Document:

exv10w1

Exhibit 10.1

AMENDMENT NO. 2 TO GUARANTEE

          This Amendment No. 2 (this “Amendment No. 2”), dated as of May 17, 2011, to that certain
Guarantee dated as of January 18, 2011 (the “Original Guarantee”), as amended by Amendment No. 1
dated as of April 3, 2011 (“Amendment No. 1,” and collectively with the Original Guarantee, the
“Guarantee”), is entered into by Vector Capital IV, L.P. (“VCIV”) and Vector Capital III, L.P.
(“VCIII,” and each of VCIII and VCIV, a “Guarantor” and collectively VCIII and VCIV, the
“Guarantors”) in favor of RAE Systems Inc., a Delaware corporation (the “Company”). Capitalized
terms used herein and not otherwise defined shall have the respective meanings assigned to such
terms in the Merger Agreement (as defined below).

RECITAL

     Ray Holding Corporation, a Delaware corporation (“Parent”), Ray Merger Sub Corporation, a
Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”), and the Company have
entered into that certain Agreement and Plan of Merger, dated as of January 18, 2011 (as amended by
Amendment No. 1 thereto dated as of April 3, 2011, and as may be further amended, modified or
supplemented from time to time, the “Merger Agreement”), and it was a requirement of the Merger
Agreement that Parent deliver this Guarantee to the Company concurrently with the execution and
delivery thereof.

     On May 15, 2011, Parent offered to amend the Merger Agreement on the terms set forth in an
Amendment No. 2 to the Merger Agreement to provide for, among other things, an increase in the
Merger Consideration payable.

     The parties to this Amendment No. 2, intending to be legally bound, agree as follows:

     1. Cap. Section 1(b) of the Guarantee is amended by replacing, in the definition
of
Cap set forth therein, the reference to “$88,780,000” with “$95,210,000 minus an amount equal to
(x) the Transferable Shares times (y) the Merger Consideration.”

     2. 19.9% Issuance. The Guarantee is hereby amended to add a new Section 3(c) as set forth
below:

     (c) Each Guarantor covenants and agrees that it will not, and it will cause its Affiliates
not to, commence any Legal Proceeding challenging a 19.9% Issuance in connection with a Superior
Offer.

     3. Guarantee References. The parties hereto hereby agree that all references to
the
“Guarantee” set forth in the Guarantee shall be deemed to be references to the Guarantee as
amended by this Amendment No. 2.

     4. Full
Force and Effect. Except as expressly amended or modified hereby, the
Guarantee shall remain in full force and effect without any amendment or other modification
thereto.

     5. Counterparts. This Amendment No. 2 may be executed in several counterparts, each of which
shall be deemed an original and all of which shall constitute one and the same

 

 

instrument. The exchange of a fully executed Amendment No. 2 (in counterparts or otherwise) by
facsimile shall be sufficient to bind the parties to the terms and conditions of this Amendment No.
2.

[Remainder of Page Intentionally Left Blank]

 

 

          IN
WITNESS WHEREOF, the undersigned have caused this Amendment No. 2 to be duly executed and
delivered as of the date first written above.

	 	 	 	 	 
	 	Vector Capital IV, L.P.

 	 
	 	By:  	Vector Capital Partners IV, L.P., its general partner
 	 
	 	 	 
	 	By:  	Vector Capital, L.L.C., its general partner
 	 
	 	 	 
	 	By:  	/s/ Alexander R. Slusky
 	 
	 	 	Name:  	Alexander R. Slusky 	 
	 	 	Title:  	Managing Member 	 
	 
	 	Vector Capital III, L.P.

 	 
	 	By:  	Vector Capital Partners III, L.P., its general partner
 	 
	 	 	 
	 	By:  	Vector Capital, L.L.C., its general partner
 	 
	 	 	 
	 	By:  	/s/ Alexander R. Slusky
 	 
	 	 	Name:  	Alexander R. Slusky 	 
	 	 	Title:  	Managing Member 	 
	 

Signature Page to Amendment No. 2 to Guarantee

 

 

	 	 	 	 	 
	 	RAE Systems Inc.

 	 
	 	By:  	/s/
Randall Gausman	 
	 	 	Name:  	Randall Gausman 	 
	 	 	Title:  	CFO 	 
	 

Signature Page to Amendment No. 2 to Guaranteeexv10w2

Exhibit 10.2

CONSENT AND AGREEMENT

     THIS CONSENT AND AGREEMENT (“Agreement”) is entered into as of May 17, 2011, by and between
Ray Holding Corporation, a Delaware corporation (“Parent”) and __________
(“Stockholder”).

RECITALS

     A. Parent and Stockholder are parties to that certain Voting Agreement, entered into as of
January 18, 2011 (the “Voting Agreement”).

     B. Concurrently herewith, Parent is entering into Amendment No. 2 (“Amendment No. 2”) to that
certain Agreement and Plan of Merger by and among Parent, Ray Merger Sub Corporation, a Delaware
corporation and a wholly owned subsidiary of Parent, and RAE Systems, Inc., a Delaware corporation
(the “Company”), dated as of January 18, 2011, as amended as of April 3, 2011.

     C. In order to induce the Company to enter into Amendment No. 2, Parent and Stockholder have
agreed to terminate the Voting Agreement.

AGREEMENT

     The parties to this Agreement, intending to be legally bound, agree as follows:

     1. Notwithstanding that Section 7 of the Voting Agreement does not provide for termination of
the Voting Agreement by mutual consent, Parent and Stockholder hereby mutually consent to the
termination of the Voting Agreement, and agree that from and after the date hereof, neither Parent
nor Stockholder shall have any rights or obligations under the Voting Agreement.

     2. Stockholder hereby revokes the Proxy granted to Parent pursuant to Section 3.2 and Exhibit
A of the Voting Agreement, and Parent hereby consents to such revocation.

     3. This Agreement shall be construed in accordance with, and governed in all respects by, the
laws of the State of Delaware (without giving effect to principles of conflicts of laws). Any
legal action or other legal proceeding relating to this Agreement or the enforcement of any
provision of this Agreement may be brought or otherwise commenced in any state or federal court
located in the State of Delaware. Each of Parent and Stockholder: (a) expressly and irrevocably
consents and submits to the jurisdiction of each state and federal court located in the State of
Delaware in connection with any such legal proceeding; (b) agrees that service of any process,
summons, notice or document by U.S. mail addressed to him, her or it at the address set forth on
the signature page hereof shall constitute effective service of such process, summons, notice or
document for purposes of any such legal proceeding; (c) agrees that each state and federal court
located in the State of Delaware shall be deemed to be a convenient forum; and (d)

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agrees not to
assert (by way of motion, as a defense or otherwise), in any such legal proceeding commenced in any
state or federal court located in the State of Delaware, any claim that such party is not subject
personally to the jurisdiction of such court, that such legal proceeding has been brought in an
inconvenient forum, that the venue of such proceeding is improper or that this Agreement or the
subject matter of this Agreement may not be enforced in or by such court. EACH OF PARENT AND
STOCKHOLDER IRREVOCABLY WAIVES THE RIGHT TO A JURY TRIAL IN CONNECTION WITH ANY LEGAL PROCEEDING
RELATING TO THIS AGREEMENT OR THE ENFORCEMENT OF ANY PROVISION OF THIS AGREEMENT.

     4. This Agreement may be executed in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together constitute one and the
same instrument.

[remainder of page intentionally left blank]

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In Witness Whereof, Parent and Stockholder have caused this Agreement to be
executed as of the date first written above.

	 	 	 	 	 
	 	Ray Holding Corporation

 	 
	 	By:  	 	 
	 	 	Name:  	David Baylor 	 
	 	 	Title:  	President 	 
	 
	 	Stockholder

 	 
	 	
 	 
	 	 	 
	 	 	 
	 

[Consent and Agreement Signature Page]Exhibit 10.1

Exhibit 10.1

[Execution Copy]

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (this “Agreement”) is made as of May 12, 2011, by
and among Ventas, Inc., a Delaware corporation (the “Company”), and Prometheus Senior
Quarters LLC, a Delaware limited liability company (“Prometheus”), Lazard Senior Housing
Partners LP, a Delaware limited partnership (“Senior Housing LP”), and LSHP Coinvestment
Partnership I LP, a Delaware limited partnership (“Coinvestment LP” and together with
Prometheus and Senior Housing LP, the “Principal Stockholders”).

WITNESSETH:

WHEREAS, the Company and the Principal Stockholders are parties to the Merger Agreement (as
hereinafter defined); and

WHEREAS, the Company shall issue shares of its Common Stock to the Principal Stockholders in
satisfaction of a portion of the consideration owing pursuant to the Merger Agreement (such shares,
the “Shares”) and has agreed to grant the Principal Stockholders registration rights with
respect to the Shares.

NOW, THEREFORE, in consideration of the mutual covenants herein contained and other valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto
hereby agree as follows:

1. Definitions. Capitalized terms used herein without definition shall have the
respective meanings set forth in the Merger Agreement. As used in this Agreement, the following
capitalized terms shall have the following meanings:

“Act” means the Securities Act of 1933, as amended, and the rules and regulations of
the SEC promulgated thereunder.

“Affiliate” has the meaning set forth in Rule 12b-2 of the General Rules and
Regulations under the Exchange Act.

“Anti-Dilution Adjustments” means an adjustment to a number of shares of Common Stock
in the event the Company declares or pays, or experiences, a stock dividend (payable in shares of
Common Stock, or securities convertible into or exchangeable for shares of Common Stock), stock
split, recapitalization, reclassification, recombination, or like transaction, in
accordance with customary anti-dilution principles, as determined in the good-faith judgment
of the Board of Directors of the Company.

“Closing Date” has the meaning set forth in the Merger Agreement.

 

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“Coinvestment LP” has the meaning set forth in the preamble.

“Common Stock” means the common stock, par value of $0.25, of the Company, as it
exists on the date of this Agreement and any other shares of capital stock or other securities of
the Company into which such Common Stock may be reclassified or changed.

“Company Notice” has the meaning set forth in Section 2(b).

“Demand Notice” has the meaning set forth in Section 2(b).

“Demand Period” means the period commencing on the 30th calendar day
following the Closing Date and ending on the date no Registrable Securities remain outstanding.

“Demand Registration” has the meaning set forth in Section 2(b) hereof.

“Demand Registration Statement” means a Registration Statement filed or to be filed
pursuant to a written Demand Notice pursuant to Section 2.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the SEC promulgated thereunder.

“Filing Date” has the meaning set forth in Section 2(a)(i) hereof.

“FINRA” shall mean the Financial Industry Regulatory Authority.

“Losses” has the meaning set forth in Section 5(d) hereof.

“Management Holdco” means Atria Senior Living, Inc.

“Merger Agreement” means the Merger Agreement, dated as of October 21, 2010, by and
among Ventas SL I, LLC, Ventas SL II, LLC, Ventas SL III, LLC, Atria Holdings LLC, Senior Housing
LP, Coinvestment LP, Atria Senior Living Group, Inc., One Lantern Senior Living Inc, LSHP
Coinvestment I Inc. and the Company, as amended.

“Person” means any natural person, partnership, limited liability company, corporation
or other entity.

“Pre-Approved List” has the meaning set forth in Section 2(c) hereof.

“Principal Stockholders” has the meaning set forth in the preamble.

“Prometheus” has the meaning set forth in the preamble.

“Prospectus” means the prospectus included in a Registration Statement (including,
without limitation, a prospectus that discloses information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A under the Act), as
amended or supplemented by any prospectus supplement, and all amendments and supplements to such
prospectus, including all documents incorporated or deemed to be incorporated by reference in such
prospectus.

 

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“Register,” “Registered” and “Registration” mean a registration
effected by preparing and (i) filing a Registration Statement in compliance with the Act (and any
post-effective amendments filed or required to be filed) and the declaration or ordering of
effectiveness of such Registration Statement, or (ii) filing a Prospectus in respect of an
appropriate effective Registration Statement.

“Registrable Securities” means all of the Shares (as equitably adjusted for any stock
dividend, stock split, recapitalization, reclassification, recombination or the like which occurs
from and after the date hereof) acquired pursuant to the Merger Agreement, but excluding (a)
Shares, if any, that have been transferred pursuant to the Shelf Registration Statement or another
Registration Statement covering such Registrable Security which has been filed with the SEC
pursuant to the Act, in either case after such Registration Statement has become effective and
while such Registration Statement is effective under the Act, (b) Shares held by Stockholders who
are not Affiliates of the Company that are eligible for sale pursuant to Rule 144(b)(1)(i) under
the Act, (c) Shares held by a Stockholder who is an Affiliate of the Company if all Shares of such
Stockholder are eligible for sale pursuant to Rule 144 under the Act and could be sold in one
transaction in accordance with the volume limitations contained in Rule 144(e)(1)(i) under the Act,
and (d) Shares which have been transferred without a transfer of the transferring Stockholders’
rights under this Agreement pursuant to Section 6(c) hereof.

“Registration Statement” means a registration statement, including the Shelf
Registration Statement and any Demand Registration Statement, filed under the Act which covers any
of the Registrable Securities pursuant to the provisions of this Agreement, and all amendments and
supplements to such Registration Statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto, all required information deemed
to be a part thereof at the time of effectiveness pursuant to Rule 430B under the Act, and all
documents incorporated or deemed to be incorporated by reference therein.

“SEC” means the United States Securities and Exchange Commission.

“Senior Housing LP” has the meaning set forth in the preamble.

“Shares” has the meaning set forth in the recitals.

“Shelf Registration” means a Registration effected pursuant to Section 2(a)
hereof.

“Shelf Registration Period” has the meaning set forth in Section 2(a)(ii)
hereof.

“Shelf Registration Statement” means a Registration Statement filed pursuant to the
provisions of Section 2(a) hereof on Form S-3 or on another appropriate form for an
offering to
be made on a delayed or continuous basis pursuant to Rule 415 under the Act, or any similar
rule that may be adopted by the SEC.

“Stockholder” means each of the Principal Stockholders, and each permitted transferee
of Registrable Securities.

 

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“Stockholder Representative” means an entity that the Principal Stockholders, acting
together, have designated to act as their representative under this Agreement from time to time.

“Suspension Period” has the meaning set forth in Section 2(e)(ii) hereof.

“Underwritten Offering” has the meaning set forth in Section 2(c) hereof.

All references in this Agreement to financial statements and schedules and other information
which is “contained,” “included,” or “stated” in a Registration Statement, any preliminary
Prospectus or Prospectus (and all other references of like import) shall be deemed to mean and
include all such financial statements and schedules and other information which is incorporated or
deemed to be incorporated by reference in such Registration Statement, preliminary Prospectus or
Prospectus, as the case may be; and all references in this Agreement to amendments or supplements
to a Registration Statement, any preliminary Prospectus or Prospectus shall be deemed to mean and
include any document filed with the SEC under the Exchange Act, after the date of such Registration
Statement, preliminary Prospectus or Prospectus, as the case may be, which is incorporated or
deemed to be incorporated by reference therein.

2. Registration Rights.

(a) Shelf Registration.

(i) The Company shall prepare and file with the SEC within seven (7) calendar days
following the Closing Date (provided that the Company’s obligations to file the
Shelf Registration Statement shall be suspended only for so long as the Principal
Stockholders and the Principal Stockholders’ accountants have not timely provided such
information, if any, required by applicable law to be provided by them for inclusion or
incorporation by reference in the Shelf Registration Statement) (the date of such filing,
the “Filing Date”) a Shelf Registration Statement with respect to resales of all
Registrable Securities by the Stockholders in accordance with the methods of distribution
specified by the Stockholders and thereafter, unless such Shelf Registration Statement is
automatically effective upon filing, shall use its commercially reasonable efforts to cause
such Shelf Registration Statement to be declared effective under the Act as promptly as
reasonably practicable following the Filing Date.

(ii) The Company shall use its commercially reasonable efforts to keep the Shelf
Registration Statement continuously effective under the Act in order to permit the
Prospectus forming a part thereof to be lawfully delivered, subject to Section 2(e),
by the Stockholders as the holders of Registrable Securities for so long as there are any
Registrable Securities outstanding (the “Shelf Registration Period”). During the
Shelf Registration Period, the Company will, (x) subject to Section 2(e), prepare
and file with
the SEC such amendments and post-effective amendments to the Shelf Registration
Statement as may be required by the Act or the Exchange Act to keep the Shelf Registration
Statement continuously effective for the Shelf Registration Period, (y) subject to
Section 2(e), cause the related Prospectus to be supplemented by any required
supplement, and as so supplemented to be filed pursuant to Rule 424 under the Act (or any
similar provisions then in force under the Act), and (z) cause the Shelf Registration
Statement and the Prospectus forming a part thereof to comply in all material respects with
the applicable requirements of the Act.

 

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(b) Demand Registration. If at any time during the Demand Period the Company shall
receive a written demand from the Stockholder Representative, if any, or from any Principal
Stockholder (if no Stockholder Representative has been designated) (such demand, a “Demand
Notice”) that the Company file a registration statement under the Act with regard to
Registrable Securities, then the Company shall, so long as there is no effective Shelf Registration
Statement with respect to such Registrable Securities, (i) within ten (10) days of the receipt
thereof, give written notice of such request (a “Company Notice”) to all Stockholders, and
(ii) file (as expeditiously as practicable, and in any event within thirty (30) days of the receipt
of such request) a Registration Statement with respect to those Registrable Securities and, unless
such Registration Statement is automatically effective upon filing, use commercially reasonable
efforts to have the Registration Statement declared effective within thirty (30) days of the
mailing of the Company Notice with respect to, subject to the limitations of Section 2(c)
below, all Registrable Securities that Stockholders have requested to be registered (each, a
“Demand Registration”). In the event any Principal Stockholder requests inclusion in a
Registration pursuant to this Section 2(b) in connection with a distribution of Registrable
Securities to its direct or indirect members, partners or other equity holders, the Registration
shall provide for the resale by such members, partners or equity holders if requested by such
Stockholder.

(c) Underwritten and Shelf Offerings. If any Stockholder intends to distribute its
Registrable Securities covered by a request of the Stockholder Representative, if any, or any
Principal Stockholder (if no Stockholder Representative shall have been designated) by means of an
underwritten offering (each, an “Underwritten Offering”), the Stockholder Representative,
if any, or the Principal Stockholders (if no Stockholder Representative has been designated) shall
so advise the Company as a part of a notice to effect an offering pursuant to a Shelf Registration
Statement (a “Shelf Offering”) or Demand Registration Statement and the Company shall
include such information in a written notice to all Stockholders within ten (10) days of the
receipt thereof. If other Stockholders, to the extent they have any registration rights under
Section 2, request inclusion of their Registrable Securities in the underwriting, or the
Company notifies the initiating Stockholder of a request by the Company to include any shares of
Common Stock in the underwriting (which the Company may not do with respect to (i) the initial
Underwritten Offering to be completed by the Stockholders, (ii) any Underwritten Offerings to be
conducted pursuant to block trades with a broker-dealer, or (iii) any at-the-market offering), the
initiating Stockholder shall offer to include such securities of such other Stockholders and of the
Company in the underwriting but may condition such offer on their acceptance of the further
applicable provisions of this Section 2. The lead managing underwriter(s) for any
Underwritten Offering pursuant to this Section 2(c) shall be selected by a majority in
interest of the Stockholders participating in the Offering, provided that (i) for any fully
marketed Underwritten Offering, such Stockholders must select at least one joint lead bookrunner
from among a list of
three (3) underwriters identified in writing by the Company (the “Pre-Approved List”)
and (ii) for any Underwritten Offerings to be conducted pursuant to block trades with a
broker-dealer, one broker-dealer from the Pre-Approved List shall be allowed to participate as a
bidder on the block trade. The Company shall provide the Pre-Approved List to the Principal
Stockholders promptly (and in no event later than two (2) Business Days) following the receipt of a
notice

 

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from a Principal Stockholder pursuant to the first sentence of this Section 2(c). If
requested by the Principal Stockholders, any remaining underwriters shall be selected by a majority
in interest of the Stockholders participating in the Underwritten Offering. All Stockholders
proposing to distribute their securities through such underwriting shall (together with the Company
and any holders of Common Stock proposing to distribute their shares of Common Stock through such
underwriting) enter into an underwriting agreement in customary form with the underwriters so
selected for such underwriting; provided, however, that no Stockholder shall be
required to make any representations, warranties or indemnities except as they relate to such
Stockholder’s ownership of shares, authority to enter into the underwriting agreement and to such
Stockholder’s intended method of distribution, or information furnished by such Stockholder
expressly for use in the Registration Statement or Prospectus, and the liability of such
Stockholder shall be limited to an amount equal to the net proceeds from the offering received by
such Stockholder; and provided, further, that the terms of any lockup provisions
included in such underwriting agreement shall be subject to the following limitations, unless
otherwise agreed to between the Company and the co-lead managing underwriter(s): (i) the term of
any restrictions on sales or distributions shall be no greater than five (5) days prior to, and
sixty (60) days after, the date of the final Prospectus filed in connection with such Underwritten
Offering, or in each case such lesser period as may be agreed between the parties and the co-lead
managing underwriters; (ii) any restrictions on the Company’s ability to file registration
statements with the SEC shall not apply to the filing and effectiveness of any amendments to the
Company’s existing resale registration statements or the addition of any subsidiary guarantor
registrants thereto, as applicable, any shelf registration statements relating to existing employee
or director compensation-related plans or distribution reinvestment plans, or a new universal shelf
registration statement, provided that the securities registered under such new universal
shelf registration statement shall remain subject to the lockup provisions; (iii) any restrictions
on the Company’s ability to sell or distribute securities shall not apply to (A) the grant by the
Company in the ordinary course of business of any securities in connection with employee or
director compensation or pursuant to the Company’s Employee and Director Stock Purchase Plan,
Distribution Reinvestment and Stock Purchase Plan, or any similar or successor plan, or (B) the
issuance of Common Stock upon exercise or conversion of securities outstanding on the date of the
applicable underwriting agreement; (iv) any restrictions on the ability of Affiliates of the
Company to enter into transactions relating to the Company’s securities shall not apply to (A)
transfers by gift, will or intestacy so long as the transferee delivers a similar lock-up, (B)
transfers or sales pursuant to contracts, instructions or plans to transfer Common Stock pursuant
to Rule 10b5-1 existing on the date of the applicable underwriting agreement, or the amendment or
replacement of any such contract, instruction or plan so long as the number of shares of Common
Stock subject thereto is not increased, and the exercise of options in connection therewith, and
(C) the withholding of securities to pay taxes upon the vesting of certain equity awards granted by
the Company; and (v) none of the Company or the Company’s Affiliates shall be subject to any lockup
provisions in connection with any offering of fewer than 4,252,200 Registrable Securities, subject
to Anti-Dilution Adjustments. Notwithstanding any other
provision of this Section 2(c), if the joint lead bookrunner(s) advise the initiating
Stockholder that in their view, acting reasonably, marketing factors require a limitation of the
number of shares to be underwritten at the contemplated pricing, then such Stockholder shall so
advise the Company and the Company shall so advise all Stockholders of Registrable Securities which
would otherwise be underwritten pursuant hereto, and the number of shares of Common Stock

 

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that may
be included in the underwriting shall be allocated as follows: (i) first, among Stockholders that
have elected to participate in such underwritten offering, in proportion (as nearly as practicable)
to the aggregate amount of Registrable Securities held by such Stockholders, until such
Stockholders have included in the underwriting all shares requested by such holders to be included,
(ii) second, to the Company, until the Company has included in the underwriting all shares
requested by it to be included, and (iii) thereafter, among all other holders of the securities of
the Company, if any, that have the right and have elected to participate in such underwritten
offering, in proportion (as nearly as practicable) to the amount of shares of the securities of the
Company owned by such holders.

(d) Piggyback Registration.

(i) If the Company shall determine to register any of its securities either (A) for its
own account, or (B) for the account of other holders of securities of the Company (other
than (I) a Registration relating solely to employee or director benefit or distribution
reinvestment plans, (II) a Registration relating solely to a Rule 145 transaction under the
Act, (III) a Registration on any Registration form which may not be used for the
registration or qualification for distribution of Registrable Securities or does not include
substantially the same information as would be required to be included in a Registration
Statement, (IV) any offerings to be conducted pursuant to block trades with a broker-dealer,
or (V) any at-the-market offerings), the Company will, subject to the conditions set forth
in this Section 2(d):

A. promptly give to each of the Stockholders a written notice thereof (which shall
include a list of the jurisdictions in which the Company intends to attempt to qualify such
securities under the applicable blue sky or other state securities laws); and

B. subject to Section 2(d)(ii) below and any transfer restrictions to which any
Stockholder may be subject, include in such Registration (and any related qualification
under blue sky laws or other compliance), and in any underwriting involved therein, all of
the Registrable Securities specified in a written request or requests, made by the
Stockholders. Such written request may specify less than all of the Stockholders’
Registrable Securities and shall be received by the Company within ten (10) days after
written notice from the Company is given under Section 2(d)(i)(A) above.

(ii) Underwriting. If the Registration of which the Company gives notice is
for a Registered public offering involving an underwriting, the Company shall so advise each
of the Stockholders as a part of the written notice given pursuant to Section
2(d)(i)(A) above. In such event, the right of each of the Stockholders to Registration
pursuant to this Section 2(d) shall be conditioned upon such Stockholders’
participation in such underwriting and the inclusion of such Stockholders’ Registrable
Securities in the underwriting to the extent provided herein. The Stockholders whose
Registrable
Securities are to be included in such Registration shall (together with the Company and
any other Person distributing their securities through such underwriting) enter into an
underwriting agreement in customary form for secondary public offerings with the managing
underwriter or underwriters selected for underwriting by the Company (or if the Registration
was initiated by a Stockholder pursuant to Section 2(c), such

 

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underwriters selected
by the initiating Stockholder(s) in accordance with Section 2(c)); provided,
however, that no Stockholder shall be required to make any representations,
warranties or indemnities except as they relate to such Stockholder’s ownership of shares,
authority to enter into the underwriting agreement or information furnished by such
Stockholder expressly for use in the Registration Statement or Prospectus, and such
underwriting agreement shall not provide for indemnification or contribution obligations on
the part of any Stockholder greater in amount than the amount of the net proceeds (after
giving effect to any underwriters discounts and commissions) received by such Stockholder
upon the sale of the Registrable Securities giving rise to such indemnification or
contribution obligation; and provided, further, that the terms of any lockup
provisions included in such underwriting agreement shall be subject to the following
limitations, unless otherwise agreed to between the Company and the co-lead managing
underwriter(s): (i) the term of any restrictions on sales or distributions shall be no
greater than five (5) days prior to, and sixty (60) days after, the date of the final
Prospectus filed in connection with such Underwritten Offering, or in each case such lesser
period as may be agreed between the parties and the co-lead managing underwriters; (ii) any
restrictions on the Company’s ability to file registration statements with the SEC shall not
apply to the filing and effectiveness of any amendments to the Company’s existing resale
registration statements or the addition of any subsidiary guarantor registrants thereto, as
applicable, any shelf registration statements relating to existing employee or director
compensation-related plans or distribution reinvestment plans, or a new universal shelf
registration statement, provided that the securities registered under such new
universal shelf registration statement shall remain subject to the lockup provisions; (iii)
any restrictions on the Company’s ability to sell or distribute securities shall not apply
to (A) the grant by the Company in the ordinary course of business of any securities in
connection with employee or director compensation or pursuant to the Company’s Employee and
Director Stock Purchase Plan, Distribution Reinvestment and Stock Purchase Plan, or any
similar or successor plan, or (B) the issuance of Common Stock upon exercise or conversion
of securities outstanding on the date of the applicable underwriting agreement; (iv) any
restrictions on the ability of Affiliates of the Company to enter into transactions relating
to the Company’s securities shall not apply to (A) transfers by gift, will or intestacy so
long as the transferee delivers a similar lock-up, (B) transfers or sales pursuant to
contracts, instructions or plans to transfer Common Stock pursuant to Rule 10b5-1 existing
on the date of the applicable underwriting agreement, or the amendment or replacement of any
such contract, instruction or plan so long as the number of shares of Common Stock subject
thereto is not increased, and the exercise of options in connection therewith, and (C) the
withholding of securities to pay taxes upon the vesting of certain equity awards granted by
the Company; and (v) none of the Company or the Company’s Affiliates shall be subject to any
lockup provisions in connection with any offering of fewer than 4,252,201
Registrable Securities, subject to Anti-Dilution Adjustments.
Notwithstanding any other provision of this Section 2(d), if any Registration
in respect of which any Stockholder is exercising its rights under this Section 2(d)
involves an underwritten offering initiated by the Company and the joint lead bookrunner(s)
advise the Company that in their view, acting reasonably, marketing factors require a
limitation on the number of securities to be underwritten at the contemplated pricing, then
there

 

8

 

shall be included in such underwritten offering the number or dollar amount of
securities of the Company that in the opinion of such joint lead bookrunner(s) can be sold
without adversely affecting such offering, and such number of securities of the Company
shall be allocated for inclusion as follows: (A) first, all securities of the Company being
sold by the Company for its own account or by any Person (other than a Stockholder)
exercising a contractual right to demand registration; (B) second, all Registrable
Securities requested to be included by the Stockholders and securities of the Company being
sold by any Person (other than a Stockholder) with similar piggyback registration rights,
pro rata, based on the number of shares requested to be included in such Registration by
such Stockholders and such Person; and (C) third, among any other holders of securities of
the Company requesting such Registration, pro rata, based on the number of securities
requested to be included in such Registration by each such holder. If any of the
Stockholders disapproves of the terms of any such underwriting, he, she or it may elect to
withdraw therefrom by providing written notice to the Company, the other Stockholders and
the managing underwriter at least two (2) Business Days prior to the effective date of such
Registration. Any Registrable Securities or other securities excluded or withdrawn from
such underwriting shall be withdrawn from such Registration.

(iii) In the case of an offering initiated by the Company as a primary offering on
behalf of the Company, nothing contained herein shall prohibit the Company from determining,
at any time, not to file a registration statement or, if filed, to withdraw such
registration or terminate or abandon the offering related thereto, without prejudice,
however, to the rights of the Stockholders to request a registration pursuant to Section
2(b) hereof.

(e) Limitations.

(i) The Stockholder Representative, if any, or the Principal Stockholders (if no
Stockholder Representative has been designated) (A) may request a maximum of three (3)
Underwritten Offerings (including, for the avoidance of doubt, any Shelf Offerings which are
underwritten offerings, and excluding any offering that is not completed, provided
that the Stockholders have reimbursed the Company for all reasonable and documented
out-of-pocket fees and expenses incurred by the Company in connection with any such offering
which is not completed due to actions or elections of the Stockholders) and two (2) other
Demand Registrations that are not Underwritten Offerings (including, for the avoidance of
doubt, any Shelf Offerings which are underwritten offerings, and excluding any offering that
is not completed, provided that the Stockholders have reimbursed the Company for all
reasonable and documented out-of-pocket fees and expenses incurred by the Company in
connection with any such Registration which is not completed due to actions or elections of
the Stockholders); (B) may collectively request and complete a maximum of one (1) Demand
Registration,
Underwritten Offering or Shelf Offering in any six (6) month period (provided
that the Stockholders have reimbursed the Company for all reasonable and documented
out-of-pocket fees and expenses incurred by the Company in connection with any Registration
during such period which is not completed due to actions or elections of the Stockholders);
(C) may not request a Demand Registration unless the Registrable

 

9

 

Securities to be included
in such Demand Registration have estimated gross proceeds of no less than $100 million; and
(D) may request Underwritten Offerings (including, for the avoidance of doubt, any Shelf
Offerings which are underwritten offerings) subject to the following: (I) with respect to
the initial Underwritten Offering, the number of Registrable Securities to be included in
such Underwritten Offering is equal to no less than 10,630,501, subject to the
Anti-Dilution Adjustments, plus a customary overallotment option, and such Underwritten
Offering is to be conducted either as a fully marketed underwritten offering or pursuant to
a block trade with a broker-dealer, and (II) Underwritten Offerings that follow a completed
offering referenced in clause (I) shall either (1) be conducted as a fully marketed
underwritten offering and the number of Registrable Securities to be included in such
Underwritten Offering is equal to no less than 6,378,301, subject to the Anti-Dilution
Adjustments, plus a customary overallotment option, or (2) shall be conducted as a block
trade with a broker-dealer and the number of Registrable Securities to be included in such
Underwritten Offering is equal to no less than the lesser of (i) the number of Registrable
Securities held by the Stockholders on the date of such request and (ii) 4,252,200, subject
to the Anti-Dilution Adjustments. In connection with any “fully underwritten marketed
offering,” the Company’s management shall participate in any road show or marketing effort
as reasonably requested by the co-lead managing underwriters for such offering.

(ii) Notwithstanding anything to the contrary in this Section 2, if in the good
faith judgment of the Chief Executive Officer or Chief Financial Officer of the Company it
would be detrimental to the Company and its stockholders not to defer the filing, or suspend
the use by the Stockholders, of a Registration Statement by reason of: (A) a material
pending financing, acquisition, disposition, corporate reorganization, merger, public
offering of securities, or other material transaction involving or being contemplated by the
Company, or other similarly material events then concerning the Company; (B) the Company
being in possession of material non-public information not otherwise then required by law to
be publicly disclosed that it deems advisable not to disclose in such Registration
Statement, or (C) a requirement to include pro forma or other information, which requirement
the Company is reasonably unable to comply with at such time, or to undertake initial or
continuing disclosure obligations not in the best interests of the Company’s shareholders,
the Company shall have the right to defer the filing, or suspend the use by the
Stockholders, of such Registration Statement (each, a “Suspension Period”);
provided, however, that (x) the Company may not declare a Suspension Period
more than three (3) times in any twelve (12) month period, (y) after the first anniversary
of Closing, the aggregate of all Suspension Periods shall not exceed sixty (60) days in any
ninety (90) day period, and (z) that the aggregate of all Suspension Periods may not exceed
one hundred and twenty (120) days in any twelve (12) month period; provided,
further, that the Company shall at all times in good faith use its commercially
reasonable efforts to cause any Suspension Period to be terminated as soon as possible,
including, if necessary, by Registration Statement required by this Agreement
to be filed or restored as soon as possible thereafter; provided,
further, that the Company shall in good faith use its commercially reasonable
efforts not to declare a Suspension Period prior to the sixty (60) day anniversary of the
effectiveness of the Shelf Registration Statement or, if earlier, the completion of the
initial Underwritten Offering; and provided, further, that such right
pursuant to this Section 2(e) shall be exercisable by

 

10

 

the Company only if the
Company is concurrently exercising all similar black-out rights against holders of similar
securities that have registration rights, if any, to the extent permitted by the terms of
such registration rights. Each Stockholder agrees that upon receipt of a notice from the
Company of (A) any of the events described in Section 3(c)(iii), Section
3(c)(v), Section 3(c)(vi) or Section 3(c)(vii) or (B) of the
commencement of a Suspension Period described in Section 3(c)(iv), each Stockholder
shall discontinue disposition of Registrable Securities pursuant to the affected
Registration Statement until receipt of copies of a supplemented or amended Prospectus
contemplated by Section 3(c)(j), or until otherwise notified by the Company, and, if
so directed by the Company, each Stockholder shall deliver to the Company (at the Company’s
expense) all copies (including any and all drafts) then in their possession, of the
Prospectus covering Registrable Securities at the time of receipt of such notice. If the
Company shall give such notice pursuant to this Section 2(e)(ii), the Company shall
extend the period during which such Registration Statement shall be maintained effective by
the number of days during the period from and including the date of the giving of such
notice until the date on which such Stockholder shall have received copies of such
supplemented or amended Prospectus or shall have otherwise been notified by the Company that
dispositions of Registrable Securities pursuant to the applicable Registration Statement may
be resumed.

3. Registration Procedures. In connection with each Registration contemplated by
Section 2, the following provisions shall apply:

(a) The Company shall: (i) furnish to each of the selling Stockholders prior to the filing
thereof with the SEC a copy of each Registration Statement, and each material amendment thereof,
and a copy of any Prospectus, and each material amendment or supplement thereto (excluding
amendments caused or deemed to occur by the filing of a report under the Exchange Act), and shall
reasonably cooperate with the selling Stockholders to reflect in each such document so furnished,
when so filed with the SEC, such comments as the selling Stockholders may reasonably and timely
propose, (ii) cause its officers and directors, counsel and independent certified public
accountants to respond to such inquiries of the selling Stockholders as shall be necessary, in the
reasonable opinion of respective counsel, to conduct a reasonable investigation within the meaning
of the Act, and (iii) identify the selling Stockholders as selling shareholders therein and
describe the methods of distribution they specify from time to time for their Registrable
Securities as necessary to permit such distribution by the methods they so specify.

(b) Subject to Section 2(e), the Company shall use commercially reasonable efforts to
ensure that: (i) each Registration Statement and any amendment thereto and any Prospectus forming a
part thereof and any amendment or supplement thereto comply in all material respects with the Act
and the rules and regulations thereunder, (ii) each Registration Statement and any amendment
thereto does not, when it becomes effective, contain an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements therein not misleading and (iii) any Prospectus forming a part of such Registration
Statement, and any amendment or supplement to such Prospectus, does not include an untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading; provided
that the Company makes no representation with respect to information about the Stockholders
required to be included in a Registration Statement or Prospectus pursuant to the Act or the rules
and regulations thereunder and which information is included therein or omitted therefrom in
reliance upon and in conformity with information furnished to the Company by or on the behalf of
the Stockholders.

 

11

 

(c) The Company, as promptly as reasonably practicable after becoming aware thereof, shall
advise the Stockholders and, if requested by the Stockholders, confirm such advice in writing:

(i) when any Registration Statement and any amendment thereto has been filed with the
SEC and when any Registration Statement or any post-effective amendment thereto has become
effective;

(ii) of any written request by the SEC or any other federal or state governmental
authority for any amendment or supplement to any Registration Statement or Prospectus or
additional information related thereto (in which case the Company shall deliver to each
Stockholder a copy of such request and of all written responses thereto);

(iii) of the determination by the Company that a post-effective amendment to a
Registration Statement would be appropriate;

(iv) of the commencement or termination of any Suspension Period;

(v) of the receipt by the Company of written notice of (A) any stop order issued by the
SEC suspending the effectiveness of a Registration Statement or (B) the initiation of any
proceedings by or with the SEC for that purpose;

(vi) of the receipt by the Company of any written notification of (A) the suspension of
the qualification of the Registrable Securities included in a Registration Statement for
sale in any jurisdiction or (B) the initiation of any proceeding for such purpose; and

(vii) of the happening of any event that requires the making of any changes in any
Registration Statement or a Prospectus so that, as of such date, such Registration Statement
or such Prospectus, as the case may be, does not include an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not
misleading.

(d) The Company shall use commercially reasonable efforts to obtain the withdrawal of any
order issued by the SEC suspending the effectiveness of the Shelf Registration Statement or the
lifting of any suspension of the qualification (or exemption from qualification) of any of the
Registrable Securities for offer or sale in any jurisdiction at the earliest possible time.

(e) The Company shall promptly furnish to each of the Stockholders, without charge, at least
one copy of each Registration Statement and any post-effective amendment thereto, including all
exhibits (including those incorporated by reference), financial statements and schedules included
therein.

 

12

 

(f) The Company shall, promptly deliver to the Stockholders as many printed copies of the
Prospectus (including each preliminary Prospectus) included in any Registration Statement
(excluding documents incorporated by reference), and any amendment or supplement thereto, including
as necessary to effect an offering and sale pursuant to a Shelf Offering, as the Stockholders may
reasonably request; and, except as provided in Section 2(e) hereof, the Company consents to
the use of the Prospectus or any amendment or supplement thereto by the Stockholders in connection
with the offering and sale of the Registrable Securities covered by the Prospectus or any amendment
or supplement thereto in accordance with the methods of distribution set forth therein.

(g) Prior to any offering of Registrable Securities pursuant to a Registration Statement, the
Company shall register or qualify or cooperate with the selling Stockholders and their counsel in
connection with the Registration or qualification (or exemption from such Registration or
qualification) of such Registrable Securities for offer and sale under the securities or blue sky
laws of such jurisdictions within the United States as any Stockholder requests in writing, to keep
each such Registration or qualification (or exemption therefrom) effective until the offering is
completed (but, in no event longer than ninety (90) days from commencement of the offering pursuant
to a Demand Registration or the date of the related prospectus supplement for any Shelf Offering),
and to do any and all other acts or things necessary or advisable to enable the disposition in such
jurisdictions of the Registrable Securities covered by such Registration Statement;
provided that the Company will not be required to qualify generally to do business in any
jurisdiction where it is not then so qualified or to take any action which would subject it to
taxation or general service of process in any such jurisdiction where it is not then so subject.

(h) The Company shall cooperate with the selling Stockholders to facilitate the timely
preparation and delivery (under normal way settlement procedures) of certificates representing
Registrable Securities transferred pursuant to any Registration Statement free of any restrictive
legends and registered in such names as the selling Stockholders may request a reasonable time
prior to settlement of sales of Registrable Securities pursuant to such Registration Statement;
provided that the Company may satisfy its obligations hereunder without issuing physical
stock certificates through the use of The Depository Trust Company’s Direct Registration System.

(i) The Company shall use its commercially reasonable efforts to cause the Registrable
Securities to be listed on the New York Stock Exchange (the “NYSE”), and any other exchange
on which the Company’s Common Stock is then listed for trading, not later than the date on which
the Registration Statement covering such Registrable Securities becomes effective. The Company
shall promptly notify the Stockholders of, and confirm in writing, the delisting of the Common
Stock by the NYSE or other exchange, as applicable.

(j) Upon the occurrence of any event described in Section 3(c)(vii) hereof, the
Company shall promptly prepare and file with the SEC a post-effective amendment to each
effective Registration Statement or an amendment or supplement to the related Prospectus or
any document incorporated therein by reference or file a document which is incorporated or deemed
to be incorporated by reference in such Registration Statement or Prospectus, as the case may be,
so that, as thereafter delivered to purchasers of the Registrable Securities included therein, such
Registration Statement and Prospectus, in each case as then amended or supplemented, will not
include an untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading and, in the case of a post-effective amendment, use its
commercially reasonable efforts to cause it to become effective as promptly as practicable;
provided that the Company’s obligations under this paragraph (j) shall be suspended during
any Suspension Period, it being understood that the Company’s obligations under this Section
3(j) shall be automatically reinstated upon the expiration of such Suspension Period.

 

13

 

(k) The Company shall cooperate as reasonably requested with any due diligence investigation
undertaken by the Stockholders in connection with the sale of Registrable Securities pursuant to a
Registration Statement, including without limitation by making available, after reasonable advance
notice, during business hours at the offices where such information is normally kept, any documents
and information reasonably requested of the type which would be included in a reasonable and
customary due diligence review in connection with an offering of securities.

(l) In the event of any Underwritten Offering of Registrable Securities, the Company shall:
(i) enter into and perform its obligations under an underwriting agreement and such other customary
agreements, in usual and customary form (including without limitation, by providing customary legal
opinions, comfort letters, lockups and indemnification and contribution obligations), with the
managing underwriter(s) of such offering; provided, that the terms of any lockup provisions
included in such underwriting agreement shall be subject to the following limitations, unless
otherwise agreed to between the Company and the co-lead managing underwriter(s): (A) the term of
any restrictions on sales or distributions shall be no greater than five (5) days prior to, and
sixty (60) days after, the date of the final Prospectus filed in connection with such Underwritten
Offering, or in each case such lesser period as may be agreed between the parties and the co-lead
managing underwriters; (B) any restrictions on the Company’s ability to file registration
statements with the SEC shall not apply to the filing and effectiveness of any amendments to the
Company’s existing resale registration statements or the addition of any subsidiary guarantor
registrants thereto, as applicable, any shelf registration statements relating to existing employee
or director compensation-related plans or distribution reinvestment plans, or a new universal shelf
registration statement, provided that the securities registered under such new universal
shelf registration statement shall remain subject to the lockup provisions; (C) any restrictions on
the Company’s ability to sell or distribute securities shall not apply to (I) the grant by the
Company in the ordinary course of business of any securities in connection with employee or
director compensation or pursuant to the Company’s Employee and Director Stock Purchase Plan,
Distribution Reinvestment and Stock Purchase Plan, or any similar or successor plan, or (II) the
issuance of Common Stock upon exercise or conversion of securities outstanding on the date of the
applicable underwriting agreement or issued following the date of the applicable underwriting
agreement not in violation of the lockup provisions; (D) any restrictions on the ability of
Affiliates of the Company to enter into transactions relating to the Company securities shall not
apply to (I) transfers by gift, will or
intestacy so long as the transferee delivers a similar lock-up, (II) transfers or sales
pursuant to contracts, instructions or plans to transfer Common Stock pursuant to Rule 10b5-1
existing on the date of the applicable underwriting agreement, or the amendment or replacement of
any such contract, instruction or plan so long as the number of shares of Common Stock subject
thereto is not increased, and the exercise of options in connection therewith, and (III) the
withholding of securities to pay taxes upon the vesting of certain equity awards granted by the
Company; and (E) none of the Company nor the Company’s Affiliates shall be subject to any lockup
provisions in connection with any offering of fewer than 4,252,200 Registrable Securities, subject
to Anti-Dilution Adjustments, (ii), make reasonably available the senior executives of the Company
to participate in any customary “road show” presentations that may be reasonably requested by such
managing underwriter(s) in any such Underwritten Offering and otherwise facilitate, cooperate with
and participate in each proposed offering contemplated herein and customary selling efforts related
thereto, and (iii) take such other actions as the Stockholders or such managing underwriter may
reasonably request in order to expedite or facilitate the Registration and disposition of such
Registrable Securities.

 

14

 

(m) The Company shall use its commercially reasonable efforts to take such actions as are
under its control to become or remain a well-known seasoned issuer (as such term is defined in Rule
405 of the Act) and not become an ineligible issuer (as such term is defined in Rule 405 under the
Act) during the period when a Registration Statement remains in effect.

(n) The Company shall comply in all material respects with all applicable rules and
regulations of the SEC and the NYSE.

(o) The Company shall cooperate with each of the Stockholders and the managing underwriter, if
any, of such Registrable Securities and their respective counsel in connection with any filings
required to be made with FINRA.

(p) The Company shall use its commercially reasonable efforts to procure the cooperation of
the Company’s transfer agent in settling any offering or sale of Registrable Securities, including
with respect to the transfer of physical security instruments into book-entry form in accordance
with any procedures reasonable requested by the Stockholders or the managing underwriter of an
offering of Registrable Securities.

(q) In the event of a public sale of the Company’s equity securities by the Company in an
underwritten offering, whether or not the Stockholders participate therein, the Stockholders hereby
agree not to effect any sale or distribution (including any offer to sell, contract to sell, short
sale, or any option to purchase) of any securities (except, in each case, as part of such
underwritten offering, if permitted thereunder) that are the same or similar to those being offered
in connection with such public sale, or any securities convertible into or exchangeable for such
securities, during the period beginning five (5) days before, and ending sixty (60) days (or such
lesser period as may be permitted by the Company or such managing underwriter or underwriters)
after, the effective date of the Registration Statement filed in connection with such underwritten
offering, to the extent timely notified in writing by the Company or the managing underwriter or
underwriters. The Stockholders also agree to execute an agreement evidencing the restrictions in
this Section 3(q) in customary form, which form is satisfactory to the
Company and the underwriters. The Company may impose stop-transfer instructions with respect
to the securities subject to the foregoing restrictions until the end of the required period.

(r) As a condition precedent to the filing of any Registration Statement hereunder, the
Company may require each Stockholder as to which any registration is being effected to furnish to
the Company such information regarding the distribution of such Registrable Securities and such
other information relating to such Stockholder, its ownership of Registrable Securities and other
matters as the Company may from time to time reasonably request in writing. Each Stockholder
agrees to furnish such information to the Company and to cooperate with the Company as reasonably
necessary to enable the Company to comply with the provisions of this Agreement.

 

15

 

4. Registration Expenses. All fees and expenses incident to the performance of or
compliance with this Agreement by the Company shall be borne by the Company whether or not any
Registrable Securities are sold pursuant to a Registration Statement, other than any underwriting
fees, discounts, commissions and related expenses attributable to the sale of Registrable
Securities (including the fees and expenses of any underwriters and such underwriters’ counsel).
The fees and expenses to be borne by the Company referred in the foregoing sentence shall include,
without limitation, (a) all registration and filing fees (including, without limitation, fees and
expenses in connection with compliance with applicable state securities or blue sky laws
(including, without limitation, fees and disbursements of counsel for the Company in connection
with blue sky qualifications or exemptions of the Registrable Securities and determination of the
eligibility of the Registrable Securities for investment under the laws of such jurisdictions as
requested by the Stockholders)), (b) printing expenses (including, without limitation, expenses of
printing certificates for Registrable Securities and of printing such number of Prospectuses as may
be reasonably requested by the Stockholders), (c) messenger, telephone and delivery expenses, (d)
fees and disbursements of counsel for the Company and with respect to the Stockholders, reasonable
fees and expenses of one counsel to the Stockholders (selected by a majority in interest of the
Stockholders participating in such Registration Statement or Underwritten Offering, as the case may
be), and (e) fees and expenses of all other persons retained by the Company in connection with the
consummation of the transactions contemplated by this Agreement.

5. Indemnification and Contribution.

(a) The Company agrees to indemnify and hold harmless: (i) each of the Stockholders, (ii) the
directors and officers of each of the Stockholders and of their Affiliates and (iii) each person
who controls (within the meaning of either the Act or the Exchange Act) a Stockholder or an
Affiliate thereof from and against any and all losses, claims, damages or liabilities, joint or
several, to which they or any of them may become subject under the Act, the Exchange Act or other
Federal or state law or regulation, at common law or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon (A) any
untrue statement or alleged untrue statement of a material fact contained in a Registration
Statement as originally filed or in any amendment thereof, or in any preliminary Prospectus or
Prospectus, or in any amendment thereof or supplement thereto, (B) any violation by the Company of
the Act or Exchange Act applicable to the Company and relating to any action by the Company or
omission of action required to be taken by the Company in connection with any
Registration, or (C) the omission or alleged omission to state therein 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; provided, however, that
the Company will not be liable in any such case to the extent that any such loss, claim, damage or
liability arises out of or is based upon any such untrue statement or alleged untrue statement or
omission or alleged omission made therein in reliance upon and in conformity with written
information furnished to the Company by or on behalf of Stockholder or any such controlling person
specifically for inclusion therein. The indemnity provided under this Section 5(a) shall
be in addition to any liability which the Company may otherwise have pursuant to applicable law.

 

16

 

(b) Each of the Stockholders agrees (severally and not jointly) to indemnify and hold
harmless: (i) the Company, (ii) each of its directors and officers and (iii) each person who
controls the Company within the meaning of either the Act or the Exchange Act from and against any
and all losses, claims, damages or liabilities, joint or several, to which they or any of them may
become subject under the Act, the Exchange Act or other Federal or state law or regulation, at
common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of
a material fact contained in a Registration Statement as originally filed or in any amendment
thereof, or in any preliminary Prospectus or Prospectus, or in any amendment thereof or supplement
thereto, or arise out of or are based upon the omission or alleged omission to state therein 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, but in each case only to the
extent that the untrue statement or omission or alleged untrue statement or omission was made in
reliance upon and in conformity with written information furnished to the Company by or on behalf
of such Stockholder specifically for inclusion therein; provided, however, that in
no event shall the liability (including, but not limited to, any liability for contribution
pursuant to Section 5(d)) of any selling Stockholder hereunder be greater in amount than
the amount of the net proceeds (after giving effect to any underwriters discounts and commissions)
received by such Stockholder upon the sale of the Registrable Securities giving rise to such
indemnification obligation.

(c) Promptly after receipt by an indemnified party under this Section 5 of notice of
the commencement of any action, such indemnified party will, if a claim in respect thereof is to be
made against the indemnifying party under this Section 5, notify the indemnifying party in
writing of the commencement thereof; but the failure so to notify the indemnifying party will not
relieve it from liability under paragraph (a) or (b) above unless and to the extent that the
indemnifying party has been actually prejudiced by such failure. The indemnifying party shall be
entitled to appoint counsel of the indemnifying party’s choice at the indemnifying party’s expense
to represent the indemnified party in any action for which indemnification is sought (in which case
the indemnifying party shall not thereafter be responsible for the fees and expenses of any
separate counsel retained by the indemnified party or parties except as set forth below);
provided, however, that such counsel shall be reasonably satisfactory to the
indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel to
represent the indemnified party in an action, the indemnified party shall have the right to employ
one separate counsel (and appropriate local counsel), and the indemnifying party shall bear the
reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel chosen by
the indemnifying party to represent the indemnified party would present such counsel with a
conflict
of interest; (ii) the actual or potential defendants in, or targets of, any such action
include both the indemnified party and the indemnifying party and the indemnified party shall have
reasonably concluded that there may be a conflict of interest between such indemnified party and
the indemnifying party; (iii) the indemnifying party shall not have employed counsel reasonably
satisfactory to the indemnified party to represent the indemnified party within a reasonable time
after notice of the institution of such action; or (iv) the indemnifying party shall authorize the

 

17

 

indemnified party in writing to employ separate counsel at the expense of the indemnifying party.
Neither an indemnifying party nor an indemnified party will, without the prior written consent of
the other parties, which consent shall not be unreasonably withheld or delayed, settle or
compromise or consent to the entry of any judgment with respect to any pending or threatened claim,
action, suit or proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not such other parties are actual or potential parties to such claim or
action) unless such settlement, compromise or consent includes an unconditional release of such
other parties from all liability arising out of such claim, action, suit or proceeding and does not
include any statement as to, or any admission of, fault, culpability or failure to act by such
other parties. All reasonable out-of-pocket fees and expenses of the indemnified party (including
reasonable out-of-pocket fees and expenses to the extent incurred in connection with investigating
or preparing to defend such proceeding in a manner not inconsistent with this Section 5)
shall be paid to the indemnified party, as incurred, within ten (10) Business Days of written
notice thereof to the indemnifying party (regardless of whether it may be ultimately determined
that an indemnified party is not entitled to indemnification hereunder); provided,
however that the indemnifying party may require such indemnified party to undertake to
reimburse all such fees and expenses in such case.

(d) In the event that the indemnity provided in paragraph (a) or (b) of this
Section 5 is unavailable to or insufficient to hold harmless an indemnified party for any
reason, then each applicable indemnifying party shall have an obligation to contribute to the
aggregate losses, claims, damages and liabilities (including legal or other expenses reasonably
incurred in connection with investigating or defending the same) (collectively, “Losses”),
as incurred, to which such indemnified party may be subject in such proportion as is appropriate to
reflect the relative fault of such indemnifying party, on the one hand, and such indemnified party,
on the other hand, in connection with the statements or omissions which resulted in such Losses as
well as any other relevant equitable consideration. If the allocation provided by the immediately
preceding sentence is unavailable for any reason, the indemnifying party and the indemnified party
shall contribute in such proportion as is appropriate to reflect the relative fault of such
indemnifying party, on the one hand, and such indemnified party, on the other hand, as well as any
other relevant equitable considerations. Relative fault shall be determined by reference to
whether any untrue statement or omission or alleged untrue statement or omission relates to
information provided by the indemnifying party, on the one hand, or by the indemnified party, on
the other hand, the intent of the parties and their relative knowledge, access to information and
opportunity to correct or prevent such untrue statement or omission. The parties agree that it
would not be just and equitable if contribution were determined by pro rata allocation or any other
method of allocation which does not take account of the equitable considerations referred to above.
Notwithstanding the provisions of this Section 5(d), no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes
of this Section 5, each person who controls any such indemnified party within the
meaning of either the Act or the Exchange Act and each director and officer of such
indemnified party shall have the same rights to contribution as such indemnified party.
Notwithstanding anything to the contrary herein, any liability of any Stockholder arising pursuant
to this Section 5(d) shall be subject to the limitation on liability under Section
5(b).

 

18

 

(e) The provisions of this Section 5 shall remain in full force and effect, regardless
of any investigation made by or on behalf of any Stockholder or the Company or any officers,
directors or controlling persons referred to in this Section 5 and will survive the sale by
any of the Stockholders of its Registrable Securities covered by a Registration Statement.

6. Miscellaneous.

(a) Amendments and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, qualified, modified or supplemented, and waivers
or consents to departures from the provisions hereof may not be given, unless the written consent
of the Company and the Stockholder Representative, if any, or each of the Principal Stockholders
(if no Stockholder Representative has been designated), has been obtained.

(b) Notices. All notices and other communications required or permitted hereunder
shall be made in writing in accordance with Section 8(g) of the Merger Agreement; provided
that the notice address for Prometheus shall be c/o Lazard Frères 30 Rockefeller Plaza, 50th
Floor, New York, New York 10020; and provided further that all
notices required to be given by the Company to any or all Stockholders shall be deemed duly given
to all Stockholders at such time as it is duly given to the Principal Stockholders.

(c) Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and permitted assigns of each of the Stockholders and the Company. The
Company may not assign its rights or obligations hereunder without the prior written consent of
each Stockholder then holding Registrable Securities, other than in connection with a sale or
acquisition of the Company, whether by merger, consolidation, sale of all or substantially all of
the Company’s assets, or a similar transaction. A Stockholder may assign its rights and
obligations in whole or in part hereunder from time to time only to (i) (A) another Stockholder,
(B) an entity that is controlled, directly or indirectly, by Lazard Alternative Investments LLC or
a successor to all or substantially all of its business or a fund managed by a controlled Affiliate
of Lazard Alternative Investments LLC, (C) Management Holdco and its direct and indirect
subsidiaries, (D) any of the direct or indirect members, partners or other equity holders of any
Stockholder or (ii) another entity with the prior written consent of the Company, provided
that in each case (x) the transferee agrees in writing to be bound by the provisions of this
Agreement, a copy of which written agreement shall be furnished to the Company, and (y) after
giving effect to such transfer, such transferee is a holder of Registrable Securities. Any
purported assignment by any party hereto other than as set forth in this Section 6(c) shall
be null and void. No Person other than the parties hereto and their successors and permitted
assigns is intended to be a beneficiary of this Agreement.

(d) Counterparts. This Agreement may be executed in any number of counterparts
(including counterparts delivered and executed by facsimile, which shall be as effective as
counterparts delivered and executed manually) 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) Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

 

19

 

(f) GOVERNING LAW; JURISDICTION.

(i) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK WITHOUT REFERENCE AS TO RULES AS TO CONFLICTS OF LAW.

(ii) ANY PROCEEDING SEEKING TO ENFORCE ANY PROVISION OF, OR BASED ON ANY RIGHT ARISING
OUT OF, THIS AGREEMENT SHALL BE BROUGHT AGAINST ANY OF THE PARTIES HERETO ONLY IN THE COURTS
OF THE STATE OF NEW YORK, COUNTY OF NEW YORK, OR, IF IT HAS OR CAN ACQUIRE JURISDICTION, IN
THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND EACH OF THE
PARTIES HERETO CONSENTS TO THE JURISDICTION OF SUCH COURTS (AND OF THE APPROPRIATE APPELLATE
COURTS) IN ANY SUCH ACTION OR PROCEEDING AND WAIVES ANY OBJECTION TO VENUE LAID THEREIN.
ANY AND ALL SERVICE OF PROCESS AND ANY OTHER NOTICE IN ANY SUCH PROCEEDING SHALL BE
EFFECTIVE AGAINST ANY PARTY HERETO IF GIVEN AS PROVIDED IN SECTION 6(B) HEREOF.
NOTHING HEREIN CONTAINED SHALL BE DEEMED TO AFFECT THE RIGHT OF ANY PARTY TO SERVE PROCESS
IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

(g) Severability. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable
in any respect for any reason, the validity, legality and enforceability of any such provision in
every other respect and of the remaining provisions hereof shall not be in any way impaired or
affected thereby, it being intended that all of the rights and privileges of the parties shall be
enforceable to the fullest extent permitted by law.

(h) Remedy. The parties hereto acknowledge that the obligations undertaken by them
hereunder are unique and that there would be no adequate remedy at law if any party fails to
perform any of its obligations hereunder, and accordingly agree that each party, in addition to any
other remedy to which it may be entitled at law or in equity, shall be entitled to seek: (i)
specific performance of the obligations, covenants and agreements of any other party under this
Agreement in accordance with the terms and conditions of this Agreement and (ii) preliminary
injunctive relief to secure specific performance and to prevent a breach or contemplated breach of
this Agreement.

(i) [Reserved].

(j) No Inconsistent Agreements. Neither the Company nor any of its subsidiaries has
entered, as of the date hereof, nor shall the Company or any of its subsidiaries enter, on or after
the date of this Agreement, into any agreement with respect to its securities that would have
the effect of materially impairing the rights granted to the Stockholders in this Agreement or
otherwise conflicts with the provisions hereof.

[Signature page follows]

 

20

 

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

	 	 	 	 	 
	 	VENTAS, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ T. Richard Riney
 	 
	 	 	Name:  	T. Richard Riney 	 
	 	 	Title:  	Executive Vice President, Chief Administrative
Officer and General Counsel 	 
	 
	 	PROMETHEUS SENIOR QUARTERS LLC,

a Delaware limited liability company

 	 

	 	 	 	 	 
	 	By:  	LF Strategic Realty Investors II L.P.,
 	 
	 	 	LFSRI II Alternative Partnership L.P. 	 
	 	 	and LFSRI II-CADIM Alternative

Partnership L.P.,

its Managing Members 	 

	 	 	 	 	 
	 	By:  	Lazard Frères Real Estate Investors L.L.C.,
 	 
	 	 	their General Partner 	 

	 	 	 	 	 
	 	By:  	/s/ Matthew J. Lustig
 	 
	 	 	Name:  	Matthew J. Lustig 	 
	 	 	Title:  	Managing Principal 	 
	 

	 	 	 	 	 
	 	LAZARD SENIOR HOUSING PARTNERSHIP LP,

a Delaware limited partnership

 	 

	 	 	 	 	 
	 	By:  	Lazard Senior Housing Partners GP LLC,
its General Partner 
 

	 	 	 	 	 
	 	By:  	/s/ Matthew J. Lustig
 	 
	 	 	Name:  	Matthew J. Lustig 	 
	 	 	Title:  	Managing Principal and 
Chief Executive Officer 	 
	 

[Signature Page of Registration Rights Agreement]

 

 

 

	 	 	 	 	 
	 	LSHP COINVESTMENT PARTNERSHIP I LP, a Delaware limited partnership

 	 
	 	By:  	LSHP Coinvestment I GP LLC,
 	 
	 	 	its General Partner 	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Matthew J. Lustig
 	 
	 	 	Name:  	Matthew J. Lustig 	 
	 	 	Title:  	Managing Principal and
 Chief Executive Officer 	 
	 

[Signature Page of Registration Rights Agreement]

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