State of New York, and
be authorized under such laws to exercise corporate trust powers and subject to supervision
or examination by federal or state authorities. After appointment, any successor Warrant
Agent shall be vested with all the authority, powers, rights, immunities, duties and
obligations of its predecessor Warrant Agent with like effect as if originally named as
Warrant Agent hereunder, without any further act or deed; but, if for any reason it becomes
necessary or appropriate, the predecessor Warrant Agent shall execute and deliver, at the
expense of the Company, an instrument transferring to such successor Warrant Agent all the
authority, powers, and rights of such predecessor Warrant Agent hereunder; and, upon request
of any successor Warrant Agent, the Company shall make, execute, acknowledge, and deliver
any and all instruments in writing for more fully and effectually vesting in and confirming
to such successor Warrant Agent all such authority, powers, rights, immunities, duties and
obligations.

6.2.2 Notice of Successor Warrant Agent. In the event a successor Warrant
Agent shall be appointed, the Company shall give notice thereof to the predecessor Warrant
Agent and the transfer agent for the Common Stock not later than the effective date of any
such appointment.

6.2.3 Merger or Consolidation of Warrant Agent. Any corporation into which the
Warrant Agent may be merged or with which it may be consolidated or any corporation
resulting from any merger or consolidation to which the Warrant Agent shall be a party shall
be the successor Warrant Agent under this Warrant Agreement without any further act on the
part of the Company or the Warrant Agent.

6.3 Fees and Expenses of Warrant Agent.

6.3.1 Remuneration. The Company agrees to pay the Warrant Agent reasonable
remuneration for its services as Warrant Agent hereunder as set forth on Exhibit B
hereto and will reimburse the Warrant Agent upon demand for all expenditures that the
Warrant Agent may reasonably incur in the execution of its duties hereunder.

6.3.2 Further Assurances. The Company agrees to perform, execute, acknowledge
and deliver, or cause to be performed, executed, acknowledged and delivered, all such
further and other acts, instruments and assurances as may reasonably be required by the
Warrant Agent for the carrying out or performing of the provisions of this Warrant
Agreement.

 

7

 

6.4 Liability of Warrant Agent.

6.4.1 Reliance on Company Statement. Whenever, in the performance of its
duties under this Warrant Agreement, the Warrant Agent shall deem it necessary or desirable
that any fact or matter be proved or established by the Company prior to taking or suffering
any action hereunder, such fact or matter (unless other evidence in respect thereof be
herein specifically prescribed) may be deemed to be conclusively proved and
established by a statement signed by the Chief Executive Officer, Chairman of the Board
or President of the Company and delivered to the Warrant Agent. The Warrant Agent may rely
upon such statement for any action taken or suffered in good faith by it pursuant to the
provisions of this Warrant Agreement.

6.4.2 Indemnity. The Warrant Agent shall be liable hereunder only for its own
negligence, willful misconduct or bad faith. The Company agrees to indemnify the Warrant
Agent and save it harmless against any and all liabilities, including judgments, costs and
reasonable counsel fees, for anything done or omitted by the Warrant Agent in the execution
of this Warrant Agreement, except as a result of the Warrant Agent’s negligence, willful
misconduct or bad faith.

6.4.3 Exclusions. The Warrant Agent shall have no responsibility with respect
to the validity of this Warrant Agreement or with respect to the validity or execution of
any Warrant (except its countersignature thereof); nor shall it be responsible for any
breach by the Company of any covenant or condition contained in this Warrant Agreement or in
any Warrant; nor shall it be responsible to make any adjustments required under the
provisions of Section 4 hereof or responsible for the manner, method or amount of any such
adjustment or the ascertaining of the existence of facts that would require any such
adjustment; nor shall it, by any act hereunder, be deemed to make any representation or
warranty as to the authorization or reservation of any shares of Common Stock to be issued
pursuant to this Warrant Agreement or any Warrant or as to whether any shares of Common
Stock will when issued be valid and fully paid and non-assessable.

6.5 Acceptance of Agency. The Warrant Agent hereby accepts the agency established by
this Warrant Agreement and agrees to perform the same upon the terms and conditions herein set
forth and, among other things, shall account promptly to the Company with respect to Warrants
exercised and concurrently account for, and pay to the Company, all moneys received by the Warrant
Agent for the purchase of shares of the Company’s Common Stock through the exercise of Warrants.

Section 7. Miscellaneous Provisions.

7.1 Successors. All the covenants and provisions of this Warrant Agreement by or for
the benefit of the Company or the Warrant Agent shall bind and inure to the benefit of their
respective successors and assigns.

 

8

 

7.2 Notices. Any notice or other communication required or which may be given
hereunder shall be in writing and shall be sent by certified or registered mail, by private
national courier service (return receipt requested, postage prepaid), by personal delivery or by
facsimile transmission. Such notice or communication shall be deemed given (a) if mailed, two days
after the date of mailing, (b) if sent by national courier service, one business day after being
sent, (c) if delivered personally, when so delivered, or (d) if sent by facsimile transmission, on
the second business day after such facsimile is transmitted, in each case as follows:

If to the Warrant Agent, to:

Continental Stock Transfer & Trust Company

17 Battery Place, 8th Floor

New York, New York 10004

Attn: Compliance Department

Fax: (212) 616-7620

If to the Company, to:

Western Liberty Bancorp

1370 Avenue of the Americas, 28th Floor

New York, New York 10019

Attn: George A. Rosenbaum, Jr., Chief Financial Officer

Fax: (212) 445-7800

With a copy to:

Proskauer Rose LLP

1585 Broadway

New York, New York 10036-8299

Attn: Jeffrey A. Horwitz, Esq.

Fax: (212) 969-2900

7.3 Applicable Law. The validity, interpretation, and performance of this Warrant
Agreement and of the Warrants shall be governed in all respects by the laws of the State of New
York, without giving effect to conflict of laws. The Company hereby agrees that any action,
proceeding or claim against it arising out of or relating in any way to this Warrant Agreement
shall be brought and enforced in the courts of the State of New York or the United States District
Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which
jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive
jurisdiction and that such courts represent an inconvenient forum. Any such process or summons to
be served upon the Company may be served by transmitting a copy thereof by registered or certified
mail, return receipt requested, postage prepaid, addressed to it at the address set forth in
Section 9.2 hereof. Such mailing shall be deemed personal service and shall be legal and binding
upon the Company in any action, proceeding or claim.

7.4 Waiver of Trial by Jury. Each party hereto hereby irrevocably and unconditionally
waives the right to a trial by jury in any action, suit, counterclaim or other proceeding (whether
based on contract, tort or otherwise) arising out of, connected with or relating to this Warrant
Agreement, the transactions contemplated hereby, or the actions of the Investor in the negotiation,
administration, performance or enforcement hereof.

7.5 Persons Having Rights under this Warrant Agreement. Nothing in this Warrant
Agreement expressed and nothing that may be implied from any of the provisions hereof is intended,
or shall be construed, to confer upon, or give to, any person or corporation, other than the
parties hereto and the registered holders of the Warrants, any right, remedy or claim under or by
reason of this Warrant Agreement or of any covenant, condition, stipulation, promise or agreement
hereof. All covenants, conditions, stipulations, promises and agreements contained in
this Warrant Agreement shall be for the sole and exclusive benefit of the parties hereto and
their successors and assigns and of the registered holders of the Warrants.

 

9

 

7.6 Examination of the Warrant Agreement. A copy of this Warrant Agreement shall be
available at all reasonable times at the office of the Warrant Agent in the Borough of Manhattan,
City and State of New York, for inspection by the registered holder of any Warrant. The Warrant
Agent may require any such holder to submit his, her or its Warrant for inspection.

7.7 Counterparts; Facsimile Signatures. This Warrant Agreement may be executed in any
number of counterparts, and each of such counterparts shall, for all purposes, be deemed to be an
original, and all such counterparts shall together constitute one and the same instrument.
Facsimile signatures shall constitute original signatures for all purposes of this Warrant
Agreement.

7.8 Effect of Headings. The section headings herein are for convenience only and are
not part of this Warrant Agreement and shall not affect the interpretation thereof.

7.9 Amendments. This Warrant Agreement may be amended by the parties hereto without
the consent of any registered holder for the purpose of curing any ambiguity, or of curing,
correcting or supplementing any defective provision contained herein or adding or changing any
other provisions with respect to matters or questions arising under this Warrant Agreement as the
parties may deem necessary or desirable and that the parties deem shall not adversely affect the
interest of the registered holders. All other modifications or amendments, shall require the
written consent of each of the registered holders of a majority of the then outstanding Warrants.

7.10 Severability. This Warrant Agreement shall be deemed severable, and the
invalidity or unenforceability of any term or provision hereof shall not affect the validity or
enforceability of this Warrant Agreement or of any other term or provision hereof. Furthermore, in
lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there
shall be added as a part of this Warrant Agreement a provision as similar in terms to such invalid
or unenforceable provision as may be possible and be valid and enforceable.

7.11 Effective Date; Operative Date. This Warrant Agreement shall be deemed effective
upon the execution hereof; provided, however, that the amendments to the Prior Warrant Agreement
contained in this Warrant Agreement will not be operative until (i) receipt by the Warrant Agent
and the Company of (x) the consent of the applicable registered holder(s) of each Consenting
Holder’s Warrants to the amendments to the Prior Warrant Agreement as set forth in this Warrant
Agreement and (y) certification to the Warrant Agent and the Company from such registered holder(s)
as to the positions held by each of the Consenting Holders, (ii) receipt by the Company of final
regulatory approval of the Acquisition from the Federal Deposit Insurance Corporation, the Nevada
Division of Financial Institutions and the Federal Reserve Board, which shall not occur later than
October 12, 2010, and (iii) the consummation of the Acquisition; provided further, however, that
the amendments to the Prior Warrant Agreement contained in this Warrant Agreement will not become
operative unless all of the conditions set forth in the preceding proviso are satisfied on or
before November 12, 2010, which is the date on which the Service1st Merger Agreement may
expire or be terminated by either party thereto (the
“Expiration Date”), unless each of Service1st and the Company agree to extend the
duration of the Service1st Merger Agreement to another date, in which case the
Expiration Date shall be extended to such date. For the avoidance of any doubt, none of the terms
of this Warrant Agreement shall supersede, amend or replace in any manner whatsoever any term of
the Prior Warrant Agreement until such time as the conditions set forth in subsections (i), (ii)
and (iii) of this Section 7.11 have been satisfied, which must occur before the Expiration Date,
and this Agreement shall not become operative at any time or for any reason whatsoever if the
condition set forth in subsection (ii) does not occur on or prior to October 12, 2010.

[Remainder of page intentionally left blank; signature page immediately follows.]

 

10

 

IN WITNESS WHEREOF, this Warrant Agreement has been duly executed by the parties hereto as of
the day and year first above written.

	 	 	 	 	 
	 	WESTERN LIBERTY BANCORP

 	 
	 	By:  	 	 
	 	 	Name:  	Daniel B. Silvers 	 
	 	 	Title:  	President 	 
	 
	 	CONTINENTAL STOCK TRANSFER & TRUST COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	Steven Nelson 	 

 

 

 

EXHIBIT A

LEGEND

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED. THE SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT OR AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

 

 

 EXHIBIT B

CONSENT OF HOLDER

TO ACTION WITHOUT A MEETING

(Participant Letterhead)

September [_____], 2010

The Depository Trust Company

55 Water Street

New York, NY 10041

Attn: Proxy Department

	RE:	 	Western Liberty Bancorp Warrants (CUSIP Number 961443 116) 
DTC Participant Number [_____]

Dear Partner:

Please have your nominee, Cede & Co., sign the attached Consent of Holder (the “Consent”) in order
to enable our customer to exercise the right to act by written consent prior to October 12, 2010
with respect to [_____] of the above-mentioned warrants credited to our DTC Participant account on
the date hereof.

In addition to acknowledging that this request is subject to the indemnification provided for in
DTC Rule 6, the undersigned certifies to DTC and Cede & Co., that the information and facts set
forth in the attached Consent are true and correct, including the number of warrants credited to
our DTC Participant account that are beneficially owned by our customer.

Please make the Consent available for pick-up by (insert name of firm or person responsible for
picking up documents from DTC). Or Federal Express to [Address & contact at Participant].

Our Federal Express account number is                                         

Very truly yours,

[Insert name of Participant]

BY: [manual signature of authorized person]

[Type signer’s name]

[Type signer’s title]

Medallion Stamp

 

 

 

EXHIBIT C

Cede & Co.

C/o The Depository Trust Company

55 Water Street

New York, NY 10041

September [_____], 2009

Western Liberty Bancorp

1370 Avenue of the Americas

New York, NY 10019

George A. Rosenbaum, Jr., Chief Financial Officer

Attention: Mr. George A. Rosenbaum, Jr.

Cede & Co., the nominee of The Depository Trust Company (“DTC”), is a holder of record of warrants
(CUSIP number 961443 116) of Western Liberty Bancorp (the “Company”). DTC is informed by its
Participant [                    ] (the “Participant”),
that as of September [_____], 2010, [                    ] of such
warrants (the “Warrants”) were credited to the Participant’s DTC [_____] account and beneficially
owned by [                    ] (the “Beneficial Holder”), a customer of Participant.

At the request of Participant, on behalf of the Beneficial Holder, Cede & Co., as a holder of
record of the Warrants, hereby consents without a meeting, without prior notice and without a vote,
at the direction of the Beneficial Holder, to the amendments to the Amended and Restated Warrant
Agreement, dated as of July 20, 2009, as amended by the Amendment No. 1 to Amended and Restated
Warrant Agreement, dated as of October 7, 2009 (together, the “Warrant Agreement”), each between
the Company and Continental Stock Transfer & Trust Company, as warrant agent (the “Warrant Agent”),
as set forth in the Second Amended and Restated Warrant Agreement between the Company and the Warrant Agent.

This consent shall expire automatically if the foregoing amendment is not executed and delivered by
the Company and the Warrant Agent by the close of business on October 12, 2010.

Pursuant to the Warrant Agreement, the above-proposed action may be adopted by the consent of the
holder(s) of a majority of the outstanding warrants of the Company which are outstanding at the
time such action is taken.

While Cede & Co, is furnishing this consent as the warrant holder of record of the Warrants, it
does so at the request of Participant and only as a nominal party for the true party in interest,
the Beneficial Holder. Cede & Co., has no interest in this matter other than to take those steps
which are necessary to ensure that the Beneficial Holder is not denied its rights as the beneficial
owner of the Warrants, and Cede & Co., assumes no further responsibility in this matter.

			
	 	 	Very truly yours,

Cede & Co

 
	Dated:                     
	 	BY:           (Partner)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00178-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00178-of-00352.parquet"}]]