Document:

exv4w3

 

Exhibit 4.3

Registration Rights Agreement

ENCORE ACQUISITION COMPANY

6.0% Senior Subordinated Notes due 2015

unconditionally guaranteed as to the

payment of principal, premium,

if any, and interest by

Encore Operating, L.P.

EAP Operating, Inc.

EAP Properties, Inc.

EAP Energy, Inc.

EAP Energy Services, L.P.

Encore Operating Louisiana, LLC

 

Registration Rights Agreement

July 13, 2005

Credit Suisse First Boston LLC

      Eleven Madison Avenue

      New York, New York 10010

Ladies and Gentlemen:

               Encore Acquisition Company, a Delaware corporation (the “Company”), proposes to issue and sell
to the Purchaser (as defined herein) upon the terms set forth in the Purchase Agreement (as defined
herein) its 6.0% Senior Subordinated Notes due 2015, which are unconditionally guaranteed by Encore
Operating, L.P., a Texas limited partnership, EAP Operating, Inc., a Delaware corporation, EAP
Properties, Inc., a Delaware corporation, EAP Energy, Inc., a Delaware corporation, EAP Energy
Services, L.P , a Texas limited partnership, and Encore Operating Louisiana, LLC, a Delaware
limited liability company. As an inducement to the Purchaser to enter into the Purchase Agreement
and in satisfaction of a condition to the obligations of the Purchaser thereunder, the Company
agrees with the Purchaser for the benefit of holders (as defined herein) from time to time of the
Registrable Securities (as defined herein) as follows:

               1. Certain Definitions. For purposes of this Registration Rights Agreement, the following
terms shall have the following respective meanings: “Additional Interest” shall have the meaning
assigned thereto in Section 2(c) hereof.

     “Base Interest” shall mean the interest that would otherwise accrue on the Securities under
the terms thereof and the Indenture, without giving effect to the provisions of this Agreement.

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Registration Rights Agreement

     The term “broker-dealer” shall mean any broker or dealer registered with the Commission
under the Exchange Act.

     “Closing Date” shall mean the date on which the Securities are initially issued.

     “Commission” shall mean the United States Securities and Exchange Commission, or any other
federal agency at the time administering the Exchange Act or the Securities Act, whichever is
the relevant statute for the particular purpose.

     “Effective Time,” in the case of (i) an Exchange Registration, shall mean the time and date
as of which the Commission declares the Exchange Offer Registration Statement effective or as of
which the Exchange Offer Registration Statement otherwise becomes effective and (ii) a Shelf
Registration, shall mean the time and date as of which the Commission declares the Shelf
Registration Statement effective or as of which the Shelf Registration Statement otherwise
becomes effective.

     ”Electing Holder” shall mean any holder of Registrable Securities that has returned a
completed and signed Notice and Questionnaire to the Company in accordance with Section 3(d)(ii)
or 3(d)(iv) hereof.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, or any successor thereto, as
the same shall be amended from time to time.

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

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

     “Exchange Registration” shall have the meaning assigned thereto in Section 3(c) hereof.

     “Exchange Securities” shall have the meaning assigned thereto in Section 2(a) hereof.

     The term “holder” shall mean each of the Purchaser and other persons who acquire
Registrable Securities from time to time (including any successors or assigns), in each case for
so long as such person owns any Registrable Securities.

     “Indenture” shall mean the Indenture, dated as of July 13, 2005, among the Company, the
Subsidiary Guarantors and Wells Fargo Bank, National Association, as Trustee, as the same shall
be amended from time to time.

     ”Notice and Questionnaire” means a Notice of Registration Statement and Selling
Securityholder Questionnaire substantially in the form of Exhibit A hereto.

     The term “person” shall mean a corporation, association, partnership, organization,
business, individual, government or political subdivision thereof or governmental agency.

     “Purchase Agreement” shall mean the Purchase Agreement, dated as of June 30, 2005, among
the Purchaser, the Subsidiary Guarantors and the Company relating to the Securities.

     “Purchaser” shall mean the Purchaser named in the Purchase Agreement.

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Registration Rights Agreement

     “Registrable Securities” shall mean the Securities; provided, however, that a Security
shall cease to be a Registrable Security when (i) in the circumstances contemplated by Section
2(a), the Security has been exchanged for an Exchange Security in an Exchange Offer as
contemplated in Section 2(a) (provided that any Exchange Security that, pursuant to the last two
sentences of Section 2(a), is included in a prospectus for use in connection with resales by
broker-dealers shall be deemed to be a Registrable Security with respect to Sections 5, 6 and 9
until resale of such Registrable Security has been effected within the period referred to in
Section 2(a)); (ii) in the circumstances contemplated by Section 2(b), a Shelf Registration
Statement registering such Security under the Securities Act has been declared or becomes
effective and such Security has been sold or otherwise transferred by the holder thereof
pursuant to and in a manner contemplated by such effective Shelf Registration Statement; (iii)
such Security is sold pursuant to Rule 144 under circumstances in which any legend borne by such
Security relating to restrictions on transferability thereof, under the Securities Act or
otherwise, is removed by the Company or pursuant to the Indenture; (iv) such Security is
eligible to be sold pursuant to paragraph (k) of Rule 144; or (v) such Security shall cease to
be outstanding.

     “Registration Default” shall have the meaning assigned thereto in Section 2(c) hereof.

     “Registration Expenses” shall have the meaning assigned thereto in Section 4 hereof.

     “Resale Period” shall have the meaning assigned thereto in Section 2(a) hereof.

     “Restricted Holder” shall mean (i) a holder that is an affiliate of the Company within the
meaning of Rule 405, (ii) a holder who acquires Exchange Securities outside the ordinary course
of such holder’s business, (iii) a holder who has arrangements or understandings with any person
to participate in the Exchange Offer for the purpose of distributing Exchange Securities and
(iv) a holder that is a broker-dealer, but only with respect to Exchange Securities received by
such broker-dealer pursuant to an Exchange Offer in exchange for Registrable Securities acquired
by the broker-dealer directly from the Company.

     “Rule 144,” “Rule 405” and “Rule 415” shall mean, in each case, such rule promulgated under
the Securities Act (or any successor provision), as the same shall be amended from time to time.

     “Securities” shall mean, collectively, the 6.0% Senior Subordinated Notes due 2015 of the
Company to be issued and sold to the Purchaser, and securities issued in exchange therefor or in
lieu thereof pursuant to the Indenture. Each Security is entitled to the benefit of each
subsidiary guaranty by each Subsidiary Guarantor provided for in the Indenture (the “Subsidiary
Guaranties”) and, unless the context otherwise requires, any reference herein to a “Security,”
an “Exchange Security” or a “Registrable Security” shall include a reference to the Subsidiary
Guaranties.

     “Securities Act” shall mean the Securities Act of 1933, or any successor thereto, as the
same shall be amended from time to time.

     “Shelf Registration” shall have the meaning assigned thereto in Section 2(b) hereof.

     “Shelf Registration Suspension” shall have the meaning assigned thereto in Section 3(i)
hereof.

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Registration Rights Agreement

     “Shelf Registration Statement” shall have the meaning assigned thereto in Section 2(b)
hereof.

     “Subsidiary Guarantor” shall mean each Subsidiary (as such term is defined in the
Indenture) of the Company that executes the Indenture as a guarantor on the date of issue of the
Securities and each other Subsidiary of the Company that thereafter guarantees the Securities
pursuant to the terms of the Indenture, in each case unless and until such Subsidiary is
released from its obligations under its Subsidiary Guaranty pursuant to the terms of the
Indenture. As of the issue date, the Subsidiary Guarantors are EAP Energy, Inc., EAP Energy
Services, L.P., EAP Operating, Inc., EAP Properties, Inc., Encore Operating, L.P and Encore
Operating Louisiana, LLC.

     “Suspension Notice” shall have the meaning assigned thereto in Section 3(i) hereof.

     “Trust Indenture Act” shall mean the Trust Indenture Act of 1939, or any successor thereto,
and the rules, regulations and forms promulgated thereunder, all as the same shall be amended
from time to time.

               Unless the context otherwise requires, any reference herein to a “Section” or “clause” refers
to a Section or clause, as the case may be, of this Registration Rights Agreement, and the words
“herein,” “hereof” and “hereunder” and other words of similar import refer to this Registration
Rights Agreement as a whole and not to any particular Section or other subdivision.

               2. Registration Under the Securities Act.

     (a) Except as set forth in Section 2(b) below, the Company agrees to file under the
Securities Act, no later than 90 days after the Closing Date, a registration statement relating
to an offer to exchange (such registration statement, the “Exchange Offer Registration
Statement”, and such offer, the “Exchange Offer”) any and all of the Securities for a like
aggregate principal amount of debt securities issued by the Company and guaranteed by the
Subsidiary Guarantors, which debt securities and subsidiary guaranties are substantially
identical to the Securities (and are entitled to the benefits of a trust indenture which is
substantially identical to the Indenture or is the Indenture and which has been qualified under
the Trust Indenture Act), except that they have been registered pursuant to an effective
registration statement under the Securities Act and do not contain provisions for the additional
interest contemplated in Section 2(c) below (such new debt securities hereinafter called
“Exchange Securities”). The Company agrees to use its reasonable best efforts to cause the
Exchange Offer Registration Statement to become effective under the Securities Act no later than
180 days after the Closing Date. The Exchange Offer will be registered under the Securities Act
on the appropriate form and will comply with all applicable tender offer rules and regulations
under the Exchange Act. The Company further agrees to use its reasonable best efforts to
commence and complete the Exchange Offer as soon as practicable after such registration
statement has become effective, hold the Exchange Offer open for at least 30 days and exchange
the Exchange Securities for all Registrable Securities that may legally be exchanged in the
Exchange Offer and that have been properly tendered and not withdrawn on or prior to the
expiration of the Exchange Offer. The Exchange Offer will be deemed to have been “completed”
only if the debt securities and subsidiary guaranties received by holders other than Restricted
Holders in the Exchange Offer for Registrable Securities are, upon receipt, transferable by each
such holder without restriction under the Securities Act (except for the requirement to deliver
a prospectus included in the Exchange Offer Registration Statement applicable to resales by

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Registration Rights Agreement

broker-dealers of Exchange Securities received by them pursuant to the Exchange Offer in
exchange for Securities other than those acquired by such broker-dealers directly from the
Company) and the Exchange Act and without material restrictions under the blue sky or securities
laws of a substantial majority of the States of the United States of America. The Exchange Offer
shall be deemed to have been completed upon the earlier to occur of (i) the Company having
exchanged the Exchange Securities for all outstanding Registrable Securities pursuant to the
Exchange Offer and (ii) the Company having exchanged, pursuant to the Exchange Offer, Exchange
Securities for all Registrable Securities that may legally be exchanged in the Exchange Offer
and that have been properly tendered and not withdrawn before the expiration of the Exchange
Offer, which shall be on a date that is at least 30 days following the commencement of the
Exchange Offer. The Company agrees (x) (other than resales by broker-dealers of Exchange
Securities received by them pursuant to the Exchange Offer in exchange for Securities acquired
by them directly from the Company) to include in the Exchange Offer Registration Statement a
prospectus for use in any resales by any holder of Exchange Securities that is a broker-dealer
and (y) to keep such Exchange Offer Registration Statement effective, and to amend and
supplement the prospectus contained therein as necessary, for a period (the “Resale Period”)
beginning when Exchange Securities are first issued in the Exchange Offer and ending upon the
earlier of the expiration of the 180th day after the Exchange Offer has been completed or such
time as such broker-dealers no longer own any Registrable Securities (or for such longer period
if extended pursuant to the terms of this Agreement). With respect to such Exchange Offer
Registration Statement, such holders shall have the benefit of the rights of indemnification and
contribution set forth in Sections 6(a), (c), (d) and (e) hereof. If, upon consummation of the
Exchange Offer, any Purchaser holds Securities acquired as part of its initial distribution, the
Company, simultaneously with the delivery of the Exchange Securities pursuant to the Exchange
Offer, shall issue and deliver to such Purchaser, upon written request of such Purchaser, in
exchange for the Securities held by such Purchaser, a like principal amount of debt securities
of the Company issued under the Indenture and identical in all material respects to the
Securities (the “Private Exchange Securities”).

     (b) Subject to Section 3(i), if (i) on or prior to the time the Exchange Offer is completed
existing Commission interpretations are changed such that the debt securities or the Subsidiary
Guaranties received by holders other than Restricted Holders in the Exchange Offer for
Registrable Securities are not or would not be, upon receipt, transferable by each such holder
without restriction under the Securities Act (except for the requirement to deliver a prospectus
included in the Exchange Offer Registration Statement applicable to resales by broker-dealers of
Exchange Securities received by them pursuant to the Exchange Offer in exchange for Securities
other than those acquired by such broker-dealers directly from the Company), (ii) the Exchange
Offer has not been completed within 220 days following the Closing Date, (iii) any Purchaser so
requests with respect to the Securities not eligible to be exchanged for Exchange Securities in
the Exchange Offer and held by it following consummation of the Exchange Offer or (iv) the
Exchange Offer is not available to any holder of the Securities (other than a broker-dealer
participating in the Exchange Offer), the Company shall, in lieu of (or, in the case of clause
(iii) or (iv), in addition to) conducting the Exchange Offer contemplated by Section 2(a), file
under the Securities Act no later than the later of 75 days after the time such obligation to
file arises, a “shelf” registration statement providing for the registration of, and the sale on
a continuous or delayed basis by the holders of, all of the Registrable Securities, pursuant to
Rule 415 or any similar rule that may be adopted by the Commission (such filing, the “Shelf
Registration” and such registration statement, the “Shelf Registration Statement”). The Company
agrees to use its reasonable best efforts (x) to cause the Shelf Registration
Statement to become or be

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Registration Rights Agreement

declared effective (a) in the case of clause (i) above, no later
than 180 days after the Closing Date, and (b) in the case of clause (ii), (iii) or (iv) above,
no later than 75 days after the date such Shelf Registration Statement is filed; and, subject to
Section 3(i), to keep such Shelf Registration Statement continuously effective for a period
ending on the earlier of the second anniversary of the Effective Time (or for such longer period
if extended pursuant to the terms of this Agreement) or such time as there are no longer any
Registrable Securities outstanding; provided, however, that no holder shall be entitled to be
named as a selling securityholder in the Shelf Registration Statement or to use the prospectus
forming a part thereof for resales of Registrable Securities unless such holder agrees in
writing to be bound by all of the provisions of this Agreement and such holder is an Electing
Holder, and (y) after the Effective Time of the Shelf Registration Statement, promptly upon the
request of any holder of Registrable Securities that is not then an Electing Holder, to take any
action reasonably necessary to enable such holder to use the prospectus forming a part thereof
for resales of Registrable Securities, including, without limitation, any action necessary to
identify such holder as a selling securityholder in the Shelf Registration Statement; provided,
however, that nothing in this Clause (y) shall relieve any such holder of the obligation to
return a completed and signed Notice and Questionnaire to the Company in accordance with Section
3(d)(iii) hereof. The Company further agrees to supplement or make amendments to the Shelf
Registration Statement, as and when required by the rules, regulations or instructions
applicable to the registration form used by the Company for such Shelf Registration Statement or
by the Securities Act or rules and regulations thereunder for shelf registration, and the
Company agrees to furnish to each Electing Holder copies of any such supplement or amendment
prior to its being used or promptly following its filing with the Commission.

     (c) In the event that (i) the Company has not filed the Exchange Offer Registration
Statement or Shelf Registration Statement on or before the date on which such registration
statement is required to be filed pursuant to Section 2(a) or 2(b), respectively, or (ii) such
Exchange Offer Registration Statement or Shelf Registration Statement has not become effective
or been declared effective by the Commission on or before the date on which such registration
statement is required to become or be declared effective pursuant to Section 2(a) or 2(b),
respectively, or (iii) the Exchange Offer has not been completed on or before the
40th day after the initial effective date of the Exchange Offer Registration
Statement relating to the Exchange Offer (if the Exchange Offer is then required to be made) or
(iv) any Shelf Registration Suspension exceeds the number of days permitted for such suspension
under Section 3(i), or (v) any Exchange Offer Registration Statement or Shelf Registration
Statement required by Section 2(a) or 2(b) hereof is filed and declared effective but shall
thereafter either be withdrawn by the Company or shall become subject to an effective stop order
issued pursuant to Section 8(d) of the Securities Act suspending the effectiveness of such
registration statement (except as specifically permitted herein) without being succeeded as
promptly as practicable by an additional registration statement filed and declared effective
(each such event referred to in clauses (i) through (v), a “Registration Default” and each
period during which a Registration Default has occurred and is continuing, a “Registration
Default Period”), then, as liquidated damages for such Registration Default, subject to the
provisions of Section 9(b), additional interest (“Additional Interest”), in addition to the Base
Interest, shall accrue at a per annum rate of 0.25% for the first 90 days of the Registration
Default Period, at a per annum rate of 0.50% for the second 90 days of the Registration Default
Period, at a per annum rate of 0.75% for the third 90 days of the Registration Default Period
and at a per annum rate of 1.0% thereafter for the remaining portion of the Registration Default
Period.

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Registration Rights Agreement

     (d) The Company shall take, and shall cause the Subsidiary Guarantors to take, all actions
reasonably necessary or advisable to be taken by it to ensure that the transactions contemplated
herein are effected as so contemplated.

     (e) Any reference herein to a registration statement as of any time shall be deemed to
include any document incorporated, or deemed to be incorporated, therein by reference as of such
time and any reference herein to any post-effective amendment to a registration statement as of
any time shall be deemed to include any document incorporated, or deemed to be incorporated,
therein by reference as of such time.

          3. Registration Procedures.

               If the Company files a registration statement pursuant to Section 2(a) or Section 2(b), the
following provisions shall apply:

     (a) At or before the Effective Time of the Exchange Offer or the Shelf Registration, as the
case may be, the Company shall qualify the Indenture under the Trust Indenture Act of 1939.

     (b) In the event that such qualification would require the appointment of a new trustee
under the Indenture, the Company shall appoint a new trustee thereunder pursuant to the
applicable provisions of the Indenture.

     (c) In connection with the Company’s obligations with respect to the registration of
Exchange Securities as contemplated by Section 2(a) (the “Exchange Registration”), if
applicable, the Company shall:

     (i) prepare and file with the Commission no later than 90 days after the Closing
Date, an Exchange Offer Registration Statement on any form which may be utilized by the
Company and which shall permit the Exchange Offer and resales of Exchange Securities by
broker-dealers during the Resale Period to be effected as contemplated by Section 2(a),
and use its reasonable best efforts to cause such Exchange Offer Registration Statement
to become effective no later than 180 days after the Closing Date;

     (ii) as soon as practicable prepare and file with the Commission such amendments
and supplements to such Exchange Offer Registration Statement and the prospectus
included therein as may be necessary to effect and maintain the effectiveness of such
Exchange Offer Registration Statement for the periods and purposes contemplated in
Section 2(a) hereof and as may be required by the applicable rules and regulations of
the Commission and the instructions applicable to the form of such Exchange Offer
Registration Statement, and promptly provide each broker-dealer holding Exchange
Securities with such number of copies of the prospectus included therein (as then
amended or supplemented), in conformity in all material respects with the requirements
of the Securities Act and the Trust Indenture Act and the rules and regulations of the
Commission thereunder, as such broker-dealer reasonably may request prior to the
expiration of the Resale Period, for use in connection with resales of Exchange
Securities;

     (iii) furnish to each Purchaser, prior to the filing thereof with the Commission, a
copy of the Exchange Offer Registration Statement and each amendment and each
supplement, if any, and, in the event a Purchaser is participating in the
Exchange

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Registration Rights Agreement

Offer, the Company shall use its reasonable best efforts to reflect in
each such document, when so filed with the Commission, such comments as such Purchaser
may reasonably request in writing to the Company or its counsel, and, if requested by a
Purchaser in writing to the Company or its counsel, include the information required by
Items 507 and 508 of Regulation S-K under the Securities Act, as applicable, and such
other items as may be required by the Securities Act;

     (iv) promptly notify each Purchaser, each holder and each broker-dealer that has
requested copies of the prospectus included in such registration statement and notified
the Company in writing that it will be a broker-dealer participating in the Exchange
Offer, and confirm such notice in writing, (A) when such Exchange Offer Registration
Statement or the prospectus included therein or any prospectus amendment or supplement
or post-effective amendment has been filed, and, with respect to such Exchange Offer
Registration Statement or any post-effective amendment, when the same has become
effective, (B) of any comments made to the Company or its counsel by the Commission and
by the blue sky or securities commissioner or regulator of any state with respect
thereto or any request made to the Company or its counsel by the Commission for
amendments or supplements to such Exchange Offer Registration Statement or prospectus
or for additional information, (C) of the issuance by the Commission of any stop order
suspending the effectiveness of such Exchange Offer Registration Statement or the
initiation or threatening of any proceedings for that purpose, (D) if at any time the
Company becomes aware that the representations and warranties of the Company
contemplated by Section 5 cease to be true and correct in all material respects, (E) of
the receipt by the Company or its legal counsel of any notification with respect to the
suspension of the qualification of the Exchange Securities for sale in any jurisdiction
or the initiation or threatening of any proceeding for such purpose, or (F) at any time
during the Resale Period when a prospectus is required to be delivered under the
Securities Act, that such Exchange Offer Registration Statement, prospectus, prospectus
amendment or supplement or post-effective amendment does not conform in all material
respects to the applicable requirements of the Securities Act and the Trust Indenture
Act and the rules and regulations of the Commission thereunder or contains an 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 in light of the
circumstances then existing;

     (v) in the event that the Company would be required, pursuant to Section
3(c)(iv)(F) above, to notify any Purchaser, holder or broker-dealers holding Exchange
Securities, without unreasonable delay prepare and furnish to each such holder a
reasonable number of copies of a prospectus supplemented or amended so that, as
thereafter delivered to purchasers of such Exchange Securities during the Resale Period,
such prospectus shall conform in all material respects to the applicable requirements of
the Securities Act and the Trust Indenture Act and the rules and regulations of the
Commission thereunder and shall not contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing; and in
the event the Purchaser, the holder or the broker dealer must suspend the use of such
prospectus, the period of effectiveness of the Exchange Offer Registration Statement
provided for in 2(a) shall each be extended by the number of days from and including the
date of giving of such
notice to and

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Registration Rights Agreement

including the date the holders of the Securities shall have received
such amended or supplemented prospectus;

     (vi) deliver to each Purchaser, each broker-dealer participating in such Exchange
Offer and any other holder who so requests and any other persons required to deliver a
prospectus following the Registered Exchange Offer, without charge, at least one copy of
the Exchange Offer Registration Statement and any post-effective amendments thereto,
including financial statements and, if requested, all exhibits thereto, and as many
copies of the final prospectus included in the Exchange Offer Registration Statement and
any amendment or supplement thereto as such persons may reasonably request;

     (vii) use its reasonable best efforts to obtain the withdrawal of any order
suspending the effectiveness of such Exchange Offer Registration Statement or any
post-effective amendment thereto at the earliest practicable date;

     (viii) use its reasonable best efforts to (A) register or qualify the Exchange
Securities under the securities laws or blue sky laws of such jurisdictions as are
contemplated by Section 2(a) no later than the commencement of the Exchange Offer, (B)
keep such registrations or qualifications in effect and comply with such laws so as to
permit the continuance of offers, sales and dealings therein in such jurisdictions until
the expiration of the Resale Period and (C) take any and all other actions as may be
reasonably necessary or advisable to enable each broker-dealer holding Exchange
Securities to consummate the disposition thereof in such jurisdictions; provided,
however, that neither the Company nor any Subsidiary Guarantor shall be required for any
such purpose to (1) qualify as a foreign corporation in any jurisdiction wherein it
would not otherwise be required to qualify but for the requirements of this Section
3(c)(viii), (2) consent to general service of process in any such jurisdiction or (3)
make any changes to its certificate of incorporation or by-laws or any agreement between
it and its stockholders, partners or members, as the case may be;

     (ix) use its reasonable best efforts to obtain the consent or approval of each
governmental agency or authority, whether federal, state or local, which may be required
to effect the Exchange Registration, the Exchange Offer and the offering and sale of
Exchange Securities by broker-dealers during the Resale Period;

     (x) provide a CUSIP number for all Exchange Securities, not later than the
applicable Effective Time;

     (xi) permit holders to withdraw tendered securities at any time prior to the close
of business, New York time, on the last business day on which the Registered Exchange
Offer shall remain open; and

     (xii) comply with all applicable rules and regulations of the Commission, and make
generally available to its securityholders (or otherwise provide in accordance with
Section 11(a) of the Securities Act) as soon as practicable but no later than 45 days
after the end of a 12-month period (or 90 days if such period is a fiscal year)
beginning with the first month of the Company’s fiscal quarter commencing after the
effective date of the Registration Statement, an earning statement of the Company
covering such 12-month period and complying with Section 11(a) of the Securities Act
(including, at the option of the Company, Rule 158 thereunder).

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Registration Rights Agreement

     (d) In connection with the Company’s obligations with respect to the Shelf Registration, if
applicable, the Company shall, subject to Section 3(i):

     (i) prepare and file with the Commission within the time periods specified in
Section 2(b), a Shelf Registration Statement on any form which may be utilized by the
Company and which shall register all of the Registrable Securities for resale by the
holders thereof in accordance with such method or methods of disposition as may be
specified by such of the holders as, from time to time, may be Electing Holders and use
its reasonable best efforts to cause such Shelf Registration Statement to become
effective within the time periods specified in Section 2(b);

     (ii) not less than 30 calendar days prior to the Effective Time of the Shelf
Registration Statement, mail the Notice and Questionnaire to the holders of Registrable
Securities; no holder shall be entitled to be named as a selling securityholder in the
Shelf Registration Statement as of the Effective Time, and no holder shall be entitled
to use the prospectus forming a part thereof for resales of Registrable Securities 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 of Registrable Securities shall have at least 28 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;

     (iii) furnish to each Purchaser and any other holder who so requests in writing,
prior to the filing thereof with the Commission, a copy of the Shelf Registration
Statement and each amendment and each supplement, if any, and, in the event a Purchaser
is participating in the Shelf Registration Offer, the Company shall use its reasonable
best efforts to reflect in each such document, when so filed with the Commission, such
comments as such Purchaser may reasonably request in writing to the Company or its
counsel;

     (iv) after the Effective Time of the Shelf Registration Statement, upon the request
of any holder of Registrable Securities that is not then an Electing Holder, promptly
send a Notice and Questionnaire to such holder; provided that the Company shall not be
required to take any action to name such holder as a selling securityholder in the Shelf
Registration Statement or to enable such holder to use the prospectus forming a part
thereof for resales of Registrable Securities until such holder has returned a completed
and signed Notice and Questionnaire to the Company;

     (v) as soon as practicable prepare and file with the Commission such amendments and
supplements to such Shelf Registration Statement and the prospectus included therein as
may be necessary to effect and maintain the effectiveness of such Shelf Registration
Statement for the period specified in Section 2(b) hereof and as may be required by the
applicable rules and regulations of the Commission and the instructions applicable to
the form of such Shelf Registration Statement, and furnish to the Electing Holders
copies of any such supplement or amendment simultaneously with or prior to its being
used or filed with the Commission;

     (vi) comply with the provisions of the Securities Act with respect to the
disposition of all of the Registrable Securities covered by such Shelf Registration

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Registration Rights Agreement

Statement in accordance with the intended methods of disposition by the Electing
Holders provided for in such Shelf Registration Statement;

     (vii) provide (A) the Electing Holders, (B) the underwriters (which term, for
purposes of this Registration Rights Agreement, shall include a person deemed to be an
underwriter within the meaning of Section 2(a)(11) of the Securities Act), if any,
thereof, (C) any sales or placement agent therefor, (D) not more than one counsel for
any such underwriter or agent and (E) not more than one counsel for all the Electing
Holders the opportunity to participate in the preparation of such Shelf Registration
Statement, each prospectus included therein or filed with the Commission and each
amendment or supplement thereto;

     (viii) for a reasonable period prior to the filing of such Shelf Registration
Statement, and throughout the period specified in Section 2(b), make available at
reasonable times at the Company’s principal place of business or such other reasonable
place for inspection by the persons referred to in Section 3(d)(vii) who shall certify
to the Company that they have a current intention to sell the Registrable Securities
pursuant to the Shelf Registration such financial and other information and books and
records of the Company, and cause the officers, employees, counsel and independent
certified public accountants of the Company to respond to such inquiries, as shall be
reasonably necessary, in the judgment of the respective counsel referred to in such
Section, to conduct a reasonable investigation within the meaning of Section 11 of the
Securities Act; provided, however, that each such party shall be required to maintain in
confidence and not to disclose to any other person any information or records reasonably
designated by the Company as being confidential, until such time as (A) such information
becomes a matter of public record (whether by virtue of its inclusion in such
registration statement or otherwise, but not because of disclosure, unauthorized by the
Company or its representatives, by such person or its representatives), or (B) such
person shall be required so to disclose such information pursuant to a subpoena or order
of any court or other governmental agency or body having jurisdiction over the matter
(subject to the requirements of such order, and only after such person shall have given
the Company prompt prior written notice of such requirement), or (C) such information is
required to be set forth in such Shelf Registration Statement or the prospectus included
therein or in an amendment to such Shelf Registration Statement or an amendment or
supplement to such prospectus in order that such Shelf Registration Statement,
prospectus, amendment or supplement, as the case may be, complies with applicable
requirements of the federal securities laws and the rules and regulations of the
Commission and does not contain an untrue statement of a material fact or omit to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing;

     (ix) promptly notify each of the Electing Holders, any sales or placement agent
therefor and any underwriter thereof (which notification may be made through any
managing underwriter that is a representative of such underwriter for such purpose) and
confirm such advice in writing, (A) when such Shelf Registration Statement or the
prospectus included therein or any prospectus amendment or supplement or post-effective
amendment has been filed, and, with respect to such Shelf Registration Statement or any
post-effective amendment, when the same has become effective, (B) of any comments made
to the Company or its counsel by the

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Registration Rights Agreement

Commission and by the blue sky or securities commissioner or regulator of any state
with respect thereto or any request made to the Company or its counsel by the Commission
for amendments or supplements to such Shelf Registration Statement or prospectus or for
additional information, (C) of the issuance by the Commission of any stop order
suspending the effectiveness of such Shelf Registration Statement or the initiation or
threatening of any proceedings for that purpose, (D) if at any time the Company becomes
aware that the representations and warranties of the Company contemplated by Section
3(d)(xviii) or Section 5 cease to be true and correct in all material respects, (E) of
the receipt by the Company of any notification with respect to the suspension of the
qualification of the Registrable Securities for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose, or (F) if at any time when
a prospectus is required to be delivered under the Securities Act, that such Shelf
Registration Statement, prospectus, prospectus amendment or supplement or post-effective
amendment does not conform in all material respects to the applicable requirements of
the Securities Act and the Trust Indenture Act and the rules and regulations of the
Commission thereunder or contains an 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 in light of the circumstances then existing;

     (x) use its reasonable best efforts to obtain the withdrawal of any order
suspending the effectiveness of such registration statement or any post-effective
amendment thereto at the earliest practicable date;

     (xi) if requested by any managing underwriter or underwriters, any placement or
sales agent or any Electing Holder, promptly incorporate in a prospectus supplement or
post-effective amendment such information as is required by the applicable rules and
regulations of the Commission and as such managing underwriter or underwriters, such
agent or such Electing Holder reasonably specifies should be included therein relating
to the terms of the sale of such Registrable Securities, including information with
respect to the principal amount of Registrable Securities being sold by such Electing
Holder or agent or to any underwriters, the name and description of such Electing
Holder, agent or underwriter, the offering price of such Registrable Securities and any
discount, commission or other compensation payable in respect thereof, the purchase
price being paid therefor by such underwriters and with respect to any other terms of
the offering of the Registrable Securities to be sold by such Electing Holder or agent
or to such underwriters; and make all required filings of such prospectus supplement or
post-effective amendment promptly after notification of the matters to be incorporated
in such prospectus supplement or post-effective amendment;

     (xii) furnish to each Electing Holder, each placement or sales agent, if any,
therefor, each underwriter, if any, thereof and the respective counsel referred to in
Section 3(d)(vii) an executed copy (or, in the case of an Electing Holder, a conformed
copy) of such Shelf Registration Statement, each such amendment and supplement thereto
(in each case including all exhibits thereto (in the case of an Electing Holder of
Registrable Securities, upon request) and documents incorporated by reference therein)
and such number of copies of such Shelf Registration Statement (excluding exhibits
thereto and documents incorporated by reference therein unless specifically so requested
by such Electing Holder, agent or underwriter, as the case may be) and of the prospectus
included in such Shelf

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Registration Rights Agreement

Registration Statement (including each preliminary prospectus and any summary
prospectus), in conformity in all material respects with the applicable requirements of
the Securities Act and the Trust Indenture Act and the rules and regulations of the
Commission thereunder, and such other documents, as such Electing Holder, agent, if any,
and underwriter, if any, may reasonably request in order to facilitate the offering and
disposition of the Registrable Securities owned by such Electing Holder, offered or sold
by such agent or underwritten by such underwriter and to permit such Electing Holder,
agent and underwriter to satisfy the prospectus delivery requirements of the Securities
Act; and the Company hereby consents to the use of such prospectus (including such
preliminary and summary prospectus) and any amendment or supplement thereto by each such
Electing Holder and by any such agent and underwriter, in each case in the form most
recently provided to such person by the Company, in connection with the offering and
sale of the Registrable Securities covered by the prospectus (including such preliminary
and summary prospectus) or any supplement or amendment thereto;

     (xiii) use its reasonable best efforts to (A) register or qualify the Registrable
Securities to be included in such Shelf Registration Statement under such securities
laws or blue sky laws of such jurisdictions as any Electing Holder and each placement or
sales agent, if any, therefor and underwriter, if any, thereof shall reasonably request,
(B) keep such registrations or qualifications in effect and comply with such laws so as
to permit the continuance of offers, sales and dealings therein in such jurisdictions
during the period the Shelf Registration is required to remain effective under Section
2(b) above and for so long as may be necessary to enable any such Electing Holder, agent
or underwriter to complete its distribution of Securities pursuant to such Shelf
Registration Statement (so long as such distribution is commenced during the period
during which the Shelf Registration Statement is required to remain effective pursuant
to Section 2(b)) and (C) take any and all other actions as may be reasonably necessary
or advisable to enable each such Electing Holder, agent, if any, and underwriter, if
any, to consummate the disposition in such jurisdictions of such Registrable Securities;
provided, however, that neither the Company nor any Subsidiary Guarantor shall be
required for any such purpose to (1) qualify as a foreign corporation in any
jurisdiction wherein it would not otherwise be required to qualify but for the
requirements of this Section 3(d)(xiii), (2) consent to general service of process in
any such jurisdiction or (3) make any changes to its certificate of incorporation or
by-laws or any agreement between it and its stockholders, partners or members, as the
case may be;

     (xiv) use its reasonable best efforts to obtain the consent or approval of each
governmental agency or authority, whether federal, state or local, which may be required
to effect the Shelf Registration or the offering or sale in connection therewith or to
enable the selling holder or holders to offer, or to consummate the disposition of,
their Registrable Securities;

     (xv) unless any Registrable Securities shall be in book-entry only form, cooperate
with the Electing Holders and the managing underwriters, if any, to facilitate the
timely preparation and delivery of certificates representing Registrable Securities to
be sold, which certificates, if so required by any securities exchange upon which any
Registrable Securities are listed, shall be penned, lithographed or engraved, or
produced by any combination of such methods, on steel engraved borders, and which
certificates shall not bear any restrictive legends; and, in the

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Registration Rights Agreement

case of an underwritten offering, enable such Registrable Securities to be in such
denominations and registered in such names as the managing underwriters may request at
least two business days prior to any sale of the Registrable Securities;

     (xvi) provide a CUSIP number for all Registrable Securities, not later than the
applicable Effective Time;

     (xvii) enter into one or more underwriting agreements, engagement letters, agency
agreements, “best efforts” underwriting agreements or similar agreements, as
appropriate, including customary provisions relating to indemnification and
contribution, and take such other actions in connection therewith as any Electing
Holders aggregating at least 20% in aggregate principal amount of the Registrable
Securities at the time outstanding shall request and as are customarily taken in order
to expedite or facilitate the disposition of such Registrable Securities;

     (xviii) whether or not an agreement of the type referred to in Section 3(d)(xvii)
hereof is entered into and whether or not any portion of the offering contemplated by
the Shelf Registration is an underwritten offering or is made through a placement or
sales agent or any other entity, (A) make such representations and warranties to the
Electing Holders and the placement or sales agent, if any, therefor and the
underwriters, if any, thereof in form, substance and scope as are customarily made in
connection with an offering of debt securities pursuant to any appropriate agreement or
to a registration statement filed on the form applicable to the Shelf Registration; (B)
obtain an opinion of counsel to the Company in customary form and covering such matters,
of the type customarily covered by such an opinion, as the managing underwriters, if
any, or as any Electing Holders of at least 20% in aggregate principal amount of the
Registrable Securities at the time outstanding may reasonably request, addressed to such
Electing Holder or Electing Holders and the placement or sales agent, if any, therefor
and the underwriters, if any, thereof and dated the effective date of such Shelf
Registration Statement (and if such Shelf Registration Statement contemplates an
underwritten offering of a part or all of the Registrable Securities, dated the date of
the closing under the underwriting agreement relating thereto) (it being agreed that the
matters to be covered by such opinion shall include the due incorporation and good
standing of the Company and its subsidiaries; the due authorization, execution and
delivery of the relevant agreement of the type referred to in Section 3(d)(xvii) hereof;
the due authorization, execution and issuance, and the validity and enforceability, of
the Securities; the absence of material legal or governmental proceedings involving the
Company; the absence of a breach by the Company or any of its subsidiaries of, or a
default under, material agreements binding upon the Company or any subsidiary of the
Company; the absence of certain governmental approvals required to be obtained in
connection with the Shelf Registration, the offering and sale of the Registrable
Securities, this Registration Rights Agreement or any agreement of the type referred to
in Section 3(d)(xvii) hereof, except such approvals as may be required under state
securities or blue sky laws; the material compliance as to form of such Shelf
Registration Statement and any documents incorporated by reference therein and of the
Indenture with the requirements of the Securities Act and the Trust Indenture Act and
the rules and regulations of the Commission thereunder, respectively; and, a statement
that as of the date of the opinion and of the Shelf Registration Statement or most
recent post-effective amendment thereto, as the case may be, no facts have come to the
attention of such counsel that would lead
such counsel to believe that

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Registration Rights Agreement

such Shelf Registration Statement and the prospectus
included therein, as then amended or supplemented, and the documents incorporated by
reference therein (in each case other than the financial statements or schedules,
including the notes thereto and auditors’ reports thereon, oil and natural gas reserve
evaluations and related calculations and other information of a financial or reserve
nature (including production data)) contained an untrue statement of a material fact or
the omission to state therein a material fact necessary to make the statements therein
not misleading (in the case of such documents, in the light of the circumstances
existing at the time that such documents were filed with the Commission under the
Exchange Act)); (C) obtain a “cold comfort” letter or letters from the independent
certified public accountants of the Company addressed to the selling Electing Holders,
the placement or sales agent, if any, therefor or the underwriters, if any, thereof,
dated (i) the effective date of such Shelf Registration Statement and (ii) the effective
date of any prospectus supplement to the prospectus included in such Shelf Registration
Statement or post-effective amendment to such Shelf Registration Statement which
includes unaudited or audited financial statements as of a date or for a period
subsequent to that of the latest such statements included in such prospectus (and, if
such Shelf Registration Statement contemplates an underwritten offering pursuant to any
prospectus supplement to the prospectus included in such Shelf Registration Statement or
post-effective amendment to such Shelf Registration Statement which includes unaudited
or audited financial statements as of a date or for a period subsequent to that of the
latest such statements included in such prospectus, dated the date of the closing under
the underwriting agreement relating thereto), such letter or letters to be in customary
form and covering such matters of the type customarily covered by letters of such type;
(D) deliver such documents and certificates, including officers’ certificates, as may be
reasonably requested by any Electing Holders of at least 20% in aggregate principal
amount of the Registrable Securities at the time outstanding or the placement or sales
agent, if any, therefor and the managing underwriters, if any, thereof to evidence the
accuracy of the representations and warranties made pursuant to clause (A) above or
those contained in Section 5(a) hereof and the compliance with or satisfaction of any
agreements or conditions contained in the underwriting agreement or other agreement
entered into by the Company or the Subsidiary Guarantor; and (E) undertake such
obligations relating to expense reimbursement, indemnification and contribution as are
provided in Section 6 hereof;

     (xix) notify in writing each holder of Registrable Securities affected thereby of
any proposal by the Company to amend or waive any provision of this Registration Rights
Agreement pursuant to Section 9(h) hereof and of any amendment or waiver effected
pursuant thereto, each of which notices shall contain the text of the amendment or
waiver proposed or effected, as the case may be;

     (xx) in the event that any broker-dealer registered under the Exchange Act shall
underwrite any Registrable Securities or participate as a member of an underwriting
syndicate or selling group or “assist in the distribution” (within the meaning of the
Conduct Rules (the “Conduct Rules) of the National Association of Securities Dealers,
Inc. (“NASD”) or any successor thereto, as amended from time to time) thereof, whether
as a holder of such Registrable Securities or as an underwriter, a placement or sales
agent or a broker or dealer in respect thereof, or otherwise, assist such broker-dealer
in complying with the requirements of such
Conduct Rules, including by (A) if such Conduct Rules shall so require, engaging a
“qualified

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Registration Rights Agreement

independent underwriter” (as defined in such Conduct Rules) to participate in
the preparation of the Shelf Registration Statement relating to such Registrable
Securities, to exercise usual standards of due diligence in respect thereto and, if any
portion of the offering contemplated by such Shelf Registration Statement is an
underwritten offering or is made through a placement or sales agent, to recommend the
yield of such Registrable Securities, (B) indemnifying any such qualified independent
underwriter to the extent of the indemnification of underwriters provided in Section 6
hereof, and (C) providing such information to such broker-dealer as may be required in
order for such broker-dealer to comply with the requirements of the Conduct Rules;

     (xxi) permit holders to withdraw tendered securities at any time prior to the close
of business, New York time, on the last business day on which the Registered Exchange
Offer shall remain open; and

     (xxii) comply with all applicable rules and regulations of the Commission, and make
generally available to its securityholders as soon as practicable but in any event not
later than eighteen months after the effective date of such Shelf Registration
Statement, an earning statement of the Company complying with Section 11(a) of the
Securities Act (including, at the option of the Company, Rule 158 thereunder).

     (e) Subject to Section 3(i), in the event that the Company would be required, pursuant to
Section 3(d)(ix)(F) above, to notify the Electing Holders, the placement or sales agent, if any,
therefor and the managing underwriters, if any, thereof, the Company shall without unreasonable
delay prepare and furnish to each of the Electing Holders, to each placement or sales agent, if
any, and to each such underwriter, if any, a reasonable number of copies of a prospectus
supplemented or amended so that, as thereafter delivered to purchasers of Registrable
Securities, such prospectus shall conform in all material respects to the applicable
requirements of the Securities Act and the Trust Indenture Act and the rules and regulations of
the Commission thereunder and shall not contain an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then existing. Each Electing Holder agrees
that upon receipt of any notice from the Company pursuant to Section 3(d)(ix)(F) hereof, such
Electing Holder shall forthwith discontinue the disposition of Registrable Securities pursuant
to the Shelf Registration Statement applicable to such Registrable Securities until such
Electing Holder shall have received copies of such amended or supplemented prospectus, and if so
directed by the Company, such Electing Holder shall deliver to the Company (at the Company’s
expense) all copies, other than permanent file copies, then in such Electing Holder’s possession
of the prospectus covering such Registrable Securities at the time of receipt of such notice
and, the period of effectiveness of the Shelf Registration Statement provided for in 2(b) shall
each be extended by the number of days from and including the date of giving of such notice to
and including the date the holders of the Securities shall have received such amended or
supplemented prospectus.

     (f) In the event of a Shelf Registration, in addition to the information required to be
provided by each Electing Holder in its Notice Questionnaire, the Company may require such
Electing Holder to furnish to the Company such additional information regarding such Electing
Holder and such Electing Holder’s intended method of distribution of Registrable
Securities as may be required in order to comply with the Securities Act. Each such
Electing

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Registration Rights Agreement

Holder agrees to notify the Company as promptly as practicable of any inaccuracy or
change in information previously furnished by such Electing Holder to the Company or of the
occurrence of any event in either case as a result of which any prospectus relating to such
Shelf Registration contains or would contain an untrue statement of a material fact regarding
such Electing Holder or such Electing Holder’s intended method of disposition of such
Registrable Securities or omits to state any material fact regarding such Electing Holder or
such Electing Holder’s intended method of disposition of such Registrable Securities required to
be stated therein or necessary to make the statements therein not misleading in light of the
circumstances then existing, and promptly to furnish to the Company any additional information
required to correct and update any previously furnished information or required so that such
prospectus shall not contain, with respect to such Electing Holder or the disposition of such
Registrable Securities, 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 in
light of the circumstances then existing.

     (g) As soon as practicable after the close of an Exchange Offer, the Company shall deliver
to the Trustee for cancellation all Securities so accepted for exchange and cause the Trustee to
authenticate and deliver promptly to each Holder of the Securities, Exchange Securities or
Private Securities, as the case may be, equal in principal amount to the Securities of such
holder so accepted for exchange.

     (h) Until the expiration of two years after the Closing Date, the Company will not, and
will not permit any of its “affiliates” (as defined in Rule 144) to, resell any of the
Securities that have been reacquired by any of them except pursuant to an effective registration
statement under the Securities Act.

     (i) Notwithstanding anything in Section 2(b) or Section 3(d) or (e) to the contrary, if the
Company determines in good faith that the filing of any supplement or amendment to a Shelf
Registration Statement, including without limitation a supplement or amendment contemplated by
Section 3(e) hereof, would require the disclosure of information that the Company has a bona
fide business reason to preserve as confidential, or the disclosure of which would materially
adversely affect the Company’s ability to consummate a transaction (whether or not a final
decision has been made to undertake such transaction), then upon written notice of such
determination by the Company (a “Suspension Notice”) to the Electing Holders, the obligation of
the Company to supplement or amend the Shelf Registration Statement (including any action with
respect thereto contemplated by Section 3(e)) will be suspended until the Company notifies the
Electing Holders (a “Suspension Termination Notice”) that the reasons for suspension of such
obligations on the part of the Company no longer exist and the Company amends or supplements the
Shelf Registration Statement as may be required (such suspension, a “Shelf Registration
Suspension”); provided that the aggregate number of days (whether or not consecutive) during
which the Company may delay the filing of any such supplement or amendment shall in no event
exceed (i) 30 days during any period of 90 consecutive days or (ii) 90 days during any period of
12 consecutive months, and the suspension of the Company’s obligation to supplement or amend the
Shelf Registration Statement under the preceding sentence shall not result in any obligation of
the Company to pay Additional Interest pursuant to Section 2(c). If the Company delivers a
Suspension Notice in accordance with this Section 3(i), then the Electing Holders shall suspend
use of the prospectus until the Company delivers a Suspension Termination Notice in accordance
with this Section 3(i).

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Registration Rights Agreement

     (j) As a condition to its participation in the Exchange Offer pursuant to the terms of this
Exchange and Registration Rights Agreement, each holder of Registrable Securities shall furnish,
upon the request of the Company, prior to the consummation thereof, written representations to
the Company (which may be contained in the letter of transmittal contemplated by the Exchange
Offer Registration Statement) in form and substance customary for exchange offers similar to the
Exchange Offer, including without limitation representations to the effect that such holder (i)
is not an affiliate of the Company or any Subsidiary Guarantor, (ii) is not engaged in, and does
not intend to engage in, and has no arrangement or understanding with any person to participate
in, a distribution of the Exchange Securities to be issued in the Exchange Offer and (iii) is
acquiring the Exchange Securities in its ordinary course of business.

     4. Registration Expenses.

               The Company agrees to bear and to pay or cause to be paid promptly all expenses incident to
the Company’s performance of or compliance with this Registration Rights Agreement, including (a)
all Commission and any NASD registration, filing and review fees and expenses including reasonable
fees and disbursements of not more than one counsel for the placement or sales agent or
underwriters in connection with such registration, filing and review, (b) all fees and expenses in
connection with the qualification of the Securities for offering and sale under the State
securities and blue sky laws referred to in Section 3(d)(xiii) hereof and determination of their
eligibility for investment under the laws of such jurisdictions as any managing underwriters or the
Electing Holders may designate, including any reasonable fees and disbursements of not more than
one counsel for the Electing Holders or underwriters in connection with such qualification and
determination, (c) all expenses relating to the preparation, printing, production, distribution and
reproduction of each registration statement required to be filed hereunder, each prospectus
included therein or prepared for distribution pursuant hereto, each amendment or supplement to the
foregoing, the expenses of preparing the Securities for delivery and the expenses of printing or
producing any underwriting agreements, agreements among underwriters, selling agreements and blue
sky or legal investment memoranda and all other documents in connection with the offering, sale or
delivery of Securities to be disposed of (including certificates representing the Securities), (d)
messenger, telephone and delivery expenses relating to the offering, sale or delivery of Securities
and the preparation of documents referred in clause (c) above, (e) fees and expenses of the Trustee
under the Indenture, any agent of the Trustee and any counsel for the Trustee and of any collateral
agent or custodian, (f) internal expenses of the Company (including all salaries and expenses of
the Company’s officers and employees performing legal or accounting duties), (g) fees,
disbursements and expenses of counsel and independent certified public accountants of the Company
(including the expenses of any opinions or “cold comfort” letters required by or incident to such
performance and compliance), (h) reasonable fees, disbursements and expenses of any “qualified
independent underwriter” engaged pursuant to Section 3(d)(xx) hereof, (i) reasonable fees,
disbursements and expenses of one counsel for the Electing Holders retained in connection with a
Shelf Registration, as selected by the Electing Holders of at least a majority in aggregate
principal amount of the Registrable Securities held by Electing Holders (which counsel shall be
reasonably satisfactory to the Company), (j) any fees charged by securities rating services for
rating the Securities, and (k) fees, expenses and disbursements of any other persons, including
special experts, retained by the Company in connection with such registration (collectively, the
“Registration Expenses”). To the extent that any Registration Expenses are reasonably incurred,
assumed or paid by any holder of Registrable Securities or any placement or sales agent therefor or
underwriter thereof, the Company shall reimburse such person for the full amount of the
Registration Expenses so incurred, assumed or paid

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Registration Rights Agreement

promptly after receipt of a request therefor. Notwithstanding the
foregoing, the holders of the Registrable Securities being registered shall pay all agency fees and
commissions and underwriting discounts and commissions attributable to the sale of such Registrable
Securities and the fees and disbursements of any counsel or other advisors or experts retained by
such holders (severally or jointly), other than the counsel and experts specifically referred to
above.

          5. Representations and Warranties.

               The Company and each Subsidiary Guarantor represents and warrants to, and agrees with, each
Purchaser and each of the holders from time to time of Registrable Securities that:

     (a) Each registration statement covering Registrable Securities and each prospectus
(including any preliminary or summary prospectus) contained therein or furnished pursuant to
Section 3(d) or Section 3(c) hereof and any further amendments or supplements to any such
registration statement or prospectus, when it becomes effective or is filed with the Commission,
as the case may be, and, in the case of an underwritten offering of Registrable Securities, at
the time of the closing under the underwriting agreement relating thereto, will conform in all
material respects to the requirements of the Securities Act and the Trust Indenture Act and the
rules and regulations of the Commission thereunder and will not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading; and at all times subsequent to the Effective Time
when a prospectus would be required to be delivered under the Securities Act, other than from
(i) such time as a notice has been given to holders of Registrable Securities pursuant to
Section 3(d)(ix)(F) or Section 3(c)(iv)(F) hereof until (ii) such time as the Company furnishes
an amended or supplemented prospectus pursuant to Section 3(e) or Section 3(c)(v) hereof, each
such registration statement, and each prospectus (including any summary prospectus) contained
therein or furnished pursuant to Section 3(d) or Section 3(c) hereof, as then amended or
supplemented, will conform in all material respects to the requirements of the Securities Act
and the Trust Indenture Act and the rules and regulations of the Commission thereunder and will
not contain an untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading in the light of the
circumstances then existing; provided, however, that this representation and warranty shall not
apply to any statements or omissions made in reliance upon and in conformity with information
furnished in writing to the Company by a holder of Registrable Securities expressly for use
therein.

     (b) Any documents incorporated by reference in any prospectus referred to in Section 5(a)
hereof, when they become or became effective or are or were filed with the Commission, as the
case may be, will conform or conformed in all material respects to the requirements of the
Securities Act or the Exchange Act, as applicable, and none of such documents will contain or
contained an untrue statement of a material fact or will omit or omitted to state a material
fact required to be stated therein or necessary to make the statements therein not misleading;
provided, however, that this representation and warranty shall not apply to any statements or
omissions made in reliance upon and in conformity with information furnished in writing to the
Company by a holder of Registrable Securities expressly for use therein.

     (c) The compliance by the Company with all of the provisions of this Registration Rights
Agreement and the consummation of the transactions herein contemplated will not
conflict with or result in a breach of any of the terms or provisions of, or constitute a
default under, any indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument to

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Registration Rights Agreement

which the Company or any subsidiary of the Company is a party or by which the
Company or any subsidiary of the Company is bound or to which any of the property or assets of
the Company or any subsidiary of the Company is subject, nor will such action result in any
violation of the provisions of the certificate of incorporation, as amended, or the by-laws of
the Company or any Subsidiary Guarantor or any statute or any order, rule or regulation of any
court or governmental agency or body having jurisdiction over the Company or any subsidiary of
the Company or any of their properties except, in each case other than with respect to such
certificate of incorporation or by-laws, for any such conflict, breach, violation or default
that would not, individually or in the aggregate, have a material adverse effect on the
condition (financial or other), business, properties, earnings, assets, stockholders’ equity,
prospects or results of operations of the Company and its subsidiaries taken as a whole; and no
consent, approval, authorization, order, registration or qualification of or with any such court
or governmental agency or body is required for the consummation by the Company and the
Subsidiary Guarantors of the transactions contemplated by this Registration Rights Agreement,
except the registration under the Securities Act of the Securities, qualification of the
Indenture under the Trust Indenture Act and such consents, approvals, authorizations,
registrations or qualifications as may be required under State securities or blue sky laws in
connection with the offering and distribution of the Securities.

     (d) This Registration Rights Agreement has been duly authorized, executed and delivered by
the Company and each Subsidiary Guarantor.

     6. Indemnification.

     (a) Indemnification by the Company and the Subsidiary Guarantors. The Company and each
Subsidiary Guarantor, jointly and severally, will indemnify and hold harmless each of the
holders of Registrable Securities included in an Exchange Offer Registration Statement, each of
the Electing Holders of Registrable Securities included in a Shelf Registration Statement and
each person who participates as a placement or sales agent or as an underwriter in any offering
or sale of such Registrable Securities against any losses, claims, damages or liabilities, joint
or several, to which such holder, agent or underwriter may become subject under the Securities
Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a
material fact contained in any Exchange Offer Registration Statement or Shelf Registration
Statement, as the case may be, under which such Registrable Securities were registered under the
Securities Act, or any preliminary, final or summary prospectus contained therein or furnished
by the Company to any such holder, Electing Holder, agent or underwriter, or any amendment 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 not misleading, and will reimburse such holder, such Electing Holder, such agent and
such underwriter for any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such action or claim as such expenses are incurred; provided,
however, that neither the Company nor any Subsidiary Guarantor shall be liable to any such
person in any such case to the extent that any such loss, claim, damage or liability arises out
of or is based upon an untrue statement or alleged untrue statement or omission or alleged
omission made in such registration statement, or preliminary, final or summary prospectus, or
amendment or supplement thereto, in reliance upon and in
conformity with written information furnished to the Company by such person expressly for
use therein; provided, further, that neither the Company nor any Subsidiary Guarantor shall be
liable for any losses, claims, damages or liabilities, joint or several, arising out of an offer
or sale of

20

 

Registration Rights Agreement

Registrable Securities (i) during any Shelf Registration Suspension in accordance
with Section 3(i) hereof during the permitted time periods provided for therein; provided the
Company provides the Suspension Notice, or (ii) under the circumstances described in Section
3(c)(iv) hereof, during the period following any notification in writing of the Purchaser,
holders and broker-dealers referred to therein, provided such period is not unreasonably long.

     (b) Indemnification by the Holders and any Agents and Underwriters. The Company may
require, as a condition to including any Registrable Securities in any registration statement
filed pursuant to Section 2(b) hereof and to entering into any underwriting agreement with
respect thereto, that the Company shall have received an undertaking reasonably satisfactory to
it from the Electing Holder of such Registrable Securities and from each underwriter named in
any such underwriting agreement, severally and not jointly, to (i) indemnify and hold harmless
the Company and each Subsidiary Guarantor, and all other holders of Registrable Securities,
against any losses, claims, damages or liabilities to which the Company, the Subsidiary
Guarantors or such other holders of Registrable Securities may become subject, joint or several,
under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon an untrue statement or alleged
untrue statement of a material fact contained in such registration statement, or any
preliminary, final or summary prospectus contained therein or furnished by the Company to any
such Electing Holder, agent or underwriter, or any amendment 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 not misleading, in each case to
the extent, but only to the extent, that such untrue statement or alleged untrue statement or
omission or alleged omission was made in reliance upon and in conformity with written
information furnished to the Company by such Electing Holder or underwriter expressly for use
therein, and (ii) reimburse the Company and the Subsidiary Guarantors for any legal or other
expenses reasonably incurred by the Company and the Subsidiary Guarantors in connection with
investigating or defending any such action or claim as such expenses are incurred; provided,
however, that no such Electing Holder shall be required to undertake liability to any person
under this Section 6(b) for any amounts in excess of the dollar amount of the proceeds to be
received by such Electing Holder from the sale of such Electing Holder’s Registrable Securities
pursuant to such registration.

     (c) Notices of Claims, Etc. Promptly after receipt by an indemnified party under subsection
(a) or (b) above of written notice of the commencement of any action, such indemnified party
shall, if a claim in respect thereof is to be made against an indemnifying party pursuant to the
indemnification provisions of or contemplated by this Section 6, notify such indemnifying party
in writing of the commencement of such action; but the omission so to notify the indemnifying
party shall not relieve it from any liability which it may have to any indemnified party
otherwise than under the indemnification provisions of or contemplated by Section 6(a) or 6(b)
hereof. In case any such action shall be brought against any indemnified party and it shall
notify an indemnifying party of the commencement thereof, such indemnifying party shall be
entitled to participate therein and, to the extent that it shall wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably
satisfactory to such indemnified party (who shall not, except with the consent of the
indemnified party, be counsel to the
indemnifying party), and, after notice from the indemnifying party to such indemnified
party of its election so to assume the defense thereof, such indemnifying party shall not be
liable to such indemnified party for any legal expenses of other counsel or any other expenses,
in each case

21

 

Registration Rights Agreement

subsequently incurred by such indemnified party, in connection with the defense
thereof other than reasonable costs of investigation. No indemnifying party shall, without the
written consent of the indemnified party, effect the settlement or compromise of, or consent to
the entry of any judgment with respect to, any pending or threatened action or claim in respect
of which indemnification or contribution may be sought hereunder (whether or not the indemnified
party is an actual or potential party to such action or claim) unless such settlement,
compromise or judgment (i) includes an unconditional release of the indemnified party from all
liability arising out of such action or claim and (ii) does not include a statement as to or an
admission of fault, culpability or a failure to act by or on behalf of any indemnified party.

     (d) Contribution. If for any reason the indemnification provisions contemplated by Section
6(a) or Section 6(b) are unavailable to or insufficient to hold harmless an indemnified party in
respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred
to therein, then each indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or actions in
respect thereof) in such proportion as is appropriate to reflect the relative fault of the
indemnifying party and the indemnified party in connection with the statements or omissions
which resulted in such losses, claims, damages or liabilities (or actions in respect thereof),
as well as any other relevant equitable considerations. The relative fault of such indemnifying
party and indemnified party shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or omission or alleged omission to state a
material fact relates to information supplied by such indemnifying party or by such indemnified
party, and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. The parties hereto agree that it would not be
just and equitable if contributions pursuant to this Section 6(d) were determined by pro rata
allocation (even if the holders or any agents or underwriters or all of them were treated as one
entity for such purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to in this Section 6(d). The amount paid or payable by an
indemnified party as a result of the losses, claims, damages, or liabilities (or actions in
respect thereof) referred to above shall be deemed to include any legal or other fees or
expenses reasonably incurred by such indemnified party in connection with investigating or
defending any such action or claim. Notwithstanding the provisions of this Section 6(d), no
holder shall be required to contribute any amount in excess of the amount by which the dollar
amount of the proceeds received by such holder from the sale of any Registrable Securities
(after deducting any fees, discounts and commissions applicable thereto) exceeds the amount of
any damages which such holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission, and no underwriter shall be required
to contribute any amount in excess of the amount by which the total price at which the
Registrable Securities underwritten by it and distributed to the public were offered to the
public exceeds the amount of any damages which such underwriter has otherwise been required to
pay by reason of such untrue or alleged untrue statement or omission or alleged omission. 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. The holders’ and any underwriters’ obligations in this Section
6(d) to contribute shall be several in proportion to the principal amount of Registrable Securities
registered or underwritten, as the case may be, by them and not joint.

22

 

Registration Rights Agreement

     (e) The obligations of the Company and each Subsidiary Guarantor under this Section 6 shall
be in addition to any liability which the Company or any Subsidiary Guarantor may otherwise have
and shall extend, upon the same terms and conditions, to each officer, director and partner of
each holder, agent and underwriter and each person, if any, who controls any holder, agent or
underwriter within the meaning of the Securities Act; and the obligations of the holders and any
agents or underwriters contemplated by this Section 6 shall be in addition to any liability
which the respective holder, agent or underwriter may otherwise have and shall extend, upon the
same terms and conditions, to each officer, director, manager and partner, as the case may be,
of the Company or any Subsidiary Guarantor and to each person, if any, who controls the Company
or any Subsidiary Guarantor within the meaning of the Securities Act.

     7. Underwritten Offerings.

     (a) Selection of Underwriters. If any of the Registrable Securities covered by the Shelf
Registration are to be sold pursuant to an underwritten offering, the managing underwriter or
underwriters thereof shall be designated by Electing Holders holding at least a majority in
aggregate principal amount of the Registrable Securities to be included in such offering,
provided that such designated managing underwriter or underwriters is or are reasonably
acceptable to the Company.

     (b) Participation by Holders. Each holder of Registrable Securities hereby agrees with each
other such holder that no such holder may participate in any underwritten offering hereunder
unless such holder (i) agrees to sell such holder’s Registrable Securities on the basis provided
in any underwriting arrangements approved by the persons entitled hereunder to approve such
arrangements and (ii) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents reasonably required under the terms of
such underwriting arrangements.

     8. Rule 144.

               The Company covenants to the holders of Registrable Securities that to the extent it shall be
required to do so under the Exchange Act, the Company shall timely file the reports required to be
filed by it under the Exchange Act or the Securities Act (including the reports under Section 13
and 15(d) of the Exchange Act referred to in subparagraph (c)(1) of Rule 144 adopted by the
Commission under the Securities Act) and the rules and regulations adopted by the Commission
thereunder, and shall take such further action as any holder of Registrable Securities may
reasonably request, all to the extent required from time to time to enable such holder to sell
Registrable Securities without registration under the Securities Act within the limitations of the
exemption provided by Rule 144 under the Securities Act, as such Rule may be amended from time to
time, or any similar or successor rule or regulation hereafter adopted by the Commission. Upon the
request of any holder of Registrable Securities in connection with that holder’s sale pursuant to
Rule 144, the Company shall deliver to such holder a written statement as to whether it has
complied with such requirements.

     9. Miscellaneous.

     (a) No Inconsistent Agreements. The Company represents, warrants, covenants and agrees
that it has not granted, and shall not grant, registration rights with respect to
Registrable Securities or any other securities which would be inconsistent with the terms
contained in this Registration Rights Agreement.

23

 

Registration Rights Agreement

     (b) Specific Performance. The parties hereto acknowledge that there would be no adequate
remedy at law if the Company fails to perform any of its obligations hereunder and that the
Purchaser and the holders from time to time of the Registrable Securities may be irreparably
harmed by any such failure, and accordingly agree that the Purchaser and such holders, in
addition to any other remedy to which they may be entitled at law or in equity, shall be
entitled to compel specific performance of the obligations of the Company under this
Registration Rights Agreement in accordance with the terms and conditions of this Registration
Rights Agreement, in any court of the United States or any State thereof having jurisdiction.

     (c) Notices. All notices, requests, claims, demands, waivers and other communications
hereunder shall be in writing and shall be deemed to have been duly given when delivered by
hand, if delivered personally or by courier, or three days after being deposited in the mail
(registered or certified mail, postage prepaid, return receipt requested) as follows: If to the
Company, to it at Encore Acquisition Company, 777 Main Street, Suite 1400, Ft. Worth, Texas
76102, Attention: President, and if to a holder, to the address of such holder set forth in the
security register or other records of the Company, or to such other address as the Company or
any such holder may have furnished to the other in writing in accordance herewith, except that
notices of change of address shall be effective only upon receipt.

     (d) Parties in Interest. All the terms and provisions of this Registration Rights
Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the
parties hereto and the holders from time to time of the Registrable Securities and the
respective successors and assigns of the parties hereto and such holders. In the event that any
transferee of any holder of Registrable Securities shall acquire Registrable Securities, in any
manner, whether by gift, bequest, purchase, operation of law or otherwise, such transferee
shall, without any further writing or action of any kind, be deemed a beneficiary hereof for all
purposes and such Registrable Securities shall be held subject to all of the terms of this
Registration Rights Agreement, and by taking and holding such Registrable Securities such
transferee shall be entitled to receive the benefits of, and be conclusively deemed to have
agreed to be bound by all of the applicable terms and provisions of this Registration Rights
Agreement. If the Company shall so request, any such successor, assign or transferee shall agree
in writing to acquire and hold the Registrable Securities subject to all of the applicable terms
hereof.

     (e) Survival. The respective indemnities, agreements, representations, warranties and each
other provision set forth in this Registration Rights Agreement or made pursuant hereto shall
remain in full force and effect regardless of any investigation (or statement as to the results
thereof) made by or on behalf of any holder of Registrable Securities, any director, officer or
partner of such holder, any agent or underwriter or any director, officer or partner thereof, or
any controlling person of any of the foregoing, and shall survive delivery of and payment for
the Registrable Securities pursuant to the Purchase Agreement and the transfer and registration
of Registrable Securities by such holder and the consummation of an Exchange Offer.

     (f) Governing Law. This Registration Rights Agreement shall be governed by and construed
in accordance with the laws of the State of New York.

     (g) Headings. The descriptive headings of the several Sections and paragraphs of this
Registration Rights Agreement are inserted for convenience only, do not constitute a part of
this Registration Rights Agreement and shall not affect in any way the meaning or interpretation
of this Registration Rights Agreement.

24

 

Registration Rights Agreement

     (h) Entire Agreement; Amendments. This Registration Rights Agreement and the other
writings referred to herein (including the Indenture and the form of Securities) or delivered
pursuant hereto which form a part hereof contain the entire understanding of the parties with
respect to its subject matter. This Registration Rights Agreement supersedes all prior
agreements and understandings between the parties with respect to its subject matter. This
Registration Rights Agreement may be amended and the observance of any term of this Registration
Rights Agreement may be waived (either generally or in a particular instance and either
retroactively or prospectively) only by a written instrument duly executed by the Company and
the holders of at least a majority in aggregate principal amount of the Registrable Securities
at the time outstanding. Each holder of any Registrable Securities at the time or thereafter
outstanding shall be bound by any amendment or waiver effected pursuant to this Section 9(h),
whether or not any notice, writing or marking indicating such amendment or waiver appears on
such Registrable Securities or is delivered to such holder.

     (i) Inspection. For so long as this Registration Rights Agreement shall be in effect, this
Registration Rights Agreement and a complete list of the names and addresses of all the holders
of Registrable Securities shall be made available for inspection and copying on any business day
by any holder of Registrable Securities for proper purposes only (which shall include any
purpose related to the rights of the holders of Registrable Securities under the Securities, the
Indenture and this Agreement) at the offices of the Company at the address thereof set forth in
Section 9(c) above and at the office of the Trustee under the Indenture.

     (j) Counterparts. This agreement may be executed by the parties in counterparts, each of
which shall be deemed to be an original, but all such respective counterparts shall together
constitute one and the same instrument.

25

 

Registration Rights Agreement

               If the foregoing is in accordance with your understanding, please sign and return to us one
for the Company, the Subsidiary Guarantors and each of the Representatives plus one for each
counsel counterparts hereof, and upon the acceptance hereof by you, on behalf of the Purchaser,
this letter and such acceptance hereof shall constitute a binding agreement between the Purchaser,
the Subsidiary Guarantors, and the Company.

	 	 	 	 	 
	 	Very truly yours,

ENCORE ACQUISITION COMPANY

 	 
	 	By:  	/s/ Roy W. Jageman
 	 
	 	 	Roy W. Jageman 	 
	 	 	Executive Vice President, Chief Financial
Officer and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	EAP ENERGY, INC.

 	 
	 	By:  	/s/ Roy W. Jageman
 	 
	 	 	Roy W. Jageman 	 
	 	 	Executive Vice President, Chief Financial
Officer and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	EAP ENERGY SERVICES, L.P.

 	 
	 	By:  	EAP Energy, Inc., its general partner
 	 

	 	 	 	 	 
	 	By:  	                                              /s/ Roy W. Jageman
 	 
	 	 	Roy W. Jageman 	 
	 	 	Executive Vice President, Chief Financial Officer and
Corporate Secretary 	 
	 

	 	 	 	 	 
	 	EAP OPERATING, INC.

 	 
	 	By:  	/s/ Roy W. Jageman
 	 
	 	 	Roy W. Jageman 	 
	 	 	Executive Vice President, Chief Financial
Officer and Corporate Secretary 	 

 

 

Registration Rights Agreement

	 	 	 	 	 

	 	 	 	 	 
	 	EAP PROPERTIES, INC.

 	 
	 	By:  	/s/ Robert A. Sagedy
 	 
	 	 	Robert A. Sagedy 	 
	 	 	Vice President 	 
	 

	 	 	 	 	 
	 	ENCORE OPERATING, L.P.

 	 
	 	By:  	EAP Operating, Inc., its general partner
 	 

	 	 	 	 	 
	 	By:  	                                              /s/ Roy W. Jageman
 	 
	 	 	Roy W. Jageman 	 
	 	 	Executive Vice President, Chief Financial Officer and
Corporate Secretary 	 
	 

	 	 	 	 	 
	 	ENCORE OPERATING LOUISIANA, LLC

 	 
	 	By:  	/s/  Tom Olle
 	 
	 	 	Tom Olle 	 
	 	 	President 	 
	 

Accepted as of the date hereof:

Credit Suisse First Boston LLC

	 	 	 	 	 
	 	 	 
	                    /s/ Phil Z. Pace
 	 	 
	 	Credit Suisse First Boston LLC 	 
	 	 	 

 

 

	 	 	 	 	 

Exhibit A

ENCORE ACQUISITION COMPANY

INSTRUCTION TO DTC PARTICIPANTS

(Date of Mailing)

URGENT — IMMEDIATE ATTENTION REQUESTED

DEADLINE FOR RESPONSE: [DATE] *

The Depository Trust Company (“DTC”) has identified you as a DTC Participant through which
beneficial interests in the Encore Acquisition Company (the “Company”) 6.0% Senior Subordinated
Notes due 2015 (the “Securities”) are held.

The Company is in the process of registering the Securities under the Securities Act of 1933 for
resale by the beneficial owners thereof. In order to have their Securities included in the
registration statement, beneficial owners must complete and return the enclosed Notice of
Registration Statement and Selling Securityholder Questionnaire.

It is important that beneficial owners of the Securities receive a copy of the enclosed
materials as soon as possible as their rights to have the Securities included in the
registration statement depend upon their returning the Notice and Questionnaire by [Deadline For
Response]. Please forward a copy of the enclosed documents to each beneficial owner that holds
interests in the Securities through you. If you require more copies of the enclosed materials or
have any questions pertaining to this matter, please contact Encore Acquisition Company, 777 Main
Street, Suite 1400, Ft. Worth, Texas 76102, (817) 877-9955.

 

	*	 	Not less than 28 calendar days from date of mailing.

A-1

 

Registration Rights Agreement

ENCORE ACQUISITION COMPANY

Notice of Registration Statement

and

Selling Securityholder Questionnaire

(Date)

Reference is hereby made to the Registration Rights Agreement (the “Registration Rights Agreement”)
between Encore Acquisition Company (the “Company”) and the Purchaser named therein. Pursuant to
the Registration Rights Agreement, the Company has filed with the United States Securities and
Exchange Commission (the “Commission”) a registration statement on Form [___] (the “Shelf
Registration Statement”) for the registration and resale under Rule 415 of the Securities Act of
1933, as amended (the “Securities Act”), of the Company’s 6.0% Senior Subordinated Notes due 2015
(the “Securities”). A copy of the Registration Rights Agreement is attached hereto. All
capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the
Registration Rights Agreement.

Each beneficial owner of Registrable Securities (as defined below) is entitled to have the
Registrable Securities beneficially owned by it included in the Shelf Registration Statement. In
order to have Registrable Securities included in the Shelf Registration Statement, this Notice of
Registration Statement and Selling Securityholder Questionnaire (“Notice and Questionnaire”) must
be completed, executed and delivered to the Company’s counsel at the address set forth herein for
receipt ON OR BEFORE [Deadline for Response]. Beneficial owners of Registrable Securities who do
not complete, execute and return this Notice and Questionnaire by such date (i) will not be named
as selling securityholders in the Shelf Registration Statement and (ii) may not use the Prospectus
forming a part thereof for resales of Registrable Securities.

Certain legal consequences arise from being named as a selling securityholder in the Shelf
Registration Statement and related Prospectus. Accordingly, holders and beneficial owners of
Registrable Securities are advised to consult their own securities law counsel regarding the
consequences of being named or not being named as a selling securityholder in the Shelf
Registration Statement and related Prospectus.

The term “Registrable Securities” is defined in the Registration Rights Agreement.

A-2

 

Registration Rights Agreement

ELECTION

The undersigned holder (the “Selling Securityholder”) of Registrable Securities hereby elects to
include in the Shelf Registration Statement the Registrable Securities beneficially owned by it and
listed below in Item (3). The undersigned, by signing and returning this Notice and Questionnaire,
agrees to be bound with respect to such Registrable Securities by the terms and conditions of this
Notice and Questionnaire and the Registration Rights Agreement, including, without limitation,
Section 6 of the Registration Rights Agreement, as if the undersigned Selling Securityholder were
an original party thereto.

Upon any sale of Registrable Securities pursuant to the Shelf Registration Statement, the Selling
Securityholder will be required to deliver to the Company and Trustee the Notice of Transfer set
forth in Appendix A to the Prospectus and as Exhibit B to the Registration Rights Agreement.

The Selling Securityholder hereby provides the following information to the Company and represents
and warrants that such information is accurate and complete:

A-3

 

Registration Rights Agreement

QUESTIONNAIRE

	 	 	 	 	 
	(1)

	 	(a)
	 	Full Legal Name of Selling Securityholder:
	 
	 	 	 	 
	 

	 	 	 	 

	 

	 	(b)
	 	Full Legal Name of Registered Holder (if not the same as in (a) above) of Registrable
Securities Listed in Item (3) below:
	 
	 	 	 	 
	 

	 	 	 	 

	 

	 	(c)
	 	Full Legal Name of DTC Participant (if applicable and if not the same as (b) above)
Through Which Registrable Securities Listed in Item (3) below are Held:
	 
	 	 	 	 
	 

	 	 	 	 

	(2)

	 	 	 	Address for Notices to Selling Securityholder:
	 

	 	 	 	 

	 

	 	 	 	 

	 

	 	 	 	 

	 

	 	 	 	Telephone:  

	 

	 	 	 	Fax:  

	 

	 	 	 	Contact Person:  

	 
	 	 	 	 
	(3)

	 	 	 	Beneficial Ownership of Securities:
	 
	 	 	 	 
	 

	 	 	 	Except as set forth below in this Item (3), the undersigned does not beneficially own any
Securities.
	 
	 	 	 	 
	 

	 	(a)
	 	Principal amount of Registrable Securities beneficially owned:                                                            
	 

	 	 	 	CUSIP No(s). of such Registrable Securities:                                                                                                    
	 
	 	 	 	 
	 

	 	(b)
	 	Principal amount of Securities other than Registrable Securities beneficially owned:
	 
	 	 	 	 
	 

	 	 	 	 

	 

	 	 	 	CUSIP No(s). of such other Securities:
	 
	 	 	 	 
	 

	 	(c)
	 	Principal amount of Registrable Securities which the undersigned wishes to be included
in the Shelf Registration Statement:                                                            
	 

	 	 	 	CUSIP No(s). of such Registrable Securities to be included in the Shelf Registration
Statement:                                                                                                    
	 
	 	 	 	 
	(4)

	 	 	 	Beneficial Ownership of Other Securities of the Company:
	 
	 	 	 	 
	 

	 	 	 	Except as set forth below in this Item (4), the undersigned Selling Securityholder is not
the beneficial or registered owner of any other securities of the Company, other than
the Securities listed above in Item (3).
	 
	 	 	 	 
	 

	 	 	 	State any exceptions here:

A-4

 

Registration Rights Agreement

	 	 	 	 	 
	(5)

	 	 	 	Relationships with the Company:
	 
	 	 	 	 
	 

	 	 	 	Except as set forth below, neither the Selling Securityholder nor any of its affiliates,
officers, directors or principal equity holders (5% or more) has held any position or
office or has had any other material relationship with the Company (or its
predecessors or affiliates) during the past three years.
	 
	 	 	 	 
	 

	 	 	 	State any exceptions here:
	 
	 	 	 	 
	(6)

	 	 	 	Plan of Distribution:
	 
	 	 	 	 
	 

	 	 	 	Except as set forth below, the undersigned Selling Securityholder intends to distribute
the Registrable Securities listed above in Item (3) only as follows (if at all):
	 

	 	 	 	Such Registrable Securities may be sold from time to time directly by the undersigned
Selling Securityholder or, alternatively, through underwriters, broker-dealers or
agents. Such Registrable Securities may be sold in one or more transactions at fixed
prices, at prevailing market prices at the time of sale, at varying prices determined
at the time of sale, or at negotiated prices. Such sales may be effected in
transactions (which may involve crosses or block transactions) (i) on any national
securities exchange or quotation service on which the Registered Securities may be
listed or quoted at the time of sale, (ii) in the over-the-counter market, (iii) in
transactions otherwise than on such exchanges or services or in the over-the-counter
market, or (iv) through the writing of options. In connection with sales of the
Registrable Securities or otherwise, the Selling Securityholder may enter into
hedging transactions with broker-dealers, which may in turn engage in short sales of
the Registrable Securities in the course of hedging the positions they assume. The
Selling Securityholder may also sell Registrable Securities short and deliver
Registrable Securities to close out such short positions, or loan or pledge
Registrable Securities to broker-dealers that in turn may sell such securities.
	 
	 	 	 	 
	 

	 	 	 	State any exceptions here:

By signing below, the Selling Securityholder acknowledges that it understands its obligation to
comply, and agrees that it will comply, with the provisions of the Exchange Act and the rules and
regulations thereunder, particularly Regulation M.

In the event that the Selling Securityholder transfers all or any portion of the Registrable
Securities listed in Item (3) above after the date on which such information is provided to the
Company, the Selling Securityholder agrees to notify the transferee(s) at the time of the transfer
of its rights and obligations under this Notice and Questionnaire and the Registration Rights
Agreement.

By signing below, the Selling Securityholder consents to the disclosure of the information
contained herein in its answers to Items (1) through (6) above and the inclusion of such
information in the Shelf Registration Statement and related Prospectus. The Selling Securityholder
understands that such information will be relied upon by the Company in connection with the
preparation of the Shelf Registration Statement and related Prospectus.

A-5

 

Registration Rights Agreement

In accordance with the Selling Securityholder’s obligation under Section 3(d) of the Registration
Rights Agreement to provide such information as may be required by law for inclusion in the Shelf
Registration Statement, the Selling Securityholder agrees to promptly notify the Company of any
inaccuracies or changes in the information provided herein which may occur subsequent to the date
hereof at any time while the Shelf Registration Statement remains in effect. All notices hereunder
and pursuant to the Registration Rights Agreement shall be made in writing, by hand-delivery,
first-class mail, or air courier guaranteeing overnight delivery as follows:

          (i) To the Company:

Encore Acquisition Company

Houston, Texas 77024

777 Main Street, Suite 1400

Ft. Worth, Texas 76102

Attn: Jon Brumley

Fax No.: 817-877-1655

          (ii) With a copy to:

Sean T. Wheeler

Baker Botts L.L.P.

One Shell Plaza, 910 Louisiana

Houston, Texas 77002

Fax No.: 713-229-7868

Once this Notice and Questionnaire is executed by the Selling Securityholder and received by the
Company’s counsel, the terms of this Notice and Questionnaire, and the representations and
warranties contained herein, shall be binding on, shall inure to the benefit of and shall be
enforceable by the respective successors, heirs, personal representatives, and assigns of the
Company and the Selling Securityholder (with respect to the Registrable Securities beneficially
owned by such Selling Securityholder and listed in Item (3) above. This Agreement shall be
governed in all respects by the laws of the State of New York.

A-6

 

Registration Rights Agreement

IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused this Notice and
Questionnaire to be executed and delivered either in person or by its duly authorized agent.

Dated:                                         

	 	 	 	 	 
	 	 	 
	 	  	 	 
	 	 	Selling Securityholder 	 
	 	 	(Print/type full legal name of beneficial owner of Registrable Securities) 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	Name:  	 	 
	 	Title:  	 	 	 
	 

PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON OR BEFORE
[DEADLINE FOR RESPONSE] TO THE COMPANY’S COUNSEL AT:

 

 

 

 

 

A-7

 

Registration Rights Agreement

Exhibit B

NOTICE OF TRANSFER PURSUANT TO REGISTRATION STATEMENT

Wells Fargo Bank, National Association

Encore Acquisition Company

c/o Wells Fargo Bank, N.A.

505 Main Street, Suite 301

Fort Worth, Texas 76102

Attention: Trust Officer

	 	 	 	 	 
	 

	 	Re:
	 	Encore Acquisition Company (the “Company”)
	 

	 	 	 	6.0% Senior Subordinated Notes due 2015

Dear Sirs:

Please be advised that                                                             has transferred $                                                             aggregate principal amount of the above-referenced Notes
pursuant to an effective Registration Statement on Form [                    ] (File No. 333-                    ) filed by the Company.

We hereby certify that the prospectus delivery requirements, if any, of the Securities Act of 1933,
as amended, have been satisfied and that the above-named beneficial owner of the Notes is named as
a “Selling Holder” in the Prospectus dated [date] or in supplements thereto, and that the aggregate
principal amount of the Notes transferred are the Notes listed in such Prospectus opposite such
owner’s name.

Dated:

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	  	
 	 
	 	 	(Name) 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	(Authorized Signature) 	 
	 	 	 	 
	 

B-1exv10w47

 

Exhibit 10.47

SECOND AMENDMENT TO

EMPLOYMENT AGREEMENT

          THIS SECOND AMENDMENT TO EMPLOYMENT AGREEMENT (the “Amendment”), made as of this 8th
day of July, 2005, by and between The Cronos Group, a société anonyme holding organized and
existing under the laws of Luxembourg (the “Company”), and Dennis J. Tietz
(“Tietz”),

W I T N E S S E T H:

          WHEREAS, the Company and Tietz are parties to the 2001 Amended and Restated Employment
Agreement, dated as of November 8, 2001, as amended by that certain Amendment to Employment
Agreement, dated as of April 1, 2004 (the Amended and Restated Employment Agreement, as amended, is
referred to hereinafter as the “Employment Agreement”); and

          WHEREAS, the Company and Tietz desire to amend the Employment Agreement to revise the
transaction bonus payable to Tietz thereunder;

          WHEREAS, the Company and Tietz desire to clarify the medical severance payable to Tietz in the
event of his termination of employment entitling him to receive severance benefits under the
Employment Agreement;

          NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
the Company and Tietz hereby agree as follows:

     1. Defined Terms. All capitalized terms used herein and not defined herein shall have
the meaning given to them by the Employment Agreement.

     2. Transaction Bonus. Section 4(b) of the Employment Agreement is hereby amended in
its entirety to read as follows:

     “(b) In the event that during the Term any “Change in Control” (as defined in
Exhibit A to this Agreement) of the Company occurs, Tietz shall receive in a
single sum a cash bonus in an amount equal to (i) Tietz’s average annual
compensation for the five years ended the December 31 prior to the date of the
event constituting a Change in Control,” (ii) times three (3), (iii) minus one
dollar. For purposes of this provision, “compensation” shall include, and only
include, Tietz’s annual salary (Section 3 of this Agreement), bonus (Section 4(a)
of this Agreement), and the incentive compensation payable to Tietz under Section
7(e) of this Agreement, as the same may be amended from time to time. The
foregoing sum is referred to herein as the “Transaction Bonus”. The
Company shall pay Tietz the full dollar amount of the Transaction Bonus no later
than thirty (30) days after the date such Change in Control has occurred.
Notwithstanding any contrary provision of this Agreement,

1

 

payment of the Transaction Bonus shall be subject to any reduction required
by Section 13 hereof.”

          3. Severance Benefit – Medical. (a) The first paragraph of Section 9(e) of the
Employment Agreement is hereby amended in its entirety to read as follows:

          “(e)(1) Tietz shall be entitled to medical severance as specified in
paragraphs (2)-(5) below for twelve (12) months after the date of termination or,
if Tietz makes the election to receive the “Non-Solicitation Payment” referred to
in Section 10 of this Agreement, for twenty-four (24) months after the date of
termination (said number of months) (twelve (12) or twenty-four (24)) referred to
hereinafter as the “Multiplier”).

          (2) Medical severance shall be payable to Tietz pursuant to the provisions of
paragraph (4) below in the event that, on or prior to the date Tietz’s employment
with the Company terminates under circumstances that would entitle him to the
payment of severance under this Section 9, the Company’s counsel or independent
auditors advise the Company that payment of medical severance benefits under the
provisions of paragraph (4) below will not be subject to the provisions of Section
409A of the Internal Revenue Code of 1986, as amended (“Code”) or, if subject to
the provisions of Section 409A of the Code, complies with the requirements thereof
such that the medical severance benefits payable to Tietz under paragraph (4)
below will not be subject to the interest and additional tax payable under Section
409A(a)(1)(B). Otherwise the medical severance payable to Tietz shall be governed
by the provisions of paragraph (3) below.

          (3) In the event that Tietz’s employment with the Company terminates under
circumstances that would entitle him to the payment of severance under Section 9
of this Agreement and the condition stated in paragraph (2) above for the
application of paragraph (4) below has not been met, then and in such event Tietz
shall be paid an amount equal to the product obtained by multiplying (i) the
monthly premium payable by the Company (and, for purposes of this subsection (e)
“Company” includes any subsidiary of the Company providing health insurance
benefits to Tietz) under COBRA to continue the health insurance benefits that were
available to him at the time of his termination by (ii) the Multiplier. The
medical severance payable to Tietz under this paragraph (3) shall be paid to Tietz
in one lump sum, within thirty (30) days of his termination of employment.

          (4)(A) In the event that Tietz’s employment with the Company terminates under
circumstances that would entitle him to the payment of severance under this
Section 9 and, by the date of Tietz’s

2

 

termination, the condition stated in paragraph (2) above for the application
of this paragraph (4) has been met, then and in such event, in lieu of medical
severance payable under paragraph (3) above, Tietz shall be entitled to
reimbursement, monthly, from the Company for the premiums paid by the Company
under COBRA to continue the health insurance benefits available generally to the
employees of the Company. The Company’s obligation to reimburse Tietz for COBRA
premiums shall extend for that number of months equal to the Multiplier or for as
long as COBRA coverage (including any state coverage) is available to Tietz,
whichever period first expires. In the event that the Company terminates its
health plan or any benefit thereof (e.g., dental or vision) that was available to
Tietz at the time Tietz’s employment with the Company was terminated, and for
which COBRA coverage is available to Tietz, then and in such event the Company
shall pay to Tietz, in one lump sum, within thirty (30) days of termination of
such coverage, an amount equal to the reimbursement paid by the Company to Tietz
for such coverage for the month prior to its termination, multiplied by the number
of remaining months the Company would have reimbursed Tietz for COBRA premiums
under this paragraph (4) had the Company not terminated its health plan (or any
benefit thereof). In the event that the Company does not terminate its health
plan in its entirety but only a benefit thereof (such as dental or vision), then
and in such event a lump-sum payment shall be made to Tietz hereunder only if an
identifiable portion of the COBRA premium is attributable to the terminated
benefit of the Company’s health plan. Nothing in this paragraph shall be
interpreted to provide assurance to Tietz that, after any lump-sum payment is made
to Tietz hereunder, Tietz shall be capable of securing health plan coverage or
benefits thereafter.

               (B) If, after termination of employment by the Company, Tietz is receiving
medical severance benefits under the provisions of this paragraph (4), and health
benefits are available to Tietz from another company or entity, then and in such
event (i) Tietz shall notify the Company that health benefits are available to
Tietz from another company or entity, and (ii) the Company’s obligation to provide
further medical severance benefits to Tietz under this Section 9(e) shall
terminate.

          (5) In the event that, pursuant to Section 10 of this Agreement, Tietz, by
reason of his violation of the provisions of Section 12 of this Agreement, is
obligated to repay to the Company the Non-Solicitation Payment, then and in such
event Tietz’s entitlement to medical severance under this subsection (e) shall be
limited to a period of twelve (12) months after the date of termination and Tietz
shall promptly repay to the Company any reimbursement or payment made to him or
for his benefit attributable to the second 12-month period after the date of
termination.”

3

 

          (b) Nothing in Section 9 of the Employment Agreement or in this Amendment shall require the
Company to continue to provide health insurance benefits for its employees generally, including
Tietz, or to continue to maintain the current level and amount of coverage under its health
insurance plan(s).

          4. Payment of Severance Benefits Conditional Upon Release. The Company’s obligation
to provide severance benefits to Tietz under the provisions of Section 9 of the Employment
Agreement shall be conditioned on Tietz’s execution and continued compliance in all material
respects with the restrictive covenants set forth in the Release of Claims attached hereto as
Appendix A.

          5. Deletion of Exhibit B to Employment Agreement. Exhibit B to the Employment
Agreement, “Transaction Bonus,” is hereby deleted from the Employment Agreement.

          6. Continuance in Force of Employment Agreement. Other than as specifically amended
hereby, the terms and provisions of the Employment Agreement shall remain in full force and effect.

          IN WITNESS WHEREOF, the Company and Tietz have executed this Amendment as of the day and year
first above written.

	 	 	 	 	 	 	 
	 	 	“COMPANY”	 	 
	 
	 	 	 	 	 	 
	 	 	THE CRONOS GROUP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Charles Tharp	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Charles Tharp	 	 
	 

	 	 	 	Chairman of the Compensation

Committee of the Board of Directors
	 	 
	 
	 	 	 	 	 	 
	 	 	“TIETZ”	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Dennis J. Tietz	 	 
	 	 	 	 	 
	 	 	Dennis J. Tietz	 	 

4

 

Appendix A

Form of Release of Claims

 

 

RELEASE OF CLAIMS

          1. Release of Claims (“Release”). In consideration of the payments and benefits to be
made by ___, a ___ corporation (“Employer”) to
___ (“Employee”) under that certain Employment Agreement, dated as of
___, as amended ___ (hereinafter, “Employment Agreement”), and with the
intention of binding Employee and Employee’s heirs, executors, administrators and assigns, Employee
does hereby release, remise, acquit and forever discharge Employer and each of its subsidiaries and
affiliates (the “Employer Affiliated Group”), their present and former officers, directors,
executives, agents, attorneys, employees and employee benefits plans (and the fiduciaries thereof),
and the successors, predecessors and assigns of each of the foregoing (collectively, the
“Employer Released Parties”), of and from any and all claims, actions, causes of action,
complaints, charges, demands, rights, damages, debts, sums of money, accounts, financial
obligations, suits, expenses, attorneys’ fees and liabilities of whatever kind or nature in law,
equity or otherwise, whether accrued, absolute, contingent, unliquidated or otherwise and whether
now known or unknown, suspected or unsuspected which Employee, individually or as a member of a
class, now has, owns or holds, or has at any time heretofore had, owned or held, against any
Employer Released Party in any capacity, including, without limitation, any and all claims (i)
arising out of or in any way connected with Employee’s service to any member of the Employer
Affiliated Group (or the predecessors thereof) in any capacity, or the termination of such service
in any such capacity, (ii) for severance or vacation benefits, unpaid wages, salary or incentive
payments, (iii) for breach of contract, wrongful discharge, impairment of economic opportunity,
defamation, intentional infliction of emotional harm or other tort, and (iv) for any violation of
applicable state and local labor and employment laws (including, without limitation, all laws
concerning unlawful and unfair labor and employment practices), any and all claims based on the
Employee Retirement Income Security Act of 1974 (“ERISA”), any and all claims arising under
the civil rights laws of any federal, state or local jurisdiction, including, without limitation,
Title VII of the Civil Rights Act of 1964 (“Title VII”), the Americans with Disabilities
Act (“ADA”), Sections 503 and 504 of the Rehabilitation Act, the Family and Medical Leave
Act, the Age Discrimination in Employment Act (“ADEA”), the California Labor Code, and any
and all claims under any whistleblower laws or whistleblower provisions of other laws, excepting
only:

          (a) rights of Employee under this Release and the Employment Agreement;

          (b) rights of Employee relating to equity awards held by Employee as of his or her
termination date;

          (c) the right of Employee to receive COBRA continuation coverage in accordance with
applicable law;

          (d) rights to indemnification Employee may have (i) under applicable corporate law,
(ii) under the bylaws or articles of incorporation of any

A-1

 

Employer Released Party, or (iii) as an insured under any director’s and officer’s
liability insurance policy now or previously in force;

          (e) claims (i) for benefits under any health, disability, retirement, deferred
compensation, life insurance or other similar employee benefit plan or arrangement of the
Employer Affiliated Group, and (ii) for earned but unused vacation pay through the
termination date in accordance with applicable Employer policy; and

          (f) claims for the reimbursement of unreimbursed business expenses incurred prior the
date (“Termination Date”) of Employee’s termination of employment by Employer.

          2. Waiver of Unknown Claims. In connection with this Release, and subject to
exceptions (a)-(f) of Section 1 of this Release, Employee acknowledges that he or she is aware that
he or she may later discover facts in addition to or different from those which he or she currently
knows or believes to be true with respect to the subject matters of this Release, but that it is
Employee’s intention hereby fully, finally, and forever, to settle and release all of these matters
which now exist, may exist, or previously existed between Employee and the Employer Released
Parties, whether known or unknown, suspected or unsuspected. In furtherance of such intent, the
releases given herein shall be and shall remain in effect as full and complete releases,
notwithstanding the discovery or existence of such additional or different facts. In this regard,
and subject to the exceptions (a)-(f) of Section 1 of this Release, Employee specifically waives
the benefits of the provisions of Section 1542 of the Civil Code of the State of California and any
other analogous state or federal law or regulation. Said Section 1542 of the California Civil Code
reads as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE
RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH DEBTOR.

          3. No Admissions. Employee acknowledges and agrees that this Release is not to be
construed in any way as an admission of any liability whatsoever by any Employer Released Party,
any such liability being expressly denied.

          4. Application to all Forms of Relief. This Release applies to any relief no matter
how called, including, without limitation, wages, back pay, front pay, compensatory damages,
liquidated damages, punitive damages for pain or suffering, costs and attorney’s fees and expenses.

          5. Specific Waiver. Employee specifically acknowledges that his or her acceptance of
the terms of this Release is, among other things, a specific waiver of his or her rights, claims
and causes of action under Title VII, ADEA, ADA and any state or

A-2

 

local law or regulation in respect of discrimination of any kind; provided, however, that
nothing herein shall be deemed, nor does anything herein purport, to be a waiver of any right or
claim or cause of action which by law Employee is not permitted to waive.

          6. No Complaints or Other Claims. Employee acknowledges and agrees that he or she has
not, with respect to any transaction or state of facts existing prior to the date hereof, filed any
complaints, charges or lawsuits against any Employer Released Party with any governmental agency,
court or tribunal.

          7. Conditions of Release.

               (a) Terms and Conditions. From and after the Termination Date, Employee shall abide
by all the terms and conditions of this Release and the terms and conditions set forth in the
Employment Agreement, which is incorporated herein by reference.

               (b) Confidentiality. Employee shall not, without the prior written consent of
Employer or as may otherwise be required by law or any legal process, or as is necessary in
connection with any adversarial proceeding against any member of the Employer Affiliated Group (in
which case Employee shall cooperate with Employer in obtaining a protective order at Employer’s
expense against disclosure by a court of competent jurisdiction), communicate, to anyone other than
Employer and those designated by Employer or on behalf of Employer in the furtherance of its
business, any trade secrets, confidential information, knowledge or data relating to any member of
the Employer Affiliated Group, obtained by Employee during Employee’s employment by Employer that
is not generally available public knowledge (other than by acts by Employee in violation of this
Release).

               (c) Return of Employer Material. Employee represents that he or she has returned to
Employer all Employer Material (as defined below). For purposes of this Section 7(c), “Employer
Material” means any documents, files and other property and information of any kind belonging
or relating to (i) any member of the Employer Affiliated Group, (ii) the current and former
suppliers, creditors, directors, officers, employees, agents and customers of any of them, or (iii)
the businesses, products, services and operations (including, without limitation, business,
financial and accounting practices) of any of them, in each case whether tangible or intangible
(including, without limitation, credit cards, building and office access cards, keys, computer
equipment, cellular telephones, pagers, electronic devices, hardware, manuals, files, documents,
records, software, customer data, research, financial data and information, memoranda, surveys,
correspondence, statistics and payroll and other employee data, and any copies, compilations,
extracts, excerpts, summaries and other notes thereof or relating thereto), excluding only
information (x) that is generally available public knowledge or (y) that relates to Employee’s
compensation or employee benefits.

               (d) Cooperation. Following the Termination Date, Employee shall reasonably cooperate
with Employer upon the reasonable request of Employer and

A-3

 

be reasonably available to Employer with respect to matters arising out of Employee’s services
to the Employer Affiliated Group.

               (e) Nondisparagement. Employee agrees not to communicate negatively about or
otherwise disparage any Employer Released Party or the products or businesses of any of them in any
way whatsoever.

               (f) Nonsolicitation. Employee agrees that for the period of time beginning on the
date hereof and ending on the second anniversary hereof, Employee shall not, either directly or
indirectly, solicit, entice, persuade, induce or otherwise attempt to influence any person who is
employed by any member of the Employer Affiliated Group to terminate such person’s employment by
such member of the Employer Affiliated Group. Employee also agrees that for the same period of
time he or she shall not assist any person or entity in the recruitment of any person who is
employed by any member of the Employer Affiliated Group. The Employee’s provision of a reference
to or in respect of any individual shall not be a violation this Section 7(f).

               (g) No Representation. The Employee acknowledges that, other than as set forth in the
Employment Agreement, (i) no promises have been made to him or her, and (ii) in signing this
Release Employee is not relying upon any statement or representation made by or on behalf of any
Employer Released Party and each or any of them concerning the merits of any claims or the nature,
amount, extent or duration of any damages relating to any claims or the amount of any money,
benefits, or compensation due Employee or claimed by Employee, or concerning the Release or
concerning any other thing or matter.

               (h) Injunctive Relief. In the event of a breach or threatened breach by Employee of
this Section 7, Employee agrees that Employer shall be entitled to injunctive relief in a court of
appropriate jurisdiction to remedy any such breach or threatened breach, Employee acknowledging
that damages would be inadequate or insufficient.

          8. Voluntariness. Employee agrees that he or she is relying solely upon his or her
own judgment; that Employee is over eighteen years of age and is legally competent to sign this
Release; that Employee is signing this Release of his or her own free will; that Employee has read
and understood the Release before signing it; and that Employee is signing this Release in exchange
for consideration that he or she believes is satisfactory and adequate.

          9. Legal Counsel. Employee acknowledges that he or she has been informed of the right
to consult with legal counsel and has been encouraged to do so.

          10. Complete Agreement/Severability. This Release constitutes the complete and final
agreement between the parties and supersedes and replaces all prior or contemporaneous agreements,
negotiations, or discussions relating to the subject matter of this Release. All provisions and
portions of this Release are severable. If any provision or portion of this Release or the
application of any provision or portion of the

A-4

 

Release shall be determined to be invalid or unenforceable to any extent or for any reason,
all other provisions and portions of this Release shall remain in full force and shall continue to
be enforceable to the fullest and greatest extent permitted by law.

          11. Acceptance. Employee acknowledges that he or she has been given a period of
twenty-one (21) days within which to consider this Release, unless applicable law requires a longer
period, in which case Employee shall be advised of such longer period and such longer period shall
apply. Employee may accept this Release at any time within this period of time by signing the
Release and returning it to Employer.

          12. Revocability. This Release shall not become effective or enforceable until seven
(7) calendar days after Employee signs it. Employee may revoke his or her acceptance of this
Release at any time within that seven (7) calendar day period by sending written notice to
Employer. Such notice must be received by Employer within the seven (7) calendar day period in
order to be effective and, if so received, would void this Release for all purposes.

          13. Governing Law. Except for issues or matters as to which federal law is
applicable, this Release shall be governed by and construed and enforced in accordance with the
laws of the State of California without giving effect to the conflicts of law principles thereof.

          Please indicate your acceptance of this Release by signing and dating this page and returning
it to Employer. A duplicate of this Release should be maintained for your records.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	“EMPLOYER”	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Its	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	ACCEPTED AND AGREED:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	“EMPLOYEE”	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

A-5

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