Document:

exv4w12

 

EXHIBIT 4.12

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT is made and entered into as of April 4, 2005, by and
between Petrohawk Energy Corporation, a Delaware corporation (the “Company”), on the one hand, and
each of the parties identified on Exhibit A (collectively, the “Purchasers”), on the other hand.

W I T N E S S E T H:

     WHEREAS, PHAWK, LLC, a Delaware limited liability company (“PHAWK”) and each of the
Purchasers have entered into Stock Purchase Agreements as identified on Exhibit A (the “Stock
Purchase Agreements”), in connection with which PHAWK sold 1,830,000 shares (the “Common Shares”)
of the Company’s common stock, par value $0.001 (the “Common Stock”); and

     WHEREAS, the Company has agreed to provide the registration rights provided for in this
Agreement (as defined below) for the holders of Registrable Shares (as defined below); and

     NOW, THEREFORE, in consideration of the premises and the mutual covenants of the parties
hereto, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

1.     Definitions. As used herein, the following terms shall have the following meanings:

     "Additional Shares” means shares or other securities issued in respect of the Common Shares by
reason of or in connection with any stock dividend, stock distribution, stock split or similar
issuance.

     "Agreement” means this Registration Rights Agreement made and entered into as of April 1,
2005.

     "Affiliate” means, as to any specified Person, (i) any Person that directly, or indirectly
through one or more intermediaries, controls or is controlled by, or is under common control with,
the specified Person, (ii) any executive officer, director, trustee or general partner of the
specified Person and (iii) any legal entity for which the specified Person acts as an executive
officer, director, trustee or general partner. For purposes of this definition, “control”
(including the correlative meanings of the terms “controlled by” and “under common control with”),
as used with respect to any Person, shall mean the possession, directly, or indirectly through one
or more intermediaries, of the power to direct or cause the direction of the management and
policies of such Person, whether by contract, through the ownership of voting securities,
partnership interests or other equity interests or otherwise.

     "Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on
which banking institutions in Houston, Texas are authorized or obligated by applicable law,
regulation or executive order to close.

     "Closing Date” means April 5, 2005.

     "Commission” means the Securities and Exchange Commission.

     "Common Shares” is defined in the first recital clause of this Agreement.

     "Common Stock” is defined in the first recital clause of this Agreement.

     "Company” is defined in the introductory paragraph of this Agreement, and any successor
thereto.

     "Controlling Person” is defined in Section 6(a) hereof.

     "End of Suspension Notice” is defined in Section 5(b) hereof.

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     "Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated by the Commission pursuant thereto.

     "Holder” means each record owner of any Registrable Shares from time to time, including, but
not limited to, each of the Purchasers for such time as they are the record owner of any of the
Registrable Shares.

     "Indemnified Party” is defined in Section 6(c) hereof.

     "Indemnifying Party” is defined in Section 6(c) hereof.

     "Liabilities” is defined in Section 6(a) hereof.

     "Mandatory Registration Statement” means the Mandatory Shelf Registration Statement or any
Subsequent Shelf Registration Statement.

     "Mandatory Shelf Registration Statement” is defined in Section 2(a) hereof.

     "NASD” means the National Association of Securities Dealers, Inc.

     "Person” means an individual, limited liability company, partnership, corporation, trust,
unincorporated organization, government or agency or political subdivision thereof, or any other
legal entity.

     "Piggyback Registration Statement” is defined in Section 2(b) hereof.

     "Prior Holder” means PHAWK and any other investor a party to or beneficiary of the
Registration Rights Agreement dated May 26, 2004 by and between the Company and PHAWK.

     "Prospectus” means the prospectus included in any Registration Statement, including any
preliminary prospectus, and all other amendments and supplements to any such prospectus, including
post-effective amendments, and all material incorporated by reference or deemed to be incorporated
by reference, if any, in such prospectus.

     "Purchaser Indemnitee” is defined in Section 6(a) hereof.

     "Purchasers” is defined in the first recital clause of this Agreement.

     "Registrable Shares” means each of the Common Shares and any Additional Shares in respect
thereof, upon original issuance thereof, and at all times subsequent thereto, including upon the
transfer thereof by the original holder or any subsequent holder, until, in the case of any such
Shares or Additional Shares, as applicable, the earliest to occur of:

     (i) the date on which they have been sold pursuant to a Registration Statement or
sold pursuant to Rule 144;

     (ii) the date on which they are saleable, in the opinion of counsel to the Company,
without registration under the Securities Act pursuant to Rule 144(k);

     (iii) the date on which they are saleable, without restriction, pursuant to an
available exemption from registration under the Securities Act; or

     (iv) the date on which they are sold to the Company or its subsidiaries.

     "Registration Expenses” means any and all expenses incident to the performance of or
compliance with this Agreement, including, without limitation: (i) all Commission, securities
exchange, NASD registration,

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listing, inclusion and filing fees, (ii) all fees and expenses incurred in connection with
compliance with international, federal or state securities or blue sky laws (including, without
limitation, any registration, listing and filing fees and reasonable fees and disbursements of
counsel in connection with blue sky qualification of any of the Registrable Shares and the
preparation of a blue sky memorandum and compliance with the rules of the NASD), (iii) all expenses
of any Persons in preparing or assisting in preparing, word processing, duplicating, printing,
delivering and distributing any Registration Statement, any Prospectus, any amendments or
supplements thereto, any underwriting agreements, securities sales agreements, certificates and any
other documents relating to the performance under and compliance with this Agreement, (iv) all fees
and expenses incurred in connection with the listing or inclusion of any of the Registrable Shares
on the NASDAQ Stock Market pursuant to Section 4(n) of this Agreement, (v) the fees and
disbursements of counsel for the Company and of the independent public accountants of the Company
(including, without limitation, the expenses of any special audit and “cold comfort” letters
required by or incident to such performance), and (vi) any fees and disbursements customarily paid
in issues and sales of securities (including the fees and expenses of any experts retained by the
Company in connection with any Registration Statement), provided, however, that Registration
Expenses shall exclude brokers’ or underwriters’ discounts and commissions and transfer taxes, if
any, relating to the sale or disposition of Registrable Shares by a Holder and the fees and
disbursements of any counsel to the Holders.

     "Registration Statement” means any Mandatory Registration Statement or Piggyback Registration
Statement.

     "Rule 144”, “Rule 158”, “Rule 415”, or “Rule 424”, respectively, means such specified rule
promulgated by the Commission pursuant to the Securities Act, as such rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission as a replacement
thereto having substantially the same effect as such rule.

     "Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated by the Commission thereunder.

     "Shares” means the Common Shares.

     "Subsequent Shelf Registration Statement” is defined in Section 2(c) hereof.

     "Suspension Event” is defined in Section 5(b) hereof.

     "Suspension Notice” is defined in Section 5(b) hereof.

     "Underwritten Offering” means a sale of securities of the Company to an underwriter or
underwriters for reoffering to the public.

2.     Registration Rights.

     (a) Mandatory Shelf Registration. As set forth in Section 4, the Company agrees to file
with the Commission as soon as reasonably practicable, but in no event later than 15 days following
the Closing Date, a shelf registration statement on Form S-3 or such other form under the
Securities Act then available to the Company providing for the resale pursuant to Rule 415 from
time to time by the Holders of any and all Registrable Shares consisting of (i) Common Shares and
all Additional Shares in respect thereof (in each case including for the avoidance of doubt any
Additional Shares that are issued prior to the effectiveness of such shelf registration statement)
(including the Prospectus, amendments and supplements to such registration statement or Prospectus,
including pre- and post-effective amendments, all exhibits thereto and all material incorporated by
reference or deemed to be incorporated by reference, if any, in such registration statement, the
"Mandatory Shelf Registration Statement”).

     (i) Effectiveness and Scope. The Company shall use its commercially reasonable
efforts to cause any Mandatory Registration Statement to be declared effective by the
Commission as soon as reasonably practicable following such filing, and to remain effective
until the earlier of (A) the

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second anniversary of the effective date of the initial Mandatory Shelf Registration
Statement (subject to extension pursuant to Section 5(c)) (provided that in such case each
Holder shall have received a certificate with all restrictive legends removed as a result
of the applicable Registrable Shares being freely transferable under Rule 144(k)), or (B)
the date on which all Shares and any Additional Shares in respect thereof cease to be
Registrable Shares. The Company may include any shares of Common Stock owned by a Prior
Holder in a Mandatory Shelf Registration Statement. Any Mandatory Shelf Registration
Statement shall provide for the resale from time to time, and pursuant to any method or
combination of methods legally available (including, without limitation, an Underwritten
Offering, a direct sale to purchasers, a sale through brokers or agents, or a sale over the
internet) by the Holders of any and all Registrable Shares.

     (ii) Underwriting. If any Holder proposes to conduct an Underwritten Offering
under a Mandatory Shelf Registration Statement, such Holder shall advise the Company, all
other Holders, and any Prior Holders whose securities are included in the Mandatory Shelf
Registration Statement, of the managing underwriters for such proposed Underwritten
Offering, such managing underwriters to be subject to the approval of the Company, not to
be unreasonably withheld. In such event, the Company shall enter into an underwriting
agreement in customary form with the managing underwriters, which shall include, among
other provisions, indemnities to the effect and to the extent provided in Section 6, and
shall take all such other reasonable actions as are requested by the managing underwriter
in order to expedite or facilitate the registration and disposition of the Registrable
Shares included in such Underwritten Offering. All Holders proposing to distribute their
Registrable Shares through such Underwritten Offering and, if a Prior Holder elects to
distribute its shares of Common Stock through such Underwritten Offering, such Prior
Holder, shall enter into an underwriting agreement in customary form with the managing
underwriters selected for such underwriting and complete and execute any questionnaires,
powers of attorney, indemnities, securities escrow agreements and other documents
reasonably required under the terms of such underwriting, and furnish to the Company such
information in writing as the Company may reasonably request for inclusion in the
Registration Statement; provided, however, that neither any Holder nor any Prior Holder
shall be required to make any representations or warranties to or agreements with the
Company or the underwriters other than representations, warranties or agreements as are
customary and reasonably requested by the underwriters. Notwithstanding any other provision
of this Agreement, if the managing underwriters determine in good faith that marketing
factors require a limitation on the number of shares to be included in such Underwritten
Offering, then the managing underwriters may exclude shares (including Registrable Shares)
from the Underwritten Offering, and any shares included in the Underwritten Offering shall
be allocated first, to each of the Holders requesting inclusion of their Registrable Shares
in such Underwritten Offering on a pro rata basis based on the total number of Registrable
Shares then held by each such Holder which is requesting inclusion, and second, to any
Prior Holders requesting inclusion of their shares in such Underwritten Offering.

     (iii) Selling Stockholder Questionnaires. Each Holder agrees, by its acquisition
of Registrable Shares, that if such Holder wishes to sell Registrable Shares pursuant to
the Mandatory Shelf Registration Statement and related Prospectus, it will do so only in
accordance with this Section 2(a)(iii). Each Holder wishing to sell Registrable Shares
pursuant to a Mandatory Shelf Registration Statement and related Prospectus agrees to
deliver a written notice, substantially in form and substance of Annex A (a “Notice and
Questionnaire”), to the Company. The Company shall mail the Notice and Questionnaire to the
Holders no later than the date of initial filing of the Mandatory Shelf Registration
Statement with the Commission. No Holder shall be entitled to be named as a selling
securityholder in the Mandatory Shelf Registration Statement as of the initial effective
date of the Mandatory Shelf Registration Statement, and no Holder shall be entitled to use
the Prospectus forming a part thereof for resales of Registrable Shares at any time, unless
such Holder has returned a completed and signed Notice and Questionnaire to the Company by
the deadline for response set forth therein; provided, however, Holders shall have at least
20 calendar days from the date on which the Notice and Questionnaire is first mailed to
such Holders to return a completed and signed Notice and Questionnaire to the Company.
Notwithstanding the foregoing, (x) upon the request of any Holder that did not return a
Notice and Questionnaire on a timely basis

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or did not receive a Notice and Questionnaire because it was a subsequent transferee of
Registrable Shares after the Company mailed the Notice and Questionnaire, the Company shall
distribute a Notice and Questionnaire to such Holders at the address set forth in the
request and (y) upon receipt of a properly completed Notice and Questionnaire from such
Holder, the Company shall use all commercially reasonable efforts to name such Holder as a
selling securityholder in the Mandatory Shelf Registration Statement by means of a
pre-effective amendment, by means of a post-effective amendment or, if permitted by the
Commission, by means of a Prospectus supplement to the Mandatory Shelf Registration
Statement; provided, however, that the Company will have no obligation to add Holders to
the Shelf Mandatory Registration Statement as selling securityholders more frequently that
one time per every 30 calendar days.

     (b) Piggyback Registration. If, after the date hereof, the Company proposes to file a
registration statement under the Securities Act providing for a public offering of the Company’s
securities, other than a registration statement on Form S-8 or Form S-4 or any similar form
hereafter adopted by the Commission as a replacement therefor (including the Prospectus, amendments
and supplements to such registration statement or Prospectus, including pre- and post-effective
amendments, all exhibits thereto and all material incorporated by reference or deemed to be
incorporated by reference, if any, in such registration statement, the “Piggyback Registration
Statement”), the Company will notify each Holder of the proposed filing and afford each Holder an
opportunity to include in such Piggyback Registration Statement all or any part of the Registrable
Shares then held by such Holder. Each Holder desiring to include in any such Piggyback Registration
Statement all or part of the Registrable Shares held by such Holder shall, within ten (10) days
after delivery of the above-described notice by the Company, so notify the Company in writing, and
in such notice shall inform the Company of the number of Registrable Shares such Holder wishes to
include in such Piggyback Registration Statement and provide, as a condition to such inclusion,
such information regarding itself, the Registrable Shares held by it and the intended method of
disposition of such securities as is required pursuant to Regulation S-K promulgated under the
Securities Act to effect the registration of the Registrable Shares. Any election by any Holder to
include any Registrable Shares in such Piggyback Registration Statement will not affect the
inclusion of such Registrable Shares in the Mandatory Shelf Registration Statement until such
Registrable Shares have been sold under the Piggyback Registration Statement; provided, however,
that at such time, the Company shall have the right to remove from the Mandatory Shelf Registration
Statement the Registrable Shares sold pursuant to the Piggyback Registration Statement.

     (i) Right to Terminate Piggyback Registration. At any time, the Company may
terminate or withdraw any Piggyback Registration Statement referred to in this Section
2(b), and without any obligation to any such Holder whether or not any Holder has elected
to include Registrable Shares in such registration. The Company shall also have the right
to suspend the effectiveness and use of any Piggyback Registration Statement at any time
for an unlimited amount of time whether or not any Holder has elected to include
Registrable Shares in such registration.

     (ii) Underwriting. The Company shall advise the Holders of the managing
underwriters for any Underwritten Offering proposed under the Piggyback Registration
Statement. The right of any such Holder’s Registrable Shares to be included in any
Piggyback Registration Statement pursuant to this Section 2(b) shall be conditioned upon
such Holder’s participation in such Underwritten Offering and the inclusion of such
Holder’s Registrable Shares in the Underwritten Offering to the extent provided herein. All
Holders proposing to distribute their Registrable Shares through such Underwritten Offering
shall enter into an underwriting agreement in customary form with the managing underwriters
selected for such underwriting and complete and execute any questionnaires, powers of
attorney, indemnities, securities escrow agreements and other documents reasonably required
under the terms of such underwriting, and furnish to the Company such information in
writing as the Company may reasonably request for inclusion in the Registration Statement;
provided, however, that no Holder shall be required to make any representations or
warranties to or agreements with the Company or the underwriters other than
representations, warranties or agreements as are customary and reasonably requested by the
underwriters. Notwithstanding any other provision of this Agreement, if the managing
underwriters determine in good faith that marketing factors require a limitation on the
number of shares to be included, then

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the managing underwriters may exclude shares (including Registrable Shares) from the
Piggyback Registration Statement and the Underwritten Offering, and any Shares included in
the Piggyback Registration Statement and the Underwritten Offering shall be allocated,
first, to the Company, and second, to each of the Holders and the Prior Holder(s)
requesting inclusion of their Registrable Shares in such Piggyback Registration Statement
on a pro rata basis based on the total number of Registrable Shares then held by each such
Holder which is requesting inclusion. If any Holder disapproves of the terms of any
Underwritten Offering, such Holder may elect to withdraw therefrom by written notice to the
Company and the underwriter, delivered at least 10 Business Days prior to the effective
date of the Piggyback Registration Statement. Any Registrable Shares excluded or withdrawn
from such Underwritten Offering shall be excluded and withdrawn from the Piggyback
Registration Statement.

     (iii) Hold-Back Agreement. By electing to include Registrable Shares in the
Piggyback Registration Statement, if any, the Holder shall be deemed to have agreed not to
effect any sale or distribution of securities of the Company of the same or similar class
or classes of the securities included in the Registration Statement or any securities
convertible into or exchangeable or exercisable for such securities, including a sale
pursuant to Rule 144 under the Securities Act, during such periods as reasonably requested
(but in no event for a period longer than 60 days following the effective date of the
Piggyback Registration Statement, provided each of the executive officers and directors of
the Company that hold shares of Common Stock of the Company or securities convertible into
or exchangeable or exercisable for shares of Common Stock of the Company are subject to the
same restriction for the entire time period required of the Holders hereunder) by the
representatives of the underwriters, if an Underwritten Offering.

     (iv) Mandatory Shelf Registration not Impacted by Piggyback Registration Statement.
The Company’s obligation to file any Mandatory Shelf Registration Statement shall not be
affected by the filing or effectiveness of the Piggyback Registration Statement.

     (c) Subsequent Shelf Registration for Additional Shares Issued after Effectiveness of the
Mandatory Shelf Registration Statement. If any Additional Shares are issued or distributed to
Holders after the effectiveness of the Mandatory Shelf Registration Statement, or such Additional
Shares were otherwise not included in a prior Registration Statement, then the Company shall as
soon as practicable file an additional shelf registration statement (including the Prospectus,
amendments and supplements to such registration statement or Prospectus, including pre- and
post-effective amendments, all exhibits thereto and all material incorporated by reference or
deemed to be incorporated by reference, if any, in such registration statement, a “Subsequent Shelf
Registration Statement”) covering such Additional Shares on behalf of the Holders thereof in the
same manner, and subject to the same provisions in this Agreement as the Mandatory Shelf
Registration Statement.

     (d) Expenses. The Company shall pay all Registration Expenses in connection with the
registration of the Registrable Shares pursuant to this Agreement. Each Holder participating in a
registration pursuant to this Section 2 shall bear such Holder’s proportionate share (based on the
total number of Registrable Shares sold in such registration) of all discounts and commissions
payable to underwriters or brokers and all transfer taxes in connection with a registration of
Registrable Shares pursuant to this Agreement and any other expense of the Holders not specifically
allocated to the Company pursuant to this Agreement relating to the sale or disposition of such
Holder’s Registrable Shares pursuant to any Registration Statement.

3.     Rule 144 Reporting.

     With a view to making available the benefits of certain rules and regulations of the
Commission that may permit the sale of the Registrable Shares to the public without registration,
the Company agrees to, so long as any Holder owns any Registrable Shares:

     (a) make and keep public information available, as those terms are understood and defined in
Rule 144(c) under the Securities Act;

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     (b) use its commercially reasonable efforts to file with the Commission in a timely manner
all reports and other documents required to be filed by the Company under the Securities Act and
the Exchange Act; and

     (c) furnish to any Holder promptly upon request a written statement by the Company as to its
compliance in all material respects with the reporting requirements of Rule 144 and of the Exchange
Act, a copy of the most recent annual or quarterly report of the Company, and such other reports
and documents of the Company, and take such reasonable further actions consistent with this Section
3, as a Holder may reasonably request in availing itself of any rule or regulation of the
Commission allowing a Holder to sell any such Registrable Shares without registration.

4.     Registration Procedures.

     In connection with the obligations of the Company with respect to any registration pursuant to
this Agreement, the Company shall:

     (a) prepare and file with the Commission, as specified in this Agreement, each Registration
Statement, which Registration Statement shall comply as to form in all material respects with the
requirements of the applicable form and include all financial statements required by the Commission
to be filed therewith, and use its commercially reasonable efforts to cause any Mandatory
Registration Statement to become and remain effective as set forth in Section 2(a)(i) hereof;
provided, however, that the Company shall not be required to cause any Piggyback Registration
Statement to become or remain effective;

     (b) subject to Section 4(i) hereof, (i) prepare and file with the Commission such amendments
and post-effective amendments to each such Registration Statement as may be necessary to keep such
Registration Statement effective for the period described in Section 4(a) hereof, (ii) cause each
Prospectus contained therein to be supplemented by any required Prospectus supplement, and as so
supplemented to be filed pursuant to Rule 424 or any similar rule that may be adopted under the
Securities Act, and (iii) comply in all material respects with the provisions of the Securities Act
with respect to the disposition of all securities covered by each Registration Statement during the
applicable period in accordance with the intended method or methods of distribution by the selling
Holders thereof;

     (c) furnish to the Holders, without charge, as many copies of each Prospectus, including
each preliminary Prospectus, and any amendment or supplement thereto and such other documents as
such Holder may reasonably request, in order to facilitate the public sale or other disposition of
the Registrable Shares; the Company hereby consenting to the use of such Prospectus, including each
preliminary Prospectus, by the Holders, if any, in connection with the offering and sale of the
Registrable Shares covered by any such Prospectus;

     (d) use its commercially reasonable efforts to register or qualify, or obtain exemption from
registration or qualification for, all Registrable Shares by the time the applicable Registration
Statement is declared effective by the Commission under all applicable state securities or “blue
sky” laws of such domestic jurisdictions as any Holder covered by a Registration Statement shall
reasonably request in writing, keep each such registration or qualification or exemption effective
during the period such Registration Statement is required to be kept effective pursuant to Section
4(a) and do any and all other acts and things that may be reasonably necessary or advisable to
enable such Holder to consummate the disposition in each such jurisdiction of such Registrable
Shares owned by such Holder; provided, however, that the Company shall not be required to (i)
qualify generally to do business in any jurisdiction or to register as a broker or dealer in such
jurisdiction where it would not otherwise be required to qualify but for this Section 4(d), (ii)
subject itself to taxation in any such jurisdiction, or (iii) submit to the general service of
process in any such jurisdiction;

     (e) use its commercially reasonable efforts to cause all Registrable Shares covered by such
Registration Statement to be registered and approved by such other domestic governmental agencies
or authorities, if any, as may be necessary to enable the Holders thereof to consummate the
disposition of such Registrable Shares;

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     (f) notify each Holder with Registrable Shares covered by a Registration Statement promptly
and, if requested by any such Holder, confirm such advice in writing (i) when such Registration
Statement has become effective and when any post-effective amendments and supplements thereto
become effective, (ii) of the issuance by the Commission or any state securities authority of any
stop order suspending the effectiveness of such Registration Statement or the initiation of any
proceedings for that purpose, (iii) of any request by the Commission or any other federal or state
governmental authority for amendments or supplements to such Registration Statement or related
Prospectus or for additional information, and (iv) of the happening of any event during the period
such Registration Statement is effective as a result of which such Registration Statement or the
related Prospectus or any document incorporated by reference therein contains any untrue statement
of a material fact or omits to state any material fact required to be stated therein or necessary
to make the statements therein not misleading (which information shall be accompanied by an
instruction to suspend the use of the Registration Statement and the Prospectus until the requisite
changes have been made);

     (g) during the period of time referred to in Section 4(a) above, use its commercially
reasonable efforts to avoid the issuance of, or if issued, to obtain the withdrawal of, any order
enjoining or suspending the use or effectiveness of a Registration Statement or suspending the
qualification (or exemption from qualification) of any of the Registrable Shares for sale in any
jurisdiction, as promptly as practicable;

     (h) upon request, furnish to each requesting Holder with Registrable Shares covered by a
Registration Statement, without charge, at least one conformed copy of such Registration Statement
and any post-effective amendment or supplement thereto (without documents incorporated therein by
reference or exhibits thereto, unless requested);

     (i) except as provided in Section 5, upon the occurrence of any event contemplated by
Section 4(f)(iv), use its commercially reasonable efforts to promptly prepare a supplement or
post-effective amendment to a Registration Statement or the related Prospectus or any document
incorporated therein by reference or file any other required document so that, as thereafter
delivered to the purchasers of the Registrable Shares, such Prospectus will not contain any 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, and, upon request, promptly furnish to each requesting Holder a reasonable
number of copies of each such supplement or post-effective amendment;

     (j) if requested by the representative of the underwriters, if any, or any Holders of
Registrable Shares being sold in connection with an Underwritten Offering, (i) promptly incorporate
in a Prospectus supplement or post-effective amendment such material information as the
representative of the underwriters, if any, or such Holders indicate relates to them or otherwise
reasonably request 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;

     (k) in the case of an Underwritten Offering, use its commercially reasonable efforts to
furnish or caused to be furnished to each Holder of Registrable Shares covered by such Registration
Statement and the underwriters a signed counterpart, addressed to each such Holder and the
underwriters, of: (i) an opinion of counsel for the Company, dated the date of each closing under
the underwriting agreement, reasonably satisfactory to the underwriters; and (ii) a “comfort”
letter, dated the effective date of such Registration Statement and the date of each closing under
the underwriting agreement, signed by the independent public accountants who have certified the
Company’s financial statements included in such Registration Statement, covering substantially the
same matters with respect to such Registration Statement (and the Prospectus included therein) and
with respect to events subsequent to the date of such financial statements, as are customarily
covered in accountants’ letters delivered to underwriters in underwritten public offerings of
securities, and such other financial matters as the underwriters may reasonably request and
customarily obtained by underwriters in underwritten offerings; provided that, in order to be an
addressee of the comfort letter, each Holder may be required to confirm that it is in the category
of persons to whom a comfort letter may be delivered in accordance with applicable accounting
literature;

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     (l) enter into customary agreements (including in the case of an Underwritten Offering, an
underwriting agreement in customary form) and take all other action in connection therewith in
order to expedite or facilitate the distribution of the Registrable Shares included in such
Registration Statement and, in the case of an Underwritten Offering, make representations and
warranties to the underwriters in such form and scope as are customarily made by issuers to
underwriters in underwritten offerings consistent with representations and warranties made by the
Company in public or private offerings and confirm the same to the extent customary if and when
requested;

     (m) in connection with an Underwritten Offering, use its commercially reasonable efforts to
make available for inspection by the representative of any underwriters participating in any
disposition pursuant to a Registration Statement, all financial and other records, pertinent
corporate documents and properties of the Company and cause the respective officers, directors and
employees of the Company to supply all information reasonably requested by any such
representatives, the representative of the underwriters, counsel thereto or accountants in
connection with a Registration Statement; provided, however, that such records, documents or
information that the Company determines, in good faith, to be confidential and notifies such
representatives, representative of the underwriters, counsel thereto or accountants are
confidential shall not be disclosed by the representatives, representative of the underwriters,
counsel thereto or accountants unless (i) the disclosure of such records, documents or information
is necessary to avoid or correct a misstatement or omission in a Registration Statement or
Prospectus, (ii) the release of such records, documents or information is ordered pursuant to a
subpoena or other order from a court of competent jurisdiction, or (iii) such records, documents or
information have been generally made available to the public; provided further, that to the extent
practicable, the foregoing inspection and information gathering shall be coordinated on behalf of
the Holders and the other parties entitled thereto by one counsel designated by and on behalf of
the Holders and the other parties, which counsel the Company determines in good faith is reasonably
acceptable;

     (n) use its commercially reasonable efforts (including, without limitation, seeking to cure
in the Company’s listing or inclusion application any deficiencies cited by the exchange or market)
to list or include all Registrable Shares on any securities exchange or the Nasdaq Stock Market on
which the Common Stock is then listed or included;

     (o) prepare and file in a timely manner all documents and reports required by the Exchange
Act and, to the extent the Company’s obligation to file such reports pursuant to Section 15(d) of
the Exchange Act expires prior to the expiration of the effectiveness period of the Registration
Statement as required by Section 4(a) hereof, the Company shall register the Registrable Shares
under the Exchange Act and shall maintain such registration through the effectiveness period
required by Section 4(a) hereof;

     (p) (i) otherwise use its commercially reasonable efforts to comply in all material respects
with all applicable rules and regulations of the Commission, (ii) make generally available to its
stockholders, as soon as reasonably practicable, earnings statements covering at least 12 months
that satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder, and
(iii) delay filing any Registration Statement or Prospectus or amendment or supplement to such
Registration Statement or Prospectus to which any Holder of Registrable Shares covered by any
Registration Statement shall have reasonably objected on the grounds that such Registration
Statement or Prospectus or amendment or supplement does not comply in all material respects with
the requirements of the Securities Act, such Holder having been furnished with a copy thereof at
least two Business Days prior to the filing thereof, provided that the Company may file such
Registration Statement or Prospectus or amendment or supplement following such time as the Company
shall have made a good faith effort to resolve any such issue with the objecting Holder and shall
have advised the Holder in writing of its reasonable belief that such filing complies in all
material respects with the requirements of the Securities Act;

     (q) cause to be maintained a registrar and transfer agent for all Registrable Shares covered
by any Registration Statement from and after a date not later than the effective date of such
Registration Statement; and

9

 

     (r) in connection with any sale or transfer of the Registrable Shares (whether or not
pursuant to a Registration Statement) that will result in the securities being delivered no longer
constituting Registrable Shares, cooperate with the Holders and the representative of the
underwriters, if any, to facilitate the timely preparation and delivery of certificates
representing the Registrable Shares to be sold, which certificates shall not bear any transfer
restrictive legends (other than as required by the Company’s charter), and to enable such
Registrable Shares to be in such denominations and registered in such names as the representative
of the underwriters, if any, or the Holders may request at least three Business Days prior to any
sale of the Registrable Shares.

     The Company may require the Holders to furnish to the Company such information regarding the
proposed distribution by such Holder as the Company may from time to time reasonably request in
writing or as shall be required to effect the registration of the Registrable Shares, and no Holder
shall be entitled to be named as a selling stockholder in any Registration Statement and no Holder
shall be entitled to use the Prospectus forming a part thereof if such Holder does not provide such
information to the Company. Each Holder further agrees to furnish promptly to the Company in
writing all information required from time to time to make the information previously furnished by
such Holder not misleading.

     Each Holder agrees that, upon receipt of any notice from the Company of the happening of any
event of the kind described in Section 4(f)(ii), 4(f)(iii) or 4(f)(iv) hereof, such Holder will
immediately discontinue disposition of Registrable Shares pursuant to a Registration Statement
until (i) any such stop order is vacated or (ii) if an event described in Section 4(f)(iii) or
4(f)(iv) occurs, such Holder’s receipt of the copies of the supplemented or amended Prospectus. If
so directed by the Company, such Holder will deliver to the Company (at the reasonable expense of
the Company) all copies in its possession, other than permanent file copies then in such Holder’s
possession, of the Prospectus covering such Registrable Shares current at the time of receipt of
such notice.

5.     Suspension Period.

     (a) Subject to the provisions of this Section 5 and a good faith determination by a majority
of the Board of Directors of the Company that it is in the best interests of the Company to suspend
the use of any Mandatory Registration Statement, following the effectiveness of such Mandatory
Registration Statement (and the filings with any international, federal or state securities
commissions), the Company, by written notice to each of the Holders, may direct the Holders to
suspend sales of the Registrable Shares pursuant to such Mandatory Registration Statement for such
times as the Company reasonably may determine is necessary and advisable (but in no event for more
than 45 days in any 90-day period or more than 60 days in any 12-month period), if any of the
following events shall occur: pending discussions relating to, or the consummation of, a
transaction or the occurrence of an event (x) that would require additional disclosure of material
information by the Company in the Mandatory Registration Statement (or such filings) and which has
not been so disclosed, (y) as to which the Company has a bona fide business purpose for preserving
confidentiality, or (z) that renders the Company unable to comply with Commission requirements, in
each case under circumstances that would make it impractical or inadvisable to promptly amend or
supplement the Mandatory Registration Statement on a post-effective basis, as applicable. Upon the
earlier to occur of (i) the Company delivering to the Holders an End of Suspension Notice, as
hereinafter defined, or (ii) the end of the maximum permissible suspension period, the Company
shall use its commercially reasonable efforts to promptly amend or supplement the Mandatory
Registration Statement on a post-effective basis, if necessary, or to take such action as is
necessary to make resumed use of the Mandatory Registration Statement compatible with the Company’s
best interests, as applicable, so as to permit the Holders to resume sales of the Registrable
Shares as soon as possible. The Company shall have the right to suspend the effectiveness and use
of any Piggyback Registration Statement at any time for an unlimited amount of time.

     (b) In the case of an event that causes the Company to suspend the use of a Registration
Statement (a “Suspension Event”), the Company shall give written notice (a “Suspension Notice”) to
the Holders to suspend sales of the Registrable Shares, and such notice shall state that such
suspension shall continue only for so long as the Suspension Event or its effect is continuing and
the Company is taking all reasonable steps to terminate suspension of the effectiveness of the
Registration Statement as promptly as possible.

10

 

The Holders shall not effect any sales of the Registrable Shares pursuant to such Registration
Statement (or such filings) at any time after it has received a Suspension Notice from the Company
and prior to receipt of an End of Suspension Notice (as defined below). If so directed by the
Company, each Holder will deliver to the Company (at the expense of the Company) all copies other
than permanent file copies then in such Holder’s possession of the Prospectus covering the
Registrable Shares at the time of receipt of the Suspension Notice. The Holders may recommence
effecting sales of the Registrable Shares pursuant to the Registration Statement (or such filings)
following further notice to such effect (an “End of Suspension Notice”) from the Company, which End
of Suspension Notice shall be given by the Company to the Holders in the manner described above
promptly following the conclusion of any Suspension Event and its effect.

     (c) Notwithstanding any provision herein to the contrary, if the Company shall give a
Suspension Notice pursuant to this Section 5 with respect to any Mandatory Registration Statement,
the Company agrees that it shall extend the period of time during which such Mandatory Registration
Statement shall be maintained effective pursuant to this Agreement by the number of days during the
period from the date of the giving of the Suspension Notice to and including the date when Holders
shall have received the End of Suspension Notice and copies of the supplemented or amended
Prospectus necessary to resume sales; provided such period of time shall not be extended beyond the
date that Shares or Additional Shares are not Registrable Shares.

6.     Indemnification and Contribution.

     (a) The Company agrees to indemnify and hold harmless (i) each Holder, (ii) each Person, if
any, who controls (within the meaning of Section 15 of the Securities Act or Section 20(a) of the
Exchange Act) any of the foregoing (a “Controlling Person”), and (iii) the respective officers,
directors, partners, members, employees, representatives and agents of each Holder or any
Controlling Person (any Person referred to in clause (i), (ii) or (iii) may hereinafter be referred
to as a “Purchaser Indemnitee”) from and against any and all losses, claims, damages, judgments,
actions, reasonable out-of-pocket expenses, and other liabilities (the “Liabilities”), including,
without limitation and as incurred, reimbursement of all reasonable costs of investigating,
preparing, pursuing or defending any claim or action, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, including the reasonable fees and expenses of
outside counsel to any Purchaser Indemnitee, joint or several, directly or indirectly related to,
based upon, arising out of or in connection with any untrue statement or alleged untrue statement
of a material fact contained in any Registration Statement or Prospectus (as amended or
supplemented if the Company shall have furnished to such Purchaser Indemnitee any amendments or
supplements thereto), or any preliminary Prospectus or any other document prepared by the Company
used to sell the Registrable Shares, or 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 a Prospectus, in light of the circumstances under which they were made), not misleading,
except insofar as such Liabilities arise out of or are based upon (i) any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in conformity with
information relating to any Purchaser Indemnitee furnished to the Company or any underwriter in
writing by such Purchaser Indemnitee expressly for use therein, (ii) any untrue statement contained
in or omission from a preliminary Prospectus if a copy of the Prospectus (as then amended or
supplemented, if the Company shall have furnished to or on behalf of the Holder participating in
the distribution relating to the relevant Registration Statement any amendments or supplements
thereto) was not sent or given by or on behalf of such Holder to the Person asserting any such
Liabilities who purchased Shares, if such Prospectus (or Prospectus as amended or supplemented) is
required by law to be sent or given at or prior to the written confirmation of the sale of such
Shares to such Person and the untrue statement contained in or omission from such preliminary
Prospectus was corrected in the Prospectus (or the Prospectus as amended or supplemented), or (iii)
any sales by any Holder after the delivery by the Company to such Holder of a Suspension Notice and
before the delivery by the Company of an End of Suspension Notice. The indemnity provided for
herein shall remain in full force and effect regardless of any investigation made by or on behalf
of any Purchaser Indemnitee.

     (b) In connection with any Registration Statement in which a Holder is participating, such
Holder agrees, severally and not jointly, to indemnify and hold harmless the Company, each Person
who controls

11

 

the Company within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange
Act, and the respective officers, directors, partners, members, representatives, employees and
agents of such Person or Controlling Person to the same extent as the foregoing indemnity from the
Company to each Purchaser Indemnitee, but only with reference to (i) untrue statements or omissions
or alleged untrue statements or omissions made in reliance upon and in strict conformity with
information relating to such Holder furnished to the Company in writing by such Holder expressly
for use in any Registration Statement or Prospectus, any amendment or supplement thereto, or any
preliminary Prospectus and (ii) any sales by any Holder after the delivery by the Company to such
Holder of a Suspension Notice and before the delivery by the Company of an End of Suspension
Notice. The liability of any Holder pursuant to clause (i) of the immediately preceding sentence
shall in no event exceed the net proceeds received by such Holder from sales of Registrable Shares
giving rise to such obligations. If the Holder elects to include Registrable Shares in an
Underwritten Offering, the Holder shall be required to agree to such customary indemnification
provisions as may reasonably be required by the underwriter in connection with such Underwritten
Offering.

     (c) If any suit, action, proceeding (including any governmental or regulatory
investigation), claim or demand shall be brought or asserted against any Person in respect of which
indemnity may be sought pursuant to Section 6(a) or 6(b), such Person (the “Indemnified Party”),
shall promptly notify the Person against whom such indemnity may be sought (the “Indemnifying
Party”), in writing of the commencement thereof (but the failure to so notify an Indemnifying Party
shall not relieve it from any liability which it may have under this Section 6, except to the
extent the Indemnifying Party is materially prejudiced by the failure to give notice), and the
Indemnifying Party, upon request of the Indemnified Party, shall retain counsel reasonably
satisfactory to the Indemnified Party to represent the Indemnified Party and any others the
Indemnifying Party may reasonably designate in such proceeding and shall assume the defense of such
proceeding and pay the fees and expenses actually incurred by such counsel related to such
proceeding. Notwithstanding the foregoing, in any such proceeding, any Indemnified Party shall have
the right to retain its own counsel, but the fees and expenses of such counsel shall be at the
expense of such Indemnified Party, unless (i) the Indemnifying Party and the Indemnified Party
shall have mutually agreed in writing to the contrary, (ii) the Indemnifying Party failed within a
reasonable time after notice of commencement of the action to assume the defense and employ counsel
reasonably satisfactory to the Indemnified Party, (iii) the Indemnifying Party and its counsel do
not pursue in a reasonable manner the defense of such action or (iv) the named parties to any such
action (including any impleaded parties) include both such Indemnified Party and the Indemnifying
Party, or any affiliate of the Indemnifying Party, and such Indemnified Party shall have been
reasonably advised by counsel that, either (x) there may be one or more legal defenses available to
it which are different from or additional to those available to the Indemnifying Party or such
affiliate of the Indemnifying Party or (y) a conflict may exist between such Indemnified Party and
the Indemnifying Party or such affiliate of the Indemnifying Party, in which event the Indemnifying
Party shall not have the right to assume or direct the defense of such action on behalf of such
Indemnified Party, it being understood, however, that the Indemnifying Party shall not, in
connection with any one such action or separate but substantially similar or related actions
arising out of the same general allegations or circumstances, be liable for the fees and expenses
of more than one separate firm of attorneys (in addition to any local counsel) for all such
Indemnified Parties, which firm shall be designated in writing by those Indemnified Parties who
sold a majority of the Registrable Shares sold by all such Indemnified Parties and any such
separate firm for the Company, the directors, the officers and such control Persons of the Company
as shall be designated in writing by the Company. The Indemnifying Party shall not be liable for
any settlement of any proceeding effected without its written consent, which consent shall not be
unreasonably withheld or delayed, but if settled with such consent or if there be a final judgment
for the plaintiff, the Indemnifying Party agrees to indemnify any Indemnified Party from and
against any loss or liability by reason of such settlement or judgment to the extent provided in
this Section 6 without reference to this sentence. 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) If the indemnification provided for in Section 6(a) or 6(b) is for any reason held to be
unavailable

12

 

to an Indemnified Party in respect of any Liabilities referred to therein (other than by reason of
the exceptions provided therein) or is insufficient to hold harmless a party indemnified
thereunder, then each Indemnifying Party under such sections, in lieu of indemnifying such
Indemnified Party thereunder, shall contribute to the amount paid or payable by such Indemnified
Party as a result of such Liabilities (i) in such proportion as is appropriate to reflect the
relative benefits of the Indemnified Party on the one hand and the Indemnifying Parties on the
other in connection with the statements or omissions that resulted in such Liabilities, or (ii) if
the allocation provided by clause (i) above is not permitted by applicable law, in such proportion
as is appropriate to reflect not only the relative benefits referred to in clause (i) above but
also the relative fault of the Indemnifying Parties and the Indemnified Party, as well as any other
relevant equitable considerations. The relative fault of the Company, on the one hand, and any
Purchaser Indemnitees, on the other, 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 Company or by such
Purchaser Indemnitees and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.

     (e) The parties agree that it would not be just and equitable if contribution pursuant to
this Section 6 were determined by pro rata allocation (even if such Indemnified Parties were
treated as one entity for such purpose), or by any other method of allocation that does not take
account of the equitable considerations referred to in Section 6(d). The amount paid or payable by
an Indemnified Party as a result of any Liabilities referred to in Section 6(d) shall be deemed to
include, subject to the limitations set forth above, any reasonable legal or other expenses
actually incurred by such Indemnified Party in connection with investigating or defending any such
action or claim. For purposes of this Section 6, each Person, if any, who controls (within the
meaning of Section 15 of the Act or Section 20(a) of the Exchange Act) a Holder shall have the same
rights to contribution as such Holder, as the case may be, and each Person, if any, who controls
(within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act) the Company, and
each officer, director, partner, member, employee, representative, agent or manager of the Company
shall have the same rights to contribution as the Company. Any party entitled to contribution will,
promptly after receipt of notice of commencement of any action, suit or proceeding against such
party in respect of which a claim for contribution may be made against another party or parties,
notify each 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 6 or otherwise, except to the extent
that any party is materially prejudiced by the failure to give notice. 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.

     (f) The indemnity and contribution agreements contained in this Section 6 will be in
addition to any liability which the indemnifying parties may otherwise have to the indemnified
parties referred to above. Each Purchaser Indemnitee’s obligations to contribute pursuant to this
Section 6 are not joint but are several in the proportion that the number of Shares sold by such
Purchaser Indemnitee bears to the number of Shares sold by all Purchaser Indemnities.

7.     Termination of the Company’s Obligations.

     The Company shall have no further obligations pursuant to this Agreement at such time as no
Registrable Shares are outstanding, provided, however, that the Company’s obligations under
Sections 3, 6 and 8 of this Agreement shall remain in full force and effect following such time.

8.     Miscellaneous.

     (a) Amendments and Waivers. This Agreement may not be amended, modified or supplemented,
and waivers or consents to or departures from the provisions hereof may not be given, without the
written consent of the Company and Holders beneficially owning a majority of the then outstanding
Registrable Shares; provided, however, that for purposes of this Agreement, Registrable Shares
owned, directly or indirectly, by an Affiliate of the Company shall not be deemed to be
outstanding. Notwithstanding the foregoing, a waiver or consent to or departure from the provisions
hereof with respect to a matter that

13

 

relates exclusively to the rights of a Holder 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 may be given by such Holder; provided that the provisions of this
sentence may not be amended, modified or supplemented except in accordance with the provisions of
the immediately preceding sentence.

     (b) Notices. All notices and other communications, provided for or permitted hereunder
shall be made in writing and delivered by facsimile (with receipt confirmed), overnight courier or
registered or certified mail, return receipt requested, or by telegram, addressed as follows:

     (i) if to a Holder, at the most current address given by the transfer agent and
registrar of the Shares to the Company;

     (ii) if to the Company, at the offices of the Company at 1100 Louisiana Street,
Suite 4400, Houston, Texas 77002, Attention: Stephen W. Herod, (facsimile 832-204-2877);
with copies (which shall not constitute notice) to: (A) Hinkle Elkouri Law Firm L.L.C.,
2000 Epic Center, 301 North Main Street, Wichita, Kansas 67202, Attention: David S.
Elkouri, Esq. (Fax: (316) 264-1518) and (B) Thompson & Knight LLP, 333 Clay Street, Suite
3300, Houston, Texas 77002, Attention: Dallas Parker, Esq. (facsimile 832-397-8110); and

     (iii) if to the Purchasers, to them at the address set forth on Exhibit A hereto, or
such other address as each Purchaser may specify in writing to the Company.

     (c) Successors and Assigns; Third Party Beneficiaries. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each of the parties hereto and shall
inure to the benefit of each Holder. The Company agrees that the Holders shall be third party
beneficiaries to the agreements made hereunder by the Purchasers and the Company, and each Holder
shall have the right to enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights hereunder; provided, however, that such Holder
fulfills all of its obligations hereunder.

     (d) 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.

     (e) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF DELAWARE, AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE
OF DELAWARE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT OF THE
DISTRICT OF DELAWARE OR THE DELAWARE STATE COURT SYSTEM, INCLUDING, BUT NOT LIMTED TO, THE DELAWARE
COURT OF CHANCERY, IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT, AND IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH OF THE PARTIES HERETO IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, ANY OBJECTION THAT IT
MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT
IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT
HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

     (f) Severability. If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in
full force and effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their commercially reasonable efforts to find and employ an alternative means to
achieve the same or substantially the same result as that

14

 

contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared
to be the intention of the parties hereto 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.

     (g) Entire Agreement. This Agreement, together with the Stock Purchase Agreement, is
intended by the parties hereto as a final expression of their agreement, and is intended to be a
complete and exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein and therein.

     (h) Registrable Shares Held by the Company or its Affiliates. Whenever the consent or
approval of Holders of a specified percentage of Registrable Shares is required hereunder,
Registrable Shares held by the Company or its Affiliates shall not be counted in determining
whether such consent or approval was given by the Holders of such required percentage.

     (i) Survival. This Agreement is intended to survive the consummation of the transactions
contemplated by the Stock Purchase Agreement. The indemnification and contribution obligations
under Section 6 of this Agreement shall survive the termination of the Company’s obligations under
Section 2 of this Agreement.

     (j) Headings. The headings in this Agreement are for convenience of reference only and
shall not limit or otherwise affect the provisions of this Agreement. All references made in this
Agreement to “Section” refer to such Section of this Agreement, unless expressly stated otherwise.

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

“COMPANY”

PETROHAWK ENERGY CORPORATION

By: /s/ Floyd C. Wilson
                                        

Name:
Floyd C. Wilson

Title: President and Chief Executive Officer

“PURCHASERS”

GLG NORTH AMERICAN
OPPORTUNITY FUND

By: /s/ Victoria Parry                                               

Name:
Victoria Parry

Title: Senior Legal Counsel, GLG Partners LP

15

 

EXHIBIT A

PURCHASERS

GLG North American
Opportunity Fund

c/o GLG Partners LP

One Curzon Street

London WIJ SHB

Attn: Vicky Parry

Fax: +44 20 7408 4388

16exv4w13

 

EXHIBIT 4.13

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT is made and entered into as of April 4, 2005, by and
between Petrohawk Energy Corporation, a Delaware corporation (the “Company”), on the one hand, and
each of the parties identified on Exhibit A (collectively, the “Purchasers”), on the other hand.

W I T N E S S E T H:

     WHEREAS, PHAWK, LLC, a Delaware limited liability company (“PHAWK”) and each of the
Purchasers have entered into Stock Purchase Agreements as identified on Exhibit A (the “Stock
Purchase Agreements”), in connection with which PHAWK sold 1,830,000 shares (the “Common Shares”)
of the Company’s common stock, par value $0.001 (the “Common Stock”); and

     WHEREAS, the Company has agreed to provide the registration rights provided for in this
Agreement (as defined below) for the holders of Registrable Shares (as defined below); and

     NOW, THEREFORE, in consideration of the premises and the mutual covenants of the parties
hereto, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

1.     Definitions. As used herein, the following terms shall have the following meanings:

     "Additional Shares” means shares or other securities issued in respect of the Common Shares by
reason of or in connection with any stock dividend, stock distribution, stock split or similar
issuance.

     "Agreement” means this Registration Rights Agreement made and entered into as of April 1,
2005.

     "Affiliate” means, as to any specified Person, (i) any Person that directly, or indirectly
through one or more intermediaries, controls or is controlled by, or is under common control with,
the specified Person, (ii) any executive officer, director, trustee or general partner of the
specified Person and (iii) any legal entity for which the specified Person acts as an executive
officer, director, trustee or general partner. For purposes of this definition, “control”
(including the correlative meanings of the terms “controlled by” and “under common control with”),
as used with respect to any Person, shall mean the possession, directly, or indirectly through one
or more intermediaries, of the power to direct or cause the direction of the management and
policies of such Person, whether by contract, through the ownership of voting securities,
partnership interests or other equity interests or otherwise.

     "Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on
which banking institutions in Houston, Texas are authorized or obligated by applicable law,
regulation or executive order to close.

     "Closing Date” means April 5, 2005.

     "Commission” means the Securities and Exchange Commission.

     "Common Shares” is defined in the first recital clause of this Agreement.

     "Common Stock” is defined in the first recital clause of this Agreement.

     "Company” is defined in the introductory paragraph of this Agreement, and any successor
thereto.

     "Controlling Person” is defined in Section 6(a) hereof.

     "End of Suspension Notice” is defined in Section 5(b) hereof.

1

 

     "Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated by the Commission pursuant thereto.

     "Holder” means each record owner of any Registrable Shares from time to time, including, but
not limited to, each of the Purchasers for such time as they are the record owner of any of the
Registrable Shares.

     "Indemnified Party” is defined in Section 6(c) hereof.

     "Indemnifying Party” is defined in Section 6(c) hereof.

     "Liabilities” is defined in Section 6(a) hereof.

     "Mandatory Registration Statement” means the Mandatory Shelf Registration Statement or any
Subsequent Shelf Registration Statement.

     "Mandatory Shelf Registration Statement” is defined in Section 2(a) hereof.

     "NASD” means the National Association of Securities Dealers, Inc.

     "Person” means an individual, limited liability company, partnership, corporation, trust,
unincorporated organization, government or agency or political subdivision thereof, or any other
legal entity.

     "Piggyback Registration Statement” is defined in Section 2(b) hereof.

     "Prior Holder” means PHAWK and any other investor a party to or beneficiary of the
Registration Rights Agreement dated May 26, 2004 by and between the Company and PHAWK.

     "Prospectus” means the prospectus included in any Registration Statement, including any
preliminary prospectus, and all other amendments and supplements to any such prospectus, including
post-effective amendments, and all material incorporated by reference or deemed to be incorporated
by reference, if any, in such prospectus.

     "Purchaser Indemnitee” is defined in Section 6(a) hereof.

     "Purchasers” is defined in the first recital clause of this Agreement.

     "Registrable Shares” means each of the Common Shares and any Additional Shares in respect
thereof, upon original issuance thereof, and at all times subsequent thereto, including upon the
transfer thereof by the original holder or any subsequent holder, until, in the case of any such
Shares or Additional Shares, as applicable, the earliest to occur of:

     (i) the date on which they have been sold pursuant to a Registration Statement or
sold pursuant to Rule 144;

     (ii) the date on which they are saleable, in the opinion of counsel to the Company,
without registration under the Securities Act pursuant to Rule 144(k);

     (iii) the date on which they are saleable, without restriction, pursuant to an
available exemption from registration under the Securities Act; or

     (iv) the date on which they are sold to the Company or its subsidiaries.

     "Registration Expenses” means any and all expenses incident to the performance of or
compliance with this Agreement, including, without limitation: (i) all Commission, securities
exchange, NASD registration,

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listing, inclusion and filing fees, (ii) all fees and expenses incurred in connection with
compliance with international, federal or state securities or blue sky laws (including, without
limitation, any registration, listing and filing fees and reasonable fees and disbursements of
counsel in connection with blue sky qualification of any of the Registrable Shares and the
preparation of a blue sky memorandum and compliance with the rules of the NASD), (iii) all expenses
of any Persons in preparing or assisting in preparing, word processing, duplicating, printing,
delivering and distributing any Registration Statement, any Prospectus, any amendments or
supplements thereto, any underwriting agreements, securities sales agreements, certificates and any
other documents relating to the performance under and compliance with this Agreement, (iv) all fees
and expenses incurred in connection with the listing or inclusion of any of the Registrable Shares
on the NASDAQ Stock Market pursuant to Section 4(n) of this Agreement, (v) the fees and
disbursements of counsel for the Company and of the independent public accountants of the Company
(including, without limitation, the expenses of any special audit and “cold comfort” letters
required by or incident to such performance), and (vi) any fees and disbursements customarily paid
in issues and sales of securities (including the fees and expenses of any experts retained by the
Company in connection with any Registration Statement), provided, however, that Registration
Expenses shall exclude brokers’ or underwriters’ discounts and commissions and transfer taxes, if
any, relating to the sale or disposition of Registrable Shares by a Holder and the fees and
disbursements of any counsel to the Holders.

     "Registration Statement” means any Mandatory Registration Statement or Piggyback Registration
Statement.

     "Rule 144”, “Rule 158”, “Rule 415”, or “Rule 424”, respectively, means such specified rule
promulgated by the Commission pursuant to the Securities Act, as such rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission as a replacement
thereto having substantially the same effect as such rule.

     "Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated by the Commission thereunder.

     "Shares” means the Common Shares.

     "Subsequent Shelf Registration Statement” is defined in Section 2(c) hereof.

     "Suspension Event” is defined in Section 5(b) hereof.

     "Suspension Notice” is defined in Section 5(b) hereof.

     "Underwritten Offering” means a sale of securities of the Company to an underwriter or
underwriters for reoffering to the public.

2.     Registration Rights.

     (a) Mandatory Shelf Registration. As set forth in Section 4, the Company agrees to file
with the Commission as soon as reasonably practicable, but in no event later than 15 days following
the Closing Date, a shelf registration statement on Form S-3 or such other form under the
Securities Act then available to the Company providing for the resale pursuant to Rule 415 from
time to time by the Holders of any and all Registrable Shares consisting of (i) Common Shares and
all Additional Shares in respect thereof (in each case including for the avoidance of doubt any
Additional Shares that are issued prior to the effectiveness of such shelf registration statement)
(including the Prospectus, amendments and supplements to such registration statement or Prospectus,
including pre- and post-effective amendments, all exhibits thereto and all material incorporated by
reference or deemed to be incorporated by reference, if any, in such registration statement, the
"Mandatory Shelf Registration Statement”).

     (i) Effectiveness and Scope. The Company shall use its commercially reasonable
efforts to cause any Mandatory Registration Statement to be declared effective by the
Commission as soon as reasonably practicable following such filing, and to remain effective
until the earlier of (A) the

3

 

second anniversary of the effective date of the initial Mandatory Shelf Registration
Statement (subject to extension pursuant to Section 5(c)) (provided that in such case each
Holder shall have received a certificate with all restrictive legends removed as a result
of the applicable Registrable Shares being freely transferable under Rule 144(k)), or (B)
the date on which all Shares and any Additional Shares in respect thereof cease to be
Registrable Shares. The Company may include any shares of Common Stock owned by a Prior
Holder in a Mandatory Shelf Registration Statement. Any Mandatory Shelf Registration
Statement shall provide for the resale from time to time, and pursuant to any method or
combination of methods legally available (including, without limitation, an Underwritten
Offering, a direct sale to purchasers, a sale through brokers or agents, or a sale over the
internet) by the Holders of any and all Registrable Shares.

     (ii) Underwriting. If any Holder proposes to conduct an Underwritten Offering
under a Mandatory Shelf Registration Statement, such Holder shall advise the Company, all
other Holders, and any Prior Holders whose securities are included in the Mandatory Shelf
Registration Statement, of the managing underwriters for such proposed Underwritten
Offering, such managing underwriters to be subject to the approval of the Company, not to
be unreasonably withheld. In such event, the Company shall enter into an underwriting
agreement in customary form with the managing underwriters, which shall include, among
other provisions, indemnities to the effect and to the extent provided in Section 6, and
shall take all such other reasonable actions as are requested by the managing underwriter
in order to expedite or facilitate the registration and disposition of the Registrable
Shares included in such Underwritten Offering. All Holders proposing to distribute their
Registrable Shares through such Underwritten Offering and, if a Prior Holder elects to
distribute its shares of Common Stock through such Underwritten Offering, such Prior
Holder, shall enter into an underwriting agreement in customary form with the managing
underwriters selected for such underwriting and complete and execute any questionnaires,
powers of attorney, indemnities, securities escrow agreements and other documents
reasonably required under the terms of such underwriting, and furnish to the Company such
information in writing as the Company may reasonably request for inclusion in the
Registration Statement; provided, however, that neither any Holder nor any Prior Holder
shall be required to make any representations or warranties to or agreements with the
Company or the underwriters other than representations, warranties or agreements as are
customary and reasonably requested by the underwriters. Notwithstanding any other provision
of this Agreement, if the managing underwriters determine in good faith that marketing
factors require a limitation on the number of shares to be included in such Underwritten
Offering, then the managing underwriters may exclude shares (including Registrable Shares)
from the Underwritten Offering, and any shares included in the Underwritten Offering shall
be allocated first, to each of the Holders requesting inclusion of their Registrable Shares
in such Underwritten Offering on a pro rata basis based on the total number of Registrable
Shares then held by each such Holder which is requesting inclusion, and second, to any
Prior Holders requesting inclusion of their shares in such Underwritten Offering.

     (iii) Selling Stockholder Questionnaires. Each Holder agrees, by its acquisition
of Registrable Shares, that if such Holder wishes to sell Registrable Shares pursuant to
the Mandatory Shelf Registration Statement and related Prospectus, it will do so only in
accordance with this Section 2(a)(iii). Each Holder wishing to sell Registrable Shares
pursuant to a Mandatory Shelf Registration Statement and related Prospectus agrees to
deliver a written notice, substantially in form and substance of Annex A (a “Notice and
Questionnaire”), to the Company. The Company shall mail the Notice and Questionnaire to the
Holders no later than the date of initial filing of the Mandatory Shelf Registration
Statement with the Commission. No Holder shall be entitled to be named as a selling
securityholder in the Mandatory Shelf Registration Statement as of the initial effective
date of the Mandatory Shelf Registration Statement, and no Holder shall be entitled to use
the Prospectus forming a part thereof for resales of Registrable Shares at any time, unless
such Holder has returned a completed and signed Notice and Questionnaire to the Company by
the deadline for response set forth therein; provided, however, Holders shall have at least
20 calendar days from the date on which the Notice and Questionnaire is first mailed to
such Holders to return a completed and signed Notice and Questionnaire to the Company.
Notwithstanding the foregoing, (x) upon the request of any Holder that did not return a
Notice and Questionnaire on a timely basis

4

 

or did not receive a Notice and Questionnaire because it was a subsequent transferee of
Registrable Shares after the Company mailed the Notice and Questionnaire, the Company shall
distribute a Notice and Questionnaire to such Holders at the address set forth in the
request and (y) upon receipt of a properly completed Notice and Questionnaire from such
Holder, the Company shall use all commercially reasonable efforts to name such Holder as a
selling securityholder in the Mandatory Shelf Registration Statement by means of a
pre-effective amendment, by means of a post-effective amendment or, if permitted by the
Commission, by means of a Prospectus supplement to the Mandatory Shelf Registration
Statement; provided, however, that the Company will have no obligation to add Holders to
the Shelf Mandatory Registration Statement as selling securityholders more frequently that
one time per every 30 calendar days.

     (b) Piggyback Registration. If, after the date hereof, the Company proposes to file a
registration statement under the Securities Act providing for a public offering of the Company’s
securities, other than a registration statement on Form S-8 or Form S-4 or any similar form
hereafter adopted by the Commission as a replacement therefor (including the Prospectus, amendments
and supplements to such registration statement or Prospectus, including pre- and post-effective
amendments, all exhibits thereto and all material incorporated by reference or deemed to be
incorporated by reference, if any, in such registration statement, the “Piggyback Registration
Statement”), the Company will notify each Holder of the proposed filing and afford each Holder an
opportunity to include in such Piggyback Registration Statement all or any part of the Registrable
Shares then held by such Holder. Each Holder desiring to include in any such Piggyback Registration
Statement all or part of the Registrable Shares held by such Holder shall, within ten (10) days
after delivery of the above-described notice by the Company, so notify the Company in writing, and
in such notice shall inform the Company of the number of Registrable Shares such Holder wishes to
include in such Piggyback Registration Statement and provide, as a condition to such inclusion,
such information regarding itself, the Registrable Shares held by it and the intended method of
disposition of such securities as is required pursuant to Regulation S-K promulgated under the
Securities Act to effect the registration of the Registrable Shares. Any election by any Holder to
include any Registrable Shares in such Piggyback Registration Statement will not affect the
inclusion of such Registrable Shares in the Mandatory Shelf Registration Statement until such
Registrable Shares have been sold under the Piggyback Registration Statement; provided, however,
that at such time, the Company shall have the right to remove from the Mandatory Shelf Registration
Statement the Registrable Shares sold pursuant to the Piggyback Registration Statement.

     (i) Right to Terminate Piggyback Registration. At any time, the Company may
terminate or withdraw any Piggyback Registration Statement referred to in this Section
2(b), and without any obligation to any such Holder whether or not any Holder has elected
to include Registrable Shares in such registration. The Company shall also have the right
to suspend the effectiveness and use of any Piggyback Registration Statement at any time
for an unlimited amount of time whether or not any Holder has elected to include
Registrable Shares in such registration.

     (ii) Underwriting. The Company shall advise the Holders of the managing
underwriters for any Underwritten Offering proposed under the Piggyback Registration
Statement. The right of any such Holder’s Registrable Shares to be included in any
Piggyback Registration Statement pursuant to this Section 2(b) shall be conditioned upon
such Holder’s participation in such Underwritten Offering and the inclusion of such
Holder’s Registrable Shares in the Underwritten Offering to the extent provided herein. All
Holders proposing to distribute their Registrable Shares through such Underwritten Offering
shall enter into an underwriting agreement in customary form with the managing underwriters
selected for such underwriting and complete and execute any questionnaires, powers of
attorney, indemnities, securities escrow agreements and other documents reasonably required
under the terms of such underwriting, and furnish to the Company such information in
writing as the Company may reasonably request for inclusion in the Registration Statement;
provided, however, that no Holder shall be required to make any representations or
warranties to or agreements with the Company or the underwriters other than
representations, warranties or agreements as are customary and reasonably requested by the
underwriters. Notwithstanding any other provision of this Agreement, if the managing
underwriters determine in good faith that marketing factors require a limitation on the
number of shares to be included, then

5

 

the managing underwriters may exclude shares (including Registrable Shares) from the
Piggyback Registration Statement and the Underwritten Offering, and any Shares included in
the Piggyback Registration Statement and the Underwritten Offering shall be allocated,
first, to the Company, and second, to each of the Holders and the Prior Holder(s)
requesting inclusion of their Registrable Shares in such Piggyback Registration Statement
on a pro rata basis based on the total number of Registrable Shares then held by each such
Holder which is requesting inclusion. If any Holder disapproves of the terms of any
Underwritten Offering, such Holder may elect to withdraw therefrom by written notice to the
Company and the underwriter, delivered at least 10 Business Days prior to the effective
date of the Piggyback Registration Statement. Any Registrable Shares excluded or withdrawn
from such Underwritten Offering shall be excluded and withdrawn from the Piggyback
Registration Statement.

     (iii) Hold-Back Agreement. By electing to include Registrable Shares in the
Piggyback Registration Statement, if any, the Holder shall be deemed to have agreed not to
effect any sale or distribution of securities of the Company of the same or similar class
or classes of the securities included in the Registration Statement or any securities
convertible into or exchangeable or exercisable for such securities, including a sale
pursuant to Rule 144 under the Securities Act, during such periods as reasonably requested
(but in no event for a period longer than 60 days following the effective date of the
Piggyback Registration Statement, provided each of the executive officers and directors of
the Company that hold shares of Common Stock of the Company or securities convertible into
or exchangeable or exercisable for shares of Common Stock of the Company are subject to the
same restriction for the entire time period required of the Holders hereunder) by the
representatives of the underwriters, if an Underwritten Offering.

     (iv) Mandatory Shelf Registration not Impacted by Piggyback Registration Statement.
The Company’s obligation to file any Mandatory Shelf Registration Statement shall not be
affected by the filing or effectiveness of the Piggyback Registration Statement.

     (c) Subsequent Shelf Registration for Additional Shares Issued after Effectiveness of the
Mandatory Shelf Registration Statement. If any Additional Shares are issued or distributed to
Holders after the effectiveness of the Mandatory Shelf Registration Statement, or such Additional
Shares were otherwise not included in a prior Registration Statement, then the Company shall as
soon as practicable file an additional shelf registration statement (including the Prospectus,
amendments and supplements to such registration statement or Prospectus, including pre- and
post-effective amendments, all exhibits thereto and all material incorporated by reference or
deemed to be incorporated by reference, if any, in such registration statement, a “Subsequent Shelf
Registration Statement”) covering such Additional Shares on behalf of the Holders thereof in the
same manner, and subject to the same provisions in this Agreement as the Mandatory Shelf
Registration Statement.

     (d) Expenses. The Company shall pay all Registration Expenses in connection with the
registration of the Registrable Shares pursuant to this Agreement. Each Holder participating in a
registration pursuant to this Section 2 shall bear such Holder’s proportionate share (based on the
total number of Registrable Shares sold in such registration) of all discounts and commissions
payable to underwriters or brokers and all transfer taxes in connection with a registration of
Registrable Shares pursuant to this Agreement and any other expense of the Holders not specifically
allocated to the Company pursuant to this Agreement relating to the sale or disposition of such
Holder’s Registrable Shares pursuant to any Registration Statement.

3.     Rule 144 Reporting.

     With a view to making available the benefits of certain rules and regulations of the
Commission that may permit the sale of the Registrable Shares to the public without registration,
the Company agrees to, so long as any Holder owns any Registrable Shares:

     (a) make and keep public information available, as those terms are understood and defined in
Rule 144(c) under the Securities Act;

6

 

     (b) use its commercially reasonable efforts to file with the Commission in a timely manner
all reports and other documents required to be filed by the Company under the Securities Act and
the Exchange Act; and

     (c) furnish to any Holder promptly upon request a written statement by the Company as to its
compliance in all material respects with the reporting requirements of Rule 144 and of the Exchange
Act, a copy of the most recent annual or quarterly report of the Company, and such other reports
and documents of the Company, and take such reasonable further actions consistent with this Section
3, as a Holder may reasonably request in availing itself of any rule or regulation of the
Commission allowing a Holder to sell any such Registrable Shares without registration.

4.     Registration Procedures.

     In connection with the obligations of the Company with respect to any registration pursuant to
this Agreement, the Company shall:

     (a) prepare and file with the Commission, as specified in this Agreement, each Registration
Statement, which Registration Statement shall comply as to form in all material respects with the
requirements of the applicable form and include all financial statements required by the Commission
to be filed therewith, and use its commercially reasonable efforts to cause any Mandatory
Registration Statement to become and remain effective as set forth in Section 2(a)(i) hereof;
provided, however, that the Company shall not be required to cause any Piggyback Registration
Statement to become or remain effective;

     (b) subject to Section 4(i) hereof, (i) prepare and file with the Commission such amendments
and post-effective amendments to each such Registration Statement as may be necessary to keep such
Registration Statement effective for the period described in Section 4(a) hereof, (ii) cause each
Prospectus contained therein to be supplemented by any required Prospectus supplement, and as so
supplemented to be filed pursuant to Rule 424 or any similar rule that may be adopted under the
Securities Act, and (iii) comply in all material respects with the provisions of the Securities Act
with respect to the disposition of all securities covered by each Registration Statement during the
applicable period in accordance with the intended method or methods of distribution by the selling
Holders thereof;

     (c) furnish to the Holders, without charge, as many copies of each Prospectus, including
each preliminary Prospectus, and any amendment or supplement thereto and such other documents as
such Holder may reasonably request, in order to facilitate the public sale or other disposition of
the Registrable Shares; the Company hereby consenting to the use of such Prospectus, including each
preliminary Prospectus, by the Holders, if any, in connection with the offering and sale of the
Registrable Shares covered by any such Prospectus;

     (d) use its commercially reasonable efforts to register or qualify, or obtain exemption from
registration or qualification for, all Registrable Shares by the time the applicable Registration
Statement is declared effective by the Commission under all applicable state securities or “blue
sky” laws of such domestic jurisdictions as any Holder covered by a Registration Statement shall
reasonably request in writing, keep each such registration or qualification or exemption effective
during the period such Registration Statement is required to be kept effective pursuant to Section
4(a) and do any and all other acts and things that may be reasonably necessary or advisable to
enable such Holder to consummate the disposition in each such jurisdiction of such Registrable
Shares owned by such Holder; provided, however, that the Company shall not be required to (i)
qualify generally to do business in any jurisdiction or to register as a broker or dealer in such
jurisdiction where it would not otherwise be required to qualify but for this Section 4(d), (ii)
subject itself to taxation in any such jurisdiction, or (iii) submit to the general service of
process in any such jurisdiction;

     (e) use its commercially reasonable efforts to cause all Registrable Shares covered by such
Registration Statement to be registered and approved by such other domestic governmental agencies
or authorities, if any, as may be necessary to enable the Holders thereof to consummate the
disposition of such Registrable Shares;

7

 

     (f) notify each Holder with Registrable Shares covered by a Registration Statement promptly
and, if requested by any such Holder, confirm such advice in writing (i) when such Registration
Statement has become effective and when any post-effective amendments and supplements thereto
become effective, (ii) of the issuance by the Commission or any state securities authority of any
stop order suspending the effectiveness of such Registration Statement or the initiation of any
proceedings for that purpose, (iii) of any request by the Commission or any other federal or state
governmental authority for amendments or supplements to such Registration Statement or related
Prospectus or for additional information, and (iv) of the happening of any event during the period
such Registration Statement is effective as a result of which such Registration Statement or the
related Prospectus or any document incorporated by reference therein contains any untrue statement
of a material fact or omits to state any material fact required to be stated therein or necessary
to make the statements therein not misleading (which information shall be accompanied by an
instruction to suspend the use of the Registration Statement and the Prospectus until the requisite
changes have been made);

     (g) during the period of time referred to in Section 4(a) above, use its commercially
reasonable efforts to avoid the issuance of, or if issued, to obtain the withdrawal of, any order
enjoining or suspending the use or effectiveness of a Registration Statement or suspending the
qualification (or exemption from qualification) of any of the Registrable Shares for sale in any
jurisdiction, as promptly as practicable;

     (h) upon request, furnish to each requesting Holder with Registrable Shares covered by a
Registration Statement, without charge, at least one conformed copy of such Registration Statement
and any post-effective amendment or supplement thereto (without documents incorporated therein by
reference or exhibits thereto, unless requested);

     (i) except as provided in Section 5, upon the occurrence of any event contemplated by
Section 4(f)(iv), use its commercially reasonable efforts to promptly prepare a supplement or
post-effective amendment to a Registration Statement or the related Prospectus or any document
incorporated therein by reference or file any other required document so that, as thereafter
delivered to the purchasers of the Registrable Shares, such Prospectus will not contain any 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, and, upon request, promptly furnish to each requesting Holder a reasonable
number of copies of each such supplement or post-effective amendment;

     (j) if requested by the representative of the underwriters, if any, or any Holders of
Registrable Shares being sold in connection with an Underwritten Offering, (i) promptly incorporate
in a Prospectus supplement or post-effective amendment such material information as the
representative of the underwriters, if any, or such Holders indicate relates to them or otherwise
reasonably request 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;

     (k) in the case of an Underwritten Offering, use its commercially reasonable efforts to
furnish or caused to be furnished to each Holder of Registrable Shares covered by such Registration
Statement and the underwriters a signed counterpart, addressed to each such Holder and the
underwriters, of: (i) an opinion of counsel for the Company, dated the date of each closing under
the underwriting agreement, reasonably satisfactory to the underwriters; and (ii) a “comfort”
letter, dated the effective date of such Registration Statement and the date of each closing under
the underwriting agreement, signed by the independent public accountants who have certified the
Company’s financial statements included in such Registration Statement, covering substantially the
same matters with respect to such Registration Statement (and the Prospectus included therein) and
with respect to events subsequent to the date of such financial statements, as are customarily
covered in accountants’ letters delivered to underwriters in underwritten public offerings of
securities, and such other financial matters as the underwriters may reasonably request and
customarily obtained by underwriters in underwritten offerings; provided that, in order to be an
addressee of the comfort letter, each Holder may be required to confirm that it is in the category
of persons to whom a comfort letter may be delivered in accordance with applicable accounting
literature;

8

 

     (l) enter into customary agreements (including in the case of an Underwritten Offering, an
underwriting agreement in customary form) and take all other action in connection therewith in
order to expedite or facilitate the distribution of the Registrable Shares included in such
Registration Statement and, in the case of an Underwritten Offering, make representations and
warranties to the underwriters in such form and scope as are customarily made by issuers to
underwriters in underwritten offerings consistent with representations and warranties made by the
Company in public or private offerings and confirm the same to the extent customary if and when
requested;

     (m) in connection with an Underwritten Offering, use its commercially reasonable efforts to
make available for inspection by the representative of any underwriters participating in any
disposition pursuant to a Registration Statement, all financial and other records, pertinent
corporate documents and properties of the Company and cause the respective officers, directors and
employees of the Company to supply all information reasonably requested by any such
representatives, the representative of the underwriters, counsel thereto or accountants in
connection with a Registration Statement; provided, however, that such records, documents or
information that the Company determines, in good faith, to be confidential and notifies such
representatives, representative of the underwriters, counsel thereto or accountants are
confidential shall not be disclosed by the representatives, representative of the underwriters,
counsel thereto or accountants unless (i) the disclosure of such records, documents or information
is necessary to avoid or correct a misstatement or omission in a Registration Statement or
Prospectus, (ii) the release of such records, documents or information is ordered pursuant to a
subpoena or other order from a court of competent jurisdiction, or (iii) such records, documents or
information have been generally made available to the public; provided further, that to the extent
practicable, the foregoing inspection and information gathering shall be coordinated on behalf of
the Holders and the other parties entitled thereto by one counsel designated by and on behalf of
the Holders and the other parties, which counsel the Company determines in good faith is reasonably
acceptable;

     (n) use its commercially reasonable efforts (including, without limitation, seeking to cure
in the Company’s listing or inclusion application any deficiencies cited by the exchange or market)
to list or include all Registrable Shares on any securities exchange or the Nasdaq Stock Market on
which the Common Stock is then listed or included;

     (o) prepare and file in a timely manner all documents and reports required by the Exchange
Act and, to the extent the Company’s obligation to file such reports pursuant to Section 15(d) of
the Exchange Act expires prior to the expiration of the effectiveness period of the Registration
Statement as required by Section 4(a) hereof, the Company shall register the Registrable Shares
under the Exchange Act and shall maintain such registration through the effectiveness period
required by Section 4(a) hereof;

     (p) (i) otherwise use its commercially reasonable efforts to comply in all material respects
with all applicable rules and regulations of the Commission, (ii) make generally available to its
stockholders, as soon as reasonably practicable, earnings statements covering at least 12 months
that satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder, and
(iii) delay filing any Registration Statement or Prospectus or amendment or supplement to such
Registration Statement or Prospectus to which any Holder of Registrable Shares covered by any
Registration Statement shall have reasonably objected on the grounds that such Registration
Statement or Prospectus or amendment or supplement does not comply in all material respects with
the requirements of the Securities Act, such Holder having been furnished with a copy thereof at
least two Business Days prior to the filing thereof, provided that the Company may file such
Registration Statement or Prospectus or amendment or supplement following such time as the Company
shall have made a good faith effort to resolve any such issue with the objecting Holder and shall
have advised the Holder in writing of its reasonable belief that such filing complies in all
material respects with the requirements of the Securities Act;

     (q) cause to be maintained a registrar and transfer agent for all Registrable Shares covered
by any Registration Statement from and after a date not later than the effective date of such
Registration Statement; and

9

 

     (r) in connection with any sale or transfer of the Registrable Shares (whether or not
pursuant to a Registration Statement) that will result in the securities being delivered no longer
constituting Registrable Shares, cooperate with the Holders and the representative of the
underwriters, if any, to facilitate the timely preparation and delivery of certificates
representing the Registrable Shares to be sold, which certificates shall not bear any transfer
restrictive legends (other than as required by the Company’s charter), and to enable such
Registrable Shares to be in such denominations and registered in such names as the representative
of the underwriters, if any, or the Holders may request at least three Business Days prior to any
sale of the Registrable Shares.

     The Company may require the Holders to furnish to the Company such information regarding the
proposed distribution by such Holder as the Company may from time to time reasonably request in
writing or as shall be required to effect the registration of the Registrable Shares, and no Holder
shall be entitled to be named as a selling stockholder in any Registration Statement and no Holder
shall be entitled to use the Prospectus forming a part thereof if such Holder does not provide such
information to the Company. Each Holder further agrees to furnish promptly to the Company in
writing all information required from time to time to make the information previously furnished by
such Holder not misleading.

     Each Holder agrees that, upon receipt of any notice from the Company of the happening of any
event of the kind described in Section 4(f)(ii), 4(f)(iii) or 4(f)(iv) hereof, such Holder will
immediately discontinue disposition of Registrable Shares pursuant to a Registration Statement
until (i) any such stop order is vacated or (ii) if an event described in Section 4(f)(iii) or
4(f)(iv) occurs, such Holder’s receipt of the copies of the supplemented or amended Prospectus. If
so directed by the Company, such Holder will deliver to the Company (at the reasonable expense of
the Company) all copies in its possession, other than permanent file copies then in such Holder’s
possession, of the Prospectus covering such Registrable Shares current at the time of receipt of
such notice.

5.     Suspension Period.

     (a) Subject to the provisions of this Section 5 and a good faith determination by a majority
of the Board of Directors of the Company that it is in the best interests of the Company to suspend
the use of any Mandatory Registration Statement, following the effectiveness of such Mandatory
Registration Statement (and the filings with any international, federal or state securities
commissions), the Company, by written notice to each of the Holders, may direct the Holders to
suspend sales of the Registrable Shares pursuant to such Mandatory Registration Statement for such
times as the Company reasonably may determine is necessary and advisable (but in no event for more
than 45 days in any 90-day period or more than 60 days in any 12-month period), if any of the
following events shall occur: pending discussions relating to, or the consummation of, a
transaction or the occurrence of an event (x) that would require additional disclosure of material
information by the Company in the Mandatory Registration Statement (or such filings) and which has
not been so disclosed, (y) as to which the Company has a bona fide business purpose for preserving
confidentiality, or (z) that renders the Company unable to comply with Commission requirements, in
each case under circumstances that would make it impractical or inadvisable to promptly amend or
supplement the Mandatory Registration Statement on a post-effective basis, as applicable. Upon the
earlier to occur of (i) the Company delivering to the Holders an End of Suspension Notice, as
hereinafter defined, or (ii) the end of the maximum permissible suspension period, the Company
shall use its commercially reasonable efforts to promptly amend or supplement the Mandatory
Registration Statement on a post-effective basis, if necessary, or to take such action as is
necessary to make resumed use of the Mandatory Registration Statement compatible with the Company’s
best interests, as applicable, so as to permit the Holders to resume sales of the Registrable
Shares as soon as possible. The Company shall have the right to suspend the effectiveness and use
of any Piggyback Registration Statement at any time for an unlimited amount of time.

     (b) In the case of an event that causes the Company to suspend the use of a Registration
Statement (a “Suspension Event”), the Company shall give written notice (a “Suspension Notice”) to
the Holders to suspend sales of the Registrable Shares, and such notice shall state that such
suspension shall continue only for so long as the Suspension Event or its effect is continuing and
the Company is taking all reasonable steps to terminate suspension of the effectiveness of the
Registration Statement as promptly as possible.

10

 

The Holders shall not effect any sales of the Registrable Shares pursuant to such Registration
Statement (or such filings) at any time after it has received a Suspension Notice from the Company
and prior to receipt of an End of Suspension Notice (as defined below). If so directed by the
Company, each Holder will deliver to the Company (at the expense of the Company) all copies other
than permanent file copies then in such Holder’s possession of the Prospectus covering the
Registrable Shares at the time of receipt of the Suspension Notice. The Holders may recommence
effecting sales of the Registrable Shares pursuant to the Registration Statement (or such filings)
following further notice to such effect (an “End of Suspension Notice”) from the Company, which End
of Suspension Notice shall be given by the Company to the Holders in the manner described above
promptly following the conclusion of any Suspension Event and its effect.

     (c) Notwithstanding any provision herein to the contrary, if the Company shall give a
Suspension Notice pursuant to this Section 5 with respect to any Mandatory Registration Statement,
the Company agrees that it shall extend the period of time during which such Mandatory Registration
Statement shall be maintained effective pursuant to this Agreement by the number of days during the
period from the date of the giving of the Suspension Notice to and including the date when Holders
shall have received the End of Suspension Notice and copies of the supplemented or amended
Prospectus necessary to resume sales; provided such period of time shall not be extended beyond the
date that Shares or Additional Shares are not Registrable Shares.

6.     Indemnification and Contribution.

     (a) The Company agrees to indemnify and hold harmless (i) each Holder, (ii) each Person, if
any, who controls (within the meaning of Section 15 of the Securities Act or Section 20(a) of the
Exchange Act) any of the foregoing (a “Controlling Person”), and (iii) the respective officers,
directors, partners, members, employees, representatives and agents of each Holder or any
Controlling Person (any Person referred to in clause (i), (ii) or (iii) may hereinafter be referred
to as a “Purchaser Indemnitee”) from and against any and all losses, claims, damages, judgments,
actions, reasonable out-of-pocket expenses, and other liabilities (the “Liabilities”), including,
without limitation and as incurred, reimbursement of all reasonable costs of investigating,
preparing, pursuing or defending any claim or action, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, including the reasonable fees and expenses of
outside counsel to any Purchaser Indemnitee, joint or several, directly or indirectly related to,
based upon, arising out of or in connection with any untrue statement or alleged untrue statement
of a material fact contained in any Registration Statement or Prospectus (as amended or
supplemented if the Company shall have furnished to such Purchaser Indemnitee any amendments or
supplements thereto), or any preliminary Prospectus or any other document prepared by the Company
used to sell the Registrable Shares, or 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 a Prospectus, in light of the circumstances under which they were made), not misleading,
except insofar as such Liabilities arise out of or are based upon (i) any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in conformity with
information relating to any Purchaser Indemnitee furnished to the Company or any underwriter in
writing by such Purchaser Indemnitee expressly for use therein, (ii) any untrue statement contained
in or omission from a preliminary Prospectus if a copy of the Prospectus (as then amended or
supplemented, if the Company shall have furnished to or on behalf of the Holder participating in
the distribution relating to the relevant Registration Statement any amendments or supplements
thereto) was not sent or given by or on behalf of such Holder to the Person asserting any such
Liabilities who purchased Shares, if such Prospectus (or Prospectus as amended or supplemented) is
required by law to be sent or given at or prior to the written confirmation of the sale of such
Shares to such Person and the untrue statement contained in or omission from such preliminary
Prospectus was corrected in the Prospectus (or the Prospectus as amended or supplemented), or (iii)
any sales by any Holder after the delivery by the Company to such Holder of a Suspension Notice and
before the delivery by the Company of an End of Suspension Notice. The indemnity provided for
herein shall remain in full force and effect regardless of any investigation made by or on behalf
of any Purchaser Indemnitee.

     (b) In connection with any Registration Statement in which a Holder is participating, such
Holder agrees, severally and not jointly, to indemnify and hold harmless the Company, each Person
who controls

11

 

the Company within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange
Act, and the respective officers, directors, partners, members, representatives, employees and
agents of such Person or Controlling Person to the same extent as the foregoing indemnity from the
Company to each Purchaser Indemnitee, but only with reference to (i) untrue statements or omissions
or alleged untrue statements or omissions made in reliance upon and in strict conformity with
information relating to such Holder furnished to the Company in writing by such Holder expressly
for use in any Registration Statement or Prospectus, any amendment or supplement thereto, or any
preliminary Prospectus and (ii) any sales by any Holder after the delivery by the Company to such
Holder of a Suspension Notice and before the delivery by the Company of an End of Suspension
Notice. The liability of any Holder pursuant to clause (i) of the immediately preceding sentence
shall in no event exceed the net proceeds received by such Holder from sales of Registrable Shares
giving rise to such obligations. If the Holder elects to include Registrable Shares in an
Underwritten Offering, the Holder shall be required to agree to such customary indemnification
provisions as may reasonably be required by the underwriter in connection with such Underwritten
Offering.

     (c) If any suit, action, proceeding (including any governmental or regulatory
investigation), claim or demand shall be brought or asserted against any Person in respect of which
indemnity may be sought pursuant to Section 6(a) or 6(b), such Person (the “Indemnified Party”),
shall promptly notify the Person against whom such indemnity may be sought (the “Indemnifying
Party”), in writing of the commencement thereof (but the failure to so notify an Indemnifying Party
shall not relieve it from any liability which it may have under this Section 6, except to the
extent the Indemnifying Party is materially prejudiced by the failure to give notice), and the
Indemnifying Party, upon request of the Indemnified Party, shall retain counsel reasonably
satisfactory to the Indemnified Party to represent the Indemnified Party and any others the
Indemnifying Party may reasonably designate in such proceeding and shall assume the defense of such
proceeding and pay the fees and expenses actually incurred by such counsel related to such
proceeding. Notwithstanding the foregoing, in any such proceeding, any Indemnified Party shall have
the right to retain its own counsel, but the fees and expenses of such counsel shall be at the
expense of such Indemnified Party, unless (i) the Indemnifying Party and the Indemnified Party
shall have mutually agreed in writing to the contrary, (ii) the Indemnifying Party failed within a
reasonable time after notice of commencement of the action to assume the defense and employ counsel
reasonably satisfactory to the Indemnified Party, (iii) the Indemnifying Party and its counsel do
not pursue in a reasonable manner the defense of such action or (iv) the named parties to any such
action (including any impleaded parties) include both such Indemnified Party and the Indemnifying
Party, or any affiliate of the Indemnifying Party, and such Indemnified Party shall have been
reasonably advised by counsel that, either (x) there may be one or more legal defenses available to
it which are different from or additional to those available to the Indemnifying Party or such
affiliate of the Indemnifying Party or (y) a conflict may exist between such Indemnified Party and
the Indemnifying Party or such affiliate of the Indemnifying Party, in which event the Indemnifying
Party shall not have the right to assume or direct the defense of such action on behalf of such
Indemnified Party, it being understood, however, that the Indemnifying Party shall not, in
connection with any one such action or separate but substantially similar or related actions
arising out of the same general allegations or circumstances, be liable for the fees and expenses
of more than one separate firm of attorneys (in addition to any local counsel) for all such
Indemnified Parties, which firm shall be designated in writing by those Indemnified Parties who
sold a majority of the Registrable Shares sold by all such Indemnified Parties and any such
separate firm for the Company, the directors, the officers and such control Persons of the Company
as shall be designated in writing by the Company. The Indemnifying Party shall not be liable for
any settlement of any proceeding effected without its written consent, which consent shall not be
unreasonably withheld or delayed, but if settled with such consent or if there be a final judgment
for the plaintiff, the Indemnifying Party agrees to indemnify any Indemnified Party from and
against any loss or liability by reason of such settlement or judgment to the extent provided in
this Section 6 without reference to this sentence. 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) If the indemnification provided for in Section 6(a) or 6(b) is for any reason held to be
unavailable

12

 

to an Indemnified Party in respect of any Liabilities referred to therein (other than by reason of
the exceptions provided therein) or is insufficient to hold harmless a party indemnified
thereunder, then each Indemnifying Party under such sections, in lieu of indemnifying such
Indemnified Party thereunder, shall contribute to the amount paid or payable by such Indemnified
Party as a result of such Liabilities (i) in such proportion as is appropriate to reflect the
relative benefits of the Indemnified Party on the one hand and the Indemnifying Parties on the
other in connection with the statements or omissions that resulted in such Liabilities, or (ii) if
the allocation provided by clause (i) above is not permitted by applicable law, in such proportion
as is appropriate to reflect not only the relative benefits referred to in clause (i) above but
also the relative fault of the Indemnifying Parties and the Indemnified Party, as well as any other
relevant equitable considerations. The relative fault of the Company, on the one hand, and any
Purchaser Indemnitees, on the other, 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 Company or by such
Purchaser Indemnitees and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.

     (e) The parties agree that it would not be just and equitable if contribution pursuant to
this Section 6 were determined by pro rata allocation (even if such Indemnified Parties were
treated as one entity for such purpose), or by any other method of allocation that does not take
account of the equitable considerations referred to in Section 6(d). The amount paid or payable by
an Indemnified Party as a result of any Liabilities referred to in Section 6(d) shall be deemed to
include, subject to the limitations set forth above, any reasonable legal or other expenses
actually incurred by such Indemnified Party in connection with investigating or defending any such
action or claim. For purposes of this Section 6, each Person, if any, who controls (within the
meaning of Section 15 of the Act or Section 20(a) of the Exchange Act) a Holder shall have the same
rights to contribution as such Holder, as the case may be, and each Person, if any, who controls
(within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act) the Company, and
each officer, director, partner, member, employee, representative, agent or manager of the Company
shall have the same rights to contribution as the Company. Any party entitled to contribution will,
promptly after receipt of notice of commencement of any action, suit or proceeding against such
party in respect of which a claim for contribution may be made against another party or parties,
notify each 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 6 or otherwise, except to the extent
that any party is materially prejudiced by the failure to give notice. 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.

     (f) The indemnity and contribution agreements contained in this Section 6 will be in
addition to any liability which the indemnifying parties may otherwise have to the indemnified
parties referred to above. Each Purchaser Indemnitee’s obligations to contribute pursuant to this
Section 6 are not joint but are several in the proportion that the number of Shares sold by such
Purchaser Indemnitee bears to the number of Shares sold by all Purchaser Indemnities.

7.     Termination of the Company’s Obligations.

     The Company shall have no further obligations pursuant to this Agreement at such time as no
Registrable Shares are outstanding, provided, however, that the Company’s obligations under
Sections 3, 6 and 8 of this Agreement shall remain in full force and effect following such time.

8.     Miscellaneous.

     (a) Amendments and Waivers. This Agreement may not be amended, modified or supplemented,
and waivers or consents to or departures from the provisions hereof may not be given, without the
written consent of the Company and Holders beneficially owning a majority of the then outstanding
Registrable Shares; provided, however, that for purposes of this Agreement, Registrable Shares
owned, directly or indirectly, by an Affiliate of the Company shall not be deemed to be
outstanding. Notwithstanding the foregoing, a waiver or consent to or departure from the provisions
hereof with respect to a matter that

13

 

relates exclusively to the rights of a Holder 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 may be given by such Holder; provided that the provisions of this
sentence may not be amended, modified or supplemented except in accordance with the provisions of
the immediately preceding sentence.

     (b) Notices. All notices and other communications, provided for or permitted hereunder
shall be made in writing and delivered by facsimile (with receipt confirmed), overnight courier or
registered or certified mail, return receipt requested, or by telegram, addressed as follows:

     (i) if to a Holder, at the most current address given by the transfer agent and
registrar of the Shares to the Company;

     (ii) if to the Company, at the offices of the Company at 1100 Louisiana Street,
Suite 4400, Houston, Texas 77002, Attention: Stephen W. Herod, (facsimile 832-204-2877);
with copies (which shall not constitute notice) to: (A) Hinkle Elkouri Law Firm L.L.C.,
2000 Epic Center, 301 North Main Street, Wichita, Kansas 67202, Attention: David S.
Elkouri, Esq. (Fax: (316) 264-1518) and (B) Thompson & Knight LLP, 333 Clay Street, Suite
3300, Houston, Texas 77002, Attention: Dallas Parker, Esq. (facsimile 832-397-8110); and

     (iii) if to the Purchasers, to them at the address set forth on Exhibit A hereto, or
such other address as each Purchaser may specify in writing to the Company.

     (c) Successors and Assigns; Third Party Beneficiaries. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each of the parties hereto and shall
inure to the benefit of each Holder. The Company agrees that the Holders shall be third party
beneficiaries to the agreements made hereunder by the Purchasers and the Company, and each Holder
shall have the right to enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights hereunder; provided, however, that such Holder
fulfills all of its obligations hereunder.

     (d) 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.

     (e) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF DELAWARE, AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE
OF DELAWARE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT OF THE
DISTRICT OF DELAWARE OR THE DELAWARE STATE COURT SYSTEM, INCLUDING, BUT NOT LIMTED TO, THE DELAWARE
COURT OF CHANCERY, IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT, AND IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH OF THE PARTIES HERETO IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, ANY OBJECTION THAT IT
MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT
IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT
HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

     (f) Severability. If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in
full force and effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their commercially reasonable efforts to find and employ an alternative means to
achieve the same or substantially the same result as that

14

 

contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared
to be the intention of the parties hereto 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.

     (g) Entire Agreement. This Agreement, together with the Stock Purchase Agreement, is
intended by the parties hereto as a final expression of their agreement, and is intended to be a
complete and exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein and therein.

     (h) Registrable Shares Held by the Company or its Affiliates. Whenever the consent or
approval of Holders of a specified percentage of Registrable Shares is required hereunder,
Registrable Shares held by the Company or its Affiliates shall not be counted in determining
whether such consent or approval was given by the Holders of such required percentage.

     (i) Survival. This Agreement is intended to survive the consummation of the transactions
contemplated by the Stock Purchase Agreement. The indemnification and contribution obligations
under Section 6 of this Agreement shall survive the termination of the Company’s obligations under
Section 2 of this Agreement.

     (j) Headings. The headings in this Agreement are for convenience of reference only and
shall not limit or otherwise affect the provisions of this Agreement. All references made in this
Agreement to “Section” refer to such Section of this Agreement, unless expressly stated otherwise.

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

“COMPANY”

PETROHAWK ENERGY CORPORATION

By: /s/ Floyd C. Wilson
                                        

Name:
Floyd C. Wilson

Title: President and Chief Executive Officer

“PURCHASERS”

PROVIDENT PREMIER MASTER FUND LTD.

By: /s/ Sam
Forness                                               

Name:
Sam Forness

Title: Director, Inv Ops

15

 

EXHIBIT A

PURCHASERS

Provident Premier Master Fund Ltd.

c/o Provident Advisors

294 Grove Lane E

Wayzata, MN 53391

Attn: Patrick Schwinghammer

Fax: (952) 345-5230

16

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