Document:

Exhibit

Exhibit 10.26

REGISTRATION RIGHTS AGREEMENT
This REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is dated as of October 5, 2015 and is made by and among WashingtonFirst Bankshares, Inc., a Virginia corporation (the “Company”), and the purchasers parties to the Purchase Agreement (as defined below) (collectively, the “Purchasers”).
This Agreement is made pursuant to those certain Note Purchase Agreements dated October 5, 2015 by and between the Company and each of the Purchasers (collectively, the “Purchase Agreement”), which provide for the sale by the Company to the Purchasers of $25,000,000 aggregate principal amount of the Company’s 6.00% Fixed-to-Floating Subordinated Notes due 2025, which were issued on October 5, 2015 (the “Subordinated Notes”).  In order to induce the Purchasers to enter into the Purchase Agreement and in satisfaction of a condition to the Purchasers’ obligations thereunder, the Company has agreed to provide to the Purchasers and their respective direct and indirect transferees and assigns the registration rights set forth in this Agreement.  The execution and delivery of this Agreement is a condition to the closing under the Purchase Agreement.
In consideration of the foregoing, the parties hereto agree as follows:
1.Definitions.  As used in this Agreement, the following capitalized defined terms shall have the following meanings:
“1933 Act” shall mean the Securities Act of 1933, as amended from time to time, and the rules and regulations of the SEC promulgated thereunder.
“1934 Act” shall mean the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations of the SEC promulgated thereunder.
“Additional Interest” shall have the meaning set forth in Section 2(e) hereof.
“Agreement” shall have the meaning set forth in the preamble to this Agreement. 
“Applicable Procedures” shall mean, with respect to any transfer or exchange of or for beneficial interests in any Subordinated Note represented by a global certificate, the rules and procedures of the Depositary that apply to such transfer or exchange.
“Closing Date” shall mean October 5, 2015.
“Company” shall have the meaning set forth in the preamble to this Agreement and also includes the Company’s successors.
“Depositary” shall mean The Depository Trust Company, or any other depositary appointed by the Company, including any agent thereof; provided, however, that any such depositary must at all times have an address in the Borough of Manhattan, The City of New York.
“Event Date” shall have the meaning set forth in Section 2(e).  

 

“Exchange Offer” shall mean the exchange offer by the Company of Exchange Securities for Registrable Securities pursuant to Section 2(a) hereof.
“Exchange Offer Registration” shall mean a registration under the 1933 Act effected pursuant to Section 2(a) hereof.
“Exchange Offer Registration Statement” shall mean an exchange offer registration statement on Form S-4 (or, if applicable, on another appropriate form) covering the Registrable Securities, and all amendments and supplements to such registration statement, in each case including the Prospectus contained therein, all exhibits thereto and all material incorporated or deemed to be incorporated by reference therein.
“Exchange Securities” shall mean the 6.00% Fixed-to-Floating Subordinated Notes due 2025 issued by the Company under the Indenture containing terms identical to the Subordinated Notes (except that (i) interest thereon shall accrue from the last date to which interest has been paid or duly provided for on the Subordinated Notes or, if no such interest has been paid or duly provided for, from the Interest Accrual Date, (ii) provisions relating to an increase in the stated rate of interest thereon upon the occurrence of a Registration Default shall be eliminated, (iii) the transfer restrictions and legends relating to restrictions on ownership and transfer thereof as a result of the issuance of the Subordinated Notes without registration under the 1933 Act shall be eliminated, (iv) the denominations thereof shall be $1,000 and integral multiples of $1,000 and (v) all of the Exchange Securities will be represented by one or more global Exchange Securities in book-entry form unless exchanged for Exchange Securities in definitive certificated form under the circumstances provided in the Indenture to be offered to Holders of Registrable Securities in exchange for Registrable Securities pursuant to the Exchange Offer).
“FINRA” shall mean the Financial Industry Regulatory Authority, Inc.
“Holders” shall mean (i) the Purchasers, for so long as they own any Registrable Securities, and each of their respective successors, assigns and direct and indirect transferees who become registered owners of Registrable Securities under the Indenture and (ii) each Participating Broker-Dealer that holds Exchange Securities for so long as such Participating Broker-Dealer is required to deliver a prospectus meeting the requirements of the 1933 Act in connection with any resale of such Exchange Securities.
“Indenture” shall mean the indenture, dated as of October 5, 2015, by and between the Company and Wilmington Trust, National Association, as trustee, as the same may be amended or supplemented from time to time in accordance with the terms thereof.
“Interest Accrual Date” means October 5, 2015.
“Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of Registrable Securities outstanding, excluding Exchange Securities referred to in clause (ii) of the definition of “Holders” above; provided that whenever the consent or approval of Holders of a specified percentage of Registrable Securities or Exchange Securities is required hereunder, Registrable Securities and Exchange Securities held by the Company or any of its affiliates (as such 

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term is defined in Rule 405 under the 1933 Act) shall be disregarded in determining whether such consent or approval was given by the Holders of such required percentage.
“Notifying Broker-Dealer” shall have the meaning set forth in Section 3(f).
“Participating Broker-Dealer” shall have the meaning set forth in Section 3(f).
“Person” shall mean an individual, partnership, joint venture, limited liability company, corporation, trust or unincorporated organization, or a government or agency or political subdivision thereof.
“Prospectus” shall mean the prospectus included in a Registration Statement, including any preliminary prospectus, and any such prospectus as amended or supplemented by any prospectus supplement, including a prospectus supplement with respect to the terms of the offering of any portion of the Registrable Securities covered by a Shelf Registration Statement, and by all other amendments and supplements to a prospectus, including post-effective amendments, and in each case including all material incorporated or deemed to be incorporated by reference therein.
“Purchase Agreement” shall have the meaning set forth in the preamble to this Agreement.
“Purchasers” shall have the meaning set forth in the preamble of this Agreement.
“Registrable Securities” shall mean the Subordinated Notes; provided, however, that any Subordinated Notes shall cease to be Registrable Securities when (i) a Registration Statement with respect to such Subordinated Notes shall have been declared effective under the 1933 Act and such Subordinated Notes shall have been disposed of pursuant to such Registration Statement, (ii) such Subordinated Notes shall have been sold to the public pursuant to Rule 144 (or any similar provision then in force, but not Rule 144A) under the 1933 Act, (iii) such Subordinated Notes shall have ceased to be outstanding, or (iv) such Subordinated Notes have been exchanged for Exchange Securities which have been registered pursuant to the Exchange Offer Registration Statement upon consummation of the Exchange Offer unless, in the case of any Exchange Securities referred to in this clause (iv), such Exchange Securities are held by Participating Broker-Dealers or otherwise are not freely tradable without any limitations or restrictions under the 1933 Act (in which case such Exchange Securities will be deemed to be Registrable Securities until such time as such Exchange Securities are sold to a purchaser in whose hands such Exchange Securities are freely tradeable without any limitations or restrictions under the 1933 Act).
“Registration Default” shall have the meaning set forth in Section 2(e).
“Registration Expenses” shall mean any and all expenses incident to performance of or compliance by the Company with this Agreement, including without limitation: (i) all SEC, stock exchange or FINRA registration and filing fees, (ii) all fees and expenses incurred in connection with compliance with state or other securities or blue sky laws and compliance with the rules of FINRA (including reasonable fees and disbursements of counsel for any underwriters or Holders in connection with qualification of any of the Exchange Securities or Registrable Securities under state or other securities or blue sky laws and any filing with and review by FINRA), (iii) all expenses 

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of any Persons in preparing, printing and distributing any Registration Statement, any Prospectus, any amendments or supplements thereto, any underwriting agreements, securities sales agreements, certificates representing the Subordinated Notes or Exchange Securities and other documents relating to the performance of and compliance with this Agreement, (iv) all rating agency fees, (v) all fees and expenses incurred in connection with the listing, if any, of any of the Subordinated Notes or Exchange Securities on any securities exchange or exchanges or on any quotation system, (vi) all fees and disbursements relating to the qualification of the Indenture under applicable securities laws, (vii) the fees and disbursements of counsel for the Company and the fees and expenses of independent public accountants for the Company or for any other Person, business or assets whose financial statements are included in any Registration Statement or Prospectus, including the expenses of any special audits or “cold comfort” letters required by or incident to such performance and compliance, (viii) the fees and expenses of a “qualified independent underwriter” as defined by FINRA Rule 5121 (if required by FINRA rules) and the fees and disbursements of its counsel, (ix) the fees and expenses of the Trustee, any registrar, any depositary, any paying agent, any escrow agent or any custodian, in each case including fees and disbursements of their respective counsel, and (x) in the case of an underwritten offering, any fees and disbursements of the underwriters customarily paid by issuers or sellers of securities and the fees and expenses of any special experts retained by the Company in connection with any Registration Statement but excluding (except as otherwise provided herein) fees of counsel to the underwriters or the Holders and underwriting discounts and commissions and transfer taxes, if any, relating to the sale or disposition of Registrable Securities by a Holder. 
“Registration Statement” shall mean any registration statement of the Company relating to any offering of the Exchange Securities or Registrable Securities pursuant to the provisions of this Agreement (including, without limitation, any Exchange Offer Registration Statement and any Shelf Registration Statement), and all amendments and supplements to any such Registration Statement, including post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and all material incorporated or deemed to be incorporated by reference therein.
“SEC” shall mean the Securities and Exchange Commission or any successor thereto.
“Shelf Registration” shall mean a registration effected pursuant to Section 2(b) hereof.
“Shelf Registration Statement” shall mean a “shelf” registration statement of the Company pursuant to the provisions of Section 2(b) of this Agreement which covers all of the Registrable Securities, as the case may be, on an appropriate form under Rule 415 under the 1933 Act, or any similar rule that may be adopted by the SEC, and all amendments and supplements to such Shelf Registration Statement, including post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and all material incorporated or deemed to be incorporated by reference therein.
“Subordinated Notes” shall have the meaning set forth in the preamble to this Agreement.
“TIA” shall mean the Trust Indenture Act of 1939, as amended from time to time, and the rules and regulations of the SEC promulgated thereunder.

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“Trustee” shall mean the trustee with respect to the Subordinated Notes and the Exchange Securities under the Indenture.
“Underwriters” shall have the meaning set forth in Section 5(a). 
For purposes of this Agreement, (i) all references in this Agreement to any Registration Statement, preliminary prospectus or Prospectus or any amendment or supplement to any of the foregoing shall be deemed to include the copy filed with the SEC pursuant to its Electronic Data Gathering, Analysis and Retrieval system; (ii) all references in this Agreement to financial statements and schedules and other information which is “contained,” “included” or “stated” in any Registration Statement, preliminary prospectus or Prospectus (or other references of like import) shall be deemed to mean and include all such financial statements and schedules and other information which is incorporated or deemed to be incorporated by reference in such Registration Statement, preliminary prospectus or Prospectus, as the case may be; (iii) all references in this Agreement to amendments or supplements to any Registration Statement, preliminary prospectus or Prospectus shall be deemed to mean and include the filing of any document under the 1934 Act which is incorporated or deemed to be incorporated by reference in such Registration Statement, preliminary prospectus or Prospectus, as the case may be; (iv) all references in this Agreement to Rule 144, Rule 144A, Rule 405 or Rule 415 under the 1933 Act, and all references to any sections or subsections thereof or terms defined therein, shall in each case include any successor provisions thereto; and (v) all references in this Agreement to days (but not to business days) shall mean calendar days.
2.    Registration Under the 1933 Act.
(a)    Exchange Offer Registration.  The Company shall (A) file with the SEC on or prior to the 90th day after the Closing Date an Exchange Offer Registration Statement covering the offer by the Company to the Holders to exchange all of the Registrable Securities for a like aggregate principal amount of Exchange Securities, (B) use its reasonable best efforts to cause such Exchange Offer Registration Statement to be declared effective by the SEC no later than the 120th day after the Closing Date, (C) use its reasonable best efforts to cause such Registration Statement to remain effective until the closing of the Exchange Offer and (D) use its reasonable best efforts to consummate the Exchange Offer no later than 45 days after the effective date of the Exchange Offer Registration Statement.  Upon the effectiveness of the Exchange Offer Registration Statement, the Company shall promptly commence the Exchange Offer, it being the objective of such Exchange Offer to enable each Holder eligible and electing to exchange Registrable Securities for Exchange Securities (assuming that such Holder is not an affiliate of the Company within the meaning of Rule 405 under the 1933 Act, acquires the Exchange Securities in the ordinary course of such Holder’s business and has no arrangements or understandings with any Person to participate in the Exchange Offer for the purpose of distributing such Exchange Securities) to trade such Exchange Securities from and after their receipt without any limitations or restrictions under the 1933 Act or under the securities or blue sky laws of the states of the United States.  
In connection with the Exchange Offer, the Company shall: 
(i)    promptly mail to each Holder a copy of the Prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter of transmittal and related documents; 

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(ii)    keep the Exchange Offer open for not less than 20 business days (or longer if required by applicable law) after the date notice thereof is mailed to the Holders (or, to the extent permitted or required by Applicable Procedures, sent electronically) and, during the Exchange Offer, offer to all Holders who are legally eligible to participate in the Exchange Offer the opportunity to exchange their Registrable Securities for Exchange Securities; 
(iii)    use the services of a depositary with an address in the United States, which may be the Trustee or an affiliate of the Trustee, for the Exchange Offer; 
(iv)    permit Holders to withdraw tendered Registrable Securities at any time prior to the close of business, Reston, Virginia time, on the last business day on which the Exchange Offer shall remain open, by sending to the institution specified in the Prospectus or the related letter of transmittal or related documents a telegram, telex, facsimile transmission, letter or other method permitted or required by Applicable Procedures setting forth the name of such Holder, the principal amount of Registrable Securities delivered for exchange, and a statement that such Holder is withdrawing its election to have such Subordinated Notes exchanged; 
(v)    notify each Holder that any Registrable Security not tendered will remain outstanding and continue to accrue interest, but will not retain any rights under this Agreement (except in the case of Participating Broker-Dealers as provided herein); and
(vi)    otherwise comply in all material respects with all applicable laws relating to the Exchange Offer.
The Exchange Securities shall be issued under the Indenture, which shall be qualified under the TIA.  The Indenture shall provide that the Exchange Securities and the Subordinated Notes shall vote and consent together on all matters as a single class and shall constitute a single series of debt securities issued under the Indenture.
As soon as practicable after the close of the Exchange Offer, the Company shall:
(i)    accept for exchange all Registrable Securities duly tendered and not validly withdrawn pursuant to the Exchange Offer in accordance with the terms of the Exchange Offer Registration Statement and the letter of transmittal which is an exhibit thereto;
(ii)    deliver, or cause to be delivered, to the Trustee for cancellation all Registrable Securities so accepted for exchange by the Company; and
(iii)    cause the Trustee promptly to authenticate and deliver Exchange Securities to each Holder of Registrable Securities so accepted for exchange equal in principal amount to the principal amount of the Registrable Securities of such Holder so accepted for exchange.
Interest on each Exchange Security will accrue from the last date on which interest was paid or duly provided for on the Subordinated Notes surrendered in exchange therefor or, if no interest has been paid or duly provided for on such Subordinated Notes, from the Interest Accrual Date.  

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The Exchange Offer shall not be subject to any conditions, other than (i) that the Exchange Offer, or the making of any exchange by a Holder, does not violate any applicable law or any applicable interpretation of the staff of the SEC, (ii) that no action or proceeding shall have been instituted or threatened in any court or by or before any governmental agency with respect to the Exchange Offer which, in the Company’s judgment, would reasonably be expected to impair the ability of the Company to proceed with the Exchange Offer, and (iii) that the Holders tender the Registrable Securities to the Company in accordance with the Exchange Offer.  Each Holder of Registrable Securities (other than Participating Broker-Dealers) who wishes to exchange such Registrable Securities for Exchange Securities in the Exchange Offer will be required to represent that (i) it is not an affiliate (as defined in Rule 405 under the 1933 Act) of the Company, (ii) any Exchange Securities to be received by it will be acquired in the ordinary course of business and (iii) it has no arrangement with any Person to participate in the distribution (within the meaning of the 1933 Act) of the Exchange Securities, and shall be required to make such other representations as may be reasonably necessary under applicable SEC rules, regulations or interpretations to render the use of Form S-4 or another appropriate form under the 1933 Act available.  
Each Holder hereby acknowledges and agrees that any broker-dealer and any such Holder using the Exchange Offer Registration to participate in a distribution of the Exchange Securities (x) could not under SEC policy as in effect on the date of this Agreement rely on the position of the SEC in Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991) and Exxon Capital Holdings Corporation (pub. avail. May 13, 1988), as interpreted in the SEC’s letter to Shearman & Sterling dated July 2, 1993 and similar no-action letters and (y) must comply with the registration and prospectus delivery requirements of the 1933 Act in connection with any secondary resale transaction and must be covered by an effective registration statement containing the selling security holder information required by Items 507 and 508, of Regulation S-K, as applicable, under the 1933 Act if the resales are of Exchange Securities obtained by such Holder in exchange for Subordinated Notes acquired by such Holder directly from the Company or one of its affiliates. Accordingly, each Holder participating in the Exchange Offer Registration shall be required to represent to the Company that, at the time of the consummation of the Exchange Offer Registration:
 
(i)    any Exchange Securities received by such Holder will be acquired in the ordinary course of business;
 
(ii)     such Holder will have no arrangement or understanding with any Person to participate in the distribution of the Subordinated Notes or the Exchange Securities within the meaning of the 1933 Act; 

(iii)     such Holder is not an affiliate of the Company; and 

(iv)     such Holder is not acting on behalf of any Person who could not truthfully make the statements set forth in clauses (i), (ii) and (iii) immediately above.

(b)    Shelf Registration.  (i) If, because of any change in law or applicable interpretations thereof by the staff of the SEC, the Company is not permitted to effect the Exchange Offer as contemplated by Section 2(a) hereof, or (ii) if for any other reason (A) the Exchange Offer Registration Statement is not declared effective within 120 days following the Closing Date or (B) the Exchange Offer is not consummated 

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within 45 days after effectiveness of the Exchange Offer Registration Statement (provided that if the Exchange Offer Registration Statement shall be declared effective after such 120-day period or if the Exchange Offer shall be consummated after such 45-day period, then the Company’s obligations under this clause (ii) arising from the failure of the Exchange Offer Registration Statement to be declared effective within such 120-day period or the failure of the Exchange Offer to be consummated within such 45-day period, respectively, shall terminate), or (iii) if any Holder is not eligible to participate in the Exchange Offer or elects to participate in the Exchange Offer but does not receive Exchange Securities which are freely tradeable without any limitations or restrictions under the 1933 Act, the Company shall, at its cost:
(A)    as promptly as practicable, but no later than (a) the 180th day after the Closing Date or (b) the 60th day after any such filing obligation arises, whichever is later, file with the SEC a Shelf Registration Statement relating to the offer and sale of the Registrable Securities by the Holders from time to time in accordance with the methods of distribution elected by the Majority Holders of such Registrable Securities and set forth in such Shelf Registration Statement;
(B)    use its reasonable best efforts to cause such Shelf Registration Statement to be declared effective by the SEC as promptly as practicable, but in no event later than (a) the 225th day after the Closing Date or (b) the 105th day after an obligation to file with the SEC a Shelf Registration Statement arises, whichever is later.  In the event that the Company is required to file a Shelf Registration Statement pursuant to clause (iii) above, the Company shall file and use its reasonable best efforts to have declared effective by the SEC both an Exchange Offer Registration Statement pursuant to Section 2(a) with respect to all Registrable Securities and a Shelf Registration Statement (which may be a combined Registration Statement with the Exchange Offer Registration Statement) with respect to offers and sales of Registrable Securities held by such Holder described in clause (iii) above;
(C)    use its reasonable best efforts to keep the Shelf Registration Statement continuously effective, supplemented and amended as required, in order to permit the Prospectus forming part thereof to be usable by Holders for a period of two years after the latest date on which any Subordinated Notes are originally issued by the Company (subject to extension pursuant to the last paragraph of Section 3) or, if earlier, when all of the Registrable Securities covered by such Shelf Registration Statement (i) have been sold pursuant to the Shelf Registration Statement in accordance with the intended method of distribution thereunder, or (ii) cease to be Registrable Securities; and
(D)    notwithstanding any other provisions hereof, use its best efforts to ensure that (i) any Shelf Registration Statement and any amendment thereto and any Prospectus forming a part thereof and any supplements thereto comply in all material respects with the 1933 Act, (ii) any Shelf Registration Statement and any amendment thereto does not, when it becomes effective, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading and (iii) any Prospectus forming part of any Shelf Registration Statement and any amendment or supplement to such Prospectus does not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, clauses (ii) and (iii) shall not apply to any statement in or omission from a Shelf Registration Statement or a Prospectus made in reliance upon and conformity with information relating to any Holder, Participating Broker-Dealer or underwriter of Registrable Securities furnished to the Company in writing by such Holder, Participating Broker-Dealer or underwriter, respectively, expressly for use in such Shelf Registration Statement or Prospectus.

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The Company further agrees, if necessary, to supplement or amend the Shelf Registration Statement if reasonably requested by the Majority Holders with respect to information relating to the Holders and otherwise as required by Section 3(b) below, to use its reasonable best efforts to cause any such amendment to become effective and such Shelf Registration Statement to become usable as soon as practicable thereafter and to furnish to the Holders of Registrable Securities copies of any such supplement or amendment promptly after its being used or filed with the SEC.
(c)    Expenses.  The Company shall pay all Registration Expenses in connection with the registration pursuant to Section 2(a) and 2(b) and, in the case of any Shelf Registration Statement, will reimburse the Holders for the reasonable fees and disbursements of one counsel (in addition to any local counsel) designated in writing by the Majority Holders to act as counsel for the Holders of the Registrable Securities in connection therewith.  Each Holder shall pay all fees and disbursements of its counsel other than as set forth in the preceding sentence or in the definition of Registration Expenses and all underwriting discounts and commissions and transfer taxes, if any, relating to the sale or disposition of such Holder’s Registrable Securities pursuant to a Shelf Registration Statement.
(d)    Effective Registration Statement.
(i)    The Company shall be deemed not to have used its reasonable best efforts to cause the Exchange Offer Registration Statement or any Shelf Registration Statement, as the case may be, to become, or to remain, effective during the requisite periods set forth herein if the Company voluntarily takes any action that could reasonably be expected to result in any such Registration Statement not being declared effective or remaining effective or in the Holders of Registrable Securities (including, under the circumstances contemplated by Section 3(f) hereof, Exchange Securities) covered thereby not being able to exchange or offer and sell such Registrable Securities during that period unless (A) such action is required by applicable law or (B) such action is taken by the Company in good faith and for valid business reasons (but not including avoidance of the Company’s obligations hereunder), including the acquisition or divestiture of assets or a material corporate transaction or event so long as the Company promptly complies with the notification requirements of Section 3(k) hereof, if applicable.  Nothing in this paragraph shall prevent the accrual of Additional Interest on any Registrable Securities or Exchange Securities.
(ii)    An Exchange Offer Registration Statement pursuant to Section 2(a) hereof or a Shelf Registration Statement pursuant to Section 2(b) hereof shall not be deemed to have become effective unless it has been declared effective by the SEC; provided, however, that if, after such Registration Statement has been declared effective, the offering of Registrable Securities pursuant to a Registration Statement is interfered with by any stop order, injunction or other order or requirement of the SEC or any other governmental agency or court, such Registration Statement shall be deemed not to have been effective during the period of such interference until the offering of Registrable Securities pursuant to such Registration Statement may legally resume.
(iii)    During any 365-day period, the Company may, by notice as described in Section 3(e), suspend the availability of a Shelf Registration Statement (and, if the Exchange Offer Registration Statement is being used in connection with the resale of Exchange Securities by Participating Broker-Dealers as contemplated by Section 3(f), the Exchange Offer Registration Statement) and the use of the related Prospectus for up to two periods of up to 45 consecutive days each (except for the consecutive 45-day period immediately prior to final maturity of the Subordinated Notes), but no more than an aggregate of 90 days during any 365-day period, upon the happening of any event or 

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the discovery of any fact referred to in Section 3(e)(vi), but subject to compliance by the Company with its obligations under the last paragraph of Section 3.
(e)    Increase in Interest Rate.  In the event that:
(i)    the Exchange Offer Registration Statement is not filed with the SEC on or prior to the 90th day following the Closing Date, or
(ii)    the Exchange Offer Registration Statement is not declared effective by the SEC on or prior to the 120th day following the Closing Date, or
(iii)    the Exchange Offer is not consummated on or prior to the 45th day following the effective date of the Exchange Offer Registration Statement, or
(iv)    if required, a Shelf Registration Statement is not filed with the SEC on or prior to (A) the 180th day following the Closing Date or (B) the 60th day after the obligation to file with the SEC a Shelf Registration Statement arises, whichever is later, or
(v)    if required, a Shelf Registration Statement is not declared effective on or prior to (a) the 225th day following the Closing Date or (b) the 105th day after an obligation to file with the SEC a Shelf Registration Statement arises, whichever is later, or
(vi)    a Shelf Registration Statement is declared effective by the SEC but such Shelf Registration Statement ceases to be effective or such Shelf Registration Statement or the Prospectus included therein ceases to be usable in connection with resales of Registrable Securities for any reason and (A) the aggregate number of days in any consecutive 365-day period for which the Shelf Registration Statement or such Prospectus shall not be effective or usable exceeds 90 days, (B) the Shelf Registration Statement or such Prospectus shall not be effective or usable for more than two periods (regardless of duration) in any consecutive 365-day period or (C) the Shelf Registration Statement or such Prospectus shall not be effective or usable for a period of more than 45 consecutive days, or
(vii)    the Exchange Offer Registration Statement is declared effective by the SEC but, if the Exchange Offer Registration Statement is being used in connection with the resale of Exchange Securities as contemplated by Section 3(f) of this Agreement, the Exchange Offer Registration Statement ceases to be effective or the Exchange Offer Registration Statement or the Prospectus included therein ceases to be usable in connection with resales of Exchange Securities for any reason during the 180-day period referred to in Section 3(f)(B) of this Agreement (as such period may be extended pursuant to the last paragraph of Section 3 of this Agreement) and (A) the aggregate number of days in any consecutive 365-day period for which the Exchange Offer Registration Statement or such Prospectus shall not be effective or usable exceeds 90 days, (B) the Exchange Offer Registration Statement or such Prospectus shall not be effective or usable for more than two periods (regardless of duration) in any consecutive 365-day period or (C) the Exchange Offer Registration Statement or the Prospectus shall not be effective or usable for a period of more than 45 consecutive days,
(each of the events referred to in clauses (i) through (vii) above being hereinafter called a “Registration Default”), the per annum interest rate borne by the Registrable Securities shall be increased (“Additional Interest”) by one-quarter of one percent (0.25%) per annum immediately following such 90-day period in the case of clause (i) above, immediately following such 120-day period in the case of clause (ii) above, immediately following such 45-day period in the case of clause (iii) above, immediately following any such 

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180-day period or 60-day period, whichever ends later, in the case of clause (iv) above, immediately following any such 225-day or 105-day period, as applicable, in the case of clause (v) above, immediately following the 90th day in any consecutive 365-day period, as of the first day of the third period in any consecutive 365-day period or immediately following the 45th consecutive day, whichever occurs first, that a Shelf Registration Statement shall not be effective or a Shelf Registration Statement or the Prospectus included therein shall not be usable as contemplated by clause (vi) above, or immediately following the 90th day in any consecutive 365-day period, as of the first day of the third period in any consecutive 365-day period or immediately following the 45th consecutive day, whichever occurs first, that the Exchange Offer Registration Statement shall not be effective or the Exchange Offer Registration Statement or the Prospectus included therein shall not be usable as contemplated by clause (vii) above, which rate will be increased by an additional one-quarter of one percent (0.25%) per annum immediately following each 90-day period that any Additional Interest continues to accrue under any circumstances; provided that the aggregate increase in such annual interest rate may in no event exceed one-half of one percent (0.50%) per annum.  Upon the filing of the Exchange Offer Registration Statement after the 90-day period described in clause (i) above, the effectiveness of the Exchange Offer Registration Statement after the 120-day period described in clause (ii) above, the consummation of the Exchange Offer after the 45-day period described in clause (iii) above, the filing of the Shelf Registration Statement after the 180-day period or 60-day period day, as the case may be, described in clause (iv) above, the effectiveness of a Shelf Registration Statement after the 225-day period or 105-day period, as applicable, described in clause (v) above, or the Shelf Registration Statement once again being effective or the Shelf Registration Statement and the Prospectus included therein becoming usable in connection with resales of Registrable Securities, as the case may be, in the case of clause (vi) above, or the Exchange Offer Registration Statement once again becoming effective or the Exchange Offer Registration Statement and the Prospectus included therein becoming usable in connection with resales of Exchange Securities, as the case may be, in the case of clause (vii) thereof, the interest rate borne by the Subordinated Notes from the date of such filing, effectiveness, consummation or resumption of effectiveness or usability, as the case may be, shall be reduced to the original interest rate so long as no other Registration Default shall have occurred and shall be continuing at such time and the Company is otherwise in compliance with this paragraph; provided, however, that, if after any such reduction in interest rate, one or more Registration Defaults shall again occur, the interest rate shall again be increased pursuant to the foregoing provisions.  Notwithstanding anything in this Agreement to the contrary, the Company will not be obligated to pay any Additional Interest in the case of a Shelf Registration Statement with respect to any Holder of Registrable Securities who fails to timely provide all information with respect to Holder that is reasonably requested by the Company to enable it to timely comply with its obligations under Section 2(b).
The Company shall notify the Trustee within three business days after each and every date on which an event occurs in respect of which Additional Interest is required to be paid (an “Event Date”). Additional Interest shall be paid by depositing with the Trustee, in trust, for the benefit of the Holders of Registrable Securities, on or before the applicable interest payment date, immediately available funds in sums sufficient to pay the Additional Interest then due.  The Additional Interest due shall be payable on each interest payment date to the record Holder of Registrable Securities entitled to receive the interest payment to be paid on such date as set forth in the Indenture. Each obligation to pay Additional Interest shall be deemed to accrue from and including the day following the applicable Event Date.
Anything herein to the contrary notwithstanding, any Holder who was, at the time the Exchange Offer was pending and consummated, eligible to exchange, and did not validly tender, its Subordinated Notes for Exchange Securities in the Exchange Offer will not be entitled to receive any Additional Interest.  

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(f)    Specific Enforcement.  Without limiting the remedies available to the Holders or any Participating Broker-Dealer, the Company acknowledges that any failure by the Company to comply with its obligations under Sections 2(a) and 2(b) hereof may result in material irreparable injury to the Holders or the Participating Broker-Dealers for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely and that, in the event of any such failure, any Holder and any Participating Broker-Dealer may obtain such relief as may be required to specifically enforce the Company’s obligations under Sections 2(a) and 2(b).
3.    Registration Procedures.  In connection with the obligations of the Company with respect to the Registration Statements pursuant to Sections 2(a) and 2(b) hereof, the Company shall:
(a)    prepare and file with the SEC a Registration Statement or, if required, Registration Statements, within the time periods specified in Section 2, on the appropriate form under the 1933 Act, which form (i) shall be selected by the Company, (ii) shall, in the case of a Shelf Registration Statement, be available for the sale of the Registrable Securities by the selling Holders thereof and (iii) shall comply as to form in all material respects with the requirements of the applicable form and include or incorporate by reference all financial statements required by the SEC to be filed therewith, and use its reasonable best efforts to cause such Registration Statement to become effective and remain effective in accordance with Section 2 hereof;
(b)    prepare and file with the SEC such amendments and post-effective amendments to each Registration Statement as may be necessary under applicable law to keep such Registration Statement effective for the applicable period; cause each Prospectus to be supplemented by any required prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 under the 1933 Act; and comply with the provisions of the 1933 Act and the 1934 Act with respect to the disposition of all Registrable Securities covered by each Registration Statement during the applicable period in accordance with the intended method or methods of distribution by the selling Holders thereof;
(c)    in the case of a Shelf Registration, (i) notify each Holder of Registrable Securities, at least ten business days prior to filing, that a Shelf Registration Statement with respect to the Registrable Securities is being filed and advising such Holders that the distribution of Registrable Securities will be made in accordance with the method elected by the Majority Holders; (ii) furnish to each Holder of Registrable Securities, to counsel for the Holders and to each underwriter of an underwritten offering of Registrable Securities, if any, without charge, as many copies of each Prospectus, including each preliminary Prospectus, and any amendment or supplement thereto and such other documents as such Holder, counsel or underwriter may reasonably request, including financial statements and schedules and, if such Holder, counsel or underwriter so requests, all exhibits (including those incorporated by reference) in order to facilitate the public sale or other disposition of the Registrable Securities; and (iii) subject to the penultimate paragraph of this Section 3, the Company hereby consents to the use of the Prospectus, including each preliminary Prospectus, or any amendment or supplement thereto by each of the Holders and underwriters of Registrable Securities in connection with the offering and sale of the Registrable Securities covered by any Prospectus or any amendment or supplement thereto;
(d)    use its reasonable best efforts to register or qualify the Registrable Securities under all applicable state securities or “blue sky” laws of such jurisdictions as any Holder of Registrable Securities covered by a Registration Statement and each underwriter of an underwritten offering of Registrable Securities shall reasonably request, to cooperate with the Holders and the underwriters of any Registrable Securities in connection with any filings required to be made with FINRA, to keep each such registration or qualification effective during the period such Registration Statement is required to be effective and do any and all other acts and things which may be reasonably necessary or advisable to enable such Holder to 

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consummate the disposition in each such jurisdiction of such Registrable Securities owned by such Holder; provided, however, that the Company shall not be required to (i) qualify as a foreign corporation or as a dealer in securities in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(d) or (ii) take any action which would subject it to general service of process or taxation in any such jurisdiction if it is not then so subject;
(e)    in the case of a Shelf Registration, notify each Holder of Registrable Securities and counsel for such Holders promptly and, if requested by such Holder or counsel, confirm such advice in writing promptly (i) when a Registration Statement has become effective and when any post-effective amendments and supplements thereto become effective, (ii) of any request by the SEC or any state securities authority for post-effective amendments or supplements to a Registration Statement or Prospectus or for additional information after a Registration Statement has become effective, (iii) of the issuance by the SEC or any state securities authority of any stop order suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose, (iv) if between the effective date of a Registration Statement and the closing of any sale of Registrable Securities covered thereby the representations and warranties of the Company contained in any underwriting agreement, securities sales agreement or other similar agreement, if any, relating to such offering cease to be true and correct, (v) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, (vi) of the happening of any event or the discovery of any facts during the period a Shelf Registration Statement is effective which is contemplated in Section 2(d)(i) or which makes any statement made in such Shelf Registration Statement or the related Prospectus untrue in any material respect or which constitutes an omission to state a material fact in such Shelf Registration Statement or Prospectus and (vii) of any determination by the Company that a post-effective amendment to a Registration Statement would be appropriate.  Without limitation to any other provisions of this Agreement, the Company agrees that this Section 3(e) shall also be applicable, mutatis mutandis, with respect to the Exchange Offer Registration Statement and the Prospectus included therein to the extent that such Prospectus is being used by Participating Broker-Dealers as contemplated by Section 3(f);
(f)    (%3) in the case of an Exchange Offer, (i) include in the Exchange Offer Registration Statement (1) a “Plan of Distribution” section covering the use of the Prospectus included in the Exchange Offer Registration Statement by broker-dealers who have exchanged their Registrable Securities for Exchange Securities for the resale of such Exchange Securities and (2) a statement to the effect that any such broker-dealers who wish to use the related Prospectus in connection with the resale of Exchange Securities acquired as a result of market-making or other trading activities will be required to notify the Company to that effect, together with instructions for giving such notice (which instructions shall include a provision for giving such notice by checking a box or making another appropriate notation on the related letter of transmittal) (each such broker-dealer who gives notice to the Company as aforesaid being hereinafter called a “Notifying Broker-Dealer”), (ii) furnish to each Notifying Broker-Dealer who desires to participate in the Exchange Offer, without charge, as many copies of each Prospectus included in the Exchange Offer Registration Statement, including any preliminary prospectus, and any amendment or supplement thereto, as such broker-dealer may reasonably request, (iii) include in the Exchange Offer Registration Statement a statement that any broker-dealer who holds Registrable Securities acquired for its own account as a result of market-making activities or other trading activities (a “Participating Broker-Dealer”), and who receives Exchange Securities for Registrable Securities pursuant to the Exchange Offer, may be a statutory underwriter and must deliver a prospectus meeting the requirements of the 1933 Act in connection with any resale of such Exchange Securities, (iv) subject to the penultimate paragraph of this Section 3, the Company hereby consents to the use of the Prospectus forming part of the Exchange Offer Registration Statement or any amendment or supplement thereto by any Notifying Broker-Dealer in connection with the sale or transfer 

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of Exchange Securities, and (v) include in the transmittal letter or similar documentation to be executed by an exchange offeree in order to participate in the Exchange Offer the following provision:
If the undersigned is not a broker-dealer, the undersigned represents that it is not engaged in, and does not intend to engage in, a distribution of Exchange Securities.  If the undersigned is a broker-dealer that will receive Exchange Securities for its own account in exchange for Registrable Securities, it represents that the Registrable Securities to be exchanged for Exchange Securities were acquired by it as a result of market-making activities or other trading activities and acknowledges that it will deliver a prospectus meeting the requirements of the 1933 Act in connection with any resale of such Exchange Securities pursuant to the Exchange Offer; however, by so acknowledging and by delivering a prospectus, the undersigned will not be deemed to admit that it is an “underwriter” within the meaning of the 1933 Act;
(A)    to the extent any Notifying Broker-Dealer participates in the Exchange Offer, (i) the Company shall use its reasonable best efforts to maintain the effectiveness of the Exchange Offer Registration Statement for a period of 180 days (subject to extension pursuant to the last paragraph of this Section 3) following the last date on which exchanges are accepted pursuant to the Exchange Offer, and (ii) the Company will comply, insofar as relates to the Exchange Offer Registration Statement, the Prospectus included therein and the offering and sale of Exchange Securities pursuant thereto, with its obligations under Section 2(b)(D), the last paragraph of Section 2(b), Section 3(c), 3(d), 3(e), 3(g), 3(i), 3(j), 3(k), 3(n), 3(o), 3(p), 3(q) and 3(r), and the last three paragraphs of this Section 3 as if all references therein to a Shelf Registration Statement, the Prospectus included therein and the Holders of Registrable Securities referred, mutatis mutandis, to the Exchange Offer Registration Statement, the Prospectus included therein and the applicable Notifying Broker-Dealers and, for purposes of this Section 3(f), all references in any such paragraphs or sections to the “Majority Holders” shall be deemed to mean, solely insofar as relates to this Section 3(f), the Notifying Broker-Dealers who are the Holders of the majority in aggregate principal amount of the Exchange Securities which are Registrable Securities; and
(B)    the Company shall not be required to amend or supplement the Prospectus contained in the Exchange Offer Registration Statement as would otherwise be contemplated by Section 3(b) or 3(k) hereof, or take any other action as a result of this Section 3(f), for a period exceeding 180 days (subject to extension pursuant to the last paragraph of this Section 3) after the last date on which exchanges are accepted pursuant to the Exchange Offer and Notifying Broker-Dealers shall not be authorized by the Company to, and shall not, deliver such Prospectus after such period in connection with resales contemplated by this Section 3;
(g)    in the case of a Shelf Registration, furnish counsel for the Holders of Registrable Securities and counsel for any underwriters of Registrable Securities copies of any request by the SEC or any state securities authority for amendments or supplements to a Registration Statement or Prospectus or for additional information;
(h)    use its reasonable best effort to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement as soon as practicable and provide immediate notice to each Holder of the withdrawal of any such order;

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(i)    in the case of a Shelf Registration, upon request furnish to each Holder of Registrable Securities, without charge, at least one conformed copy of each Registration Statement and any post-effective amendments thereto (without documents incorporated or deemed to be incorporated therein by reference or exhibits thereto, unless requested);
(j)    in the case of a Shelf Registration, cooperate with the selling Holders of Registrable Securities to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold and not bearing any restrictive legends; and cause such Registrable Securities to be in such denominations (consistent with the provisions of the Indenture) and in a form eligible for deposit with the Depositary and registered in such names as the selling Holders or the underwriters, if any, may reasonably request in writing at least two business days prior to the closing of any sale of Registrable Securities;
(k)    in the case of a Shelf Registration, upon the occurrence of any event or the discovery of any facts as contemplated by Section 3(e)(vi) hereof, use its best efforts to prepare a supplement or post-effective amendment to a Registration Statement or the related Prospectus or any document incorporated or deemed to be incorporated therein by reference or file any other required document so that, as thereafter delivered to the purchasers of the Registrable Securities, such Prospectus will not contain at the time of such delivery any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.  The Company agrees to notify each Holder to suspend use of the Prospectus as promptly as practicable after the occurrence of such an event, and each Holder hereby agrees to suspend use of the Prospectus until the Company has amended or supplemented the Prospectus to correct such misstatement or omission.  At such time as such public disclosure is otherwise made or the Company determines that such disclosure is not necessary, in each case to correct any misstatement of a material fact or to include any omitted material fact, the Company agrees promptly to notify each Holder of such determination and to furnish each Holder such number of copies of the Prospectus, as amended or supplemented, as such Holder may reasonably request;
(l)    obtain CUSIP and ISIN numbers for all Exchange Securities or Registrable Securities, as the case may be, not later than the effective date of a Registration Statement, and provide the Trustee with printed or word-processed certificates for the Exchange Securities or Registrable Securities, as the case may be, in a form eligible for deposit with the Depositary;
(m)    (i) cause the Indenture to be qualified under the TIA in connection with the registration of the Exchange Securities or Registrable Securities, as the case may be, (ii) cooperate with the Trustee and the Holders to effect such changes, if any, to the Indenture as may be required for the Indenture to be so qualified in accordance with the terms of the TIA and (iii) execute, and use its reasonable best efforts to cause the Trustee to execute, all documents as may be required to effect such changes, if any, and all other forms and documents required to be filed with the SEC to enable the Indenture to be so qualified in a timely manner;
(n)    in the case of a Shelf Registration, the holders of a majority in principal amount of the Registrable Securities registered pursuant to such Shelf Registration Statement shall have the right to direct the Company to effect not more than one underwritten registration and, in connection with such underwritten registration, the Company shall enter into agreements (including underwriting agreements or similar agreements) and take all other customary and appropriate actions (including those reasonably requested by the holders of a majority in principal amount of the Registrable Securities being sold) in order to expedite or facilitate the disposition of such Registrable Securities and in such connection, in a manner that is reasonable and customary:

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(i)    make such representations and warranties to the Holders of such Registrable Securities and the underwriters, in form, substance and scope as are customarily made by issuers to underwriters in similar underwritten offerings as may be reasonably requested by such Holders and underwriters;
(ii)    obtain opinions of counsel to the Company (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the managing underwriters, and the Holders of a majority in principal amount of the Registrable Securities being sold) addressed to each selling Holder and the underwriters, covering the matters customarily covered in opinions requested in sales of securities or underwritten offerings and such other matters as may be reasonably requested by such Holders and underwriters;
(iii)    obtain “cold comfort” letters and updates thereof with respect to such Shelf Registration Statement and the Prospectus included therein, all amendments and supplements thereto and all documents incorporated or deemed to be incorporated by reference therein from the Company’s independent certified public accountants and from the independent certified public accountants for any other Person or any business or assets whose financial statements are included or incorporated by reference in the Shelf Registration Statement, each addressed to the underwriters, and use reasonable best efforts to have such letters addressed to the selling Holders of Registrable Securities, such letters to be in customary form and covering matters of the type customarily covered in “cold comfort” letters to underwriters in connection with similar underwritten offerings and such letters to be delivered at the time of the pricing of such underwritten registration with an update to such letter to be delivered at the time of closing of such underwritten registration;
(iv)    if an underwriting agreement or other similar agreement is entered into, cause the same to set forth indemnification and contributions provisions and procedures substantially equivalent to the indemnification and contributions provisions and procedures set forth in Section 5 hereof with respect to the underwriters and all other parties to be indemnified pursuant to Section 5 hereof or such other indemnification and contributions as shall be satisfactory to the Company, the applicable underwriters and the Holders of the majority in principal amount of the Registrable Securities being sold; and
(v)    deliver such other documents and certificates as may be reasonably requested and as are customarily delivered in similar offerings.
The documents referred to in Sections 3(n)(ii) and 3(n)(v) shall be delivered at the closing under any underwriting or similar agreement as and to the extent required thereunder.  In the case of any such underwritten offering, the Company shall provide written notice to the Holders of all Registrable Securities of such underwritten offering at least 30 days prior to the filing of a prospectus supplement for such underwritten offering.  Such notice shall (x) offer each such Holder the right to participate in such underwritten offering, (y) specify a date, which shall be no earlier than 15 days following the date of such notice, by which such Holder must inform the Company of its intent to participate in such underwritten offering and (z) include the instructions such Holder must follow in order to participate in such underwritten offering;
(o)    in the case of a Shelf Registration, upon request make available for inspection by representatives of the Holders of the Registrable Securities and any underwriters participating in any disposition pursuant to a Shelf Registration Statement and any counsel or accountant retained by such Holders or underwriters, all financial statements and other records, documents and properties of the Company reasonably requested by any such Persons, and cause the respective officers, directors, employees, and any 

16

other agents of the Company to supply all information reasonably requested by any such Persons in connection with a Shelf Registration Statement;
(p)    in the case of a Shelf Registration, a reasonable time prior to filing any Shelf Registration Statement, any Prospectus forming a part thereof, any amendment to such Shelf Registration Statement or amendment or supplement to such Prospectus, provide copies of such document to the Holders of Registrable Securities, to the underwriter or underwriters, of an underwritten offering of Registrable Securities, and to counsel for any such Holders, or underwriters, and make such changes in any such document prior to the filing thereof as the Holders of Registrable Securities, any such underwriter or underwriters or any of their respective counsel may reasonably request; and cause the representatives of the Company to be available for discussion of such documents as shall be reasonably requested by the Holders of Registrable Securities, or any underwriter, and shall not at any time make any filing of any such document of which such Holders, their counsel or any underwriter shall not have previously been advised and furnished a copy or to which such Holders, their counsel or any underwriter shall reasonably object within a reasonable time period;
(q)    in the case of a Shelf Registration, use its reasonable best efforts to cause all Registrable Securities to be listed on any securities exchange on which similar debt securities issued by the Company are then listed if requested by the Majority Holders or by the underwriter or underwriters of an underwritten offering of Registrable Securities, if any;
(r)    otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the SEC and, with respect to each Registration Statement and each post-effective amendment, if any, thereto and each filing by the Company of an Annual Report on Form 10-K, make available to its security holders, as soon as reasonably practicable, an earnings statement covering at least twelve months which shall satisfy the provisions of Section 11(a) of the 1933 Act and Rule 158 thereunder; and
(s)    cooperate and assist in any filings required to be made with FINRA and in the performance of any due diligence investigation by any underwriter and its counsel.
In the case of a Shelf Registration Statement, the Company may (as a condition to such Holder’s participation in the Shelf Registration) require each Holder of Registrable Securities to furnish to the Company such information regarding such Holder and the proposed distribution by such Holder of such Registrable Securities as the Company may from time to time reasonably request in writing and require such Holder to agree in writing to be bound by all provisions of this Agreement applicable to such Holder.
In the case of a Shelf Registration Statement, each Holder agrees and, in the event that any Participating Broker-Dealer is using the Prospectus included in the Exchange Offer Registration Statement in connection with the sale of Exchange Securities pursuant to Section 3(f), each such Participating Broker-Dealer agrees that, upon receipt of any notice from the Company of the happening of any event or the discovery of any facts of the kind described in Section 3(e)(ii), 3(e)(iii) or 3(e)(v) through 3(e)(vii) hereof, such Holder or Participating Broker-Dealer, as the case may be, will forthwith discontinue disposition of Registrable Securities pursuant to a Registration Statement until receipt by such Holder or Participating Broker-Dealer, as the case may be, of (i) the copies of the supplemented or amended Prospectus contemplated by Section 3(k) hereof or (ii) written notice from the Company that the Shelf Registration Statement or the Exchange Offer Registration Statement, respectively, are once again effective or that no supplement or amendment is required.  If so directed by the Company, such Holder or Participating Broker-Dealer, as the case 

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may be, will deliver to the Company (at the Company’s expense) all copies in its possession, other than permanent file copies then in its possession, of the Prospectus covering such Registrable Securities current at the time of receipt of such notice.  Nothing in this paragraph shall prevent the accrual of Additional Interest on any Registrable Securities.
If the Company shall give any such notice to suspend the disposition of Registrable Securities pursuant to the immediately preceding paragraph, the Company shall be deemed to have used its reasonable best efforts to keep the Shelf Registration Statement or, in the case of Section 3(f), the Exchange Offer Registration Statement, as the case may be, effective during such period of suspension; provided that (i) such period of suspension shall not exceed the time periods provided in Section 2(d)(iii) hereof and (ii) the Company shall use its reasonable best efforts to file and have declared effective (if an amendment) as soon as practicable thereafter an amendment or supplement to the Shelf Registration Statement or the Exchange Offer Registration Statement or both, as the case may be, or the Prospectus included therein and shall extend the period during which the Shelf Registration Statement or the Exchange Offer Registration Statement or both, as the case may be, shall be maintained effective pursuant to this Agreement (and, if applicable, the period during which Participating Broker-Dealers may use the Prospectus included in the Exchange Offer Registration Statement pursuant to Section 3(f) hereof) by the number of days during the period from and including the date of the giving of such notice to and including the earlier of the date when the Holders or Participating Broker-Dealers, respectively, shall have received copies of the supplemented or amended Prospectus necessary to resume such dispositions and the effective date of written notice from the Company to the Holders or Participating Broker-Dealers, respectively, that the Shelf Registration Statement or the Exchange Offer Registration Statement, respectively, are once again effective or that no supplement or amendment is required.
4.    Underwritten Registrations.  If any of the Registrable Securities covered by any Shelf Registration are to be sold in an underwritten offering, the investment banker or investment bankers and manager or managers that will manage the offering will be selected by the Majority Holders of such Registrable Securities included in such offering and shall be reasonably acceptable to the Company.
No Holder of Registrable Securities may participate in any underwritten registration hereunder unless such Holder (a) agrees to sell such Holder’s Registrable Securities on the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents required under the terms of such underwriting arrangements.
5.    Indemnification and Contribution.
(a)    The Company agrees to indemnify and hold harmless each Holder, each Participating Broker-Dealer, each underwriter who participates in an offering of Registrable Securities (each, an “Underwriter”) and each Person, if any, who controls any Holder, Participating Broker-Dealer or Underwriter within the meaning of either Section 15 of the 1933 Act or Section 20 of the 1934 Act, as follows:

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(iv)    against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement (or any amendment thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or Prospectus (or any amendment or supplement thereto) or any omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;
(v)    against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission described in subparagraph (i) above; provided that (subject to Section 5(d) below) any such settlement is effected with the written consent of the Company; and
(vi)    against any and all expense whatsoever, as incurred (including, subject to Section 5(c) below, the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission described in subparagraph (i) above, to the extent that any such expense is not paid under subparagraph (i) or (ii) above;
provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by any Holder, Participating Broker-Dealer or Underwriter with respect to such Holder, Participating Broker-Dealer or Underwriter, as the case may be, expressly for use in the Registration Statement (or any amendment thereto) or the Prospectus (or any amendment or supplement thereto).
(b)    Each Holder, severally but not jointly, agrees to indemnify and hold harmless the Company, each director of the Company, each officer of the Company who signed the Registration Statement, each Participating Broker-Dealer, each Underwriter and each other selling Holder and each Person, if any, who controls the Company, any Underwriter, any Participating Broker-Dealer or any other selling Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in Section 5(a) hereof, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Shelf Registration Statement (or any amendment thereto) or any Prospectus included therein (or any amendment or supplement thereto) in reliance upon and in conformity with written information with respect to such Holder furnished to the Company by such Holder expressly for use in the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that no such Holder shall be liable for any claims hereunder in excess of the amount of net proceeds received by such Holder from the sale of Registrable Securities pursuant to such Shelf Registration Statement.
(c)    Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of any action commenced against it in respect of which indemnity may be sought 

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hereunder, but failure so to notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement.  Counsel to the respective indemnified parties shall be selected as follows: (i) counsel to the Company, its directors, each of its officers who signed the Registration Statement and all Persons, if any, who control the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall be selected by the Company; (ii) counsel to the Holders (other than Participating Broker-Dealers) and all Persons, if any, who control any Holders (other than any Participating Broker-Dealers) within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall be selected by the Holders who held or hold, as the case may be, a majority in aggregate principal amount of the Registrable Securities held by all such Holders; (iii) counsel to the Underwriters of any particular offering of Registrable Securities and all Persons, if any, who control any such Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall be selected by such Underwriters; and (iv) counsel to the Participating Broker-Dealers and all Persons, if any, who control any such Participating Broker-Dealer within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall be selected by the Participating Broker-Dealers who held or hold, as the case may be, a majority in aggregate principal amount of the Exchange Securities referred to in Section 3(f) hereof held by all such Participating Broker-Dealers.  An indemnifying party may participate at its own expense in the defense of any such action; provided, however, that counsel to the indemnifying party shall not (except with the consent of the indemnified party) also be counsel to the indemnified party.  In no event shall the indemnifying party or parties be liable for (A) the fees and expenses of more than one counsel (in addition to any local counsel) separate from the indemnifying parties’ own counsel for the Company and all other Persons referred to in clause (i) of this paragraph, (B) the fees and expenses of more than one counsel (in addition to any local counsel) separate from the indemnifying parties’ own counsel for all Holders (other than Participating Broker-Dealers) and all other Persons referred to in clause (ii) of this paragraph, (C) the fees and expenses of more than one counsel (in addition to any local counsel) separate from the indemnifying parties’ own counsel for all Underwriters of any particular offering of Registrable Securities and all other Persons referred to in clause (iii) of this paragraph, and (D) the fees and expenses of more than one counsel (in addition to any local counsel) separate from the indemnifying parties’ own counsel for all Participating Broker-Dealers and all other Persons referred to in clause (iv) of this paragraph, in each case in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances.  No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 5 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.
(d)    If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 5(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement.  Notwithstanding the immediately preceding sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party shall 

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not be liable for any settlement of the nature contemplated by Section 5(a)(ii) effected without its written consent if such indemnifying party (x) reimburses such indemnified party in accordance with such request to the extent that the indemnifying party in its judgment considers such request to be reasonable and (y) provides written notice to the indemnified party stating the reason it deems the unpaid balance unreasonable, in each case no later than 45 days after receipt by such indemnifying party of the aforesaid request from the indemnified party.
(e)    If the indemnification provided for in this Section 5 is for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party or parties on the one hand and of the indemnified party or parties on the other hand in connection with the statements or omissions that resulted in such losses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations.  The relative fault of such indemnifying party or parties on the one hand and the indemnified party or parties on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by such indemnifying party or parties or such indemnified party or parties, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.
(f)    The Company and the Holders agree that it would not be just or equitable if contribution pursuant to this Section 5 were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in paragraph (e) above.  The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 5 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission.
Notwithstanding the provisions of this Section 5, no Holder, Participating Broker-Dealer or Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which Registrable Securities sold by it were offered exceeds the amount of any damages that such Holder, Participating Broker-Dealer or Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omission.
No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.
For purposes of this Section 5, each Person, if any, who controls a Holder, Participating Broker-Dealer or Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Holder, Participating Broker-Dealer or Underwriter, as the case may be, and each director of the Company, each officer of the Company who signed the Registration Statement and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company.

21

The respective obligations of the Holders, Participating Broker-Dealers and Underwriters to contribute pursuant to this Section 5 are several in proportion to the principal amount of Subordinated Notes purchased by them and not joint.
The indemnity and contribution provisions contained in this Section 5 shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of any Holder, Participating Broker-Dealer or Underwriter or any Person controlling any Holder, Participating Broker-Dealer or Underwriter, or by or on behalf of the Company, its officers or directors or any Person controlling the Company, (iii) acceptance of any of the Exchange Securities and (iv) any sale of Registrable Securities or Exchange Securities pursuant to a Shelf Registration Statement.
6.    Miscellaneous.
(a)    Rule 144 and Rule 144A.  For so long as the Company is subject to the reporting requirements of Section 13 or 15 of the 1934 Act, the Company covenants that it will file all reports required to be filed by it under Section 13(a) or 15(d) of the 1934 Act and the rules and regulations adopted by the SEC thereunder, that if it ceases to be so required to file such reports, it will upon the request of any Holder or beneficial owner of Registrable Securities (i) make publicly available such information (including, without limitation, the information specified in Rule 144(c)(2) under the 1933 Act) as is necessary to permit sales pursuant to Rule 144 under the 1933 Act, (ii) deliver or cause to be delivered, promptly following a request by any Holder or beneficial owner of Registrable Securities or any prospective purchaser or transferee designated by such Holder or beneficial owner, such information (including, without limitation, the information specified in Rule 144A(d)(4) under the 1933 Act) as is necessary to permit sales pursuant to Rule 144A under the 1933 Act, and (iii) take such further action that is reasonable in the circumstances, in each case to the extent required from time to time to enable such Holder to sell its Registrable Securities without registration under the 1933 Act within the limitation of the exemptions provided by (x) Rule 144 under the 1933 Act, as such Rule may be amended from time to time, (y) Rule 144A under the 1933 Act, as such Rule may be amended from time to time, or (z) any similar rules or regulations hereafter adopted by the SEC.  Upon the request of any Holder or beneficial owner of Registrable Securities, the Company will deliver to such Holder a written statement as to whether it has complied with such requirements.
(b)    No Inconsistent Agreements.  The Company has not entered into nor will the Company on or after the date of this Agreement enter into any agreement which is inconsistent with the rights granted to the Holders of Registrable Securities in this Agreement or otherwise conflicts with the provisions hereof; provided that the Company will not be precluded from entering into any agreement after the date hereof which may or does result, directly or indirectly, in the payment of Additional Interest.  The rights granted to the Holders hereunder do not and will not in any way conflict with and are not and will not be inconsistent with the rights granted to the holders of any of the Company’s other issued and outstanding securities under any other agreements entered into by the Company or any of its subsidiaries.
(c)    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 Company has obtained the written consent of Holders of at least a majority in aggregate principal amount of the outstanding Registrable Securities affected by such amendment, modification, supplement, waiver or departure.

22

(d)    Notices.  All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery, registered first-class mail, electronic mail, or any courier guaranteeing overnight delivery (i) if to a Holder or Participating Broker-Dealer at the most current address set forth on the records of the registrar under the Indenture, (ii) if to the Company, initially at the address set forth in the Purchase Agreement and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 6(d) and (iii) if to any Underwriter, at the most current address given by such Underwriter to the Company by means of a notice given in accordance with the provisions of this Section 6(d), which address initially shall be the address set forth in the applicable underwriting agreement.
All such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five business days after being deposited in the mail, postage prepaid, if mailed; when receipt is acknowledged, if sent via electronic mail; and on the next business day if timely delivered to an air courier guaranteeing overnight delivery.
Copies of all such notices, demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee, at the address specified in the Indenture.
(e)    Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the successors, assigns and transferees of each of the parties, including, without limitation and without the need for an express assignment, subsequent Holders; provided that nothing herein shall be deemed to permit any assignment, transfer or other disposition of Registrable Securities in violation of the terms hereof or of the Purchase Agreement or the Indenture.  If any transferee of any Holder shall acquire Registrable Securities, in any manner, whether by operation of law or otherwise, such Registrable Securities shall be held subject to all of the terms of this Agreement, and by taking and holding such Registrable Securities, such Person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement, including the restrictions on resale set forth in this Agreement and, if applicable, the Purchase Agreement, and such Person shall be entitled to receive the benefits hereof.
(f)    Third Party Beneficiary.  Each Holder and Participating Broker-Dealer shall be a third party beneficiary of the agreements made hereunder and shall have the right to enforce such agreements directly to the extent it deems such enforcement necessary or advisable to protect its rights or the rights of other Holders hereunder.  Each Holder, by its acquisition of Subordinated Notes, shall be deemed to have agreed to the provisions of Section 5(b) hereof.
(g)    Counterparts.  This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.
(h)    Headings.  The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.
(i)    Restriction on Resales.  If the Company or any of its subsidiaries or affiliates (as defined in Rule 144 under the 1933 Act) shall redeem, purchase or otherwise acquire any Registrable Security or any Exchange Security which is a “restricted security” within the meaning of Rule 144 under the 1933 Act, the Company will deliver or cause to be delivered such Registrable Security or Exchange Security, as the case may be, to the Trustee for cancellation and neither the Company nor any of its subsidiaries or affiliates will hold or resell such Registrable Security or Exchange Security or issue any new Security or Exchange Security to replace the same.

23

(j)    GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY CONFLICTS OF LAW PROVISIONS.
(k)    Severability.  In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby.
[SIGNATURE PAGE FOLLOWS]

24

IN WITNESS WHEREOF, Company has caused this Registration Rights Agreement to be executed by its duly authorized representative as of the date first above written.
	
		
	 
	COMPANY:
WASHINGTONFIRST BANKSHARES, INC.

By:      __________________________
Name:   Shaza L. Andersen
Title:   President and Chief Executive Officer 

[Signature Page to Registration Rights Agreement]

IN WITNESS WHEREOF, the Purchaser has caused this Registration Agreement to be executed by its duly authorized representative as of the date first above written.
	
		
	 
	 

	 
	PURCHASER:
[ _______________________________ ]

By:      
Name:   
Title:      
 

 

[Signature Page to Registration Rights Agreement]Exhibit
10.1

 

the
marcus corporation

deferred compensation plan

 

(As Amended
and Restated Effective January 1, 2009)

 

     

     

    

 

TABLE OF
CONTENTS

 

	 	Page
	 	 
	ARTICLE I. DEFINITIONS	1
	Section 1.01. Definitions	1
	 	 
	ARTICLE II. PARTICIPATION	3
	Section 2.01. Participation	3
	Section 2.02. Termination of
    Participation	4
	Section 2.03. Deferred Compensation
    Election Forms	4
	Section 2.04. Cancellation
    of Deferral Elections	6
	Section 2.05. Limits on Deferred
    Compensation	6
	 	 
	ARTICLE III. DEFERRED COMPENSATION ACCOUNTS	7
	Section 3.01. Deferred Compensation
    Account	7
	Section 3.02. Earnings on Accounts	7
	Section 3.03. Periodic Statements
    of Account	7
	Section 3.04. Participant’s
    Rights Unsecured	7
	Section 3.05. Unfunded Plan	7
	Section 3.06. Effect of Change
    of Control or Potential Change of Control	7
	 	 
	ARTICLE IV. DISTRIBUTIONS	8
	Section 4.01. Distributions	8
	Section 4.02. Forms of Payment.	8
	Section 4.03. Distribution
    in Event of Unforeseeable Emergency	8
	 	 
	ARTICLE V. ADMINISTRATION AND OTHER PROVISIONS	9
	Section 5.01. Administration
    of the Plan	9
	Section 5.02. Amendment and
    Termination; Acceleration of Distributions	9
	Section 5.03. Claims Procedure.	10
	Section 5.04. Expenses	11
	Section 5.05. Right to Employment	11
	Section 5.06. Effect on Other
    Plans	11
	Section 5.07. Severability	11
	Section 5.08. Binding Upon
    Successors	11
	Section 5.09. Tax Withholding	12
	Section 5.10. Governing Law	12

 

    i 

     

    

  

THE
MARCUS CORPORATION

DEFERRED COMPENSATION PLAN

 

THE
MARCUS CORPORATION, a Wisconsin corporation, together with its Affiliates (collectively referred to herein as the “Company”)
established this Deferred Compensation Plan (the “Plan”), effective January 1, 1990, for the purpose of assisting
Participants in providing additional financial security for themselves and their dependents.

 

ARTICLE
I. DEFINITIONS

 

Section
1.01. Definitions. The following terms have the following meanings unless the context clearly indicates otherwise:

 

(a)          “Account”
or “Deferred Compensation Account” means the bookkeeping entry established on the records of The Marcus Corporation
and/or pursuant to the Trust Agreement to reflect the amount owed to a Participant or Beneficiary under the Plan. The Administrator
shall maintain a separate Account for each year’s deferrals, as adjusted for earnings thereon and distributions therefrom.
For purposes of Code Section 409A, each Account shall be treated as a right to a separate payment.

 

(b)          “Administrator”
means The Marcus Corporation Deferred Compensation Plan Administration Committee as appointed by the Board of Directors.

 

(c)          “Affiliate”
means each entity that is required to be included in the controlled group of corporations with The Marcus Corporation within the
meaning of Code Section 414(b), or that is under common control with The Marcus Corporation within the meaning of Code Section
414(c); provided that for purposes of determining if a Participant has incurred a Separation from Service, the phrase “at
least 50 percent” shall be used in place of the phrase “at least 80 percent” each place it appears therein or
in the regulations thereunder.

 

(d)          “Beneficiary”
means the person or entity designated by the Participant to be the beneficiary of the Deferred Compensation Accounts of the Participant
under the Plan. If a valid designation of Beneficiary is not in effect at the time of the death of a Participant, or if the Beneficiary
does not survive the Participant, the estate of the Participant is deemed to be the sole Beneficiary of such Accounts. If a Participant
dies before receiving full distribution of each of his or her Accounts, any remaining distributions shall be made to the Beneficiary.
If a Beneficiary dies after a Participant while entitled to receive distributions from the Plan, any remaining payments shall
be paid to the estate of the Beneficiary. Beneficiary designations shall be in writing, filed with the Administrator, and in such
form as the Administrator may prescribe for this purpose.

 

(e)          “Board
of Directors” means the Board of Directors of The Marcus Corporation.

 

(f)          “Change
of Control” has the meaning ascribed under Code Section 409A.

 

(g)          “Code”
means the Internal Revenue Code of 1986, as amended from time to time.

 

     

     

    

 

(h)          “Compensation”
means the Participant’s gross base salary, annual bonus and commission, in each case that is payable in cash, for the relevant
period. Commission will be treated as earned in the calendar year in which the customer remits the payment to the Company. In
no event shall quarterly, special or any other types of bonuses be considered Compensation hereunder.

 

(i)          “Deferred
Compensation Election Form” or “Election Form” means the written election of a Participant to defer a portion
of his or her Compensation for a calendar year (or portion thereof, if applicable) pursuant to the provisions of the Plan. An
Election Form shall specify the calendar year in which payment shall commence, or that payment should commence in the Participant’s
anticipated year of retirement or the immediately following year. The Election Form shall also specify whether payment is to be
made in a single lump sum amount or in periodic annual payments over not more than ten (10) years.

 

(j)          “Disability”
(or “Disabled”) means the Participant is unable to perform the duties of his or her position or any substantially
similar position due to a mental or physical impairment that can be expected to result in death or last for a continuous period
of at least six months.

 

(k)          “Eligible
Associate” means an associate of The Marcus Corporation, or of such Affiliate as is specified by the Administrator as a
participating employer in the Plan, who:

 

		(i)	As
                                         of October of a given year, has projected Compensation that is equal to or greater than
                                         the amount described in Code Section 414(q)(1)(B)(i), as adjusted (a “regular
                                         entrant”); or

 

		(ii)	Did
                                         not, as of October of a given year, meet the requirements of clause (i), but who, as
                                         of the end of such year, had Compensation for such year that is equal to or greater than
                                         the amount described in Code Section 414(q)(1)(B)(i), as adjusted (a “late entrant”).

 

Prior
to March 1, 2000, an Eligible Associate also was required to have reached age twenty-one (21) and have completed one (1) Year
of Service before being eligible to participate.

 

(l)          “Participant”
means an Eligible Associate who has executed a Deferred Compensation Election Form. After an Eligible Associate has become eligible
to become a Participant, the associate will remain eligible to participate, subject to governmental regulations, without regard
to increases in the compensation level described in Code Section 414(q)(1)(B) or reductions in individual Compensation.

 

(m)          “Separation
from Service” means a Participant’s termination of employment from the Company and its Affiliates within the meaning
of Code Section 409A, or if the Participant continues to provide services to the Company and its Affiliates in a capacity other
than an employee after his or her termination, such later date as is considered a separation from service within the meaning of
Code Section 409A. Specifically, a Participant will be presumed to have incurred a Separation from Service when the level of bona
fide services performed by the Participant for the Company and its Affiliates permanently decreases to a level equal to twenty
percent (20%) or less of the average level of services performed by the Participant for the Company or its Affiliates during the
immediately preceding thirty-six (36) month period (or such lesser period of actual service). Notwithstanding the foregoing, a
Participant will not be considered to have terminated employment if the Participant is absent from active employment due to military
leave, sick leave or other bona fide leave of absence if the period of such leave does not exceed the greater of (i) six (6) months,
or if the leave of absence is due to the Participant’s Disability, then the leave period may be extended for up to a
total of twenty-nine (29) months; or (ii) the period during which the Participant’s right to reemployment by the Company
or an Affiliate is provided either by statute or by contract.

 

     2

     

    

 

(n)          “Trust
Agreement” means the Marcus Executive Benefit Trust Agreement entered into by the Company and the Trustee designated in
such Agreement to implement and carry out the provisions of the Plan. The Trust Agreement is incorporated herein by this reference.

 

(o)          “Unforeseeable
Emergency” means a severe financial hardship of the Participant resulting from any of the following, as determined by the
Administrator based on all of the relevant facts and circumstances:

 

		(i)	an
                                         illness or accident of the Participant, his or her spouse or dependent (as defined in
                                         Code Section 152, without regard to Sections 152(b)(1), (b)(2) and (d)(1)(B) thereof);

 

		(ii)	a
                                         loss of the Participant’s property due to casualty (including the need to rebuild
                                         a home following damage to a home not otherwise covered by insurance); or

 

		(iii)	other
                                         similar extraordinary and unforeseeable circumstances arising as a result of events beyond
                                         the control of the Participant.

 

(p)          A
“Year of Service” is employment by the Company for twelve (12) consecutive months without an intervening unpaid leave
of absence or other separation from employment.

 

ARTICLE
II. PARTICIPATION

 

Section
2.01. Participation.

 

		(a)	Initial
                                         Year of Participation

 

		(i)	Regular
                                         Entrants. An Eligible Associate who is designated as a “regular entrant”
                                         may elect to participate as of the first day of the calendar year following the year
                                         in which he or she has first been designated as a regular entrant by filing a Deferred
                                         Compensation Election Form no later than November 30 of the prior year.

 

     3

     

    

 

		(ii)	Late
                                         Entrants. An Eligible Associate who is designated as a “late entrant”
                                         may elect to commence participation in the Plan effective February 1 of the year immediately
                                         following the year in which he or she has first been designated as a late entrant by
                                         filing a Deferred Compensation Election Form no later than January 31 of the year following
                                         such designation.

 

(b)          Subsequent
Years of Participation. After the initial eligibility period described above, persons who remain eligible to participate may
elect to participate as of the first day of a calendar year by filing a Deferred Compensation Election Form no later than November 30
of the prior year.

 

Section
2.02. Termination of Participation. A Participant has no further right to defer Compensation under the Plan upon a Separation
from Service (provided that any Compensation paid after such Separation from Service occurs shall be deferred according to the
Participant’s election then in effect) or upon receipt of written notice of revocation by the Administrator (based on government
regulations) of an associate’s status as an Eligible Associate. Such revocations are effective only upon the January 1 following
the date that the associate is provided such written notice. If a Participant Separates from Service and subsequently returns
to service with the Company or an Affiliate, he shall be treated as a new associate for all Plan purposes; provided that
if he returns to service within the same calendar year, his or her Deferred Compensation Election Form in effect for such year
shall automatically be reinstated.

 

Section
2.03. Deferred Compensation Election Forms.

 

(a)          An
Eligible Associate shall commence participation by executing a Deferred Compensation Election Form that shall be effective:

 

		(i)	For
                                         all Participants other than late entrants, as of the first payroll period beginning on
                                         or after the first day of the calendar year following the calendar year in which the
                                         Election Form is completed and placed on file with the Administrator; and

 

		(ii)	For
                                         Participants who are late entrants, as of the first payroll period beginning on or after
                                         their initial participation date of February 1. A Participant who is a late entrant shall
                                         not be eligible to defer Compensation payable under an annual bonus award that is in
                                         effect during the first year of participation.

 

An
election for a calendar year (or the remainder thereof for a late entrant) shall apply to base salary payable for the last pay
period ending on or before the last day of such calendar year, even if payment is made in the following year. However, with regard
to the last payroll period of a calendar year that ends after December 31, the base salary payable for such payroll period shall
be deemed compensation in the year paid. For example, base salary payable for the payroll period beginning December 29, 2008 and
ending January 2, 2009, shall be considered base salary payable for 2009 (even though some of such base salary was earned in 2008)
and thus shall be subject to the deferral election in effect for 2009.

 

     4

     

    

 

(b)          The
Administrator shall determine the form of the Deferred Compensation Election Form from time to time. Upon the last day on which
a Deferred Compensation Election Form can be timely filed, the election shall be irrevocable and a Participant shall be bound
by all the terms and conditions of the Plan and such Election Form.

 

(c)          The
Deferred Compensation Election Form may permit a Participant to file separate elections with respect to any or all of (i) gross
base salary, (ii) annual bonus, or (iii) commissions. A Deferred Compensation Election Form may permit a Participant to have deferred
amounts contributed to the Company’s 401(k) plan pursuant to such rules as the Administrator may prescribe.

 

(d)          The
Deferred Compensation Election Form shall include a distribution date and form of payment election, indicating the calendar year
in which payment is to commence or, in the case of a lump sum payment, be made, and the form of payment that is to be used.

 

(e)          A
Participant may select a later distribution date for the Participant’s Account and/or select a different form of payment
for such Account, within the general limitations of the Plan. Any such change of distribution date or change of form of payment
is subject to the following requirements:

 

		(i)	such
                                         change must be made in writing, using the Administrator’s form for this purpose;

 

		(ii)	such
                                         change will not take effect until twelve (12) months after the date on which the change
                                         is made;

 

		(iii)	the
                                         first payment from the Account with respect to which such change of Distribution Date
                                         or Form of Payment must be deferred for at least five (5) years after the date such payment
                                         would otherwise have been paid but for such change; and

 

		(iv)	such
                                         change of Distribution Date or Form of Payment must be made more than twelve (12) months
                                         prior to the date of the first scheduled payment from the Account.

 

Such
election shall become irrevocable on the date immediately prior to twelve (12) months prior to the date of the first previously
scheduled payment.

 

(f)          The
Administrator may limit the availability and frequency of change elections under paragraph (e), above, in accordance with rules
announced in advance and generally applied to all Participants.

 

(g)          During
2007, pursuant to transition guidance issued under Code Section 409A, Participants were provided an opportunity to change
the time and form of payment of their Accounts without regard to the requirements of paragraph (e), but otherwise within the general
limitations of the Plan. The last Election Form on file as of December 31, 2007, shall be irrevocable, except as provided in paragraph
(e).

 

     5

     

    

 

During
2008, pursuant to transition guidance issued under Code Section 409A, (i) Participants whose annual bonus is based on a calendar
year performance cycle shall be permitted to file a Deferred Compensation Election Form with respect to the annual bonus earned
for calendar year 2008 and paid no later than March 15, 2009, and (ii) Participants whose annual bonus is based on the Company’s
fiscal year shall be permitted to file a Deferred Compensation Election Form with respect to the annual bonus earned for fiscal
year 2009 and paid no later than August 15, 2009.

 

Section
2.04. Cancellation of Deferral Elections. A Participant’s deferral election is irrevocable with respect to the calendar
year (or remainder of the calendar year for a late entrant) to which it relates except in the following circumstances:

 

(a)          If
a Participant receives a distribution due to an Unforeseeable Emergency and requests cancellation of his or her deferral election,
or if the Administrator determines that such deferral election must be cancelled in order for the Participant to receive a distribution
due to an Unforeseeable Emergency under this Plan, then the Participant’s deferral election shall be cancelled.

 

(b)          If
required for the Participant to receive a hardship distribution under a 401(k) plan sponsored by the Company, the Participant’s
deferral election shall be cancelled.

 

(c)          A
Participant’s deferral election may be cancelled at the Participant’s request during periods in which the Participant
is considered Disabled.

 

(d)          A
Participant’s deferral election with respect to an annual bonus that is earned based on the Company’s fiscal year
shall be cancelled to the extent such bonus does not meet the requirements for “performance-based compensation” within
the meaning of Code Section 409A.

 

A
Participant whose deferral election is cancelled pursuant to this Section 2.04 may make a new deferral election in accordance
with Section 2.01(b) with respect to future compensation, unless otherwise prohibited by the Administrator.

 

Section
2.05. Limits on Deferred Compensation.

 

(a)          The
aggregate deferral percentage with respect to Compensation may be any full percentage up to one hundred percent (100%); provided
that a Participant who is a late entrant may not, in his or her initial year of participation, defer any annual bonus earned with
respect to such year.

 

(b)          The
minimum scheduled period of deferral, other than for expected retirement, shall end no earlier than on the first day of the second
calendar year following the year in which Compensation is deferred.

 

(c)          The
Administrator may, from time to time, in its sole discretion, prospectively (effective only on a January 1) adjust the minimum
and maximum deferrals and the minimum deferral periods permitted hereunder.

 

     6

     

    

 

(d)          A
new Deferred Compensation Election Form is required to be filed by a Participant for each calendar year for which Compensation
is to be deferred. Deferral elections in effect for a calendar year are not revocable by the Participant during such year, except
as provided in Section 2.04.

 

ARTICLE
III. DEFERRED COMPENSATION ACCOUNTS

 

Section
3.01. Deferred Compensation Account. The Company shall establish one or more Deferred Compensation Accounts on its books for
each Participant, as necessary, and shall credit to each such Account any amounts deferred to such Account by the Participant
under the Plan. Such credits for deferred Compensation are to be made at such times as the deferred Compensation, but for the
Participant’s deferral election, would otherwise have been paid to the Participant.

 

Section
3.02. Earnings on Accounts. Accounts shall be credited as of the last day of each calendar year quarter with simple interest
from the date of deposit at the reference rate selected by the Administrator and declared by Chase Bank N.A. (or any successor
bank that acts as the Company’s primary bank) on the first day of the calendar year quarter. Quarterly adjustments in the
reference rate at the beginning of each calendar year quarter will apply to all monies in an Account.

 

Section
3.03. Periodic Statements of Account. The Administrator shall provide to each Participant, not less frequently than annually,
a statement with respect to each of his or her Accounts in such form as the Administrator determines to be appropriate, setting
forth credited amounts added during the reporting period, amounts distributed from such Account to the Participant since the last
report, the current balance to the credit of such Participant in such Account, and other appropriate information.

 

Section
3.04. Participant’s Rights Unsecured. The right of the Participant or his or her Beneficiary to receive a distribution
hereunder shall be an unsecured claim against the general assets of the Company, and neither the Participant nor any Beneficiary
shall have any rights in or against any amount credited to his or her Account or any other specific assets of the Company. The
right of a Participant or Beneficiary to the payment of benefits under this Plan shall not be assigned, transferred, pledged or
encumbered.

 

Section
3.05. Unfunded Plan. This Plan is unfunded and is maintained by the Company primarily for the purpose of providing deferred
compensation for a select group of management and highly compensated associates. Nothing contained in this Plan and no action
taken pursuant to its terms shall create or be construed to create a trust of any kind, or a fiduciary relationship between the
Company and any Participant or Beneficiary, or any other person.

 

Section
3.06. Effect of Change of Control or Potential Change of Control. Notwithstanding the preceding sections of this Article III,
upon the occurrence of a change of control or potential change of control, as described in Article III of the Trust Agreement,
or at such other time as determined by the Board of Directors pursuant to the Trust Agreement, payments due to be made under the
Plan may be paid out of assets transferred by the Company to the trust fund maintained pursuant to the terms and conditions of
the Trust Agreement.

 

     7

     

    

 

ARTICLE
IV. DISTRIBUTIONS

 

Section
4.01. Distributions. All distributions hereunder shall be made promptly by the Company as they become due under the terms
of the Plan except to the extent such distributions are made by the Trustee. Any payment of amounts due Participants or Beneficiaries
under the Plan which are made by the Trustee shall be deemed to be payment by the Company for all Plan purposes.

 

Section
4.02. Forms of Payment.

 

(a)          Lump
Sum Payment Method. An optional form of distribution of an Account to a Participant is payment in a single lump sum amount
paid in January of the calendar year designated for payment by the Participant in his or her Election Form. A Participant may,
however, elect in writing in advance with the Administrator, a payment date or dates (but not more than two dates) occurring later
in the same calendar year provided such election does not violate Code Section 409A.

 

(b)          Installment
Payment Method. An optional form of distribution of an Account to a Participant is the installment method of payment. Annual
installments over not more than ten (10) years may be elected. If the installment method of payment is elected, the periodic payments
will include earnings adjustments to any remaining balance during the payout period. Annual amounts to be distributed under the
installment method are determined at the beginning of the year in which payments are to be made by multiplying the amount in the
Participant’s Account as of the immediately preceding December 31 by a fraction in which the numerator is one (1) and the
denominator is the number of annual payments remaining to be paid (e.g., for 10 installments, 1/10, 1/9, 1/8, etc.). The first
installment payment shall be paid no later than thirty (30) days after the beginning of the calendar year designated for payment
by the Participant in his or her Election Form. Remaining installment payments will be paid in January of each subsequent
year. If the balance of a Participant’s Account is ten thousand dollars ($10,000) or less on any payment date, the Company
shall make a lump sum distribution to the Participant of the full remaining Account balance.

 

(c)          Death
Benefits. Notwithstanding any time and form of distribution election made by a Participant, in the event of the Participant’s
death, the balance of the Participant’s Account shall be paid to the Participant’s Beneficiary in a single lump sum
within ninety (90) days following the date of the Participant’s death.

 

Section
4.03. Distribution in Event of Unforeseeable Emergency. If a Participant provides information to the Administrator which is
sufficient, as determined solely and conclusively by the Administrator, to establish that an Unforeseeable Emergency significantly
affecting the personal or family affairs of the Participant has occurred, and has created the need for additional current income,
the Administrator may elect, in the sole discretion of the Administrator, to authorize an immediate lump sum payment to such Participant
from the Participant’s Deferred Compensation Account, in an amount reasonably necessary to satisfy the emergency need (taking
tax consequences into account) after taking into account any additional compensation that is available if the Participant’s
deferrals into this Plan cease pursuant to Section 2.04. Notwithstanding the foregoing, no distribution shall be made to the extent
the Administrator determines that the emergency need is or may be relieved through reimbursement or compensation from insurance
or otherwise, by liquidation of the Participant’s assets (but only to the extent such liquidation would not cause a severe
financial hardship), or by cessation of deferrals under the Plan. Distributions in event of Unforeseeable Emergency shall be made
first from Accounts with the earliest scheduled payment date.

 

     8

     

    

 

ARTICLE
V. ADMINISTRATION AND OTHER PROVISIONS

 

Section
5.01. Administration of the Plan. The Administrator shall administer and interpret the Plan, and supervise preparation of
Deferred Compensation Election Forms and Beneficiary designation forms, and any amendments thereto. Interpretation of the Plan
shall be within the sole discretion of the Administrator and shall be final and binding upon each Participant and Beneficiary.
This Plan shall be construed and interpreted in a manner that will cause any payment hereunder that is considered deferred compensation
and that is not exempt from Code Section 409A to meet the requirements thereof such that no additional tax will be due under Code
Section 409A on such payment. The Administrator may adopt and modify rules and regulations relating to the Plan as it deems necessary
or advisable for the administration of the Plan. If a member of the Administrator shall also be a Participant or Beneficiary,
such person shall not participate in any determinations affecting such person’s participation in the Plan.

 

Section
5.02. Amendment and Termination; Acceleration of Distributions

 

(a)          Amendment.
The Administrator may amend the Plan without the consent of the Participants or Beneficiaries, provided, however, that
no amendment may reduce any Account balance accrued on behalf of a Participant based on deferrals already made, or divest any
Participant of rights to which he would have been entitled if the Plan had been terminated immediately prior to the effective
date of such amendment.

 

(b)          Termination.
The Administrator may terminate the Plan without the consent of Participants or Beneficiaries, provided, however, that
the termination may not reduce any Account balance accrued on behalf of a Participant based on deferrals already made. Upon termination
of the Plan, any deferral elections then in effect shall be cancelled if permitted by Code Section 409A and no future deferral
elections shall be permitted. The Administrator may provide that, notwithstanding any distribution elections then in effect, all
Accounts will be paid out in connection with the termination of the Plan in the following circumstances:

 

		(i)	The
                                         irrevocable termination occurs within thirty (30) days prior to or twelve (12) months
                                         following a Change of Control, and all other arrangements required to be aggregated with
                                         this Plan under Code Section 409A following the Change of Control are likewise terminated
                                         and liquidated with respect to each Participant that experienced the Change of Control
                                         event. In such event, the balance of each Participant’s Account, including those
                                         Participants already in pay status, shall be paid in a lump sum as soon as practicable
                                         (but not more than twelve (12) months) following the date of such Plan termination.

 

     9

     

    

 

		(ii)	The
                                         termination occurs within twelve (12) months of a corporate dissolution taxed under Code
                                         Section 331, or with the approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A).
                                         In such event, the balance of each Participant’s Account, including those Participants
                                         already in pay status, shall be paid in a lump sum in the later of: (A) the calendar
                                         year in which the Plan termination occurs, or (B) the first calendar year in which payment
                                         is administratively practicable.

 

		(iii)	The
                                         termination of the Plan is irrevocable and does not occur proximate to a downturn in
                                         the financial health of the Company. In such event, the balance of all Accounts will
                                         be distributed to all Participants or Beneficiaries, as applicable, in a single sum payment
                                         at least 12 but not more than 24, months after the date of termination. This provision
                                         shall not be effective unless all other plans required to be aggregated with this Plan
                                         under Code Section 409A are also terminated and liquidated. Notwithstanding the
                                         foregoing, any payment that would otherwise be paid during the 12-month period beginning
                                         on the Plan termination date pursuant to the terms of the Plan shall be paid in accordance
                                         with such terms. In addition, the Company shall be prohibited from adopting a similar
                                         arrangement within 3 years following the date of the Plan’s termination.

 

Section
5.03. Claims Procedure.

 

(a)          Initial
Claim. If a Participant or Beneficiary (the “claimant”) believes that he is entitled to a distribution from the
Plan that was not provided, the claimant or his or her legal representative shall file a written claim for such benefit with the
Administrator no later than 90 days following the date the distribution should have been made. The Administrator shall review
the claim within 60 days following the date of receipt of the claim. If the claimant’s claim is denied in whole or part,
the Administrator shall provide written notice to the claimant of such denial. The written notice shall include: the specific
reason(s) for the denial; reference to specific Plan provisions upon which the denial is based; a description of any additional
material or information necessary for the claimant to perfect the claim and an explanation of why such material or information
is necessary; and a description of the Plan’s review procedures (as set forth in subsection (b)) and the time limits applicable
to such procedures, including a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA
following an adverse determination upon review.

 

     10

     

    

 

(b)          Request
for Appeal. The claimant has the right to appeal the Administrator’s decision by filing a written appeal to the Administrator
within 60 days after the claimant’s receipt of the decision or deemed denial; provided that to avoid penalties under
Code Section 409A, the claimant’s appeal must be filed no later than 180 days after the latest date the payment that
is in dispute should have been paid. The claimant will have the opportunity, upon request and free of charge, to have reasonable
access to and copies of all documents, records and other information relevant to the claimant’s appeal. The claimant may
submit with the appeal written comments, documents, records and other information relating to his or her appeal. The Administrator
will review all comments, documents, records and other information submitted by the claimant relating to the claim, regardless
of whether such information was submitted or considered in the initial claim determination. The Administrator shall make a determination
on the appeal within 60 days after receiving the claimant’s written appeal; provided that the Administrator may determine
that an additional 60-day extension is necessary due to circumstances beyond the Administrator’s control, in which event
the Administrator shall notify the claimant prior to the end of the initial period that an extension is needed, the reason therefor
and the date by which the Administrator expects to render a decision. If the claimant’s appeal is denied in whole or part,
the Administrator shall provide written notice to the claimant of such denial. The written notice shall include: the specific
reason(s) for the denial; reference to specific Plan provisions upon which the denial is based; a statement that the claimant
is entitled to receive, upon request and free of charge, reasonable access to and copies of all documents, records, and other
information relevant to the claimant’s claim; and a statement of the claimant’s right to bring a civil action under
Section 502(a) of ERISA. If the claimant does not receive a written decision within the time period(s) described above, the appeal
shall be deemed denied on the last day of such period(s).

 

(c)          ERISA
Fiduciary. For purposes of ERISA, the Administrator shall be considered the named fiduciary and the plan administrator for
the Plan.

 

Section
5.04. Expenses. Costs of administration of the Plan will be paid by the Company.

 

Section
5.05. Right to Employment. Participation in this Plan, or any modifications thereof, or the payments of any benefits hereunder,
shall not be construed as giving to any person any right to be retained in the service of the Company or any Affiliate, limiting
in any way the right of the Company or any Affiliate to terminate such person’s employment at any time, evidencing any agreement
or any understanding that the Company or any Affiliate will employ such person in any particular position or any particular rate
of compensation or guaranteeing such person any right to receive any other form or amount of remuneration from the Company or
any Affiliate.

 

Section
5.06. Effect on Other Plans. Compensation credited to a Deferred Compensation Account hereunder shall not be considered to
be “compensation” for the purpose of computing benefits under any qualified retirement plan which may be maintained
by the Company, but shall be considered compensation for welfare benefit plans maintained by the Company.

 

Section
5.07. Severability. If any of the provisions of the Plan shall be held to be invalid, or shall be determined to be inconsistent
with the purpose of the Plan, the remainder of the Plan shall not be affected thereby.

 

Section
5.08. Binding Upon Successors. This Plan shall be binding upon and inure to the benefit of The Marcus Corporation, its successors
and assigns, and the Participants and their heirs, executors, administrators, and legal representatives.

 

     11

     

    

 

Section
5.09. Tax Withholding. The Company shall have the right to deduct from any deferral made to the Plan, or any payment made
hereunder, or from any other amount due a Participant, the amount of cash sufficient to satisfy the Company’s or Affiliate’s
foreign, federal, state or local income tax withholding obligations with respect to such deferral (or vesting thereof) or payment.
In addition, if prior to the date of distribution of any amount hereunder, the Federal Insurance Contributions Act (FICA) tax
imposed under Code Sections 3101, 3121(a) and 3121(v)(2), where applicable, becomes due, the Participant’s Deferred
Compensation Account balance may be reduced by the amount needed to pay the Participant’s portion of such tax, plus an amount
equal to the withholding taxes due under federal, state or local law resulting from the payment of such FICA tax, and an additional
amount to pay the additional income tax at source on wages attributable to the pyramiding of the Code Section 3401 wages and taxes,
but no greater than the aggregate of the FICA tax amount and the income tax withholding related to such FICA tax amount.

 

Section
5.10. Governing Law. This Plan shall be construed in accordance with and governed by the law of the State of Wisconsin, without
regard to conflict of law principles thereof, to the extent not preempted by federal law.

 

     12

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