Document:

Table of Contents
EXHIBIT
4.6

$1,700,000,000

MIDAMERICAN ENERGY
HOLDINGS COMPANY

6.125% Senior Bonds due 2036

REGISTRATION RIGHTS AGREEMENT

March 24, 2006

LEHMAN
BROTHERS INC.

 745 Seventh Avenue
 New York, New York
10019

J.P. MORGAN SECURITIES INC.

 270
Park Avenue
 New York, New York 10017

GREENWICH CAPITAL MARKETS, INC.

 101 Park
Avenue
 New York, New York 10178

Dear
Sirs:

MidAmerican Energy Holdings Company, an Iowa corporation
(the ‘‘Company’’), proposes to issue and
sell to Lehman Brothers Inc., J.P. Morgan Securities Inc., Greenwich
Capital Markets, Inc. and the other Initial Purchasers named in the
purchase agreement described below (collectively, the
‘‘Initial Purchasers’’), upon the terms
set forth in a purchase agreement dated March 21, 2006 (the
‘‘Purchase Agreement’’), $1,700,000,000
aggregate principal amount of its 6.125% Senior Bonds due April
1, 2036 (the ‘‘Initial Securities’’).
The Initial Securities will be issued pursuant to that certain
Indenture, dated as of October 4, 2002, as amended by Article IV of the
Second Supplemental Indenture thereto dated as of May 16, 2003, and as
amended and supplemented by a fourth supplemental indenture to be
entered into thereunder to be dated the date hereof (collectively, the
‘‘Indenture’’), between the Company and
Bank of New York Trust Company, N.A., as trustee (the
‘‘Trustee’’). As an inducement to the
Initial Purchasers to enter into the Purchase Agreement, the Company
agrees with the Initial Purchasers, for the benefit of the Initial
Purchasers and the holders of the Securities (as defined below)
(collectively, the ‘‘Holders’’), as
follows:

1.    Registered Exchange Offer.    Unless
not permitted by applicable law (after the Company has complied with
the ultimate paragraph of this Section  1), the Company shall
prepare and file with the Securities and Exchange Commission (the
‘‘Commission’’) a registration statement
(the ‘‘Exchange Offer Registration
Statement’’) on an appropriate form under the
Securities Act of 1933, as amended (the ‘‘Securities
Act’’), with respect to a proposed offer (the
‘‘Registered Exchange Offer’’) to the
Holders of Transfer Restricted Securities (as defined in Section
6 hereof), who are not prohibited by any law or policy of the
Commission from participating in the Registered Exchange Offer, to
issue and deliver to such Holders, in exchange for the Initial
Securities, a like aggregate principal amount of debt securities of the
Company issued under the Indenture, substantially identical in all
material 

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respects to the Initial Securities and
registered under the Securities Act (the ‘‘Exchange
Securities’’). The Company shall use its reasonable
best efforts to cause the Exchange Offer Registration Statement to
become effective under the Securities Act within 270  days (such
270th day being an ‘‘Effectiveness
Deadline’’) after the date on which the Initial
Purchasers purchase the Initial Securities pursuant to the Purchase
Agreement (the ‘‘Closing Date’’) and
will keep the Exchange Offer Registration Statement effective for not
less than 30  days (or longer, if required by applicable law)
after the date notice of the Registered Exchange Offer is mailed to the
Holders (such period being called the ‘‘Exchange
Offer Registration Period’’).

If the
Company commences the Registered Exchange Offer, the Company will be
entitled to consummate the Registered Exchange Offer 30  days
after such commencement (provided that the Company has accepted all the
Initial Securities theretofore validly tendered in accordance with the
terms of the Registered Exchange Offer).

Following the
declaration of the effectiveness of the Exchange Offer Registration
Statement, the Company shall promptly commence the Registered Exchange
Offer, it being the objective of the Registered Exchange Offer to
enable each Holder of Transfer Restricted Securities electing to
exchange the Initial Securities for Exchange Securities (assuming that
such Holder is not an affiliate of the Company within the meaning of
the Securities Act, acquires the Exchange Securities in the ordinary
course of such Holder's business and has no arrangements or
understanding with any person to participate in the distribution of the
Exchange Securities and is not prohibited by any law or policy of the
Commission from participating in the Registered Exchange Offer) to
trade such Exchange Securities from and after their receipt without any
limitations or restrictions under the Securities Act.

The
Company acknowledges that, pursuant to current interpretations by the
Commission's staff of Section  5 of the Securities Act, in
the absence of an applicable exemption therefrom, (i) each Holder which
is a broker-dealer electing to exchange Initial Securities, acquired
for its own account as a result of market making activities or other
trading activities, for Exchange Securities (an
‘‘Exchanging Dealer’’), is required to
deliver a prospectus containing the information set forth in (a) Annex
A hereto on the cover, (b) Annex B hereto in the ‘‘Exchange
Offer Procedures’’ section and the ‘‘Purpose of
the Exchange Offer’’ section, and (c) Annex C hereto in the
‘‘Plan of Distribution’’ section of such
prospectus in connection with a sale of any such Exchange Securities
received by such Exchanging Dealer pursuant to the Registered Exchange
Offer and (ii) an Initial Purchaser that elects to sell Securities (as
defined below) acquired in exchange for Initial Securities constituting
any portion of an unsold allotment, is required to deliver a prospectus
containing the information required by Items 507 or 508, as applicable,
of Regulation S-K under the Securities Act in connection with such
sale.

The Company shall use its reasonable best efforts to keep
the Exchange Offer Registration Statement effective and to amend and
supplement the prospectus contained therein, in order to permit such
prospectus to be lawfully delivered by all persons subject to the
prospectus delivery requirements of the Securities Act for such period
of time as such persons must comply with such requirements in order to
resell the Exchange Securities; provided, however,
that (i) in the case where such prospectus and any amendment or
supplement thereto must be delivered by an Exchanging Dealer or an
Initial Purchaser, such period shall be the lesser of 120  days
and the date on which all Exchanging Dealers and the Initial Purchasers
have sold all Exchange Securities held by them (unless such period is
extended pursuant to Section  3(j) below) and (ii) the Company
shall make such prospectus and any amendment or supplement thereto
available to any broker-dealer for use in connection with any resale of
any Exchange Securities for a period of not less than 120  days
after the consummation of the Registered Exchange Offer.

If,
upon consummation of the Registered Exchange Offer, any Initial
Purchaser holds Initial Securities acquired by it as part of its
initial distribution, the Company, simultaneously with the delivery of
the Exchange Securities pursuant to the Registered Exchange Offer,
shall issue and deliver to such Initial Purchaser upon the written
request of such Initial Purchaser, in exchange (the
‘‘Private Exchange’’) for the Initial
Securities held by such Initial Purchaser, a like principal amount of
debt securities of the Company issued under the Indenture and
substantially identical in all material 

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respects to the Initial Securities (the
‘‘Private Exchange Securities’’).
The Initial Securities, the Exchange Securities and the Private
Exchange Securities are herein collectively called the
‘‘Securities’’.

In connection
with the Registered Exchange Offer, the Company shall:

(a) mail to each Holder a copy of the prospectus
forming part of the Exchange Offer Registration Statement, together
with an appropriate letter of transmittal and related documents;

(b) keep the Registered Exchange Offer open for not
less than 30  days (or longer, if required by applicable law)
after the date notice thereof is mailed to the Holders;

(c) utilize the services of a depositary for the
Registered Exchange Offer with an address in the Borough of Manhattan,
The City of New York, which may be the Trustee or an affiliate of the
Trustee;

(d) 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

(e) otherwise comply with
all applicable laws.

As soon as practicable after the close of
the Registered Exchange Offer or the Private Exchange, as the case may
be, the Company shall:

(x) accept for exchange
all the Initial Securities validly tendered and not withdrawn pursuant
to the Registered Exchange Offer and the Private Exchange;

(y) deliver to the Trustee for cancellation all the
Initial Securities so accepted for exchange; and

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

The Indenture provides that the Exchange
Securities will not be subject to the transfer restrictions set forth
in the Indenture and that all the Securities will vote and consent
together on all matters as one class and that none of the Securities
will have the right to vote or consent as a class separate from one
another on any matter.

Interest on each Exchange Security and
Private Exchange Security issued pursuant to the Registered Exchange
Offer and in the Private Exchange will accrue from the last interest
payment date on which interest was paid on the Initial Securities
surrendered in exchange therefor or, if no interest has been paid on
the Initial Securities, from the date of original issue of the Initial
Securities.

Each Holder participating in the Registered Exchange
Offer shall be required to represent to the Company that at the time of
the consummation of the Registered Exchange Offer (i)  any
Exchange Securities received by such Holder will be acquired in the
ordinary course of its business, (ii)  at the time of
commencement of the Registered Exchange Offer, such Holder had no
arrangements or understanding with any person to participate in the
distribution of the Securities or the Exchange Securities within the
meaning of the Securities Act, (iii)  such Holder is not an
‘‘affiliate,’’ as defined in Rule  405 of
the Securities Act, of the Company or if it is an affiliate, such
Holder will comply with the registration and prospectus delivery
requirements of the Securities Act to the extent applicable,
(iv)  if such Holder is not a broker-dealer, that it is not
engaged in, and does not intend to engage in, the distribution of the
Exchange Securities and (v)  if such Holder is a broker-dealer,
that it will receive Exchange Securities for its own account in
exchange for Initial Securities that were acquired as a result of
market-making activities or other trading activities and that it will
be required to acknowledge that it will deliver a prospectus in
connection with any resale of such Exchange Securities.

Notwithstanding any other provisions hereof, the Company will ensure
that (i)  any Exchange Offer Registration Statement and any
amendment thereto and any prospectus forming part thereof and any
supplement thereto complies in all material respects with the
Securities Act and the rules and 

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regulations thereunder, (ii)  any
Exchange Offer Registration Statement and any amendment thereto does
not, when it becomes effective, contain an untrue statement of a
material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading and
(iii)  any prospectus forming part of any Exchange Offer
Registration Statement, and any supplement to such prospectus, does not
include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to
make the statements therein, in the light of the circumstances under
which they were made, not misleading.

If following the date
hereof there has been announced a change in Commission policy with
respect to exchange offers that in the reasonable opinion of counsel to
the Company raises a substantial question as to whether the Registered
Exchange Offer is permitted by applicable federal law, the Company will
seek a no-action letter or other favorable decision from the Commission
allowing the Company to consummate the Registered Exchange Offer. The
Company will pursue the issuance of such a decision to the Commission
staff level. In connection with the foregoing, the Company will take
all such other actions as may be requested by the Commission or
otherwise reasonably required in connection with the issuance of such
decision, including without limitation (i)  participating in
telephonic conferences with the Commission, (ii)  delivering to
the Commission staff an analysis prepared by counsel to the Company
setting forth the legal bases, if any, upon which such counsel has
concluded that the Registered Exchange Offer should be permitted and
(iii)  diligently pursuing a resolution (which need not be
favorable) by the Commission staff.

2.    Shelf
Registration.    If, (i) because of any change in law or in
applicable interpretations thereof by the staff of the Commission, the
Company is not permitted to effect a Registered Exchange Offer, as
contemplated by Section  1 hereof, (ii)  the Registered
Exchange Offer is not consummated by the date that is 40 days after the
date on which the Exchange Offer Registration Statement is declared
effective (such 40th day being the ‘‘Consummation
Deadline’’), (iii)  any Initial Purchaser so
requests with respect to the Initial Securities (or the Private
Exchange Securities) not eligible to be exchanged for Exchange
Securities in the Registered Exchange Offer and held by it following
consummation of the Registered Exchange Offer or (iv)  any Holder
(other than an Exchanging Dealer) is not eligible to participate in the
Registered Exchange Offer or, in the case of any Holder (other than an
Exchanging Dealer) that participates in the Registered Exchange Offer,
such Holder does not receive freely tradeable Exchange Securities on
the date of the exchange and any such Holder so requests for any reason
other than the failure by such Holder to make a timely and valid tender
in accordance with the Registered Exchange Offer, the Company shall
take the following actions (the date on which any of the conditions
described in the foregoing clauses  (i) through (iv) occur,
including in the case of clauses  (iii) or (iv) the receipt of
the required notice, being a ‘‘Trigger
Date’’):

(a) The Company shall
as promptly as practicable prepare and file with the Commission and
thereafter use its reasonable best efforts to cause to be declared
effective not later than the latter to occur of the date that is (i)
150 days after the Trigger Date and (ii) 270 days after the Closing
Date (such 150th or 270th day, as the case may be, being an
‘‘Effectiveness Deadline’’), a
registration statement (the ‘‘Shelf Registration
Statement’’ and, together with the Exchange Offer
Registration Statement, a ‘‘Registration
Statement’’) on an appropriate form under the
Securities Act relating to the offer and sale of the Transfer
Restricted Securities by the Holders thereof from time to time in
accordance with the methods of distribution set forth in the Shelf
Registration Statement and Rule  415 under the Securities Act
(hereinafter, the ‘‘Shelf
Registration’’); provided, however,
that no Holder (other than an Initial Purchaser) shall be entitled to
have the Securities held by it covered by the Shelf Registration
Statement unless such Holder agrees in writing to be bound by all the
provisions of this Agreement applicable to such Holder.

(b) The Company shall use its reasonable best
efforts to keep the Shelf Registration Statement continuously effective
in order to permit the prospectus included therein to be lawfully
delivered by the Holders of the relevant Securities, for a period of
two years (or for such longer period if extended pursuant to
Section  3(j) below) from the Closing Date or such shorter period
that will terminate when all the Securities covered by the Shelf
Registration Statement (i) have 

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been sold pursuant thereto or (ii) are no
longer restricted securities (as defined in Rule  144 under the
Securities Act, or any successor rule  thereof) (such applicable
period being called the ‘‘Shelf Registration
Period’’).

(c) Notwithstanding
any other provisions of this Agreement to the contrary, the Company
shall cause the Shelf Registration Statement and the related prospectus
and any amendment or supplement thereto, as of the effective date of
the Shelf Registration Statement, amendment or supplement, (i) to
comply in all material respects with the applicable requirements of the
Securities Act and the rules and regulations of the Commission
promulgated thereunder and (ii) not to contain any untrue statement of
a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading.

3.    Registration Procedures.    In connection with any
Shelf Registration Statement contemplated by Section  2 hereof
and, to the extent applicable, any Registered Exchange Offer
contemplated by Section  1 hereof, the following provisions shall
apply:

(a) The Company shall (i)  furnish
to each Initial Purchaser, prior to the filing thereof with the
Commission, a copy of the Registration Statement and each amendment
thereof and each supplement, if any, to the prospectus included therein
and, in the event that an Initial Purchaser (with respect to any
portion of an unsold allotment from the original offering of the
Initial Securities) is participating in the Registered Exchange Offer
or the Shelf Registration Statement, the Company shall use its best
efforts to reflect in each such document, when so filed with the
Commission, such comments as such Initial Purchaser reasonably may
propose not later than five business days after delivery of such
documents to such Initial Purchaser; (ii)  include the
information set forth in Annex A hereto on the cover, in Annex B hereto
in the ‘‘Exchange Offer Procedures’’ section
and the ‘‘Purpose of the Exchange Offer’’
section and in Annex C hereto in the ‘‘Plan of
Distribution’’ section of the prospectus forming a part of
the Exchange Offer Registration Statement and include the information
set forth in Annex D hereto in the letter of transmittal delivered
pursuant to the Registered Exchange Offer; (iii)  if requested by
an Initial Purchaser, include the information required by Items 507 or
508, as applicable, of Regulation S-K under the Securities Act in the
prospectus forming a part of the Exchange Offer Registration Statement;
(iv)  include within the prospectus contained in the Exchange
Offer Registration Statement a section entitled ‘‘Plan of
Distribution,’’ reasonably acceptable to the Initial
Purchasers, which shall contain a summary statement of the positions
taken or policies made by the staff of the Commission with respect to
the potential ‘‘underwriter’’ status of any
broker-dealer that is the beneficial owner (as defined in Rule
13d-3 under the Securities Exchange Act of 1934, as amended (the
‘‘Exchange Act’’)) of Exchange
Securities received by such broker-dealer in the Registered Exchange
Offer (a ‘‘Participating
Broker-Dealer’’), whether such positions or policies
have been publicly disseminated by the staff of the Commission or such
positions or policies, in the reasonable judgment of the Initial
Purchasers based upon advice of counsel (which may be in-house
counsel), represent the prevailing views of the staff of the
Commission; and (v)  in the case of a Shelf Registration
Statement, include the names of the Holders who propose to sell
Securities pursuant to the Shelf Registration Statement as selling
securityholders.

(b) The Company shall give
written notice to the Initial Purchasers, the Holders of the Securities
and any Participating Broker-Dealer from whom the Company has received
prior written notice that it will be a Participating Broker-Dealer in
the Registered Exchange Offer (which notice pursuant to clauses
(ii)-(v) hereof shall be accompanied by an instruction to suspend the
use of the prospectus until the requisite changes have been made):

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

(ii) of any request by the Commission
for amendments or supplements to the Registration Statement or the
prospectus included therein or for additional information;

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(iii) of the issuance by
the Commission of any stop order suspending the effectiveness of the
Registration Statement or the initiation of any proceedings for that
purpose;

(iv) of the receipt by the Company or
its legal counsel of any notification with respect to the suspension of
the qualification of the Securities for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose of which
the Company has knowledge; and

(v) of the
happening of any event that requires the Company to make changes in the
Registration Statement or the prospectus in order that the Registration
Statement or the prospectus do not contain an untrue statement of a
material fact nor omit to state a material fact required to be stated
therein or necessary to make the statements therein (in the case of the
prospectus, in light of the circumstances under which they were made)
not misleading.

(c) The Company shall make every
reasonable effort to obtain the withdrawal, at the earliest possible
time, of any order suspending the effectiveness of the Registration
Statement.

(d) The Company shall furnish to each
Holder of Securities included within the coverage of the Shelf
Registration, without charge, at least one copy of the Shelf
Registration Statement and any post-effective amendment thereto,
including financial statements and schedules, and, if the Holder so
requests in writing, all exhibits thereto (including those, if any,
incorporated by reference).

(e) The Company
shall deliver to each Exchanging Dealer and each Initial Purchaser, and
to any other Holder who so requests, without charge, at least one copy
of the Exchange Offer Registration Statement and any post-effective
amendment thereto, including financial statements and schedules, and,
if any Initial Purchaser or any such Holder requests, all exhibits
thereto (including those incorporated by reference).

(f) The Company shall, during the Shelf Registration
Period, deliver to each Holder of Securities included within the
coverage of the Shelf Registration, without charge, as many copies of
the prospectus (including each preliminary prospectus) included in the
Shelf Registration Statement and any amendment or supplement thereto as
such person may reasonably request. The Company consents, subject to
the provisions of this Agreement, to the use in accordance with
applicable law of the prospectus or any amendment or supplement thereto
by each of the selling Holders of the Securities in connection with the
offering and sale of the Securities covered by the prospectus, or any
amendment or supplement thereto, included in the Shelf Registration
Statement.

(g) The Company shall deliver to each
Initial Purchaser, any Exchanging Dealer, any Participating
Broker-Dealer and such other persons required to deliver a prospectus
following the Registered Exchange Offer, without charge, 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. The Company consents, subject to the provisions of
this Agreement, to the use in accordance with applicable law of the
prospectus or any amendment or supplement thereto by any Initial
Purchaser, if necessary, any Participating Broker-Dealer and such other
persons required to deliver a prospectus following the Registered
Exchange Offer in connection with the offering and sale of the Exchange
Securities covered by the prospectus, or any amendment or supplement
thereto, included in such Exchange Offer Registration Statement.

(h) Prior to any public offering of the Securities
pursuant to any Registration Statement, the Company shall cooperate
with the Holders of the Securities included therein and their Special
Counsel (as defined in paragraph (p) below) in connection with the
registration or qualification of the Securities for offer and sale
under the securities or ‘‘blue sky’’ laws of
such states of the United States as any Holder of the Securities
reasonably requests in writing and do any and all other acts or things
reasonably necessary or advisable to enable the offer and sale in such
jurisdictions of the Securities covered by such Registration Statement;
provided, however, that the Company shall not be
required to (i)  qualify generally to do business in any
jurisdiction where it is not then so qualified or (ii)  take any
action which would subject it to general service of process or to
taxation in any jurisdiction where it is not then so subject.

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(i) The Company shall
cooperate with the Holders of the Securities to facilitate the timely
preparation and delivery of certificates representing the Securities to
be sold pursuant to any Registration Statement free of any restrictive
legends and in such denominations and registered in such names as the
Holders may request a reasonable period of time prior to sales of the
Securities pursuant to such Registration Statement.

(j) Upon the occurrence of any event contemplated by
paragraphs (ii)  through (v) of Section  3(b) above during
the period for which the Company is required to maintain an effective
Registration Statement, the Company shall promptly prepare and file a
post-effective amendment to the Registration Statement or a supplement
to the related prospectus and any other required document so that, as
thereafter delivered to Holders of the Securities or purchasers of
Securities, the prospectus will not contain an untrue statement of a
material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. If the
Company notifies the Initial Purchasers, the Holders of the Securities
and any known Participating Broker-Dealer in accordance with paragraphs
(ii)  through (v) of Section  3(b) above to suspend the use
of the prospectus until the requisite changes to the prospectus have
been made, then the Initial Purchasers, the Holders of the Securities
and any such Participating Broker-Dealers shall suspend use of such
prospectus, and the period of effectiveness of the Shelf Registration
Statement provided for in Section  2(b) above and the Exchange
Offer Registration Statement provided for in Section  1 above
shall each be extended by the number of  days from and including
the date of the giving of such notice to and including the date when
the Initial Purchasers, the Holders of the Securities and any known
Participating Broker-Dealer shall have received such amended or
supplemented prospectus pursuant to this Section  3(j).

(k) Not later than the effective date of the
applicable Registration Statement, the Company will provide a CUSIP
number for the Initial Securities, the Exchange Securities or the
Private Exchange Securities, as the case may be, and provide the
applicable trustee with printed certificates for the Initial
Securities, the Exchange Securities or the Private Exchange Securities,
as the case may be, in a form eligible for deposit with The Depository
Trust Company.

(l) The Company will use its
reasonable best efforts to comply with all rules and regulations of the
Commission to the extent and so long as they are applicable to the
Registered Exchange Offer or the Shelf Registration and will make
generally available to its security holders (or otherwise provide in
accordance with Section  11(a) of the Securities Act) an earnings
statement satisfying the provisions of Section  11(a) of the
Securities Act, 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 first fiscal
quarter commencing after the effective date of the Registration
Statement, which statement shall cover such 12-month period.

(m) The Company shall use its reasonable best
efforts to cause the Indenture to be qualified under the Trust
Indenture Act of 1939, as amended, in a timely manner and, in
connection therewith, cooperate with the Trustee under the Indenture
and the Holders of Securities to effect such changes to the Indenture
as may be required for such qualification. 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.

(n) The Company may require each Holder of
Securities to be sold pursuant to the Shelf Registration Statement to
furnish to the Company such information regarding the Holder and the
distribution of the Securities as the Company may from time to time
reasonably require for inclusion in the Shelf Registration Statement,
and the Company may exclude from such registration the Securities of
any Holder that fails to furnish such information within a reasonable
time after receiving such request.

(o) The
Company shall enter into such customary agreements (including, if
requested, an underwriting agreement in customary form) and take all
such other action, if any, as any Holder of the Securities shall
reasonably request in order to facilitate the disposition of the
Securities pursuant to any Shelf Registration.

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(p) In the case of any
Shelf Registration, the Company shall (i)  make available at
reasonable times and upon reasonable notice for inspection by a
representative of the Holders of a majority in aggregate principal
amount of the Securities being sold, any underwriter participating in
any disposition pursuant to the Shelf Registration Statement and any
attorney, accountant or other agent retained by the Holders of the
Securities or any such underwriter all relevant financial and other
records, pertinent corporate documents and properties of the Company
and (ii)  cause the Company's officers, directors,
employees, accountants and auditors to supply all relevant information
reasonably requested by the Holders of the Securities or any such
underwriter, attorney, accountant or agent in connection with the Shelf
Registration Statement, in each case, as shall be reasonably necessary
to enable such persons to conduct a reasonable investigation within the
meaning of Section  11 of the Securities Act; provided,
however, that the foregoing inspection and information
gathering shall be coordinated on behalf of the Initial Purchasers by
you and on behalf of the other parties, by one counsel designated by
and on behalf of such other parties as described herein (which counsel
shall be Latham & Watkins LLP or another law firm reasonably
acceptable to the Company, such counsel being referred to herein as the
‘‘Special Counsel’’); provided,
further, however, that, as a condition to supplying
such information, the Company shall receive an agreement in writing
from such Special Counsel agreeing that any information that is
designated in writing by the Company, in good faith, as confidential at
the time of delivery of such information shall be kept confidential by
such Special Counsel and any other person entitled to receive such
information pursuant to this paragraph (p) unless (w) disclosure of
such information is required pursuant to applicable law or by court or
administrative order, (x) disclosure of such information is, in the
reasonable opinion of counsel to the Company, necessary to avoid or
correct a misstatement or omission of a material fact in any
Registration Statement, prospectus or any supplement or post-effective
amendment thereto or disclosure is otherwise required by law, (y) such
information becomes generally available to the public other than as a
result of a disclosure by such counsel or any other person entitled to
receive such information pursuant to this paragraph (p) in violation of
this proviso or (z) such information is approved for release by the
Company in writing.

(q) In the case of any Shelf
Registration, the Company, if requested by any Holder of Securities
covered thereby, shall cause (i)  its counsel to deliver an
opinion and updates thereof relating to the Securities in customary
form addressed to such Holders and the managing underwriters, if any,
thereof and dated, in the case of the initial opinion, the effective
date of such Shelf Registration Statement (it being agreed that the
matters to be covered by such opinion shall include, without
limitation, the due incorporation and good standing of the Company and
its ‘‘significant subsidiaries’’ (as defined in
Rule 1-02(w) of Regulation S-X); the qualification of the Company and
its significant subsidiaries to transact business as foreign
corporations; the due authorization, execution and delivery of the
relevant agreement of the type referred to in Section  3(o)
hereof; the due authorization, execution, authentication and issuance,
and the validity and enforceability, of the applicable Securities; the
absence of material legal or governmental proceedings involving the
Company and its significant subsidiaries; the absence of governmental
approvals required to be obtained in connection with the Shelf
Registration Statement, the offering and sale of the applicable
Securities, or any agreement of the type referred to in Section
3(o) hereof; the 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, respectively; and, as of the date of the opinion and as
of the effective date of the Shelf Registration Statement or most
recent post-effective amendment thereto, as the case may be, the
absence from such Shelf Registration Statement and the prospectus
included therein, as then amended or supplemented, and from any
documents incorporated by reference therein, if applicable, of an
untrue statement of a material fact or the omission to state therein a
material fact required to be stated therein or necessary to make the
statements therein not misleading (in the case of any such documents,
in the light of the circumstances existing at the time that such
documents were filed with the Commission under the Exchange Act);
(ii)  its officers to execute and deliver all customary documents
and certificates and updates thereof requested by any underwriters of
the applicable Securities; and (iii)  its 

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independent public accountants and the
independent public accountants with respect to any other entity, if
any, for which financial information is provided in the Shelf
Registration Statement to provide to the selling Holders of the
applicable Securities and any underwriter therefor a comfort letter in
customary form and covering matters of the type customarily covered in
comfort letters in connection with underwritten offerings, subject to
receipt of appropriate documentation as contemplated, and only if
permitted, by Statement of Auditing Standards No.  72.

(r) In the case of the Registered Exchange Offer, if
requested by any Initial Purchaser or any known Participating
Broker-Dealer, the Company shall cause (i)  its counsel to
deliver to such Initial Purchaser or such Participating Broker-Dealer a
signed opinion in the form set forth in Section  6(d)-(f) of the
Purchase Agreement with such changes as are customary in connection
with the preparation of a Registration Statement and (ii)  its
independent public accountants and the independent public accountants
with respect to any other entity, if any, for which financial
information is provided in the Registration Statement to deliver to
such Initial Purchaser or such Participating Broker-Dealer a comfort
letter, in customary form, meeting the requirements as to the substance
thereof as set forth in Section  6(a) of the Purchase Agreement,
with appropriate date changes.

(s) If a
Registered Exchange Offer or a Private Exchange is to be consummated,
upon delivery of the Initial Securities by Holders to the Company (or
to such other Person as directed by the Company) in exchange for the
Exchange Securities or the Private Exchange Securities, as the case may
be, the Company shall mark, or caused to be marked, on the Initial
Securities so exchanged that such Initial Securities are being canceled
in exchange for the Exchange Securities or the Private Exchange
Securities, as the case may be; in no event shall the Initial
Securities be marked as paid or otherwise satisfied.

(t) The Company will use its reasonable best efforts
to cause the Securities covered by any Registration Statement to
continue to be rated by the rating agencies that initially rated the
Securities during the period that any such Registration Statement is
required hereunder to remain effective (it being acknowledged, however,
that the foregoing shall not be deemed to require the Company to
maintain the rating of such Securities at the rating initially given to
the Securities).

(u) In the event that any
broker-dealer registered under the Exchange Act shall underwrite any
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
‘‘Rules’’) of the National Association
of Securities Dealers, Inc. (‘‘NASD’’))
thereof, whether as a Holder of such Securities or as an underwriter, a
placement or sales agent or a broker or dealer in respect thereof, or
otherwise, the Company will assist such broker-dealer in complying with
the requirements of such Rules, including, without limitation, by
(i)  if such Rules, including Rule  2720, shall so require,
engaging a ‘‘qualified independent
underwriter’’ (as defined in Rule  2720) to
participate in the preparation of the Registration Statement relating
to such Securities, to exercise usual standards of due diligence in
respect thereto and, if any portion of the offering contemplated by
such Registration Statement is an underwritten offering or is made
through a placement or sales agent, to recommend the yield of such
Securities, (ii)  indemnifying any such qualified independent
underwriter to the extent of the indemnification of underwriters
provided in Section  5 hereof and (iii)  providing such
information to such broker-dealer as may be required in order for such
broker-dealer to comply with the requirements of the Rules.

(v) The Company shall use its reasonable best
efforts to take all other steps necessary to effect the registration of
the Securities covered by a Registration Statement contemplated
hereby.

(w) Notwithstanding any other provision
hereof, the Company may postpone or suspend the filing or the
effectiveness of a Registration Statement (or any amendments or
supplements thereto) if (i) such action is required by applicable law
or (ii) such action is taken by the Company in good faith and for valid
business reasons (not including the avoidance of the Company's
obligations hereunder), including the acquisition or divestiture of
assets, other pending corporate developments, public filings with the
Commission or other similar events, so long as the Company promptly
thereafter complies with the requirements of Section 3(j) hereof, if
applicable. 

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Notwithstanding the occurrence of any event
referred to in the immediately preceding sentence (each such
occurrence, a ‘‘Suspension’’), no such
Suspension shall suspend, postpone or in any other manner affect the
running of the time period after which a Registration Default shall be
deemed to occur and, if the filing or effectiveness of any such
Registration Statement is postponed or suspended as a result of a
Suspension, a Registration Default shall nonetheless exist if all other
requirements required for the occurrence of a Registration Default
shall then be satisfied, and the provisions of Section 6 hereof
requiring the accrual and payment of Additional Interest, as set forth
in such Section, on the Securities shall be payable.

4.    Registration Expenses.

(a) All
expenses incident to the Company's performance of and compliance
with this Agreement will be borne by the Company, regardless of whether
a Registration Statement is ever filed or becomes effective, including
without limitation;

(i) all registration and
filing fees and expenses;

(ii) all fees and
expenses of compliance with federal securities and state
‘‘blue sky’’ or securities laws;

(iii) all expenses of printing (including printing
certificates for the Securities to be issued in the Registered Exchange
Offer and the Private Exchange and printing of Prospectuses), messenger
and delivery services and telephone;

(iv) all
fees and disbursements of counsel for the Company; and

(v)   all fees and disbursements of
independent certified public accountants of the Company (including the
expenses of any special audit and comfort letters required by or
incident to such performance).

The Company will bear its
internal expenses (including, without limitation, all salaries and
expenses of its officers and employees performing legal or accounting
duties), the expenses of any annual audit and the fees and expenses of
any person, including special experts, retained by the Company.

(b) In connection with any Registration Statement
required by this Agreement, the Company will reimburse the Initial
Purchasers and the Holders of Transfer Restricted Securities who are
tendering Initial Securities in the Registered Exchange Offer and/or
selling or reselling Securities pursuant to the ‘‘Plan of
Distribution’’ contained in the Exchange Offer Registration
Statement or the Shelf Registration Statement, as applicable, for the
reasonable fees and disbursements of the Special Counsel.

5.    Indemnification.

(a) The
Company agrees to indemnify and hold harmless each Holder of the
Securities, any Participating Broker-Dealer and each person, if any,
who controls such Holder or such Participating Broker-Dealer within the
meaning of the Securities Act or the Exchange Act (each Holder, any
Participating Broker-Dealer and such controlling persons are referred
to collectively as the ‘‘Indemnified
Parties’’) from and against any losses, claims, damages
or liabilities, joint or several, or any actions in respect thereof
(including, but not limited to, any losses, claims, damages,
liabilities or actions relating to purchases and sales of the
Securities) to which each Indemnified Party may become subject under
the Securities Act, the Exchange Act or otherwise, insofar as such
losses, claims, damages, liabilities or actions arise out of or are
based upon any untrue statement or alleged untrue statement of a
material fact contained in a Registration Statement or prospectus or in
any amendment or supplement thereto or in any preliminary prospectus
relating to a Shelf Registration, 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 shall reimburse, as incurred, the
Indemnified Parties for any legal or other expenses reasonably incurred
by them in connection with investigating or defending any such loss,
claim, damage, liability or action in respect thereof; 

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provided, however, that
(i) the Company shall not be liable in any such case to the extent that
such loss, claim, damage or liability arises out of or is based upon
any untrue statement or alleged untrue statement or omission or alleged
omission made in a Registration Statement or prospectus or in any
amendment or supplement thereto or in any preliminary prospectus
relating to a Shelf Registration in reliance upon and in conformity
with written information pertaining to such Holder and furnished to the
Company by or on behalf of such Holder specifically for inclusion
therein and (ii) with respect to any untrue statement or omission or
alleged untrue statement or omission made in any prospectus relating to
a Shelf Registration Statement, the indemnity agreement contained in
this subsection (a) shall not inure to the benefit of any Holder or
Participating Broker-Dealer from whom the person asserting any such
losses, claims, damages or liabilities purchased the Securities
concerned, to the extent that a prospectus relating to such Securities
was required to be delivered by such Holder or Participating
Broker-Dealer under the Securities Act in connection with such purchase
and any such loss, claim, damage or liability of such Holder or
Participating Broker-Dealer results from the fact that there was not
delivered to such person, at or prior to the confirmation of the sale
of such Securities to such person, a prospectus correcting any such
untrue statement or omission or alleged untrue statement or omission;
provided that the Company had previously furnished copies
thereof to such Holder or Participating Broker-Dealer;
provided further, however, that this
indemnity agreement will be in addition to any liability which the
Company may otherwise have to such Indemnified Party. The Company shall
also indemnify underwriters, their officers and directors and each
person who controls such underwriters within the meaning of the
Securities Act or the Exchange Act to the same extent as provided above
with respect to the indemnification of the Holders of the Securities if
requested by such Holders.

(b) Each Holder of
the Securities, severally and not jointly, will indemnify and hold
harmless the Company and each person, if any, who controls the Company
within the meaning of the Securities Act or the Exchange Act from and
against any losses, claims, damages or liabilities or any actions in
respect thereof, to which the Company or any such controlling person
may become subject under the Securities Act, the Exchange Act or
otherwise, insofar as such losses, claims, damages, liabilities or
actions arise out of or are based upon any untrue statement or alleged
untrue statement of a material fact contained in a Registration
Statement or prospectus or in any amendment or supplement thereto or in
any preliminary prospectus relating to a Shelf Registration, or arise
out of or are based upon the omission or alleged omission to state
therein a material fact necessary to make the statements therein not
misleading, but in each case only to the extent that the untrue
statement or omission or alleged untrue statement or omission was made
in reliance upon and in conformity with written information pertaining
to such Holder and furnished to the Company by or on behalf of such
Holder specifically for inclusion therein; and, subject to the
limitation set forth immediately preceding this clause, shall
reimburse, as incurred, the Company for any legal or other expenses
reasonably incurred by the Company or any such controlling person in
connection with investigating or defending any loss, claim, damage,
liability or action in respect thereof. This indemnity agreement will
be in addition to any liability which such Holder may otherwise have to
the Company or any of its controlling persons.

(c) Promptly after receipt by an indemnified party
under this Section  5 of notice of the commencement of any action
or proceeding (including a governmental investigation), such
indemnified party will, if a claim in respect thereof is to be made
against the indemnifying party under this Section  5, notify the
indemnifying party of the commencement thereof; provided,
however, that the omission so to notify the indemnifying party
(i) shall not relieve the indemnifying party from any obligations to
any indemnified party other than the indemnification obligation
provided in paragraph  (a) or (b) above. In case any such action
is brought against any indemnified party, and it notifies the
indemnifying party of the commencement thereof, the indemnifying party
will be entitled to participate therein and, to the extent that it may
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 

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indemnifying party to such indemnified party
of its election so to assume the defense thereof the indemnifying party
will not be liable to such indemnified party under this Section
5 for any legal or other expenses, other than reasonable costs of
investigation, subsequently incurred by such indemnified party in
connection with the defense thereof; provided,
however, that the indemnified party shall have the right to
employ counsel to represent the indemnified party and their respective
controlling persons who may be subject to liability arising out of any
claim in respect of which indemnity may be sought by the indemnified
party against the indemnifying party under this Section 5 if the
employment of such counsel shall have been authorized in writing by the
indemnifying party in connection with the defense of such action, if in
the written opinion of counsel to either the indemnifying party or the
indemnified party, representation of both parties by the same counsel
would be inappropriate due to actual or likely conflicts of interest
between them or the indemnifying party shall have failed to employ
counsel within a reasonable period of time, and in that event the fees
and expenses of one firm of separate counsel (in addition to the fees
and expenses of one firm of local counsel in each applicable
jurisdiction) shall be paid by the indemnifying party. No indemnifying
party shall, without the prior written consent of the indemnified
party, effect any settlement of any pending or threatened action in
respect of which any indemnified party is or could have been a party
and indemnity could have been sought hereunder by such indemnified
party unless such settlement (i) includes an unconditional release of
such indemnified party from all liability on any claims that are the
subject matter of such action, 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) If the
indemnification provided for in this Section  5 is unavailable or
insufficient to hold harmless an indemnified party under subsections
(a) or (b) above, then each indemnifying party shall contribute to the
amount paid or payable by such indemnified party as a result of the
losses, claims, damages or liabilities (or actions in respect thereof)
referred to in subsection  (a) or (b) above in such proportion as
is appropriate to reflect the relative fault of the indemnifying party
or parties on the one hand and the indemnified party on the other in
connection with the statements or omissions that 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 the parties shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company on the one hand or such
Holder or such other indemnified party, as the case may be, on the
other, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or
omission. The amount paid by an indemnified party as a result of the
losses, claims, damages or liabilities referred to in the first
sentence of this subsection  (d) shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party
in connection with investigating or defending any action or claim which
is the subject of this subsection  (d). Notwithstanding any other
provision of this Section  5(d), the Holders of the Securities
shall not be required to contribute any amount in excess of the amount
by which the net proceeds received by such Holders from the sale of the
Securities pursuant to a Registration Statement exceeds the amount of
damages which such Holders have 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. For purposes of this paragraph (d),
each person, if any, who controls such indemnified party within the
meaning of the Securities Act or the Exchange Act shall have the same
rights to contribution as such indemnified party and each person, if
any, who controls the Company within the meaning of the Securities Act
or the Exchange Act shall have the same rights to contribution as the
Company.

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(e) The agreements
contained in this Section  5 shall survive the sale of the
Securities pursuant to a Registration Statement and shall remain in
full force and effect, regardless of any termination or cancellation of
this Agreement or any investigation made by or on behalf of any
indemnified party.

6.    Additional Interest Under
Certain Circumstances.

(a)  Additional
interest (the ‘‘Additional Interest’’)
with respect to each Transfer Restricted Security shall be assessed as
follows if either of the following events occur (each such event in
clauses  (i) and (ii) below being herein called an
‘‘Registration Default’’):

(i) any Registration Statement required by this
Agreement is not declared effective by the Commission on or prior to
the applicable Effectiveness Deadline; or

(ii)
on and after the applicable Effectiveness Deadline (plus an additional
30 days in respect of the Exchange Offer Registration Statement), any
Registration Statement required by this Agreement has been declared
effective by the Commission but (A)  such Registration Statement
thereafter ceases to be effective or (B)  such Registration
Statement or the related prospectus ceases to be usable in connection
with resales of Transfer Restricted Securities during the periods
specified herein because (1)  any event occurs as a result of
which the related prospectus forming part of such Registration
Statement would include any untrue statement of a material fact or omit
to state any material fact necessary to make the statements therein in
the light of the circumstances under which they were made not
misleading, (2)  it shall be necessary to amend such Registration
Statement or supplement the related prospectus to comply with the
Securities Act or the Exchange Act or the respective rules thereunder
or (3) of a Suspension by the Company in accordance with Section 3(w)
hereof.

Each of the foregoing will constitute a
Registration Default whatever the reason for any such event and whether
it is voluntary or involuntary or is beyond the control of the Company
or pursuant to operation of law or as a result of any action or
inaction by the Commission.

Additional Interest shall
accrue on each Transfer Restricted Security over and above the interest
set forth in the title of such Transfer Restricted Security from and
including the date on which any such Registration Default shall occur
to but excluding the date on which all such Registration Defaults have
ceased to be continuing, at a rate of 0.50% per annum (the
‘‘Additional Interest Rate’’).

(b) A Registration Default referred to in
Section  6(a)(ii) hereof shall be deemed not to have occurred and
be continuing in relation to a Shelf Registration Statement or the
related prospectus if (i)  such Registration Default has occurred
solely as a result of (x) the filing of a post-effective amendment to
such Shelf Registration Statement to incorporate annual audited
financial information with respect to the Company where such
post-effective amendment is not yet effective and needs to be declared
effective to permit Holders to use the related prospectus or (y) other
material events with respect to the Company that would need to be
described in such Shelf Registration Statement or the related
prospectus and (ii) in the case of clause (y), the Company is
proceeding promptly and in good faith to amend or supplement such Shelf
Registration Statement and related prospectus to describe such events;
provided, however, that in any case if such
Registration Default occurs for a continuous period in excess of
30  days, Additional Interest shall be payable in accordance with
the above paragraph from the  date of such Registration Default
until such Registration Default ceases.

(c)
Notwithstanding the foregoing, the Company shall not be required to pay
the Additional Interest required pursuant to paragraph (a) above to a
Holder of Transfer Restricted Securities if the applicable Registration
Default arises by reason of the failure of such Holder to provide such
information as (i) the Company may reasonably request, with reasonable
prior written notice, for use in the Shelf Registration Statement or
any prospectus included therein to the extent the Company reasonably
determines that such information is required to be included therein by
applicable law, (ii) the NASD or the Commission may request in
connection with such Shelf 

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Registration Statement or (iii) is required
to comply with the agreements of such Holder contained in Section 3(a)
to the extent compliance thereof is necessary for the Shelf
Registration Statement to be declared effective.

(d) Any amounts of Additional Interest due pursuant
to Section  6(a) will be payable in cash on the regular interest
payment dates with respect to the Securities. The amount of Additional
Interest will be determined by multiplying the applicable Additional
Interest Rate by the principal amount of the Securities and further
multiplied by a fraction, the numerator of which is the number
of  days such Additional Interest Rate was applicable during such
period (determined on the basis of a 360-day year comprised of twelve
30-day months), and the denominator of which is 360.

(e) ‘‘Transfer Restricted
Securities’’ means each Security until (i)  the
date on which such Security has been exchanged by a person other than a
broker-dealer for a freely transferable Exchange Security in the
Registered Exchange Offer, (ii)  following the exchange by a
broker-dealer in the Registered Exchange Offer of an Initial Security
for an Exchange Security, the date on which such Exchange Security is
sold to a purchaser who receives from such broker-dealer on or prior to
the date of such sale a copy of the prospectus contained in the
Exchange Offer Registration Statement, (iii)  the date on which
such Security has been effectively registered under the Securities Act
and disposed of in accordance with the Shelf Registration Statement or
(iv)  the date on which such Security is distributed to the
public pursuant to Rule  144 under the Securities Act or is
saleable pursuant to Rule  144(k) under the Securities Act.

7.    Rules  144 and 144A.    The Company agrees
with each Holder, for so long as any Transfer Restricted Securities
remain outstanding and during any period in which the Company (i) is
not subject to Section  13 or 15(d) of the Exchange Act, to make
available, upon request of any Holder, to such Holder or beneficial
owner of Transfer Restricted Securities in connection with any sale
thereof and any prospective purchaser of such Transfer Restricted
Securities designated by such Holder or beneficial owner, the
information required by Rule 144A(d)(4) under the Securities Act in
order to permit resales of such Transfer Restricted Securities pursuant
to Rule 144A, and (ii) is subject to Section  13 or 15(d) of the
Exchange Act, to make all filings required thereby in a timely manner
in order to permit resales of such Transfer Restricted Securities
pursuant to Rule 144.

8.    Underwritten
Registrations.    If any of the Transfer Restricted Securities
covered by any Shelf Registration are to be sold in an underwritten
offering, subject to the proviso in Section 3(o) hereof, the investment
banker or investment bankers and manager or managers that will
administer the offering (‘‘Managing
Underwriters’’) will be selected by the Holders of a
majority in aggregate principal amount of such Transfer Restricted
Securities to be included in such offering and will be reasonably
acceptable to the Company.

No person may participate in any
underwritten registration hereunder unless such person (i) agrees to
sell such person's Transfer Restricted Securities on the basis
reasonably 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.

9.    Miscellaneous.

(a)    Remedies.    The Company
acknowledges and agrees that any failure by the Company to comply with
its obligations under Section  1 and 2 hereof may result in
material irreparable injury to the Initial Purchasers or the Holders
for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in
the event of any such failure, the Initial Purchasers or any Holder may
obtain such relief as may be required to specifically enforce the
Company's obligations under Sections  1 and 2 hereof. The
Company further agrees to waive the defense in any action for specific
performance that a remedy at law would be adequate.

(b)    No Inconsistent Agreements.    The
Company will not on or after the date of this Agreement enter into any
agreement with respect to its securities that is inconsistent with the

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rights granted to the Holders in this
Agreement or otherwise conflicts with the provisions hereof. The
Company hereby represents that the rights granted to the Holders
hereunder do not conflict with and are not inconsistent with the rights
granted to the holders of the Company's securities under any
agreement in effect on the date hereof.

(c)    Amendments and Waivers.    The
provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions
hereof may not be given, except by the Company and with the written
consent of the Holders of a majority in principal amount of the
Securities affected by such amendment, modification, supplement, waiver
or consents; provided, however, that, with respect to
any matter that directly or indirectly adversely affects the rights of
any Holder of Transfer Restricted Securities occurring within the
period in which any Registration Statement is effective for such
Holder, the Company shall obtain the written consent of each such
Holder against which such amendment, modification, supplement, waiver,
consent or departure is to be effective. Notwithstanding the foregoing
(except of the foregoing proviso), a waiver or consent to departure
from the provisions hereof with respect to a matter that relates
exclusively to the rights of any Holder of Securities whose Securities
are being sold or exchanged pursuant to a Registration Statement and
that does not directly or indirectly adversely affect the rights of any
other Holder of Securities may be given by Holders of at least a
majority in aggregate principal amount of the Securities being sold or
exchanged by such holders pursuant to such Registration Statement;
provided, however, that the provisions of this
sentence may not be amended, modified or supplemented except in
accordance with the provisions of the immediately preceding sentence.
Without the consent of the Holder of each Security, however, no
modification may change the provisions relating to the payment of
Additional Interest.

(d)    Notices.    All notices and other
communications provided for or permitted hereunder shall be made in
writing by hand delivery, first-class mail, facsimile transmission, or
air courier which guarantees overnight delivery:

(1) if to a Holder of the Securities, at the most
current address given by such Holder to the Company.

(2)
if to the Initial Purchasers;

Lehman Brothers Inc.

745 Seventh Avenue
 New York, New York 10019
 Fax No.: (212)
526-0943
 Attention: Debt Capital Markets, Global Power

and to:

Lehman Brothers Inc.
 745
Seventh Avenue
 New York, New York 10019
 Attention: General
Counsel

with a copy to:

J.P. Morgan
Securities Inc.
 270 Park Avenue
 New York, New York 10017

Fax No.: (212) 834-6081
 Attention: High Grade Syndicate
Desk

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with a copy to:

Greenwich Capital Markets, Inc.
 101 Park Avenue

New York, New York 10178
 Fax No.: (212) 401-3456
 Attention:
Paul Stevelman

and with a copy to:

Latham & Watkins LLP
 885 Third Avenue, Suite
1000
 New York, New York 10022-4802
 Fax No.: (212)
751-4864
 Attention: Jonathan R. Rod

(3) if to the
Company, at its address as follows:

MidAmerican
Energy Holdings Company
 666 Grand Avenue
 Des Moines, Iowa
50303
 Fax No.: (402) 345-9318
 Attention: General Counsel

with a copy to:

Willkie Farr &
Gallagher
 787 Seventh Avenue
 New York, New York 10019

Fax No.: (212) 728-8111
 Attention: Peter J. Hanlon

All such notices and communications shall be deemed
to have been duly given: at the time delivered by hand, if personally
delivered; three business  days after being deposited in the
mail, postage prepaid, if mailed; when receipt is acknowledged by
recipient's facsimile machine operator, if sent by facsimile
transmission; and on the  day delivered, if sent by overnight air
courier guaranteeing next  day delivery.

(e)    Third Party Beneficiaries.    The
Holders shall be third party beneficiaries to the agreements made
hereunder between the Company, on the one hand, and the Initial
Purchasers, on the other, and shall have the right to enforce such
agreements directly to the extent they may deem such enforcement
necessary or advisable to protect their rights or the rights of Holders
hereunder.

(f)    Successors and
Assigns.    This Agreement shall be binding upon the Company and
its successors and assigns.

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

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

(i)    Governing Law.    THIS AGREEMENT
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAWS.

(j)    Severability.    If any
one or more of the provisions contained herein, or the application
thereof in any circumstance, is held invalid, illegal or unenforceable,
the validity, legality and 

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enforceability of any such provision in
every other respect and of the remaining provisions contained herein
shall not be affected or impaired thereby.

(k)    Securities Held by the
Company.    Whenever the consent or approval of Holders of a
specified percentage of principal amount of Securities is required
hereunder, Securities held by the Company or its affiliates (other than
subsequent Holders of Securities if such subsequent Holders are deemed
to be affiliates solely by reason of their holdings of such Securities)
shall not be counted in determining whether such consent or approval
was given by the Holders of such required percentage.

(l)    Submission to
Jurisdiction.    Each of the parties hereto hereby submits to the
exclusive jurisdiction of the Federal and State Courts of the Borough
of Manhattan in the City of New York in any suit or proceeding arising
out of or relating to this Agreement or the transactions contemplated
hereby.

17

Table of Contents
If the foregoing is in accordance with
your understanding of our agreement, please sign and return to the
Company a counterpart hereof, whereupon this instrument, along with all
counterparts, will become a binding agreement among the several Initial
Purchasers and the Company in accordance with its terms.

							
	 			Very
truly yours,
	 			MIDAMERICAN
ENERGY HOLDINGS COMPANY
	 			By:			 /s/ Douglas L.
Anderson
	 			 			Name:    Douglas
L. Anderson
 Title:       General
Counsel
	

The foregoing
Registration
 Rights Agreement is hereby confirmed
 and
accepted as of the date first
 above written.

Lehman Brothers Inc.
 J.P. Morgan Securities
Inc.
 Greenwich Capital Markets, Inc.
 as Representatives of
the several Initial Purchasers

				
	LEHMAN
BROTHERS
INC.
	By:			/s/ Martin
Goldberg
	Name:			Martin
Goldberg
	Title:			Senior Vice
President
	J.P.
MORGAN SECURITIES INC.
	By:			/s/ Robert
Bottamedi
	Name:			Robert
Bottamedi
	Title:			Vice
President
	GREENWICH
CAPITAL MARKETS,
INC.
	By:			/s/ Donald
Devine
	Name:			Donald
Devine
	Title:			 
	

18exv10w2

 

EXHIBIT 10.2 TO THE SEPARATION AGREEMENT

TAX ALLOCATION AGREEMENT dated as of                , 2006 (this
“Agreement”), among EXTENDICARE INC., a Canadian
corporation (“Extendicare”), EXTENDICARE HOLDINGS, INC., a
Wisconsin corporation (“EHI”), and ASSISTED LIVING CONCEPTS, INC., a
Nevada corporation (“ALC” and, collectively
with EHI and Extendicare, the “Companies”).

                WHEREAS, as of the date of this Agreement, EHI and ALC belong to an Affiliated Group that has
elected to file consolidated U.S. federal income Tax Returns;

                WHEREAS,
as of the date of this Agreement, EHI is an indirect, wholly owned subsidiary of Extendicare;

                WHEREAS,
as of the date of this Agreement, Extendicare Health Services Inc. is
a direct, wholly owned subsidiary of EHI;

                WHEREAS,
as of the date of this Agreement, ALC is a direct, wholly owned subsidiary of EHSI;

                WHEREAS, Extendicare will purchase the stock of ALC from EHSI in exchange for a note with a
face amount equal to the fair market value of ALC (the “ALC Purchase”);

                WHEREAS, ALC will reorganize its share capital to create two classes of common shares (the ALC
Multiple Voting Shares and the ALC Subordinate Voting Shares) which will have similar voting rights
to the subordinate voting and multiple voting common shares of Extendicare, respectively;

                WHEREAS, pursuant to the Plan of Arrangement, the existing subordinate voting shareholders of
Extendicare (other than any dissenters) will exchange each of their shares for one new
Extendicare Common Share and one ALC Subordinate Voting Share and the
existing multiple voting shareholders of
Extendicare (other than any dissenters) will exchange each of their shares for 1.075 new
Extendicare Common Shares and one ALC Multiple Voting Share (“the ALC Distribution”);

                WHEREAS, pursuant to the Plan of Arrangement and immediately after the ALC Distribution, the
new Extendicare Common Shares will be transferred to Newco for Newco Notes or, at the election of certain
holders, to the Holding Partnership in exchange for units of Holding Partnership, and the Newco
Notes will then immediately be transferred to Extendicare REIT in exchange for REIT Units (the
“Conversion” and, together with the ALC Distribution, the “Separation”); and

                WHEREAS, the Companies desire to allocate the Tax liabilities and benefits of transactions
that occur on or prior to, and that may occur after, the date on which the Separation occurs (the
“Separation Date”) and to provide for certain other Tax matters.

 

 

                NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the
Companies (each on behalf of itself, each of its Affiliates and its future Affiliates) hereby agree
as follows:

ARTICLE I

Definitions

                The following terms shall have the following meanings:

                “Adjustment Request” means any claim or request filed with any governmental authority
for any adjustment of Tax, Refund or change in available Tax attributes.

                “Affiliate” of any person means any other person that, after the Separation, controls,
is controlled by, or is under common control with such person. For purposes of this definition,
“control” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a person, whether through ownership of voting
securities, by contract or otherwise.

                “Affiliated Group” means an affiliated group of corporations within the meaning of
Section 1504(a) of the Code, or any analogous concept under local, state or foreign law for the
taxable period in question.

                “Agreement” is defined in the preamble.

                “ALC” is defined in the preamble.

                “ALC Distribution” is defined in the recitals.

                “ALC Group” means ALC and its Affiliates.

                “ALC Multiple Voting Shares” is defined in the Plan of Arrangement.

                “ALC Purchase” is defined in the recitals.

                “ALC Subordinate Voting Shares” is defined in the Plan of Arrangement.

                “Applicable Rate” means the sum of (i) the prime rate of interest per annum published
in the print edition of the Wall Street Journal, the international daily newspaper published in New
York City, and (ii) 2%; each change in the prime rate shall be effective from and including the date
such change is published in the Wall Street Journal.

2

 

                “Arrangement
Agreement” means the Arrangement Agreement, dated as of
          , 2006, between Extendicare REIT,
Extendicare Trust, Extendicare Holding General Partner Inc.,
Extendicare Limited Partnership, Extendicare, Extendicare Acquisition
Inc., Extendicare ULC and ALC.

                “Code” means the Internal Revenue Code of 1986, as amended.

                “Companies” is defined in the preamble.

                “Conversion” is defined in the recitals.

                “Due Date” means, with respect to any Tax Return, the date on which such Tax Return is
due to be filed with the appropriate Taxing Authority pursuant to applicable law, giving effect to
any applicable extensions.

                “EHI” is defined in the preamble.

                “EHSI” is defined in the recitals.

                “EHSI Assisted Living Facilities” is defined in the Separation Agreement.

                “Employee Benefits Services Agreement” is defined in the Separation Agreement.

                “Extendicare” is defined in the preamble.

                “Extendicare Common Shares” is defined in the Plan of Arrangement.

                “Extendicare Group” means Extendicare and its Affiliates. For the avoidance of doubt,
the Extendicare Group excludes any entity that is a member of the ALC Group.

                “Extendicare REIT” means Extendicare Real Estate Investment Trust, a trust established
under the laws of the Province of Ontario.

                “Extendicare Shares” is defined in the Plan of Arrangement.

                “Final Determination” means the final resolution of liability for any Tax for any
taxable period by or as a result of: (i) a final and unappealable decision, judgment, decree or
other order by any court of competent jurisdiction; (ii) a final settlement with the IRS, a closing
agreement or accepted offer in compromise under Code Sections 7121 or 7122 or a comparable
settlement, agreement or accepted offer in compromise under the laws of another jurisdiction; (iii)
any allowance of a Refund, but only after the expiration of all periods during which such Refund
may be recovered by the Taxing Authority imposing the Tax; or (iv) any other final disposition,
including by reason of the expiration of the applicable statute of limitations.

                “Group” means the Extendicare Group or the ALC Group, or both, as the context
requires.

3

 

                “Indemnifying Party” has the meaning set forth in Section 5.01.

                “Indemnitee” has the meaning set forth in Section 5.01.

                “Intended Tax Treatment” has the meaning set forth in Section 4.01.

                “IRS” means the United States Internal Revenue Service.

                “Joint Return” means any Return for an Affiliated Group that includes both a member of
the Extendicare Group and a member of the ALC Group.

                “Newco” is defined in the Plan of Arrangement.

                “Newco Notes” is defined in the Plan of Arrangement.

                “Past Practices” has the meaning set forth in Section 3.03.

                “Plan
of Arrangement” is defined in the Arrangement Agreement.

                “Pre-Separation Period” means any taxable period (or portion thereof) ending on or
before the Separation Date.

                “Refund” means any cash refund of Tax or reduction of Tax by means of credit, offset
or otherwise.

                “Separate Return” means (i) in the case of the ALC Group, a Tax Return of any member
of that Group (including any consolidated, combined, affiliated or unitary Return) that does not
include, for all or any portion of the relevant taxable period, any member of the Extendicare Group
and (ii) in the case of the Extendicare Group, a Tax Return of any member of that Group (including
any consolidated, combined, affiliated or unitary Return) that does not include, for all or any
portion of the relevant taxable period, any member of the ALC Group.

                “Separation” is defined in the recitals.

                “Separation Agreement” means the Separation Agreement, dated as of              , 2006,
between Extendicare and ALC.

                “Separation Date” is defined in the recitals.

                “Tax” means all forms of taxation, levies or duties imposed, or required to be
collected or withheld, including charges, together with any related interest, penalties or other
additional amounts. For the avoidance of doubt, Tax includes Canadian employment insurance
premiums, Canada or provincial pension plan contributions, Canadian employee health premiums and Canadian workers’ compensation premiums imposed by the
government of Canada or a province of Canada.

4

 

                “Tax Advisor” means a U.S. tax counsel or other tax advisor of recognized national
standing.

                “Tax Contest” means an audit, review, examination, assessment, reassessment or any
other administrative or judicial proceeding with the purpose or effect of determining or
redetermining Tax (including any administrative or judicial review of any Adjustment Request).

                “Tax Dispute” means any dispute arising in connection with this Agreement.

                “Tax Return” or “Return” means any return, filing, report, questionnaire,
information statement, claim for refund, or other document required or permitted to be filed,
including any amendments that may be filed, for any taxable period with any Taxing Authority
(whether or not a payment is required to be made with respect to such filing).

                “Taxing Authority” means any governmental authority that imposes, assesses or collects
Tax, including the IRS, any U.S. state or local taxing authority, the Canada Revenue Agency, the
Ontario Ministry of Finance and any other relevant provincial taxing authority.

                “Transaction Agreements” means this Agreement, the
Arrangement Agreement, the Plan of Arrangement and the Separation Agreement.

                “Transactions”
means the transactions described on Exhibit [A], including the ALC Purchase, the
ALC Distribution and the Conversion, and any other transactions related thereto or otherwise
contemplated by the Transaction Agreements.

5

 

ARTICLE II

Liability For Tax

                SECTION
2.02. Ordinary Course Tax. (a) Subject to Section 2.02, ALC shall be
liable, and shall indemnify and hold the Extendicare Group harmless, for all Tax that is
attributable to members of the ALC Group for all periods. The amount of Tax “attributable to” the ALC Group shall be
determined in accordance with the principles described in
Exhibit B.

               (b) EHI shall be liable, and shall indemnify and hold the ALC Group harmless, for
all Tax that is attributable to members of the Extendicare Group for all periods. The
amount of Tax “attributable to” members of the Extendicare
Group shall be determined in accordance with the principles described
in Exhibit B.

               (c) For purposes of this Section 2.01, all Tax that is attributable to each EHSI Assisted
Living Facility listed on Schedule 2.01(c) (i) shall be treated as attributable to the
Extendicare Group for all periods (or portion thereof) ending on or before the date listed
on Schedule 2.01(c) with respect to such EHSI Assisted Living Facility and (ii) shall be
treated as attributable to the ALC Group for all periods (or portion thereof) beginning
after the date listed on Schedule 2.01(c) with respect to such EHSI Assisted Living Facility.

               (d) EHI and ALC shall agree on a reasonable apportionment between the Extendicare
Group and the ALC Group of any existing limitation under Code Section 382 that applies to
any net operating loss carryforwards in the existing Extendicare Group, and any comparable
limitations under state or local law.

                SECTION 2.02. Transaction Taxes. EHI shall be liable, and shall indemnify and hold
the ALC Group harmless, for any Tax resulting from, or arising in connection with, the
Transactions.

                SECTION 2.03. Refunds. Any Refund attributable to (i) any Tax for which any member
of the ALC Group is responsible under this Article II shall be for the account of ALC and (ii) any
Tax for which any member of the Extendicare Group is responsible under this Article II shall be for
the account of EHI. To the extent a party receives a Refund that is for the account of the other
party under the preceding sentence,

6

 

the recipient-party shall pay or cause to be paid the amount of the Refund to the other party.
If all or any portion of such Refund is not paid to the other party within 30 days after receipt,
interest shall accrue on the unpaid portion of such Refund at the Applicable Rate compounded
quarterly.

                SECTION 2.04. Tax Sharing Agreements. Except as set forth in this Agreement, any and
all existing Tax sharing agreements, arrangements, understandings and practices regarding Tax and
its payment, allocation or sharing between any member of the ALC Group and any member of the
Extendicare Group shall be terminated as of the Separation. This Section 2.04 does not address any
Tax sharing agreements solely between members of the ALC Group or solely between members of the
Extendicare Group.

ARTICLE III

Preparation and Filing of Tax Returns

                SECTION 3.01. Extendicare Responsibility. (a) Subject to paragraph (b), EHI shall
make all determinations with respect to, shall have ultimate control over the preparation of, and
shall file all (i) Joint Returns and (ii) Separate Returns
of the Extendicare Group, in each case as it
determines to be mandatory or advisable and for all taxable periods.

                    (b) If, in connection with the preparation of any Joint Return, EHI modifies any
information relating to, or provided in, the pro forma federal and state income Tax
Returns or other information related to members of the ALC Group prepared by ALC and
provided to EHI pursuant to Section 3.02, the portions of the Joint Returns that include
such information shall be submitted to ALC no later than 15 days prior to the Due Date for
such Joint Returns (or if such Due Date is within 15 days following the Separation Date,
as promptly as practicable following the Separation Date). Within 5 days after delivery
of any such revised portions of any Joint Return, ALC shall provide comments to EHI in
writing where ALC objects to any revisions that could, in its reasonable discretion, be
expected to adversely impact any member of the ALC Group. Such ALC comments shall be
incorporated into the Joint Return.

                SECTION 3.02. ALC Responsibility. (a) ALC shall make all determinations with
respect to, shall have ultimate control over the preparation of, and shall file all Separate
Returns of the ALC Group as it determines to be mandatory or advisable and for all taxable periods.

                    (b) ALC shall prepare and provide to EHI all pro forma federal and state income Tax
Returns and other information related to members of the ALC
Group required to complete any Joint Return, at least 30 days
prior to the Due Date of the relevant Joint Return.

7

 

                SECTION 3.03. Tax Accounting Practices. Any Tax Return for any Pre-Separation Period
shall be prepared in accordance with practices, accounting methods, elections, conventions and Tax
positions used with respect to the Tax Return in question for periods prior to the Separation
(“Past Practices”) and, in the case of any item the treatment of which is not addressed by
Past Practices, in accordance with generally accepted Tax accounting practices. Notwithstanding
the foregoing, for any Tax Return described in the preceding sentence, (i) a party will not be
required to follow Past Practices with either the written consent of the other party (not to be
unreasonably withheld) or a “should” level opinion from a Tax Advisor that the proposed method of
reporting is correct and (ii) all Tax Returns shall be filed in a manner consistent with the
Intended Tax Treatment, unless otherwise required by a Final Determination.

                SECTION 3.04. Right to Review Tax Returns. Upon request, each party shall make
available to the other party the portion of Pre-Separation Period Tax Returns that relates to the
ALC Group that the first party is responsible for preparing under this Article III.

                SECTION 3.05. Payment of Tax. The party responsible under this Agreement for
preparing a Tax Return shall remit, or cause to be remitted, in a timely manner to the appropriate
Taxing Authority all Tax due in connection with that Tax Return. For the avoidance of doubt, this
Section shall not in any way affect any right of indemnification under this Agreement.

                SECTION 3.06. Adjustment Requests. (a) Except with the written consent of EHI (not
to be unreasonably withheld), ALC will not file any Adjustment Request with respect to any Joint
Return, unless required by law. Except with the written consent of ALC (not to be unreasonably
withheld), EHI will not file any Adjustment Request with respect to any Joint Return, unless
required by law.

                    (b) Any Adjustment Request made under this Section 3.06 shall be prepared by the
party that filed the Tax Return to be adjusted. The party preparing the Adjustment
Request shall be reimbursed for its internal preparation and filing costs at a rate of $30 per
hour, without regard to the identity of the persons assigned to prepare the Adjustment
Request, and, if the parties engage a third party to prepare the Adjustment Request, the
parties shall bear the out-of-pocket costs of engaging such third party in proportion to
the benefit that each would receive from the proposed adjustment.

8

 

                    (c) ALC agrees to waive its right to carry back any loss incurred by any member of
the ALC Group during any taxable period following Separation, to the extent permitted by
law.

ARTICLE IV

Intended Tax Treatment

                SECTION 4.01. Intended Tax Treatment. Each of Extendicare, EHI and ALC agree to
treat the Transactions for all U.S. Tax purposes as set out in
Exhibit C (the “Intended Tax
Treatment”), unless otherwise required by a Final Determination.

ARTICLE V

Tax Contests; Indemnification; Cooperation

                SECTION 5.01. Notice. As soon as practicable and, in any event, within 30 days after a party (the “Indemnitee”)
becomes aware of the existence of a Tax Contest that may give rise to an indemnification claim
under this Agreement by it against the other party (the “Indemnifying Party”), the
Indemnitee shall notify
the Indemnifying Party of the Tax Contest, and thereafter shall promptly forward or make available
to the Indemnifying Party copies of notices and communications with a Taxing Authority relating to
such Tax Contest.

                SECTION 5.02. Control of Tax Contests. (a) EHI shall have sole control over any Tax
Contest relating to any Extendicare Separate Returns and, except as
provided in the following sentence, Tax Contest relating to any
Joint Returns. In the case of any Tax Contest relating to
any Joint Returns for which ALC determines, in its reasonable discretion, that it could be liable
for an amount greater than $10,000 under Article II as a result of such Tax Contest, ALC may elect
to jointly control, and to have the right to equally participate in, at its own expense, all
material activities and decisions (including strategic decisions) with respect to, any such Tax
Contest and EHI shall not settle any such Tax Contest without ALC’s prior written consent.

                    (b) ALC shall have sole control over any Tax Contest relating to any ALC Separate
Returns; provided, however, that ALC shall notify EHI in writing of, and
consult EHI in good faith about all material activities and decisions (including strategic
decisions) with respect to, any such Tax Contest.

                    (c) Where the parties mutually engage a Tax Advisor to assist them in handling,
settling or contesting a Tax Contest, any out-of-pocket costs shall be borne ratably by
the parties based on their ultimate liability under this Agreement for the Tax to which
the Tax Contest relates. In the absence of such mutual agreement, each party shall be
liable for its own out-of-pocket costs incurred in handling, settling or contesting a Tax
Contest.

9

 

                SECTION 5.03. Indemnification Payments. (a) Subject to paragraph (b), if an
Indemnitee has a claim for an indemnification payment from an Indemnifying Party under this
Agreement, the Indemnitee shall promptly provide to the Indemnifying Party notice of such claim,
including a description of such claim and a detailed calculation of the amount of the
indemnification payment that is claimed; provided, however, that no delay on the
part of the Indemnitee in notifying the Indemnifying Party shall relieve the Indemnifying Party
from any obligation hereunder unless (and then solely to the extent) the Indemnifying Party is
actually and materially prejudiced thereby. The Indemnifying Party shall make the claimed payment
to the Indemnitee within 45 days after receiving such notice, unless the Indemnifying Party
reasonably disputes the amount of, or its liability for, such payment.

                    (b) No party shall be entitled to receive an indemnification payment under this
Agreement more than 5 days before the Tax (including estimated Tax, if any) is required to
be paid.

                    (c) Payments made prior to the Separation by any member of the ALC Group to any
member of the Extendicare Group with respect to a particular Tax shall be credited against
any indemnity obligation of the ALC Group in respect of such Tax
under this Agreement. This Section 5.03(c) shall be applied in a manner consistent with the illustrative examples included in Exhibit D.

                SECTION 5.04. Interest on Late Payments. Interest shall accrue with respect to any
indemnification payment (including any disputed payment that is ultimately required to be made),
not made when due (as determined under Section 5.03 and without regard to whether such payment is
disputed), at the Applicable Rate compounded quarterly.

                SECTION 5.05. Treatment of Payments. Indemnification payments under this Agreement
shall not be adjusted to take into account the Tax treatment of
the relevant Indemnitee with respect to such payments or the indemnified items. Any payments made
to one party by another party pursuant to this Agreement or the Separation Agreement shall be
treated for all Tax purposes as a distribution by, or capital contribution to, ALC, as the case may
be, made immediately prior to the ALC Purchase, except to the extent otherwise required by a Final
Determination.

                SECTION 5.06.  Expenses. Except as otherwise provided herein, each party shall bear
its own expenses incurred in connection with preparation of Tax Returns, Tax Contests and other
matters under this Agreement.

                SECTION 5.07. Cooperation. Each member of the Extendicare Group and the ALC Group
shall cooperate fully with all reasonable requests from the other party in connection with the
preparation and filing of Tax Returns and Adjustment Requests, Tax Contests and other matters
covered by this Agreement.

10

 

                    (a) Such cooperation shall include:

          (i) the retention until the expiration of the applicable statute of
limitations, and the provision upon request, of Tax Returns, books, records
(including information regarding ownership and tax basis of property),
documentation and other information relating to the Tax Returns, including
accompanying schedules, related workpapers, and documents relating to rulings or
other determinations by Taxing Authorities;

          (ii) the execution of any document that may be necessary or reasonably
helpful in connection with any Tax Contest, the filing of a Tax Return or
Adjustment Request by a member of the Extendicare Group or the ALC Group, obtaining
a tax opinion, a private letter ruling or an advance tax ruling, or other matters
covered by this Agreement, including certification (provided in such form as may be
required by applicable law or reasonably requested and made to the best of a
party’s knowledge) of the accuracy and completeness of the information it has
supplied;

          (iii) the use of the parties’ commercially reasonable efforts to obtain any
documentation that may be necessary or reasonably helpful in connection with any of
the foregoing;

          (iv) the use of Extendicare Group’s commercially reasonable efforts to assist
the ALC Group in obtaining a waiver from Section 1504(a)(3) of the Code, including
the making of any representations and the obtaining of any private letter ruling;
provided, however, that ALC shall retain sole control over, and be
liable, and indemnify and hold the Extendicare Group harmless, for all costs
incurred in connection with, the obtaining of such waiver;

          (v) the use of the parties’ commercially reasonable efforts to make the
applicable party’s current or former directors, officers, employees, agents and
facilities available on a reasonable and mutually convenient basis in connection
with the foregoing matters; and

          (vi) the reasonable use
by ALC of Extendicare Group’s systems, including any
relevant hardware and software, for the preparation and filing of Returns for all
tax periods (or portion thereof) ending on or before the Separation Date.

                    (b) If a party fails ,without good cause, to comply with any of its obligations set forth
in this Section 5.07 upon reasonable request and notice by the

11

 

other party, and such failure results in the imposition of additional Tax, the nonperforming
party shall be liable in full and shall indemnify and hold the other party harmless for such
additional Tax.

                SECTION 5.08. Confidentiality. Any information or documents provided under this
Agreement shall be kept confidential by the recipient-party, except as may otherwise be necessary
in connection with the filing of Tax Returns or with any Tax Contest. In addition, if Extendicare,
EHI or ALC determines that providing such information could be commercially detrimental, violate
any law or agreement or waive any privilege, the parties shall use commercially reasonable efforts
to permit compliance with the obligations under this Agreement in a manner that avoids any such
harm or consequence.

                SECTION 5.09. Retention of Tax Records. If either Extendicare, EHI or ALC intends to
dispose of documentation with respect to any Pre-Separation Period, including books, records, Tax
Returns and all supporting schedules and information relating thereto (after the expiration of the
applicable statute of limitations), of any member of the other Group, they shall provide written
notice to the other party describing the documentation to be disposed of 60 days prior to taking
such action. The other party may arrange to take delivery of the documentation described in the
notice at its own expense during the succeeding 60 day period.

ARTICLE VI

Resolution of Disputes

                SECTION 6.01. Tax Disputes. The parties will endeavor to resolve in an amicable
manner all disputes arising in connection with this Agreement. The parties shall negotiate in good
faith to resolve any Tax Dispute for not less than 45 days. Upon written notice of either party
after 45 days, the matter will be referred to a Tax Advisor acceptable to both parties. The Tax
Advisor may, in its discretion, obtain the services of any third-party necessary to assist it in
resolving the dispute. The Tax Advisor shall provide written notice to the Companies of its
resolution of the dispute as soon as practicable, but in any event no later than 45 days after its
acceptance of the matter for resolution. Any such resolution by the Tax Advisor will be binding on
the parties and the parties shall take, or cause to be taken, any action necessary to implement the
resolution. All fees and expenses of the Tax Advisor shall be shared equally by EHI, on the one
hand, and ALC, on the other hand. If, having determined that the dispute must be referred to a Tax
Advisor, after 45 days the parties are unable to find a Tax Advisor willing to adjudicate the
dispute in question and whom the parties in good faith find acceptable, then the dispute will be
resolved pursuant to the procedures described in Section 7.11 of the Separation Agreement,
provided, however, that only an arbitrator that qualifies as a Tax Advisor shall be
selected.

12

 

ARTICLE VII

Miscellaneous and General

                SECTION 7.01. Modification or Amendment. The parties may modify or amend this
Agreement only by written agreement executed and delivered by duly authorized officers of the
respective parties.

                SECTION 7.02. Termination. In the event the Arrangement Agreement is terminated
pursuant to its terms prior to the Separation, this Agreement shall automatically and
simultaneously terminate without the approval of ALC, EHI, Extendicare or the shareholders of
Extendicare. In the event of such termination, no party shall have any liability to any other
party pursuant to this Agreement, except under Section 5.08. It is understood and agreed that the
consummation of the Transactions shall not constitute a termination of this Agreement.

                SECTION 7.03. Notices. All notices, requests, claims, demands and other
communications under this Agreement shall be in writing and shall be deemed given upon receipt by
the parties at the following fax numbers (or at such other address for a party as shall be
specified by like notice) of a fax followed by delivery at the following addresses of such notice
by overnight courier of an international reputation:

If to Extendicare or EHI, to:

Extendicare
Inc.

3000 Steeles Avenue East

Markham, Ontario

Canada

L3R 9W2

Attention:

Fax:

with a copy to:

Extendicare Health Services, Inc.

111 West Michigan Street

Milwaukee, Wisconsin 53203

Attention: Tax Department

Fax:

13

 

If to ALC, to:

Assisted Living Concepts, Inc.

111 West Michigan Street

Milwaukee, Wisconsin 53203

Attention:

Fax:

with a copy to:

Attention:

Fax:

                SECTION 7.04. Interpretation. When a reference is made in this Agreement to a
Section, Exhibit, Schedule or party, such reference shall be to a Section of, or an Exhibit,
Schedule or party to, this Agreement unless otherwise indicated. The headings contained in this
Agreement are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. Whenever the words “include”, “includes” or “including” are used
in this Agreement, they shall be deemed to be followed by the words “without limitation”. The
words “hereof”, “herein”, “hereby” and “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement. The words “date hereof” shall refer to the date of this Agreement. The term “or” is
not exclusive. The word “extent” in the phrase “to the extent” shall mean the degree to which a
subject or other thing extends, and such phrase shall not mean simply “if”. The definitions
contained in this Agreement are applicable to the singular as well as the plural forms of such
terms. Any agreement or instrument defined or referred to herein or in any agreement or instrument
that is referred to herein means such agreement or instrument as from time to time amended,
modified or supplemented. References to a person are also to its permitted successors and assigns.
IF, AND TO THE EXTENT, THE PROVISIONS OF THIS AGREEMENT CONFLICT WITH THE SEPARATION AGREEMENT,
ARRANGEMENT AGREEMENT OR OTHER AGREEMENT BY AND BETWEEN THE PARTIES TO THIS AGREEMENT, THE
PROVISIONS OF THIS AGREEMENT SHALL CONTROL.

                SECTION 7.05. Severability. If any term or other provision of this Agreement is
invalid, illegal or incapable of being enforced by any applicable law, or public policy, all other
conditions and provisions of this Agreement shall nevertheless remain in full force and effect so
long as the economic or legal substance of the matters contemplated hereby is not affected in any
manner materially adverse to any party. Upon such determination that any term or other provision
is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good
faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable
manner to the end that objectives contemplated hereby are fulfilled to the extent possible.

14

 

                SECTION 7.06. Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement and shall become
effective when one or more counterparts have been signed by each of the parties and delivered to
the other parties. Each party need not sign the same counterpart.

                SECTION 7.07. Entire Agreement; Third-Party Beneficiaries. This Agreement, taken
together with the other Transaction Agreements, constitutes the entire agreement, and supersedes
all prior agreements and understandings, both written and oral, among the parties with respect to
the Transactions. Nothing contained in this Agreement is intended to confer upon any person other
than the parties hereto and their respective successors and permitted assigns, any benefit, right
or remedy under or by reason of this Agreement.

                SECTION 7.08. Certain Obligations. Whenever this Agreement requires any of the
Affiliates of any party to take any action, this Agreement will be deemed to include an undertaking
on the part of such party to cause such Affiliates to take such action.

                SECTION 7.09. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York, regardless of the laws that might otherwise
govern under applicable principles of conflicts of laws.

                SECTION
7.10. Assignment. Subject to Section 4.07 of the
Separation Agreement, neither this Agreement nor any of the rights, interests or
obligations under this Agreement shall be assigned, in whole or in part, by operation of law or
otherwise by any of the parties without the prior written consent of the other parties. Any
purported assignment without such consent shall be void. Subject to the preceding sentences, this
Agreement will be binding upon, inure to the benefit of, and be enforceable by, the parties and
their respective successors and assigns.

                SECTION 7.11. Survival. Except with respect to Sections 5.07, 5.08 and 5.09, which
shall remain in effect without limitation as to time, the provisions in this Agreement shall be
unconditional and absolute and shall remain in effect until the expiration of the statute of
limitations for all taxable periods that end before or include December 31 of the calendar year in
which the Separation occurs and, if later, until the resolution of all disputes under this
Agreement that arose during such periods.

                SECTION
7.12. Extension; Waiver. The parties may (a) extend the
time for the performance of any of the obligations or other acts of
the other parties or (b) waive compliance with any of the
agreements or conditions contained in this Agreement. Any agreement
on the part of a party to any such extension or waiver shall be valid
only if set forth in an instrument in writing signed on behalf of
such party. The failure of any party to this Agreement to assert any
of its rights under this Agreement or otherwise shall not constitute
a waiver of such rights.

15

 

                IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective
officers as the date first set forth above.

	 	 	 	 	 
	 	EXTENDICARE INC., 

 	 
	 	  by  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	EXTENDICARE HOLDINGS, INC.,

 	 
	 	  by  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ASSISTED LIVING CONCEPTS, INC.,

 	 
	 	  by  	 	 
	 	 	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

16

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