Document:

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Exhibit 10.1

REGISTRATION RIGHTS AGREEMENT

          This REGISTRATION RIGHTS AGREEMENT dated October 11, 2007(this “Agreement”) is entered into by
and among Lamar Media Corp., a Delaware corporation (the “Company”), the guarantors listed in
Schedule 1 hereto (the “Guarantors”), and J.P. Morgan Securities Inc., as representative for
Wachovia Capital Markets, LLC, BNP Paribas Securities Corp., Calyon Securities (USA) Inc., BNY
Capital Markets, Inc and Greenwich Capital Markets, Inc. (collectively, the “Initial Purchasers”).

          The Company, the Guarantors and the Initial Purchasers are parties to the Purchase Agreement
dated Ocotober 1, 2007 (the “Purchase Agreement”), which provides for the sale by the Company to
the Initial Purchasers of $275,000,000 aggregate principal amount ($260,887,000 gross proceeds) of
the Company’s 6 5/8% Senior Subordinated Notes due 2015—Series C (the “Securities”), which will be
guaranteed on an unsecured senior subordinated basis by each of the Guarantors. As an inducement
to the Initial Purchasers to enter into the Purchase Agreement, the Company and the Guarantors have
agreed to provide to the Initial Purchasers and their direct and indirect transferees the
registration rights set forth in this Agreement. The execution and delivery of this Agreement is a
condition to the closing under the Purchase Agreement.

          In consideration of the foregoing, the parties hereto agree as follows:

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

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

          “Business Day” shall mean any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed.

          “Closing Date” shall mean the Closing Date as defined in the Purchase Agreement.

          “Company” shall have the meaning set forth in the preamble and shall also include the
Company’s successors.

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

          “Exchange Dates” shall have the meaning set forth in Section 2(a)(ii) hereof.

          “Exchange Offer” shall mean the exchange offer by the Company and the Guarantors of Exchange
Securities for Registrable Securities pursuant to Section 2(a) hereof.

          “Exchange Offer Registration” shall mean a registration under the Securities Act effected
pursuant to Section 2(a) hereof.

          “Exchange Offer Registration Statement” shall mean an exchange offer registration statement on
Form S-4 (or, if applicable, on another appropriate form) and all amendments and supplements to
such registration statement, in each case including the Prospectus contained therein, all exhibits
thereto and any document incorporated by reference therein.

          “Exchange Securities” shall mean senior subordinated notes issued by the Company and
guaranteed by the Guarantors under the Indenture containing terms identical to the Securities

 

 

(except that the Exchange Securities will not be subject to restrictions on transfer or to any
increase in annual interest rate for failure to comply with this Agreement) and to be offered to
Holders of Securities in exchange for Securities pursuant to the Exchange Offer.

          “Guarantors” shall have the meaning set forth in the preamble and shall also include any
Guarantor’s successors.

          “Holders” shall mean the Initial Purchasers, for so long as they own any Registrable
Securities, and each of their successors, assigns and direct and indirect transferees who become
owners of Registrable Securities under the Indenture; provided, however, that for purposes of
Sections 4 and 5 of this Agreement, the term “Holders” shall include Participating Broker-Dealers.

          “Indemnified Person” shall have the meaning set forth in Section 5(c) hereof.

          “Indemnifying Person” shall have the meaning set forth in Section 5(c) hereof.

          “Indenture” shall mean the Indenture relating to the Securities dated as of October 11, 2007
by and among the Company, the Guarantors and The Bank of New York Trust Company, N.A., as trustee,
and as the same may be amended from time to time in accordance with the terms thereof.

          “Initial Purchasers” shall have the meaning set forth in the preamble.

          “Inspector” shall have the meaning set forth in Section 3(m) hereof.

          “Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of
outstanding Registrable Securities; provided, however, that whenever the consent or approval of
Holders of a specified percentage of Registrable Securities is required hereunder, Registrable
Securities owned directly or indirectly by the Company or any of its affiliates shall not be
counted in determining whether such consent or approval was given by the Holders of such required
percentage or amount.

          “Participating Broker-Dealers” shall have the meaning set forth in Section 4(a) hereof.

          “Person” shall mean an individual, partnership, limited liability company, corporation, trust
or unincorporated organization, or a government or agency or political subdivision thereof.

          “Prospectus” shall mean the prospectus included in a Registration Statement, including any
preliminary prospectus, and any such prospectus as amended or supplemented by any prospectus
supplement, including a prospectus supplement with respect to the terms of the offering of any
portion of the Registrable Securities covered by a Shelf Registration Statement, and by all other
amendments and supplements to such prospectus, and in each case including any document incorporated
by reference therein.

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

          “Registrable Securities” shall mean the Securities; provided, however, that the Securities
shall cease to be Registrable Securities (i) when a Registration Statement with respect to such
Securities has been declared effective under the Securities Act and such Securities have been
exchanged or disposed of pursuant to such Registration Statement, (ii) when such Securities are
eligible to be sold pursuant to Rule 144(k) (or any similar provision then in force, but not Rule
144A) under the Securities Act, (iii) when such Securities cease to be outstanding or (iv) when the
Exchange Offer has
been completed (except with respect to Securities held by the Initial Purchasers that were not
eligible to be exchanged pursuant to the Exchange Offer).

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          “Registration Expenses” shall mean any and all expenses incident to performance of or
compliance by the Company and the Guarantors with this Agreement, including, without limitation,
(i) all SEC, stock exchange or National Association of Securities Dealers, Inc. registration and
filing fees, (ii) all fees and expenses incurred in connection with compliance with state
securities or blue sky laws (including reasonable fees and disbursements of counsel for any
Underwriters or Holders in connection with blue sky qualification of any Exchange Securities or
Registrable Securities), (iii) all expenses of any Persons in preparing or assisting in preparing,
word processing, printing and distributing any Registration Statement, any Prospectus and any
amendments or supplements thereto, any underwriting agreements, securities sales agreements or
other similar agreements and any other documents relating to the performance of and compliance with
this Agreement, (iv) all rating agency fees, (v) all fees and disbursements relating to the
qualification of the Indenture under applicable securities laws, (vi) the fees and disbursements of
the Trustee and its counsel, (vii) the fees and disbursements of counsel for the Company and the
Guarantors and, in the case of a Shelf Registration Statement, the fees and disbursements of one
counsel for the Holders (which counsel shall be selected by the Majority Holders and which counsel
may also be counsel for the Initial Purchasers) and (viii) the fees and disbursements of the
independent public accountants of the Company and the Guarantors, including the expenses of any
special audits or “comfort” letters required by or incident to the performance of and compliance
with this Agreement, but excluding fees and expenses of counsel to the Underwriters (other than
fees and expenses set forth in clause (ii) above) or the Holders and underwriting discounts and
commissions and transfer taxes, if any, relating to the sale or disposition of Registrable
Securities by a Holder.

          “Registration Statement” shall mean any registration statement of the Company and the
Guarantors that covers any of the Exchange Securities or Registrable Securities pursuant to the
provisions of this Agreement and all amendments and supplements to any such registration statement,
including post-effective amendments, in each case including the Prospectus contained therein, all
exhibits thereto and any document incorporated by reference therein.

          “SEC” shall mean the Securities and Exchange Commission.

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

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

          “Shelf Effectiveness Period” shall have the meaning set forth in Section 2(b) hereof.

          “Shelf Registration” shall mean a registration effected pursuant to Section 2(b) hereof.

          “Shelf Registration Statement” shall mean a “shelf” registration statement of the Company and
the Guarantors that covers all the Registrable Securities (but no other securities unless approved
by the Holders whose Registrable Securities are to be covered by such Shelf Registration Statement)
on an appropriate form under Rule 415 under the Securities Act, or any similar rule that may be
adopted by the SEC, and all amendments and supplements to such registration statement, including
post-effective amendments, in each case including the Prospectus contained therein, all exhibits
thereto and any document incorporated by reference therein.

          “Target Registration Date” shall have meaning set forth in Section 2(d) hereof.

          “Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time to
time.

          “Trustee” shall mean the trustee with respect to the Securities under the Indenture.

          “Underwriters” shall have the meaning set forth in Section 3 hereof.

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          “Underwritten Offering” shall mean an offering in which Registrable Securities are sold to an
Underwriter for reoffering to the public.

          2. Registration Under the Securities Act. (a)  To the extent not prohibited by any
applicable law or applicable interpretations of the Staff of the SEC, the Company and the
Guarantors shall use their reasonable best efforts to (i) cause to be filed an Exchange Offer
Registration Statement covering an offer to the Holders to exchange all the Registrable Securities
for Exchange Securities and (ii) have such Registration Statement remain effective until the lesser
of 180 days after the closing of the Exchange Offer and the date on which all Participating
Broker-Dealers have sold all Exchange Securities held by them. The Company and the Guarantors
shall commence the Exchange Offer as promptly as practicable after the Exchange Offer Registration
Statement is declared effective by the SEC and use their reasonable best efforts to complete the
Exchange Offer not later than 60 days after such effective date.

          The Company and the Guarantors shall commence the Exchange Offer by mailing the related
Prospectus, appropriate letters of transmittal and other accompanying documents to each Holder
stating, in addition to such other disclosures as are required by applicable law,

     (i) that the Exchange Offer is being made pursuant to this Agreement and that all
Registrable Securities validly tendered and not properly withdrawn will be accepted for
exchange;

     (ii) the dates of acceptance for exchange (which shall be a period of at least 20
Business Days from the date such notice is mailed) (the “Exchange Dates”);

     (iii) that any Registrable Security not tendered will remain outstanding and continue
to accrue interest but will not retain any rights under this Agreement;

     (iv) that any Holder electing to have a Registrable Security exchanged pursuant to the
Exchange Offer will be required to surrender such Registrable Security, together with the
appropriate letters of transmittal, to the institution and at the address (located in the
Borough of Manhattan, The City of New York) and in the manner specified in the notice, prior
to the close of business on the last Exchange Date; and

     (v) that any Holder will be entitled to withdraw its election, not later than the close
of business on the last Exchange Date, by sending to the institution and at the address
(located in the Borough of Manhattan, The City of New York) specified in the notice, a
telegram, telex, facsimile transmission or letter setting forth the name of such Holder, the
principal amount of Registrable Securities delivered for exchange and a statement that such
Holder is withdrawing its election to have such Securities exchanged.

          As a condition to participating in the Exchange Offer, a Holder will be required to represent
to the Company and the Guarantors that (i) any Exchange Securities to be received by it will be
acquired in the ordinary course of its business, (ii) at the time of the commencement of the
Exchange Offer it has no arrangement or understanding with any Person to participate in the
distribution (within the meaning of the Securities Act) of the Exchange Securities in violation of
the provisions of the Securities Act, (iii) it is not an “affiliate” (within the meaning of Rule
405 under Securities Act) of the Company or any Guarantor and (iv) if such Holder is a
broker-dealer that will receive Exchange Securities for its own account in exchange for Registrable
Securities that were acquired as a result of market-
making or other trading activities, then such Holder will deliver a Prospectus in connection
with any resale of such Exchange Securities.

          As soon as practicable after the last Exchange Date, the Company and the Guarantors shall:

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     (i) accept for exchange Registrable Securities or portions thereof validly tendered and
not properly withdrawn pursuant to the Exchange Offer; and

     (ii) deliver, or cause to be delivered, to the Trustee for cancellation all Registrable
Securities or portions thereof so accepted for exchange by the Company and issue, and cause
the Trustee to promptly authenticate and deliver to each Holder, Exchange Securities equal
in principal amount to the principal amount of the Registrable Securities surrendered by
such Holder.

          The Company and the Guarantors shall use their reasonable best efforts to complete the
Exchange Offer as provided above and shall comply with the applicable requirements of the
Securities Act, the Exchange Act and other applicable laws and regulations in connection with the
Exchange Offer. The Exchange Offer shall not be subject to any conditions, other than that the
Exchange Offer does not violate any applicable law or applicable interpretations of the Staff of
the SEC.

          (b) In the event that (i) the Company and the Guarantors determine that the Exchange Offer
Registration provided for in Section 2(a) above is not available or may not be completed as soon as
practicable after the last Exchange Date because it would violate any applicable law or applicable
interpretations of the Staff of the SEC, (ii) the Exchange Offer is not for any other reason
completed on or before the date that is 190 days after the Closing Date or (iii) upon completion of
the Exchange Offer any Initial Purchaser shall so request in connection with any offering or sale
of Registrable Securities not eligible to be exchanged for Exchange Securities in the Exchange
Offer and held by it following the consummation of the Exchange Offer, the Company and the
Guarantors shall use their reasonable best efforts to cause to be filed as soon as practicable
after such determination, date or request, as the case may be, a Shelf Registration Statement
providing for the sale of all the Registrable Securities by the Holders thereof and to have such
Shelf Registration Statement declared effective by the SEC.

          In the event that the Company and the Guarantors are required to file a Shelf Registration
Statement pursuant to clause (iii) of the preceding sentence, the Company and the Guarantors shall
use their reasonable best efforts to file and have declared effective by the SEC both an Exchange
Offer Registration Statement pursuant to Section 2(a) with respect to all Registrable Securities
and a Shelf Registration Statement (which may be a combined Registration Statement with the
Exchange Offer Registration Statement) with respect to offers and sales of Registrable Securities
held by the Initial Purchasers after completion of the Exchange Offer. Notwithstanding the
foregoing, the Company and the Guarantors may delay filing a Shelf Registration Statement, and any
amendment thereto, and may withhold efforts to cause such Shelf Registration Statement, and any
such amendment thereto, to become effective for a period of up to 60 days, if the Company
determines in good faith that such Shelf Registration Statement, and any such amendment thereto,
might interfere with or affect the negotiation or completion of any transaction that is being
contemplated by the Company (whether or not a final decision has been made to undertake such
transaction) at the time the right to delay is exercised; provided, however, that the Company may
not exercise such right of delay or withholding of efforts more frequently than two times in any
12-month period and the aggregate period of any such delays or withholdings shall not exceed 60
days in any such 12-month period.

          The Company and the Guarantors agree to use their reasonable best efforts to keep the Shelf
Registration Statement continuously effective until the expiration of the period referred to in
Rule 144(k) under the Securities Act with respect to the Registrable Securities or such shorter
period that will terminate when all the Registrable Securities covered by the Shelf Registration
Statement have been sold pursuant to the Shelf Registration Statement (the “Shelf Effectiveness
Period”). The Company and the Guarantors further agree to supplement or amend the Shelf
Registration Statement and the related Prospectus if required by the rules, regulations or
instructions applicable to the registration form used by the Company for such Shelf Registration
Statement or by the Securities Act or by any other rules and regulations thereunder for shelf
registration or if reasonably requested by a Holder of Registrable Securities with respect to
information relating to such Holder, and to use their reasonable

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best efforts to cause any such
amendment to become effective and such Shelf Registration Statement and Prospectus to become usable
as soon as thereafter practicable. The Company and the Guarantors agree to furnish to the Holders
of Registrable Securities copies of any such supplement or amendment promptly after its being used
or filed with the SEC.

          (c) The Company and the Guarantors shall pay all Registration Expenses in connection with the
registration pursuant to Section 2(a) and Section 2(b) hereof. Each Holder shall pay all
underwriting discounts and commissions and transfer taxes, if any, relating to the sale or
disposition of such Holder’s Registrable Securities pursuant to the Shelf Registration Statement.

          (d) An Exchange Offer Registration Statement pursuant to Section 2(a) hereof or a Shelf
Registration Statement pursuant to Section 2(b) hereof will not be deemed to have become effective
unless it has been declared effective by the SEC.

          In the event that either the Exchange Offer is not completed or the Shelf Registration
Statement, if required hereby, is not declared effective on or prior to the date that is 190 days
after the Closing Date (the “Target Registration Date”), the interest rate on the Registrable
Securities will be increased by (i) 0.25% per annum for the first 90-day period immediately
following the Target Registration Date and (ii) an additional 0.25% per annum with respect to each
subsequent 90-day period, in each case until the Exchange Offer is completed or the Shelf
Registration Statement, if required hereby, is declared effective by the SEC or the Securities
become freely tradable under the Securities Act, up to a maximum of 1.00% per annum of additional
interest.

          If the Shelf Registration Statement has been declared effective and thereafter either ceases
to be effective or the Prospectus contained therein ceases to be usable at any time during the
Shelf Effectiveness Period, and such failure to remain effective or usable exists for more than 30
days (whether or not consecutive) in any 12-month period, then the interest rate on the Registrable
Securities will be increased by 1.00% per annum commencing on the 31st day in such
12-month period and ending on such date that the Shelf Registration Statement has again been
declared effective or the Prospectus again becomes usable.

          (e) Without limiting the remedies available to the Initial Purchasers and the Holders, the
Company and the Guarantors acknowledge that any failure by the Company or the Guarantors to comply
with their obligations under Section 2(a) and Section 2(b) hereof may result in material
irreparable injury to the Initial Purchasers or the Holders for which there is no adequate remedy
at law, that it will not be possible to measure damages for such injuries precisely and that, in
the event of any such failure, the Initial Purchasers or any Holder may obtain such relief as may
be required to specifically enforce the Company’s and the Guarantors’ obligations under Section
2(a) and Section 2(b) hereof.

          (f) The Company represents, warrants and covenants that it (including its agents and
representatives) will not prepare, make, use, authorize, approve or refer to any “free-writing
prospectus” (as defined in Rule 405 under the Securities Act), other than any communication
pursuant to Rule 134 under the Securities Act or any document constituting an offer to sell or
solicitation of an offer to buy the Securities or the Exchange Securities that falls within the
exception from the definition of prospectus in Section 2(a)(10)(a) of the Securities Act.

          3. Registration Procedures. In connection with their obligations pursuant to Section
2(a) and Section 2(b) hereof, the Company and the Guarantors shall as expeditiously as possible

          (a) prepare and file with the SEC a Registration Statement on the appropriate form under the
Securities Act, which form (x) shall be selected by the Company and the Guarantors, (y) shall, in
the case of a Shelf Registration, be available for the sale of the Registrable Securities by

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the selling Holders thereof and (z) shall comply as to form in all material respects with the
requirements of the applicable form and include all financial statements required by the SEC to be
filed therewith; and use their reasonable best efforts to cause such Registration Statement to
become effective and remain effective for the applicable period in accordance with Section 2
hereof;

          (b) subject to the second sentence of the second paragraph of Section 2(b), prepare and file
with the SEC such amendments and post-effective amendments to each Registration Statement as may be
necessary to keep such Registration Statement effective for the applicable period in accordance
with Section 2 hereof and cause each Prospectus to be supplemented by any required prospectus
supplement and, as so supplemented, to be filed pursuant to Rule 424 under the Securities Act and
keep each Prospectus current during the period described in Section 4(3) of and Rule 174 under the
Securities Act that is applicable to transactions by brokers or dealers with respect to the
Registrable Securities or Exchange Securities;

          (c) in the case of a Shelf Registration, furnish to each Holder of Registrable Securities, to
counsel for the Initial Purchasers, to counsel for such Holders and to each Underwriter of an
Underwritten Offering of Registrable Securities, if any, without charge, as many copies of each
Prospectus, including each preliminary Prospectus, and any amendment or supplement thereto, in
order to facilitate the sale or other disposition of the Registrable Securities thereunder; and the
Company and the Guarantors consent to the use of such Prospectus and any amendment or supplement
thereto in accordance with applicable law by each of the selling Holders of Registrable Securities
and any such Underwriters in connection with the offering and sale of the Registrable Securities
covered by and in the manner described in such Prospectus or any amendment or supplement thereto in
accordance with applicable law;

          (d) use their reasonable best efforts to register or qualify the Registrable Securities under
all applicable state securities or blue sky laws of such jurisdictions as any Holder of Registrable
Securities covered by a Registration Statement shall reasonably request in writing by the time the
applicable Registration Statement is declared effective by the SEC; cooperate with the Holders in
connection with any filings required to be made with the National Association of Securities
Dealers, Inc.; and do any and all other acts and things that may be reasonably necessary or
advisable to enable each Holder to complete the disposition in each such jurisdiction of the
Registrable Securities owned by such Holder; provided, however, that neither the Company nor any
Guarantor shall be required to (i) qualify as a foreign corporation or other entity or as a dealer
in securities in any such jurisdiction where it would not otherwise be required to so qualify, (ii)
file any general consent to service of process in any such jurisdiction or (iii) subject itself to
taxation in any such jurisdiction if it is not so subject;

          (e) in the case of a Shelf Registration, notify each Holder of Registrable Securities, counsel
for such Holders and counsel for the Initial Purchasers promptly and, if requested by any such
Holder or counsel, confirm such advice in writing (i) when a Registration Statement has become
effective and when any post-effective amendment thereto has been filed and becomes effective, (ii)
of any request by the SEC or any state securities authority for amendments and supplements to a
Registration Statement and Prospectus or for additional information after the Registration
Statement has become effective, (iii) of the issuance by the SEC or any state securities authority
of any stop order suspending the effectiveness of a Registration Statement or the initiation of any
proceedings for that purpose, (iv) if, between the effective date of a Registration Statement and
the closing of any sale of Registrable Securities covered thereby, the representations and
warranties of the Company or any
Guarantor contained in any underwriting agreement, securities sales agreement or other similar
agreement, if any, relating to an offering of such Registrable Securities cease to be true and
correct in all material respects or if the Company or any Guarantor receives any notification with
respect to the suspension of the qualification of the Registrable Securities for sale in any
jurisdiction or the initiation of any proceeding for such purpose, (v) of the happening of any
event during the period a Shelf Registration Statement is effective that makes any statement made
in such

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Registration Statement or the related Prospectus untrue in any material respect or that
requires the making of any changes in such Registration Statement or Prospectus in order to make
the statements therein not misleading and (vi) of any determination by the Company or any Guarantor
that a post-effective amendment to a Registration Statement would be appropriate;

          (f) use their reasonable best efforts to obtain the withdrawal of any order suspending the
effectiveness of a Registration Statement at the earliest possible moment and provide immediate
notice to each Holder of the withdrawal of any such order;

          (g) in the case of a Shelf Registration, furnish to each Holder of Registrable Securities,
without charge, at least one conformed copy of each Registration Statement and any post-effective
amendment thereto (without any documents incorporated therein by reference or exhibits thereto,
unless requested);

          (h) in the case of a Shelf Registration, cooperate with the selling Holders of Registrable
Securities to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold and not bearing any restrictive legends and enable such
Registrable Securities to be issued in such denominations and registered in such names (consistent
with the provisions of the Indenture) as the selling Holders may reasonably request at least one
Business Day prior to the closing of any sale of Registrable Securities;

          (i) subject to the second sentence of the second paragraph of Section 2(b), in the case of a
Shelf Registration, upon the occurrence of any event contemplated by Section 3(e)(v) hereof, use
their reasonable best efforts to prepare and file with the SEC a supplement or post-effective
amendment to a Registration Statement or the related Prospectus or any document incorporated
therein by reference or file any other required document so that, as thereafter delivered to
purchasers of the Registrable Securities, such Prospectus will not contain any untrue statement of
a material fact or omit to state a material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading; and the Company and the
Guarantors shall notify the Holders of Registrable Securities to suspend use of the Prospectus as
promptly as practicable after the occurrence of such an event, and such Holders hereby agree to
suspend use of the Prospectus until the Company and the Guarantors have amended or supplemented the
Prospectus to correct such misstatement or omission;

          (j) a reasonable time prior to the filing of any Registration Statement, any Prospectus, any
amendment to a Registration Statement or amendment or supplement to a Prospectus or of any document
that is to be incorporated by reference into a Registration Statement or a Prospectus after initial
filing of a Registration Statement, provide copies of such document to the Initial Purchasers and
their counsel (and, in the case of a Shelf Registration Statement, to the Holders of Registrable
Securities and their counsel) and make such of the representatives of the Company and the
Guarantors as shall be reasonably requested by the Initial Purchasers or their counsel (and, in the
case of a Shelf Registration Statement, the Holders of Registrable Securities or their counsel)
available for discussion of such document; and the Company and the Guarantors shall not, at any
time after initial filing of a Registration Statement, file any Prospectus, any amendment of or
supplement to a Registration Statement or a Prospectus, or any document that is to be incorporated
by reference into a Registration Statement or a Prospectus, of which the Initial Purchasers and
their counsel (and, in the case of a Shelf Registration Statement, the Holders of Registrable
Securities and their counsel) shall not have previously been advised and furnished a copy or to
which the Initial Purchasers or their counsel (and, in the case of a Shelf Registration Statement, the Holders or their counsel) shall
reasonably object;

          (k) obtain a CUSIP number for all Exchange Securities or Registrable Securities, as the case
may be, not later than the effective date of a Registration Statement;

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          (l) cause the Indenture to be qualified under the Trust Indenture Act in connection with the
registration of the Exchange Securities or Registrable Securities, as the case may be; cooperate
with the Trustee and the Holders to effect such changes to the Indenture as may be required for the
Indenture to be so qualified in accordance with the terms of the Trust Indenture Act; and execute,
and use their reasonable best efforts to cause the Trustee to execute, all documents as may be
required to effect such changes and all other forms and documents required to be filed with the SEC
to enable the Indenture to be so qualified in a timely manner;

          (m) in the case of a Shelf Registration, make available for inspection by a representative of
the Holders of the Registrable Securities (an “Inspector”), any Underwriter participating in any
disposition pursuant to such Shelf Registration Statement, and attorneys and accountants designated
by the Holders, at reasonable times and in a reasonable manner, all pertinent financial and other
records, documents and properties of the Company and the Guarantors, and cause the respective
officers, directors and employees of the Company and the Guarantors to supply all information
reasonably requested by any such Inspector, Underwriter, attorney or accountant in connection with
a Shelf Registration Statement to the same extent that any financial or other records, documents
and properties and all other information was provided to the Initial Purchasers in connection with
the initial issuance of the Notes; provided, however, that if any such information is identified
by the Company or any Guarantor as being confidential or proprietary, each Person receiving such
information shall take such actions as are reasonably necessary to protect the confidentiality of
such information to the extent such action is otherwise not inconsistent with, an impairment of or
in derogation of the rights and interests of any Inspector, Holder or Underwriter;

          (n) in the case of a Shelf Registration, use their reasonable best efforts to cause all
Registrable Securities to be listed on any securities exchange or any automated quotation system on
which similar securities issued or guaranteed by the Company or any Guarantor are then listed if
requested by the Majority Holders, to the extent such Registrable Securities satisfy applicable
listing requirements;

          (o) if reasonably requested by any Holder of Registrable Securities covered by a Registration
Statement, promptly incorporate in a Prospectus supplement or post-effective amendment such
information with respect to such Holder as such Holder reasonably requests to be included therein
and make all required filings of such Prospectus supplement or such post-effective amendment as
soon as the Company has received notification of the matters to be incorporated in such filing; and

          (p) in the case of a Shelf Registration, enter into such customary agreements and take all
such other actions in connection therewith (including those requested by the Holders of a majority
in principal amount of the Registrable Securities being sold) in order to expedite or facilitate
the disposition of such Registrable Securities including, but not limited to, an Underwritten
Offering and in such connection, (i) to the extent possible, make such representations and
warranties to the Holders and any Underwriters of such Registrable Securities with respect to the
business of the Company and its subsidiaries, the Registration Statement, Prospectus and documents
incorporated by reference or deemed incorporated by reference, if any, in each case, in form,
substance and scope as are customarily made by issuers to underwriters in underwritten offerings
and confirm the same if and when requested, (ii) obtain opinions of counsel to the Company and the
Guarantors (which counsel and opinions, in form, scope and substance, shall be reasonably
satisfactory to the Holders and such Underwriters and their respective counsel) addressed to each
selling Holder and Underwriter of Registrable Securities, covering the matters customarily covered
in opinions requested in underwritten offerings, (iii) obtain “comfort” letters from the
independent certified public accountants of the Company and the
Guarantors (and, if necessary, any other certified public accountant of any subsidiary of the
Company or any Guarantor, or of any business acquired by the Company or any Guarantor for which
financial statements and financial data are or are required to be included in the Registration
Statement) addressed to each selling Holder and Underwriter of Registrable Securities, such letters
to be in customary form and covering matters of the type customarily covered in “comfort” letters
in connection with underwritten offerings and (iv) deliver such documents and certificates as may
be reasonably

-9-

 

requested by the Holders of a majority in principal amount of the Registrable
Securities being sold or the Underwriters, and which are customarily delivered in underwritten
offerings, to evidence the continued validity of the representations and warranties of the Company
and the Guarantors made pursuant to clause (i) above and to evidence compliance with any customary
conditions contained in an underwriting agreement.

          In the case of a Shelf Registration Statement, the Company may require each Holder of
Registrable Securities to furnish to the Company such information regarding such Holder and the
proposed disposition by such Holder of such Registrable Securities as the Company and the
Guarantors may from time to time reasonably request in writing and the Company may exclude from
such registration the Registrable Securities of any Holder that fails to furnish such information
within a reasonable time after receiving such request.

          In the case of a Shelf Registration Statement, each Holder of Registrable Securities agrees
that, upon receipt of any notice from the Company and the Guarantors of the happening of any event
of the kind described in Section 3(e)(iii) or 3(e)(v) hereof, such Holder will forthwith
discontinue disposition of Registrable Securities pursuant to a Registration Statement until such
Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by Section
3(i) hereof and, if so directed by the Company and the Guarantors, such Holder will deliver to the
Company and the Guarantors all copies in its possession, other than permanent file copies then in
such Holder’s possession, of the Prospectus covering such Registrable Securities that is current at
the time of receipt of such notice.

          If the Company and the Guarantors shall give any such notice to suspend the disposition of
Registrable Securities pursuant to a Registration Statement, the Company and the Guarantors shall
extend the period during which the Registration Statement shall be maintained effective pursuant to
this Agreement by the number of days during the period from and including the date of the giving of
such notice to and including the date when the Holders shall have received copies of the
supplemented or amended Prospectus necessary to resume such dispositions. The Company and the
Guarantors may give any such notice only twice during any 365-day period and any such suspensions
shall not exceed 30 days for each suspension and there shall not be more than two suspensions in
effect during any 365-day period.

          The Holders of Registrable Securities covered by a Shelf Registration Statement who desire to
do so may sell such Registrable Securities in an Underwritten Offering. In any such Underwritten
Offering, the investment banker or investment bankers and manager or managers (the “Underwriters”)
that will administer the offering will be selected by the Majority Holders of the Registrable
Securities included in such offering.

          4. Participation of Broker-Dealers in Exchange Offer. (a)  The Staff of the SEC has
taken the position that any broker-dealer that receives Exchange Securities for its own account in
the Exchange Offer in exchange for Securities that were acquired by such broker-dealer as a result
of market-making or other trading activities (a “Participating Broker-Dealer”) may be deemed to be
an “underwriter” within the meaning of the Securities Act and must deliver a prospectus meeting the
requirements of the Securities Act in connection with any resale of such Exchange Securities.

          The Company and the Guarantors understand that it is the Staff’s position that if the
Prospectus contained in the Exchange Offer Registration Statement includes a plan of distribution
containing a statement to the above effect and the means by which Participating Broker-Dealers may
resell the Exchange Securities, without naming the Participating Broker-Dealers or specifying
the amount of Exchange Securities owned by them, such Prospectus may be delivered by Participating
Broker-Dealers to satisfy their prospectus delivery obligation under the Securities Act in
connection with resales of Exchange Securities for their own accounts, so long as the Prospectus
otherwise meets the requirements of the Securities Act.

-10-

 

          (b) In light of the above, and notwithstanding the other provisions of this Agreement, the
Company and the Guarantors agree to amend or supplement the Prospectus contained in the Exchange
Offer Registration Statement, as would otherwise be contemplated by Section 3(i), for a period of
up to 180 days after the last Exchange Date (as such period may be extended pursuant to the
penultimate paragraph of Section 3 of this Agreement), if requested by the Initial Purchasers or by
one or more Participating Broker-Dealers, in order to expedite or facilitate the disposition of any
Exchange Securities by Participating Broker-Dealers consistent with the positions of the Staff
recited in Section 4(a) above. The Company and the Guarantors further agree that Participating
Broker-Dealers shall be authorized to deliver such Prospectus during such period in connection with
the resales contemplated by this Section 4.

          (c) The Initial Purchasers shall have no liability to the Company, any Guarantor or any Holder
with respect to any request that they may make pursuant to Section 4(b) above.

          5. Indemnification and Contribution. (a)  The Company and each Guarantor, jointly and
severally, agree to indemnify and hold harmless each Initial Purchaser and each Holder, their
respective affiliates, directors and officers and each Person, if any, who controls any Initial
Purchaser or any Holder within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act, from and against any and all losses, claims, damages and liabilities (including,
without limitation, legal fees and other expenses incurred in connection with any suit, action or
proceeding or any claim asserted, as such fees and expenses are incurred), joint or several, that
arise out of, or are based upon, any untrue statement or alleged untrue statement of a material
fact contained in any Registration Statement or any Prospectus or any omission or alleged omission
to state therein a material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading,
except insofar as such losses, claims, damages or liabilities arise out of, or are based upon, any
untrue statement or omission or alleged untrue statement or omission made in reliance upon and in
conformity with any information relating to any Initial Purchaser or any Holder furnished to the
Company in writing through J.P. Morgan Securities Inc. or any selling Holder expressly for use
therein. In connection with any Underwritten Offering permitted by Section 3, the Company and the
Guarantors, jointly and severally, will also indemnify the Underwriters, if any, selling brokers,
dealers and similar securities industry professionals participating in the distribution, their
respective affiliates and each Person who controls such Persons (within the meaning of the
Securities Act and the Exchange Act) to the same extent as provided above with respect to the
indemnification of the Holders, if requested in connection with any Registration Statement;
provided, however, that the foregoing indemnity agreement with respect to the preliminary
prospectus prepared by the Company in connection with such Underwritten Offering (the “Preliminary
Prospectus”) shall not inure to the benefit of any Underwriter from whom the person asserting any
such losses, claims, damages or liabilities purchased Registrable Securities, or any person
controlling such Underwriter where it shall have been determined by a court of competent
jurisdiction by final and nonappealable judgment that (i) prior to the time when sales of the
Registrable Securities were first made (the “Time of Sale”), the Issuers shall have notified such
Underwriter that the Preliminary Prospectus contains an untrue statement of material fact or omits
to state therein a material fact required to be stated therein in order to make the statements
therein not misleading, (ii) such untrue statement or omission of a material fact was corrected in
an amended or supplemented Preliminary Prospectus or, where permitted by law, a written
communication (as defined in the Securities Act) that constitutes an offer to sell or a
solicitation of an offer to buy the Securities (an “Issuer Written Communication”) (other than the
Preliminary Prospectus, any other time of sale information, and the Prospectus) and such corrected
Preliminary Prospectus or Issuer Written Communication was provided to such Underwriter far enough
in advance of the Time of Sale so that such corrected
Preliminary Prospectus or Issuer Written Communication could have been provided to such person
prior to the Time of Sale, (iii) the Underwriter did not send or give such corrected Preliminary
Prospectus or Issuer Written Communication to such person at or prior to the Time of Sale of the
Registrable Securities to such person, and (iv) such loss, claim, damage or liability would not
have occurred had the Underwriter delivered the corrected Preliminary Prospectus or Issuer Written
Communication to such person.

-11-

 

          (b) Each Holder agrees, severally and not jointly, to indemnify and hold harmless the Company,
the Guarantors, the Initial Purchasers and the other selling Holders, their respective affiliates,
the directors of the Company and the Guarantors, each officer of the Company and the Guarantors who
signed the Registration Statement and each Person, if any, who controls the Company, the
Guarantors, any Initial Purchaser and any other selling Holder within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act to the same extent as the indemnity set forth
in paragraph (a) above, but only with respect to any losses, claims, damages or liabilities that
arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or
omission made in reliance upon and in conformity with any information relating to such Holder
furnished to the Company in writing by such Holder expressly for use in any Registration Statement
and any Prospectus.

          (c) If any suit, action, proceeding (including any governmental or regulatory investigation),
claim or demand shall be brought or asserted against any Person in respect of which indemnification
may be sought pursuant to either paragraph (a) or (b) above, such Person (the “Indemnified Person”)
shall promptly notify the Person against whom such indemnification may be sought (the “Indemnifying
Person”) in writing; provided, however, that the failure to notify the Indemnifying Person shall
not relieve it from any liability that it may have under this Section 5 except to the extent that
it was otherwise unaware of such suit, action, proceeding, claim or demand and that it has been
materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure;
and provided further, however, that the failure to notify the Indemnifying Person shall not relieve
it from any liability that it may have to an Indemnified Person otherwise than under this Section
5. If any such proceeding shall be brought or asserted against an Indemnified Person and it shall
have notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel
reasonably satisfactory to the Indemnified Person to represent the Indemnified Person and any
others entitled to indemnification pursuant to this Section 5 that the Indemnifying Person may
designate in such proceeding and shall pay the fees and expenses of such counsel related to such
proceeding, as incurred. In any such proceeding, any Indemnified Person shall have the right to
retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such
Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have
mutually agreed to the contrary, (ii) the Indemnifying Person has failed within a reasonable time
to retain counsel reasonably satisfactory to the Indemnified Person, (iii) the Indemnified Person
shall have reasonably concluded that there may be legal defenses available to it that are different
from or in addition to those available to the Indemnifying Person, or (iv) the named parties in any
such proceeding (including any impleaded parties) include both the Indemnifying Person and the
Indemnified Person and representation of both parties by the same counsel would be inappropriate
due to actual or potential differing interests between them. It is understood and agreed that the
Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same
jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to
any local counsel) for all Indemnified Persons, and that all such fees and expenses shall be
reimbursed as they are incurred. Any such separate firm (x) for any Initial Purchaser, its
affiliates, directors and officers and any control Persons of such Initial Purchaser shall be
designated in writing by J.P. Morgan Securities Inc., (y) for any Holder, its affiliates, directors
and officers and any control Persons of such Holder shall be designated in writing by the Majority
Holders and (z) in all other cases shall be designated in writing by the Company. The Indemnifying
Person shall not be liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent or if there be a final judgment for the plaintiff, the
Indemnifying Person agrees to indemnify each Indemnified Person from and against any loss or
liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at
any time an Indemnified Person shall have requested that an Indemnifying Person reimburse the Indemnified Person for fees and expenses of counsel as contemplated by this
paragraph, the Indemnifying Person shall be liable for any settlement of any proceeding effected
without its written consent if (i) such settlement is entered into more than 30 days after receipt
by the Indemnifying Person of such request and (ii) the Indemnifying Person shall not have
reimbursed the Indemnified Person in accordance with such request prior to the date of such
settlement. No Indemnifying Person shall, without the written consent of the Indemnified Person,
effect any settlement of any pending or threatened proceeding in respect of which any Indemnified
Person is or could have been a party and

-12-

 

indemnification could have been sought hereunder by such
Indemnified Person, unless such settlement (A) includes an unconditional release of such
Indemnified Person, in form and substance reasonably satisfactory to such Indemnified Person, from
all liability on claims that are the subject matter of such proceeding and (B) does not include any
statement as to or any admission of fault, culpability or a failure to act by or on behalf of any
Indemnified Person.

          (d) If the indemnification provided for in paragraphs (a) and (b) above is unavailable to an
Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities
referred to therein, then each Indemnifying Person under such paragraph, in lieu of indemnifying
such Indemnified Person thereunder, shall contribute to the amount paid or payable by such
Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such
proportion as is appropriate to reflect the relative benefits received by the Company and the
Guarantors from the offering of the Securities and the Exchange Securities, on the one hand, and by
the Holders from receiving Securities or Exchange Securities registered under the Securities Act,
on the other hand, or (ii) if the allocation provided by clause (i) is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative benefits referred to in
clause (i) but also the relative fault of the Company and the Guarantors on the one hand and the
Holders on the other in connection with the statements or omissions that resulted in such losses,
claims, damages or liabilities, as well as any other relevant equitable considerations. The
relative fault of the Company and the Guarantors, on the one hand, and the Holders, on the other,
shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates
to information supplied by the Company and the Guarantors or by the Holders and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission.

          (e) The Company, the Guarantors and the Holders agree that it would not be just and equitable
if contribution pursuant to this Section 5 were determined by pro rata allocation (even if the
Holders were treated as one entity for such purpose) or by any other method of allocation that does
not take account of the equitable considerations referred to in paragraph (d) above. The amount
paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities
referred to in paragraph (d) above shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses incurred by such Indemnified Person in connection with any such
action or claim. Notwithstanding the provisions of this Section 5, in no event shall a Holder be
required to contribute any amount in excess of the amount by which the total price at which the
Securities or Exchange Securities sold by such Holder exceeds the amount of any damages that such
Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was
not guilty of such fraudulent misrepresentation.

          (f) The remedies provided for in this Section 5 are not exclusive and shall not limit any
rights or remedies that may otherwise be available to any Indemnified Person at law or in equity.

          (g) The indemnity and contribution provisions contained in this Section 5 shall remain
operative and in full force and effect regardless of (i) any termination of this Agreement, (ii)
any investigation made by or on behalf of the Initial Purchasers or any Holder, their respective
affiliates or any Person controlling any Initial Purchaser or any Holder, or by or on behalf of the
Company or the Guarantors, their respective affiliates or the officers or directors of or any Person
controlling the Company or the Guarantors, (iii) acceptance of any of the Exchange Securities and
(iv) any sale of Registrable Securities pursuant to a Shelf Registration Statement.

-13-

 

          6. General.

          (a) No Inconsistent Agreements. The Company and the Guarantors represent, warrant and agree
that (i) the rights granted to the Holders hereunder do not in any way conflict with and are not
inconsistent with the rights granted to the holders of any other outstanding securities issued or
guaranteed by the Company or any Guarantor under any other agreement and (ii) neither the Company
nor any Guarantor has entered into, or on or after the date of this Agreement will enter into, any
agreement that is inconsistent with the rights granted to the Holders of Registrable Securities in
this Agreement or otherwise conflicts with the provisions hereof.

          (b) Amendments and Waivers. The provisions of this Agreement, including the provisions of
this sentence, may not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given unless the Company and the Guarantors have obtained the
written consent of Holders of at least a majority in aggregate principal amount of the outstanding
Registrable Securities affected by such amendment, modification, supplement, waiver or consent;
provided, however, that no amendment, modification, supplement, waiver or consent to any departure
from the provisions of Section 5 hereof shall be effective as against any Holder of Registrable
Securities unless consented to in writing by such Holder. Any amendments, modifications,
supplements, waivers or consents pursuant to this Section 6(b) shall be by a writing executed by
each of the parties hereto.

          (c) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand-delivery, registered first-class mail, telex, telecopier, or any courier
guaranteeing overnight delivery (i) if to a Holder, at the most current address given by such
Holder to the Company by means of a notice given in accordance with the provisions of this Section
6(c), which address initially is, with respect to the Initial Purchasers, the address set forth in
the Purchase Agreement, (ii) if to the Company and the Guarantors, initially at the Company’s
address set forth in the Purchase Agreement and thereafter at such other address, notice of which
is given in accordance with the provisions of this Section 6(c), and (iii) to such other persons at
their respective addresses as provided in the Purchase Agreement and thereafter at such other
address, notice of which is given in accordance with the provisions of this Section 6(c). All such
notices and communications shall be deemed to have been duly given at the time delivered by hand,
if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if
mailed; when answered back, if telexed; when receipt is acknowledged, if telecopied; and on the
next Business Day if timely delivered to an air courier guaranteeing overnight delivery. Copies of
all such notices, demands or other communications shall be concurrently delivered by the Person
giving the same to the Trustee, at the address specified in the Indenture.

          (d) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors, assigns and transferees of each of the parties, including, without limitation and
without the need for an express assignment, subsequent Holders; provided, however, that nothing
herein shall be deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of the Purchase Agreement or the Indenture. If any transferee
of any Holder shall acquire Registrable Securities in any manner, whether by operation of law or
otherwise, such Registrable Securities shall be held subject to all the terms of this Agreement,
and by taking and holding such Registrable Securities such Person shall be conclusively deemed to
have agreed to be bound by and to perform all of the terms and provisions of this Agreement and
such Person shall be entitled to receive the benefits hereof. The Initial Purchasers (in their
capacity as Initial Purchasers) shall have no liability or obligation to the Company or the
Guarantors with respect to any failure by a Holder to comply with, or any breach by any Holder of,
any of the obligations of such Holder under this Agreement.

          (e) Purchases and Sales of Securities. The Company and the Guarantors shall not, and shall
use their reasonable best efforts to cause their affiliates (as defined in Rule 405 under the
Securities Act) not to, purchase and then resell or otherwise transfer any Registrable Securities.

-14-

 

          (f) Third Party Beneficiaries. Each Holder shall be a third party beneficiary to the
agreements made hereunder between the Company and the Guarantors, on the one hand, and the Initial
Purchasers, on the other hand, and shall have the right to enforce such agreements directly to the
extent it deems such enforcement necessary or advisable to protect its rights or the rights of
other Holders hereunder.

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

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

          (i) Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York.

          (j) Miscellaneous. This Agreement contains the entire agreement between the parties relating
to the subject matter hereof and supersedes all oral statements and prior writings with respect
thereto. If any term, provision, covenant or restriction contained in this Agreement is held by a
court of competent jurisdiction to be invalid, void or unenforceable or against public policy, the
remainder of the terms, provisions, covenants and restrictions contained herein shall remain in
full force and effect and shall in no way be affected, impaired or invalidated. The Company, the
Guarantors and the Initial Purchasers shall endeavor in good faith negotiations to replace the
invalid, void or unenforceable provisions with valid provisions the economic effect of which comes
as close as possible to that of the invalid, void or unenforceable provisions.

[Signature page follows]

-15-

 

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

	 	 	 	 	 
	 	LAMAR MEDIA CORP.

 	 
	 	By:  	/s/ Keith A. Istre
 	 
	 	 	Name:  	Keith A. Istre 	 
	 	 	Title:  	Executive Vice President/
Chief Financial Officer 	 
	 
	 	AMERICAN SIGNS, INC.

COLORADO LOGOS, INC.

FLORIDA LOGOS, INC.

KANSAS LOGOS, INC.

LAMAR ADVERTISING OF COLORADO SPRINGS, INC.

LAMAR ADVERTISING OF KENTUCKY, INC.

LAMAR ADVERTISING OF MICHIGAN, INC.

LAMAR ADVERTISING OF OKLAHOMA, INC.

LAMAR ADVERTISING OF SOUTH DAKOTA, INC.

LAMAR ADVERTISING OF YOUNGSTOWN, INC.

LAMAR ADVERTISING SOUTHWEST, INC.

LAMAR BENCHES, INC.

LAMAR DOA TENNESSEE HOLDINGS, INC.

LAMAR DOA TENNESSEE, INC.

LAMAR ELECTRICAL, INC.

LAMAR FLORIDA, INC.

LAMAR I-40 WEST, INC.

LAMAR OBIE CORPORATION

LAMAR OCI NORTH CORPORATION

LAMAR OCI SOUTH CORPORATION

LAMAR OHIO OUTDOOR HOLDING CORP.

LAMAR OKLAHOMA HOLDING COMPANY, INC.

LAMAR PENSACOLA TRANSIT, INC.

LAMAR TEXAS GENERAL PARTNER, INC.

MICHIGAN LOGOS, INC.

MINNESOTA LOGOS, INC.

NEBRASKA LOGOS, INC.

NEVADA LOGOS, INC.

NEW MEXICO LOGOS, INC.

O. B. WALLS, INC.

OHIO LOGOS, INC.

OUTDOOR MARKETING SYSTEMS, INC.

PREMERE OUTDOOR, INC.

SOUTH CAROLINA LOGOS, INC.

TENNESSEE LOGOS, INC.

TLC PROPERTIES II, INC.

TLC PROPERTIES, INC.

UTAH LOGOS, INC.

 	 
	 	 	 
	 	 	 
	 	 	 

[Registration Rights Agreement Signature Page]

 

	 	 	 	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	               /s/ Keith A. Istre
 	 
	 	 	Name:  	Keith A. Istre 	 
	 	 	Title:  	Executive Vice President/
Chief Financial Officer 	 
	 
	 	DELAWARE LOGOS, L.L.C.

GEORGIA LOGOS, L.L.C.

KENTUCKY LOGOS, LLC

MAINE LOGOS, L.L.C.

MISSISSIPPI LOGOS, L.L.C.

MISSOURI LOGOS, LLC

NEW JERSEY LOGOS, L.L.C.

OKLAHOMA LOGOS, L.L.C.

VIRGINIA LOGOS, LLC

WASHINGTON LOGOS, L.L.C.

 	 
	 	By:  	Interstate Logos, L.L.C., its Managing Member
 	 
	 	By:  	     Lamar Media Corp., its Managing Member
 	 
	 	 	 
	 	By:  	     /s/ Keith A. Istre
 	 
	 	 	Name:  	Keith A. Istre 	 
	 	 	Title:  	Executive Vice President/
Chief Financial Officer 	 
	 
	 	INTERSTATE LOGOS, L.L.C.

THE LAMAR COMPANY, L.L.C.

 	 
	 	By:  	Lamar Media Corp., its Managing Member
 	 
	 	 	 
	 	By:  	       /s/ Keith A. Istre
 	 
	 	 	Name:  	Keith A. Istre 	 
	 	 	Title:  	Executive Vice President/
Chief Financial Officer 	 

[Registration Rights Agreement Signature Page]

 

	 	 	 	 	 

	 	 	 	 	 
	 	LAMAR ADVERTISING OF LOUISIANA, L.L.C.

LAMAR ADVERTISING OF PENN, LLC

LAMAR TENNESSEE, L.L.C.

LC BILLBOARD L.L.C.

 	 
	 	By:  	The Lamar Company, L.L.C., its Managing Member
 	 
	 	 	 
	 	By:  	          Lamar Media Corp., its Managing Member
 	 
	 	 	 
	 	By:  	          /s/ Keith A. Istre
 	 
	 	 	Name:  	Keith A. Istre 	 
	 	 	Title:  	Executive Vice President/
Chief Financial Officer 	 
	 
	 	LAMAR TEXAS LIMITED PARTNERSHIP

 	 
	 	By:  	Lamar Texas General Partner, Inc., its General Partner
 	 
	 	 	 
	 	By:  	             /s/ Keith A. Istre
 	 
	 	 	Name:  	Keith A. Istre 	 
	 	 	Title:  	Executive Vice President/
Chief Financial Officer 	 
	 
	 	TLC FARMS, L.L.C.

TLC Properties, L.L.C.

 	 
	 	By:  	TLC Properties, Inc., its Managing Member
 	 
	 	 	 
	 	By:  	       /s/ Keith A. Istre
 	 
	 	 	Name:  	Keith A. Istre 	 
	 	 	Title:  	Executive Vice President/
Chief Financial Officer 	 
	 
	 	OUTDOOR PROMOTIONS WEST, LLC

TRIUMPH OUTDOOR RHODE ISLAND, LLC

 	 
	 	By:  	Triumph Outdoor Holdings, LLC, its Managing Member
 	 
	 	 	 
	 	By:  	                  Lamar Central Outdoor, LLC, its Managing Member
 	 
	 	 	 
	 	By:  	                       Lamar Media Corp., its Managing Member
 	 
	 	 	 	 
	 	 	 	 

[Registration Rights Agreement Signature Page]

 

	 	 	 	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	               /s/ Keith A. Istre
 	 
	 	 	Name:  	Keith A. Istre 	 
	 	 	Title:  	Executive Vice President/
Chief Financial Officer 	 
	 
	 	LAMAR ADVANTAGE GP COMPANY, LLC

LAMAR ADVANTAGE LP COMPANY, LLC

TRIUMPH OUTDOOR HOLDINGS, LLC

 	 
	 	By:  	Lamar Central Outdoor, LLC, its Managing Member
 	 
	 	 	 
	 	By:  	                       Lamar Media Corp., its Managing Member
 	 
	 	 	 
	 	By:  	             /s/ Keith A. Istre
 	 
	 	 	Name:  	Keith A. Istre 	 
	 	 	Title:  	Executive Vice President/
Chief Financial Officer 	 
	 
	 	LAMAR CENTRAL OUTDOOR, LLC

 	 
	 	By:  	Lamar Media Corp., its Managing Member
 	 
	 	 	 
	 	By:  	       /s/ Keith A. Istre
 	 
	 	 	Name:  	Keith A. Istre 	 
	 	 	Title:  	Executive Vice President/
Chief Financial Officer 	 
	 
	 	LAMAR AIR, L.L.C

 	 
	 	By:  	The Lamar Company, L.L.C., its Managing Member
 	 
	 	By:  	          Lamar Media Corp., its Managing Member
 	 
	 	 	 
	 	By:  	          /s/ Keith A. Istre
 	 
	 	 	Name:  	Keith A. Istre 	 
	 	 	Title:  	Executive Vice President/
Chief Financial Officer 	 
	 
	 	LAMAR T.T.R., L.L.C.

 	 
	 	By:  	Lamar Advertising of Youngstown, Inc., its Managing Member
 	 
	 	 	 	 
	 	 	 	 

[Registration Rights Agreement Signature Page]

 

	 	 	 	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	               /s/ Keith A. Istre
 	 
	 	 	Name:  	Keith A. Istre 	 
	 	 	Title:  	Executive Vice President/
Chief Financial Officer 	 
	 
	 	OUTDOOR MARKETING SYSTEMS, L.L.C.

 	 
	 	By:  	Outdoor Marketing Systems, Inc., its Managing Member
 	 
	 	 	 
	 	By:  	              /s/ Keith A. Istre
 	 
	 	 	Name:  	Keith A. Istre 	 
	 	 	Title:  	Executive Vice President/
Chief Financial Officer 	 
	 
	 	OBIE BILLBOARD LLC

 	 
	 	By:  	Lamar Obie Corporation, its Managing Member
 	 
	 	 	 
	 	By:  	             /s/ Keith A. Istre
 	 
	 	 	Name:  	Keith A. Istre 	 
	 	 	Title:  	Executive Vice President/
Chief Financial Officer 	 
	 
	 	TEXAS LOGOS, L.P.

 	 
	 	By:  	Oklahoma Logos, L.L.C., its General Partner
 	 
	 	By:  	                   Interstate Logos, L.L.C., its Managing Member
 	 
	 	By:  	                       Lamar Media Corp., its Managing Member
 	 
	 	 	 
	 	By:  	             /s/ Keith A. Istre
 	 
	 	 	Name:  	Keith A. Istre 	 
	 	 	Title:  	Executive Vice President/
Chief Financial Officer 	 
	 
	 	LAMAR ADVANTAGE OUTDOOR COMPANY, L.P.

 	 
	 	By:  	Lamar Advantage GP Company, LLC, its General Partner
 	 
	 	By:  	                  Lamar Central Outdoor, LLC, its Managing Member
 	 
	 	By:  	                       Lamar Media Corp., its Managing Member
 	 
	 	 	 	 
	 	 	 	 

[Registration Rights Agreement Signature Page]

 

	 	 	 	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	               /s/ Keith A. Istre
 	 
	 	 	Name:  	Keith A. Istre 	 
	 	 	Title:  	Executive Vice President/
Chief Financial Officer 	 
	 
	 	LAMAR ADVANTAGE HOLDING COMPANY

 	 
	 	By:  	/s/ Keith A. Istre
 	 
	 	 	Name:  	Keith A. Istre 	 
	 	 	Title:  	Executive Vice President/
Chief Financial Officer 	 

[Registration Rights Agreement Signature Page]

 

	 	 	 	 	 

Confirmed and accepted as of the date first above written:

J.P. MORGAN SECURITIES INC.

For itself and on behalf of the

several Initial Purchasers

	 	 	 	 	 
	By:
	 	/s/ Earl E. Dowling	 
	 

	 	 

	 
	 
	 	Name:	 Earl E. Dowling	 
	 
	 	Title:	 Vice President	 

[Registration Rights Agreement Signature Page]

 

SCHEDULE 1

GUARANTORS

	 	 	 
	Subsidiary/Guarantor	 	Jurisdiction of Organization
	American Signs, Inc.

	 	Washington
	Canadian TODS Limited

	 	Nova Scotia, Canada*
	Colorado Logos, Inc.

	 	Colorado
	Delaware Logos, L.L.C.

	 	Delaware
	Florida Logos, Inc.

	 	Florida
	Georgia Logos, L.L.C.

	 	Georgia
	Interstate Logos, L.L.C.

	 	Louisiana
	Kansas Logos, Inc.

	 	Kansas
	Kentucky Logos, LLC

	 	Kentucky
	Lamar Advantage GP Company, LLC

	 	Delaware
	Lamar Advantage Holding Company

	 	Delaware
	Lamar Advantage LP Company, LLC

	 	Delaware
	Lamar Advantage Outdoor Company, L.P.

	 	Delaware
	Lamar Advertising of Colorado Springs, Inc.

	 	Colorado
	Lamar Advertising of Kentucky, Inc.

	 	Kentucky
	Lamar Advertising of Louisiana, L.L.C.

	 	Louisiana
	Lamar Advertising of Michigan, Inc.

	 	Michigan
	Lamar Advertising of Oklahoma, Inc.

	 	Oklahoma
	Lamar Advertising of Penn, LLC

	 	Delaware
	Lamar Advertising of Puerto Rico, Inc.

	 	Puerto Rico*
	Lamar Advertising of South Dakota, Inc.

	 	South Dakota
	Lamar Advertising of Youngstown, Inc.

	 	Delaware
	Lamar Advertising Southwest, Inc.

	 	Nevada
	Lamar Air, L.L.C.

	 	Louisiana
	Lamar Benches, Inc.

	 	Oklahoma
	Lamar Canadian Outdoor Company

	 	Ontario, Canada*
	Lamar Central Outdoor, LLC

	 	Delaware
	Lamar DOA Tennessee Holdings, Inc.

	 	Delaware
	Lamar DOA Tennessee, Inc.

	 	Delaware
	Lamar Electrical, Inc.

	 	Louisiana
	Lamar Florida, Inc.

	 	Florida
	Lamar I-40 West, Inc.

	 	Oklahoma
	Lamar Obie Corporation

	 	Delaware
	Lamar OCI North Corporation

	 	Delaware
	Lamar OCI South Corporation

	 	Mississippi
	Lamar Ohio Outdoor Holding Corp.

	 	Ohio
	Lamar Oklahoma Holding Company, Inc.

	 	Oklahoma
	Lamar Pensacola Transit, Inc.

	 	Florida
	Lamar T.T.R., L.L.C.

	 	Arizona
	Lamar Tennessee, L.L.C.

	 	Tennessee
	Lamar Texas General Partner, Inc.

	 	Louisiana
	Lamar Texas Limited Partnership

	 	Texas
	Lamar Transit Advertising Canada Ltd.

	 	British Columbia*
	LC Billboard L.L.C.

	 	Delaware
	Maine Logos, L.L.C.

	 	Maine
	Michigan Logos, Inc.

	 	Michigan
	Minnesota Logos, Inc.

	 	Minnesota
	Mississippi Logos, L.L.C.

	 	Mississippi

 

	 	 	 
	Subsidiary/Guarantor	 	Jurisdiction of Organization
	Missouri Logos, a Partnership

	 	Missouri*
	Missouri Logos, LLC

	 	Missouri
	Nebraska Logos, Inc.

	 	Nebraska
	Nevada Logos, Inc.

	 	Nevada
	New Jersey Logos, L.L.C.

	 	New Jersey
	New Mexico Logos, Inc.

	 	New Mexico
	O. B. Walls, Inc.

	 	Oregon
	Obie Billboard, LLC

	 	Oregon
	Ohio Logos, Inc.

	 	Ohio
	Oklahoma Logos, L.L.C.

	 	Oklahoma
	Outdoor Marketing Systems, Inc.

	 	Pennsylvania
	Outdoor Marketing Systems, LLC

	 	Pennsylvania
	Outdoor Promotions West, LLC

	 	Delaware
	Premere Outdoor, Inc.

	 	Illinois
	QMC Transit, Inc.

	 	Puerto Rico*
	South Carolina Logos, Inc.

	 	South Carolina
	Tennessee Logos, Inc.

	 	Tennessee
	Texas Logos, L.P.

	 	Texas
	The Lamar Company, L.L.C.

	 	Louisiana
	TLC Farms, L.L.C.

	 	Louisiana
	TLC Properties II, Inc.

	 	Texas
	TLC Properties, Inc.

	 	Louisiana
	TLC Properties, L.L.C.

	 	Louisiana
	Triumph Outdoor Holdings, LLC

	 	Delaware
	Triumph Outdoor Rhode Island, LLC

	 	Delaware
	Utah Logos, Inc.

	 	Utah
	Virginia Logos, LLC

	 	Virginia
	Washington Logos, L.L.C.

	 	Washington

 

			
	*	 	Not a guarantor.

-2-exv10w1

 

Exhibit 10.1

CENTEX CORPORATION

EXECUTIVE SEVERANCE POLICY

     1. Purpose. The Centex Corporation Executive Severance Policy (the “Policy”) is established
effective June 2, 2006, to provide certain Executives of the Company who are in a position to
contribute materially to the success of the Company with Severance Benefits if they are
Involuntarily Separated from employment with the Company. This Policy is intended to be part of
the Company’s overall performance management program. This Policy is also intended to relieve the
need for employee-specific agreements. The Policy was approved and adopted by the Committee and
modifies the various equity and deferred compensation plans adopted by Centex, as necessary, to
accomplish its purposes.

     2. Administration. This Policy is administered by the Chief Executive Officer. The Chief
Executive Officer must receive approval from the Committee in order to authorize Severance Benefits
outside of the terms of this Policy to the Participants covered by this Policy in the context of a
termination of employment.

     3. Participation. The Committee from time to time shall select the Executives who are
eligible for Severance Benefits (the “Participants”). The Participants who are eligible for
Severance Benefits are listed by job title on Exhibit A (based on the position to which
they are permanently assigned as of the date of termination). As a condition for Severance
Benefits, the Executive shall have been employed by the Company for a minimum of 12 months and
shall execute a Separation Agreement. In addition, in appropriate circumstances, with the approval
of the Senior HR Executive, the Company may, in its sole discretion, offer the benefits of this
Policy, or a reduced portion of the benefits, on an individual basis in connection with the
termination of employment of an Executive provided that the person, as a condition of such
benefits, executes a Separation Agreement (a “Special Termination”). An Executive who is entitled
to severance or similar benefits pursuant to a separate written agreement with the Company approved
by the Committee shall not be eligible for Severance Benefits, whether or not his or her specific
position is listed on Exhibit A, unless otherwise approved by the Committee.

     4. Required Pre-Approval for Termination. The Involuntary Separation of a Participant who
will receive benefits under this Policy must be approved by (a) the Senior HR Executive, (b) the
Chief Executive Officer (other than for him or herself), and (c) the Committee, with respect to
Participants in Level A or Level B or Participants that are “named executive officers” for purposes
of the Centex annual proxy statement.

     5. Definitions.

     a. “Base Salary” means the annualized amount of the fixed base compensation (excluding
bonuses and other benefits) paid to an employee regularly each pay period for performing
assigned job responsibilities in effect on the date of termination.

     b. “Board of Directors” means, unless the context otherwise requires, the board of
directors or similar governing authority of the Employer. In the case of a partnership,

 

 

action shall be taken by the Board of Directors of the managing partner or, if none, by
all the general partners. An Executive who is a member of the Board of Directors shall not
vote on an action by that Board of Directors if the Executive has an interest in the outcome
of the action (e.g., an Executive cannot vote on whether his or her own termination is for
Cause).

     c. “Cause” means termination of employment resulting from a good faith determination by
the Board of Directors or the Chief Executive Officer that:

     (i) The Executive (1) has willfully failed or refused to follow (A) material
policies established by the Company or (B) reasonable directives of the Board of
Directors or Chief Executive Officer, or (2) has willfully failed or refused to perform
the material duties or obligations of his or her office (other than any such failure
resulting from the person’s inability due to physical or mental illness); or

     (ii) There has been an act by an Executive involving wrongful misconduct which has
a demonstrably adverse impact or material damage to the Company or the Executive’s
business unit or division, or which constitutes theft, fraud or a misappropriation of
the assets of the Company; or

     (iii) The Executive has engaged in an unauthorized disclosure of confidential
information, directly or indirectly, to persons outside the Company that materially
adversely affects the Company or the Executive’s business unit or division; or

     (iv) The Executive while employed by the Company has performed services for another
company or person which competes with the Company without the prior written approval of
the Chief Executive Officer or the chief executive officer of the Employer.

     d. “Centex” means Centex Corporation, a Nevada corporation, or its successor.

     e. “Chief Executive Officer” means the Chief Executive Officer of Centex.

     f. “Claims Administrator” means the Administrative Committee of the Centex Corporation
Profit Sharing and Retirement Plan (or any successor to such plan). The Claims Administrator
may delegate to the Senior Vice President — Administration, or his or her designee,
responsibility for receiving and responding to claims.

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

     h. “Committee” means the Compensation and Management Development Committee of the Board
of Directors of Centex.

     i. “Company” means Centex and its direct and indirect wholly-owned subsidiaries, except
that, for purposes of Section 6, the Company shall mean the Participant’s Employer.

-2-

 

     j. “Disability” means that at the time the Participant’s employment is terminated, he or
she has been unable to perform the duties of his/her position for a period of six consecutive
months as a result of the Participant’s inability due to physical or mental illness; provided
that such condition constitutes a “disability” within the meaning of Section 409A of the Code.

     k. “Employer” means the entity that is the principal employer of a Participant as of the
termination of employment.

     l. “Executive” means an employee of the Company listed on Exhibit A. A person’s
status as an Executive shall not be determinative of the person’s status with the Company for
other purposes.

     m. “Good Reason” means, without the consent of the Participant:

     (i) A material reduction in Base Salary, target cash bonus potential or benefits
(other than reductions applicable to employees generally or by reason of the Company’s
or the Participant’s or his or her business unit’s performance or as necessary to
properly benchmark the Participant’s pay); or

     (ii) A change in job title accompanied by a material diminution in job
responsibilities; or

     (iii) A requirement that the Participant relocate, except for office relocations
that would not increase the Participant’s one-way commute by more than 25 miles.

     n. “Involuntary Separation” means any termination of employment, except termination of
employment for Cause, death, Disability, or retirement or resignation by the Participant
(other than a resignation for Good Reason); provided, however, that such Involuntary
Separation also constitutes a “Separation from Service” within the meaning of Section 409A of
the Code.

     o. “Nonsolicitation Period” means the period applicable to the Participant in the table
in Section 7.

     p. “Prior Year Incentive Compensation” means the incentive compensation to which a
Participant is entitled if the Participant is employed by the Company on the last day of a
fiscal year but is Involuntarily Separated on or after the last day of the fiscal year and
before the normal incentive compensation award date. The amount of the Prior Year Incentive
Compensation, which shall be paid in cash (and with no long-term awards), is equal to the cash
bonus to which the Executive would otherwise have been entitled under the applicable annual
incentive plan for the prior fiscal year (or, for the Executive Involuntarily Separated on the
last day of a fiscal year, that fiscal year) without reference to this Policy. Beginning in
fiscal 2008 long-term awards will be awarded for future (as opposed to past) performance.
Therefore, no long-term awards (or the dollar value thereof) that might have been granted in
the May following a fiscal year will be payable in the case of a termination on or after the
end of the fiscal year.

-3-

 

     q. “Profit Sharing Plan” means the Centex Corporation Profit Sharing and Retirement Plan.

     r. “Senior HR Executive” means the Senior Vice President — Human Resources of Centex (or
the senior executive of Centex with that responsibility).

     s. “Separation Agreement” means an effective agreement prepared by Centex, executed by
the Participant and returned to Centex within the time period requested by Centex. It shall
contain (a) typical provisions concerning termination of employment, (b) a statement that
Severance Benefits are conditioned upon the Company’s receipt of such agreement, (c) a release
by the Participant of the Company from any and all actions, suits, proceedings and demands
related to employment by the Company and the termination of such employment, the benefits
provided to the Participant in connection with the Involuntary Separation, and other facts or
events occurring on or before the date the Separation Agreement is signed, (d) confidentiality
and nonsolicitation covenants consistent with Section 17, (e) a waiver of jury trial
consistent with Section 21, and (f) provisions regarding recoupment by the Company of (1) up
to half of the Severance Pay and (2) previously awarded cash bonuses and long-term incentive
compensation consistent with the Company’s Policy on Recoupment in Restatement Situations. To
be effective, the Separation Agreement shall not have been revoked by the Participant within
the time permitted under applicable state and federal laws.

     t. “SERP” means the Supplemental Executive Retirement Plan sponsored by Centex.

     u. “Severance Benefits” means the benefits set forth in Sections 6, 7 and 8 of this
Policy.

     v. “Severance Pay” means the benefits payable under Section 6 of this Policy. The
payment of Severance Pay shall not affect a Participant’s rights to Prior Year Incentive
Compensation.

     w. “Successor Employer” means any business organization that acquires (through merger,
consolidation, reorganization, transfer of stock or assets, or otherwise) all or substantially
all of the business or assets of the Company, or a division, business unit or subsidiary of
the Company.

     x. “Target Cash Bonus” means the “target” cash bonus established under the annual
incentive plan for the Executive for the fiscal year in which the Involuntary Separation
occurs, but if no “target” amount has been established, then the “base plan” cash bonus amount
shall be used. If no amount has been set for the current year, then the “Target Cash Bonus”
shall be the amount of the cash bonus determined for the prior fiscal year (or, for the
Executive Involuntarily Separated on the last day of a fiscal year, that fiscal year). No
value will be attributed to projected long term awards.

     6. Severance Pay. A Participant Involuntarily Separated from the Company shall be eligible
for Severance Pay.

-4-

 

     a. Amount of Severance Pay. The Severance Pay to which a Participant is entitled is
equal to a payment comprised of a multiple of Base Salary and Target Cash Bonus, determined in
accordance with his or her level as an Executive of the Company as specified in Exhibit
A and by the table below.

Level A: The Severance Pay for an Executive in Level A is equal to 2.0 times the
sum of Base Salary and Target Cash Bonus.

Level B: The Severance Pay for an Executive in Level B is equal to 1.5 times the
sum of Base Salary and Target Cash Bonus.

Level C: The Severance Pay for an Executive in Level C is equal to 1.0 times the
sum of Base Salary and Target Cash Bonus.

However, in the case of a Special Termination, the Severance Pay shall be a lump sum amount
determined by the Company (and approved by the Senior HR Executive) that is less than (or
equal to) the amount specified in the table above.

     b. Method of Payment. Severance Pay shall be paid to a Participant in a lump sum, less
applicable tax and authorized withholdings, on the later of (i) the next regular payroll
payment date following the effective date of the Separation Agreement, or (ii) the next
regular payroll payment date following the Participant’s last day of employment.

     7. Equity Vesting.

     a. Accelerated Vesting. As an additional Severance Benefit, a portion of the
Participant’s unvested or restricted equity with Centex (stock options, restricted stock,
stock units and any performance shares or similar security) and deferred compensation (but
excluding Profit Sharing Plan or SERP balances) as of the effective date of the termination of
employment shall become vested and/or free from restrictions on transfer as of the date of
termination of employment (or as soon thereafter as reasonably practicable). The specific
awards (or portions thereof) as to which the vesting or the lapse of restrictions will be
accelerated are limited to those awards that would otherwise have vested during the period
commencing after the termination date and ending on the last date of the period specified in
the table below and corresponding to the applicable Level assigned to the Participant from
Exhibit A.

	 	 	 
	Applicable Level	 	Period
	Level A

	 	2.0 years
	Level B

	 	1.5 years
	Level C

	 	1.0 year

However, in the case of a Special Termination, the portion of the Executive’s unvested or
restricted equity with Centex that shall become vested and/or free from restrictions on
transfer shall be an amount determined by the Company (and approved by the Senior HR
Executive) that is less than (or equal to) the amount specified in the table above.

-5-

 

     b. Exercise Period and Payout. Acceleration of vesting in the case of stock units,
deferred compensation and similar awards shall not affect (i) the payout date for the award,
which shall continue to be subject to the terms of the applicable plan, award agreement and
payout election, as applicable, or (ii) exercise or sale restrictions imposed by applicable
law or the Company’s securities trading policy or blackout policy. Stock options will be
exercisable after termination of employment for the period specified in the applicable plan
under which the award was granted, but not longer than the original term of the award. The
exercise period of options is summarized on Exhibit B.

     c. Additional Vesting. If, under the terms of the Company’s equity and deferred
compensation plans, a greater amount of the Executive’s unvested equity awards would vest upon
termination of employment other than by reason of this Policy, then the provisions of such
plans (and not this Policy) shall control as to the vesting of such awards or portion thereof.

     d. Expiration. Any unvested or restricted awards that would have vested or become
unrestricted after the applicable period noted in the table above will automatically expire,
lapse or terminate as of the date of termination of employment.

     8. Outplacement Services. The Company shall provide to each terminated Participant standard
outplacement services at the expense of the Company from an established outplacement firm selected
by the Company; provided, however, that the cost of the benefits shall be commensurate with the
level of the Participant and, absent special circumstances, shall generally not exceed in total an
amount equal to $30,000 per Participant in Level A, $25,000 per Participant in Level B, and $20,000
per Participant in Level C. In order to receive outplacement services, the Participant must begin
utilizing the services within 30 days of his or her date of termination. The fees shall be paid
directly to the outplacement firm and no part of this amount shall be paid to the Participant. All
services must be provided by the end of the second calendar year following Involuntary Separation.

     9. Limitations on Severance Benefits.

     a. Limit on Severance Pay. In no event shall Severance Pay exceed 2.99 times the sum of
the Participant’s Base Salary and the amount or value of the total incentive compensation
(including equity awards) paid or awarded to the Participant for the prior fiscal year.

     b. Offer of New Employment. A Participant shall not be eligible for Severance Pay if a
Successor Employer offers him/her a job that (a) has a base salary that is no more than 10%
less than the Participant’s then current Base Salary, and has an incentive compensation
opportunity that is no more than 10% less than the Participant’s then current target incentive
compensation opportunity or plan, (b) does not involve an office relocation that would
increase the Participant’s one-way commute by more than 25 miles, and (c) commences within
fifteen days following his or her Involuntary Separation by the Company, whether or not the
Participant accepts the employment offer.

-6-

 

     c. Change of Control. If there is a change of control of Centex within the one year
period prior to an Involuntary Separation, then Severance Pay shall be reduced by the sum of
the amount of cash received by the Participant and Centex’s estimate of the value of equity
awarded or vested, if any, as a result of the feature of Centex’s equity and incentive plans
automatically requiring certain incentive payments or the vesting of performance awards upon a
change of control. No reduction shall be required to the extent that, after the change of
control and prior to such one-year period, any regular annual incentive compensation award is
reduced as a result of such payment or vesting upon a change of control.

     10. Benefits and Perquisites. Except as expressly provided in this Policy or as required by
law, a Participant is not eligible for benefits from the Company or its insurers or providers
(including health benefits or insurance) following an Involuntary Separation. The Participant’s
right to use a Company automobile and any automobile allowance or other perquisite that the
Participant was receiving in accordance with the arrangement in effect at the time of termination
of the Participant’s employment will cease at the time of termination of the Participant’s
employment. Any reimbursement for fringe benefits such as dues and expenses related to club
memberships and expenses for professional services will cease at the time of termination of the
Participant’s employment.

     11. Funding. The Policy shall at all times be entirely unfunded and no provision shall at any
time be made with respect to segregating assets of the Company for payment of any Severance
Benefits hereunder. Severance Benefits are not a vested right. No Participant or other person
shall have any interest in any particular assets of the Company by reason of the right to receive
Severance Benefits under the Policy and any such Participant or any other person shall have only
the rights of a general unsecured creditor of the Company with respect to any rights under the
Policy.

     12. Taxation; Delay in Payment. All Severance Benefits shall be subject to applicable
federal, state and local taxes, and deductions and withholding for the same, which taxes shall be
the responsibility of the Participant. Except in the case of termination of employment due to
death or Disability, if Section 409A of the Code or applicable treasury regulation or guidance
require that any proposed Severance Benefit be delayed by 6 months after the Participant’s
separation from service (and paid on the first day of the month after the 6-month period) or other
required period because the Participant is a “key employee” within the meaning of Section 409A,
then, notwithstanding any other provision of this Policy, the Company shall delay providing the
applicable pay or benefit to which the person is otherwise entitled under this Policy to the date
required under Section 409A.

     13. Non-Exclusivity of Rights. The terms of this Policy shall not prevent or limit the right
of a Participant to receive, prior to an Involuntary Separation, any base annual salary, retirement
or welfare benefit, perquisite, bonus or other payment provided by the Company to the Participant,
except for such rights as the Participant may have specifically waived in writing. Amounts that
are vested benefits or which the Participant is otherwise entitled to receive under any other
benefit, policy or program provided by the Company, including rights to accrued vacation, shall be
payable in accordance with the terms of such policy or program.

-7-

 

     14. Amendment; Termination; Interpretation. This Policy, including the Participants listed on
Exhibit A, may be amended or terminated by the Committee at any time. No such termination
or amendment shall affect the rights of any Participant whose employment has been terminated as a
result of an Involuntary Separation, or who is then receiving Severance Benefits at the time of
such amendment or termination. If a Participant dies after signing the Separation Agreement and
prior to receiving all of the Severance Pay to which he or she is entitled pursuant to the Policy,
payment shall be made to the beneficiary designated by the Participant to the Company or, in the
event of no designation of beneficiary or the death of the beneficiary, then to the estate of the
deceased Participant. The Chief Executive Officer reserves the right in his sole discretion to
interpret the Policy, prescribe, amend and rescind rules and regulations relating to it, determine
the terms and provisions of the severance payments and make all other determinations he deems
necessary or advisable for the administration of the Policy, subject to the appeals procedure in
Section 19. The determination of the Chief Executive Officer on all matters regarding the Policy
shall be conclusive and binding on all parties. Copies of this Policy and any amendments shall be
provided to each constituent entity of the Company and shall be deemed adopted by each such
constituent.

     15. Non-Assignability. Severance Benefits pursuant to the Policy shall not be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge prior
to actual receipt thereof by a Participant; and any attempt to so anticipate, alienate, sell,
transfer, assign, pledge, encumber or charge prior to such receipt shall be void; and the Company
shall not be liable in any manner for, or subject to, the debts, contracts, liabilities,
engagements or torts of any person entitled to any Severance Benefits.

     16. No Employment Rights. Nothing in the Policy shall be deemed to entitle a Participant to
continued employment with the Company, and the rights of the Company to terminate the employment of
a Participant shall continue as though the Policy were not in effect.

     17. Confidential Information and Nonsolicitation Covenants. As a condition of receiving
Severance Benefits, Participants (a) shall agree to hold, in a fiduciary capacity for the benefit
of the Company, all confidential information regarding the Company acquired by the Participant
while employed by the Company, and (b) shall agree, for the Nonsolicitation Period, not to,
directly or indirectly, without the consent of Centex, hire, call on, solicit or take away or
attempt to hire, call on, solicit, or take away any of the Company’s employees for the purpose of
hiring such employees and/or encouraging them to terminate their employment with the Company. This
confidential information may include, but is not limited to, information regarding the Company’s
business practices, trade secrets, policies, customer lists, contracts, financial and market data,
marketing reports, pricing, business opportunities and other information of a confidential nature.
In consideration of the Severance Benefits received by a Participant pursuant to this Policy,
Participant shall agree and covenant that he or she (i) shall not use to the Company’s detriment
and (ii) shall not divulge, publicly or privately, any specified or other such confidential
information regarding any aspect of the Company’s business acquired during or as a result of his or
her employment with the Company. Furthermore, to the extent that disclosure of any such
information is controlled by statute, regulation or other law, the Participant shall agree that he
or she is bound by such laws and that this Policy does not operate as a waiver of any such
non-disclosure requirement. In the event of any breach of the

-8-

 

confidentiality or nonsolicitation covenants, the Company shall be entitled to injunctive
relief, in addition to all other rights it may have at law or in equity.

     18. Governing Law and Venue. The terms of the Policy shall be governed by and construed and
enforced in accordance with the laws of the State of Texas (without regard to its rules on
conflicts of laws), except where superseded by federal law. Exclusive venue and jurisdiction for
purposes of any dispute, controversy, claim or cause of action arising out of or related to this
Policy is in any federal or state court of competent jurisdiction that regularly conducts
proceedings in Dallas County, Texas. Nothing in this Policy, however, precludes the Plan or a
Participant from removing a civil action from any state court to federal court.

     19. Claims Procedure. Generally, benefits will be paid under this Policy (also, referred to
as the “Plan”) without the necessity of filing a claim. If a Participant believes that he or she
has been denied benefits under the Plan, the Participant (or his or her authorized representative)
may file a written claim with the Claims Administrator, to the following address: 2728 N. Harwood,
Dallas, Texas 75201. If a claim for Plan benefits is denied in whole or in part, the Participant
will receive a written notice of the denial. This notice must be provided to the Participant
within a reasonable period of time, but not later than 90 days after receipt of the claim by the
Claims Administrator, unless the Claims Administrator determines that special circumstances require
an extension of time for processing the Participant’s claim. If the Claims Administrator
determines that an extension is necessary, notice of the extension will be furnished to the
Participant prior to the termination of the initial 90-day period. In no event will such extension
exceed a period of 90 days from the end of the initial 90-day period. The extension notice will
indicate the special circumstances requiring an extension of time and when the Participant can
expect the benefit determination.

     The Claims Administrator’s notice of denial of a Participant’s claim will contain the
following information: (a) the specific reason or reasons for the adverse determination; (b)
references to specific Plan provisions on which the determination is based; (c) a description of
any additional material or information necessary for the Participant to perfect the claim and an
explanation of why such material or information is necessary; and (d) appropriate information as to
the steps to be taken if the Participant wants to submit a claim for review, including a statement
of the right to bring a civil action under ERISA following an adverse benefit determination on
review.

     If a claim is denied in whole or in part by the Claims Administrator, the Participant (or his
or her representative) may appeal the adverse determination by filing a written request for a
review of the claim with the Chief Executive Officer. The request for review must be made within
60 days of the date the Participant receives the denial (or, if no written denial is received,
within 60 days of the date when the denial was due). The Participant should send the written
request for review to the Chief Executive Officer.

     A Participant may submit written comments, documents, records, and other information relating
to his or her claim for benefits. A Participant will be provided, upon request and free of charge,
reasonable access to, and copies of, all documents, records, and other information relevant to his
or her claim for benefits. The review will take into account all comments, documents, records, and
other information submitted by the Participant relating to his or her

-9-

 

claim, without regard to whether such information was submitted or considered in the initial
benefit determination.

     The Chief Executive Officer will provide the Participant with a written notice of its decision
on review within 60 days after the Chief Executive Officer’s receipt of the Participant’s written
claim for review, unless the Chief Executive Officer determines that special circumstances require
an extension of time for processing the claim. If the Chief Executive Officer determines that an
extension of time is required, written notice of the extension will be furnished to the Participant
prior to the end of the initial 60-day period. The extension notice will indicate the special
circumstances requiring an extension of the time and the date by which the Chief Executive Officer
expects to render its determination on review. The extension will not exceed a period of 60 days
from the end of the initial 60-day period.

     In the case of an adverse benefit determination on review, the notice will set forth: (a) the
specific reason or reasons for the adverse determination; (b) references to the specific Plan
provisions on which the determination is based; (c) a statement that the Participant is entitled to
receive, upon request and free of charge, reasonable access to, and copies of, all documents,
records, and other information relevant to the claim for benefits; and (d) the Participant’s right
to bring a civil action under Section 502(a) of ERISA.

     By participating in the Plan, Participants agree that (a) the Plan will not pay any benefit
for a claim filed more than one year from the date a Participant terminates employment, and (b) no
legal or equitable action may be filed against the Plan or any Plan fiduciary more than 90 days
after exhaustion of the Participant’s rights under the above claims procedure. A Participant must
exhaust all levels of the appeal procedure before the Participant can bring an action at law or
equity. The power and authority of the Claims Administrator and the Chief Executive Officer shall
be discretionary with respect to all matters arising before each of them under this claims
procedure.

     20. Your Rights Under ERISA. As a Participant in the Plan, you are entitled to certain rights
and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides
that all plan participants are entitled to: examine, without charge, at the Plan Administrator’s
office and at other specified locations (such as worksites), all documents governing the Plan,
including insurance contracts, if any; and obtain copies of documents governing the operation of
the Plan, including insurance contracts, if any, and updated summary plan description upon written
request to the Plan Administrator. The Plan Administrator may make a reasonable charge for the
copies.

     In addition to creating rights for plan participants, ERISA imposes duties upon the people who
are responsible for the operation of the Plan. The people who operate the Plan, called
“fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and other plan
participants and beneficiaries. No one, including your employer or any other person, may fire you
or otherwise discriminate against you in any way to prevent you from obtaining a benefit or
exercising your rights under ERISA.

     If your claim for a benefit is denied in whole or in part, you have a right to know why this
was done, to obtain copies of documents relating to the decision without charge and to appeal the

-10-

 

denial, all under certain time schedules. Under ERISA, there are steps you can take to enforce
these rights. For instance, if you request materials from the Plan and do not receive them within
30 days, you may file suit in a federal court. In such a case, the court may require the Plan
Administrator to provide the materials and pay you up to $110 a day until you receive them, unless
the materials were not sent because of reasons beyond the control of the Plan Administrator. If
you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in
a state or federal court. In addition, if you disagree with the Plan’s decision, or lack thereof,
concerning the qualified status of a domestic relations order, you may file suit in federal court
after exhausting all of the Plan’s claims and appeal procedures. If it should happen that Plan
fiduciaries misuse the Plan’s money, or if you are discriminated against for asserting your rights,
you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court.
The court will decide who should pay court costs and legal fees. If you are successful, the court
may order the person you have sued to pay these costs and fees. However, if you lose, the court
may order you to pay the costs and fees; for example, if it finds your claim is frivolous.

     If you have any questions about the Plan, you should call or write the Plan Administrator. If
you have any questions about this statement or about your rights under ERISA, or if you need
assistance in obtaining documents from the Plan Administrator, you should contact the nearest
office of the Employee Benefits Security Administration, U.S. Department of Labor listed in your
telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits
Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C.
20210. You may also obtain certain publications about your rights and responsibilities under ERISA
by calling the publications hotline of the Employee Benefits Security Administration.

     21. Waiver of Jury Trial. As a further condition of receiving benefits under this Policy,
Participants agree to waive irrevocably the right to trial by jury with respect to any dispute,
controversy, claim or cause of action arising out of or relating to this Policy.

     22. Plan Information. This document serves as the Plan’s official plan document and as the
summary plan description. Centex is the “Plan Administrator” for ERISA reporting and disclosure
purposes. Centex’s address is 2728 N. Harwood, Dallas, Texas 75201, and service of process may be
made on Centex at this address. Centex’s employer identification number is 75-0778259, and the
telephone number is 214-981-5000.

-11-

 

     IN WITNESS WHEREOF, Centex has caused this Policy to be executed in its name by its duly
authorized officer as of the date first set forth above.

CENTEX CORPORATION

	 	 	 	 	 
	By:  	/s/ Timothy R. Eller
 	 	 
	 	Name:  	Timothy R. Eller 	 	 
	 	Title:  	Chairman & Chief Executive Officer 	 	 
	 

Adopted June 2, 2006

Amended and restated October 10, 2007

-12-

 

EXHIBIT A

Participants (as of October 2007)

Level A

Centex Corporation

Chief Executive Officer

Level B

Centex Corporation

President and Chief Operating Officer

Chief Financial Officer

Senior Vice President, Human Resources

Senior Vice President, Strategy and Corporate Development

Senior Vice President, Chief Legal Officer

Centex Corporation officers that are Senior Vice Presidents that are
direct reports to the Chief Executive Officer

Centex Homes1

Chairman and Chief Executive Officer

President or Co-President or Region President

Chief Operating Officer or Co-COO

Executive Vice President, Operations Support

CMTIG

Chief Executive Officer

HomeTeam Services

Chief Executive Officer

Level C

Centex Homes1

Executive Vice President

Division President

Centex Corporation, Centex Homes,1 CMTIG, HomeTeam Services

Executives directly reporting to any of the persons listed in Level B
(but excluding paralegal and staff personnel)

 

			
	1	 	Includes officers of the managing partner of Centex
Homes (or such partner’s general partner) with similar titles.

 

 

EXHIBIT B

The exercise period for stock options varies by reference to the particular plan under which the
option was granted. The applicable plan is referenced in the award agreement under which the
option was granted, and is also noted in the Participant’s option listing on the stock plan
administrator’s website.

	 	 	 	 	 
	 	 	Exercise Period After	 
	Plan	 	Termination of Employment1	 
	1987 Stock Option Plan
	 	3
Months2
	1998 Stock Option Plan
	 	3 Months
	2001 Stock Option Plan
	 	4 Months
	2003 Equity Plan
	 	4 Months

 

			
	1	 	In no event may the exercise period extend past the
original expiration date of the option. Also, if the option award was subject
to the Vested Retirement provisions of the applicable plan and the Participant
meets the requirements for Vested Retirement under such plan, then the exercise
period for such grants would be 12 months.
	 
	2	 	If the Participant is an “executive officer” at the
time of termination within the meaning of Section 8 of such Plan, then the
exercise period is 7 months.

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