Document:

Exhibit 4.1

 

EXECUTION COPY

 

MEMBERS AGREEMENT

 

This MEMBERS AGREEMENT (this “Agreement”) is dated as of
August 22, 2001, by and among McCormick & Schmick Holdings, LLC,
a Delaware limited liability company (together with its successors, the “LLC”),
Bruckmann, Rosser, Sherrill & Co. II, L.P., a Delaware limited
partnership (“BRS”), Castle Harlan Partners III, L.P., a Delaware
limited partnership (“Castle Harlan”), Julie Frist (“Frist”),
Marilena Tibrea (“Tibrea”), David B. Pittaway (“Pittaway”),
Mellon Bank, N.A., as trustee for the Bell Atlantic Master Trust (“Bell
Atlantic”), BancBoston Capital, Inc., a Massachusetts corporation (“BancBoston”),
IBJ Whitehall Capital Corporation, a Delaware corporation (“IBJ”),
Richard F. Burke, Jr. (“Burke”), Robert A. Engel (“Engel”),
Mary Price Gay (“Gay”), Elliott H. Jones (“Jones”), Phillip
Krall (“Krall”), H. Conrad Meyer (“Meyer”), Charles G.
Phillips (“Phillips”), Phillips Family Foundation (“Phillips
Foundation”), Craig J. Pisani (“Pisani”), James R. Raith,
Jr. (“Raith”), Tom Steiglehner (“Steiglehner”, together with BRS,
Castle Harlan, Frist, Tibrea, Pittaway, Bell Atlantic, BancBoston, IBJ, Burke,
Engel, Gay, Jones, Krall, Meyer, Phillips, Phillips Foundation, Pisani and
Raith, the “Initial Parties”), and each executive or other employee of
the LLC or any of its Subsidiaries who becomes a member of the LLC pursuant to
the terms and conditions of the LLC Agreement after the date hereof and
executes a joinder in the form attached hereto as Exhibit A
(individually, an “Executive”, and collectively, the “Executives”,
together with the Initial Parties, the “Members”, and each individually,
a “Member”, as set forth on Schedule I attached hereto
(which Schedule I shall be amended from time to time by the LLC to
reflect the addition of any Members to this Agreement)).  Capitalized terms used herein but not
otherwise defined have the meaning set forth in Section 1 below.

 

WHEREAS, the Initial Parties (other than Bell Atlantic) have acquired a
number of the LLC’s Class A-1 Units and Preferred Units pursuant to that
certain Subscription Agreement, dated as of the date hereof, by and among the
LLC and such parties (as in effect from time to time, the “Subscription
Agreement”), and such Class A-1 Units and Preferred Units have the rights
and preferences set forth in that certain Amended and Restated Limited
Liability Company Agreement of McCormick & Schmick Holdings, LLC,
dated as of the date hereof, by and among the LLC and the Initial Parties (as
in effect from time to time, the “LLC Agreement”);

 

WHEREAS, Bell Atlantic has acquired that certain Class A-2 Common Units
Purchase Warrant and that certain Preferred Units Purchase Warrant (together
with the Class A-2 Common Units Purchase Warrant, the “Warrants”), in
each case issued to Bell Atlantic pursuant to that certain Stock and Warrant
Purchase Agreement, dated as of the date hereof, by and among Bell Atlantic,
McCormick & Schmick Acquisition Corp. II, a Delaware corporation
(“Acquisition Corp. II”), and the LLC (as in effect from time to
time, the “Stock Purchase Agreement”), which represent the right to
purchase a number of the LLC’s Class A-2 Units and Preferred Units;

 

WHEREAS, it is contemplated that certain Executives will (i) be
issued a certain number of Class B Units and Class C Units by the LLC
pursuant to certain Executive

 

 

Subscription Agreements as soon
as practicable after the date hereof, and (ii) in connection with such
issuance, will become parties to this Agreement as Executives; and

 

WHEREAS, the LLC and the Initial Parties desire to enter into this
Agreement for the purposes, among others, of limiting the manner and terms by
which the Units may be transferred.

 

NOW, THEREFORE, in consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereby agree as follows:

 

1.                                       Definitions.  As used herein, the following terms shall
have the following meanings:

 

“Advisor” means any Advisor of the LLC’s Board of Advisors, as
determined pursuant to the terms of the LLC Agreement.

 

“Affiliate” shall mean, as to any Person, any other Person that
directly or indirectly controls, or is under common control with, or is
controlled by, such Person.  As used in
this definition, “control” (including, with its correlative meanings,
“controlled by” and “under common control with”) shall mean possession,
directly or indirectly, of power to direct or cause the direction of management
or policies (whether through ownership of securities or partnership or other
ownership interests, by contract or otherwise).

 

“Approved Sale” shall mean a Sale of the LLC approved by the
Board of Advisors and by (a) as of any date on or prior to
December 31, 2007, the Required Members or (b) as of any date after
December 31, 2007, the holders of a majority of the BRS Units (as defined
in the LLC Agreement) or the holders of a majority of the Castle Harlan Units
(as defined in the LLC Agreement) (the Person or Persons approving such Sale of
the LLC under either subclause (a) or (b) of this definition, the “Approving
Holders”).

 

“Bell Atlantic Letter Agreement” means that certain Letter
Agreement, dated as of the date hereof, by and between the LLC and Bell
Atlantic, as in effect from time to time.

 

“Board of Advisors” means the LLC’s Board of Advisors, as
established pursuant to the terms of the LLC Agreement.  Any actions and determinations to be taken
or made by the Board of Advisors pursuant to the terms of this Agreement shall
require the affirmative vote of the Board of Advisors as set forth in the LLC
Agreement.

 

“BRS” has the meaning set forth in the introductory paragraph
hereof.

 

“Castle Harlan” has the meaning set forth in the introductory
paragraph hereof.

 

“Change in Control” shall mean any of the following:  (i) a majority of the Board of Advisors
shall be comprised of Persons other than designees of BRS and/or Castle Harlan
or (ii) BRS, Castle Harlan, and their respective controlled Affiliates,
affiliated management companies and employees, in the aggregate, shall cease to
own (directly or indirectly) (A) Common Units of the LLC (or its
successor) representing 51% or more (40% or more if an

 

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underwritten initial public
offering of the Common Units of the LLC or its successor has been consummated)
of the Common Units of the LLC (or its successor) or (B) common stock of
Acquisition Corp. II representing 51% or more (40% or more if an
underwritten initial public offering of the common stock of Acquisition
Corp. II has been consummated) of the common stock of Acquisition
Corp. II.  For purposes of this
definition, BRS shall be deemed to no longer own the equity securities of the
LLC in the event that BRSE LLC (or an entity controlling, controlled by or
under common control with BRSE LLC) shall cease to be the sole general partner
of BRS, and Castle Harlan shall be deemed to no longer own the equity
securities of the LLC in the event that Castle Harlan Partners III GP, Inc. (or
an entity controlling, controlled by or under common control with Castle
Harlan, Inc.) shall cease to be the sole general partner of Castle Harlan.

 

“Common Equity” means the Class A-1 Units (as defined in
the LLC Agreement), the Class A-2 Units (as defined in the LLC Agreement),
the Class B Units (as defined in the LLC Agreement) and the Class C
Units (as defined in the LLC Agreement). 
For purposes of this Agreement, a Person will be deemed to be a holder
of Common Equity whenever such Person has the right to acquire directly or
indirectly such Common Equity (upon conversion or exercise in connection with a
transfer of securities or otherwise, but disregarding any restrictions or
limitations upon the exercise of such right), whether or not such acquisition
has actually been effected.

 

“Common Units” means the Class A-1 Units (as defined in the
LLC Agreement), the Class A-2 Units (as defined in the LLC Agreement) and
the Class B Units (as defined in the LLC Agreement), and shall not include
the Class C Units (as defined in the LLC Agreement).  For purposes of this Agreement, a Person
will be deemed to be a holder of Common Units whenever such Person has the
right to acquire directly or indirectly such Common Units (upon conversion or
exercise in connection with a transfer of securities or otherwise, but
disregarding any restrictions or limitations upon the exercise of such right),
whether or not such acquisition has actually been effected.

 

“Executive Subscription Agreement” means each Executive
Subscription Agreement, entered into after the date hereof, by and between the
LLC and a certain Executive, as in effect from time to time, by which the LLC
issues, and such Executive acquires, a number of the LLC’s Class B Units
and/or Class C Units.

 

“Family Group” means, with respect to an individual Unitholder,
such Unitholder, such Unitholder’s spouse, siblings, ancestors and descendants
(whether natural, by marriage or adopted) and any trust or other estate
planning vehicle solely for the benefit of such Unitholder and/or such Unitholder’s
spouse, siblings, their respective ancestors and/or descendants (whether
natural, by marriage or adopted).

 

“Independent Third Party” means any Person who, immediately
prior to the contemplated transaction, (i)  does not own in excess of 5%
of the Common Units (any Person owning in excess of 5% of the Common Units
being referred to herein as, a “5% Owner”), (ii) is not an
Affiliate of any such 5% Owner and (iii) is not a member of the Family
Group of any such 5% Owner.

 

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“Investor Unitholder” means each of BRS, Castle Harlan, Bell
Atlantic, BancBoston and IBJ, and shall include Persons who purchase Units
following the date hereof so long as such Persons are designated as Investor
Unitholders by both the LLC and the Required Members, immediately prior to such
purchase.

 

“LLC Agreement” has the meaning set forth in the first Whereas
clause hereof.

 

“Other Unitholders” means, with respect to a Unitholder, all
Unitholders other than such Unitholder.

 

“Ownership Ratio” means, as to any Unitholder at the time of
determination, (a) with respect to the issuance or sale of any Common
Units, the percentage obtained by dividing the number of Common Units held by
such Unitholder on a fully-diluted basis at such time by the aggregate number
of Common Units held by all Unitholders on a fully-diluted basis at such time; provided,
that, for purposes of determining any Ownership Ratio, if any Common Units are
subject to vesting pursuant to the terms of any Executive Subscription
Agreement or any other agreement between the LLC or any of its Subsidiaries and
any Unitholder, such Common Units shall be taken into account as Common Units
held by any Unitholder or by all Unitholders only if; and only to the extent
that, they have vested pursuant to the terms of such agreement and
(b) with respect to the issuance or sale of any Preferred Units, the
percentage obtained by dividing the number of Preferred Units held by such
Unitholder on a fully-diluted basis at such time by the aggregate number of
Preferred Units held by all Unitholders on a fully-diluted basis at such time; provided,
that in connection with any transaction involving the issuance or sale of both
Common Units and Preferred Units, subsection (a) of this definition shall apply
(and subsection (b) of this definition shall not apply).

 

“Permitted Issuance” means an issuance of Units (i) to any
debt financing sources of the LLC or any of its Subsidiaries in connection with
a so-called “equity kicker” so long as such debt financing is approved by the
Board of Advisors (and, if required, the Required Members), (ii) in
connection with a registered public offering of Units by the LLC, (iii) to
the management employees of the LLC or any of its Subsidiaries pursuant to a
compensation or incentive arrangement established by the Board of Advisors,
(iv) upon the conversion or exchange of any Units, any class of Common
Equity, or in connection with any Unit split, reverse Unit split,
recapitalization, reclassification, Unit combination or similar reorganization,
(v) in connection with the exercise of any warrants, options or other
rights to purchase Units or any other equity securities of the LLC so long as
such warrants, options or other rights were granted in accordance with the terms
and conditions of Section 6 hereof, (vi) in connection with
the exercise of any of the Warrants and (vii) pursuant to any Executive
Subscription Agreement.

 

“Person” means an individual, a partnership, a partner, a
corporation, a limited liability company, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization or a
governmental entity or any department, agency or political subdivision thereof.

 

“Preferred Units” has the meaning set forth in the LLC
Agreement.

 

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“Public Offering” means an initial public offering registered
under the Securities Act of equity securities of the LLC.

 

“Public Sale” means any sale of Units to the public pursuant to
an offering registered under the Securities Act or to the public effected
through a broker, dealer or market maker pursuant to the provisions of
Rule 144 under the Securities Act.

 

“Registration Rights Agreement” means that certain Registration
Rights Agreement, dated as of the date hereof, by and among the LLC and the
Initial Parties, as in effect from time to time.

 

“Required Members” means, as of any date, the approval, request
or consent of both (i) the holders of a majority of the BRS Units (as
defined in the LLC Agreement) and (ii) the holders of a majority of the
Castle Harlan Units (as defined in the LLC Agreement); provided, however,
that as of any date after December 31, 2007, solely for purposes of Section 3
hereof; “Required Members” shall mean the approval, request or consent of
either (x) the holders of a majority of the BRS Units (as defined in the
LLC Agreement) or (y) the holders of a majority of the Castle Harlan Units
(as defined in the LLC Agreement).

 

“Sale of the LLC” means the sale of the LLC, including in one or
more series of related transactions, to an Independent Third Party or group of
Independent Third Parties pursuant to which such party or parties acquire
(i) equity securities of the LLC constituting a majority of the Common
Units of the LLC (whether by merger, consolidation, sale or transfer of the
LLC’s outstanding interests or Units, or otherwise) or (ii) all or
substantially all of the LLC’s consolidated assets.

 

“Securities Act” means the Securities Act of 1933, as
amended from time to time.

 

“Subscription Agreement” has the meaning set forth in the first
Whereas clause hereof.

 

“Subsidiary” means, with respect to any Person, any corporation,
limited liability company, partnership, association or other business entity of
which (i) if a corporation, a majority of the total voting power of shares
of stock entitled (without regard to the occurrence of any contingency) to vote
in the election of directors, managers or trustees thereof is at the time owned
or controlled, directly or indirectly, by that Person or one or more of the
other Subsidiaries of that Person or a combination thereof; or (ii) if a
limited liability company, partnership, association or other business entity, a
majority of the partnership or other similar ownership interests thereof is at
the time owned or controlled, directly or indirectly, by any Person or one or
more Subsidiaries of that Person or a combination thereof.  For purposes hereof, a Person or Persons
shall be deemed to have a majority ownership interest in a limited liability
company, partnership, association or other business entity if such Person or
Persons shall be allocated a majority of limited liability company,
partnership, association or other business entity gains or losses or shall be
or control the managing director, general partner or similar controlling Person
of such limited liability company, partnership, association or other business
entity.

 

5

 

“Transaction Documents” means the following agreements:  this Agreement, the LLC Agreement, the
Registration Rights Agreement, the Subscription Agreement, the Stock Purchase
Agreement and the Bell Atlantic Letter Agreement.

 

“Unit” has the meaning set forth in the LLC Agreement, and shall
include any Units (including, without limitation, the Common Equity and
Preferred Units) issued or issuable to, or owned by, the Members on the date
hereof, and any other equity securities of the LLC acquired by, or issued or
issuable to, the Members on or after the date hereof.  For purposes of this Agreement, a Person will be deemed to be a
holder of Units whenever such Person has the right to acquire directly or
indirectly such Units (upon conversion or exercise in connection with a
transfer of securities or otherwise, but disregarding any restrictions or
limitations upon the exercise of such right), whether or not such acquisition
has actually been effected.  For the
avoidance of doubt, a holder of any of the Warrants shall be deemed to be a holder
of Units (whether or not such Warrants have actually been exercised).

 

“Unitholder” means any Member in its capacity as owner of one or
more Units as reflected on the LLC’s books and records.

 

“Warrant Units” means, as of the date of determination, the
Class A-2 Units and Preferred Units issued or issuable upon the exercise of the
Warrants (whether or not exercised) as of such date; provided, however,
that securities shall cease to be Warrant Units when they have been transferred
in a Public Sale.

 

2.                                       Restrictions
on Transfer of Units.  No Unitholder
or other holder of Units shall sell, transfer, assign, pledge or otherwise
dispose of (each, a “Transfer”) any interest in any Units except in
accordance with Sections 2, 3 and 5 hereof and the terms and
conditions of the LLC Agreement; provided, however, that a change
in any trustee or fiduciary for the Bell Atlantic Master Trust shall not be
deemed to be a “Transfer” for purpose of this Agreement.

 

(a)                                  First
Offer Rights.  At least 20 days
prior to any Transfer of any Units by a Unitholder (other than pursuant to an
Approved Sale, a Public Sale, or a Transfer to a Permitted Transferee in
accordance with Section 2(c)), the Unitholder making such Transfer
(the “Offering Unitholder”) shall deliver a written notice (the “Transfer
Notice”) to the LLC and to the Other Unitholders (such Other Unitholders,
the “Unitholder Offerees”), specifying in reasonable detail the number
and type of Units proposed to be transferred, the proposed purchase price
(which shall be payable solely in cash), the proposed transferee (if known) and
the other proposed terms and conditions of the Transfer.  The LLC may elect to purchase all (but not
less than all) of the Units proposed to be transferred, at the same price and
on the same terms and conditions set forth in the Transfer Notice, by
delivering written notice of such election to the Offering Unitholder and the
Unitholder Offerees within 15 days after the Transfer Notice has been
delivered to the LLC.  If the LLC has
not elected within such 15-day period to purchase all of the Units proposed to
be transferred, the Unitholder Offerees (together with the LLC) may elect to
purchase all or any (but, together with the LLC and the other Unitholder
Offerees, not less than all) of the Units to be transferred, at the same price
and on the same terms and conditions set forth in the Transfer Notice, by
delivering a written notice of such election to the Offering Unitholder within
20 days after the Transfer Notice has been delivered to the Unitholder
Offerees (the “Unitholder Option Period”).  If the Unitholder Offerees (together with the LLC if it has
elected to participate) have,

 

6

 

in the aggregate, elected to
purchase more than the number of Units set forth in the Transfer Notice, such
offered Units shall be allocated (i) first,
to the LLC in the amount that the LLC elected to purchase (if any), and
(ii) second, for each type
of Units to be transferred, among such Unitholder Offerees in accordance with
each such Unitholder Offeree’s proportionate ownership of such type of Units
owned by all of the Unitholder Offerees electing to participate in such
purchase; provided, that, for purposes of allocating such offered Units
among such Unitholder Offerees, if any such Units held by such Unitholder
Offerees are subject to vesting pursuant to the terms of any Executive
Subscription Agreement or any other agreement between the LLC or any of its
Subsidiaries and any Unitholder, such Units shall be taken into account in
determining such proportionate ownership only if, and only to the extent that,
they have vested pursuant to the terms of such agreement.  If the LLC and/or the Unitholder Offerees do
not elect to purchase all of the Units specified in the Transfer Notice, then
the Offering Unitholder may transfer the Units specified in the Transfer Notice
to one or more transferee(s) at a price and on terms and conditions no more
favorable to the transferee(s) thereof than specified in the Transfer Notice
during the 60-day period immediately following the expiration of the Unitholder
Option Period, subject to Section 2(b).  Any Units not transferred within such 60-day period will be
subject to the provisions of this Section 2(a) upon subsequent
Transfer.

 

(b)                                 Tag
Along Rights.  Subject to Section 2(a)
hereof, at least 30 days prior to any Transfer of any type of Units by a
Unitholder (other than pursuant to an Approved Sale, a Public Sale, a Transfer
to the LLC and/or the Other Unitholders in accordance with Section 2(a)
hereof or a Transfer to a Permitted Transferee in accordance with Section 2(c)
hereof) that would result in such Unitholder having transferred after the date
hereof pursuant to this Section 2(b) more than 5% of the aggregate number
of such type of Units held by such Unitholder as of the date hereof, the
Unitholder making such a Transfer (the “Transferring Unitholder”) shall
deliver a written notice (the “Sale Notice”) to the LLC and the Other
Unitholders (other than the Executives), specifying in reasonable detail the
identity of the prospective transferee(s), the number and type of Units to be
transferred, and the terms and conditions of the Transfer.  Each Other Unitholder (other than the
Executives) may elect to participate in the contemplated Transfer by delivering
written notice to the Transferring Unitholder within 15 days after
delivery of the Sale Notice.  If any
Other Unitholder(s) has elected to participate in such Transfer, each of the
Transferring Unitholder and such Other Unitholder(s) (other than the
Executives) shall be entitled to sell in the contemplated Transfer, at the same
price and on the same terms and conditions, a number of the type of Units to be
transferred equal to the product of (i) the quotient determined by
dividing the percentage of such type of Units owned by such Person by the
aggregate percentage of such type of Units owned by the Transferring Unitholder
and all Other Unitholders participating in such Transfer and (ii) the
aggregate number of such type of Units to be sold in the contemplated Transfer;
provided, that, for purposes of determining the quotient under subclause
(i) of this sentence, if any such type of Units owned by any Person
participating in such Transfer are subject to vesting pursuant to the terms of
any Executive Subscription Agreement or any other agreement between the LLC or
any of its Subsidiaries and any Unitholder, such Units shall be taken into
account as Units owned by such Person only if, and only to the extent that,
they have vested pursuant to the terms of such agreement; provided, further,
that, notwithstanding the foregoing, (y) in connection with any Transfer
(or series of related Transfers) pursuant to this Section 2(b) that
would result in a Transfer of all or substantially all of the Common Units
(other than the Common Units held by the Executives), the Executives shall be
entitled to participate in such Transfer as “Other Unitholders” pursuant to

 

7

 

the terms and conditions of
this Section 2(b) and (z) no Transfer pursuant to this
Section 2(b) that would result in a Change in Control may be effected
unless Bell Atlantic is given the opportunity to sell all its Warrants and/or
Warrant Units on the same terms and conditions as the Other Unitholders
participating in such Transfer and, to the extent Bell Atlantic elects to sell
Warrants and/or Warrant Units pursuant to this subclause (z), the number
of the type of Units to be transferred by the Transferring Unitholder and the
Other Unitholders participating in such Transfer (other than Bell Atlantic)
shall be reduced on a pro rata
basis (based on the number of such type of Units the Transferring Unitholder
and such Other Unitholders would have been entitled to Transfer pursuant to
this Section 2(b) if this subclause (z) did not apply).  Each Unitholder transferring Units pursuant
to this Section 2(b) shall pay its pro
rata share (based on the number of each type of Units to be sold) of
the expenses incurred by the Unitholders in connection with such Transfer and
shall be obligated to join on a pro rata
basis (based on the number of each type of Units to be sold) in any
indemnification or other obligations that the Transferring Unitholder agrees to
provide in connection with such Transfer (other than any such obligations that
relate specifically to a particular Unitholder, such as indemnification with
respect to representations and warranties given by a Unitholder regarding such
Unitholder’s title to and ownership of Units).

 

(c)                                  Permitted
Transfers.  The restrictions
contained in this Section 2 shall not apply with respect to any
Transfer of Units by any Unitholder (i) in the case of an individual
Unitholder, pursuant to applicable laws of descent and distribution or to any
member of such Unitholder’s Family Group, (ii) in the case of an Investor
Unitholder, (A) to its Affiliates, and its and such Affiliate’s directors,
employees and consultants, (B) if such Person is a partnership or a
limited liability company, to its partners or members pursuant to the terms and
conditions of its partnership, limited liability company or other
organizational documents, (C) to any employee or Advisor of the LLC or any
Affiliate of the LLC, (iii) in the case of an Executive, upon the prior
written consent of the Required Members, to BRS and/or Castle Harlan and
(iv) in the case of BRS and Castle Harlan, pursuant to a sale of
Class A-I Units and Preferred Units to certain Executives; provided,
that the restrictions contained in this Section 2 shall continue to
be applicable to such Units and to such Permitted Transferees after any such
Transfer; provided  further, that the transferees of such Units
shall have agreed in writing to be bound (x) by the provisions of this
Agreement that affect the Units so transferred by executing a joinder
substantially in the form attached hereto as Exhibit A and
(y) by the provisions of the LLC Agreement.  All transferees permitted under this Section 2(c) are
collectively referred to herein as “Permitted Transferees.”

 

(d)                                 Retention
of Executive Units.  Notwithstanding
Section 2(a) hereof, no Executive (and no Permitted Transferees of
any Executive) shall Transfer any interest in any Units held by such Executive
(whether such interest in any Units is held on the date hereof or hereafter
acquired) without the prior written consent of the Required Members, except
that such Executive (and its Permitted Transferees) may Transfer any such
interest in any Units (i) pursuant to an Approved Sale or a Public Sale
other than sales to the public pursuant to Rule 144 under the Securities
Act and (ii) pursuant to the terms and conditions of Sections 2(b)
and 2(c) hereof; provided, however, that in the event of a
Transfer to BRS and/or Castle Harlan pursuant to Section 2(c)(iii)
hereof, the restrictions contained in this Section 2(d) shall not
apply to BRS and/or Castle Harlan.

 

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(e)                                  Further
Restrictions.  As a condition
precedent to any Transfer pursuant to this Section 2 (except for
any Transfer pursuant to Section 2(c)), any transferee who is not
party to this Agreement (i) shall have agreed in writing to be bound by
the provisions of this Agreement by executing a joinder substantially in the
form attached hereto as Exhibit A, and (ii) shall have been
admitted as a member of the LLC pursuant to the terms and conditions of the LLC
Agreement.

 

3.                                       Approved
Sale; Initial Public Offering.

 

(a)                                  Procedure.  In the event of, and in connection with, an
Approved Sale, each Unitholder will consent to and raise no objections to the
Approved Sale or the process pursuant to which the Approved Sale was
arranged.  If the Approved Sale is
structured as a merger or consolidation, each of the Unitholders will waive any
dissenter’s rights, appraisal rights or similar rights in connection with such
merger or consolidation.  If the
Approved Sale is structured as a sale of Units (whether by merger,
consolidation, reorganization or otherwise), each of the Unitholders will sell
all of his or its Units and rights to acquire Units on the terms and conditions
approved by the Board of Advisors and the Approving Holders and on the same
terms and conditions as the Approving Holders. 
If the Approved Sale is structured as a sale of assets, each of the
Unitholders will take all actions necessary to cause a liquidation of the LLC
following the consummation of such Approved Sale.  Each Unitholder will take all necessary and desirable actions as
directed by the Board of Advisors and the Approving Holders in connection with
the consummation of any Approved Sale (except as otherwise may be agreed
pursuant to the Bell Atlantic Letter Agreement), including, without limitation,
executing the applicable purchase agreement and joining on a pro rata basis (based on the proportion of
the total consideration received by all Unitholders) in any indemnification in
connection with the Approved Sale (other than any such obligations that relate
specifically to a particular Unitholder such as indemnification with respect to
representations and warranties given by a Unitholder regarding such Unitholder’s
title to or ownership of Units). 
Notwithstanding anything to the contrary in this Section 3(a),
(i) no Unitholder shall be obligated in connection with the Approved Sale
to pay (whether by indemnity to the transferees, by contribution as set forth
in the last sentence of this Section 3(a), or by a combination
thereof) an amount in excess of the net cash proceeds paid to such Unitholder
in connection with the Approved Sale, and (ii) no Unitholder shall be
required to make any representation or warranty in connection with any Approved
Sale other than the customary representations and warranties as to such
Unitholder’s title, ownership and authority to transfer, free of liens, claims
and encumbrances, the Units to be transferred. 
Each Unitholder required to make indemnification payments in connection
with any Approved Sale shall have a right to recover from the Other Unitholders
to the extent that the amount required to be paid by such Unitholder was
disproportionate to the proportion of the total consideration received by all
Unitholders, compared to the consideration actually received by such
Unitholder.

 

(b)                                 Consideration.  The obligations of the Unitholders with
respect to the Approved Sale are also subject to the satisfaction of the
following conditions:  (x) the
consideration received in an Approved Sale shall be distributed among the
Unitholders in the manner that such proceeds would be distributed in a complete
liquidation of the LLC pursuant to the rights and preferences set forth in the
LLC Agreement as in effect immediately prior to such Approved Sale; and
(y) all holders of then currently exercisable rights, if any, to acquire,
directly

 

9

 

or indirectly, any Units will
be given an opportunity either to (A) exercise such rights prior to the
consummation of the Approved Sale and participate in such sale as Unitholders
or (B) receive in exchange for such rights, following the consummation of
the Approved Sale, consideration equal to the amount determined by multiplying
(1) the same amount of consideration per Unit receivable by the
Unitholders in connection with the Approved Sale less the exercise price,
conversion price or any other consideration per Unit payable upon exercise or
conversion of such right to acquire, directly or indirectly, such Unit by
(2) the number of Units represented by such rights.

 

(c)                                  Purchaser
Representative.  If the LLC or the
Required Members enter into any negotiation or transaction for which
Rule 506 promulgated under the Securities Act (or any similar rule then in
effect) may be available with respect to such negotiation or transaction
(including a merger, consolidation or other reorganization), the Unitholders
who are not accredited investors (as such term is defined in Rule 501(a)
promulgated under the Securities Act) will, at the request of the Required
Members or the Board of Advisors, appoint a purchaser representative (as such
term is defined in Rule 501 promulgated under the Securities Act) reasonably
acceptable to the Required Members or the Board of Advisors.  If any Unitholder appoints the purchaser
representative designated by the Required Members or the Board of Advisors, the
LLC will pay the fees of such purchaser representative, but if any Unitholder
declines to appoint the purchaser representative designated by the Required
Members or the Board of Advisors, such Unitholder will appoint another
purchaser representative (reasonably acceptable to the Required Members or the
Board of Advisors), and such Unitholder will be responsible for the fees of the
purchaser representative so appointed.

 

(d)                                 Expenses.  Each Unitholder (or other Persons receiving
consideration pursuant to Section 3(b) above) will bear its pro
rata share (based upon the aggregate proceeds received by such Unitholder) of
the costs of any sale of Units pursuant to an Approved Sale to the extent such
costs are incurred for the benefit of all Unitholders and are not otherwise
paid by the LLC or the acquiring party. 
Costs incurred by any Unitholder on its own behalf will not be
considered costs of the transaction hereunder.

 

(e)                                  Initial
Public Offering.  In the event of a
Public Offering that is an underwritten offering with respect to which the
managing underwriters advise the LLC that in their opinion the capital
structure of the LLC may adversely affect the marketability of the offering,
the Unitholders will vote for a recapitalization and/or exchange of the Units
into securities (the “Reclassified Securities”) that the managing
underwriters and the Board of Advisors find acceptable and will take such
actions as reasonably required in connection with such recapitalization and/or
exchange; provided, that the Reclassified Securities provide each
Unitholder with the same relative economic interest as such Unitholder had
prior to such recapitalization and/or exchange and are consistent with the
relative rights and preferences set forth in the LLC Agreement as in effect
immediately prior to such Public Offering; provided  further, that
the provisions of this Agreement, the LLC Agreement (to the extent applicable)
and the Registration Rights Agreement shall apply to the Reclassified
Securities and the issuer thereof as such provisions apply to the Units and the
LLC, mutatis mutandis.

 

4.                                       Legend.  The Units have not been registered under the
Securities Act and, therefore, in addition to the other restrictions on
Transfer contained in this Agreement, cannot be

 

10

 

sold unless subsequently
registered under the Securities Act or an exemption from such registration is
then available.  To the extent such
Units have been certificated, each certificate evidencing Units and each
certificate issued in exchange for or upon the Transfer of any Units shall be
stamped or otherwise imprinted with a legend in substantially the following
form:

 

“THE SECURITIES
REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED ON AUGUST 22, 2001,
AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), OR UNDER ANY STATE SECURITIES LAWS, AND MAY NOT BE SOLD, PLEDGED,
HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE ACT OR AN EXEMPTION FROM REGISTRATION
THEREUNDER AND COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES REPRESENTED BY THIS
CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER SPECIFIED
IN THAT CERTAIN MEMBERS AGREEMENT, DATED AS OF AUGUST 22, 2001, AS AMENDED
AND MODIFIED FROM TIME TO TIME, AMONG MCCORMICK & SCHMICK HOLDINGS, LLC
(THE “COMPANY”) AND CERTAIN OTHER PARTIES THERETO, AND IN THAT CERTAIN AMENDED
AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT OF THE COMPANY, DATED AS OF
AUGUST 22, 2001, AS AMENDED AND MODIFIED FROM TIME TO TIME, AMONG THE
COMPANY AND CERTAIN OTHER PARTIES THERETO, AND THE COMPANY RESERVES THE RIGHT
TO REFUSE THE TRANSFER OF SUCH SECURITIES UNTIL SUCH CONDITIONS HAVE BEEN
FULFILLED WITH RESPECT TO SUCH TRANSFER. 
A COPY OF SUCH CONDITIONS SHALL BE FURNISHED BY THE COMPANY TO THE
HOLDER HEREOF UPON WRITTEN REQUEST AND WITHOUT CHARGE.”

 

The LLC shall imprint such legend on
certificates (if any) evidencing Units. 
The legend set forth above shall be removed from the certificates (if
any) evidencing any Units which cease to be Units in accordance with the
definition thereof.  Notwithstanding the
foregoing to the extent the Units are not certificated, the LLC Agreement will
contain a legend in substantially the form stated above.

 

5.                                       Transfer
of Units.

 

(a)                                  Units
are transferable only pursuant to (i) public offerings registered under
the Securities Act, (ii) subject to the provisions of Section 2
above, Rule 144 or Rule 144A (or any similar rule or rules then in
effect) of the Securities and Exchange Commission if such rule is available, or
(iii) subject to Sections 2, 3 and 5(b) hereof and the terms
and conditions of the LLC Agreement, any other legally available means of
Transfer; provided, however, that a change in any trustee or
fiduciary for the Bell Atlantic Master Trust shall not be deemed to be a Transfer
for purposes of this Agreement.

 

11

 

(b)                                 In
connection with the Transfer of any Units other than a Transfer described in
clause (i) or (ii) of Section 5(a) above, the holder thereof
shall deliver written notice to the LLC describing in reasonable detail the
Transfer or proposed Transfer, together with such legal opinions as the Board
of Advisors shall reasonably request (if any) to the effect that such Transfer
of Units may be effected without registration of such Units under the
Securities Act (which legal opinions shall be reasonably acceptable to the
LLC).  In addition, if the holder of the
Units delivers to the LLC an opinion of counsel that no subsequent Transfer of
such Units shall require registration under the Securities Act, the LLC shall
promptly upon such contemplated Transfer deliver new certificates for such
Units that do not bear the first sentence of the legend set forth in Section 4
above.  If the LLC is not required to
deliver new certificates for such Units not bearing such sentence of such
legend, the holder thereof shall not consummate a Transfer of the same until
the prospective transferee has confirmed to the LLC in writing its agreement to
be bound by the conditions contained in this Section 5 and Section 4
above.

 

(c)                                  Upon
the request of a holder of Units, the LLC shall promptly supply to such Person
or its prospective transferees all information regarding the LLC required to be
delivered in connection with a Transfer pursuant to Rule 144A (or any
similar rule or rules then in effect) of the Securities and Exchange
Commission.

 

(d)                                 Upon
the request of any Unitholder, the LLC shall remove the first sentence of the
legend set forth in Section 4 above from the certificates for such
Unitholder’s Units; provided, that such Units are eligible for sale
pursuant to Rule 144(k) (or any similar rule or rules then in effect) of
the Securities and Exchange Commission.

 

(e)                                  Any
Transfer or attempted Transfer of any Units in violation of any provision of
this Agreement shall be null and void, and the LLC shall not record such
Transfer on its books or treat any purported transferee of such Units as the
owner thereof for any purpose.

 

6.                                       Preemptive
Rights.  If the LLC authorizes the
issuance or sale of any Units or any securities containing options or rights to
acquire any Units or any securities convertible or exchangeable for Units in
each case, after the date hereof (other than a Permitted Issuance), the LLC
will offer to sell to each Unitholder a number of such securities (“Offered
Units”) so that the Ownership Ratio immediately after the issuance of such
securities for each Unitholder would be equal to the Ownership Ratio for such
Unitholder immediately prior to such issuance of securities.  The LLC shall give each Unitholder at least
20 days prior written notice of any proposed issuance, which notice shall
disclose in reasonable detail the proposed terms and conditions of such
issuance (the “Issuance Notice”). 
Each Unitholder will be entitled to purchase such securities at the same
price, on the same terms and conditions, and at the same time as the securities
are issued by delivery of written notice to the LLC of such election within
15 days after delivery of the Issuance Notice (the “Election Notice”);
provided, that if more than one type of security was issued, each
Unitholder shall, if it exercises its rights pursuant to this Section 6,
purchase such securities in the same ratio as issued.  If any of the Unitholders have elected to purchase any Offered
Units, the sale of such Units shall be consummated at such date and time as
indicated by the LLC.  In the event any
Unitholder elects not to exercise its rights pursuant to this Section 6,
no other Unitholder shall have the right to purchase the securities offered to
such Unitholder.

 

12

 

7.                                       Termination.  This Agreement will automatically terminate
and be of no further force or effect immediately after the consummation of an
Approved Sale.

 

8.                                       Amendment
and Waiver.  Except as otherwise
provided herein, no modification, amendment or waiver of any provision of this
Agreement shall be effective unless such modification, amendment or waiver is
approved in writing by both the LLC and the Required Members; provided,
that any such modification, amendment or waiver that adversely affects one
Member and is prejudicial to such Member relative to all other Members cannot
be effected without the consent of such Member.  For the avoidance of doubt, the addition to this Agreement of
another party who both becomes a member of the LLC pursuant to the terms and
conditions of the LLC Agreement and executes a joinder in the form attached
hereto as Exhibit A is not an action that, in and of itself,
requires a modification or amendment to this Agreement.  The failure of any party to enforce any of
the provisions of this Agreement shall in no way be construed as a waiver of
such provisions and shall not affect the right of such party thereafter to
enforce each and every provision of this Agreement in accordance with its
terms.

 

9.                                       Severability.  Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable law or
rule in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provision or any other jurisdiction, but this Agreement
shall be reformed, construed and enforced in such jurisdiction as if such
invalid, illegal or unenforceable provision had never been contained herein.

 

10.                                 Entire
Agreement.  Except as otherwise
expressly set forth herein, this Agreement and the other Transaction Documents
embody the complete agreement and understanding among the parties hereto with
respect to the subject matter hereof and supersede and preempt any prior
understandings, agreements or representations by or among the parties, written
or oral, that may have related to the subject matter hereof in any way.

 

11.                                 Successors
and Assigns.  Except as otherwise
provided herein, this Agreement shall bind and inure to the benefit of and be
enforceable by the LLC and its successors and assigns and the Members and any
subsequent holders of Units and the respective successors and assigns of each
of them, so long as they hold Units.

 

12.                                 Counterparts.  This Agreement may be executed in separate
counterparts each of which shall be an original and all of which taken together
shall constitute one and the same agreement.

 

13.                                 Remedies.  The parties hereto shall be entitled to
enforce their rights under this Agreement specifically to recover damages by
reason of any breach of any provision of this Agreement and to exercise all other
rights existing in their favor.  The
parties hereto agree and acknowledge that money damages may not be an adequate
remedy for any breach of the provisions of this Agreement and that the LLC, and
any Unitholder may in his, hers, or its sole discretion apply to any court of
law or equity of competent jurisdiction for specific performance and/or
injunctive relief (without posting a bond or other security) in order to
enforce or prevent any violation of the provisions of this Agreement.

 

13

 

14.                                 Notices.  All notices, demands and other
communications to be given or delivered under or by reason of provisions under
this Agreement (a) shall be in writing, (b) must be delivered via a
nationally recognized overnight delivery service (delivery charges prepaid) or
via facsimile along with written confirmation, and (c) shall be effective
only upon actual receipt by the recipient. 
All such notices, demands and other communications shall be sent
(i) in the case of any Member or Unitholder, to the addresses or facsimile
numbers set forth in Schedule I hereto or to such other addresses
or facsimile numbers as have been supplied in writing to the LLC and
(ii) in the case of the LLC, to McCormick & Schmick Holdings,
LLC, c/o Castle Harlan with a copy to BRS.

 

15.                               Governing
Law.  All issues and questions
concerning the application, construction, validity, interpretation and
enforcement of this Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware and the Delaware Limited Liability
Company Act, Delaware Code, Title 6, Sections 18-101, et. seq.,
as in effect from time to time., without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of Delaware or any
other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of Delaware.

 

16.                                 Jurisdiction
and Venue.  ALL JUDICIAL PROCEEDINGS
BROUGHT BY OR AGAINST THE LLC OR THE MEMBERS WITH RESPECT TO THIS AGREEMENT,
ANY OTHER AGREEMENT CONTEMPLATED HEREBY OR ANY TRANSACTIONS CONTEMPLATED HEREBY
OR THEREBY SHALL BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT
JURISDICTION IN THE STATE OF DELAWARE. 
BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE LLC AND EACH MEMBER
ACCEPT FOR ITSELF AND HIMSELF AND IN CONNECTION WITH ITS OR HIS RESPECTIVE
PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE
AFORESAID COURTS, AND IRREVOCABLY AGREE TO BE BOUND BY ANY JUDGMENT RENDERED
THEREBY IN CONNECTION WITH THIS AGREEMENT. 
THE LLC AND EACH MEMBER HEREBY WAIVE ANY CLAIM THAT SUCH JURISDICTION IS
AN INCONVENIENT FORUM OR AN IMPROPER FORUM BASED ON LACK OF VENUE.

 

17.                                 Waiver
of Jury Trial.  THE LLC AND EACH
MEMBER HEREBY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY
IN ANY LITIGATION IN ANY COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING
OUT OF THIS AGREEMENT OR THE VALIDITY, PROTECTION, INTERPRETATION OR
ENFORCEMENT THEREOF.  THE LLC AND EACH
MEMBER AGREE THAT THIS SECTION IS A SPECIFIC AND MATERIAL ASPECT OF THIS
AGREEMENT AND WOULD NOT ENTER INTO THIS AGREEMENT IF THIS SECTION WERE NOT
PART OF THIS AGREEMENT.

 

18.                                 Descriptive
Headings.  The descriptive headings
of this Agreement are inserted for convenience only and do not constitute a
part of this Agreement.

 

* * * * *

 

14

 

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

 

	
   

  	
  MCCORMICK & SCHMICK HOLDINGS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DOUGLAS L. SCHMICK

  
	
   

  	
  Its:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  BRUCKMANN, ROSSER, SHERRILL & CO. II,
  L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BRSE, L.L.C.

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ STEPHEN F. EDWARDS

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CASTLE HARLAN PARTNERS III, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  Castle Harlan, Inc.

  
	
   

  	
  Its: 

  	
  Investment Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DAVID B. PITTAWAY

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ STEPHEN F. EDWARDS

  
	
   

  	
  Julie Frist

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ STEPHEN F. EDWARDS

  
	
   

  	
  Marilena Tibrea

  

 

15

 

	
   

  	
  /s/ DAVID B. PITTAWAY

  
	
   

  	
  David B. Pittaway

  
	
   

  	
   

  	
   

  
	
   

  	
  MELLON BANK, N.A., solely in its capacity
  as Trustee for The Bell Atlantic Master Trust (as directed by Verizon
  Investment Management Corp.), and not in its individual capacity

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ CAROLE BRUNO

  
	
   

  	
  Its:

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  BANCBOSTON CAPITAL INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JASON HURD

  
	
   

  	
  Its:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  IBJ WHITEHALL CAPITAL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ KEVIN P. FLAVEY

  
	
   

  	
  Its:

  	
   

  

 

16

 

	
   

  	
  /s/ RICHARD F. BURKE, JR.

  
	
   

  	
  Richard F. Burke, Jr.

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ ROBERT A. ENGLE

  
	
   

  	
  Robert A. Engle

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ MARY PRICE GAY

  
	
   

  	
  Mary Price Gay

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ ELLIOTT H. JONES

  
	
   

  	
  Elliott H. Jones

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ PHILLIP KRALL

  
	
   

  	
  Phillip Krall

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ H. CONRAD MEYER

  
	
   

  	
  H. Conrad Meyer

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ CHARLES G. PHILLIPS

  
	
   

  	
  Charles G. Phillips

  
	
   

  	
   

  	
   

  
	
   

  	
  PHILLIPS FAMILY FOUNDATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ CHARLES G. PHILLIPS

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ CANDACE R. PHILLIPS

  
	
   

  	
  Its:

  	
   

  

 

17

 

	
   

  	
  /s/ CRAIG J. PISANI

  
	
   

  	
  Craig J. Pisani

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ JAMES R. RAITH, JR.

  
	
   

  	
  James R. Raith, Jr.

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ TOM STEIGLEHNER

  
	
   

  	
  Tom Steiglehner

  

 

18

 

SCHEDULE
I

LIST OF MEMBERS

 

	
  Initial Parties:

  	
   

  
	
  Bruckmann, Rosser, Sherrill & Co. II,
  L.P.

  	
  With copies (which shall not constitute
  notice) to:

  
	
  126 East 56th Street

  	
   

  
	
  New York, NY 10022

  	
  Kirkland & Ellis

  
	
  Facsimile:                                            (212)
  521-3799

  	
  Citigroup Center

  
	
  Attention:                                         Harold
  O. Rosser

  	
  153 East 53rd Street

  
	
  Rice Edmonds

  	
  New York, NY 10022

  
	
  Jamie Moore

  	
  Facsimile: (212) 446-4900

  
	
   

  	
  Attention: Kimberly P. Taylor

  
	
   

  	
   

  
	
  Castle Harlan Partners III, L.P.

  	
  With copies (which shall not constitute
  notice) to:

  
	
  150 East 58th St.,

  	
   

  
	
  New York, NY 10155

  	
  Schulte Roth & Zabel LLP

  
	
  Facsimile:                                            (212)
  207-8042

  	
  919 Third Avenue

  
	
  Attention:                                         David
  B. Pittaway

  	
  New York, NY 10022

  
	
  Justin
  Wender

  	
  Facsimile: (212) 593-5955

  
	
   

  	
  Attention: Michael R. Littenberg

  
	
   

  	
   

  
	
  Julie Frist

  	
  With copies (which shall not constitute
  notice) to:

  
	
  c/o Bruckmann, Rosser, Sherrill &
  Co. II, L.P.

  	
   

  
	
  126 East 56th Street

  	
  Kirkland & Ellis

  
	
  New York, NY 10022

  	
  Citigroup Center

  
	
  Facsimile:                                            (212)
  521-3799

  	
  153 East 53rd Street

  
	
  Attention:                                         Julie
  Frist

  	
  New York, NY 10022

  
	
   

  	
  Facsimile: (212) 446-4900

  
	
   

  	
  Attention: Kimberly P. Taylor

  
	
   

  	
   

  
	
  Marilena Tibrea

  	
  With copies (which shall not constitute
  notice) to:

  
	
  c/o Brockman, Rosser, Sherrill &
  Co. II, L.P.

  	
   

  
	
  126 East 56th Street

  	
  Kirkland & Ellis

  
	
  New York, NY 10022

  	
  Citigroup Center

  
	
  Facsimile:                                            (212)
  521-3799

  	
  153 East 53rd Street

  
	
  Attention:                                         Marilena
  Tibrea

  	
  New York, NY 10022

  
	
   

  	
  Facsimile: (212) 446-4900

  
	
   

  	
  Attention: Kimberly P. Taylor

  
	
   

  	
   

  
	
  David B. Pittaway

  	
  With copies (which shall not constitute
  notice) to:

  
	
  c/o Castle Harlan Partners III, L.P.

  	
   

  
	
  150 East 58th St.,

  	
  Schulte Roth & Zabel LLP

  
	
  New York, NY 10155

  	
  919 Third Avenue

  
	
  Facsimile:                                            (212)
  207-8042

  	
  New York, NY 10022

  
	
  Attention:                                         David
  B. Pittaway

  	
  Facsimile: (212) 593-5955

  
	
   

  	
  Attention: Michael R. Littenberg

  

 

1

 

	
  Bell Atlantic Master Trust

  	
  With copies (which shall not constitute
  notice) to:

  
	
  c/o Mellon Bank, N.A.

  	
   

  
	
  One Mellon Bank Center

  	
  Ropes & Gray

  
	
  Room 3346

  	
  One International Place

  
	
  Pittsburgh, Pennsylvania 15258-001

  	
  Boston, Massachusetts 02110

  
	
  Facsimile:
  (412) 236-4225

  	
  Facsimile: (617) 951-7050

  
	
  Attention:
  Francis Walton

  	
  Attention: Ann Milner

  
	
   

  	
   

  
	
   

  	
  Verizon Investment Management Corp.

  
	
   

  	
  695 Main Street

  
	
   

  	
  Suite 600

  
	
   

  	
  Stamford, Connecticut 06901

  
	
   

  	
  Facsimile: (203) 965-3300

  
	
   

  	
  Attention: Conrad Francis

  
	
   

  	
   

  
	
   

  	
  Verizon Investment Management Corp.

  
	
   

  	
  695 Main Street

  
	
   

  	
  Suite 600

  
	
   

  	
  Stamford, Connecticut 06901

  
	
   

  	
  Facsimile: (203) 965-2243

  
	
   

  	
  Attention: Bruce Franzese

  
	
   

  	
   

  
	
  BancBoston Capital Inc.

  	
  With copies (which shall not constitute
  notice) to:

  
	
  175 Federal Street

  	
   

  
	
  10th floor

  	
  BancBoston Capital Inc.

  
	
  Boston, MA 02110

  	
  175 Federal Street,

  
	
  Fax: (617)
  434-1153

  	
  10th floor

  
	
  Attention:
  Jason Hurd

  	
  Boston, MA 02110

  
	
   

  	
  Fax: (617) 434-1153

  
	
   

  	
  Attention: Deirdre A. Cunnane

  
	
   

  	
   

  
	
  IBJ Whitehall Capital Corporation

  	
  With a copy (which shall not constitute
  notice) to:

  
	
  One State Street

  	
   

  
	
  New York, NY 10004

  	
  Sonnenschein Nath & Rosenthal

  
	
  Facsimile:
  (212) 858-2400

  	
  1221 Avenue of the Americas, 24th Floor

  
	
  Attention:
  Kevin Falvey

  	
  New York, NY 10020-1089

  
	
   

  	
  Facsimile: (212) 768-6800

  
	
   

  	
  Attention: Clement B. Wood

  
	
   

  	
   

  
	
  Richard F. Burke, Jr.

  	
   

  
	
  c/o Gleacher & Co.

  	
   

  
	
  660 Madison Avenue

  	
   

  
	
  New York, NY 10021

  	
   

  
	
  Facsimile: (212) 418-4598

  	
   

  
	
   

  	
   

  
	
  Robert A. Engel

  	
  With a copy (which shall not constitute
  notice) to:

  
	
  c/o Gleacher & Co.

  	
   

  
	
  660 Madison Avenue

  	
  Robert A. Engel

  
	
  New York, NY 10021

  	
  100 Upper Mountain Avenue

  
	
  Facsimile: (212) 418-4598

  	
  Montclair, NJ 07042

  

 

2

 

	
  Mary Price Gay

  	
   

  
	
  c/o Gleacher & Co.

  	
   

  
	
  660 Madison Avenue

  	
   

  
	
  New York, NY 10021

  	
   

  
	
  Facsimile: (212) 418-4598

  	
   

  
	
   

  	
   

  
	
  Elliott H. Jones

  	
   

  
	
  c/o Gleacher & Co.

  	
   

  
	
  660 Madison Avenue

  	
   

  
	
  New York, NY 10021

  	
   

  
	
  Facsimile: (212) 418-4598

  	
   

  
	
   

  	
   

  
	
  Phillip Krall

  	
   

  
	
  c/o Gleacher & Co.

  	
   

  
	
  660 Madison Avenue

  	
   

  
	
  New York, NY 10021

  	
   

  
	
  Facsimile: (212) 418-4598

  	
   

  
	
   

  	
   

  
	
  H. Conrad Meyer

  	
   

  
	
  c/o Gleacher & Co.

  	
   

  
	
  660 Madison Avenue

  	
   

  
	
  New York, NY 10021

  	
   

  
	
  Facsimile: (212) 418-4598

  	
   

  
	
   

  	
   

  
	
  Charles G. Phillips

  	
   

  
	
  c/o Gleacher & Co.

  	
   

  
	
  660 Madison Avenue

  	
   

  
	
  New York, NY 10021

  	
   

  
	
  Facsimile: (212) 418-4598

  	
   

  
	
   

  	
   

  
	
  Phillips Family Foundation

  	
   

  
	
  c/o Gleacher & Co.

  	
   

  
	
  660 Madison Avenue

  	
   

  
	
  New York, NY 10021

  	
   

  
	
  Facsimile: (212) 418-4598

  	
   

  
	
   

  	
   

  
	
  Craig J. Pisani

  	
   

  
	
  c/o Gleacher & Co.

  	
   

  
	
  660 Madison Avenue

  	
   

  
	
  New York, NY 10021

  	
   

  
	
  Facsimile: (212) 418-4598

  	
   

  
	
   

  	
   

  
	
  James R. Raith, Jr.

  	
   

  
	
  c/o Gleacher & Co.

  	
   

  
	
  660 Madison Avenue

  	
   

  
	
  New York, NY 10021

  	
   

  
	
  Facsimile: (212) 418-4598

  	
   

  
	
   

  	
   

  
	
  Tom Steiglehner

  	
   

  
	
  c/o Gleacher & Co.

  	
   

  
	
  660 Madison Avenue

  	
   

  
	
  New York, NY 10021

  	
   

  
	
  Facsimile: (212) 418-4598

  	
   

  

 

3

 

EXHIBIT A

 

FORM OF JOINDER TO

MEMBERS AGREEMENT

 

THIS JOINDER to the Members Agreement, dated as of
                    ,
2001, by and among McCormick & Schmick Holdings, LLC, a Delaware
limited liability company (the “LLC”), and certain Members of the LLC
(the “Agreement”), is made and entered into as of
                  
by and between the LLC and
                                      
(“Holder”).  Capitalized terms
used herein but not otherwise defined shall have the meanings set forth in the
Agreement.

 

WHEREAS, Holder has acquired certain Units and the Agreement and the
LLC requires Holder, as a Unitholder, to become a party to the Agreement, and
Holder agrees to do so in accordance with the terms hereof.

 

NOW, THEREFORE, in consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties to this Joinder hereby agree as
follows:

 

1.                                       Agreement
to be Bound.  Holder hereby agrees
that upon execution of this Joinder, it shall become a party to the Agreement
and shall be fully bound by, and subject to, all of the covenants, terms and
conditions of the Agreement as though an original party thereto and shall be
deemed a Unitholder for all purposes thereof. 
In addition, Holder hereby agrees that all Units held by Holder shall be
deemed Units for all purposes of the Agreement.

 

2.                                       Successors
and Assigns.  Except as otherwise
provided herein, this Joinder shall bind and inure to the benefit of and be
enforceable by the LLC and its successors and assigns and Holder and any
subsequent holders of Units and the respective successors and assigns of each
of them, so long as they hold any Units.

 

3.                                       Counterparts.  This Joinder may be executed in separate
counterparts each of which shall be an original and all of which taken together
shall constitute one and the same agreement.

 

4.                                       Notices.  For purposes of Section 14 of
the Agreement, all notices, demands or other communications to the Holder shall
be directed to:

 

[Name]

[Address]

[Facsimile Number]

 

5.                                       Governing Law.  All issues and questions concerning the application,
construction, validity, interpretation and enforcement of this Agreement shall
be governed by and construed in accordance with the laws of the State of
Delaware and the Act, without giving effect to any choice of law or conflict of
law provision or rule (whether of the State of Delaware or any other
jurisdiction) that would cause the application of the laws of any jurisdiction
other than the State of Delaware.

 

A-1

 

6.                                       Jurisdiction
and Venue.  ALL JUDICIAL PROCEEDINGS
BROUGHT BY OR AGAINST THE LLC OR THE HOLDER WITH RESPECT TO THIS AGREEMENT, ANY
OTHER AGREEMENT CONTEMPLATED HEREBY OR ANY TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY SHALL BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT
JURISDICTION IN THE STATE OF DELAWARE. 
BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE LLC AND THE HOLDER ACCEPT
FOR ITSELF AND HIMSELF AND IN CONNECTION WITH ITS OR HIS RESPECTIVE PROPERTIES,
GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID
COURTS, AND IRREVOCABLY AGREE TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN
CONNECTION WITH THIS AGREEMENT.  THE LLC
AND THE HOLDER HEREBY WAIVE ANY CLAIM THAT SUCH JURISDICTION IS AN INCONVENIENT
FORUM OR AN IMPROPER FORUM BASED ON LACK OF VENUE.

 

7.                                       Waiver
of Jury Trial.  THE LLC AND THE
HOLDER HEREBY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY
IN ANY LITIGATION IN ANY COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING
OUT OF THIS AGREEMENT OR THE VALIDITY, PROTECTION, INTERPRETATION OR
ENFORCEMENT THEREOF.  THE LLC AND THE
HOLDER AGREE THAT THIS SECTION IS A SPECIFIC AND MATERIAL ASPECT OF THIS
AGREEMENT AND WOULD NOT ENTER INTO THIS AGREEMENT IF THIS SECTION WERE NOT PART
OF THIS AGREEMENT.

 

8.                                       Descriptive
Headings.  The descriptive headings
of this Joinder are inserted for convenience only and do not constitute a part
of this Joinder.

 

* * * * *

 

A-2

 

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

 

	
   

  	
  MCCORMICK & SCHMICK HOLDINGS, LLC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [HOLDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  

 

A-3Exhibit 4.2

 

EXECUTION COPY

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), dated as of August 22, 2001,
by and among McCormick & Schmick Holdings, LLC, a Delaware limited
liability company (together with its successors, the “LLC”), Bruckmann,
Rosser, Sherrill & Co. II, L.P., a Delaware limited partnership (“BRS”),
Castle Harlan Partners III, L.P., a Delaware limited partnership (“Castle
Harlan”), Julie Frist (“Frist”), Marilena Tibrea (“Tibrea”),
David B. Pittaway (“Pittaway”), Mellon Bank, N.A., as trustee for
the Bell Atlantic Master Trust (“Bell Atlantic”), BancBoston Capital,
Inc., a Massachusetts corporation (“BancBoston”), IBJ Whitehall Capital
Corporation, a Delaware corporation (“IBJ”), Richard F. Burke, Jr. (“Burke”),
Robert A. Engel (“Engel”), Mary Price Gay (“Gay”),
Elliott H. Jones (“Jones”), Phillip Krall (“Krall”),
H. Conrad Meyer (“Meyer”), Charles G. Phillips (“Phillips”),
Phillips Family Foundation (“Phillips Foundation”), Craig J. Pisani (“Pisani”),
James R. Raith, Jr. (“Raith”), Tom Steiglehner (“Steiglehner”,
together with BancBoston, IBJ, Burke, Engel, Gay, Jones, Krall, Meyer,
Phillips, Phillips Foundation, Pisani and Raith, the “Investors”,
together with BRS, Castle Harlan, Frist, Tibrea, Pittaway and Bell Atlantic,
the “Initial Parties”), and each executive or other employee of the LLC
or any of its Subsidiaries who becomes a member of the LLC pursuant to the
terms and conditions of the LLC Agreement after the date hereof and executes a
joinder in the form attached hereto as Exhibit A (individually, an “Executive”,
and collectively, the “Executives”, together with the Initial Parties,
the “Members”, and each individually, a “Member”, as set forth on
Schedule I attached hereto (which Schedule I shall be amended
from time to time by the LLC to reflect the addition of any Members to this
Agreement)).  Capitalized terms used
herein but not otherwise defined have the meaning set forth in Section 1
below.

 

WHEREAS, the
Initial Parties (other than Bell Atlantic) have acquired a number of the LLC’s
Class A-I Units pursuant to that certain Subscription Agreement, dated as of
the date hereof, by and among the LLC and such parties (as in effect from time
to time, the “Subscription Agreement”);

 

WHEREAS, Bell
Atlantic has acquired that certain Class A-2 Common Units Purchase
Warrant (the “Warrant”) pursuant to that certain Stock and Warrant
Purchase Agreement, dated as of the date hereof, by and among Bell Atlantic,
McCormick & Schmick Acquisition Corp. II and the LLC (as in effect
from time to time, the “Stock Purchase Agreement”), which represent the
right to purchase a number of the LLC’s Class A-2 Units;

 

WHEREAS, it is
contemplated that certain Executives will (i) be issued a number of Class B
Units and Class C Units by the LLC pursuant to certain Executive Subscription
Agreements as soon as practicable after the date hereof and (ii) in connection
with such issuance, will become parties to this Agreement as Executives; and

 

WHEREAS, the
LLC has agreed to provide the registration rights set forth in this Agreement
to induce the Initial Parties to enter into the Subscription Agreement and the
Stock Purchase Agreement, respectively.

 

 

NOW,
THEREFORE, in consideration of the mutual covenants contained herein and other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties to this Agreement hereby agree as follows:

 

1.             Definitions.  As used herein, the following terms shall
have the following meanings.

 

“Affiliate”
shall mean, as to any Person, any other Person that directly or indirectly
controls, or is under common control with, or is controlled by, such
Person.  As used in this definition,
“control” (including, with its correlative meanings, “controlled by” and “under
common control with”) shall mean possession, directly or indirectly, of power
to direct or cause the direction of management or policies (whether through
ownership of securities or partnership or other ownership interests, by
contract or otherwise).

 

“BRS”
has the meaning set forth in the introductory paragraph hereof.

 

“BRS
Registrable Securities” means (i) any Common Units issued or issuable to
BRS, Frist or Tibrea pursuant to the Subscription Agreement, (ii) any Common
Units or other common equity securities of the LLC subsequently acquired by
BRS, any of its Affiliates, Frist or Tibrea, and (iii) any securities issued or
issuable directly or indirectly with respect to the securities referred to in
clauses (i) or (ii) above by way of recapitalization, merger, consolidation or
other reorganization, including a recapitalization or exchange.  As to any particular BRS Registrable
Securities, such securities shall cease to be BRS Registrable Securities when
they have been (x) distributed to the public pursuant to an offering registered
under the Securities Act, (y) sold to the public through a broker, dealer or
market maker in compliance with Rule 144 under the Securities Act (or any
similar rule then in force), or (z) acquired by any Executive.  For purposes of this Agreement, a Person
will be deemed to be a holder of BRS Registrable Securities whenever such
Person has the right to acquire directly or indirectly such BRS Registrable
Securities (upon conversion or exercise in connection with a transfer of securities
or otherwise, but disregarding any restrictions or limitations upon the
exercise of such right), whether or not such acquisition has actually been
effected.

 

“Castle
Harlan” has the meaning set forth in the introductory paragraph hereof.

 

“Castle Harlan
Registrable Securities” means (i) any Common Units issued or issuable to
Castle Harlan or Pittaway pursuant to the Subscription Agreement, (ii) any
Common Units or other common equity securities of the LLC subsequently acquired
by Castle Harlan, any of its Affiliates or Pittaway, and (iii) any securities
issued or issuable directly or indirectly with respect to the securities
referred to in clauses (i) or (ii) above by way of recapitalization, merger,
consolidation or other reorganization, including a recapitalization or
exchange.  As to any particular Castle
Harlan Registrable Securities, such securities shall cease to be Castle Harlan
Registrable Securities when they have been (x) distributed to the public pursuant
to an offering registered under the Securities Act, (y) sold to the public
through a broker, dealer or market maker in compliance with Rule 144 under the
Securities Act (or any similar rule then in force), or (z) acquired by any
Executive.  For purposes of this
Agreement, a Person will be deemed to be a holder of Castle Harlan Registrable
Securities whenever such Person has the right to acquire directly or indirectly
such Castle Harlan Registrable Securities (upon conversion or exercise in

 

2

 

connection
with a transfer of securities or otherwise, but disregarding any restrictions
or limitations upon the exercise of such right), whether or not such
acquisition has actually been effected.

 

“Class A
Units” means the Class A-1 Units and the Class A-2 Units.

 

“Class A-1
Units” has the meaning set forth in the LLC Agreement.

 

“Class A-2
Units” has the meaning set forth in the LLC Agreement.

 

“Class B Units”
has the meaning set forth in the LLC Agreement.

 

“Class C
Units” has the meaning set forth in the LLC Agreement.

 

“Common
Units” means the Class A Units, the Class B Units and the Class C Units.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Executive
Registrable Securities” means (i) any Common Units or other common equity
securities of the LLC acquired by the Executives, and (ii) any securities
issued or issuable directly or indirectly with respect to the securities
referred to in clause (i) above by way of recapitalization, merger,
consolidation or other reorganization, including a recapitalization or
exchange; provided, that if any such Common Units, common equity
securities or other securities are subject to vesting pursuant to the terms of
any Executive Subscription Agreement or any other agreement between the LLC or any
of its Subsidiaries and the Executive, such Common Units, common equity
securities or other securities shall be Executive Registrable Securities only
if, and only to the extent that, they have vested pursuant to the terms of such
agreement.  As to any particular
Executive Registrable Securities, such securities shall cease to be Executive
Registrable Securities when they have been distributed to the public pursuant
to an offering registered under the Securities Act or sold to the public
through a broker, dealer or market maker in compliance with Rule 144 under the
Securities Act (or any similar rule then in force).

 

“Executive
Subscription Agreement” means any Executive Subscription Agreement, entered
into after the date hereof, by and between the LLC and a certain Executive, as
in effect from time to time, by which the LLC issues, and such Executive
acquires, a number of the LLC’s Class B Units and/or Class C Units.

 

“Investor
Registrable Securities” means (i) any Common Units issued or issuable (A)
to Bell Atlantic (including, without limitation, Common Units issued or
issuable upon exercise of the Warrant (whether or not exercised)) or (B) to the
Investors pursuant to the Subscription Agreement, (ii) any Common Units or
other common equity securities of the LLC subsequently acquired by Bell
Atlantic or the Investors, and (ii) any securities issued or issuable directly
or indirectly with respect to the securities referred to in clause (i) or (ii)
above by way of recapitalization, merger, consolidation or other
reorganization, including a recapitalization or exchange.  As to any particular Investor Registrable
Securities, such securities shall cease to be Investor Registrable Securities
when they have been distributed to the public pursuant to an

 

3

 

offering
registered under the Securities Act or sold to the public through a broker,
dealer or market maker in compliance with Rule 144 under the Securities Act (or
any similar rule then in force).  For
purposes of this Agreement, a Person will be deemed to be a holder of Investor
Registrable Securities whenever such Person has the right to acquire directly
or indirectly such Investor Registrable Securities (upon conversion or exercise
in connection with a transfer of securities or otherwise, but disregarding any
restrictions or limitations upon the exercise of such right), whether or not
such acquisition has actually been effected.

 

“LLC
Agreement” means that certain Amended and Restated Limited Liability
Company Agreement of McCormick & Schmick Holdings, LLC, dated as of
the date hereof, by and among the LLC and each of the Initial Parties, as in
effect from time to time.

 

“Members”
has the meaning set forth in the introductory paragraph hereof.

 

“Members
Agreement” means that certain Members Agreement, dated as of the date
hereof, by and among the LLC and each of the Initial Parties, as in effect from
time to time.

 

“Person”
means an individual, a partnership, a corporation, an association, a joint
stock company, a limited liability company, a trust, a joint venture, an
unincorporated organization and a governmental entity or any department, agency
or political subdivision thereof

 

“Registrable
Securities” means, collectively, (i) BRS Registrable Securities,
(ii) Castle Harlan Registrable Securities, (iii) Executive Registrable
Securities and (iv) Investor Registrable Securities.

 

“Registration
Expenses” means (i) all expenses incident to the LLC’s performance of or
compliance with this Agreement, including, without limitation, all registration
and filing fees, fees and expenses of compliance with securities or blue sky
laws, printing expenses, messenger and delivery expenses, fees and
disbursements of counsel for the LLC and all independent certified public
accountants, underwriters (excluding discounts and commissions) and other
Persons retained by the LLC, transfer taxes, fees of transfer agents and
registrars and fees of the National Association of Securities Dealers, Inc. and
(ii) the reasonable fees and disbursements of one counsel for the holders of
Registrable Securities, which counsel shall be chosen by the Required Holders,
and counsel for BRS or Castle Harlan if its counsel is not counsel to the
holders of Registrable Securities.

 

“Required
Holders” means, as of any date, the approval, request or consent of both of
(i) the holders of a majority of the BRS Registrable Securities and (ii) the
holders of a majority of the Castle Harlan Registrable Securities.

 

“Rule 144”
means Rule 144 under the Securities Act (or any similar rule then in force).

 

“SEC”
means the Securities and Exchange Commission.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

4

 

“Subscription
Agreement” has the meaning set forth in the first Whereas clause hereof.

 

“Subsidiary”
means, with respect to any Person, any corporation, limited liability company,
partnership, association or other business entity of which (i) if a
corporation, a majority of the total voting power of shares of stock entitled
(without regard to the occurrence of any contingency) to vote in the election
of directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by that Person or one or more of the other Subsidiaries
of that Person or a combination thereof, or (ii) if a limited liability
company, partnership, association or other business entity, a majority of the
partnership or other similar ownership interests thereof is at the time owned
or controlled, directly or indirectly, by any Person or one or more
Subsidiaries of that Person or a combination thereof.  For purposes hereof, a Person or Persons shall be deemed to have
a majority ownership interest in a limited liability company, partnership,
association or other business entity if such Person or Persons shall be
allocated a majority of limited liability company, partnership, association or
other business entity gains or losses or shall be or control the managing
director, general partner or similar controlling Person of such limited
liability company, partnership, association or other business entity.

 

“Transaction
Documents” means the following agreements: 
this Agreement, the LLC Agreement, the Members Agreement, the
Subscription Agreement and the Stock Purchase Agreement.

 

2.             Demand
Registrations.

 

(a)           Requests for
Registration.  At any time and from
time to time, (i) the holders of a majority of the BRS Registrable Securities
may request registration, whether underwritten or otherwise, under the
Securities Act of all or part of the Registrable Securities held by such
holders, and (ii) the holders of a majority of the Castle Harlan Registrable
Securities may request registration, whether underwritten or otherwise, under
the Securities Act of all or part of the Registrable Securities held by such
holders, in each case on Form S-1 or any similar long-form registration
(collectively, “Long-Form Registrations”) or on Form S-2 or S-3
(including pursuant to Rule 415 under the Securities Act (a “415
Registration”)) or any similar short-form registration (collectively, “Short-Form
Registrations”), if available; provided, however, that, on or
prior to December 31, 2007, the initial public offering of the LLC may be
requested by a Demand Registration only if such registration is requested by
the Required Holders.  Each request for
a Long-Form Registration or Short-Form Registration shall specify the
approximate number of Registrable Securities requested to be registered.  Within 10 days after receipt of any
such request for a Long-Form Registration or Short-Form Registration, the LLC
will give written notice of such requested registration to all other holders of
Registrable Securities and will include (subject to Sections 2(d) and 8
of this Agreement) in such registration, all Registrable Securities with
respect to which the LLC has received written requests for inclusion therein
within 30 days after the receipt by such holders of the LLC’s notice; provided,
however, that Executive Registrable Securities shall be included in the
initial public offering of the LLC only if, and only to the extent that, the
managing underwriters advise the LLC in writing that in their opinion such
Executive Registrable Securities can be sold therein without adversely
affecting the marketability of the offering. 
All registrations requested pursuant to this Section 2(a)
are referred to herein as “Demand Registrations.”

 

5

 

(b)           Long-Form
Registrations.  Each of the holders
of a majority of the BRS Registrable Securities and the holders of a majority
of the Castle Harlan Registrable Securities will be entitled to request up to
three Long-Form Registrations with respect to the Registrable Securities held
by such holders in which the LLC will pay all Registration Expenses (the “Company-Paid
Long-Form Registrations”).  A
registration will not count as a Company-Paid Long-Form Registration until it
has become effective and unless the holders of Registrable Securities are able
to register and sell at least 90% of the Registrable Securities requested to be
included in such registration. 
Regardless of whether any Company-Paid Long-Form Registration becomes
effective or counts as one of the permitted Company-Paid Long-Form Registrations,
the LLC will pay all Registration Expenses incurred in connection with any
registration initiated as a Company-Paid Long-Form Registration.

 

(c)           Short-Form
Registrations.  In addition to the
Company-Paid Long-Form Registrations provided pursuant to Section 2(b),
each of the holders of the BRS Registrable Securities and the holders of the
Castle Harlan Registrable Securities will be entitled to request an unlimited
number of Short-Form Registrations with respect to the Registrable Securities
held by such holders in which the LLC will pay all Registration Expenses,
regardless of whether any such Short-Form Registration becomes effective.  Demand Registrations (other than 415
Registrations) will be Short-Form Registrations whenever the LLC is permitted
to use any applicable short form.  After
the LLC has become subject to the reporting requirements of the Exchange Act,
the LLC will use its best efforts to make Short-Form Registrations available
for the sale of the Registrable Securities.

 

(d)           Priority on Demand
Registrations.  The LLC will not
include in any Demand Registration any securities that are not Registrable
Securities without the prior written consent of the holders of at least a
majority of the Registrable Securities initially requesting such registration.  If a Demand Registration is an underwritten
offering and the managing underwriters advise the LLC in writing that in their
opinion the number of Registrable Securities and, if permitted hereunder, other
securities requested to be included in such offering, exceeds the number of
Registrable Securities and other securities, if any, that can be sold therein
without adversely affecting the marketability of the offering, the LLC will
include in such registration (i) first,
the number of Registrable Securities requested to be included in such
registration pro rata, if necessary, among the holders of Registrable
Securities based on the number of Registrable Securities requested to be
included therein by each such holder and (ii) second, subject to the first sentence of this Section 2(d),
any other securities of the LLC requested to be included in such registration
pro rata, if necessary, on the basis of the number of such other securities
requested to be included therein by each such holder.

 

(e)           Restrictions on
Demand Registrations.  The LLC will
not be obligated to effect any Demand Registration within six months after the
effective date of a previous Demand Registration for Registrable Securities,
unless the Required Holders otherwise agree. 
The LLC may postpone for no more than 120 days in each 360-day
period the filing or the effectiveness of a registration statement for a Demand
Registration if both the LLC’s board of advisors (in its reasonable good faith
judgment) and the Required Holders determine that such Demand Registration might
reasonably be expected to have an adverse effect on any proposal or plan to
engage in, or to cause the LLC to disclose confidential information regarding,
any acquisition or disposal of stock or assets or any merger, consolidation,
tender offer, financing or similar

 

6

 

transaction; provided,
that, in such event, the holders of Registrable Securities requesting such
Demand Registration will be entitled to withdraw such request and, if such
request is withdrawn, such Demand Registration will not count as a Demand
Registration and the LLC will pay all Registration Expenses in connection with
such registration.

 

(f)            Selection of
Underwriters.  In the case of a
Demand Registration for an underwritten offering, the LLC will have the right
to select the investment banker(s) and manager(s) to administer the offering,
which investment banker(s) and manager(s) shall be nationally recognized and
reasonably acceptable to the holders of a majority of the Registrable Securities
initially requesting such registration.

 

(g)           Other Registration
Rights.  Except for the rights
provided in this Agreement, the LLC will not grant to any Persons the right to
request the LLC to register any of its equity securities or any securities
convertible or exchangeable into or exercisable for such securities without the
prior written consent of Required Holders; provided, that if the LLC
grants any such right to request the LLC to register such securities to any
Person and BRS and Castle Harlan have the right to participate in any such
registration, the Initial Parties (other than BRS and Castle Harlan) shall also
have the right to participate in such a registration on the same terms and
conditions as BRS and Castle Harlan.

 

3.             Piggyback
Registrations.

 

(a)           Right to Piggyback.  Whenever the LLC proposes to make a primary
offering of its equity securities or securities convertible or exchangeable
into such securities and to register such securities under the Securities Act
(other than (i) pursuant to a Demand Registration to which the provisions of Section 2
hereof shall apply, (ii) a registration statement on Form S-8 or S-4
or any successor form or (iii) in connection with a registration the primary
purpose of which is to register debt securities (i.e., in
connection with a so-called “equity kicker”)), and the registration form
to be used may be used for the registration of Registrable Securities (a “Piggyback
Registration”), the LLC will give prompt written notice to all holders of
Registrable Securities of its intention to effect such a registration.  The LLC shall include in any such
registration by it all Registrable Securities with respect to which it has
received written requests for inclusion therein within 30 days after the
receipt by such holders of the LLC’s notice; provided, however,
that Executive Registrable Securities shall be included in the initial public
offering of the LLC only if, and only to the extent that, the managing
underwriters advise the LLC in writing that in their opinion such Executive
Registrable Securities can be sold therein without adversely affecting the
marketability of the offering.

 

(b)           Piggyback Expenses.  The Registration Expenses of the holders of
Registrable Securities will be paid by the LLC in all Piggyback Registrations
involving Registrable Securities, regardless of whether any such registration
becomes effective.

 

(c)           Priority on
Piggyback Registrations.  If a
Piggyback Registration is an underwritten offering and the managing
underwriters advise the LLC in writing that in their opinion the number of
securities requested to be included in such registration exceeds the number
that can be sold in such offering without adversely affecting the marketability
of the offering, the LLC will include in such registration (i) first, the securities that the LLC
proposes to

 

7

 

sell, (ii) second, the number of Registrable
Securities requested to be included in such registration pro rata, if
necessary, among the holders of Registrable Securities based on the number of
Registrable Securities requested to be included therein by each such holder,
and (iii) third, subject to Section 2(g)
hereof, any other securities of the LLC requested to be included in such
registration pro rata, if necessary, on the basis of the number of such other
securities requested to be included therein by each such holder.

 

(d)           Selection of
Underwriters.  If any Piggyback
Registration is an underwritten offering, the LLC will have the right to select
the investment banker(s) and manager(s) to administer the offering, which
investment banker(s) and manager(s) shall be nationally recognized and
reasonably acceptable to the Required Holders.

 

(e)           Other Registrations.  If the LLC has previously filed a registration
statement with respect to the Registrable Securities pursuant to this Section 3,
and if such previous registration has not been withdrawn or abandoned, the LLC
shall not file or cause to be effected any other registration of any of its
equity securities or securities convertible or exchangeable into or exercisable
for its equity securities under the Securities Act (except on Forms S-4
or S-8 or any successor forms), whether on its own behalf or at the
request of any holder or holders of such securities, until a period of at least
six months has elapsed from the effective date of such previous registration,
unless the Required Holders otherwise agree.

 

4.             Holdback
Agreements.

 

(a)           To the extent not
inconsistent with applicable law, each holder of Registrable Securities hereby
agrees not to effect any public sale or distribution (including, without
limitation, sales pursuant to Rule 144) of equity securities of the LLC or any
securities convertible into or exchangeable or exercisable for such securities,
during the seven days prior to and the 180-day period (or, after the initial
public offering of the LLC, the 90-day period) beginning on the effective date
of any Demand Registration (other than a 415 Registration) or Piggyback
Registration for a public offering to be underwritten on a firm commitment
basis in which the Registrable Securities are included (except as part of such
underwritten registration) if such holder has received written notice of such
registration at least 5 days prior to such effective date, unless (i) the
underwriters managing the registered public offering otherwise agree and (ii)
the Required Holders otherwise agree.

 

(b)           The LLC agrees:  (i) not to effect any public sale or
distribution of its equity securities, or any securities convertible into or
exchangeable or exercisable for such securities, during the seven days prior to
and during the 180-day period (or, after the initial public offering of the
LLC, the 90-day period) beginning on the effective date of any Demand Registration
(other than a 415 Registration) or Piggyback Registration for Registrable
Securities, in each case, to the extent involving a public offering to be
underwritten on a firm commitment basis (except as part of such underwritten
registration or pursuant to registrations on Forms S-4 or S-8 or
any successor forms), unless (A) the underwriters managing the registered
public offering otherwise agree or (B) the Required Holders otherwise agree;
(ii) to cause each holder of Registrable Securities and each other holder of at
least 5% (on a fully diluted basis) of equity securities of the LLC or any
securities convertible into or exchangeable or exercisable for such equity
securities, purchased from the LLC at any time after the date hereof (other
than in a

 

8

 

registered
public offering) to agree not to effect any public sale or distribution
(including sales pursuant to Rule 144) of any such securities during such
period if such holder has received written notice of such registration at least
5 days prior to such effective date (except as part of such underwritten
registration, if otherwise permitted), unless (W) the underwriters managing the
registered public offering otherwise agree or (X) the Required Holders otherwise
agree; and (iii) to use its commercially reasonable efforts to cause each
other holder of at least 1% (on a fully diluted basis) of, and each of the
LLC’s or its Subsidiaries’ advisors, directors, and officers who hold, equity
securities of the LLC or any securities convertible into or exchangeable or
exercisable for such equity securities, purchased from the LLC or any other
Person at any time after the date hereof (other than in a registered public
offering) to agree not to effect any public sale or distribution (including
sales pursuant to Rule 144) of any such securities during such period (except
as part of such underwritten registration, if otherwise permitted), unless (Y)
the underwriters managing the registered public offering otherwise agree or (Z)
the Required Holders otherwise agree.

 

5.             Registration
Procedures.  Whenever the holders of
Registrable Securities have requested that any Registrable Securities be
registered pursuant to this Agreement, the LLC will use its best efforts to
effect the registration and the sale of such Registrable Securities in
accordance with the intended method of disposition thereof, and pursuant
thereto the LLC will as expeditiously as possible:

 

(a)           prepare and file with
the SEC a registration statement with respect to such Registrable Securities
and use its best efforts to cause such registration statement to become
effective (provided that before filing a registration statement or prospectus
or any amendments or supplements thereto, the LLC will furnish to the counsel
selected by the Required Holders copies of all such documents proposed to be
filed, which documents shall be subject to the review and comment of such
counsel);

 

(b)           prepare and file with
the SEC such amendments and supplements to such registration statement and the
prospectus used in connection therewith as may be necessary to keep such
registration statement effective for a period of not less than three years (or
such shorter period of time as shall be necessary for the sale of the
Registrable Securities) and comply with the provisions of the Securities Act
with respect to the disposition of all securities covered by such registration
statement during such period in accordance with the intended methods of
disposition by the sellers thereof set forth in such registration statement;

 

(c)           furnish to each seller
of Registrable Securities such number of copies of such registration statement,
each amendment and supplement thereto, the prospectus included in such
registration statement (including each preliminary prospectus) and such other
documents as such seller may reasonably request in order to facilitate the
disposition of the Registrable Securities owned by such seller;

 

(d)           if requested by the
Required Holders in connection with any Demand Registration of Registrable
Securities, use its commercially reasonable efforts to cause to be included in
such registration Common Units or other equity securities having an aggregate
value (based on the midpoint of the proposed offering price range specified in
the registration

 

9

 

statement used
to offer such securities) of up to $15 million to be offered in a primary
offering of the LLC’s securities contemporaneously with such offering of
Registrable Securities;

 

(e)           use its best efforts to
register or qualify such Registrable Securities under such other securities or
blue sky laws of such jurisdictions as any seller reasonably requests and do
any and all other acts and things that may be reasonably necessary or advisable
to enable such seller to consummate the disposition in such jurisdictions of
the Registrable Securities owned by such seller (provided that the LLC will not
be required to (i) qualify generally to do business in any jurisdiction where
it would not otherwise be required to qualify but for this subsection, (ii)
subject itself to taxation in any such jurisdiction or (iii) consent to general
service of process (i.e., service of process that is not limited solely
to securities law violations) in any such jurisdiction);

 

(f)            notify each seller of
such Registrable Securities, at anytime when a prospectus relating thereto is
required to be delivered under the Securities Act, of the happening of any
event as a result of which the prospectus included in such registration
statement contains an untrue statement of a material fact or omits any fact
necessary to make the statements therein not misleading or any representations
or warranties of the LLC contained in agreements contemplated by Section 5(i)
cease to be true, and, at the request of any such seller, the LLC will promptly
prepare and file, pursuant to Rule 424 under the Securities Act, a supplement
or amendment to such prospectus so that, as thereafter delivered to the
purchasers of such Registrable Securities, such prospectus will not contain an
untrue statement of a material fact or omit to state any fact necessary to make
the statements therein not misleading;

 

(g)           cause all such
Registrable Securities to be listed on each securities exchange on which similar
securities issued by the LLC are then listed and, if not so listed, to be
listed on the Nasdaq National Market System (“Nasdaq Market”) and, if
listed on the Nasdaq Market, use its best efforts to secure designation of all
such Registrable Securities covered by such registration statement as a Nasdaq
“National Market System security” within the meaning of Rule 1 l Aa2-1 of
the SEC or, failing that, to secure Nasdaq Market authorization for such
Registrable Securities and, without limiting the generality of the foregoing,
to arrange for at least two market makers to register as such with respect to
such Registrable Securities with the National Association of Securities
Dealers;

 

(h)           provide a transfer
agent and registrar for all such Registrable Securities not later than the
effective date of such registration statement;

 

(i)            enter into such
customary agreements (including underwriting agreements in customary form) and
take all such other actions as the holders of a majority of the Registrable
Securities being sold or the underwriters, if any, reasonably request in order
to expedite or facilitate the disposition of such Registrable Securities
(including, without limitation, effecting a stock split or a combination of
shares);

 

(j)            make available for
inspection by any seller of Registrable Securities, any underwriter
participating in any disposition pursuant to such registration statement and
any attorney, accountant or other agent retained by any such seller or
underwriter, all financial and other records, pertinent corporate documents and
properties of the LLC, and cause the managers,

 

10

 

officers,
members, employees and independent accountants of the LLC to supply all
information reasonably requested by any such seller, underwriter, attorney,
accountant or agent in connection with such registration statement;

 

(k)           otherwise use its best
efforts to comply with all applicable rules and regulations of the SEC, and
make available to its security holders, as soon as reasonably practicable, an
earnings statement covering the period of at least twelve months beginning with
the first day of the first full calendar quarter of the LLC after the effective
date of the registration statement, which earnings statement shall satisfy the
provisions of Section 11(a) of the Securities Act and Rule 158 promulgated
thereunder;

 

(l) permit any
holder of Registrable Securities that, in such holder’s sole and exclusive
judgment, might be deemed to be an underwriter or a controlling person of the
LLC to participate in the preparation of such registration or comparable
statement and to require the insertion therein of material, furnished to the
LLC in writing, which in the reasonable judgment of such holder and its counsel
should be included;

 

(m)          in the event of the
issuance of any stop order suspending the effectiveness of a registration
statement, or of any order suspending or preventing the use of any related
prospectus or suspending the qualification of any securities included in such
registration statement for sale in any jurisdiction, or, in either case, the
initiation or the threatening of any such proceeding, the LLC will use its
reasonable best efforts promptly to obtain the withdrawal of such order;

 

(n)           use its best efforts to
cause such Registrable Securities covered by such registration statement to be
registered with or approved by such other governmental agencies or authorities
as may be necessary to enable the sellers thereof to consummate the disposition
of such Registrable Securities; and

 

(o)           obtain a “cold comfort”
letter from the independent public accountants of the LLC in customary form and
covering such matters of the type customarily covered by “cold comfort” letters
as the holders of a majority of the Registrable Securities being sold
reasonably request.

 

If any such registration or comparable statement
refers to any holder by name or otherwise as the holder of any securities of
the LLC and if, in its sole and exclusive judgment, such holder is or might be
deemed to be a controlling Person of the LLC, such holder shall have the right
to require (i) the insertion therein of language, in form and substance
satisfactory to such holder and presented to the LLC in writing, to the effect
that the holding by such holder of such securities is not to be construed as a
recommendation by such holder of the investment quality of the LLC’s securities
covered thereby and that such holding does not imply that such holder will
assist in meeting any future financial requirements of the LLC or (ii) in
the event that such reference to such holder by name or otherwise is not
required by the Securities Act or any similar Federal statute then in force,
the deletion of the reference to such holder; provided, that with
respect to this clause (ii) such holder shall furnish to the LLC such
legal opinions as the LLC’s board of advisors shall reasonably request to such
effect, which opinion of counsel shall be reasonably satisfactory to the LLC.

 

11

 

6.             Registration
Expenses.

 

(a)           All Registration
Expenses shall be borne by the LLC with respect to any primary registration,
proposed or otherwise, of its securities.

 

(b)           To the extent
Registration Expenses are not required to be paid by the LLC pursuant to Section 2(b)
or (c) or as otherwise set forth herein, each holder of securities included
in any registration hereunder shall pay those Registration Expenses allocable
to the registration of such holder’s securities so included, and any
Registration Expenses not so allocable shall be borne by all sellers of
securities included in such registration in proportion to the aggregate selling
price of the securities to be so registered.

 

7.             Indemnification.

 

(a)           The LLC agrees to
indemnify, to the extent permitted by law, each holder of Registrable
Securities, its managers, members, partners, officers and directors and each
Person who controls such holder (within the meaning of the Securities Act)
against all losses, claims, damages, liabilities and expenses, joint or
several, arising out of or based upon any untrue or alleged untrue statement of
material fact contained in any registration statement, prospectus or
preliminary prospectus or any amendment thereof or supplement thereto or any
omission or alleged omission of a material fact required to be stated therein
or necessary to make the statements therein not misleading, and shall reimburse
such holder, manager, member, director, officer or controlling Person for any
legal or other expenses reasonably incurred by such holder, manager, member,
director, officer or controlling Person in connection with the investigation or
defense of such loss, claim, damage, liability or expense, except insofar as
the same are caused by or contained in any information furnished in writing to
the LLC by such holder expressly for use therein or by such holder’s failure to
deliver a copy of the registration statement or prospectus or any amendments or
supplements thereto after the LLC has furnished such holder with a sufficient number
of copies of the same.  In connection
with an underwritten offering, the LLC will indemnify such underwriters, their
officers and directors and each Person who controls such underwriters (within
the meaning of the Securities Act) to the same extent as provided above with
respect to the indemnification of the holders of Registrable Securities.

 

(b)           In connection with any
registration statement in which a holder of Registrable Securities is
participating, each such holder will furnish to the LLC in writing such
information and affidavits as the LLC reasonably requests for use in connection
with any such registration statement or prospectus and, to the extent permitted
by law, will indemnify the LLC in connection with any registration of
Registrable Securities, and its managers, members, directors and officers and
each Person who controls the LLC against any losses, claims, damages,
liabilities and expenses, joint or several, resulting from any untrue or
alleged untrue statement of material fact contained in such registration
statement, prospectus or preliminary prospectus or any amendment thereof or
supplement thereto or any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein not
misleading, but only to the extent that such untrue statement or omission is
contained in any information or affidavit so furnished in writing by such
holder expressly for use therein; provided, that the obligation to
indemnify will be individual (not joint and several) to each holder

 

12

 

and will be
limited to the net amount of proceeds received by such holder from the sale of
Registrable Securities pursuant to such registration statement.

 

(c)           Any Person entitled to
indemnification hereunder will (i) give prompt written notice to the
indemnifying party of any claim with respect to which it seeks indemnification
and (ii) unless in such indemnified party’s reasonable judgment a conflict of
interest between such indemnified and indemnifying parties may exist with
respect to such claim, permit such indemnifying party to assume the defense of
such claim with counsel reasonably satisfactory to the indemnified party.  If such defense is assumed, the indemnifying
party will not be subject to any liability for any settlement made by the
indemnified party without its consent (but such consent will not be
unreasonably withheld).  An indemnifying
party who is not entitled to, or elects not to, assume the defense of a claim
will not be obligated to pay the fees and expenses of more than one counsel
(plus one firm of local counsel in each applicable jurisdiction) for all
parties indemnified by such indemnifying party with respect to such claim,
unless in the reasonable judgment of any indemnified party a conflict of
interest may exist between such indemnified party and any other of such
indemnified parties with respect to such claim.

 

(d)           The indemnification
provided for under this Agreement will remain in full force and effect regardless
of any investigation made by or on behalf of the indemnified party or any
manager, member, officer, partner, director or controlling Person of such
indemnified party and will survive the transfer of securities.

 

(e)           If a court of competent
jurisdiction holds that the foregoing indemnity is unavailable, then the
indemnifying party shall contribute to the amount paid or payable by the
indemnified party as a result of such losses, claims, damages, liabilities or
expenses (i) in such proportion as is appropriate to reflect the relative
benefits received by the indemnifying party on the one hand and the indemnified
party on the other (taking into consideration, among other things, the fact
that the provision of the registration rights and indemnification hereunder is
a material inducement to the Members to purchase Registrable Securities
pursuant to the Subscription Agreement and, in the case of Bell Atlantic, to
enter into the Stock Purchase Agreement) or (ii) if the allocation provided by
clause (i) above is not permitted by applicable law or provides a lesser sum to
the indemnified party than the amount hereinafter calculated, in such
proportion as is appropriate to reflect not only the relative benefits received
by the indemnifying party on the one hand and the indemnified party on the
other (taking into consideration, among other things, the fact that the
provision of the registration rights and indemnification hereunder is a
material inducement to the Members to purchase Registrable Securities pursuant
to the Subscription Agreement and, in the case of Bell Atlantic, to enter into
the Stock Purchase Agreement) but also the relative fault of the indemnifying
party and the indemnified party as well as any other relevant equitable
considerations.  The relative fault
shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission
to state a material fact relates to information supplied by or on behalf of the
indemnifying party or the indemnified party and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
untrue statement or 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.  Notwithstanding anything to the

 

13

 

contrary in
this Section 7, no holder shall be required, pursuant to this
Section 7, to contribute any amount in excess of the net proceeds received
by such indemnifying party from the sale of securities in the offering to which
the losses, claims, damages, liabilities or expenses of the indemnified party
relate.

 

8.  Participation in Underwritten
Registrations.  No Person may
participate in any registration hereunder that is underwritten unless such
Person (a) agrees to sell such Person’s securities on the basis provided in any
underwriting arrangements approved by the Person or Persons entitled hereunder
to approve such arrangements and (b) completes and executes all customary
questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents reasonably required under the terms of such underwriting
arrangements; provided, that no holder of Registrable Securities
included in any underwritten registration shall be required to make any
representations or warranties to the LLC or the underwriters (other than representations
and warranties regarding such holder and such holder’s intended method of
distribution) or to undertake any indemnification obligations to the LLC or the
underwriters with respect thereto (except as otherwise provided in paragraph 7
hereof); provided, further, that, with respect to the subject
matter of Section 4(a), no holder of Registrable Securities shall
be required to undertake obligations under this Section 8 that are
more onerous than the obligations of each holder of Registrable Securities
under Section 4(a) hereof

 

9.  Rule 144 Reporting.  With a view to making available to the
holders of Registrable Securities the benefits of certain rules and regulations
of the SEC that may permit the sale of the Registrable Securities to the public
without registration, the LLC agrees to use its best efforts to:

 

(a) make and
keep current public information available, within the meaning of Rule 144
or any similar or analogous rule promulgated under the Securities Act, at all
times after it has become subject to the reporting requirements of the Exchange
Act;

 

(b)           file with the SEC, in a
timely manner, all reports and other documents required under the Securities
Act and Exchange Act (after it has become subject to such reporting
requirements); and

 

(c)           so long as any party
hereto owns any Registrable Securities, furnish to such Person forthwith upon
request a written statement as to its compliance with the reporting
requirements of said Rule 144 (at any time commencing 90 days after the
effective date of the first registration filed by the LLC for an offering of
its securities to the general public), the Securities Act and the Exchange Act
(at any time after it has become subject to such reporting requirements); a
copy of its most recent annual or quarterly report; and such other reports and
documents as such Person may reasonably request in availing itself of any rule
or regulation of the SEC allowing it to sell any such securities without
registration.

 

10.  Notices.  All notices, demands and other communications to be given or
delivered under or by reason of provisions under this Agreement (a) shall be in
writing, (b) must be delivered via a nationally recognized overnight delivery
service (delivery charges prepaid) or via facsimile along with written confirmation,
and (c) shall be effective only upon actual receipt by the recipient.  All such notices, demands and other
communications shall be sent (i) in the

 

14

 

case of any
Member, to the addresses or facsimile numbers set forth in Schedule I
hereto or to such other addresses or facsimile numbers as have been supplied in
writing to the LLC and (ii) in the case of the LLC, to care of Castle Harlan
with a copy to BRS.

 

11.           Miscellaneous.

 

(a)           No Inconsistent Agreements.  Without the prior written consent of the
Required Holders, the LLC will not enter into any agreement that is
inconsistent with or violates or impairs the rights granted to the holders of
Registrable Securities in this Agreement.

 

(b)           Remedies.  Any Person having rights under any provision
of this Agreement will be entitled to enforce such rights specifically to
recover damages caused by reason of any breach of any provision of this
Agreement and to exercise all other rights granted by law.  The parties hereto agree and acknowledge
that money damages may not be an adequate remedy for any breach of the
provisions of this Agreement and that any party may in its sole discretion
apply to any court of law or equity of competent jurisdiction (without posting
any bond or other security) for specific performance and for other injunctive
relief in order to enforce or prevent violation of the provisions of this
Agreement.

 

(c)           Amendments and
Waivers.  Except as otherwise
provided herein, the provisions of this Agreement may be amended or waived only
upon the prior written consent of the LLC and the Required Holders; provided,
that any such amendment or waiver that adversely affects one Member and is
prejudicial to such Member relative to all other Members cannot be effected
without the consent of such Member.  For
the avoidance of doubt, the addition to this Agreement of another party who
both becomes a member of the LLC pursuant to the terms and conditions of the
LLC Agreement and executes a joinder in the form attached hereto as Exhibit
A is not an action that, in and of itself, requires an amendment to this
Agreement.

 

(d)           Successors and
Assigns.  All rights, covenants and
agreements in this Agreement by or on behalf of any of the parties hereto
(including, without limitation, the LLC) will bind and inure to the benefit of
the respective successors and assigns of the parties hereto whether so
expressed or not.  In addition, whether
or not any express assignment has been made, the provisions of this Agreement that
are for the benefit of purchasers or holders of Registrable Securities are also
for the benefit of, and enforceable by, any subsequent holder of Registrable
Securities so long such subsequent holder (i) acquired such Registrable
Securities in accordance with the LLC Agreement and the Members Agreement, (ii)
became a member of the LLC in accordance with the terms and conditions of the
LLC Agreement and (iii) agreed in writing to be bound by the terms hereof.

 

(e)           Severability.  Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited
by or invalid under applicable law, such provision will be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of
this Agreement.

 

15

 

(f)            Counterparts.  This Agreement may be executed
simultaneously in two or more counterparts, any one of which need not contain
the signatures of more than one party, but all such counterparts taken together
will constitute one and the same Agreement.

 

(g)           Descriptive Headings.  The descriptive headings of this Agreement
are inserted for convenience only and do not constitute a part of this
Agreement.

 

(h)           Entire Agreement.  Except as otherwise expressly set forth
herein, this Agreement and the other Transaction Documents embody the complete
agreement and understanding among the parties hereto with respect to the
subject matter hereof and supersede and preempt any prior understandings,
agreements or representations by or among the parties, written or oral, that
may have related to the subject matter hereof in any way.

 

(i)            Governing Law.  All issues and questions concerning the
application, construction, validity, interpretation and enforcement of this
Agreement shall be governed by and construed in accordance with the domestic
laws of the State of New York, without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of New York or any
other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of New York.

 

(j)            Jurisdiction and
Venue.  ALL JUDICIAL PROCEEDINGS
BROUGHT BY OR AGAINST THE LLC OR THE MEMBERS WITH RESPECT TO THIS AGREEMENT,
ANY OTHER AGREEMENT CONTEMPLATED HEREBY OR ANY TRANSACTIONS CONTEMPLATED HEREBY
OR THEREBY SHALL BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT
JURISDICTION IN THE CITY OF NEW YORK IN THE STATE OF NEW YORK.  BY EXECUTION AND DELIVERY OF THIS AGREEMENT,
THE LLC AND EACH MEMBER ACCEPT FOR ITSELF AND HIMSELF AND IN CONNECTION WITH
ITS OR HIS RESPECTIVE PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE
JURISDICTION OF THE AFORESAID COURTS, AND IRREVOCABLY AGREE TO BE BOUND BY ANY
JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT.  THE LLC AND EACH MEMBER HEREBY WAIVE ANY
CLAIM THAT SUCH JURISDICTION IS AN INCONVENIENT FORUM OR AN IMPROPER FORUM
BASED ON LACK OF VENUE.

 

(k)           Waiver of Jury Trial.  THE LLC AND EACH MEMBER HEREBY WAIVE, TO THE
EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY LITIGATION IN ANY
COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF THIS AGREEMENT OR
THE VALIDITY, PROTECTION, INTERPRETATION OR ENFORCEMENT THEREOF.  THE LLC AND EACH MEMBER AGREE THAT THIS
SECTION IS A SPECIFIC AND MATERIAL ASPECT OF THIS AGREEMENT AND WOULD NOT
ENTER INTO THIS AGREEMENT IF THIS SECTION WERE NOT PART OF THIS AGREEMENT.

 

*   
*    *    *    *

 

16

 

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

 

	
   

  	
  MCCORMICK &
  SCHMICK HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DOUGLAS
  L. SCHMICK

  	
   

  
	
   

  	
  Its:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BRUCKMANN,
  ROSSER, SHERRILL & CO. II, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BRSE, L.L.C.

  	
   

  
	
   

  	
  Its:

  	
  General
  Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ STEPHEN
  F. EDWARDS

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CASTLE
  HARLAN PARTNERS III, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Castle
  Harlan, Inc.

  	
   

  
	
   

  	
  Its:

  	
  Investment
  Manager

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DAVID B.
  PITTAWAY

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ STEPHEN
  F. EDWARDS

  	
   

  
	
   

  	
  Julie Frist

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ STEPHEN
  F. EDWARDS

  	
   

  
	
   

  	
  Marilena
  Tibrea

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ DAVID B.
  PITTAWAY

  	
   

  
	
   

  	
  David B.
  Pittaway

  

 

 

	
   

  	
  MELLON BANK, N.A., solely in its capacity as

  Trustee for The Bell Atlantic Master Trust (as directed

  by Verizon Investment Management Corp.), and not in

  its individual capacity

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ CAROLE
  BRUNO

  	
   

  
	
   

  	
  Its:

  	
  Authorized
  Signatory

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANCBOSTON
  CAPITAL INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JASON
  HURD

  	
   

  
	
   

  	
  Its:

  	
  Vice
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IBJ WHITEHALL
  CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ KEVIN P.
  FLAVEY

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  

 

 

	
   

  	
  /s/ RICHARD
  F. BURKE, JR.

  	
   

  
	
   

  	
  Richard F.
  Burke, Jr.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ ROBERT
  A. ENGEL

  	
   

  
	
   

  	
  Robert A.
  Engel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ MARY
  PRICE GAY

  	
   

  
	
   

  	
  Mary Price
  Gay

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ ELLIOTT
  H. JONES

  	
   

  
	
   

  	
  Elliott H.
  Jones

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ PHILLIP
  KRALL

  	
   

  
	
   

  	
  Phillip
  Krall

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ H.
  CONRAD MEYER

  	
   

  
	
   

  	
  H. Conrad
  Meyer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ CHARLES
  G. PHILLIPS

  	
   

  
	
   

  	
  Charles G.
  Phillips

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PHILLIPS
  FAMILY FOUNDATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ CHARLES
  G. PHILLIPS

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ CANDACE
  R. PHILLIPS

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  

 

 

	
   

  	
  /s/ CRAIG J.
  PISANI

  	
   

  
	
   

  	
  Craig J.
  Pisani

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ JAMES R.
  RAITH, JR.

  	
   

  
	
   

  	
  James R.
  Raith, Jr.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ TOM
  STEIGLEHNER

  	
   

  
	
   

  	
  Tom
  Steiglehner

  

 

 

SCHEDULE I

LIST OF MEMBERS

 

	
  Initial
  Parties:

  	
   

  
	
  Bruckmann,
  Rosser, Sherrill & Co. II, L.P.

  	
  With copies
  (which shall not constitute notice) to:

  
	
  126 East
  56th Street

  	
   

  
	
  New York, NY
  10022

  	
  Kirkland &
  Ellis

  
	
  Facsimile:

  	
  (212)
  521-3799

  	
  Citigroup
  Center

  
	
  Attention:

  	
  Harold O.
  Rosser

  	
  153 East
  53rd Street

  
	
   

  	
  Rice Edmonds

  	
  New York, NY
  10022

  
	
   

  	
  Jamie Moore

  	
  Facsimile:

  	
  (212)
  446-4900

  
	
   

  	
  Attention:

  	
  Kimberly P.
  Taylor

  
	
   

  	
   

  
	
  Castle
  Harlan Partners III, L.P.

  	
  With copies
  (which shall not constitute notice) to:

  
	
  150 East
  58th St.,

  	
   

  
	
  New York, NY
  10155

  	
  Schulte
  Roth & Zabel LLP

  
	
  Facsimile:

  	
  (212)
  207-8042

  	
  919 Third
  Avenue

  
	
  Attention:

  	
  David B.
  Pittaway

  	
  New York, NY
  10022

  
	
   

  	
  Justin
  Wender

  	
  Facsimile:

  	
  (212)
  593-5955

  
	
   

  	
   

  	
  Attention:

  	
  Michael R.
  Littenberg

  
	
   

  	
   

  	
   

  	
   

  
	
  Julie Frist

  	
  With copies
  (which shall not constitute notice) to:

  
	
  c/o
  Bruckmann, Rosser, Sherrill & Co. II, L.P.

  	
   

  
	
  126 East
  56th Street

  	
  Kirkland &
  Ellis

  
	
  New York, NY
  10022

  	
  Citigroup
  Center

  
	
  Facsimile:

  	
  (212)
  521-3799

  	
  153 East
  53rd Street

  
	
  Attention:

  	
  Julie Frist

  	
  New York, NY
  10022

  
	
   

  	
   

  	
  Facsimile:

  	
  (212)
  446-4900

  
	
   

  	
   

  	
  Attention:

  	
  Kimberly P.
  Taylor

  
	
   

  	
   

  	
   

  	
   

  
	
  Marilena
  Tibrea

  	
  With copies
  (which shall not constitute notice) to:

  
	
  c/o
  Brockman, Rosser, Sherrill & Co. II, L.P.

  	
   

  
	
  126 East
  56th Street

  	
  Kirkland &
  Ellis

  
	
  New York, NY
  10022

  	
  Citigroup
  Center

  
	
  Facsimile:

  	
  (212)
  521-3799

  	
  153 East
  53rd Street

  
	
  Attention:

  	
  Marilena
  Tibrea

  	
  New York, NY
  10022

  
	
   

  	
   

  	
  Facsimile:

  	
  (212)
  446-4900

  
	
   

  	
   

  	
  Attention:

  	
  Kimberly P.
  Taylor

  
	
   

  	
   

  	
   

  	
   

  
	
  David B.
  Pittaway

  	
  With copies
  (which shall not constitute notice) to

  
	
  c/o Castle
  Harlan Partners III, L.P.

  	
   

  
	
  150 East
  58th St.,

  	
  Schulte
  Roth & Zabel LLP

  
	
  New York, NY
  10155

  	
  919 Third
  Avenue

  
	
  Facsimile:

  	
  (212)
  207-8042

  	
  New York, NY
  10022

  
	
  Attention:

  	
  David B.
  Pittaway

  	
  Facsimile:

  	
  (212)
  593-5955

  
	
   

  	
   

  	
  Attention:

  	
  Michael R.
  Littenberg

  

 

 

	
  Bell
  Atlantic Master Trust

  	
  With copies
  (which shall not constitute notice) to:

  
	
  c/o Mellon
  Bank, N.A.

  	
   

  
	
  One Mellon
  Bank Center

  	
  Ropes &
  Gray

  
	
  Room 3346

  	
  One
  International Place

  
	
  Pittsburgh,
  Pennsylvania 15258-001

  	
  Boston,
  Massachusetts 02110

  
	
  Facsimile:

  	
  (412)
  236-4225

  	
  Facsimile:

  	
  (617)
  951-7050

  
	
  Attention:

  	
  Francis
  Walton

  	
  Attention:

  	
  Ann Milner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Verizon
  Investment Management Corp.

  
	
   

  	
  695 Main
  Street

  
	
   

  	
  Suite 600

  
	
   

  	
  Stamford,
  Connecticut 06901

  
	
   

  	
   

  	
  Facsimile:

  	
  (203)
  965-3300

  
	
   

  	
   

  	
  Attention:

  	
  Conrad
  Francis

  
	
   

  	
   

  
	
   

  	
  Verizon
  Investment Management Corp.

  
	
   

  	
  695 Main
  Street

  
	
   

  	
  Suite 600

  
	
   

  	
  Stamford,
  Connecticut 06901

  
	
   

  	
   

  	
  Facsimile:

  	
  (203)
  965-2243

  
	
   

  	
   

  	
  Attention:

  	
  Bruce
  Franzese

  
	
   

  	
   

  
	
  BancBoston
  Capital Inc.

  	
  With copies
  (which shall not constitute notice) to:

  
	
  175 Federal
  Street

  	
   

  
	
  10th floor

  	
  BancBoston
  Capital Inc.

  
	
  Boston, MA
  02110

  	
  175 Federal
  Street

  
	
  Fax:  (617) 434-1153

  	
  10th floor

  
	
  Attention:

  	
  Jason Hurd

  	
  Boston, MA
  02110

  
	
   

  	
   

  	
  Fax:  (617) 434-1153

  
	
   

  	
   

  	
  Attention:

  	
  Deirdre A.
  Cunnane

  
	
   

  	
   

  	
   

  	
   

  
	
  IBJ
  Whitehall Capital Corporation

  	
  With a copy
  (which shall not constitute notice) to:

  
	
  One State
  Street

  	
   

  
	
  New York, NY
  10004

  	
  Sonnenschein
  Nath & Rosenthal

  
	
  Facsimile:

  	
  (212)
  858-2400

  	
  1221 Avenue
  of the Americas, 24th Floor

  
	
  Attention:

  	
  Kevin Falvey

  	
  New York, NY
  10020-1089

  
	
   

  	
   

  	
  Facsimile:

  	
  (212)
  768-6800

  
	
   

  	
   

  	
  Attention:

  	
  Clement B.
  Wood

  
	
   

  	
   

  	
   

  	
   

  
	
  Richard F.
  Burke, Jr.

  	
   

  
	
  c/o
  Gleacher & Co.

  	
   

  
	
  660 Madison
  Avenue

  	
   

  
	
  New York, NY
  10021

  	
   

  
	
  Facsimile:

  	
  (212)
  418-4598

  	
   

  	
   

  
	
   

  	
   

  
	
  Robert A.
  Engel

  	
  With a copy
  (which shall not constitute notice) to:

  
	
  c/o
  Gleacher & Co.

  	
   

  
	
  660 Madison
  Avenue

  	
  Robert A.
  Engel

  
	
  New York, NY
  10021

  	
  100 Upper
  Mountain Avenue

  
	
  Facsimile:

  	
  (212)
  418-4598

  	
  Montclair,
  NJ 07042

  

 

 

	
  Mary Price
  Gay

  c/o
  Gleacher & Co.

  660 Madison
  Avenue

  New York, NY
  10021

  Facsimile:  (212) 418-4598

  	
   

  
	
   

  	
   

  
	
  Elliott H.
  Jones

  c/o
  Gleacher & Co.

  660 Madison
  Avenue

  New York, NY
  10021

  Facsimile:  (212) 418-4598

  	
   

  
	
   

  	
   

  
	
  Phillip
  Krall

  c/o Gleacher &
  Co.

  660 Madison
  Avenue

  New York, NY
  10021

  Facsimile:  (212) 418-4598

  	
   

  
	
   

  	
   

  
	
  H. Conrad
  Meyer

  c/o
  Gleacher & Co.

  660 Madison
  Avenue

  New York, NY
  10021

  Facsimile:  (212) 418-4598

  	
   

  
	
   

  	
   

  
	
  Charles G.
  Phillips

  c/o
  Gleacher & Co.

  660 Madison
  Avenue

  New York, NY
  10021

  Facsimile:  (212) 418-4598

  	
   

  
	
   

  	
   

  
	
  Phillips
  Family Foundation

  c/o
  Gleacher & Co.

  660 Madison
  Avenue

  New York, NY
  10021

  Facsimile:  (212) 418-4598

  	
   

  
	
   

  	
   

  
	
  Craig J.
  Pisani

  c/o
  Gleacher & Co.

  660 Madison
  Avenue

  New York, NY
  10021

  Facsimile:  (212) 418-4598

  	
   

  
	
   

  	
   

  
	
  James R.
  Raith, Jr.

  c/o
  Gleacher & Co.

  660 Madison
  Avenue

  New York, NY
  10021

  Facsimile:  (212) 418-4598

  	
   

  
	
   

  	
   

  
	
  Torn
  Steiglehner

  c/o
  Gleacher & Co.

  660 Madison
  Avenue

  New York, NY
  10021

  Facsimile:  (212) 418-4598

  	
   

  

 

 

EXHIBIT A

 

FORM OF JOINDER TO

REGISTRATION RIGHTS AGREEMENT

 

THIS JOINDER
to the Registration Rights Agreement, dated as of
                      ,
2001, by and among McCormick & Schmick Holdings, LLC, a Delaware
limited liability company (the “LLC”), and certain Parties (the “Agreement”),
is made and entered into as of
               
by and between the LLC and
                                   
(“Holder”).  Capitalized terms
used herein but not otherwise defined shall have the meanings set forth in the
Agreement.

 

WHEREAS,
Holder has acquired certain Common Units, and the Agreement contemplates that
Holder, as a holder of Registrable Securities, may be entitled to become a
party to the Agreement, and Holder agrees to do so in accordance with the terms
hereof.

 

NOW,
THEREFORE, in consideration of the mutual covenants contained herein and other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties to this Joinder hereby agree as follows:

 

1.             Agreement to be
Bound.  Holder hereby agrees that
upon execution of this Joinder, it shall become a party to the Agreement and
shall be fully bound by, and subject to, all of the covenants, terms and
conditions of the Agreement as though an original party thereto and shall be
deemed a holder of [Investor Registrable
Securities/Executive Registrable Securities] for all purposes
thereof.  In addition, Holder hereby
agrees that all Common Units held by Holder shall be deemed [Investor Registrable Securities/Executive Registrable
Securities] for all purposes of the Agreement.

 

2.             Successors and
Assigns.  Except as otherwise
provided herein, this Joinder shall bind and inure to the benefit of and be
enforceable by the LLC and its successors and assigns and Holder and any
subsequent holders of Common Units and the respective successors and assigns of
each of them, so long as they hold any Common Units.

 

3.             Counterparts.  This Joinder may be executed in separate
counterparts each of which shall be an original and all of which taken together
shall constitute one and the same agreement.

 

4.             Notices.  For purposes of Section 10 of
the Agreement, all notices, demands or other communications to the Holder shall
be directed to:

 

[Name]

[Address]

[Facsimile Number]

 

5.             Governing Law.  All issues and questions concerning the application,
construction, validity, interpretation and enforcement of this Agreement shall
be governed by and construed in accordance with the laws of the State of New
York, without giving effect to any choice of law or conflict of law provision
or rule (whether of the State of New

 

 

York
or any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of New York.

 

6.             Jurisdiction and
Venue.  ALL JUDICIAL PROCEEDINGS
BROUGHT BY OR AGAINST THE LLC OR THE HOLDER WITH RESPECT TO THIS AGREEMENT, ANY
OTHER AGREEMENT CONTEMPLATED HEREBY OR ANY TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY SHALL BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT
JURISDICTION IN THE CITY OF NEW YORK IN 
THE STATE OF NEW YORK.  BY EXECUTION
AND DELIVERY OF THIS AGREEMENT, THE LLC AND THE HOLDER ACCEPT FOR ITSELF AND
HIMSELF AND IN CONNECTION WITH ITS OR HIS RESPECTIVE PROPERTIES, GENERALLY AND
UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS, AND
IRREVOCABLY AGREE TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION
WITH THIS AGREEMENT.  THE LLC AND THE
HOLDER HEREBY WAIVE ANY CLAIM THAT SUCH JURISDICTION IS AN INCONVENIENT FORUM
OR AN IMPROPER FORUM BASED ON LACK OF VENUE.

 

7.             Waiver of Jury
Trial.  THE LLC AND THE HOLDER
HEREBY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY
LITIGATION IN ANY COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF
THIS AGREEMENT OR THE VALIDITY, PROTECTION, INTERPRETATION OR ENFORCEMENT
THEREOF.  THE LLC AND THE HOLDER AGREE
THAT THIS SECTION IS A SPECIFIC AND MATERIAL ASPECT OF THIS AGREEMENT AND
WOULD NOT ENTER INTO THIS AGREEMENT IF THIS SECTION WERE NOT PART OF THIS
AGREEMENT.

 

8.             Descriptive
Headings.  The descriptive headings
of this Joinder are inserted for convenience only and do not constitute a part
of this Joinder.

 

* * * * *

 

 

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

 

	
   

  	
  MCCORMICK & SCHMICK HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [HOLDER]

  
	
   

  	
   

  
	
   

  	
  By:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]