Document:

EX-4.1

 Exhibit 4.1 

Execution Version 

AMENDED AND RESTATED 

REGISTRATION RIGHTS AGREEMENT 

BY AND AMONG 
 ALPHATEC
HOLDINGS, INC. 
 AND 

EACH PURCHASER IDENTIFIED ON THE SIGNATURE PAGES HERETO 

APRIL 16, 2018 

 TABLE OF CONTENTS 

 

							
			
	 1.
	 	 Definitions
	 	 	1	 
			
	 2.
	 	 Shelf Registration
	 	 	8	 
			
	 3.
	 	 Underwritten Offering of Initiating Holders
	 	 	11	 
			
	 4.
	 	 Registration and Other Procedures
	 	 	13	 
			
	 5.
	 	 Registration Expenses
	 	 	19	 
			
	 6.
	 	 Black-out Period
	 	 	20	 
			
	 7.
	 	 Indemnification
	 	 	21	 
			
	 (a)
	 	 Indemnification by the Company
	 	 	21	 
			
	 (b)
	 	 Indemnification by Holders
	 	 	22	 
			
	 (c)
	 	 Conduct of Indemnification Proceedings
	 	 	23	 
			
	 (d)
	 	 Contribution
	 	 	24	 
			
	 8.
	 	 Miscellaneous
	 	 	24	 
			
	 (a)
	 	 Remedies
	 	 	24	 
			
	 (b)
	 	 No Piggyback on Registrations; Prohibition on Filing Other Registration Statements
	 	 	25	 
			
	 (c)
	 	 [Reserved]
	 	 	25	 
			
	 (d)
	 	 Discontinued Disposition
	 	 	25	 
			
	 (e)
	 	 Piggy-Back Registrations
	 	 	25	 
			
	 (f)
	 	 Amendments and Waivers
	 	 	27	 
			
	 (g)
	 	 Notices
	 	 	27	 
			
	 (h)
	 	 Successors and Assigns
	 	 	28	 
			
	 (i)
	 	 No Inconsistent Agreements
	 	 	28	 
			
	 (j)
	 	 Execution and Counterparts
	 	 	28	 
			
	 (k)
	 	 Governing Law
	 	 	28	 
			
	 (l)
	 	 Cumulative Remedies
	 	 	29	 
			
	 (m)
	 	 Severability
	 	 	29	 
			
	 (n)
	 	 Headings
	 	 	29	 
			
	 (o)
	 	 Independent Nature of Holders’ Obligations and Rights
	 	 	29	 

 AMENDED AND RESTATED 

REGISTRATION RIGHTS AGREEMENT 

This Amended and Restated Registration Rights Agreement (this “Agreement”) is made and entered into as of April 16,
2018, between Alphatec Holdings, Inc., a Delaware corporation (the “Company”), and each of the several persons signatory hereto (each such purchaser, a “Purchaser” and, collectively, the
“Purchasers”). 
 RECITALS 

A.    The parties hereto entered into a Registration Rights Agreement, dated as of March 8, 2018 (the
“Original Agreement”). 
 B.    This Agreement amends and restates in accordance with Section 8(f)
of the Original Agreement in one document certain changes to the Original Agreement with respect to the resetting of the Filing Date at April 16, 2018, and the addition of the Warrant Holder Warrant Shares (as defined herein) to the Registrable
Securities (as defined herein). 
 C.    This Agreement is made pursuant to the Securities Purchase Agreement, dated as
of March 8, 2018, among the Company and the other parties thereto (the “Purchase Agreement”), the Agreement and Plan of Merger, dated as of March 6, 2018 (the “Merger Agreement”), among the Company, Safari
Merger Sub, Inc., SafeOp Surgical, Inc. (“Target”) and the other parties thereto, and the Warrant Exercise Agreement, dated as of March 8, 2018, between the Company and Armistice Capital Master Fund, Ltd. (the “Warrant
Holder”). 
 AGREEMENT 

The Company and each Purchaser hereby agree as follows: 

1.    Definitions. 

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

“Action” means any action, suit, inquiry, notice of violation, Proceeding or investigation pending or, to the knowledge of the
Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign).

 “Advice” shall have the meaning set forth in Section 8(d). 

  
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 “Affiliate” means any Person that, directly or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act. 

“Agreement” shall have the meaning set forth in the preamble. 

“Certificate of Designation” means the Certificate of Designation of the Company’s Series B Convertible Preferred Stock
to be filed prior to the Closing by the Company with the Secretary of State of the State of Delaware, in the form of Exhibit A attached to the Purchase Agreement. 

“Closing” shall have the meaning set forth in the Purchase Agreement. 

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

“Company” shall have the meaning set forth in the preamble. 

“Common Stock” means the common stock of the Company, par value $0.0001 per share, and any other class of securities into
which such securities may hereafter be reclassified or changed. 
 “Conversion Shares” shall have the meaning ascribed to
such term in the Certificate of Designation. 
 “Effectiveness Date” means, with respect to the Initial Registration
Statement required to be filed hereunder, the 60th calendar day following March 8, 2018 (or, in the event of a “full review” by the Commission, the 90th calendar day following March 8, 2018) and with respect to any additional
Registration Statements which may be required pursuant to Section 2(b) or Section 4(c), the 75th calendar day following the date on which an additional Registration Statement is required to be
filed hereunder (or, in the event of a “full review” by the Commission, the 110th calendar day following the date such additional Registration Statement is required to be filed hereunder); provided, however, that in the event
the Company is notified by the Commission that one or more of the above Registration Statements will not be reviewed or is no longer subject to further review and comment, the Effectiveness Date as to such Registration Statement shall be the second
Trading Day following the date on which the Company is so notified if such date precedes the dates otherwise required above; provided, further, however, if such Effectiveness Date falls on a day that is not a Trading Day, then
the Effectiveness Date shall be the next succeeding Trading Day. 

  
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 “Effectiveness Period” shall have the meaning set forth in
Section 2(a). 
 “Event” shall have the meaning set forth in
Section 2(d)(v). 
 “Event Date” shall have the meaning set forth in
Section 2(d)(v). 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder. 
 “Filing Date” means, with respect to the Initial Registration Statement
required hereunder, April 16, 2018 and, with respect to any additional Registration Statements which may be required pursuant to Section 2(b) or Section 4(c), the earliest practical date on
which the Company is permitted by SEC Guidance to file such additional Registration Statement related to the Registrable Securities; provided, however, that if the Filing Date falls on a day that is not a Trading Day, then the Filing
Date shall be extended to the next succeeding Trading Day. 
 “FINRA” means the Financial Industry Regulatory Authority.

 “Holder” or “Holders” means the holder or holders, as the case may be, from time to time of Registrable
Securities, including any assignee of rights hereunder in accordance with the terms hereof. 
 “Holder Underwritten
Offering” shall have the meaning set forth in Section 3(e). 
 “Indemnified Party” shall
have the meaning set forth in Section 7(c). 
 “Indemnifying Party” shall have the meaning set
forth in Section 7(c). 
 “Initial Registration Statement” means the initial Registration
Statement filed or to be filed pursuant to this Agreement. 
 “Initiating Holders” shall mean and include (i) the Lead
Investor or (ii) any Holder or Holders (other than the Lead Investor) of more than 50% of the then Registrable Securities (not including the Lead Investor’s Registrable Securities); provided that such Holder or Holders (other than
the Lead Investor) then own at least One Million (1,000,000) Registrable Securities. 
 “Lead Investor” shall mean L-5 Healthcare Partners, LLC, a Delaware limited liability company, and any assignee, in whole or in part, of its rights as a Lead Investor hereunder in accordance with the terms hereof. 

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

  
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 “Merger Agreement” shall have the meaning set forth in the Recitals. 

“Merger Closing Shares” shall mean the shares of Common Stock of the Company valued in the aggregate at $8,666,667 pursuant to
the valuation terms of the Merger Agreement, and issued to those Purchasers who are to receive such shares at the closing of the Merger Agreement. 

“Merger Warrant Shares” shall mean the shares of Common Stock underlying those certain warrants to purchase Common Stock in
the aggregate principal amount of $3,000,000, to be issued to those Purchasers who are to receive such warrants at the closing of the Merger Agreement. 

“Milestone Shares” shall mean those shares of Common Stock which may be issued upon satisfaction of certain milestone
achievements by the Company and Target, to those Purchasers who are to receive such Milestone Shares pursuant to the terms of the Merger Agreement. 

“Note Conversion Shares” shall mean the shares of Common Stock underlying those certain convertible promissory notes in the
aggregate principal amount of $3,000,000 (the “Merger Notes”), to be issued to those Purchasers who are to receive such convertible promissory notes at the closing of the Merger Agreement. 

“Original Agreement” shall have the meaning set forth in the Recitals. 

“Participating Holders” shall have the meaning set forth in Section 3(b). 

“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture,
limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 

“Piggy-Back Registration Statement” shall have the meaning set forth in Section 8(e). 

“Preferred Stock” means up to 45,200 shares of the Company’s Series B Convertible Preferred Stock issued under the
Purchase Agreement having the rights, preferences and privileges set forth in the Certificate of Designation. 

“Proceeding” means an Action, claim, suit, investigation or proceeding (including, without limitation, an informal
investigation or partial proceeding, such as a deposition), whether commenced or threatened. 

  
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 “Prospectus” means the prospectus included in a Registration Statement
(including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated by the Commission pursuant to the Securities
Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus,
including pre- and post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus. 

“Purchase Agreement” shall have the meaning set forth in the Recitals. 

“Purchaser(s)” shall have the meaning set forth in the preamble. 

“Registrable Securities” means, as of any date of determination, (a) all shares of Common Stock issued or issuable upon
conversion of the Preferred Stock (as if on such date all shares of Preferred Stock are converted in full without regard to any conversion limitations in the Certificate of Designation), (b) all Warrant Shares then issued and issuable upon exercise
of the Warrants (as if on such date the Warrants are exercised in full without regard to any exercise limitations therein), (c) all Merger Closing Shares, (d) all Note Conversion Shares, (e) all Merger Warrant Shares (as if on such date
the Merger Warrants are exercised in full without regard to any exercise limitations therein), (f) all Milestone Shares, (g) all Warrant Holder Warrant Shares (as if on such date the Warrant Holder Warrants are exercised in full without regard
to any exercise limitations therein), (h) any securities that may be issued or distributed or be issuable or distributable in respect of, or in substitution for, the foregoing upon any stock split, dividend or other distribution, recapitalization or
similar event with respect to any of the foregoing, and (i) any other shares of Common Stock then owned by any Purchaser provided that, with respect to any Purchaser other than the Lead Investor, such Purchaser is at the time of registration an
Affiliate of the Company; provided, however, that any such Registrable Securities shall cease to be Registrable Securities (and the Company shall not be required to maintain the effectiveness of any, or file another, Registration
Statement hereunder with respect thereto) for so long as (x) a Registration Statement with respect to the sale of such Registrable Securities is declared effective by the Commission under the Securities Act and such Registrable Securities have
been disposed of by the Holder in accordance with such effective Registration Statement, (y) such Registrable Securities have been previously sold in accordance with Rule 144 and new certificates for them not bearing a legend restricting
transfer shall have been delivered by the Company, or (z), with respect to any Purchaser other than the 

  
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Lead Investor, such securities become eligible for resale without volume or manner-of-sale restrictions and without
current public information pursuant to Rule 144 as set forth in a written opinion letter to such effect, addressed, delivered and acceptable to the Transfer Agent and the affected Holders (assuming that such securities and any securities issuable
upon exercise, conversion or exchange of which, or as a dividend upon which, such securities were issued or are issuable, are not, at the time of sale, and have not been during the preceding three months, an Affiliate of the Company, and all
Warrants are exercised by “cashless exercise” as provided in Section 2(c) of each of the Warrants), as reasonably determined by the Company, upon the advice of counsel to the Company. 

“Registration Statement” means any registration statement required to be filed hereunder pursuant to
Section 2(a) and any additional registration statements contemplated by Section 2(b) or Section 4(c), including, in each case, the Prospectus, amendments and supplements
to any such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in any
such registration statement. 
 “Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule. 

“Rule 415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or
interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule. 

“Rule 424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or
interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule. 

“SEC Guidance” means (i) any publicly-available written or oral guidance of the Commission staff, or any comments,
requirements or requests of the Commission staff and (ii) the Securities Act. 
 “Securities” means the Preferred Stock
and the Warrants. 
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder. 

  
 6 

 “Selling Stockholder Questionnaire” shall have the meaning set forth in
Section 4(a). 
 “Special Registration” shall have the meaning set forth in
Section 3(e). 
 “Stockholder Approval” shall have the meaning set forth in the Purchase
Agreement. 
 “Subscription Amount” means, as to each Purchaser, the aggregate amount to be paid for Preferred Stock and
Warrants purchased under the Purchase Agreement. 
 “Subsidiary” means any subsidiary of the Company as set forth on
Schedule 3.1(a) to the Purchase Agreement and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after March 8, 2018. 

“Target” shall have the meaning set forth in the Recitals. 

“Trading Day” means a day on which the principal Trading Market is open for trading. 

“Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE MKT, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market, and the New York Stock Exchange (or any successors to any of the foregoing). 

“Transaction Documents” shall have the meaning set forth in the Purchase Agreement. 

“Transfer Agent” means Computershare, Inc., the current transfer agent of the Company, with a mailing address of 480
Washington Avenue, Jersey City, New Jersey 07310, and any successor transfer agent of the Company. 
 “Underwritten
Offering” means a registration in which securities of the Company are sold to an underwriter or underwriters on a firm commitment basis for reoffering to the public. 

“Warrant Holder” shall have the meaning set forth in the Recitals. 

“Warrant Holder Warrant Shares” means the shares of Common Stock issuable upon exercise of the Warrant Holder Warrants. 

  
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 “Warrant Holder Warrants” means, those certain warrants granted to the Warrant
Holder to purchase up to 1,800,000 shares of Common Stock, exercisable at $3.50 per share. 
 “Warrant Shares” means the
shares of Common Stock issuable upon exercise of the Warrants. 
 “Warrants” means, collectively, the Common Stock purchase
warrants delivered to the Purchasers at the Closing in accordance with Section 2.3(a) of the Purchase Agreement, which Warrants shall be exercisable immediately upon Stockholder Approval and have a term of exercise equal to five years from the
date of such Stockholder Approval, in the form of Exhibit D attached to the Purchase Agreement. 
 2.    Shelf
Registration. 
 (a)    On or prior to each Filing Date, the Company shall prepare and file with the Commission a
Registration Statement covering the resale of all of the Registrable Securities that are not then registered on an effective Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415. Each Registration Statement
filed hereunder shall be on Form S-3 (except if the Company is not then eligible to register for resale the Registrable Securities on Form S-3, in which case such
registration shall be on another appropriate form in accordance herewith, subject to the provisions of Section 2(e)); provided, however, that no Holder shall be required to be named as an “underwriter” without such
Holder’s express prior written consent. If pursuant to SEC Guidance, such alternative appropriate form requires Holder to be named as an “underwriter,” and Holder chooses not to give consent to be so named, the Company’s
obligations under this subsection register on another appropriate form shall be waived. Subject to the terms of this Agreement, the Company shall use its best efforts to cause a Registration Statement filed under this Agreement (including, without
limitation, under Section 4(c)) to be declared effective under the Securities Act as promptly as reasonably practicable after the filing thereof, but in any event no later than the applicable Effectiveness Date, and shall
use its best efforts to keep such Registration Statement continuously effective under the Securities Act until the date that all Registrable Securities shall cease to be Registrable Securities as provided herein (the “Effectiveness
Period”). The Company shall telephonically request effectiveness of a Registration Statement as of 5:00 p.m. Eastern Time on a Trading Day. The Company shall immediately notify the Holders via facsimile or by
e-mail of the effectiveness of a Registration Statement on the same Trading Day that the Company telephonically confirms effectiveness with the Commission, which shall be the date requested for effectiveness
of such Registration Statement. The Company shall, by 9:30 a.m. Eastern Time on the Trading Day after the effective date of such Registration Statement, file a final Prospectus with the Commission as required by Rule 424. Failure to so notify the
Holder within one (1) Trading Day of such 

  
 8 

 
notification of effectiveness or failure to file a final Prospectus as foresaid shall be deemed an Event under Section 2(d)(iv). 

(b)    Notwithstanding the registration obligations set forth in Section 2(a), if all of the
Registrable Securities cannot be registered for resale as a secondary offering on a single Registration Statement, the Company agrees to promptly inform each of the Holders thereof and use its best efforts (i) to file additional Registration
Statements as may be available pursuant to SEC Guidance successively trying to register on each such Registration Statement the maximum number of remaining Registrable Securities permitted to be registered pursuant to SEC Guidance for resale, until
all of the Registrable Securities have been registered for resale, on Form S-3 or such other form available to register for resale the Registrable Securities as a secondary offering, subject to the provisions
of Section 2(e) with respect to filing on Form S-3 or other appropriate form, and subject to the provisions of Section 2(d)(iv) with respect to the payment of liquidated damages,
and (ii) to have each such additional Registration Statement declared effective by the Commission as soon as practicable; provided, however, that prior to and following the filing of any such additional Registration Statements,
the Company shall be obligated to use best efforts to advocate with the Commission for the registration of all of the Registrable Securities in accordance with the SEC Guidance. 

(c)    Subject to the payment of liquidated damages pursuant to Section 2(d)(iv), if,
notwithstanding the Company’s compliance with the provisions set forth in Section 2(b), the Commission or any SEC Guidance sets forth a limitation on the number of Registrable Securities permitted to be registered on a particular
Registration Statement as a secondary offering, unless otherwise directed to the Company in writing by a Holder as to its Registrable Securities, the number of Registrable Securities to be registered on such Registration Statement will be reduced as
follows: 
 (i)    first, the Company shall reduce or eliminate any securities to be included other than Registrable
Securities; and 
 (ii)    second, the Company shall reduce Registrable Securities represented (applied, in the case
that some Registrable Securities may be registered, to the Holders on a pro rata basis based on the total number of unregistered Registrable Securities held by such Holders). 

In the event of a cutback hereunder, the Company shall give the Holder at least five (5) Trading Days prior written notice along with the calculations as
to such Holder’s allotment. 
 (d)     If: 

(i)    the Initial Registration Statement is not filed on or prior to its Filing Date or if the Company files the Initial
Registration Statement without affording the Holders the opportunity to review and comment on the same as required by Section 4(a); or 

  
 9 

 (ii)    the Company fails to file with the Commission a request for
acceleration of a Registration Statement in accordance with Rule 461 promulgated by the Commission pursuant to the Securities Act, within two (2) Trading Days of the date that the Company is notified (orally or in writing, whichever is earlier)
by the Commission that such Registration Statement will not be “reviewed” or will not be subject to further review; or 

(iii)    prior to the effective date of a Registration Statement, the Company fails to file a pre-effective amendment and otherwise respond in writing to comments made by the Commission in respect of such Registration Statement promptly (but in any event within ten (10) Trading Days) after the receipt
of comments by or notice from the Commission that such amendment is required in order for such Registration Statement to be declared effective; or 

(iv)    a Registration Statement registering for resale all of the Registrable Securities is not declared effective by
the Commission by the Effectiveness Date of the Initial Registration Statement (provided, however, that if all Registrable Securities cannot be included in the Initial Registration Statement under conditions contemplated in Section 2(c), the
liquidated damages provided for in this Section 2(d) shall not begin to accrue until the Effectiveness Date of any additional Registration Statement required to be filed hereunder, including pursuant to Section 2(b) or Section 4(c));
or 
 (v)    after the effective date of a Registration Statement, such Registration Statement ceases for any reason
(other than due to the inaccuracy of any information regarding the Holders) to remain continuously effective as to all Registrable Securities included in such Registration Statement, or the Holders are otherwise not permitted to utilize the
Prospectus therein to resell such Registrable Securities, for more than ten (10) consecutive calendar days or more than an aggregate of twenty (20) calendar days (which need not be consecutive calendar days) during any 12-month period (any such failure or breach set forth in clauses (i)-(v) being referred to as an “Event”, and for purposes of clauses (i) and (iv), the date on which such Event occurs, and for
purpose of clause (ii) the date on which such five (5) Trading Day period is exceeded, and for purpose of clause (iii) the date which such ten (10) calendar day period is exceeded, and for purpose of clause (v) the date on
which such tenth (10th) or twentieth (20th) calendar day period, as applicable, is exceeded being referred to as “Event Date”), then, 
 in
addition to any other rights the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event Date (if the applicable Event shall not have been cured by such date) until the
applicable Event is cured, the Company shall pay to each Holder an amount in cash, as partial liquidated damages and not as a penalty, equal to the product of 1.5% multiplied by the aggregate Subscription Amount paid by such Holder pursuant to the
Purchase Agreement with respect to any Securities then held by, or issuable to, such Holder that are Registrable Securities. The parties agree that the maximum 

  
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aggregate liquidated damages payable to a Holder under this Agreement shall be 12% of the aggregate Subscription Amount paid by such Holder pursuant to the Purchase Agreement. If the Company
fails to pay any partial liquidated damages pursuant to this Section 2(d) in full within seven days after the date payable, the Company will pay interest thereon at a rate of 15% per annum (or such lesser maximum amount that is permitted to be
paid by applicable law) to the Holder, accruing daily from the date such partial liquidated damages are due until and through the date such amounts, plus all such interest thereon, are paid in full. The partial liquidated damages pursuant to the
terms hereof shall apply on a daily pro rata basis for any portion of a month prior to the cure of an Event. 

(e)    If Form S-3 is not available for the registration of the resale of
Registrable Securities hereunder, the Company shall (i) register the resale of the Registrable Securities on another appropriate form and (ii) undertake to register the Registrable Securities on Form
S-3 as soon as such form is available, provided that the Company shall maintain the effectiveness of the Registration Statement then in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been declared effective by the Commission. 

(f)    Notwithstanding anything to the contrary contained herein, in no event shall the Company be permitted to name any
Holder or Affiliate of a Holder as any underwriter without the prior written consent of such Holder. 

3.    Underwritten Offering of Initiating Holders. 

(a)    Up to three (3) Underwritten Offerings for the Lead Investor and up to two (2) additional Underwritten
Offerings for any other Initiating Holders of Registrable Securities pursuant to a Registration Statement may be initiated by an Initiating Holder, upon notice to the Company; provided that such Underwritten Offering is for at least Ten
Million Dollars ($10,000,000) of Registrable Securities owned by the Initiating Holder and the Participating Holders (as defined below) in the aggregate. 

(b)    Upon any such request for an Underwritten Offering pursuant to Section 3(a), the Company shall (i) deliver
to each Holder (other than the Initiating Holder) written notice of such contemplated Underwritten Offering and (ii) enter into an underwriting agreement with such underwriters for such offering, such agreement to be reasonably satisfactory in
substance and form to the Company, the Initiating Holder and the underwriters, and to contain such representations and warranties by the Company and such other terms as are generally prevailing in agreements of that type, including indemnities no
less favorable to the recipient thereof than those provided in Section 7. The Initiating Holder shall reasonably cooperate with the Company in the negotiation of such underwriting agreement and shall give consideration to the reasonable
suggestions of the Company regarding the form thereof. The Holders participating in such Underwritten Offering (the “Participating Holders”) shall be parties to such underwriting agreement, which underwriting agreement shall
(x) contain such representations 

  
 11 

 
and warranties by, and the other agreements on the part of, the Company to and for the benefit of such Participating Holders as are customarily made by issuers to selling stockholders in
secondary underwritten public offerings and (y) provide that any or all of the conditions precedent to the obligations of such underwriters under such underwriting agreement also shall be conditions precedent to the obligations of such
Participating Holders. Any such Participating Holder shall not be required to make any representations or warranties to or agreements with the Company or the underwriters in connection with such underwriting agreement other than representations,
warranties or agreements regarding such Participating Holder, such Participating Holder’s title to the Registrable Securities, such Participating Holder’s authority to sell the Registrable Securities, such Participating Holder’s
intended method of distribution, absence of liens with respect to the Registrable Securities, enforceability of the applicable underwriting agreement as against such Participating Holder, receipt of all consents and approvals with respect to the
entry into such underwriting agreement and the sale of such Registrable Securities and any other representations required to be made by such Participating Holder under applicable law, rule or regulation, and the aggregate amount of the liability of
such Participating Holder in connection with such underwriting agreement shall not exceed such Participating Holder’s gross proceeds from such Underwritten Offering (less underwriting discounts and commissions). 

(c)    Subject to the provisions of this Section 3 and Section 8(e), no Person may participate in any
Underwritten Offering hereunder unless such Person (i) agrees to sell such Person’s securities on the basis provided in any underwriting arrangements approved by the Initiating Holder and (ii) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and other documents required under the terms of such underwriting arrangements. 

(d)    In the case of an Underwritten Offering pursuant to this Section 3, the price, underwriting discount and other
financial terms for the Registrable Securities shall be determined by the Initiating Holder. In addition, in the case of any Underwritten Offering, each of the applicable Holders may withdraw their request to participate in the registration pursuant
to this Section 3 or Section 8(e) after being advised of such price, discount and other terms and shall not be required to enter into any agreements or documentation that would require otherwise. 

(e)    With respect to any Underwritten Offering of Registrable Securities by the Initiating Holder (each, a
“Holder Underwritten Offering”), the Company agrees not to effect (other than pursuant to the registration applicable to such Holder Underwritten Offering or pursuant to a Special Registration) any public sale or distribution, or to
file any registration statement (other than pursuant to the registration applicable to such Holder Underwritten Offering or pursuant to a Special Registration) covering any of its equity securities or any securities convertible into or exchangeable
or exercisable for such securities, during the period not to exceed ten (10) days prior and sixty (60) days following the effective date of such offering or such longer period up to ninety (90) days as may be requested by the managing
underwriter 

  
 12 

 
for such Holder Underwritten Offering. “Special Registration” means the registration of (i) equity securities and/or options or other rights in respect thereof solely
registered on Form S-4 or Form S-8 (or successor form) or (i) shares of equity securities and/or options or other rights in respect thereof to be offered to
directors, employees, consultants, customers, lenders or vendors of the Company or its Subsidiaries or in connection with dividend reinvestment plans. 

(f)    If the managing underwriter or underwriters of a proposed Underwritten Offering of the Registrable Securities
pursuant to this Section 3 advise the Initiating Holder and the Company that, in its or their opinion, the number of securities requested to be included in such Underwritten Offering exceeds the number which can be sold in such offering without
being likely to have a significant adverse effect on the price, timing or distribution of the securities offered or the market for the securities offered, the securities to be included in such Underwritten Offering (i) first, shall be
allocated pro rata among the Participating Holders based on the relative number of Registrable Securities then held by each such Participating Holder (provided that any securities thereby allocated to a Participating Holder that exceed such
Participating Holder’s request shall be reallocated among the remaining requesting Participating Holders in like manner), (ii) second, and only if all the securities referred to in clause (i) have been included in such Underwritten
Offering, the number of securities that the Company proposes to include in such Underwritten Offering that, in the opinion of the managing underwriter or underwriters, can be sold without having such adverse effect, and (iii) third, and
only if all the securities referred to in clause (ii) have been included in such Underwritten Offering, any other securities eligible for inclusion in such Underwritten Offering that, in the opinion of the managing underwriter or underwriters,
can be sold without having such adverse effect. 
 4.    Registration and Other Procedures. 

In connection with the Company’s registration and other obligations hereunder (including in connection with any Underwritten Offering),
the Company shall: 
 (a)    Not less than five (5) Trading Days prior to the filing of each Registration Statement
and not less than one (1) Trading Day prior to the filing of any related Prospectus or any amendment or supplement thereto (including any document that would be incorporated or deemed to be incorporated therein by reference, but not including
(x) any Exchange Act filing or (y) any supplement or post-effective amendment to a registration statement that is not related to such Holder’s Registrable Securities), the Company shall (i) furnish to each Holder copies of all
such documents proposed to be filed, which documents (other than those incorporated or deemed to be incorporated by reference) will be subject to the review of such Holders, and (ii) cause its officers and directors, counsel and independent
registered public accountants to respond to such inquiries as shall be necessary, in the reasonable opinion of respective counsel to each Holder, to conduct a reasonable investigation within the meaning of the Securities Act. Notwithstanding the
above, the Company shall not be obligated to provide the Holders advance copies of any 

  
 13 

 
universal shelf registration statement registering securities in addition to those required hereunder, or any Prospectus prepared thereto. The Company shall not file a Registration Statement or
any such Prospectus or any amendments or supplements thereto to which the Lead Investor or the Holders of a majority of the Registrable Securities (other than those Registrable Securities held by the Lead Investor) shall reasonably object in good
faith, provided that, the Company is notified of such objection in writing no later than five (5) Trading Days after the Holders have been so furnished copies of a Registration Statement or one (1) Trading Day after the Holders have been
so furnished copies of any related Prospectus or amendments or supplements thereto. Each Holder agrees to furnish to the Company a completed questionnaire in the form attached to this Agreement as Annex A (a “Selling Stockholder
Questionnaire”) on a date that is not less than four (4) Trading Days prior to the Filing Date or by the end of the fourth (4th) Trading Day following the date on which such Holder receives draft materials in accordance with this
Section 4(a). 
 (b)    (i) Prepare and file with the Commission such amendments, including post-effective
amendments, to a Registration Statement and the Prospectus used in connection therewith (subject to any requirement that a post-effective amendment be declared effective by the Commission) as may be necessary to keep a Registration Statement
continuously effective as to the applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration Statements in order to register for resale under the Securities Act all of the
Registrable Securities subject to any SEC Guidance that sets forth a limitation on the number of Registrable Securities permitted to be registered on a particular Registration Statement, (ii) cause the related Prospectus to be amended or
supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and, as so supplemented or amended, to be filed pursuant to Rule 424, (iii) respond as promptly as reasonably possible to any comments received from the
Commission with respect to a Registration Statement or any amendment thereto and provide as promptly as reasonably possible to the Holders true and complete copies of all correspondence from and to the Commission relating to a Registration Statement
(provided that, the Company shall excise any information contained therein which would constitute material non-public information regarding the Company or any of its Subsidiaries), and (iv) comply in all
material respects with the applicable provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by a Registration Statement during the applicable period in accordance (subject to the
terms of this Agreement) with the intended methods of disposition by the Holders thereof set forth in such Registration Statement as so amended or in such Prospectus as so supplemented. 

(c)    If during the Effectiveness Period, the number of Registrable Securities at any time exceeds 100% of the number of
shares of Common Stock then registered in a Registration Statement, then the Company shall file as soon as reasonably practicable, but in any case prior to the applicable Filing Date, an additional Registration Statement covering the resale by the
Holders of not less than the number of such Registrable Securities. 

  
 14 

 (d)    Notify the Holders of Registrable Securities to be sold (which notice
shall, pursuant to clauses (iii) through (vi) hereof, be accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made) and the underwriters, if any, as promptly as reasonably possible (and, in
the case of (i)(A) below, not less than one (1) Trading Day prior to such filing) and (if requested by any such Person) confirm such notice in writing no later than one (1) Trading Day following the day (i)(A) when a Prospectus or any
Prospectus supplement or post-effective amendment to a Registration Statement is proposed to be filed (but not including (i) any Exchange Act filing or (ii) any supplement or post-effective amendment to a registration statement that is not
related to such Holder’s Registrable Securities), (B) when the Commission notifies the Company whether there will be a “review” of such Registration Statement and whenever the Commission comments in writing on such Registration
Statement, and (C) with respect to a Registration Statement or any post-effective amendment, when the same has become effective, (ii) of any request by the Commission or any other federal or state governmental authority for amendments or
supplements to a Registration Statement or Prospectus or for additional information, (iii) of the issuance by the Commission or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration
Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose, (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from
qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose, (v) of the occurrence of any event or passage of time that makes the financial statements
included in a Registration Statement ineligible for inclusion therein or any statement made in a Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or
that requires any revisions to a Registration Statement, Prospectus or other documents so that, in the case of a Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, (vi) of the occurrence or existence of any pending corporate
development with respect to the Company that the Company believes may be material and that, in the determination of the Company, makes it not in the best interest of the Company to allow continued availability of a Registration Statement or
Prospectus; provided, however, in no event shall any such notice contain any information which would constitute material, non-public information regarding the Company or any of its Subsidiaries
and (vii) if, at any time, the representations and warranties of the Company in any applicable underwriting agreement cease to be true and correct in all material respects. 

(e)    Promptly incorporate in a Prospectus or post-effective amendment to the applicable Registration Statement such
information as the managing underwriter or underwriters, if any, and the Holders agree should be included therein relating to the plan of distribution (including as may be required in connection with any Underwritten Offering) with respect to such
Registrable Securities, and make all required filings of such Prospectus or post-effective 

  
 15 

 
amendment as soon as reasonably practicable after being notified of the matters to be incorporated in such Prospectus or post-effective amendment. 

(f)    Use its best efforts to cause the Registrable Securities covered by the applicable Registration Statement to be
registered with or approved by such other governmental agencies or authorities as may be necessary to enable the seller or sellers thereof or the underwriter or underwriters, if any, to consummate the disposition of such Registrable Securities. 

(g)    Enter into such customary agreements (including underwriting and indemnification agreements) and take all such
other actions as any Holder or the managing underwriter or underwriters, if any, reasonably request in order to expedite or facilitate the registration and disposition of such Registrable Securities. 

(h)    Make such representations and warranties to the Holders and the underwriters or agents, if any, in form, substance
and scope as are customarily made by issuers in secondary underwritten public offerings. 
 (i)    Obtain for delivery
to the Holders and to the underwriter or underwriters, if any, an opinion or opinions from counsel for the Company dated the effective date of the Registration Statement or, in the event of an Underwritten Offering, the date of the closing under the
underwriting agreement, in customary form, scope and substance, which opinions shall be reasonably satisfactory to such Holders or underwriters, as the case may be, and their respective counsel. 

(j)    In the case of an Underwritten Offering, obtain for delivery to the Company and the managing underwriter or
underwriters, with copies to the Participating Holders, a cold comfort letter from the Company’s independent certified public accountants in customary form and covering such matters of the type customarily covered by cold comfort letters as the
managing underwriter or underwriters reasonably request, dated the date of execution of the underwriting agreement and brought down to the closing under the underwriting agreement. 

(k)    Cooperate with each Holder and each underwriter, if any, participating in the disposition of such Registrable
Securities and their respective counsel in connection with any filings required to be made with the FINRA. 

(l)    Provide and cause to be maintained a transfer agent and registrar for all Registrable Securities covered by the
applicable Registration Statement from and after a date not later than the effective date of such Registration Statement. 

(m)    Use its best efforts to cause all Registrable Securities covered by the applicable Registration Statement to be
listed on NASDAQ and each other securities exchange 

  
 16 

 
on which the Common Stock is then listed or quoted and on each inter-dealer quotation system on which any of the Common Stock is then quoted. 

(n)    Make available upon reasonable notice at reasonable times and for reasonable periods for inspection by any Holder,
by any underwriter participating in any disposition to be effected pursuant to the applicable Registration Statement and by any attorney, accountant or other agent retained by such Holder or any such underwriter, all pertinent financial and other
records, pertinent corporate documents and properties of the Company, and cause all of the Company’s executive officers and the independent public accountants who have certified its financial statements to make themselves available to discuss
the business of the Company and to supply all information reasonably requested by any such Person in connection with such Registration Statement as shall be necessary to enable them to exercise their due diligence responsibility; provided
that any such Person gaining access to information regarding the Company pursuant to this Section 4(n) shall agree to hold in strict confidence and shall not make any disclosure or use any information regarding the Company that the Company
determines in good faith to be confidential, and of which determination such Person is notified, unless (i) the release of such information is requested or required by law or by deposition, interrogatory, requests for information or documents
by a governmental entity, subpoena or similar process, (ii) such information is or becomes publicly known other than through a breach of this or any other agreement of which such Person has actual knowledge, (iii) such information is or
becomes available to such Person on a non-confidential basis from a source other than the Company or (iv) such information is independently developed by such Person. 

(o)    In the case of an Underwritten Offering, cause the senior executive officers of the Company to participate in the
customary “road show” presentations that may be reasonably requested by the managing underwriter or underwriters in any such Underwritten Offering and otherwise to facilitate, cooperate with, and participate in each proposed offering
contemplated herein and customary selling efforts related thereto. 
 (p)    Use its reasonable best efforts to avoid
the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the
Registrable Securities for sale in any jurisdiction, at the earliest practicable moment. 
 (q)    Furnish to each
Holder and each underwriter, if any, without charge, as many conformed copies of each such Registration Statement and each amendment thereto, including financial statements and schedules, all documents incorporated or deemed to be incorporated
therein by reference to the extent requested by such Person, and all exhibits to the extent reasonably requested by such Person (including those previously furnished or incorporated by reference) promptly after the filing of such documents with the
Commission; provided that any such item which is available on the EDGAR system (or successor thereto) need not be furnished in physical form. 

  
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 (r)    Subject to the terms of this Agreement, the Company hereby consents to
the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto, except
after the giving of any notice pursuant to Section 4(d). 
 (s)    Prior to any resale of
Registrable Securities by a Holder, use its reasonable efforts to register or qualify, and cooperate with the selling Holders or underwriters, if any, and their respective counsel, in connection with the registration or qualification (or exemption
from the registration or qualification) of such Registrable Securities for the resale under the securities or Blue Sky laws of such jurisdictions within the United States as any Holder or underwriter, if any, or their respective counsel reasonably
requests in writing, to keep each registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition in such jurisdictions of the
Registrable Securities covered by each Registration Statement; provided that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Company to any material tax
in any such jurisdiction where it is not then so subject or file a general consent to service of process in any such jurisdiction. 

(t)    If requested by a Holder, cooperate with such Holder or underwriter, if any, to facilitate the timely preparation
and delivery of certificates representing Registrable Securities to be delivered to a transferee pursuant to a Registration Statement, which certificates shall be free, to the extent permitted by the Purchase Agreement, of all restrictive legends,
and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holder or underwriter, if any, may request. 

(u)    Upon the occurrence of any event contemplated by Section 4(d), as promptly as reasonably
possible under the circumstances taking into account the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the premature disclosure of such event, prepare a supplement or amendment, including a
post-effective amendment, to a Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered,
neither a Registration Statement nor such Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. If the Company notifies the Holders in accordance with clauses (iii) through (vi) of Section 4(d) above to suspend the use of any Prospectus until the requisite changes to such
Prospectus have been made, then the Holders shall suspend use of such Prospectus. The Company will use its reasonable best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable. The Company shall be entitled
to exercise its right under this Section 4(u) to suspend the availability of a Registration Statement and Prospectus, subject to the payment of partial liquidated damages otherwise

  
 18 

 
required pursuant to Section 4(d), for a period not to exceed 60 calendar days (which need not be consecutive days) in any
12-month period. 
 (v)    Otherwise use reasonable best efforts to comply with
all applicable rules and regulations of the Commission under the Securities Act and the Exchange Act, including, without limitation, Rule 172 under the Securities Act, file any final Prospectus, including any supplement or amendment thereof, with
the Commission pursuant to Rule 424 under the Securities Act, promptly inform the Holders in writing if, at any time during the Effectiveness Period, the Company does not satisfy the conditions specified in Rule 172 and, as a result thereof, the
Holders are required to deliver a Prospectus in connection with any disposition of Registrable Securities and take such other actions as may be reasonably necessary to facilitate the registration of the Registrable Securities hereunder. 

(w)    The Company shall use its reasonable best efforts to maintain eligibility for use of Form S-3 (or any successor form thereto) for the registration of the resale of Registrable Securities. 

(x)    The Company may require each selling Holder to furnish to the Company a certified statement as to the number of
shares of Common Stock beneficially owned by such Holder and, if required by the Commission, the natural persons thereof that have voting and dispositive control over the shares. During any periods that the Company is unable to meet its obligations
hereunder with respect to the registration of the Registrable Securities solely because any Holder fails to furnish such information within three Trading Days of the Company’s request, any liquidated damages that are accruing at such time as to
such Holder only shall be tolled and any Event that may otherwise occur solely because of such delay shall be suspended as to such Holder only, until such information is delivered to the Company. 

5.    Registration Expenses. All fees and expenses incident to the performance of, or compliance with, this
Agreement by the Company shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred to in the foregoing sentence shall include, without limitation,
(i) all registration and filing fees (including, without limitation, fees and expenses of the Company’s counsel and independent registered public accountants) (A) with respect to filings made with the Commission, (B) with respect
to filings required to be made with any Trading Market on which the Common Stock is then listed for trading, and (C) in compliance with applicable state securities or Blue Sky laws reasonably agreed to by the Company in writing (including,
without limitation, fees and disbursements of counsel for the Company (and the underwriters in the case of an Underwritten Offering) in connection with Blue Sky qualifications or exemptions of the Registrable Securities), (ii) printing expenses
(including, without limitation, expenses of printing certificates for Registrable Securities), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability
insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other Persons retained by 

  
 19 

 
the Company in connection with the consummation of the transactions contemplated by this Agreement. In addition, the Company shall be responsible for all of its internal expenses incurred in
connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and
the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder. In no event shall the Company be responsible for any broker or similar commissions of any Holder or, except
to the extent provided for in the Transaction Documents, any legal fees or other costs of the Holders; provided, that, in the event of any Underwritten Offering, the Company shall reimburse the Initiating Holder for the reasonable fees and expenses
of one counsel. 
 6.    Black-out Period. In the case of an offering of
Registrable Securities pursuant to an Underwritten Offering, the Company and each of the Holders agree, if requested by the Initiating Holder or the managing underwriter or underwriters with respect to such Underwritten Offering, not to
(a) offer for sale, sell, pledge, or otherwise dispose of (or enter into any transaction or device that is designed to, or could be expected to, result in the disposition by any Person at any time in the future of) any Common Stock (including
Common Stock that may be deemed to be beneficially owned by the undersigned in accordance with the rules and regulations of the Commission and Common Stock that may be issued upon exercise of any options or warrants) or securities convertible into
or exercisable or exchangeable for Common Stock; provided that, for the avoidance of doubt, this Section 6 shall not prohibit any Holder from exercising any Warrants or Merger Warrants, or any other warrants of the Company or converting
any Preferred Stock or any other preferred stock of the Company, or converting any Merger Notes, in each case, in accordance with the terms and subject to the conditions in respect thereof, (b) enter into any swap or other derivatives
transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership of Common Stock, whether any such transaction described in clauses (a) or (b) above is to be settled by delivery of Common Stock or
other securities, in cash or otherwise, (c) make any demand for or exercise any right or cause to be filed a registration statement, including any amendments thereto, with respect to the registration of any Common Stock or securities
convertible into or exercisable or exchangeable for Common Stock or any other securities of the Company or (d) publicly disclose the intention to do any of the foregoing, in each case, during the period beginning seven (7) days before, and
ending ninety (90) days (or such lesser period as may be agreed by the Initiating Holder or, if applicable, the managing underwriter or underwriters) (or such other period as may be reasonably requested by the Initiating Holder or the managing
underwriter or underwriters to accommodate regulatory restrictions on (i) the publication or other distribution of research reports and (ii) analyst recommendations and opinions, including, but not limited to, the restrictions contained in
the FINRA rules or any successor provisions or amendments thereto) after, the date of the underwriting agreement entered into in connection with such Underwritten Offering, to the extent timely notified in writing by the Initiating Holder or the
managing underwriter or underwriters, as the case may be; provided that no Holder shall be subject to any 

  
 20 

 
such black-out period of longer duration than that applicable to the Initiating Holder or any other Holder. Notwithstanding the foregoing, (i) the
Company may effect a public sale or distribution of securities of the type described above and during the periods described above if such sale or distribution is made pursuant to Registrations on Form S-4 or S-8 or any successor form to such Forms or as part of any registration of securities for offering and sale to employees, directors or consultants of the Company and its Subsidiaries pursuant to any employee stock
plan or other employee benefit plan arrangement, and (ii) the distribution of Registrable Securities by any Holder that is a non-natural person to such Holder’s equity holders or any transfer by any
Holder to any Affiliate thereof shall not be prohibited by this Section 6 and shall be expressly permitted in any separate agreement the Holders shall be requested to execute to effectuate the prohibitions in this
Section 6 (provided, in each case with respect to this clause (ii), that such transferee agrees in writing to be bound by the provisions of this Section 6). Without limiting the foregoing, if after
March 8, 2018 the Company grants any Person (other than a Holder) any rights to demand or participate in a registration, the Company agrees that the agreement with respect thereto shall include such Person’s agreement to comply with any black-out period required by this Section 6 as if it were a Holder hereunder. If requested by the managing underwriter or underwriters of any such Underwritten Offering, the Holders shall execute a separate
agreement to the foregoing effect. The Company may impose stop-transfer instructions with respect to the Common Stock (or other securities) subject to the foregoing restriction until the end of the period referenced above. 

7.    Indemnification. 

(a)    Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement,
indemnify and hold harmless each Holder, the officers, directors, members, partners, agents, brokers (including brokers who offer and sell Registrable Securities as principal as a result of a pledge or any failure to perform under a margin call of
Common Stock), investment advisors and employees (and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such title or any other title) of each of them, each Person who controls any such
Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, members, stockholders, partners, agents and employees (and any other Persons with a functionally equivalent role
of a Person holding such titles, notwithstanding a lack of such title or any other title) of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs
(including, without limitation, reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising out of or relating to (1) any untrue or alleged untrue statement of a material fact contained in a
Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated
therein or necessary to make the statements therein (in the case of any Prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading or (2) any violation or alleged

  
 21 

 
violation by the Company of any federal, state or common law or regulation (including the Securities Act, the Exchange Act or any state securities law, or any rule or regulation thereunder), in
connection with the performance of its obligations under this Agreement, except to the extent, but only to the extent, that (i) such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to
the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by
such Holder expressly for use in a Registration Statement, such Prospectus or in any amendment or supplement thereto or (ii) in the case of an occurrence of an event of the type specified in Section 4(d)(iii)-(vi), the
use by such Holder of an outdated, defective or otherwise unavailable Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated, defective or otherwise unavailable for use by such Holder and prior to the
receipt by such Holder of the Advice contemplated in Section 8(d). The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding arising from or in connection with the transactions
contemplated by this Agreement of which the Company is aware. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such indemnified person and shall survive the transfer of any Registrable
Securities by any of the Holders in accordance with Section 8(h). 
 (b)    Indemnification
by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act
and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses, as incurred, to the extent arising out of or
based solely upon: any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus, or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any
omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading
(i) to the extent, but only to the extent, that such untrue statement or omission is contained in any information so furnished in writing by such Holder to the Company expressly for inclusion in such Registration Statement or such Prospectus or
(ii) to the extent, but only to the extent, that such information relates to such Holder’s information provided in the Selling Stockholder Questionnaire or the proposed method of distribution of Registrable Securities and was reviewed and
expressly approved in writing by such Holder expressly for use in a Registration Statement, such Prospectus or in any amendment or supplement thereto. In no event shall the liability of a selling Holder be greater in amount than the dollar amount of
the proceeds (net of all expenses paid by such Holder in connection with any claim relating to this Section 7 and the amount of any damages such Holder has otherwise been required to pay by reason of such untrue statement
or omission) received by such Holder upon the sale of the Registrable Securities included in the Registration Statement giving rise to such indemnification obligation. 

  
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 (c)    Conduct of Indemnification Proceedings. If any Proceeding shall
be brought or asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the “Indemnifying Party”) in
writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense
thereof; provided, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally
determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have materially and adversely prejudiced the Indemnifying Party. 

An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the
fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including any impleaded parties) include both such
Indemnified Party and the Indemnifying Party, and counsel to the Indemnified Party shall reasonably believe that a material conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying
Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense
thereof and the reasonable fees and expenses of no more than one separate counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written
consent, which consent shall not be unreasonably withheld or delayed. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party
is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding. 

Subject to the terms of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to
the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section 7) shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof
to the Indemnifying Party; provided, that, the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such actions for which such Indemnified Party is finally determined by a court
of competent jurisdiction (which determination is not subject to appeal or further review) not to be entitled to indemnification hereunder. 

  
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 (d)    Contribution. If the indemnification under
Section 7(a) or Section 7(b) is unavailable to an Indemnified Party or insufficient to hold an Indemnified Party harmless for any Losses, then each Indemnifying Party shall contribute to the amount
paid or payable by such Indemnified Party, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as
well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any
reasonable attorneys’ or other fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section 7
was available to such party in accordance with its terms. 
 The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 7(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding
paragraph. In no event shall the contribution obligation of a Holder of Registrable Securities be greater in amount than the dollar amount of the proceeds (net of all expenses paid by such Holder in connection with any claim relating to this
Section 7 and the amount of any damages such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission) received by it upon the sale of the Registrable
Securities giving rise to such contribution obligation. 
 The indemnity and contribution agreements contained in this Section are in
addition to any liability that the Indemnifying Parties may have to the Indemnified Parties. 

8.    Miscellaneous. 

(a)    Remedies. In the event of a breach by the Company or by a Holder of any of their respective obligations under
this Agreement, each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, shall be entitled to specific performance of its rights
under this Agreement. Each of the Company and each Holder agrees that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby further agrees
that, in the event of any action for specific performance in respect of such breach, it shall not assert or shall waive the defense that a remedy at law would be adequate. 

  
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 (b)    No Piggyback on Registrations; Prohibition on Filing Other
Registration Statements. Until all Registrable Securities are registered pursuant to a Registration Statement that is declared effective by the Commission, neither the Company nor any of its security holders (other than the Holders in such
capacity pursuant hereto) may include securities of the Company in any Registration Statements other than the Registrable Securities. The Company shall not file any other registration statements, other than on Form
S-4 or Form S-8 (each as promulgated under the Securities Act) or their equivalents, until all Registrable Securities are registered pursuant to a Registration Statement
that is declared effective by the Commission, provided that this Section 8(b) shall not prohibit the Company from filing supplements or amendments to registration statements filed prior to the date of this Agreement. 

(c)    [Reserved] 

(d)    Discontinued Disposition. By its acquisition of Registrable Securities, each Holder agrees that, upon
receipt of a notice from the Company of the occurrence of any event of the kind described in Section 4(d)(iii) through (vi), such Holder will forthwith discontinue disposition of such Registrable
Securities under a Registration Statement until it is advised in writing (the “Advice”) by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed. The Company will use its
reasonable best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable. The Company agrees and acknowledges that any periods during which the Holder is required to discontinue the disposition of the Registrable
Securities hereunder shall be subject to the provisions of Section 2(d)(iv). 

(e)    Piggy-Back Registrations; Underwritten Offerings. 

(i)    If, at any time during the Effectiveness Period, there is not an effective Registration Statement covering all of
the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities
(the “Piggy-Back Registration Statement”), other than on Form S-4 or Form S-8 or one universal shelf registration statement on Form S-3 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities
issuable in connection with the Company’s stock option or other employee benefit plans, then the Company shall deliver to each Holder a written notice of such determination and, if within fifteen (15) days after the date of the delivery of
such notice, any such Holder shall so request in writing, the Company shall include in such registration statement all or any part of such Registrable Securities such Holder requests to be registered; provided, however, that the
Company shall not be required to provide notice or otherwise register any Registrable Securities pursuant to this Section 8(e) that are eligible for resale pursuant to Rule 144 (without volume restrictions or current public
information requirements) promulgated by the Commission pursuant to the Securities Act or that are the 

  
 25 

 
subject of a then effective Registration Statement that is available for resales or other dispositions by such Holder. Notwithstanding the foregoing, (i) if such registration involves an
Underwritten Offering, such Holder must sell such Registrable Securities that such Holder requests to be registered to, if applicable, the underwriter(s) at the same price and subject to the same underwriting discounts and commissions that apply to
the other securities sold in such offering (it being acknowledged that the Company shall be responsible for other expenses as set forth in Section 5) and subject to such Holder entering into customary underwriting
documentation for selling stockholders in an underwritten public offering in accordance with the requirements set forth in Section 3(b), and (ii) if, at any time after giving written notice of its intention to register any Registrable
Securities pursuant to this Section 8(e) and prior to the effective date of the registration statement filed in connection with such registration, the Company shall determine for any reason not to cause such registration
statement to become effective under the Securities Act, the Company shall deliver written notice to such Holder and, thereupon, shall be relieved of its obligation to register any Registrable Securities in connection with such registration (but not
from its obligations to pay any expenses incurred in connection therewith in accordance with Section 5). The inclusion of any Registrable Securities in any Piggy-Back Registration Statement shall not constitute a waiver by any Holder of any
rights such Holder may have by virtue of Section 8(a) being breached by the filing such Piggy-Back Registration Statement. 

(ii)    If the Company determines to proceed with any Underwritten Offering of Common Stock, whether on its own behalf or
on behalf of any other stockholder of the Company, the Company shall so advise the Holders in writing, and each Holder shall have the right to have its Registrable Securities included in such Underwritten Offering and, in such event, the Company
shall make such arrangements with the managing underwriter or underwriters so that such Holders may participate in such Underwritten Offering. If the offering pursuant is to be on any other basis, the Company shall so advise the Holders in writing
and each Holder shall have the right to have its Registrable Securities included in such offering and the Company shall make such arrangements so that such Holder may participate in such offering. 

(iii)    If the managing underwriter or underwriters of any proposed Underwritten Offering of Registrable Securities
informs the Company and the Holders that have requested to participate in such Underwritten Offering in writing that, in its or their opinion, the number of securities which such Holders and any other Persons intend to include in such offering
exceeds the number which can be sold in such offering without being likely to have a significant adverse effect on the price, timing or distribution of the securities offered or the market for the securities offered, then the securities to be
included in such Underwritten Offering shall be (i) first, 100% of the securities that the Company proposes to sell, and (ii) second, and only if all the securities referred to in clause (i) have been included, the number of
Registrable Securities that, in the opinion of such managing underwriter or underwriters, can be sold without having such adverse effect on such offering, with such number to be allocated pro rata among such Holders that have requested to
participate in such offering based on the relative number of Registrable 

  
 26 

 
Securities then held by each such Holder (provided that any securities thereby allocated to a Holder that exceed such Holder’s request shall be reallocated among the remaining requesting
Holders in like manner) and (iii) third, and only if all of the Registrable Securities referred to in clause (ii) have been included in such offering, any other securities eligible for inclusion in such offering that, in the opinion of the
managing underwriter or underwriters, can be sold without having such adverse effect in such offering. 

(f)    Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not
be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the Company and the Holders of 75% or more of the then outstanding Registrable
Securities (for purposes of clarification, this includes any Registrable Securities issuable upon exercise or conversion of any Security); provided that, if any amendment, modification or waiver disproportionately and adversely impacts a
Holder (or group of Holders), the consent of such disproportionately impacted Holder (or group of Holders) shall be required. If a Registration Statement does not register all of the Registrable Securities pursuant to a waiver or amendment done in
compliance with the previous sentence, then the number of Registrable Securities to be registered for each Holder shall be reduced pro rata among all Holders and each Holder shall have the right to designate which of its Registrable Securities shall
be omitted from such Registration Statement. Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of a Holder or some Holders and that does not
directly or indirectly affect the rights of other Holders may be given only by such Holder or Holders of all of the Registrable Securities to which such waiver or consent relates; provided, however, that the provisions of this sentence
may not be amended, modified, or supplemented except in accordance with the provisions of the first sentence of this Section 8(f). No consideration shall be offered or paid to any Person to amend or consent to a waiver or
modification of any provision of this Agreement unless the same consideration also is offered to all of the parties to this Agreement. 

(g)    Notices. Any and all notices or other communications or deliveries required or permitted to be provided
hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile or email attachment at the facsimile number or email address as
set forth on the signature pages attached hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile or email
address at the facsimile number or email address as set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following
the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on
the signature pages attached hereto. 

  
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 (h)    Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors and permitted assigns of each of the parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights or obligations hereunder without the prior written
consent of all of the Holders of the then outstanding Registrable Securities. Each Holder may assign their respective rights hereunder in the manner and to the Persons as permitted under Section 5.7 of the Purchase Agreement. For the avoidance
of doubt, the Lead Investor may assign, in whole or in part, its rights under this Agreement to (i) any transferee of its Registrable Securities upon such transferee executing a joinder to this Agreement as an additional Holder, and
(ii) any of its Affiliates and its and its Affiliates’ respective members, stockholders, owners, equity holders and family members, in each case with respect to this clause (ii), that own any Common Stock. 

(i)    No Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has entered, as of March 8,
2018, nor shall the Company or any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities, that would have the effect of impairing the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof. Except as set forth on Schedule 8(i), neither the Company nor any of its Subsidiaries has previously entered into any agreement granting any registration rights with respect to any of its securities to
any Person that have not been satisfied in full. For the avoidance of doubt, neither the Original Agreement nor any provision thereof shall have any further force or effect. 

(j)    Execution and Counterparts. This Agreement may be executed in two or more counterparts, all of which when
taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In
the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof. 

(k)    Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this
Agreement shall be shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning
the interpretations, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective Affiliates, directors, officers, stockholders, partners, members, employees or agents) shall be
commenced exclusively in the state and federal courts sitting in the State of Delaware. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of Delaware for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert 

  
 28 

 
in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action or Proceeding is improper or is an inconvenient venue for such
Proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of
delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any other manner permitted by law. If any party hereto shall commence an Action or Proceeding to enforce any provisions of the this Agreement, then the prevailing party in such Action or Proceeding shall be
reimbursed by the non-prevailing party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Action or Proceeding. 

(l)    Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies
provided by law. 
 (m)    Severability. If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or
restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid,
illegal, void or unenforceable. 
 (n)    Headings. The headings in this Agreement are for convenience only, do
not constitute a part of the Agreement and shall not be deemed to limit or affect any of the provisions hereof. 

(o)    Independent Nature of Holders’ Obligations and Rights. The obligations of each Holder
hereunder are several and not joint with the obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of the obligations of any other Holder hereunder. Nothing contained herein or in any other
agreement or document delivered at any closing, and no action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other kind of group or entity, or create
a presumption that the Holders are in any way acting in concert or as a group or entity with respect to such obligations or the transactions contemplated by this Agreement or any other matters, and the Company acknowledges that the Holders are not
acting in concert or as a group, and the Company shall not assert any such claim, with respect to such obligations or transactions. Each Holder shall be entitled to protect and enforce its rights, 

  
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including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Holder to be joined as an additional party in any Proceeding for such purpose.
The use of a single agreement with respect to the obligations of the Company contained was solely in the control of the Company, not the action or decision of any Holder, and was done solely for the convenience of the Company and not because it was
required or requested to do so by any Holder. It is expressly understood and agreed that each provision contained in this Agreement is between the Company and a Holder, solely, and not between the Company and the Holders collectively and not between
and among Holders. 
 ******************** 

[SIGNATURE PAGES FOLLOW] 

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

  

			
	COMPANY:
	
	ALPHATEC HOLDINGS, INC.
		
	By:	 	 /s/ JEFFREY BLACK

		 	Name: Jeffrey Black
		 	Title: Chief Financial Officer
	
	ADDRESS FOR NOTICE

  

			
	c/o:	 	  

	Street:	 	  

 
			
	City/State/Zip:	 	  

 
			
	Attention:	 	  

 
			
	Tel:	 	  

	Fax:	 	  

	Email:	 	  

 [SIGNATURE PAGE OF COMPANY – AMENDED AND RESTATED REGISTRATION RIGHTS
AGREEMENT] 
 [SIGNATURE PAGE OF HOLDERS FOLLOWS]rhe-ex10424_808.htm

Exhibit 10.424

GUARANTY AGREEMENT

This GUARANTY AGREEMENT (the “Guaranty”) is made as of February 15, 2018 by REGIONAL HEALTH PROPERTIES, INC., a Georgia corporation, as guarantor (the “RHP Guarantor”), ADCARE PROPERTY HOLDINGS, LLC, a Georgia limited liability company, as guarantor (the “AdCare Guarantor”), and HEARTH & HOME OF OHIO, INC., a Georgia limited liability company, as guarantor (the “HHO Guarantor”; in such capacity as guarantors, the RHP Guarantor, the AdCare Guarantor and the HHO Guarantor are collectively referred to herein as “Guarantors” and each as a “Guarantor”) to and for the benefit of PINECONE REALTY PARTNERS, II, LLC, a Delaware limited liability company (together with its successors and assigns, “Lender”).

W I T N E S S E T H:

A.     Lender has agreed to make loans, advances and other extensions of credit to CP Property Holdings, LLC, a Georgia limited liability company, as borrower (the “CP Borrower”), Northwest Property Holdings, LLC, a Georgia limited liability company, as borrower (the “Northwest Borrower”), Attalla Nursing ADK, LLC, a Georgia limited liability company, as borrower (the “Attalla Borrower”), and AdCare Property Holdings, LLC, a Georgia limited liability company, as borrower (the “AdCare Borrower”; in such capacity as borrowers, the CP Borrower, the Northwest Borrower, the Attalla Borrower and the AdCare Borrower are collectively referred to herein as “Borrowers” and, each as a “Borrower”), pursuant to that certain Loan Agreement, dated of even date herewith, by and among Borrowers, Regional Health Properties, Inc., Guarantors and Lender (the “Loan Agreement”). All capitalized terms used but not otherwise defined in this Guaranty shall have the meanings provided to such terms in the Loan Agreement.

B.     Each Guarantor is a member of, or the owner of a direct or indirect equity interest in, the Borrower whose obligations it will guarantee hereunder and, as such, has and will derive direct pecuniary and other substantial benefits from the making of the loans, advances and other extensions of credit to such Borrower by Lender.

C.     In consideration of such benefits, each Guarantor has agreed to guarantee the payment and performance of such Borrower's Obligations to Lender in accordance with the terms, conditions and limitations set forth herein. 

D.     This Guaranty is given as a condition to such loans, advances and other extensions of credit and is intended to provide security for the payment and performance of the Obligations owing by Borrowers to Lender.

NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, and intending to be legally bound, Guarantor agrees as follows:

1.     Guaranty.

(a)     Guaranty of Obligations of the CP Borrower. The RHP Guarantor and the AdCare Guarantor hereby jointly and severally, absolutely, unconditionally and irrevocably guarantee to Lender (i) the full and prompt payment of the Loan made to the CP Borrower pursuant to the Loan Agreement and all other sums owed by the CP Borrower under the Loan Agreement and the other Loan Documents and (ii) the full and prompt performance by the CP Borrower of its other Obligations under the Loan Agreement and the other Loan Documents, in each case, whether now in existence or hereafter arising, and including any such Obligations incurred after the commencement of any proceeding under any Debtor Relief Law (including any interest accruing under any Loan Document after the filing of a petition with respect to the CP Borrower under any Debtor Relief Law, whether or not allowed or allowable as a claim in the related proceeding), as and when the same shall become due and payable, whether at maturity, by acceleration or otherwise, or otherwise be required to be performed. This is a guaranty of payment and performance and not merely of collection.

 

 

(b)     Guaranty of Obligations of the Northwest Borrower. The RI-IP Guarantor and the AdCare Guarantor hereby jointly and severally, absolutely, unconditionally and irrevocably guarantee to Lender (i) the full and prompt payment of the Loan made to the Northwest Borrower pursuant to the Loan Agreement and all other sums owed by the Northwest Borrower under the Loan Agreement and the other Loan Documents and (ii) the full and prompt performance by the Northwest Borrower of its other Obligations under the Loan Agreement and the other Loan Documents, in each case, whether now in existence or hereafter arising, and including any such Obligations incurred after the commencement of any proceeding under any Debtor Relief Law (including any interest accruing under any Loan Document after the filing of a petition with respect to the Northwest Borrower under any Debtor Relief Law, whether or not allowed or allowable as a claim in the related proceeding), as and when the same shall become due and payable, whether at maturity by acceleration or otherwise, or otherwise be required to be performed. This is a guaranty of payment and performance and not merely of collection.

(c)     Guaranty of Obligations of the Attalla Borrower. The RHP Guarantor and the HHO Guarantor hereby jointly and severally, absolutely, unconditionally and irrevocably guarantee to Lender (i) the full and prompt payment of the Loan made to the Attalla Borrower pursuant to the Loan Agreement and all other sums owed by the Attalla Borrower under the Loan Agreement and the other Loan Documents and (ii) the full and prompt performance by the Attalla Borrower of its other Obligations under the Loan Agreement and the other Loan Documents, in each case, whether now in existence or hereafter arising, and including any such Obligations incurred after the commencement of any proceeding under any Debtor Relief Law (including any interest accruing under any Loan Document after the filing of a petition with respect to the Attalla Borrower under any Debtor Relief Law, whether or not allowed or allowable as a claim in the related proceeding), as and when the same shall become due and payable, whether at maturity, by acceleration or otherwise, or otherwise be required to be performed. This is a guaranty of payment and performance and not merely of collection.

(d)     Guaranty of Obligations of the AdCare Borrower. The RHP Guarantor hereby absolutely, unconditionally and irrevocably guarantees to Lender (i) the full and prompt payment of the Loan made to the AdCare Borrower pursuant to the Loan Agreement and all other sums owed by the AdCare Borrower under the Loan Agreement and the other Loan Documents and (ii) the full and prompt performance by the AdCare Borrower of its other Obligations under the Loan Agreement and the other Loan Documents, in each case, whether now in existence or hereafter arising, and including any such Obligations incurred after the commencement of any proceeding under any Debtor Relief Law (including any interest accruing under any Loan Document after the filing of a petition with respect to the AdCare Borrower under any Debtor Relief Law, whether or not allowed or allowable as a claim in the related proceeding), as and when the same shall become due and payable, whether at maturity, by acceleration or otherwise, or otherwise be required to be performed. This is a guaranty of payment and performance and not merely of collection.

Notwithstanding anything contained herein to the contrary, for so long as that certain Limited Guaranty and Security Agreement dated December 14, 2016 by the RHP Guarantor, as successor in interest to AdCare Health Systems, Inc., in favor of KeyBank National Association (the “KeyBank Guaranty”) shall be in effect, any payment made to Lender by the RHP Guarantor as a result of this Guaranty shall not be made from funds distributed to the RHP Guarantor from Mt. Kenn Property Holdings, LLC, KB HUD Master Tenant 2014, LLC, or Sumter Valley Holdings, LLC, either directly or indirectly, within one hundred eighty (180) days of such distribution; provided, however, that after one hundred eighty (180) following the making of such distribution to the RHP Guarantor, such funds shall be considered released from the KeyBank Guaranty and shall be available as a source of funds for payment of this Guaranty.

3.     Continuing Nature. This Guaranty shall be continuing and shall not be discharged, impaired or affected by (i) the power or authority or lack thereof of any Borrower to incur or contract for any Obligations or to execute, acknowledge or deliver any document, agreement or other instrument evidencing, securing or otherwise executed in connection with any Obligations; (ii) the regularity or irregularity, validity or invalidity, or enforceability or unenforceability of any Obligations; (iii) any defenses or counterclaims whatsoever that any Borrower may or might have to the payment or performance of any Obligations or to the assertion of a default under any document, agreement or other instrument evidencing, securing or otherwise executed in connection with any Obligations including, but not limited to, lack of consideration, statute of frauds, infancy, breach of warranty, lender liability, usury, fraud and statute of limitations; (iv) the existence or non-existence of any Borrower as a legal entity; (v) the transfer by any Borrower of all or any part of the property securing any Obligations; (vi) any right of setoff, 

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counterclaim or defense (other than the payment and performance of any Obligations in full) that a Guarantor may or might have to its respective undertakings, liabilities and obligations under this Guaranty, each and every such defense being hereby waived by each Guarantor; or (vii) the inability of Lender to claim any amount of interest, fees, costs, or charges from any Borrower pursuant to Section 506(b) of the Bankruptcy Code.

4.     Guarantors' Agreement to Pay. Each Guarantor further agrees, as the principal obligor and not as a guarantor or surety only, to pay to Lender, on demand, all costs and expenses (including court costs and reasonable legal expenses) incurred or expended by Lender in connection with the enforcement of this Guaranty against such Guarantor.

5.     Obligations Absolute. The obligations of Guarantors hereunder shall remain in full force and effect without regard to, and shall not be affected or impaired by the following, any of which may be taken without the consent of, or notice to, any Guarantor, nor shall any of the following give Guarantors any recourse or right of action against Lender:

(a)     Any express or implied amendment, modification, renewal, addition, supplement, extension (including extensions beyond the original term) or acceleration of or to any of the Loan Documents;

(b)     Any exercise or non-exercise by Lender of any right or privilege under this Guaranty or any of the Loan Documents;

(c)     Any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other like proceeding relating to any Borrower, any Guarantor or any other guarantor (which term shall include any other party at any time directly or contingently liable for any Borrower's obligations under the Loan Documents) or any affiliate of any Borrower or any action taken with respect to this Guaranty by any trustee or receiver, or by any court, in any such proceeding, whether or not any Guarantor shall have had notice or knowledge of any of the foregoing;

(d)     Any release or discharge of any Borrower from its liability under any of the Loan Documents or any release or discharge of any endorser or guarantor or of any other party at any time directly or contingently liable for the Obligations;

(e)     Any subordination, compromise, release (by operation of law or otherwise), discharge, compound, collection, or liquidation of any Property or other collateral described in any of the Loan Documents or otherwise in any manner, or any substitution with respect thereto;

(f)     Any assignment or other transfer of this Guaranty in whole or in part or of any of the Loan Documents;

(g)     Any acceptance of partial performance of the Obligations;

(h)     Any consent to the transfer of any Property or any portion thereof or any other collateral described in the Loan Documents or otherwise; and

(i)     Any bid or purchase at any sale of any Property or any other collateral described in the Loan Documents or otherwise.

6.     Waivers.

Each Guarantor unconditionally waives any defense to the enforcement of this Guaranty, including:

(a)     All presentments, demands for performance, notices of nonperformance, protests, notices of protest, notices of dishonor, and notices of acceptance of this Guaranty;

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(b)     Any right to require Lender to proceed against any Borrower or any guarantor at any time or to proceed against or exhaust any security held by Lender at any time or to pursue any other remedy whatsoever at any time;

(c)     The defense of any statute of limitations affecting the liability of any

Guarantor hereunder or the liability of any Borrower, or any guarantor under the Loan Documents, or the enforcement hereof, to the extent permitted by law;

(d)     Any defense arising by reason of any invalidity or unenforceability of (or any limitation of liability in) any of the Loan Documents or any disability of any Borrower or any guarantor or of any manner in which Lender has exercised its rights and remedies under the Loan Documents, or by any cessation from any cause whatsoever of the liability of any Borrower or any guarantor;

(e)     Without limitation on clause (d) above, any defense based upon any lack of authority of the officers, directors, partners or agents acting or purporting to act on behalf of any Borrower or any principal of any Borrower or any defect in the formation of any Borrower or any principal of any Borrower;

(f)     Any defense based upon the application by any Borrower of the proceeds of the Loan for purposes other than the purposes represented by such Borrower to Lender or intended or understood by Lender or any Guarantor;

(g)     Any defense based upon an election of remedies by Lender, including any election to proceed by judicial or nonjudicial foreclosure of any security, whether real property or personal property security, or by deed in lieu thereof, and whether or not every aspect of any foreclosure sale is commercially reasonable, or any election of remedies, including remedies relating to real property or personal property security, which destroys or otherwise impairs the subrogation rights of any Guarantor or the rights of any Guarantor to proceed against any Borrower or any guarantor for reimbursement, or both;

(h)     Any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in any other aspects more burdensome than that of a principal;

(i)     Any defense based upon Lender's election, in any proceeding instituted under the Federal Bankruptcy Code, of the application of Section 11ll(b)(2) of the Federal Bankruptcy Code or any successor statute;

(j)     Any defense based upon any borrowing or any grant of a security interest under Section 364 of the Federal Bankruptcy Code;

(k)     Any duty of Lender to advise any Guarantor of any information known to Lender regarding the financial condition of any Borrower and all other circumstances affecting any Borrower's ability to perform its obligations to Lender, it being agreed that each Guarantor assumes the responsibility for being and keeping informed regarding such condition or any such circumstances; and

(l)     Any right of subrogation, reimbursement, exoneration, contribution or indemnity, or any right to enforce any remedy which Lender now has or may hereafter have against Borrower or any benefit of, or any right to participate in, any security now or hereafter held by Lender.

7.     Subrogation. Each Guarantor understands that the exercise by Lender of certain rights and remedies may affect or eliminate such Guarantor's right of subrogation against any Borrower or any guarantor and that such Guarantor may therefore incur partially or totally nonreimbursable liability hereunder. Nevertheless, each Guarantor hereby authorizes and empowers Lender, its successors, endorsees and assigns, to exercise in its or their sole discretion, any rights and remedies, or any combination thereof, which may then be available, it being the purpose and intent of each Guarantor that the obligations hereunder shall be absolute, continuing, independent and unconditional under any and all circumstances. Notwithstanding any other provision of this Guaranty to the 

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contrary, until all Obligations have been repaid and the Mortgages have been released or reconveyed, each Guarantor hereby waives and releases, to the fullest extent permitted by law, any claim or other rights which such Guarantor may now have or hereafter acquire against any Borrower or any other guarantor of all or any of the obligations of such Guarantor hereunder that arise from the existence or performance of such Guarantor's obligations under this Guaranty or any of the other Loan Documents, including any right of subrogation, reimbursement, exoneration, contribution or indemnification, any right to participate in any claim or remedy of Lender against any Borrower or any collateral which Lender now has or hereafter acquires, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, by any payment made hereunder or otherwise, including the right to take or receive from any Borrower, directly or indirectly, in cash or other property or by setoff or in any other manner, payment or security on account of such claim or other rights. 

8.     Additional Waivers. No Guarantor shall be released or discharged, either in whole or in part, by Lender's failure or delay to (i) perfect or continue the perfection of any lien or security interest in any collateral which secures the obligations of any Borrower, any Guarantor or any other guarantor, or (ii) protect the property covered by such lien or security interest.

9.     Subordination. Without limitation on the waivers and releases contained herein:

(a)     Each Guarantor subordinates all present and future indebtedness owing by any Borrower to such Guarantor to the obligations at any time owing by such Borrower to Lender under the Loan Documents. Each Guarantor assigns all such indebtedness to Lender as security for this Guaranty.

(b)     Each Guarantor agrees to make no claim on such indebtedness until all obligations of any Borrower under the Loan Documents have been fully discharged.

(c)     Each Guarantor further agrees not to assign all or any part of such indebtedness without the prior written consent of Lender, which consent may be granted or withheld by Lender in its sole and absolute discretion. If Lender so requests, (i) all instruments evidencing such indebtedness shall be duly endorsed and delivered to Lender, (ii) all security for such indebtedness shall be duly assigned and delivered to Lender, (iii) such indebtedness shall be enforced, collected and held by such Guarantor as trustee for Lender and shall be paid over to Lender on account of the Loan but without reducing or affecting in any manner the liability of such Guarantor under the other provisions of this Guaranty, and (iv) such Guarantor shall execute, file and record such documents and instruments and take such other action as Lender deems necessary or appropriate to perfect, preserve and enforce Lender's rights in and to such indebtedness and any security therefor. If any Guarantor fails to take any such action, Lender, as attorney in fact for such Guarantor, is hereby authorized to do so in the name of such Guarantor. The foregoing power of attorney is coupled with an interest and cannot be revoked.

10.     Proceedings on Default. Upon the failure of any Borrower to promptly and completely make any required payment and performance of its Obligations, Lender may, at its option: (a) proceed directly and at once without notice of such default, against the Guarantor who has guaranteed such Obligations to collect and recover the full amount of the liability hereunder, or any portion thereof, without proceeding against such Borrower or any other person, or endorser, surety or guarantor, or foreclosing upon, selling, or otherwise disposing of, or enforcing, or collecting or applying any property, real or personal, Lender may then have as security for such Obligations, and without enforcing or proceeding under any other guaranty; (b) sell the real and personal property Lender may then have as security for such Obligations under the power of sale contained in any mortgage deed, security agreement or similar instrument pursuant to which such property is held or to which such property is subject or sell such property through judicial foreclosure, as Lender may elect, notice of any such election being expressly waived by such Guarantor, and proceed against such Guarantor for an amount equal to the difference between the net proceeds of such sale to Lender and the amount of such Obligations then due and owing. Nothing herein shall prohibit Lender from exercising its rights against any Guarantor, any other guarantor, endorser, or surety, the security, if any, for the Obligations, and any Borrower simultaneously, jointly and/or severally.

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11.     Representations. Each Guarantor represents and warrants to Lender that: this Guaranty does not violate the provisions of any document, agreement or other instrument by which such Guarantor is bound; no consent or authorization is required as a condition to the execution of this Guaranty; the financial statements and other financial information provided by such Guarantor to Lender are true and correct in all respects and represent assets owned solely by such Guarantor in its name and such assets are not owned, held or subject to a claim, by any other person or entity; such Guarantor is fully aware of the financial condition of Borrower; such Guarantor delivers this Guaranty based solely upon such Guarantor's own independent investigation and understanding of the transaction of which this Guaranty is a part and in no part upon any representation or statement of Lender with respect thereto; such Guarantor is in a position to and hereby assumes full responsibility for obtaining any additional information concerning any Borrower's financial condition or business operations as such Guarantor may  deem material to its obligations hereunder and such Guarantor is not relying upon, nor expecting Lender to furnish such Guarantor with, any information in Lender's possession concerning any Borrower's financial condition or business operations. Each Guarantor acknowledges and agrees that it hereby knowingly accepts the full range of risk encompassed within a contract of “continuing guaranty”, which risk includes, without limitation, the possibility that any Borrower will incur or contract for additional indebtedness for which such Guarantor will be liable hereunder.

12.     Independent, Separate and Unsecured Obligations. The obligations of each Guarantor hereunder shall be absolute and unconditional and are independent of the obligations of any Borrower or of any other person, endorser, surety or guarantor; and, in the event of any default hereunder, a separate action or actions may be brought and prosecuted against any Guarantor whether or not such Guarantor is the alter ego of a Borrower and whether or not a Borrower is joined therein or a separate action or actions are brought against such Borrower. Lender's rights hereunder shall not be exhausted until all of the Obligations have been fully paid and performed. Except as otherwise provided in this Guaranty, this Guaranty is not secured and shall not be deemed to be secured by any security instrument, unless such security instrument expressly recites that it secures this Guaranty.

13.     Bankruptcy.

(a)     All of the Obligations shall, at the option of Lender, forthwith become due and payable if there shall be filed by or against any Borrower or any Guarantor a petition in bankruptcy or for insolvency proceedings or for reorganization, dissolution or liquidation, or for appointment of a receiver or trustee, or if any Borrower or any Guarantor makes an assignment for the benefit of creditors. This Guaranty shall remain in full force and effect, without abatement, until the Obligations have been paid or performed in full and all other obligations guaranteed hereunder have been performed to the satisfaction of Lender, it being expressly understood and agreed to by each Guarantor that this Guaranty shall continue to be effective or shall be reinstated, as the case may be, if at any time payment, in whole or in part, of any of the Obligations is rescinded, invalidated, declared to be fraudulent or preferential, set aside or must otherwise be restored or returned by Lender upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of any Borrower all as though such payment had not been made, to such Borrower or a trustee, receiver or any other party. Each Guarantor understands and agrees that in the event Lender is required to so return all or any portion of a payment received from any Borrower, such Guarantor shall be required to pay Lender for such amount.

(b)     So long as any of the obligations guaranteed hereunder shall be owing to Lender, no Guarantor shall, without the prior written consent of Lender, commence or join with any other party in commencing any bankruptcy, reorganization or insolvency proceedings of or against any Borrower. Each Guarantor understands and acknowledges that by virtue of this Guaranty, it has specifically assumed any and all risks of a bankruptcy or reorganization case or proceeding with respect to any Borrower. As an example and not in any way of limitation, a subsequent modification of the Obligations in any reorganization case concerning any Borrower shall not affect the obligation of a Guarantor to pay and perform such Borrower's Obligations in accordance with its original terms. In any bankruptcy or other proceeding in which the filing of claims is required by law, each Guarantor shall file all claims which such Guarantor may have against such Borrower or relating to any indebtedness of such Borrower to such Guarantor and shall assign to Lender all rights of such Guarantor thereunder. If a Guarantor does not file any such claim, Lender, as attorney in fact for such Guarantor, is hereby authorized to do so in the name of such Guarantor or, in Lender's discretion, to assign the claim to a nominee and to cause proof of claim to be filed in the name of Lender's nominee. The foregoing power of attorney is coupled with an interest and cannot be revoked. Lender or its nominee shall have the right, in its reasonable discretion, to accept or reject any plan proposed in such proceeding and to take any other action which a party filing a claim is entitled to do. In all such cases, whether in 

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administration, bankruptcy or otherwise, the person or persons authorized to pay such claim shall pay to Lender the amount payable on such claim and, to the full extent necessary for that purpose, each Guarantor hereby assigns to Lender all of such Guarantor's rights to any such payments or distributions; provided, however, such Guarantor's obligations hereunder shall not be satisfied except to the extent that Lender receives cash by reason of any such payment or distribution. If Lender receives anything hereunder other than cash, the same shall be held as collateral for amounts due under this Guaranty. Notwithstanding anything to the contrary herein, the liability of each Guarantor hereunder shall be reinstated and revised, and the rights of Lender shall continue, with respect to any amount at any time paid by or on behalf of any Borrower on account of the Loan Documents which Lender shall restore or return by reason of the bankruptcy, insolvency or reorganization of such Borrower or for any other reasons, all as though such amount had not been paid.

14.     Unenforceability of Obligations Against Borrower. If for any reason any Borrower has no legal existence or is under no legal obligation to discharge any of its Obligations, or if any of the Obligations have become irrecoverable from any Borrower by operation of law or for any other reason, this Guaranty shall nevertheless be binding on the Guarantor who has guaranteed such Obligations to the same extent as if such Guarantor at all times had been the principal obligor on all such Obligations. In the event that acceleration of the time for payment of the Obligations is stayed upon the insolvency, bankruptcy or reorganization of any Borrower or for any other reason, all such amounts otherwise subject to acceleration under the terms of any document, agreement or other instrument evidencing, securing or otherwise executed in connection with any of the Obligations shall be immediately due and payable by the Guarantor who guaranteed such Obligations.

15.     Payments. Each Guarantor covenants and agrees that any payments by such Guarantor of the Obligations will be paid strictly in accordance with their respective terms regardless of any law, regulation or order now or hereinafter in effect in any jurisdiction affecting any of such terms of the rights of Lender with respect thereto. Without limiting the generality of the foregoing, each Guarantor's obligations hereunder with respect to any Obligation shall not be discharged by a payment in a currency other than Dollars or at a place other than the place specified or designated by Lender for the payment of the Obligations.

16.     Taxes. All payments hereunder shall be made without any counterclaim of setoff, free and clear of, and without reduction by reason of, any taxes, levies, imposts, charges and withholdings, restrictions or conditions of any nature (other than on the income of Lender) (“Taxes”), which are now or may hereafter be imposed, levied or assessed by any country, political subdivision or taxing authority, all of which will be for the account of and paid by each Guarantor hereunder. If for any reason, any such reduction is made or any Taxes are paid by Lender, each Guarantor will pay to Lender the additional amounts as may be necessary to ensure that it receives the same net amount that it would have received had no reduction been made of Taxes paid.

17.     (Intentionally Omitted)

18.     Further Assurances. Each Guarantor agrees that it will promptly provide to Lender information relating to the financial condition of such Guarantor from time to time as Lender may reasonably request, including but not being limited to, the provision of financial statements and tax returns on an annual basis and all reports that its Subsidiaries are entitled to under their respective leases with Operators.

19.     Successors and Assigns. This Guaranty shall be binding upon Guarantors and their respective heirs, executors, personal representatives, successors and assigns, and shall inure to the benefit of and be enforceable by Lender and its successors, transferees and assigns.

 

20.      Amendments and Waivers. No amendment or waiver of any provision of this Guaranty nor consent to any departure by any Guarantor therefrom shall be effective unless the same shall be in writing and signed by Lender. No failure on the part of Lender to exercise, and no delay in exercising, any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right hereunder preclude any other or further exercise of any other right.

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21.     Notices. All notices, consents, approvals and requests required or permitted under this Guaranty or any other Loan Document (a “Notice”) shall be given in writing and shall be effective for all purposes if either hand delivered with receipt acknowledged, or by a nationally recognized overnight delivery service (such as Federal Express), or by certified or registered United States mail, return receipt requested, postage prepaid, or, with respect to routine or administrative notices (but specifically excluding notices of Default, Events of Default or acceleration of the Obligations) by electronic mail, in each case addressed as follows (or to such other address or Person as a party shall designate from time to time by notice to the other party):

If to Lender:

Pinecone Realty Partners Il, LLC

315 S. Beverly Drive, Suite 404

Beverly Hills, CA 90212

With a copy to:

McGuireW00ds LLP

Gateway Plaza

800 East Canal Street

Richmond, Virginia 23219

Attn: Nancy R. Little, Esq.

If to Guarantors:

 

454 Satellite Boulevard, Suite 100

Suwannee, Georgia 30024

A Notice shall be deemed to have been given: in the case of hand delivery, at the time of delivery; in the case of registered or certified mail, when delivered or the first attempted delivery on a Business Day; in the case of overnight delivery, upon the first attempted delivery on a Business Day; or, in the case of electronic mail, at the time of delivery. 

22.     (Intentionally Omitted).

23.     Amendments and Modifications. The provisions of this Guaranty shall extend and be applicable to all renewals, amendments, extensions and modifications of the Obligations and the documents, agreements and other instruments evidencing, securing or otherwise executed in connection with the Obligations, and all references to the Obligations and such documents, agreements or instruments shall be deemed to include any renewal, extension, amendment or modification thereof.

24.     Assignment. Lender may, upon written notice to Guarantors, assign or otherwise transfer any document, agreement or other instrument held by it evidencing, securing or otherwise executed in connection with the Obligations, or sell participations in any interest therein to any other Person or entity, and such other person or entity shall thereupon become vested, to the extent set forth in the agreement evidencing such assignment, transfer or participation, with all rights in respect thereof granted to Lender herein. Each Guarantor acknowledges that it may not assign any of its rights or delegate any of its duties under this Guaranty.

25.     Governing Law; Venue, etc.

(a)     THIS GUARANTY AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA. TO THE FULLEST EXTENT PERMITTED BY LAW, EACH GUARANTOR HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS GUARANTY AND THE OTHER LOAN DOCUMENTS, AND THIS GUARANTY AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

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(b)     ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR ANY GUARANTOR ARISING OUT OF OR RELATING To THIS GUARANTY SHALL BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN NEW YORK COUNTY, NEW YORK AND EACH GUARANTOR WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND EACH GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT TN ANY SUIT, ACTION OR PROCEEDING.

(c)     Guarantors expressly acknowledge and agree that the provisions of this Section 25 are reasonable and made for the express benefit of Lender.

26.     Trial by Jury. EACH GUARANTOR AND LENDER HEREBY AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY SUCH GUARANTOR AND LENDER, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. EITHER PARTY IS HEREBY AUTHORIZED TO FILE A COPY OF THIS SECTION 26 IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY THE OTHER.

27.     No Oral Modifications or Waivers. This Guaranty shall not be modified nor any of its provisions waived except by a writing signed by the party against whom such modification or waiver is sought to be enforced.

28.     Termination of Agreement. Upon the satisfaction in full of all amounts owing under the Loan Agreement and all other Obligations, this Guaranty shall terminate without further action by Lender; provided, however, that this Guaranty shall remain in full force and effect and continue to be effective should any petition be filed by or against any Guarantor for liquidation or reorganization, should any Guarantor become insolvent or make an assignment for the benefit of any creditor or creditors or should a receiver or trustee be appointed for all or any significant part of any Guarantor's assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Obligations, or any part thereof, is, pursuant to Applicable Laws, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all as though such payment or performance had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned. Upon termination of this Guaranty, Lender will execute and deliver to Guarantors any releases, termination statements or similar instruments of reconveyance as any Guarantor may reasonably request. All such instruments and documents shall be prepared by such Guarantor and filed or recorded by such Guarantor, at such Guarantor's sole expense, and Lender shall not have any duty, obligation or liability with respect thereto.

29.     Severability. Any provision of this Guaranty or of any related instrument or document executed pursuant hereto which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or thereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by Applicable Laws, each Guarantor hereby waives any provision of law which renders any provision hereof or thereof prohibited or unenforceable in any respect.

30.     Headings. The section headings in this Guaranty are included herein for convenience of reference only and shall not constitute a part of this Guaranty for any other purpose.

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31.     Counterparts. This Guaranty may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Guaranty by telecopier, facsimile machine, portable document format (“PDF') or other electronic means shall be as effective as delivery of a manually executed counterpart of this Guaranty. The effectiveness of any such documents and signatures shall, subject to Applicable Laws, have the same force and effect as manually signed originals and shall be binding on Guarantorss and Lender. Lender may also require that any such documents and signatures be confirmed by a manually signed original thereof; provided, however, that the failure to request or deliver the same shall not limit the effectiveness of any facsimile document or signature. No party may raise the use of a telecopier, facsimile machine, PDF or other electronic means, or the fact that any signature was transmitted through the use of a telecopier, facsimile machine, PDF or other electronic means, as a defense to the enforcement of this Guaranty.

[remainder of page intentionally left blank; signature page follows]

 

 

 

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IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the date first set forth above. 

 

	
 
	
GUARANTORS:

	
 
	
 
	
 
	
 

	
 
	
REGIONAL HEALTH PROPERTIES, INC.,

	
 
	
a Georgia corporation

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
/s/ Brent Morrison

	
 
	
Name:
	
 
	
Brent Morrison

	
 
	
Title:
	
 
	
Chief Executive Officer

	
 
	
 
	
 
	
 

	
 
	
ADCARE  PROPERTY  HOLDINGS, LLC,

	
 
	
a Georgia limited liability company

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
/s/ Brent Morrison

	
 
	
Name:
	
 
	
Brent Morrison

	
 
	
Title:
	
 
	
Manager

	
 
	
 
	
 
	
 

	
 
	
HEARTH & HOME OF OHIO, INC.,

	
 
	
a Georgia corporation

	
 
	
 

	
 
	
By:
	
 
	
/s/ Brent Morrison

	
 
	
Name:
	
 
	
Brent Morrison

	
 
	
Title:
	
 
	
President

 

Signature Page - Guaranty

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