Document:

Exhibit
4.2

 

 

 

 

 

 

 

$400,000,000 PRINCIPAL
AMOUNT

Alexandria Real Estate Equities,
Inc.

3.70% Convertible
Senior Notes due 2027

Registration Rights Agreement

Dated as of January
17, 2007

 

 

Registration Rights Agreement

THIS
REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made and
entered into as of January 17, 2007, by and among Alexandria Real Estate
Equities, Inc., a Maryland corporation (the “Company”), and Alexandria
Real Estate Equities, L.P., a Delaware limited partnership (the “Guarantor”),
and UBS Securities LLC, Citigroup Global Markets Inc. and Merrill Lynch,
Pierce, Fenner & Smith Incorporated (collectively, the “Initial
Purchasers”), pursuant to that certain Purchase Agreement, dated January
10, 2007, (the “Purchase Agreement”), among the Company and the Initial
Purchasers.

In order to induce
the Initial Purchasers to enter into the Purchase Agreement, the Company has
agreed to provide 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.  The terms “herein,” “hereof,” “hereto,” “hereinafter”
and similar terms, as used in this Agreement, shall in each case refer to this
Agreement as a whole and not to any particular section, paragraph, sentence or
other subdivision of this Agreement.

The Company and
the Guarantor agree with the Initial Purchasers (i) for their benefit as
Initial Purchasers and (ii) for the benefit of the beneficial owners (including
the Initial Purchasers) from time to time of the Covered Securities (as defined
herein) (each of the foregoing a “Holder” and, together, the “Holders”),
as follows:

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

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

(b)           “additional
interest” has the meaning set forth in Section 2(e) hereof.

(c)           “Additional
Interest Accrual Period” has the meaning set forth in Section 2(e) hereof.

(d)           “Additional
Interest Amount” has the meaning set forth in Section 2(e) hereof.

(e)           “Additional
Interest Payment Date” means each July 15 and January 15 of each year.

(f)            “Affiliate”
means, with respect to any specified person, an “affiliate,” as defined in Rule
144, of such person.

(g)           “Amendment
Effectiveness Deadline Date” has the meaning set forth in Section 2(d)
hereof.

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(h)           “Applicable
Conversion Price” per share of Common Stock means, on a given date, one
thousand dollars ($1,000) divided by the Conversion Rate in effect as of such
date or, if no Securities are then outstanding, the Conversion Rate that would
be in effect as of such date were Securities then outstanding.

(i)            “Automatic
Shelf Registration Statement” has the meaning ascribed to it in Rule 405.

(j)            “Business
Day” means each day on which the New York Stock Exchange is open for
trading.

(k)           “Claim”
has the meaning set forth in Section 9(o) hereof.

(l)            “Common
Stock” means the shares of common stock, $0.01 par value per share, of the
Company and any other shares of capital stock as may constitute “Common Stock”
for purposes of the Indenture, including the Underlying Shares.

(m)          “Conversion
Rate” has the meaning ascribed to it in the Indenture.

(n)           “Covered
Security” has the meaning set forth in Section 1(ss) hereof.

(o)           “Effectiveness
Deadline Date” has the meaning set forth in Section 2(a) hereof.

(p)           “Effectiveness
Period” means a period (subject to extension pursuant to Section 3(k)
hereof) that terminates when there are no Registrable Securities outstanding.

(q)           “Event”
has the meaning set forth in Section 2(e) hereof.

(r)            “Event
Date” has the meaning set forth in Section 2(e) hereof.

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

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

(u)           “Form
S-1” means Form S-1 under the Securities Act.

(v)           “Form
S-3” means Form S-3 under the Securities Act.

(w)          “Holder”
has the meaning set forth in the preamble hereto.

(x)            “Holder
Information” has the meaning set forth in Section 6(b) hereof.

(y)           “Indemnified
Party” has the meaning set forth in Section 6(c) hereof.

 

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(z)            “Indemnifying
Party” has the meaning set forth in Section 6(c) hereof.

(aa)         “Indenture”
means the Indenture, dated as of the date hereof, among the Company, the
Guarantor and the Trustee, pursuant to which the Securities are being issued.

(bb)         “Initial
Purchasers” has the meaning set forth in the preamble hereto.

(cc)         “Initial
Shelf Registration Statement” has the meaning set forth in Section 2(a)
hereof.

(dd)         “Issue
Date” means the date hereof.

(ee)         “Managing
Underwriters” has the meaning set forth in Section 8(a) hereof.

(ff)           “Material
Event” has the meaning set forth in Section 3(k) hereof.

(gg)         “Maturity
Date” has the meaning ascribed to it in the Indenture.

(hh)         “NASD
Rules” has the meaning set forth in Section 3(t) hereof.

(ii)           “Notice
and Questionnaire” means a written questionnaire containing substantially
the information called for by the ‘Selling Securityholder Notice and
Questionnaire’ attached as Annex A to the Offering Memorandum of the Company,
dated January 10, 2007, relating to the Securities.

(jj)           “Notice
Holder” means, on a given date, any Holder that has delivered a Notice and
Questionnaire to the Company on or prior to such date, provided not all of such
Holder’s Registrable Securities that have been registered for resale pursuant
to a Notice and Questionnaire have been sold in accordance with a Shelf
Registration Statement.

(kk)         “Option
Repurchase Date” has the meaning ascribed to it in the Indenture.

(ll)           “Proceeding”
has the meaning set forth in Section 6(c) hereof.

(mm)       “Prospectus”
means each prospectus relating to any Shelf Registration Statement, including
all supplements and amendments to such prospectus, in each case in the form
furnished pursuant to this Agreement by the Company to Holders or filed by the
Company with the SEC pursuant to Rule 424 or as part of such Shelf Registration
Statement, as the case may be, and in each case including all materials, if
any, incorporated by reference or deemed to be incorporated by reference in
such prospectus.

(nn)         “Purchase
Agreement” has the meaning set forth in the preamble hereof.

(oo)         “Record
Date” means, (i) July 1, with respect to an Additional Interest Payment
Date that occurs on July 15, and (ii) January 1, with respect to an Additional
Interest Payment Date that occurs on January 15.

 

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(pp)         “Record
Holder” means, with respect to an Additional Interest Payment Date relating
to a Registrable Security for which any Additional Interest Amount has accrued,
a Notice Holder that was the holder of record of such Registrable Security at
the close of business on the Record Date relating to such Additional Interest
Payment Date.

(qq)         “Redemption”
has the meaning ascribed to it in the Indenture.

(rr)           “Redemption
Date” has the meaning ascribed to it in the Indenture.

(ss)         “Registrable
Securities” means the Underlying Shares and any securities into or for
which such Underlying Shares have been converted or exchanged, and any security
issued with respect thereto upon any stock dividend, split or similar event
(each of the foregoing, a “Covered Security”) until, in the case of any
such security, the earliest of:

(i)            the
date on which such security has been effectively registered under the
Securities Act and disposed of in accordance with the Registration Statement
relating thereto;

(ii)           the
date on which such security may be resold without restriction pursuant to Rule
144(k) or any successor provision thereto; or

(iii)          the
date on which such security has been publicly sold pursuant to Rule 144 or any
successor provision thereto.

(tt)           “Registration
Expenses” has the meaning set forth in Section 5 hereof.

(uu)         “Registration
Statement” means each registration statement, under the Securities Act, of
the Company that covers any of the Registrable Securities pursuant to this
Agreement, including amendments and supplements to such registration statement
and including all post-effective amendments to, all exhibits of, and all
materials incorporated by reference or deemed to be incorporated by reference
in, such registration statement, amendment or supplement.

(vv)         “Repurchase
at Holder’s Option” has the meaning ascribed to it in the Indenture.

(ww)       “Repurchase
Date” means the date of any repurchase specified in the Indenture and not
otherwise defined herein.

(xx)          “Repurchase
Upon Fundamental Change” has the meaning ascribed to it in the Indenture.

 

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(yy)         “Rule
144” means Rule 144 under the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the
SEC.

(zz)          “Rule
144A” means Rule 144A under the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the
SEC.

(aaa)       “Rule
405” means Rule 405 under the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the
SEC.

(bbb)      “Rule
415” means Rule 415 under the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the
SEC.

(ccc)       “Rule
424” means Rule 424 under the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the
SEC.

(ddd)      “Rule
430B” means Rule 430B under the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the
SEC.

(eee)       “Rule
456” means Rule 456 under the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the
SEC.

(fff)         “Rule
457” means Rule 457 under the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the
SEC.

(ggg)      “SEC”
means the Securities and Exchange Commission.

(hhh)      “Securities”
means the 3.70% Convertible Senior Notes due 2027 of the Company to be
purchased pursuant to the Purchase Agreement.

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

(jjj)          “Shelf
Registration Statement” means the Initial Shelf Registration Statement and
any Subsequent Shelf Registration Statement.

(kkk)       “Subsequent
Shelf Registration Statement” has the meaning set forth in Section 2(b)
hereof.

 

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(lll)          “Subsequent
Shelf Registration Statement Effectiveness Deadline Date” has the meaning
set forth in Section 2(d) hereof.

(mmm)    “Suspension
Notice” has the meaning set forth in Section 3(k) hereof.

(nnn)      “Suspension
Period” has the meaning set forth in Section 3(k) hereof.

(ooo)      “TIA”
means the Trust Indenture Act of 1939, as amended.

(ppp)      “Trustee”
means Wilmington Trust Company, the trustee under the Indenture.

(qqq)      “Underlying
Shares” means the shares of Common Stock issuable upon conversion of the
Securities or upon Redemption, Repurchase at Holder’s Option or Repurchase Upon
Fundamental Change.

2.             Shelf
Registration.

(a)           The
Company shall prepare and file, or cause to be prepared and filed, with the
SEC, by the date (the “Filing Deadline Date”) that is ninety (90) days
after the Issue Date, a Registration Statement (the “Initial Shelf
Registration Statement”) for an offering to be made on a delayed or
continuous basis pursuant to Rule 415 registering the resale from time to time
by Holders thereof of all of the Registrable Securities (or, if registration of
Registrable Securities not held by Notice Holders is not permitted by the rules
and regulations of the SEC, then registering the resale from time to time by
Notice Holders of their Registrable Securities).  Subject to Section 8(a) hereof, the Initial
Shelf Registration Statement shall provide for the registration of such
Registrable Securities for resale by such Holders in accordance with any
reasonable method of distribution elected by the Holders.  In no event shall the Initial Shelf
Registration Statement be filed with the SEC prior to completion of the
offering of the Securities contemplated by the Purchase Agreement.  The Company shall use its commercially
reasonable efforts to (i) if it is not a “well-known seasoned issuer” on the
Filing Deadline Date, cause the Initial Shelf Registration Statement to become
effective under the Securities Act by the date (the “Effectiveness Deadline
Date”) that is one hundred eighty (180) days after the Issue Date and (ii)
keep the Initial Shelf Registration Statement (and any Subsequent Shelf
Registration Statement) continuously effective under the Securities Act until
the earlier of (a) the date that is thirty-five (35) trading days immediately
following the Maturity Date, and (b) the termination of the Effectiveness
Period.  None of the Company, the
Guarantor or any of their respective securityholders (other than Holders of
Registrable Securities) shall have the right to include any securities of the
Company or the Guarantor in any Shelf Registration Statement (other than an
Automatic Shelf Registration Statement) other than Registrable Securities.  At the time the Initial Shelf Registration
Statement becomes effective under the Securities Act, each Holder that became a
Notice Holder on or prior to the 15th day before the date of such effectiveness
shall be named as a selling securityholder in the Initial Shelf Registration
Statement and the related Prospectus in such a manner as to permit such Holder
to deliver such Prospectus to purchasers of Registrable Securities in
accordance with applicable law.

 

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(b)           If,
for any reason, at any time during the Effectiveness Period any Shelf
Registration Statement ceases to be effective under the Securities Act, or
ceases to be usable for the purposes contemplated hereunder, the Company shall
use its commercially reasonable efforts to promptly cause such Shelf
Registration Statement to become effective under the Securities Act (including
obtaining the prompt withdrawal of any order suspending the effectiveness of
such Shelf Registration Statement), and in any event shall, within ten (10)
Business Days of such cessation of effectiveness, (i) amend such Shelf
Registration Statement in a manner reasonably expected to obtain the withdrawal
of any order suspending the effectiveness of such Shelf Registration Statement
or (ii) file an additional Registration Statement (a “Subsequent Shelf
Registration Statement”) for an offering to be made on a delayed or
continuous basis pursuant to Rule 415 registering the resale from time to time
by Holders thereof of all securities that are Registrable Securities as of the
time of such filing (or, if registration of Registrable Securities not held by
Notice Holders is not permitted by the rules and regulations of the SEC, then
registering the resale from time to time by Notice Holders of their securities
that are Registrable Securities as of the time of such filing).  If a Subsequent Shelf Registration Statement
is filed, the Company shall use its commercially reasonable efforts to (A)
cause such Subsequent Shelf Registration Statement to become effective under
the Securities Act as promptly as practicable after such filing, but in no
event later than the Subsequent Shelf Registration Statement Effectiveness
Deadline Date and (B) keep such Subsequent Shelf Registration Statement (or
another Subsequent Shelf Registration Statement) continuously effective until
the end of the Effectiveness Period. 
Subject to Section 8(a) hereof, each such Subsequent Shelf Registration
Statement, if any, shall provide for the registration of such Registrable
Securities for resale by such Holders in accordance with any reasonable method
of distribution elected by the Holders.

(c)           The
Company shall supplement and amend any Shelf Registration Statement if required
by the rules, regulations or instructions applicable to the registration form
used by the Company for such Shelf Registration Statement, if required by the
Securities Act or as reasonably requested by the Initial Purchasers or by the
Trustee on behalf of the Holders of the Registrable Securities covered by such
Shelf Registration Statement.

(d)

(i)            Each
Holder of Registrable Securities agrees that, if such Holder wishes to sell
Registrable Securities pursuant to a Shelf Registration Statement and related
Prospectus, it will do so only in accordance with this Section 2(d) and Section
3(k).  Each Holder of Registrable
Securities wishing to sell Registrable Securities pursuant to a Shelf Registration
Statement and related Prospectus agrees to deliver a completed and executed
Notice and Questionnaire to the Company prior to any attempted or actual
distribution of Registrable Securities under a Shelf Registration
Statement.  If a Holder becomes a Notice
Holder after the 15th day before the date the Initial Shelf Registration
Statement becomes 

 

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effective under the Securities Act, the Company shall, within the later
of (x) twenty (20) Business Days after such date or (y) twenty (20) Business
Days after the expiration of any Suspension Period that either (I) is in effect
when such Holder became a Notice Holder or (II) is put into effect within five
(5) Business Days after the date such Holder became a Notice Holder, use its
commercially reasonable best efforts to

(A)          file
with the SEC a supplement to the related Prospectus (or, if required by law, a
post-effective amendment to the Shelf Registration Statement or a Subsequent
Shelf Registration Statement), and all other document(s), in each case as is
required so that such Notice Holder is named as a selling securityholder in a
Shelf Registration Statement and the related Prospectus in such a manner as to
permit such Notice Holder to deliver a Prospectus to purchasers of the
Registrable Securities in accordance with applicable law; provided,
however, that, if a post-effective
amendment or a Subsequent Shelf Registration Statement is required by the rules
and regulations of the SEC in order to permit resales by such Notice Holder,
the Company shall not be required to file more than one (1) post-effective
amendment or Subsequent Shelf Registration Statement for such purpose in any
ninety (90) day period;

(B)           if,
pursuant to Section 2(d)(i)(A), the Company shall have filed a post-effective
amendment to the Shelf Registration Statement or filed a Subsequent Shelf
Registration Statement, cause such post-effective amendment or Subsequent Shelf
Registration Statement, as the case may be, to become effective under the
Securities Act as promptly as practicable, but in any event by the date (the “Amendment
Effectiveness Deadline Date,” in the case of a post-effective amendment,
and the “Subsequent Shelf Registration Statement Effectiveness Deadline Date,”
in the case of a Subsequent Shelf Registration Statement) that is thirty (30)
days after the date such post-effective amendment or Subsequent Shelf
Registration Statement, as the case may be, is required by this Section 2(d) to
be filed with the SEC;

(C)           provide
such Notice Holder a reasonable number of copies of any documents filed
pursuant to clause (A) above;

(D)          notify
such Notice Holder as promptly as practicable after the effectiveness under the
Securities Act of any post-effective amendment or Subsequent Shelf Registration
Statement filed pursuant to clause (A) above;

(E)           if
such Holder became a Notice Holder during a Suspension Period, or a Suspension
Period is put into effect within five (5) Business Days after the date such
Holder became a Notice Holder, so inform such Notice Holder and shall take the
actions set forth in clauses (A), (B), (C) and (D) above within twenty (20)
Business Days after expiration of such Suspension Period in accordance with
Section 3(k); and

 

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(F)           if,
under applicable law, the Company has more than one option as to the type or
manner of making any such filing, make, to the extent that it reasonably deems
appropriate, the required filing or filings in the manner or of a type that is
reasonably expected to result in the earliest availability of a Prospectus for
effecting resales of Registrable Securities.

(ii)           Notwithstanding
anything contained herein to the contrary, the Company shall be under no
obligation to name any Holder that is not a Notice Holder as a selling
securityholder in any Shelf Registration Statement or related Prospectus; provided, however, that
any Holder that becomes a Notice Holder (regardless of when such Holder became
a Notice Holder) shall be named as a selling securityholder in a Shelf
Registration Statement or related Prospectus in accordance with the
requirements of this Section 2(d) or Section 2(a), as applicable.

(e)           The
parties hereto agree that the Holders of Registrable Securities will suffer
damages, and that it would not be feasible to ascertain the extent of such
damages with precision, if:

(i)            the
Initial Shelf Registration Statement has not been filed with the SEC on or
prior to the Filing Deadline Date;

(ii)           the
Initial Shelf Registration Statement has not become effective under the
Securities Act on or prior to the Effectiveness Deadline Date;

(iii)          either a supplement to a Prospectus, a
post-effective amendment or a Subsequent Shelf Registration Statement is
required to be filed with the SEC and fails to be filed with the SEC within the
prescribed period and in the manner set forth in Section 2(d) (the date such
filing is required to be made being an “Additional Filing Deadline Date”)
or, in the case of a post-effective amendment or a Subsequent Shelf
Registration Statement, such post-effective amendment or Subsequent
Registration Statement does not become effective under the Securities Act by
the Amendment Effectiveness Deadline Date or the Subsequent Shelf Registration
Statement Effectiveness Deadline Date, as the case may be;

(iv)          the Initial Shelf Registration
Statement or any Subsequent Registration Statement is filed with the SEC and
becomes effective under the Securities Act but shall thereafter cease to be
effective (without being succeeded immediately by a new Registration Statement
that is filed and immediately becomes effective under the Securities Act) or
usable for the offer and sale of Registrable Securities in the manner
contemplated by this Agreement for a period of time (including any Suspension
Period) which shall exceed forty five (45) days (or, if applicable, sixty (60)
days) in the aggregate during the prior ninety (90) day period, or ninety (90)
days (or, if applicable, one hundred twenty (120) days) in the aggregate during
the prior three hundred sixty (360) day period; or

 

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(v)           any Registration Statement or
amendment thereto, at the time it becomes effective under the Securities Act,
or any Prospectus relating thereto, at the time it is filed with the SEC or, if
later, at the time the Registration Statement to which such Prospectus relates
becomes effective under the Securities Act, shall fail to name each Notice Holder
as a selling securityholder in such a manner as to permit such Notice Holder to
sell its Registrable Securities pursuant to such Registration Statement and
Prospectus in accordance with applicable law, which Notice Holder was entitled,
pursuant to the terms of this Agreement, to be so named (it being understood
that, without limitation, naming such Notice Holder in a manner that permits
such Notice Holder to sell only a portion of such Notice Holder’s Registrable
Securities referenced in such Notice Holder’s Notice and Questionnaire shall be
deemed to be an “Event” (as defined below) for purposes of this clause (v) with
respect to that portion of Registrable Securities that is not so permitted to
be sold).

Each of the events of a type described in any of the foregoing clauses
(i) through (v) are individually referred to herein as an “Event,” and

(V)           the
Filing Deadline Date, in the case of clause (i) above,

(W)         the
Effectiveness Deadline Date, in the case of clause (ii) above,

(X)          the
Additional Filing Deadline Date, the Amendment Effectiveness Deadline Date or
the Subsequent Shelf Registration Statement Effectiveness Deadline Date, as the
case may be, in the case of clause (iii) above,

(Y)           the
date on which the duration of the ineffectiveness or unusability of the Shelf
Registration Statement exceeds the number of days permitted by clause (iv)
above, in the case of clause (iv) above, and

(Z)           the
date the applicable Registration Statement or amendment thereto shall become
effective under the Securities Act, or the date the applicable Prospectus is
filed with the SEC or, if later, the time the Registration Statement to which
such Prospectus relates becomes effective under the Securities Act, as the case
may be, in the case of clause (v) above,

are each herein referred to as an “Event Date.”  Events shall be deemed to continue until the
following dates with respect to the respective types of Events:

(A)          the
date the Initial Shelf Registration Statement is filed with the SEC, in the
case of an Event of the type described in clause (i) above;

(B)           the
date the Initial Shelf Registration Statement becomes effective under the
Securities Act, in the case of an Event of the type described in clause (ii)
above;

 

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(C)           the
date a supplement to a Prospectus, a post-effective amendment or a Subsequent
Shelf Registration Statement, whichever is required, is filed with the SEC (in
the case of a supplement) or becomes effective under the Securities Act (in the
case of a post-effective amendment or a Subsequent Shelf Registration
Statement), in the case of an Event of the type described in clause (iii)
above;

(D)          the
date the Initial Shelf Registration Statement or the Subsequent Shelf
Registration Statement, as the case may be, becomes effective and usable again,
or the date another Subsequent Shelf Registration Statement is filed with the
SEC pursuant to Section 2(b) and becomes effective, in the case of an Event of
the type described in clause (iv) above; or

(E)           the
date a supplement to the Prospectus is filed with the SEC, or the date a
post-effective amendment to the Registration Statement becomes effective under
the Securities Act, or the date a Subsequent Shelf Registration Statement
becomes effective under the Securities Act, which supplement, post-effective
amendment or Subsequent Shelf Registration Statement, as the case may be, names
as selling securityholders, in such a manner as to permit them to sell their
Registrable Securities pursuant to the Registration Statement and Prospectus
supplement in accordance with applicable law, all Holders entitled as herein
provided to be so named, in the case of an Event of the type described in
clause (v) above.

Accordingly, commencing on (and including) any Event Date and ending on
(but excluding) the next date on which there are no Events that have occurred
and are continuing (an “Additional Interest Accrual Period”), the
Company agrees to pay, as additional interest (“additional interest”)
and not as a penalty, an amount (the “Additional Interest Amount”) at
the rate described below, payable periodically on each Additional Interest
Payment Date to Record Holders, to the extent of, for each such Additional
Interest Payment Date, the unpaid Additional Interest Amount that has accrued
to (but excluding) such Additional Interest Payment Date (or, if the Additional
Interest Accrual Period shall have ended prior to such Additional Interest
Payment Date, the day immediately after the last day of such Additional
Interest Accrual Period); provided, however, that any unpaid Additional Interest Amount that has
accrued with respect to any Security, or portion thereof, called for Redemption
on a Redemption Date, or purchased by the Company pursuant to a Repurchase at
Holder’s Option or Repurchase Upon Fundamental Change on an Option Repurchase Date
or Repurchase Date, as the case may be, that is after the close of business on
the Record Date relating to such Additional Interest Payment Date and before
such Additional Interest Payment Date, shall, in each case, be instead paid, on
such Redemption Date, Option Repurchase Date or Repurchase Date, as the case
may be, to the Holder who submitted such Security or portion thereof for
Redemption, Repurchase at Holder’s Option or Repurchase Upon Fundamental
Change, as the case may be.

 

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The Additional Interest Amount shall accrue at a rate per annum equal
to one quarter of one percent (0.25%) to and including the ninety (90) days
following the Event Date, and thereafter at a rate per annum equal to one half
of one percent (0.50%) of the aggregate principal amount of the Securities of
which such Record Holders were holders of record at the close of business on
the applicable Record Date; provided, however, that:

(I)            no
Additional Interest Amounts shall accrue as to any Security from and after the
earlier of (x) the date such Security is no longer a Registrable Security, (y)
the date, and to the extent, such Security is converted into cash and, if
applicable, shares of Common Stock in accordance with the Indenture and (z) the
expiration of the Effectiveness Period;

(II)           only
those Holders (or their subsequent transferees) failing to be named as selling
securityholders in the manner prescribed in Section 2(e)(v) above shall be
entitled to receive any Additional Interest Amounts that have accrued solely
with respect to an Event of the type described in Section 2(e)(v) above (it
being understood that this clause (II) shall not impair any right of any Holder
to receive Additional Interest Amounts that have accrued with respect to an
Event other than an Event of the type described in Section 2(e)(v) above);

(III)         only
those Holders (or their subsequent transferees) whose delivery of a Notice and
Questionnaire gave rise to the obligation of the Company, pursuant to Section
2(d)(i), to file and, if applicable, make effective under the Securities Act
the supplement, post-effective amendment or Subsequent Shelf Registration
Statement referred to in Section 2(e)(iii) above shall be entitled to receive
any Additional Interest Amounts that have accrued solely with respect to an
Event of the type described in Section 2(e)(iii) above (it being understood
that this clause (III) shall not impair any right of any Holder to receive
Additional Interest Amounts that have accrued with respect to an Event other
than an Event of the type described in Section 2(e)(iii) above); and

(IV)         if a
Security ceases to be outstanding during an Additional Interest Accrual Period
for which an Additional Interest Amount would be payable with respect to such
Security, then the Additional Interest Amount payable hereunder with respect to
such Security shall be prorated on the basis of the number of full days such
Security is outstanding during such Additional Interest Accrual Period.

Except as provided in the final paragraph of this Section 2(e), (i) the
rate of accrual of the Additional Interest Amount with respect to any period
shall not exceed the rate provided for in this Section 2(e) notwithstanding the
occurrence of multiple concurrent Events and (ii) following the cure of all
Events requiring the payment by the Company of Additional Interest Amounts to
the Holders pursuant to this Section, the accrual of Additional Interest
Amounts shall cease (without in any way limiting the effect of any subsequent
Event requiring the payment of Additional Interest Amounts by the
Company).  All installments of additional
interest shall be paid by wire transfer of immediately available 

 

 12
 

 

funds to the account specified by the Notice Holder or, if no such
account is specified, by mailing a check to such Notice Holder’s address shown
in the register of the registrar for the Securities or for the Underlying
Shares, as the case may be; provided, however, that, with respect to the Global Security, the
Company may pay installments of additional interest by wire transfer of
immediately available funds to the account of the Depositary or its nominee, as
contemplated by the Indenture.

In no event shall additional interest accrue or be payable in respect
of shares of Common Stock issued upon conversion of Securities.  In the event that Securities are converted
after an Event Date and during an Additional Interest Accrual Period, the
Company shall increase the Conversion Rate by 3% for each $1,000 principal
amount of Securities so converted; provided, for
the avoidance of doubt, that if an Event Date occurs after a Holder has
converted its Securities into shares of Common Stock, such Holder will not be
entitled to any compensation with respect to such Common Stock.

All of the Company’s obligations set forth in this Section 2(e) that
are outstanding with respect to any Registrable Security at the time such
Registrable Security ceases to be a Registrable Security shall survive until
such time as all such obligations with respect to such security have been
satisfied in full (notwithstanding termination of this Agreement pursuant to
Section 9(n)).

The parties hereto agree that the additional interest provided for in
this Section 2(e) constitutes a reasonable estimate of the damages in respect
of the Securities that may be incurred by Holders of the Securities by reason
of an Event relating to such Securities, including, without limitation, the
failure of a Shelf Registration Statement to be filed, become effective under
the Securities Act, amended or replaced to include the names of all Notice
Holders or available for effecting resales of Registrable Securities in
accordance with the provisions hereof.

If any Additional Interest Amounts are not paid when due, then, to the
extent permitted by law, such overdue Additional Interest Amounts, if any,
shall bear interest, compounded semi-annually, until paid at the rate of
interest payable with respect to overdue amounts on the Securities pursuant to
the terms of the Indenture.

(f)            The
Trustee shall be entitled, on behalf of Holders, to seek any available remedy
for the enforcement of this Agreement, including for the payment of any
Additional Interest Amount.

3.             Registration
Procedures.  In connection with the
registration obligations of the Company under Section 2 hereof, the Company
shall:

(a)           Prepare
and file with the SEC a Shelf Registration Statement or Shelf Registration
Statements in the manner provided in this Agreement and use its commercially
reasonable efforts to cause each such Shelf Registration Statement to become
effective under the Securities Act and remain effective under the Securities
Act as provided herein; provided,
that, before filing any Shelf Registration Statement or

 

 13
 

 

Prospectus or any amendments or supplements thereto with the SEC, the
Company shall furnish to the Initial Purchasers and counsel for the Holders and
for the Initial Purchasers (or, if applicable, separate counsel for the
Holders) copies of all such documents proposed to be filed and reflect in each
such document when so filed with the SEC such comments as the Initial
Purchasers or such counsel reasonably shall propose within three (3) Business
Days of the delivery of such copies to the Initial Purchasers and such
counsel.  Each Registration Statement
that is or is required by this Agreement to be filed with the SEC shall be
filed on Form S-3 if the Company is then eligible to use Form S-3 for the
purposes contemplated by this Agreement, or, if the Company is not then so
eligible to use Form S-3, shall be on Form S-1 or another appropriate form that
is then available to the Company for the purposes contemplated by this
Agreement.  Each such Registration
Statement that is filed on Form S-3 shall constitute an Automatic Shelf
Registration Statement if the Company is then eligible to file an Automatic
Shelf Registration Statement on Form S-3 for the purposes contemplated by this
Agreement.  If, at the time any
Registration Statement is filed with the SEC, the Company is eligible, pursuant
to Rule 430B(b), to omit, from the prospectus that is filed as part of such Registration
Statement, the identities of selling securityholders and amounts of securities
to be registered on their behalf, then the Company shall prepare and file such
Registration Statement in a manner as to permit such omission and to allow for
the subsequent filing of such information in a prospectus pursuant to Rule
424(b) in the manner contemplated by Rule 430B(d).

(b)           Prepare
and file with the SEC such amendments and post-effective amendments to each
Shelf Registration Statement as may be necessary to keep such Shelf
Registration Statement or Subsequent Shelf Registration Statement continuously
effective until the expiration of the Effectiveness Period; cause the related
Prospectus to be supplemented by any required Prospectus supplement and, as so
supplemented, to be filed with the SEC pursuant to Rule 424; and comply with
the provisions of the Securities Act applicable to it with respect to the
disposition of all securities covered by each Shelf Registration Statement
during the Effectiveness Period in accordance with the intended methods of
disposition by the sellers thereof set forth in such Shelf Registration
Statement as so amended or such Prospectus as so supplemented.

(c)           If
the third anniversary of the initial effective date of any Registration
Statement (within the meaning of Rule 415(a)(5) under the Act) shall occur at
any time during the Effectiveness Period, file with the SEC, prior to such
third anniversary, a new Registration Statement covering the Registrable
Securities, in the manner contemplated by, and in compliance with, Rule
415(a)(6), and use its commercially reasonable efforts to cause such new
Registration Statement to become effective under the Act as soon as
practicable, but in any event within 180 days after such third anniversary.  Each such new Registration Statement, if any,
shall be deemed, for purposes of this Agreement, to be a Subsequent Shelf
Registration Statement.

(d)           If,
at any time during the Effectiveness Period, any Registration Statement shall
cease to comply with the requirements of the Securities Act with respect to
eligibility for the use of the form on which such Registration Statement was
filed with the 

 14
 

 

SEC (or if such Registration Statement constituted an Automatic Shelf
Registration Statement at the time it was filed with the SEC and shall
thereafter cease to constitute an Automatic Shelf Registration Statement, or if
the Company shall have received, from the SEC, a notice, pursuant to Rule
401(g)(2) under the Securities Act, of objection to the use of the form on
which such Registration Statement was filed with the SEC), (i) promptly give
notice to the Notice Holders and counsel for the Holders and for the Initial
Purchasers (or, if applicable, separate counsel for the Holders) and to the
Initial Purchasers and (ii) promptly file with the SEC a new Registration
Statement under the Securities Act, or a post-effective amendment to such
Registration Statement, to effect compliance with the Securities Act.  The Company shall use its commercially
reasonable efforts to cause such new Registration Statement or post-effective
amendment to become effective under the Securities Act as soon as practicable
and shall promptly give notice of such effectiveness to the Notice Holders and
counsel for the Holders and for the Initial Purchasers (or, if applicable,
separate counsel for the Holders) and to the Initial Purchasers.  Each such new Registration Statement, if any,
shall be deemed, for purposes of this Agreement, to be a Subsequent Shelf
Registration Statement.

(e)           As
promptly as practicable, give notice to the Notice Holders, the Initial
Purchasers and counsel for the Holders and for the Initial Purchasers (or, if
applicable, separate counsel for the Holders):

(i)            when
any Prospectus, Prospectus supplement, Shelf Registration Statement or
post-effective amendment to a Shelf Registration Statement has been filed with
the SEC and, with respect to a Shelf Registration Statement or any
post-effective amendment, when the same has become effective under the
Securities Act,

(ii)           of
any request, following the effectiveness of a Shelf Registration Statement
under the Securities Act, by the SEC or any other governmental authority for
amendments or supplements to such Shelf Registration Statement or the related
Prospectus or for additional information,

(iii)          of
the issuance by the SEC or any other governmental authority of any stop order
suspending the effectiveness of any Shelf Registration Statement or the
initiation or threatening of any proceedings for that purpose,

(iv)          of
the receipt by the Company or its legal counsel of any notification with
respect to the suspension of the qualification or exemption from qualification
of any of the Registrable Securities for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose,

(v)           after
the effective date of any Shelf Registration Statement filed with the SEC
pursuant to this Agreement, of the occurrence of (but not the nature of or
details concerning) a Material Event, and

 

 15
 

 

(vi)          of
the determination by the Company that a post-effective amendment to a Shelf
Registration Statement or a Subsequent Shelf Registration Statement will be
filed with the SEC, which notice may, at the discretion of the Company (or as
required pursuant to Section 3(k)), state that it constitutes a Suspension
Notice, in which event the provisions of Section 3(k) shall apply.

(f)            Use
its commercially reasonable efforts to (i) prevent the issuance of, and, if
issued, to obtain the withdrawal of, any order suspending the effectiveness of
a Shelf Registration Statement and (ii) obtain the lifting of any suspension of
the qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction in which they have been qualified for
sale, in either case at the earliest possible moment, and provide prompt notice
to each Notice Holder and the Initial Purchasers, and counsel for the Holders
and for the Initial Purchasers (or, if applicable, separate counsel for the
Holders), of the withdrawal or lifting of any such order or suspension.

(g)           If
requested by the Initial Purchasers or any Notice Holder, as promptly as
practicable incorporate in a Prospectus supplement or a post-effective
amendment to a Shelf Registration Statement such information as the Initial
Purchasers, such Notice Holder or counsel for the Holders and for the Initial
Purchasers (or, if applicable, separate counsel for the Holders) shall
determine to be required to be included therein by applicable law and make any
required filings of such Prospectus supplement or such post-effective
amendment; provided, however, that the Company shall not be
required to take any actions under this Section 3(g) that, in the written
opinion of counsel for the Company, are not in compliance with applicable law.

(h)           As
promptly as practicable, furnish to each Notice Holder and, upon request,
counsel for the Holders and for the Initial Purchasers (or, if applicable,
separate counsel for the Holders) and the Initial Purchasers, without charge,
at least one (1) conformed copy of each Shelf Registration Statement and each
amendment thereto, including financial statements but excluding schedules, all
documents incorporated or deemed to be incorporated therein by reference and
all exhibits (unless requested in writing to the Company by such Notice Holder,
such counsel or the Initial Purchasers).

(i)            During
the Effectiveness Period, deliver to each Notice Holder, counsel for the
Holders and for the Initial Purchasers (or, if applicable, separate counsel for
the Holders) and the Initial Purchasers, in connection with any sale of
Registrable Securities pursuant to a Shelf Registration Statement, without
charge, as many copies of the Prospectus or Prospectuses relating to such
Registrable Securities (including each preliminary prospectus) and any
amendment or supplement thereto as such Notice Holder or the Initial Purchasers
may reasonably request; and the Company hereby consents (except during such
periods that a Suspension Notice is outstanding and has not been revoked) to
the use of such Prospectus and each amendment or supplement thereto by each
Notice Holder, in connection with any offering and sale of the Registrable
Securities covered by such Prospectus or any amendment or supplement thereto in
the manner set forth therein.

 

 16

 

(j)            Prior
to any public offering of the Registrable Securities pursuant to a Shelf
Registration Statement, use its commercially reasonable efforts to register or
qualify or cooperate with the Notice Holders in connection with the
registration or qualification (or exemption from such registration or
qualification) of such Registrable Securities for offer and sale under the
securities or Blue Sky laws of such jurisdictions within the United States as
any Notice Holder reasonably requests in writing (which request may be included
in the Notice and Questionnaire); use its commercially reasonable efforts to
keep each such registration or qualification (or exemption therefrom) effective
during the Effectiveness Period in connection with such Notice Holder’s offer
and sale of Registrable Securities pursuant to such registration or
qualification (or exemption therefrom) and do any and all other acts or things
reasonably necessary or advisable to enable the disposition in such
jurisdictions of such Registrable Securities in the manner set forth in the
relevant Shelf Registration Statement and the related Prospectus; provided, however,
that the Company will not be required to qualify generally to do business in
any jurisdiction where it is not then so qualified.

(k)           Upon:
(A) the occurrence or existence of any pending corporate development (a “Material
Event”) that, in the reasonable discretion of the Company, makes it
appropriate to suspend the availability of any Shelf Registration Statement and
the related Prospectus; (B) the issuance by the SEC of a stop order suspending
the effectiveness of any Shelf Registration Statement or the initiation of
proceedings with respect to any Shelf Registration Statement under Section 8(d)
or 8(e) of the Securities Act; or (C) the occurrence of any event or the
existence of any fact as a result of which any Shelf Registration Statement
shall contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading, or any Prospectus shall contain any untrue statement of
a material fact or omit to state any material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were
made, not misleading,

(i)            in
the case of clause (A) or (C) above, subject to the next sentence, as promptly
as practicable, prepare and file, if necessary pursuant to applicable law, a
post-effective amendment to such Shelf Registration Statement or a supplement
to such Prospectus or any document incorporated therein by reference or file
any other required document that would be incorporated by reference into such
Shelf Registration Statement and Prospectus so that such Shelf Registration
Statement does not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein not misleading, and so that such Prospectus does not contain
any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, as thereafter
delivered to the purchasers of the Registrable Securities being sold
thereunder, and, in the case of a post-effective amendment to a Shelf
Registration Statement, subject to the next sentence, use its commercially
reasonable efforts to cause it to become effective under the Securities Act as
promptly as practicable, and

 

 17
 

 

(ii)           give
notice to the Notice Holders and counsel for the Holders and for the Initial
Purchasers (or, if applicable, separate counsel for the Holders) and to the
Initial Purchasers that the availability of the Shelf Registration Statement is
suspended (a “Suspension Notice”) (and, upon receipt of any Suspension
Notice, each Notice Holder agrees not to sell any Registrable Securities
pursuant to such Shelf Registration Statement until such Notice Holder’s
receipt of copies of the supplemented or amended Prospectus provided for in
clause (i) above or until such Notice Holder is advised in writing by the
Company that the Prospectus may be used).

The Company will use its commercially reasonable
efforts to ensure that the use of the Prospectus may be resumed (x) in the case
of clause (A) above, as soon as, in the reasonable discretion of the Company,
such suspension is no longer appropriate, (y) in the case of clause (B) above,
as promptly as is practicable, and (z) in the case of clause (C) above, as soon
as, in the reasonable judgment of the Company, the Shelf Registration Statement
does not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading and the Prospectus does not contain any untrue statement
of a material fact or omit to state any material fact necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading.  The period
during which the availability of the Shelf Registration Statement and any
Prospectus may be suspended (the “Suspension Period”) without the
Company incurring any obligation to pay additional interest pursuant to Section
2(e) shall not exceed forty five (45) days in the aggregate in any ninety (90)
day period or ninety (90) days in the aggregate in any three hundred sixty
(360) day period; provided that, if the disclosure
of information regarding any event or the existence of any fact referred to in
clause (C) above relates to a proposed or pending material business
transaction, the disclosure of which the Board (as defined in the Indenture)
determines in good faith would be reasonably likely to impede the ability of
the Company to consummate such transaction or would otherwise be seriously
detrimental to the Company and its subsidiaries, taken as a whole, the Company
may extend the Suspension Period from forty five (45) days to sixty (60) days
in any ninety (90) day period or from ninety (90) days to one hundred twenty
(120) days in any three hundred sixty (360) day period.  The Effectiveness Period shall be extended by
the number of days from and including the date of the giving of the Suspension
Notice to and including the date on which the Notice Holder received copies of
the supplemented or amended Prospectus provided in clause (i) above, or the
date on which it is advised in writing by the Company that the Prospectus may
be used and has received copies of any additional or supplemental filings that
are incorporated or deemed incorporated by reference in such Prospectus.

(l)            Make
available for inspection during normal business hours by representatives for
the Notice Holders and any underwriters participating in any disposition
pursuant to any Shelf Registration Statement and any broker-dealers, attorneys
and accountants retained by such Notice Holders or any such underwriters, all
relevant financial and other records and pertinent corporate documents and
properties of 

 

 18
 

 

the Company and its subsidiaries, and cause the appropriate officers,
directors and employees of the Company and its subsidiaries to make available
for inspection during normal business hours all relevant information reasonably
requested by such representatives for the Notice Holders, or any such
underwriters, broker-dealers, attorneys or accountants in connection with such
disposition, in each case as is customary for similar “due diligence”
examinations; provided, however, that such persons shall, at the
Company’s request, first agree in writing with the Company that any information
that is reasonably and in good faith designated by the Company in writing as
confidential at the time of delivery of such information shall be kept
confidential by such persons and shall be used solely for the purposes of
exercising rights under this Agreement, unless (i) disclosure of such
information is required by court or administrative order or is necessary to
respond to inquiries of governmental or regulatory authorities, (ii) disclosure
of such information is required by law (including any disclosure requirements
pursuant to federal securities laws in connection with the filing of any Shelf
Registration Statement or the use of any Prospectus referred to in this
Agreement) or necessary to defend or prosecute a claim brought against or by
any such persons (e.g., to
establish a “due diligence” defense), (iii) such information becomes generally
available to the public other than as a result of a disclosure or failure to
safeguard by any such person or (iv) such information becomes available to any
such person from a source other than the Company or its affiliates and such
source is not bound by a confidentiality agreement or is not otherwise under a
duty of trust to the Company or its affiliates; provided further, that the foregoing inspection and
information gathering shall, to the greatest extent possible, be coordinated on
behalf of all the Notice Holders and the other parties entitled thereto by the
counsel, referred to in Section 5, for the Holders in connection with Shelf
Registration Statements.

(m)          Comply
with all applicable rules and regulations of the SEC; and make generally
available to its securityholders earnings statements (which need not be
audited) satisfying the provisions of Section 11(a) of the Securities Act and
Rule 158 thereunder (or any similar rule promulgated under the Securities Act),
which statements shall cover a period of twelve (12) months commencing on the
first day of the first fiscal quarter of the Company commencing after the
effective date of each Shelf Registration Statement (within the meaning of Rule
158(c) under the Securities Act), and which statements shall be so made
generally available to the Company’s securityholders as follows: (i) with
respect to an earnings statement which will be contained in one report on Form
10-K (or any other form as may then be available for such purpose), such
earnings statement shall be made so generally available no later than the due
date by which the Company is required, pursuant to the Exchange Act, to file
such report with the SEC; and (ii) with respect to an earnings statement which
will be contained in any combination of reports on Form 10-K or Form 10-Q (or
any other form(s) as may then be available for such purpose), such earnings
statement shall be made so generally available no later than the due date by
which the Company is required, pursuant to the Exchange Act, to file the last
of such reports which together constitute such earnings statement.

(n)           Cooperate
with each Notice Holder to facilitate the timely preparation and delivery of
certificates representing Registrable Securities sold pursuant to a Shelf
Registration Statement, which certificates shall not bear any restrictive
legends, and 

 

 19
 

 

cause such Registrable Securities to be registered in such names as such
Notice Holder may request in writing at least two (2) Business Days prior to
any sale of such Registrable Securities.

(o)           Provide
a CUSIP number for all Registrable Securities covered by a Shelf Registration
Statement not later than the effective date of the Initial Shelf Registration
Statement and provide the Trustee and the transfer agent for the Common Stock
with certificates for the Registrable Securities that are in a form eligible
for deposit with The Depository Trust Company.

(p)           Cooperate
and assist in any filings required to be made with the National Association of
Securities Dealers, Inc.

(q)           Upon
the filing of the Initial Shelf Registration Statement, and upon the
effectiveness under the Securities Act of the Initial Shelf Registration
Statement, announce the same, in each case by release through a reputable
national newswire service.

(r)            Subject
to Section 8(a) hereof, in connection with an underwritten offering of
Registrable Securities, take all actions and enter into such customary agreements
(including, if requested, an underwriting agreement in customary form) as are
necessary, or reasonably requested by the Holders of a majority of the
Registrable Securities being sold, in order to expedite or facilitate
disposition of such Registrable Securities; and in such connection, whether or
not an underwriting agreement is entered into:

(i)            the
Company shall make such representations and warranties to the Holders of such
Registrable Securities and the underwriters, if any, in form, substance and scope
as would be customarily made by the Company to underwriters in similar
offerings of securities;

(ii)           the
Company shall obtain opinions of counsel of the Company and updates thereof
(which counsel and opinions (in form, scope and substance) shall be reasonably
satisfactory to the Managing Underwriters, if any, and to the counsel to the
Holders of the Registrable Securities being sold) addressed to each selling
Holder and the underwriters, if any, covering the matters that would be
customarily covered in opinions requested in sales of securities or
underwritten offerings;

(iii)          the
Company shall obtain “comfort letters” and updates thereof from the Company’s
independent certified public accountants (and, if necessary, any other
independent certified public accountants of any subsidiary of the Company or of
any business acquired by the Company for which financial statements are, or are
required to be, included in any Shelf Registration Statement) addressed to the
underwriters, if any, and the selling Holders of Registrable Securities (to the
extent consistent with Statement on Auditing Standards No. 72 of the American
Institute of Certified Public Accounts), such 

 

 20
 

 

letters to be in customary form and covering matters of the type that
would customarily be covered in “comfort letters” to underwriters in connection
with similar underwritten offerings;

(iv)          the
Company shall, if an underwriting agreement is entered into, cause any such
underwriting agreement to contain indemnification provisions and procedures substantially
equivalent to the indemnification provisions and procedures set forth in
Section 6 hereof with respect to the underwriters and all other parties to be
indemnified pursuant to said Section; and

(v)           the
Company shall deliver such documents and certificates as may be reasonably
requested and as are customarily delivered in similar offerings to the holders
of a majority of the Registrable Securities being sold and to the Managing
Underwriters, if any;

the above to be done at (x) the effectiveness of any
Shelf Registration Statement (and each post-effective amendment thereto) and
(y) each closing under any underwriting or similar agreement as and to the
extent required thereunder.

(s)           Cause
the Underlying Shares to be listed on The New York Stock Exchange.

(t)            In
the event that any broker-dealer registered under the Exchange Act shall
underwrite any Registrable Securities or participate as a member of an
underwriting syndicate or selling group or “participate in a public offering”
(within the meaning of the Conduct Rules (the “NASD Rules”) of the
National Association of Securities Dealers, Inc.) thereof, whether as a Holder
of such Registrable Securities or as an underwriter, a placement or sales agent
or a broker or dealer in respect thereof, or otherwise, the Company will assist
such broker-dealer in complying with the requirements of such NASD Rules,
including, without limitation, by: (i) if such NASD Rules, including NASD Rule
2720, shall so require, engaging a “qualified independent underwriter” (as
defined in NASD Rule 2720) to participate in the preparation of the Shelf
Registration Statement relating to such Registrable Securities, to exercise
usual standards of due diligence in respect thereof and, if any portion of the
offering contemplated by such Shelf Registration Statement is an underwritten
offering or is made through a placement or sales agent, to recommend the yield
or price, as the case may be, of such Registrable Securities; (ii) indemnifying
any such qualified independent underwriter to the extent of the indemnification
of underwriters provided in Section 6 hereof; and (iii) providing such
information to such broker-dealer as may be required in order for such
broker-dealer to comply with the requirements of the NASD Rules.

4.             Holder’s Obligations.  Each Holder agrees, by acquisition of the
Registrable Securities, that no Holder of Registrable Securities shall be
entitled to sell any of such Registrable Securities pursuant to a Shelf
Registration Statement or to receive a Prospectus relating thereto, unless such
Holder has furnished the Company with a Notice and Questionnaire as required
pursuant to Section 2(d) hereof (including the information required to be
included in 

 

 21
 

 

such Notice and
Questionnaire) and the information set forth in the next sentence. Each Notice
Holder agrees promptly to furnish to the Company all information required to be
disclosed in order to make the information previously furnished to the Company
by such Notice Holder not misleading and any other information regarding such
Notice Holder and the distribution of such Registrable Securities as the
Company may from time to time reasonably request. Any sale of any Registrable
Securities by any Holder shall constitute a representation and warranty by such
Holder that the Holder Information of such Holder furnished in writing by or on
behalf of such Holder to the Company does not include an untrue statement of a
material fact or omit to state a material fact necessary in order to make the
statements in such Holder Information, in the light of the circumstances under
which they were made, not misleading.

5.             Registration
Expenses.  The Company and the
Guarantor shall bear all fees and expenses incurred in connection with the
performance by the Company of its obligations under Section 2 and Section 3 of
this Agreement whether or not any of the Shelf Registration Statements are
filed or declared effective under the Securities Act.  Such fees and expenses (“Registration
Expenses”) shall include, without limitation, (i) all registration and
filing fees and expenses (including, without limitation, fees and expenses (x)
with respect to filings required to be made with the National Association of
Securities Dealers, Inc. and (y) of compliance with federal securities laws and
state securities or Blue Sky laws (including, without limitation, reasonable
fees and disbursements of counsel for the Holders in connection with Blue Sky
qualifications of the Registrable Securities under the laws of such
jurisdictions as the Notice Holders of a majority of the Registrable Securities
being sold pursuant to a Shelf Registration Statement may designate), (ii) all
printing expenses (including, without limitation, expenses of printing
certificates for Registrable Securities in a form eligible for deposit with The
Depository Trust Company and printing Prospectuses), (iii) all duplication and
mailing expenses relating to copies of any Shelf Registration Statement or
Prospectus delivered to any Holders hereunder, (iv) all fees and disbursements
of counsel for the Company and the fees and disbursements of one counsel for
the Holders in connection with the Shelf Registration Statement, (v) all fees
and disbursements of the Trustee and its counsel and of the registrar and
transfer agent for the Common Stock and (vi) Securities Act liability insurance
obtained by the Company in its sole discretion. 
If the Company and the Guarantor shall, pursuant to Rule 456(b), defer
payment of any registration fees due under the Securities Act with respect to
any Registration Statement, the Company and the Guarantor agree that they shall
pay the fees applicable to such Registration Statement within the time required
by Rule 456(b)(1)(i) (without reliance on the proviso to Rule 456(b)(1)(i)) and
in compliance with Rule 456(b) and Rule 457(r).

6.             Indemnification,
Contribution.

(a)           The
Company and the Guarantor jointly and severally agree to indemnify, defend and
hold harmless each Initial Purchaser, each Holder, each person (a “Controlling
Person”), if any, who controls any Initial Purchaser or Holder within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act
and the respective officers, directors, partners, employees, representatives
and agents of any Initial Purchaser, the Holders or any Controlling Person
(each, an “Indemnified Party”), from and against any loss, damage,
expense, liability, claim or any actions in respect thereof (including the
reasonable cost of investigation) which such Indemnified Party 

 

 22
 

 

may incur or become subject to under the Securities Act, the Exchange
Act or otherwise, insofar as such loss, damage, expense, liability, claim or
action arises out of or is based upon any untrue statement or alleged untrue
statement of a material fact contained in any Shelf Registration Statement or
Prospectus, including any document incorporated by reference therein, or in any
amendment or supplement thereto or in any preliminary prospectus, or arises out
of or is based upon any omission or alleged omission to state a material fact
required to be stated in any Shelf Registration Statement or in any amendment
or supplement thereto or necessary to make the statements therein not
misleading, or arises out of or is based upon any omission or alleged omission
to state a material fact necessary in order to make the statements made in any
Prospectus or in any amendment or supplement thereto or in any preliminary
prospectus, in the light of the circumstances under which such statements were
made, not misleading, and the Company and the Guarantor shall reimburse, as
incurred, the Indemnified Parties for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss,
damage, expense, liability, claim or action in respect thereof; provided, however,
that neither the Company nor the Guarantor shall be required to provide any
indemnification pursuant to this Section 6(a) in any such case insofar as any
such loss, damage, expense, liability, claim or action arises out of or is
based upon any untrue statement or omission or alleged untrue statement or
omission of a material fact contained in, or omitted from, and in conformity
with information furnished in writing by or on behalf of an Initial Purchaser
or a Holder to the Company expressly for use in, any Shelf Registration
Statement or any Prospectus; provided
further, however, that
this indemnity agreement will be in addition to any liability which the Company
or the Guarantor may otherwise have to such Indemnified Party.

(b)           Each
Holder, severally and not jointly, agrees to indemnify, defend and hold
harmless the Company and the Guarantor, its directors, officers, employees and
any person who controls the Company or the Guarantor within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a “Company
Indemnified Party”) from and against any loss, damage, expense, liability,
claim or any actions in respect thereof (including the reasonable cost of
investigation) which such Company Indemnified Party may incur or become subject
to under the Securities Act, the Exchange Act or otherwise, insofar as such
loss, damage, expense, liability, claim or action arises out of or is based
upon any untrue statement or alleged untrue statement of a material fact
contained in, and in conformity with information (the “Holder Information”)
furnished in writing by or on behalf of such Holder to the Company expressly
for use in, any Shelf Registration Statement or Prospectus, or arises out of or
is based upon any omission or alleged omission to state a material fact in
connection with such Holder Information, which material fact was not contained
in such Holder Information, and which material fact was either required to be
stated in any Shelf Registration Statement or Prospectus or necessary to make
such Holder Information not misleading; and, subject to the limitation set
forth in the immediately preceding clause, each Holder shall reimburse, as
incurred, the Company and the Guarantor for any legal or other expenses
reasonably incurred by the Company, the Guarantor or any such controlling
person in connection with investigating or defending any loss, damage, expense,
liability, claim or action in respect thereof. 
This indemnity agreement will be in addition to any liability which such
Holder 

 

 23
 

 

may otherwise have to the Company, the Guarantor or any of its
controlling persons.  In no event shall
the liability of any selling Holder of Registrable Securities hereunder be
greater in amount than the dollar amount of the proceeds received by such
Holder upon the sale, pursuant to the Shelf Registration Statement, of the
Registrable Securities giving rise to such indemnification obligation.

(c)           If
any action, suit or proceeding (each, a “Proceeding”) is brought against
any person in respect of which indemnity may be sought pursuant to either
Section 6(a) or Section 6(b), such person (the “Indemnified Party”)
shall promptly notify the person against whom such indemnity may be sought (the
“Indemnifying Party”) in writing of the institution of such Proceeding and
the Indemnifying Party shall assume the defense of such Proceeding; provided, however,
that the omission to so notify such Indemnifying Party shall not relieve such
Indemnifying Party from any liability which it may have to such Indemnified
Party or otherwise.  Such Indemnified
Party shall have the right to employ its own counsel in any such case, but the
fees and expenses of such counsel shall be at the expense of such Indemnified
Party unless the employment of such counsel shall have been authorized in
writing by such Indemnifying Party in connection with the defense of such
Proceeding or such Indemnifying Party shall not have employed counsel to have
charge of the defense of such Proceeding within thirty (30) days of the receipt
of notice thereof or such Indemnified Party shall have reasonably concluded
upon the written advice of counsel that there may be one or more defenses
available to it that are different from, additional to or in conflict with
those available to such Indemnifying Party (in which case such Indemnifying
Party shall not have the right to direct that portion of the defense of such
Proceeding on behalf of the Indemnified Party, but such Indemnifying Party may
employ counsel and participate in the defense thereof but the fees and expenses
of such counsel shall be at the expense of such Indemnifying Party), in any of
which events such reasonable fees and expenses shall be borne by such
Indemnifying Party and paid as incurred (it being understood, however, that
such Indemnifying Party shall not be liable for the expenses of more than one
separate counsel in any one Proceeding or series of related Proceedings
together with reasonably necessary local counsel representing the Indemnified
Parties who are parties to such action). 
An Indemnifying Party shall not be liable for any settlement of such
Proceeding effected without the written consent of such Indemnifying Party, but
if settled with the written consent of such Indemnifying Party, such
Indemnifying Party agrees to indemnify and hold harmless an Indemnified Party
from and against any loss or liability by reason of such settlement.  Notwithstanding the foregoing sentence, if at
any time an Indemnified Party shall have requested an Indemnifying Party to
reimburse such Indemnified Party for fees and expenses of counsel as
contemplated by the second sentence of this paragraph, then such Indemnifying
Party agrees that it shall be liable for any settlement of any Proceeding
effected without its written consent if (i) such settlement is entered into
more than sixty (60) Business Days after receipt by such Indemnifying Party of
the aforesaid request, (ii) such Indemnifying Party shall not have fully
reimbursed such Indemnified Party in accordance with such request prior to the
date of such settlement and (iii) such Indemnified Party shall have given such
Indemnifying Party at least thirty (30) days’ prior notice of its intention to
settle.  No Indemnifying Party shall,
without the prior written consent of any Indemnified Party, effect any
settlement of any pending or 

 

 24
 

 

threatened Proceeding in respect of which such Indemnified Party is or
could have been a party and indemnity could have been sought hereunder by such
Indemnified Party, unless such settlement includes an unconditional release of
such Indemnified Party from all liability on claims that are the subject matter
of such Proceeding and does not include an admission of fault or culpability or
a failure to act by or on behalf of such Indemnified Party.

(d)           If
the indemnification provided for in this Section 6 is unavailable to an
Indemnified Party under Section 6(a) or Section 6(b), or insufficient to hold
such Indemnified Party harmless, in respect of any losses, damages, expenses,
liabilities, claims or actions referred to therein, then each applicable
Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result
of such losses, damages, expenses, liabilities, claims or actions (i) in such
proportion as is appropriate to reflect the relative benefits received by the
Company and the Guarantor, on the one hand, and by the Holders or the Initial
Purchasers, on the other hand, from the offering of the Registrable Securities
or (ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault
of the Company and the Guarantor, on the one hand, and of the Holders or the
Initial Purchasers, on the other hand, in connection with the statements or
omissions which resulted in such losses, damages, expenses, liabilities, claims
or actions, as well as any other relevant equitable considerations.  The relative fault of the Company and the
Guarantor, on the one hand, and of the Holders or the Initial Purchasers, on
the other hand, shall be determined by reference to, among other things,
whether the untrue statement or alleged untrue statement of a material fact or omission
or alleged omission relates to information supplied by the Company or the
Guarantor or by the Holders or the Initial Purchasers and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.  The amount
paid or payable by a party as a result of the losses, damages, expenses,
liabilities, claims and actions referred to above shall be deemed to include
any reasonable legal or other fees or expenses reasonably incurred by such
party in connection with investigating or defending any Proceeding.

(e)           The
Company, the Guarantor, the Holders and the Initial Purchasers agree that it
would not be just and equitable if contribution pursuant to this Section 6 were
determined by pro rata allocation or by any other method of allocation which
does not take account of the equitable considerations referred to in Section
6(d) above.  Notwithstanding the
provisions of this Section 6, no Holder shall be required to contribute any
amount in excess of the amount by which the total price at which the
Registrable Securities giving rise to such contribution obligation and sold by
such Holder were offered to the public exceeds the amount of any damages which
it has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission.  No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.  The
Holders’ respective obligations to contribute pursuant to this Section 6 are
several in proportion to the 

 

 25
 

 

respective amount of Registrable Securities they have sold pursuant to
a Shelf Registration Statement, and not joint. 
The remedies provided for in this Section 6 are not exclusive and shall
not limit any rights or remedies which may otherwise be available to any
indemnified party at law or in equity.

(f)            The
indemnity and contribution provisions contained in this Section 6 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 or
the Initial Purchasers or any person controlling any Holder or Initial Purchaser,
or the Company, or the Company’s officers or directors or any person
controlling the Company, or the Guarantor, and (iii) the sale of any
Registrable Security by any Holder.

7.             Information
Requirements.

(a)           The
Company covenants that, if at any time before the end of the Effectiveness
Period it is not subject to the reporting requirements of the Exchange Act, it
will cooperate with any Holder of Registrable Securities and take such further
action as any Holder of Registrable Securities may reasonably request in
writing (including, without limitation, making such representations as any such
Holder may reasonably request), all to the extent required from time to time to
enable such Holder to sell Registrable Securities without registration under
the Securities Act within the limitations of the exemptions provided by Rule
144, Rule 144A, Regulation S and Regulation D under the Securities Act and
customarily taken in connection with sales pursuant to such exemptions.  Upon the written request of any Holder, the
Company shall deliver to such Holder a written statement as to whether the
Company has complied with the reporting requirements of the Exchange Act,
unless such a statement has been included in the Company’s most recent report
filed with the SEC pursuant to Section 13 or Section 15(d) of Exchange Act.

(b)           The
Company shall file the reports required to be filed by it under the Exchange
Act and shall comply with all other requirements set forth in the instructions
to Form S-3 in order to allow the Company to be eligible to file registration
statements on Form S-3.  The Company
shall use its best efforts to remain eligible, pursuant to Rule 430B(b), to
omit, from the prospectus that is filed as part of a Registration Statement,
the identities of selling securityholders and amounts of securities to be
registered on their behalf.

8.             Underwritten
Registrations.

(a)           In
no event will the method of distribution of Registrable Securities take the
form of an underwritten offering without the prior written consent of the
Company.

(b)           If
any of the Registrable Securities covered by the Shelf Registration Statement
are to be offered and sold in an underwritten offering, the investment banker
or investment bankers and manager or managers that will administer the offering
(“Managing Underwriters”) shall be selected by the holders of a majority
of such Registrable Securities to be included in such offering.

 

 26
 

 

(c)           No
person may participate in any underwritten registration hereunder unless such
person (i) agrees to sell such person’s Registrable Securities on the basis
reasonably provided in any underwriting arrangements approved by the persons
entitled hereunder to approve such arrangements and (ii) completes and executes
all questionnaires, powers of attorney, indemnities, underwriting agreements
and other documents reasonably required under the terms of such underwriting
arrangements.

9.             Miscellaneous.

(a)           Remedies.  The Company and the Guarantor acknowledge and
agree that any failure by the Company or the Guarantor to comply with its
obligations under this Agreement may result in material irreparable injury to
the Initial Purchasers and the Holders for which there is no adequate remedy at
law, that it will not be possible to measure damages for such injuries
precisely and that, in the event of any such failure, any Initial Purchaser or
Holder may obtain such relief as may be required to specifically enforce the
Company’s or the Guarantor’s obligations under this Agreement.  The Company and the Guarantor further agree
to waive the defense in any action for specific performance that a remedy at
law would be adequate.  Notwithstanding
the foregoing two sentences, this Section 9(a) shall not apply to the subject
matter referred to in and contemplated by Section 2(e).

(b)           No
Conflicting Agreements.  Neither the
Company nor the Guarantor is, as of the date hereof, a party to, nor shall it,
on or after the date of this Agreement, enter into, any agreement with respect
to the Company’s securities that conflicts with the rights granted to the
Holders in this Agreement.  The Company
and the Guarantor represent and warrant that the rights granted to the Holders
hereunder do not in any way conflict with the rights granted to the holders of
the Company’s or the Guarantor’s securities under any other agreements.  Neither the Company nor the Guarantor will
take any action with respect to the Registrable Securities which would
adversely affect the ability of any of the Holders to include such Registrable
Securities in a registration undertaken pursuant to this Agreement.

(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 a majority of outstanding Registrable Securities; provided, however,
that, no consent is necessary from any of the Holders in the event that this
Agreement is amended, modified or supplemented for the purpose of curing any
ambiguity, defect or inconsistency that does not adversely affect the rights of
any Holders.  Notwithstanding the
foregoing, a waiver or consent to depart from the provisions hereof with
respect to a matter that relates exclusively to the rights of Holders of
Registrable Securities whose securities are being sold pursuant to a Shelf
Registration Statement and that does not directly or indirectly affect the
rights of other Holders of Registrable Securities may be given by Holders of at
least a majority of the 

 

 27
 

 

Registrable Securities being sold by such Holders pursuant to such
Shelf Registration Statement; provided,
however, that the provisions of
this sentence may not be amended, modified, or supplemented except in
accordance with the provisions of the immediately preceding sentence.  Each Holder of Registrable Securities
outstanding at the time of any such amendment, modification, supplement, waiver
or consent or thereafter shall be bound by any such amendment, modification,
supplement, waiver or consent effected pursuant to this Section 9(c), whether
or not any notice, writing or marking indicating such amendment, modification,
supplement, waiver or consent appears on the Registrable Securities or is
delivered to such Holder.

(d)           Notices.  All notices and other communications provided
for or permitted hereunder shall be made in writing by hand delivery, by
telecopier, by courier guaranteeing overnight delivery or by first-class mail,
return receipt requested, and shall be deemed given (A) when made, if made by
hand delivery, (B) upon confirmation, if made by telecopier, (C) one (1)
Business Day after being deposited with such courier, if made by overnight
courier or (D) on the date indicated on the notice of receipt, if made by
first-class mail, to the parties as follows:

(i)            if
to a Holder, at the most current address given by such Holder to the Company in
a Notice and Questionnaire or any amendment thereto;

(ii)           if
to the Company, to:

Alexandria Real Estate
Equities, Inc.

385 East Colorado
Boulevard, Suite 299,

Pasadena, California
91101

Attention: Corporate
Secretary

Telecopy No.: 1-626-578-0770

(iii)          if to the Guarantor, to:

Alexandria Real Estate
Equities, L.P.

385 East Colorado
Boulevard, Suite 299,

Pasadena, California
91101

Attention: Corporate
Secretary

Telecopy No.: 1-626-578-0770

(iv)          if to the Initial Purchasers, to:

c/o UBS Securities LLC

299 Park Avenue

New York, New York 10171

Attention: Syndicate
Department

Telecopy No.: (212) 713-1205

with a copy to (for informational purposes only):

 

 28
 

 

UBS Securities LLC

299 Park Avenue

New York, New York 10171

Attention: Legal
Department

Telecopy No.: (212) 821-4042

and

UBS Securities LLC

677 Washington Boulevard

Stamford, Connecticut
06901

Attention: Syndicate
Department

Telecopy No.: (203) 719-0683

or to such other address as such person may have furnished to the other
persons identified in this Section 9(d) in writing in accordance herewith.

(e)           Majority
of Registrable Securities.  For
purposes of determining what constitutes Holders of a majority of Registrable
Securities, as referred to in this Agreement, a majority shall constitute a
majority in aggregate principal amount of Securities, treating each relevant
Holder of Underlying Shares as a holder of the aggregate principal amount of
Securities in respect of which such Common Stock was issued.

(f)            Approval
of Holders.  Whenever the consent or
approval of Holders of a specified percentage of Registrable Securities is
required hereunder, Registrable Securities held by the Company or its “affiliates”
(as such term is defined in Rule 405 under the Securities Act) (other than the
Initial Purchasers or subsequent Holders of Registrable Securities, if the
Initial Purchasers or such subsequent Holders are deemed to be such affiliates
solely by reason of their holdings of such Registrable Securities) shall not be
counted in determining whether such consent or approval was given by the
Holders of such required percentage.

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

(h)           Successors
and Assigns.  Any person who
purchases any Covered Security from any Initial Purchaser or from any Holder
shall be deemed, for purposes of this Agreement, to be an assignee of such
Initial Purchaser or such Holder, as the case may be.  This Agreement shall inure to the benefit of
and be binding upon the respective successors and assigns of each of the
parties hereto and shall inure to the benefit of and be binding upon each
Holder of any Covered Security.

(i)            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 original and all of which taken together shall constitute one and the
same agreement.

 

 29
 

 

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

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

(l)            Severability.  If any term, provision, covenant or
restriction of this Agreement is held to be invalid, illegal, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall remain in full force and effect and shall
in no way be affected, impaired or invalidated thereby, and the parties hereto
shall use their best efforts to find and employ an alternative means to achieve
the same or substantially the same result as that contemplated by such term,
provision, covenant or restriction, it being intended that all of the rights
and privileges of the parties shall be enforceable to the fullest extent
permitted by law.

(m)          Entire
Agreement.  This Agreement is
intended by the parties hereto as a final expression of their agreement and is
intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained
herein and the registration rights granted by the Company with respect to the
Registrable Securities. Except as provided in the Purchase Agreement, there are
no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein, with respect to the registration rights granted by
the Company with respect to the Registrable Securities.  This Agreement supersedes all prior
agreements and undertakings among the parties with respect to such registration
rights.  No party hereto shall have any
rights, duties or obligations other than those specifically set forth in this
Agreement.

(n)           Termination.  This Agreement and the obligations of the
parties hereunder shall terminate upon the end of the Effectiveness Period,
except for any liabilities or obligations under Section 4, Section 5 or Section
6 hereof and the obligations to make payments of and provide for additional
interest under Section 2(e) hereof to the extent such additional interest
accrues prior to the end of the Effectiveness Period and to the extent any
overdue additional interest accrues in accordance with the last paragraph of
such Section 2(e), each of which shall remain in effect in accordance with its
terms.

(o)           Submission
to Jurisdiction.  Except as set forth below, no claim,
counterclaim or dispute of any kind or nature whatsoever arising out of or in
any way 

 

 30
 

 

relating to this Agreement (“Claim”) may be commenced,
prosecuted or continued in any court other than the courts of the State of New
York located in the City and County of New York or in the United States
District Court for the Southern District of New York, which courts shall have
jurisdiction over the adjudication of such matters, and the Company hereby
consents to the jurisdiction of such courts and personal service with respect
thereto.  The Company hereby consents to
personal jurisdiction, service and venue in any court in which any Claim
arising out of or in any way relating to this Agreement is brought by any third
party against any Initial Purchaser.  THE
COMPANY HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY PROCEEDING (WHETHER BASED
UPON CONTRACT, TORT OR OTHERWISE) IN ANY WAY ARISING OUT OF OR RELATING TO THIS
AGREEMENT.  The Company agrees that a
final judgment in any such Proceeding brought in any such court shall be
conclusive and binding upon the Company and may be enforced in any other courts
in the jurisdiction of which the Company is or may be subject, by suit upon
such judgment.

 

 31

 

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

 

	
  

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Alexandria Real Estate
  Equities, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Dean A. Shigenaga

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Dean A. Shigenaga

  
	
   

  	
   

  	
   

  	
   

  	
  Title:   Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Alexandria Real Estate
  Equities, L.P.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Dean A. Shigenaga 

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Dean A. Shigenaga

  
	
   

  	
   

  	
   

  	
   

  	
  Title:   Chief Financial Officer

  

 

 

Accepted and agreed to as of the date

first above written, on behalf of itself

and the other several Initial

Purchasers:

UBS
SECURITIES LLC

	
  By:

  	
   

  	
  /s/ John Case

  	
   

  	
   

  
	
   

  	
   

  	
  Name: John Case

  	
   

  	
   

  
	
   

  	
   

  	
  Title:   Managing Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Tariq Khan

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Tariq Khan

  	
   

  	
   

  
	
   

  	
   

  	
  Title:   Associate DirectorExhibit 10.2.1

LOAN AGREEMENT

THIS LOAN AGREEMENT
(“Loan Agreement”) is made and entered into as of the 16th day of January,
2007, by and between First Bankers Trust Services, Inc., trustee (“Borrower”)
of the trust established under Article VIII, and which forms a part of, the
Hampden Bank Employee Stock Ownership Plan and Trust (“ESOP”), and Hampden LS,
Inc. (“Lender”), a corporation organized and existing under the laws of
Delaware.

WITNESSETH

WHEREAS, the
Borrower is authorized to purchase shares of common stock (“Common Stock”) of
Hampden Bancorp, Inc., either directly from Hampden Bancorp, Inc. or in open
market purchases in an amount not to exceed 8% of the number of shares issued
in the offering.

WHEREAS, the
Borrower is authorized to borrow funds from the Lender for the purpose of
financing authorized purchases of Common Stock; and

WHEREAS, the Lender
is willing to make a loan to the Borrower for such purpose:

NOW, THEREFORE, the
parties agree hereto as follows:

ARTICLE I 

DEFINITIONS 

The following definitions shall apply for purposes of
this Loan Agreement, except to the extent that a different meaning is plainly
indicated by the context:

Business Day
means any day other than a Saturday, Sunday or other day on which banks are
authorized or required to close under federal or local law.

Code means the
Internal Revenue Code of 1986 (including the corresponding provisions of any
succeeding law).

Default means
an event or condition which would constitute an Event of Default. The
determination as to whether an event or condition would constitute an Event of
Default shall be determined without regard to any applicable requirements of
notice or lapse of time.

ERISA means
the Employee Retirement Income Security Act of 1974, as amended (including the
corresponding provisions of any succeeding law).

Event of Default
means an event or condition described in Article V.

Loan means the
loan described in section 2.1.

 

Loan Documents
means, collectively, the Loan Agreement, the Promissory Note and the Pledge
Agreement and all other documents now or hereafter executed and delivered in
connection with such documents, including all amendments, modifications and
supplements of or to all such documents.

Pledge Agreement
means the agreement described in section 2.8(a).

Principal Amount
means the face amount of the Promissory Note, determined as set forth in
section 2.1(c).

Promissory Note
means the promissory note described in section 2.3.

Register means
the register described in section 2.9.

ARTICLE II 

THE LOAN; PRINCIPAL AMOUNT;

INTEREST; SECURITY; INDEMNIFICATION 

Section 2.1 The Loan; Principal Amount.

(a) The Lender hereby agrees to lend to the Borrower
such amount, and at such time, as shall be determined under this
Section 2.1; provided, however, that in no event shall the aggregate
amount lent under this Loan Agreement from time to time exceed the aggregate
amount paid by the Borrower to purchase up to 635,990 shares of Common Stock.

(b) Subject to the limitations of Section 2.1(a),
the Borrower shall determine the amounts borrowed under this Agreement, and the
time at which such borrowings are effected. Each such determination shall be
evidenced in a writing which shall set forth the amount to be borrowed and the
date on which the Lender shall disburse such amount, and such writing shall be
furnished to the Lender by notice from the Borrower. The Lender shall disburse
to the Borrower the amount specified in each such notice on the date specified
therein or, if later, as promptly as practicable following the Lender’s receipt
of such notice; provided, however, that the Lender shall have no obligation to
disburse funds pursuant to this Agreement following the occurrence of a Default
or an Event of Default until such time as such Default or Event of Default
shall have been cured.

(c) For all purposes of this Loan Agreement, the
Principal Amount on any date shall be equal to the excess, if any, of:

(i) the aggregate amount disbursed by the Lender
pursuant to section 2.1(b) on or before such date; over

 

(ii) the aggregate amount of any repayments of such
amounts made before such date.

The
Lender shall maintain on the Register a record of, and shall record in the
Promissory Note, the Principal Amount, any changes in the Principal Amount and
the effective date of any changes in the Principal Amount.

Section 2.2 Interest.

(a) The Borrower shall pay to the Lender interest on
the Principal Amount, for the period commencing with the first disbursement of
funds under this Loan Agreement and continuing until the Principal Amount shall
be paid in full, at the rate of eight and one-quarter percent (8.25%) per
annum. Interest payable under this Agreement shall be computed on the basis of
a year of 365 days and actual days elapsed (including the first day but
excluding the last) occurring during the period to which the computation
relates, unless otherwise specified in the amortization schedule.

(b) Accrued interest on the Principal Amount shall be
payable by the Borrower on the dates set forth in Schedule I to the Promissory
Note. All interest on the Principal Amount shall be paid by the Borrower in
immediately available funds.

Section 2.3 Promissory Note.

The Loan shall be evidenced by the Promissory Note of
the Borrower attached hereto.

Section 2.4 Payment of Trust
Loan.

The Principal Amount of the Loan shall be repaid in
accordance with Schedule I to the Promissory Note on the dates specified
therein until fully paid.

Section 2.5 Prepayment.

The Borrower shall be entitled to prepay the Loan in
whole or in part, at any time and from time to time; provided, however, that
the Borrower shall give notice to the Lender of any such prepayment; and
provided, further, that any partial prepayment of the Loan shall be in an
amount not less than $1,000. Any such prepayment shall be: (a) permanent
and irrevocable; (b) accompanied by all accrued interest through the date
of such prepayment; (c) made without premium or penalty; and
(d) applied on the inverse order of the maturity of the installment
thereof unless the Lender and the Borrower agree to apply such prepayments in
some other order.

Section 2.6 Method of
Payments.

(a) All payments of principal, interest, other charges
(including indemnities) and other amounts payable by the Borrower hereunder
shall be made in lawful money of the 

United
States, in immediately available funds, to the Lender at the address specified
in or pursuant to this Loan Agreement for notices to the Lender, on the date on
which such payment shall become due. Any such payment made on such date but
after such time shall, if the amount paid bears interest, and except as
expressly provided to the contrary herein, be deemed to have been made on, and
interest shall continue to accrue and be payable thereon until, the next
succeeding Business Day. If any payment of principal or interest becomes due on
a day other than a Business Day, such payment may be made on the next
succeeding Business Day, and when paid, such payment shall include interest to
the day on which payment is in fact made.

(b) Notwithstanding anything to the contrary contained
in this Loan Agreement or the Promissory Note, the Borrower shall not be
obligated to make any payment, repayment or prepayment on the Promissory Note
if doing so would cause the ESOP to cease to be an employee stock ownership
plan within the meaning of section 4975(e)(7) of the Code or qualified under
section 401(a) of the Code or cause the Borrower to cease to be a tax exempt
trust under section 501(a) of the Code or if such act or failure to act would
cause the Borrower to engage in any “prohibited transaction” as such term is
defined in the section 4975(c) of the Code and the regulations promulgated
thereunder which is not exempted by section 4975(c)(2) or (d) of the Code
and the regulations promulgated thereunder or in section 406 of ERISA and the
regulations promulgated thereunder which is not exempted by section 408(b) of
ERISA and the regulations promulgated thereunder; provided, however, that in
each case, the Borrower, may act or refrain from acting pursuant to this
section 2.6(b) on the basis of an opinion of counsel, whether written or oral.
The Borrower may consult with counsel, and any opinion of such counsel shall be
full and complete authorization and protection in respect of any action taken
or suffered or omitted by it hereunder in good faith and in accordance with
such opinion of counsel. Nothing contained in this section 2.6(b) shall be
construed as imposing a duty on the Borrower to consult with counsel. Any
obligation of the Borrower to make any payment, repayment or prepayment on the
Promissory Note or refrain from taking any other act hereunder or under the
Promissory Note which is excused pursuant to this section 2.6(b) shall be
considered a binding obligation of the Borrower, or both, as the case may be,
for the purposes of determining whether a Default or Event of Default has
occurred hereunder or under the Promissory Note and nothing in this section
2.6(b) shall be construed as providing a defense to any remedies otherwise
available upon a Default or an Event of Default hereunder (other than the
remedy of specific performance).

Section 2.7 Use of Proceeds
of Loan.

The entire proceeds of the Loan shall be used solely
for acquiring shares of Common Stock, and for no other purpose whatsoever.

 

Section 2.8 Security.

(a) In order to secure the due payment and performance
by the Borrower of all of its obligations under this Loan Agreement,
simultaneously with the execution and delivery of this Loan Agreement by the
Borrower, the Borrower shall:

(i)
pledge to the Lender as Collateral (as defined in the Pledge Agreement), and
grant to the Lender a first priority lien on and security interest in, the
Common Stock purchased with the Principal Amount, by the execution and delivery
to the lender of the Pledge Agreement attached hereto as an exhibit; and

(ii)
execute and deliver, or cause to be executed and delivered, such other
agreement, instruments and documents as the Lender may reasonably require in
order to effect the purposes of the Pledge Agreement and this Loan Agreement.

(b) The Lender shall release from encumbrance under
the Pledge Agreement and transfer to the Borrower, as of the date on which any
payment or repayment of the Principal Amount is made, a number of shares of
Common Stock held as Collateral determined pursuant to the applicable
provisions of the ESOP.

Section 2.9 Registration of
the Promissory Note.

(a) The Lender shall maintain a Register providing for
the registration of the Principal Amount and any stated interest and of
transfer and exchange of the Promissory Note. Transfer of the Promissory Note
may be effected only by the surrender of the old instrument and either the
reissuance by the Borrower of the old instrument to the new holder or the
issuance by the Borrower of a new instrument to the new holder. The old Promissory
Note so surrendered shall be canceled by the Lender and returned to the
Borrower after such cancellation.

(b) Any new Promissory Note issued pursuant to section
2.9(a) shall carry the same rights to interest (unpaid and to accrue) carried
by the Promissory Note so transferred or exchanged so that there will not be
any loss or gain of interest on the note surrender. Such new Promissory Note
shall be subject to all of the provisions and entitled to all of the benefits
of this Agreement. Prior to due presentment for registration or transfer, the
Borrower may deem and treat the registered holder of any Promissory Note as the
holder thereof for purposes of payment and other purposes. A notation shall be
made on each new Promissory Note of the amount of all payments of principal and
interest theretofore paid.

 

ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF THE BORROWER 

The Borrower hereby represents and warrants to the
Lender as follows:

Section 3.1 Power, Authority, Consents.

The Borrower has the power to execute, deliver and
perform this Loan Agreement, the Promissory Note and Pledge Agreement, all of
which have been duly authorized by all necessary and proper corporate or other
action.

Section 3.2 Due Execution,
Validity, Enforceability.

Each of the Loan Documents, including, without
limitation, this Loan Agreement, the Promissory Note and the Pledge Agreement,
has been duly executed and delivered by the Borrower; and each constitutes the
valid and legally binding obligation of the Borrower, enforceable in accordance
with its terms.

Section 3.3 Properties,
Priority of Liens.

The liens which have been created and granted by the
Pledge Agreement constitute valid, first liens on the properties and assets
covered by the Pledge Agreement, subject to no prior or equal lien.

Section 3.4 No Defaults,
Compliance with Laws.

The Borrower is not in default in any material respect
under any agreement, ordinance, resolution, decree, bond, note, indenture,
order or judgment to which it is a party or by which it is bound, or any other
agreement or other instrument by which any of the properties or assets owned by
it is materially affected.

Section 3.5 Purchase of
Common Stock.

Upon consummation of any purchase of Common Stock by
the Borrower with the proceeds of the Loan, the Borrower shall acquire valid,
legal and marketable title to all of the Common Stock so purchased, free and
clear of any liens, other than a pledge to the Lender of the Common Stock so
purchased pursuant to the Pledge Agreement. Neither the execution and delivery
of the Loan Documents nor the performance of any obligation thereunder violates
any provisions of law or conflicts with or results in a breach of or creates
(with or without the giving of notice of lapse of time, or both) a default
under any agreement to which the Borrower is a party or by which it is bound or
any of its properties is affected. No consent of any federal, state, or local
governmental authority, agency, or other regulatory body, the absence of which
could have a materially adverse effect on the Borrower or the Trustee, is or
was required to be obtained in connection with the execution, delivery, or
performance of the Loan Documents and the transaction contemplated therein or
in connection therewith, including without limitation, with respect to the
transfer of the shares of Common Stock purchased with the proceeds of the Loan
pursuant thereto.

 

Section 3.6 ESOP; Contributions.

The ESOP will be duly created, organized and
maintained in compliance with all applicable laws, regulations and rulings. The
ESOP will qualify as an “employee stock ownership plan” as defined in section
4975(e)(7) of the Code. The ESOP provides that the ESOP sponsor may make
contributions to the ESOP in an amount necessary to enable the Trustee to
amortize the Loan in accordance with the terms of the Promissory Note;
provided, however, that no such contributions shall be required if they would
adversely affect the qualification of the ESOP under section 401(a) of the Code
or be inconsistent with safe and sound banking practices.

Section 3.7 Trustee.

The trustees of the ESOP have been duly appointed by
the ESOP sponsor.

Section 3.8 Compliance with
Laws; Actions.

Neither the execution and delivery by the Borrower of
this Loan Agreement or any instruments required thereby, nor compliance with
the terms and provisions of any such documents by the lender, constitutes a
violation of any provision of any law or any regulation, order, writ,
injunction or decree or any court or governmental instrumentality, or an event
of default under any agreement, to which the Borrower is a party of which the
Borrower is bound or to which the Borrower is subject, which violation or event
of default would have a material adverse effect on the Borrower. There is no
action or proceeding pending or threatened against either the ESOP or the
Borrower before any court or administrative agency.

ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF THE LENDER 

The Lender hereby represents and warrants to the
Borrower as follows:

Section 4.1 Power, Authority,
Consents.

The Lender has the power to execute, deliver and
perform this Loan Agreement, the Pledge Agreement and all documents executed by
the Lender in connection with the Loan, all of which have been duly authorized
by all necessary and proper corporate or other action. No consent,
authorization or approval or other action by any governmental authority or
regulatory body, and no notice by the Lender to, or filing by the Lender with
any governmental authority or regulatory body is required for the due execution,
delivery and performance of this Loan Agreement.

 

Section 4.2 Due Execution,
Validity, Enforceability.

This Loan Agreement and the Pledge Agreement have been
duly executed and delivered by the Lender, and each constitutes a valid and
legally binding obligation of the Lender, enforceable in accordance with its
terms.

ARTICLE V 

EVENTS OF DEFAULT 

Section 5.1 Events of
Default under Loan Agreement.

Each of the following events shall constitute an “Event
of Default” hereunder:

(a) Failure to make any payment or mandatory
prepayment of principal of the Promissory Note when due, or failure to make any
payment of interest on the Promissory Note not later than five
(5) Business Days after the date when due.

(b) Failure by the Borrower to perform or observe any
term, condition or covenant of this Loan Agreement or of any of the other Loan
Documents, including without limitation, the Promissory Note and the Pledge
Agreement.

(c) Any representation or warranty made in writing to
the Lender in any of the Loan Documents, or any certificate, statement or
report made or delivered in compliance with this Loan Agreement, shall have
been false or misleading in any material respect when made or delivered.

Section 5.2 Lender’s Rights
upon Event of Default.

If an Event of Default under this Loan Agreement shall
occur and be continuing, the Lender shall have no rights to assets of the
Borrower other than: (a) contributions (other than contributions of Common
Stock) that are made by the ESOP sponsor to enable the Borrower to meet its
obligations pursuant to this Loan Agreement and earnings attributable to the
investment of such contributions and (b) ”Eligible Collateral” (as defined
in the Pledge Agreement); provided, however, that; (i) the value of the
Borrower’s assets transferred to the Lender following an Event of Default in
satisfaction of the due and unpaid amount of the Loan shall not exceed the
amount in default (without regard to amounts owing solely as a result of any
acceleration of the Loan); (ii) the Borrower’s assets shall be transferred
to the Lender following an Event of Default only to the extent of the failure
of the Borrower to meet the payment schedule of the Loan; and (iii) all
rights of the Lender to the Common Stock purchased with the proceeds of the Loan
covered by the Pledge Agreement following an Event of Default shall be governed
by the terms of the Pledge Agreement.

ARTICLE VI 

Miscellaneous Provisions 

Section 6.1 Payments.

All payments hereunder and under the Promissory Note
shall be made without set-off or counterclaim and in such amounts as may be
necessary in order that all such payments shall not be less than the amounts
otherwise specified to be paid under this Loan Agreement and the Promissory
Note, subject to any applicable tax withholding requirements. Upon payment in
full of the Promissory Note, the Lender shall mark such Promissory Note “Paid”
and return it to the Borrower.

Section 6.2 Survival.

All agreements, representations and warranties made
herein shall survive the delivery of this Loan Agreement and the Promissory
Note.

Section 6.3 Modifications,
Consents and Waivers; Entire Agreement.

No modification, amendment or waiver of or with
respect to any provision of this Loan Agreement, the Promissory Note, the
Pledge Agreement, or any of the other Loan Documents, nor consent to any
departure from any of the terms or conditions thereof, shall in any event be
effective unless it shall be in writing and signed by the party against whom
enforcement thereof is sought. Any such waiver or consent shall be effective
only in the specific instance and for the purpose for which given. No consent
to or demand on a party in any case shall, of itself, entitle it to any other
or further notice or demand in similar or other circumstances. This Loan
Agreement embodies the entire agreement and understanding between the Lender
and the Borrower and supersedes all prior agreements and understandings
relating to the subject matter hereof.

Section 6.4 Remedies
Cumulative.

Each and every right granted to the Lender hereunder
or under any other document delivered hereunder or in connection herewith, or
allowed it by law or equity, shall be cumulative and may be exercised from time
to time. No failure on the part of the Lender or the holder of the Promissory
Note to exercise, and no delay in exercising, any right shall operate as a
waiver thereof, nor shall any single or partial exercise of any right preclude
any other or future exercise thereof or the exercise of any other right. The
due payment and performance of the obligations under the Loan Documents shall
be without regard to any counterclaim, right of offset or any other claim whatsoever
which the Borrower may have against the Lender and without regard to any other
obligation of any nature whatsoever which the Lender may have to the Borrower,
and no such counterclaim or offset shall be asserted by the Borrower in any
action, suit or proceeding instituted by the Lender for payment or performance
of such obligations.

 

Section 6.5 Further
Assurances; Compliance with Covenants.

At any time and from time to time, upon the request of
the Lender, the Borrower shall execute, deliver and acknowledge or cause to be
executed, delivered and acknowledged, such further documents and instruments
and do such other acts and things as the Lender may reasonably request in order
to fully effect the terms of this Loan Agreement, the Promissory Note, the
Pledge Agreement, the other Loan Documents and any other agreements,
instruments and documents delivered pursuant hereto or in connection with the
Loan.

Section 6.6 Notices.

Except as otherwise specifically provided for herein,
all notice, requests, reports and other communications pursuant to this Loan
Agreement shall be in writing, either by letter (delivered by hand or
commercial messenger service or sent by registered or certified mail, return
receipt requested, except for routine reports delivered in compliance with
Article VI hereof which may be sent by ordinary first-class mail) or fax
addressed as follows:

	
  

  	
   

  	
  (a)

  	
   

  	
  If to the Borrower:

  

 

First
Bankers Trust Services, Inc., Trustee

Hampden Bank Employee Stock
 Ownership Plan and Trust

2321 Kochs Lane

P.O. Box 4005

Quincy, IL  62305-4005

	
  

  	
   

  	
  (b)

  	
   

  	
  If to the Lender: 

  

 

Hampden
LS, Inc.

19 Harrison Avenue

Springfield, MA 01103-2048

Attn: Robert A. Massey

Any
notice, request or communication hereunder shall be deemed to have been given
on the day on which it is delivered by hand or by commercial messenger service,
or sent by facsimile, to such party at its address specified above, or, if sent
by mail, on the third Business Day after the day deposited in the mail, postage
prepaid, addressed as aforesaid. Any party may change the person or address to
whom or which notices are to be given hereunder, by notice duly given
hereunder; provided, however, that any such notice shall be deemed to have been
given only when actually received by the party to whom it is addressed.

 

Section 6.7 Counterparts.

This Loan Agreement may be signed in any number of
counterparts which, when taken together, shall constitute one and the same
document.

Section 6.8 Construction;
Governing Law.

The headings used in the table of contents and in this
Loan Agreement are for convenience only and shall not be deemed to constitute a
part hereof. All uses herein of any gender or of singular or plural terms shall
be deemed to include uses of the other genders or plural or singular terms, as
the context may require. All references in this Loan Agreement of an Article or
section shall be to an Article or section of this Loan Agreement, unless
otherwise specified. This Loan Agreement, the Promissory Note, the Pledge
Agreement and the other Loan Documents shall be governed by, and construed and
interpreted in accordance with, the laws of the Commonwealth of Massachusetts.

Section 6.9 Severability.

Wherever possible, each provision of this Loan
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law; however, the provisions of this Loan Agreement are
severable, and if any clause of provision hereof shall be held invalid or
unenforceable in whole or in part in any jurisdiction, then such invalidity or
unenforceability shall affect only such clause or provision, or part thereof,
in such jurisdiction and shall not in any manner affect such clause or
provision in any other jurisdiction, or any other clause or provisions in this
Loan Agreement in any jurisdiction. Each of the covenants, agreements and
conditions contained in this Loan Agreement independent, and compliance by a
party with any of them shall not excuse non-compliance by such party with any
other. The Borrower shall not take any action the effect of which shall
constitute a breach or violation of any provision of this Loan Agreement.

Section 6.10 Binding Effect:
No Assignment or Delegation.

This Loan Agreement shall be binding upon and inure to
the benefit of the Borrower and its successors and the Lender and its
successors and assigns. The rights and obligations of the Borrower under this
Agreement shall not be assigned or delegated without the prior written consent
of the Lender, and any purported assignment or delegation without such consent
shall be void.

 

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

	
  

  	
  Hampden Bank Employee Stock

  Ownership Plan and Trust

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Linda Shultz

  
	
   

  	
   

  	
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  Hampden LS, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas R. Burton

  

 

 

Exhibit 10.2.2

PLEDGE AGREEMENT 

THIS PLEDGE AGREEMENT (“Pledge Agreement”) is made as
of the 16th day of January 2007, by and between First Bankers Trust Services,
Inc., trustee (“Borrower”) of the trust established under Article VIII, and
which forms a part of, the Hampden Bank Employee Stock Ownership Plan and Trust
(“Pledgor”), and Hampden LS, Inc., a corporation organized and existing under
the laws of Delaware (“Pledgee”).

WITNESSETH

WHEREAS, this Pledge Agreement is being executed and
delivered to the Pledgee pursuant to the terms of a Loan Agreement (“Loan
Agreement”), by and between the Pledgor and the Pledgee;

NOW, THEREFORE, in consideration of the mutual
agreements contained herein and in the Loan Agreement, the parties hereto do
hereby covenant and agree as follows:

Section 1. Definitions.
The following definitions shall apply for purposes of this Pledge Agreement,
except to the extent that a different meaning is plainly indicated by the
context; all capitalized terms used but not defined herein shall have the
respective meanings assigned to them in the Loan Agreement:

Collateral
shall mean the Pledged Shares and, subject to section 5 hereof, and to the
extent permitted by applicable law, all rights with respect thereto, and all
proceeds of such Pledged Shares and rights.

ESOP shall
mean the Hampden Bank Employee Stock Ownership Plan and Trust.

Event of Default
shall mean an event so defined in the Loan Agreement.

Liabilities
shall mean all the obligations of the Pledgor to the Pledgee, howsoever created,
arising or evidenced, whether direct or indirect, absolute or contingent, now
or hereafter existing, or due or to become due, under the Loan Agreement and
the Promissory Note.

Pledged Shares
shall mean all the Shares of Common Stock of the Pledgee purchased by the
Pledgor with the proceeds of the loan made by the Pledgee to the Pledgor
pursuant to the Loan Agreement, but excluding any such shares previously
released pursuant to section 4.

Section 2. Pledge.
To secure the payment of and performance of all the Liabilities, the Pledgor
hereby pledges to the Pledgee, and grants to the Pledgee, a security interest
in, and lien upon, the Collateral.

Section 3. Representations
and Warranties of the Pledgor. The Pledgor represents,
warrants, and covenants to the Pledgee as follows:

 

(a) the execution, delivery and performance of this
Pledge Agreement and the pledging of the Collateral hereunder do not and will
not conflict with, result in a violation of, or constitute a default under, any
agreement binding upon the Pledgor;

(b) the Pledged Shares are and will continue to be
owned by the Pledgor free and clear of any liens or rights of any other person
except the lien hereunder and under the Loan Agreement in favor of the Pledgee,
and the security interest of the Pledgee in the Pledged Shares and the proceeds
thereof is and will continue to be prior to and senior to the rights of all
others;

(c) this Pledge Agreement is the legal, valid, binding
and enforceable obligation of the Pledgor in accordance with its terms;

(d) the Pledgor shall, from time to time, upon request
of the Pledgee, promptly deliver to the Pledgee such stock powers, proxies, and
similar documents, satisfactory in form and substance to the Pledgee, with
respect to the Collateral as the Pledgee may reasonably request; and

(e) subject to the first sentence of section 4(b), the
Pledgor shall not, so long as any Liabilities are outstanding, sell, assign,
exchange, pledge or otherwise transfer or encumber any of its rights in and to
any of the Collateral.

Section 4. Eligible
Collateral.

(a) As used herein the term “Eligible Collateral”
shall mean the amount of Collateral which has an aggregate fair market value
equal to the amount by which the Pledgor is in default (without regard to any
amounts owing solely as the result of an acceleration of the Loan Agreement) or
such lesser amount of Collateral as may be required pursuant to Section 13 of
this Pledge Agreement.

(b) The Pledged Shares shall be released from this
Pledge Agreement in a manner conforming to the requirements of Treasury
Regulation Section 54.4975-7(b)(8), as the same may be from time to time
amended or supplemented, and the applicable provisions of the ESOP. Subject to
such Regulations, the Pledgee may from time to time, after any Default or Event
of Default, and without prior notice to the Pledgor, transfer all or any part
of the Eligible Collateral in the name of the Pledgee or its nominee, without
disclosing that such Eligible Collateral is subject to any rights of the
Pledgor and may from time to time, whether before or after any of the
Liabilities shall become due and payable, without notice to the Pledgor, take
all or any of the following actions: (i) notify the parties obligated on
any of the Eligible Collateral to make payment to the Pledgee of any amounts
due or due to become due thereunder, (ii) release or exchange all or any
part of the Eligible Collateral, or compromise or extend or renew for any
period (whether or not longer than the original period) any obligations of any
nature of any party with respect thereto, and (iii) take control of any
proceeds of the Eligible Collateral.

 

Section 5. Delivery.

(a) The Pledgor shall deliver to the Pledgee upon
execution of this Pledge Agreement (i) either (A) certificates for
the Pledged Shares, each certificate duly signed in blank by the Pledgor or
accompanied by a stock transfer power duly signed in blank by the Pledgor and
each such certificate accompanied by all required documentary or stock transfer
tax stamps or (B) if the Trustee does not yet have possession of the
Pledged Shares, an assignment by the Pledgor of all the Pledgor’s rights to and
interest in the Pledged Shares and (ii) an irrevocable proxy, in form and
substance satisfactory to the Pledgee, signed by the Pledgor with respect to
the Pledged Shares.

(b) So long as no Default or Event of Default shall
have occurred and be continuing, (i) the Pledgor shall be entitled to
exercise any and all voting and other rights pertaining to the Collateral or
any part thereof for any purpose not inconsistent with the terms of this Pledge
Agreement, and (ii) the Pledgor shall be entitled to receive any and all
cash dividends or other distributions paid in respect of the Collateral.

Section 6. Events of Default.

(a) If a Default or Event Default shall be existing,
in addition to the rights it may have under the Loan Agreement, the Promissory
Note, and this Pledge Agreement, or by virtue of any other instrument,
(i) the Pledgee may exercise, with respect to the Eligible Collateral, from
time to time, any rights and remedies available to it under the Uniform
Commercial Code as in effect from time to time in the Commonwealth of
Massachusetts or otherwise available to it and (ii) the Pledgee shall have
the right, for and in the name, place and stead of the Pledgor, to execute
endorsement, assignments, stock powers and other instruments of conveyance or
transfer with respect to all or any of the Eligible Collateral. Written
notification of intended disposition of any of the Eligible Collateral shall be
given by the Pledgee to the Pledgor at least three (3) Business Days
before such disposition. Subject to section 13 below, any proceeds of any
disposition of Eligible Collateral may be applied by the Pledgee to the payment
of expenses in connection with the Eligible Collateral, including, without
limitation, reasonable attorneys’ fees and legal expenses, and any balance of
such proceeds may be applied by the Pledgee toward the payment of such of the
Liabilities as are in Default, and in such order of application, as the Pledgee
may from time to time elect. No action of the Pledgee permitted hereunder shall
impair or affect its rights in and to the Eligible Collateral. All rights and
remedies of the Pledgee expressed hereunder are in addition to all other rights
and remedies possessed by it, including, without limitation, those contained in
the documents referred to in the definition of Liability in section 1 hereof.

(b) In any sale of any of the Eligible Collateral
after a Default or an Event of Default shall have occurred, the Pledgee is
hereby authorized to comply with any limitation or restriction in connection
with such sale as it may be advised by counsel if necessary in order to avoid
violation of applicable law (including, without limitation, compliance with
such procedures as may restrict the number of prospective bidders and
purchasers or further restrict such prospective bidders or purchasers to
persons who will represent and 

agree
that they are purchasing for their own account for investment and not with a
view to the distribution or resale of such Eligible Collateral), or in order to
obtain such required approval of the sale or of the purchase by any
governmental regulatory authority or official, and the Pledgor further agrees
that such compliance shall not result in such sale’s being considered or deemed
not to have been made in a commercially reasonable manner, nor shall the
Pledgee be liable or accountable to the Pledgor for any discount allowed by
reason of the fact that such Eligible Collateral is sold in compliance with any
such limitation or restriction.

Section 7. Payment in Full.
Upon the payment in full of all outstanding Liabilities, this Pledge Agreement
shall terminate and the Pledgee shall forthwith assign, transfer and deliver to
the Pledgor, against receipt and without recourse to the Pledgee, all
Collateral then held by the Pledgee pursuant to the Pledge Agreement.

Section 8. No Waiver.
No failure or delay in the part of the Pledgee in exercising any right or
remedy hereunder or under any other document which confers or grants any rights
to the Pledgee in respect of the Liabilities shall operate as a waiver thereof
nor shall any single or partial exercise of any such rights or remedy preclude
any other or further exercise thereof or the exercise of any other right or
remedy of the Pledgee.

Section 9. Binding Effect;
No Assignment or Delegation. This Pledge Agreement shall
be binding upon and inure to the benefit of the Pledgor, the Pledgee and their
respective successors and assigns, except that the Pledgor may not assign or
transfer its rights hereunder without the prior written consent of the Pledgee
(which consent shall not unreasonably be withheld). Each duty or obligation of
the Pledgor to the Pledgee pursuant to the provisions of this Pledge Agreement
shall be performed in favor of any person or entity designated by the Pledgee,
and any duty or obligation of the Pledgee to the Pledgor may be performed by
any other person or entity designated by the Pledgee.

Section 10. Governing Law.
This Pledge Agreement shall be governed by and construed in accordance with the
laws of the Commonwealth of Massachusetts applicable to agreements to be
performed wholly within the Commonwealth of Massachusetts.

Section 11. Notices.
All notices, requests, instructions or documents hereunder shall be in writing
and delivered personally or sent by United States mail, registered or
certified, return receipt requested, with proper postage prepaid as follows:

	
  

  	
   

  	
  (a)

  	
   

  	
  If to the Pledgee: 

  

 

Hampden
LS, Inc.

19 Harrison Avenue

Springfield, MA 01103-2048

Attn: Robert A. Massey

	
  

  	
   

  	
  (b)

  	
   

  	
  If to the Pledgor: 

  

 

First
Bankers Trust Services, Inc., Trustee

Hampden Bank Employee Stock

Ownership Plan and Trust

2321 Kochs Lane

P.O. Box 4005

Quincy, IL  62305-4005

 

or at
such other address as either of the parties may designate by written notice to
the other party. If delivered personally, the date on which a notice, request,
instruction or document is delivered shall be the date on which such delivery
is made, and, if delivered by mail, the date on which such notice, request,
instruction, or document is deposited in the mail shall be the date of
delivery. Each notice, request, instruction or document shall bear the date on
which it is delivered.

Section 12. Interpretation.
Wherever possible each provision of this Pledge Agreement shall be interpreted
in such manner as to be effective and valid under applicable law, but if any
provision herein shall be prohibited by or invalid under such law, such
provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining
provisions hereof.

Section 13. Construction.
All provisions hereof shall be construed so as to maintain (a) the ESOP as
a qualified leveraged employee stock ownership plan under section 401(a) and
4975(e)(7) of the Internal Revenue Code of 1986 (the “Code”), (b) the
Trust as exempt from taxation under section 501(a) of the Code and (c) the
Trust Loan as an exempt loan under section 54.4975-7(b) of the Treasury
Regulations and as described in Department of Labor Regulation section
2550.408b-3.

IN WITNESS WHEREOF, this Pledge Agreement has been
duly executed by the parties hereto as of the day and year first above written.

	
  

  	
  Hampden Bank Employee
  Stock

  Ownership Plan and Trust (Pledgor)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Linda Shultz

  
	
   

  	
   

  	
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  Hampden LS, Inc. (Pledgee)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas R. Burton

  

 

Exhibit 10.2.3

PROMISSORY NOTE 

FOR VALUE RECEIVED,
the undersigned, Hampden Bank Employee Stock Ownership Plan and Trust (the “Borrower”),
hereby promises to pay to the order of Hampden LS, Inc. (the “Lender”) up to $6,359,900 payable in accordance
with the Loan Agreement made and entered into between the Borrower and the
Lender of even date herewith (“Loan Agreement”) pursuant to which this
Promissory Note is issued.

The Principal Amount of this Promissory Note shall be
payable in accordance with the attached Schedule I.

This Promissory Note shall bear interest at the rate
per annum established under the Loan Agreement, and shall be payable in fifteen
(15) annual installments of principal and interest accordance with Schedule I.

Payments of both principal and interest on this
Promissory Note are to be made at the principal office of the Lender or such
other place as the holder hereof shall designate to the Borrower in writing, in
lawful money of the United States of America in immediately available funds.

Failure to make any payments of principal on this
Promissory Note when due, or failure to make any payment of interest on this
Promissory Note not later than five (5) Business Days after the date when
due, shall constitute a default hereunder, whereupon the principal amount and
accrued interest on this Promissory Note shall immediately become due and
payable in accordance with the terms of the Loan Agreement.

This
Promissory Note is secured by a Pledge Agreement between the Borrower and the
Lender of even date herewith and is entitled to the benefits thereof.

	
  

  	
  Hampden Bank Employee Stock

  Ownership Plan and Trust

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Linda Shultz

  
	
   

  	
   

  	
   

  

 

 

Schedule I

Hampden Bancorp, Inc.

Employee Stock Ownership Plan

LOAN
AMORTIZATION SCHEDULE

 

	
  Date of Loan

  Closing

  	
   

  	
  Annual

  Payments

  	
   

  	
  Amount of

  Loan

  	
   

  	
  Interest Rate

  (Wall Street

  Prime 1/13/07)

  	
   

  	
  Term of Loan

  (in years)

  	
   

  	
  # of

  Shares

  Released

  	
   

  
	
  1/16/2007

  	
   

  	
  $

  	
  752,161.21

  	
   

  	
  $

  	
  6,359,900.00

  	
   

  	
  8.25%

  	
   

  	
  15

  	
   

  	
   

  	
   

  
														

 

	
  Payment

  Dates

  	
   

  	
  Total

  Payment

  	
   

  	
  Interest

  	
   

  	
  Principal

  	
   

  	
  Balance

  	
   

  	
   

  	
   

  
	
  12/31/2007

  	
   

  	
  $

  	
  752,161.21

  	
   

  	
  $

  	
  501,691.56

  	
   

  	
  $

  	
  250,469.65

  	
   

  	
  $

  	
  6,109,430.35

  	
   

  	
  42,399.33

  	
   

  
	
  12/31/2008

  	
   

  	
  $

  	
  752,161.21

  	
   

  	
  $

  	
  505,408.90

  	
   

  	
  $

  	
  246,752.31

  	
   

  	
  $

  	
  5,862,678.04

  	
   

  	
  42,399.33

  	
   

  
	
  12/31/2009

  	
   

  	
  $

  	
  752,161.21

  	
   

  	
  $

  	
  483,670.94

  	
   

  	
  $

  	
  268,490.27

  	
   

  	
  $

  	
  5,594,187.77

  	
   

  	
  42,399.33

  	
   

  
	
  12/31/2010

  	
   

  	
  $

  	
  752,161.21

  	
   

  	
  $

  	
  461,520.49

  	
   

  	
  $

  	
  290,640.72

  	
   

  	
  $

  	
  5,303,547.05

  	
   

  	
  42,399.33

  	
   

  
	
  12/31/2011

  	
   

  	
  $

  	
  752,161.21

  	
   

  	
  $

  	
  437,542.63

  	
   

  	
  $

  	
  314,618.58

  	
   

  	
  $

  	
  4,988,928.47

  	
   

  	
  42,399.33

  	
   

  
	
  12/31/2012

  	
   

  	
  $

  	
  752,161.21

  	
   

  	
  $

  	
  412,714.23

  	
   

  	
  $

  	
  339,446.98

  	
   

  	
  $

  	
  4,649,481.49

  	
   

  	
  42,399.33

  	
   

  
	
  12/31/2013

  	
   

  	
  $

  	
  752,161.21

  	
   

  	
  $

  	
  383,582.22

  	
   

  	
  $

  	
  368,578.99

  	
   

  	
  $

  	
  4,280,902.50

  	
   

  	
  42,399.33

  	
   

  
	
  12/31/2014

  	
   

  	
  $

  	
  752,161.21

  	
   

  	
  $

  	
  353,174.46

  	
   

  	
  $

  	
  398,986.75

  	
   

  	
  $

  	
  3,881,915.75

  	
   

  	
  42,399.33

  	
   

  
	
  12/31/2015

  	
   

  	
  $

  	
  752,161.21

  	
   

  	
  $

  	
  320,258.05

  	
   

  	
  $

  	
  431,903.16

  	
   

  	
  $

  	
  3,450,012.59

  	
   

  	
  42,399.33

  	
   

  
	
  12/31/2016

  	
   

  	
  $

  	
  752,161.21

  	
   

  	
  $

  	
  285,405.84

  	
   

  	
  $

  	
  466,755.37

  	
   

  	
  $

  	
  2,983,257.22

  	
   

  	
  42,399.33

  	
   

  
	
  12/31/2017

  	
   

  	
  $

  	
  752,161.21

  	
   

  	
  $

  	
  246,118.72

  	
   

  	
  $

  	
  506,042.49

  	
   

  	
  $

  	
  2,477,214.73

  	
   

  	
  42,399.33

  	
   

  
	
  12/31/2018

  	
   

  	
  $

  	
  752,161.21

  	
   

  	
  $

  	
  204,370.22

  	
   

  	
  $

  	
  547,790.99

  	
   

  	
  $

  	
  1,929,423.74

  	
   

  	
  42,399.33

  	
   

  
	
  12/31/2019

  	
   

  	
  $

  	
  752,161.21

  	
   

  	
  $

  	
  159,177.46

  	
   

  	
  $

  	
  592,983.75

  	
   

  	
  $

  	
  1,336,439.99

  	
   

  	
  42,399.33

  	
   

  
	
  12/31/2020

  	
   

  	
  $

  	
  752,161.21

  	
   

  	
  $

  	
  110,558.37

  	
   

  	
  $

  	
  641,602.84

  	
   

  	
  $

  	
  694,837.15

  	
   

  	
  42,399.33

  	
   

  
	
  12/31/2021

  	
   

  	
  $

  	
  752,161.21

  	
   

  	
  $

  	
  57,324.06

  	
   

  	
  $

  	
  694,837.15

  	
   

  	
  $0.00

  	
   

  	
  42,399.33

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total Shares Released

  	
   

  	
  635,990.00

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]