Document:

Employment Agreement 

		

		
			                This Agreement is made and entered into as of the 1st day of June, 2007, by and between Integrity Mutual Funds, Inc., a North Dakota corporation (hereinafter referred to as the "Company"), and Bradley Wells (hereinafter referred to as the "Employee"); 

		

		
			Witnesseth:

		

		
			                Whereas, Capital Financial Services, Inc., a Wisconsin corporation ("CFS"), is a wholly-owned subsidiary of the Company; and 

			                Whereas, the Company desires to retain the services of the Employee to direct and oversee the business activities of CFS; 

			Now, Therefore, in consideration of the premises and the mutual covenants herein contained, the Company and the Employee hereby agree as follows: 

			                1.             Employment.  The Company hereby employs the Employee and the Employee hereby accepts employment with the Company upon the terms and conditions hereinafter set forth. 

			                2.             Term.  Subject to the provisions for earlier termination hereinafter set forth, the term of employment hereunder shall commence on the date hereof and end on the day preceding the second anniversary of the date hereof (the "Employment Period"). 

			                3.             Compensation.  The Company agrees to provide the Employee with the following compensation for all services rendered by the Employee under this Agreement: 

			                  3.1.        Compensation.  Addendum A attached hereto lists eligible Registered Representatives recruited through May 31, 2007, the percentages to be applied to gross dealer concessions ("GDC's") applicable to each Registered Representative, and expiration dates applicable to each Registered Representative.  The Employee will be paid monthly an amount with respect to each Registered Representative listed on Addendum A equal to that percentage listed on Addendum A after the name of such Registered Representative of the monthly GDC of such Registered Representative, starting June 1, 2007, to and including the applicable expiration date for such Registered Representative listed on Addendum A. These monthly payments are to be made as compensation for services under this Agreement and in connection with the Employee's previous employment agreement with ND Holdings, Inc.  In no event shall the Employee be entitled to such monthly payments with respect to any Registered Representative beyond the applicable expiration date for such Registered Representative, or with respect to any person or entity not listed on Addendum A.  In the event that a Registered Representative ceases to be registered with CFS for any reason prior to the expiration date applicable to such Registered Representative, such monthly payments payable to the Employee with respect to such Registered Representative shall cease upon the earlier to occur of (i) the expiration date applicable to such Registered Representative or (ii) the ninetieth (90th) day after such Registered Representative ceases to be registered with CFS. 

			                  3.2.        Other Benefits.  To the extent that the Employee is otherwise eligible to participate therein, during the Employment Period the Employee shall be entitled to participate in and receive the benefits of any and all pension, retirement, vacation, profit sharing, health, disability, insurance and other benefit plans, programs and policies, if any, which may be maintained by the Company from time to time during the term hereof.

			                 4.             Duties.  The Employee shall serve as the Senior Vice President Retail Administration of the Company.  As such, the Employee's duties and responsibilities shall include, but shall not be limited to: 

			                    (i)        Reporting to the President of the Company; 

			                   (ii)        Supervising the administration and operations of CFS; 

			                  (iii)        Directing the organization charged with administering and monitoring regulated activities to interpret and clarify laws and ensure compliance with laws; 

			                  (iv)        Directing and coordinating activities of CFS to maximize returns on investments and increased productivity; 

			                   (v)        Developing, planning, organizing and administering policies and procedures for CFS to ensure administrative and operational objectives are met; 

			                  (vi)        Consulting with staff and others in government, business and private organizations to discuss issues, coordinate activities and resolve problems; 

			                 (vii)        Evaluating findings of investigations, surveys and studies to formulate policies and techniques and recommending improvements for personnel actions, programs or business services; 

			                (viii)        Preparing, reviewing and submitting reports concerning activities, expenses, budgets and other items affecting CFS; 

			                   (ix)        Conducting or directing investigations to resolve complaints and violations of laws;

			                    (x)        Developing, directing, and coordinating testing, hiring, training and evaluation of staff personnel; 

			                   (xi)        Participating in activities to promote business and expand services, and providing technical assistance in conducting conferences; 

			                  (xii)        Delivering speeches, writing articles and presenting information for the Company at meetings or conventions to promote services, exchange ideas and accomplish objectives; 

			                 (xiii)        Implementing corrective action plan to solve problems; 

			                (xiv)        Preparing budget and directing and monitoring expenditures of department funds; 

			                 (xv)        Directing, planning and implementing policies and objectives of the Company and its

			business in accordance with articles of incorporation, bylaws and board of directors; 

			                (xvi)        Analyzing operations to evaluate performance of CFS and staff and determining areas of cost reduction and program improvement; 

			               (xvii)        Directing and coordinating the financial and budget activities of CFS to fund operations, maximize investments and increase efficiency; 

			              (xviii)        Directing and coordinating activities of business or department concerned with production, pricing, sales, and/or distribution of products; 

			                 (xix)        Directing non-merchandising departments of business, such as advertising, purchasing, credit and accounting; 

			                  (xx)        Overseeing internal control procedures; 

			                 (xxi)        Screening, selecting, hiring, transferring and discharging employees. 

			                (xxii)        Promoting objectives of CFS and its business before associations, public, government agencies or community groups; 

			               (xxiii)        Negotiating or approving contracts with suppliers and distributors; 

			               (xxiv)        Directing and coordinating activities of business involved with buying and selling investment products and financial services; 

			                (xxv)        Assigning or delegating responsibilities to subordinates; 

			               (xxvi)        Reviewing financial statements and sales and activity reports to ensure that the objectives of CFS are achieved; 

			              (xxvii)        Conferring with Company board members, Company management and CFS staff members to establish policies and formulate plans; and 

			             (xxviii)        Directing activities of CFS to plan procedures, establish responsibilities and coordinate functions among departments and sites.

			The Employee shall also be responsible for the performance of such other duties and responsibilities as may be prescribed from time to time by the President or Board of Directors of the Company. 

			                5.             Extent of Service.  During the Employment Period, the Employee agrees to devote substantially all of his attention and time during normal business hours to the business and affairs of the Company and to perform such responsibilities competently and in good faith. 

			                6.             Working Facilities.  The Employee shall be furnished with office space, furnishings, secretarial assistance and such other facilities and services as thePresident of the Company shall decide are reasonably necessary for the performance of the Employee's duties. 

			                7.             Expenses.  The Company will reimburse the Employee for such reasonable business expenses which are incurred by the Employee in promoting the business of the Company upon the presentation by the Employee from time to time (and at least monthly) of an itemized account of such expenditures containing such detail as may be reasonably required bythe President of the Company. 

			                8.             Termination of Employment.  

			                  8.1.        Disability.  If the Board of Directors of the Company determines in good faith that the Disability of the Employee has occurred during the Employment Period (pursuant to the definition of Disability set forth below), the Board of Directors of the Company may give written notice to the Employee of its intention to terminate the Employee's employment.  In such event, the Employee's employment with the Company shall terminate effective on the 10th day after delivery of such notice to the Employee (the "Disability Effective Date"), provided that, within the 10 days after such delivery, the Employee shall not have returned to full-time performance of the Employee's duties.  For purposes of this Agreement, "Disability" shall mean the absence of the Employee from the Employee's duties with the Company on a full-time or part-time basis for 30 consecutive business days as a result of incapacity due to mental or physical illness. 

			                  8.2.        Cause.  The Company may terminate the Employee's employment during the Employment Period for Cause.  For purposes of this Agreement, "Cause" shall mean: 

			                    (i)        the failure of the Employee to substantially perform the Employee's duties with the Company (other than any such failure resulting from incapacity due to mental or physical illness) after a written demand for performance is delivered to the Employee by the President of the Company which specifically identifies the manner in which the President of the Company believes that the Employee has not performed the Employee's duties; provided, however, if such failure can be reasonably cured by the Employee so that the Company shall not have suffered any damage or detriment as a result of such failure, the Employee shall have the opportunity to cure such failure to the satisfaction of the President of the Company within ten (10) calendar days after receipt of such written demand; 

			                   (ii)        any conduct by the Employee which is or is reasonably likely to be materially injurious or detrimental to the Company, its shareholders, employees, suppliers or customers; 

			                  (iii)        any material violation of any rules or policies of the Company; provided, however, if such material violation can be reasonably cured by the Employee so that the Company shall not have suffered any damage or detriment as a result of such material violation, the Employee shall have the opportunity to cure such material violation to the satisfaction of the President of the Company within ten (10) calendar days after receipt of such written demand; or 

			                  (iv)        the commission of a felony by the Employee. 

			                  8.3.        Good Reason.  The Employee's employment may be terminated by the Employee for Good Reason.  For purposes of this Agreement, "Good Reason" shall mean: 

			                    (i)        any failure by the Company to comply with any of the provisions of this Agreement, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by the Employee; or 

			                   (ii)        any purported termination by the Board of Directors of the Company of the Employee's employment otherwise than as expressly permitted by this Agreement. 

			                  8.4.        Notice of Termination.  Any termination by the Company for Cause, or by the Employee for Good Reason, shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 11.7 hereof.  For purposes of this Agreement, a "Notice of Termination" means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Employee's employment under the provision so indicated and (iii) if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the termination date (which date shall be not more than 30 days after the giving of such notice).  The failure by the Employee or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the Employee or the Company, respectively, hereunder or preclude the Employee or the Company, respectively, from asserting such fact or circumstance in enforcing the Employee's or the Company's rights hereunder. 

			                  8.5.        Date of Termination.  As used in this Agreement, "Date of Termination" means (i) if the Employee's employment is terminated by the Company for Cause, or by the Employee for Good Reason, the date of delivery of the Notice of Termination or any later date specified therein, as the case may be, (ii) if the Employee's employment is terminated by the Company other than for Cause or Disability, the Date of Termination shall be the date on which the Company notifies the Employee of such termination and (iii) if the Employee's employment is terminated by reason of death or Disability, the Date of Termination shall be the date of death of the Employee or the Disability Effective Date, as the case may be. 

			                9.             Obligations of the Company upon Termination. 

			                  9.1.        Good Reason; Other Than for Cause.  If,during the Employment Period, the Company shall terminate the Employee's employment other than for Cause or Disability or the Employee shall terminate his employment for Good Reason, such termination shall constitute a breach of contract by the Company and the Company shall, subject to the provisions of Section 9.2 hereof, pay the Employee, as liquidated damages, and not as a penalty, the monthly payments provided in Section 3.1 hereof. 

			                  9.2.        Mitigation of Damages.  If the Employee's employment is terminated pursuant to Section 9.1 hereof, the Employee shall have the duty to use his reasonable efforts to mitigate his damages by seeking employment comparable to his employment with the Company with respect to position, compensation and geographic location. 

			                  9.3.        Death.  If the Employee's employment is terminated by reason of the Employee's death during the Employment Period, this Agreement shall terminate without further obligations by the Company to the Employee's legal representatives under this Agreement other than for payment of the compensation set forth under Section 3 hereof accrued up to the date of the Employee's death. 

			                  9.4.        Disability.  If the Employee's employment is terminated by reason of the Employee's Disability during the Employment Period, this Agreement shall terminate without further obligations by the Company to the Employee under this Agreement other than for payment of the compensation set forth in Section 3 hereof accrued up to the Date of Termination. 

			                  9.5.        Cause; Other than for Good Reason.  If the Employee's employment shall be terminated for Cause during the Employment Period, this Agreement shall terminate without further obligations of the Company to the Employee under this Agreement other than the payment of the compensation set forth in Section 3 hereof accrued up to the Date of Termination.  If the Employee voluntarily terminates his employment during the Employment Period, excluding a termination for Good Reason, this Agreement shall terminate without further obligations of the Company to the Employee under this Agreement other than the payment of the compensation set forth in Section 3 hereof accrued up to the Date of Termination. 

			                10.           Restrictive Covenants. 

			                10.1.        The Employee agrees that all customer, supplier and distributor lists, financial data, computer software programs, source codes, plans, contracts, agreements, literature, manuals, catalogs, brochures, books, records, maps, correspondence and other materials furnished to the Employee by the Company, or any of its Affiliates, or secured through the efforts of the Employee, relating to the business conducted by the Company or any of its Affiliates, are and shall remain the property of the Company, and/or its Affiliates, and the Employee agrees to deliver all such materials, including all copies thereof, to the Company upon the termination of the Employee's employment hereunder, or at any other time at the Company's request. 

			                10.2.        The Employee agrees that the Employee will not at any time during or after the Employee's employment with the Company reveal, divulge or make known to any person, firm or corporation any trade secrets or confidential business information relating to the business of the Company or any of its Affiliates, and will retain all such knowledge and information in trust in a fiduciary capacity for the sole benefit of the Company, its Affiliates and their respective successors and assigns. 

			                10.3.        In the event that any court shall finally hold that any provision of this Section 10 constitutes an unreasonable restriction against the Employee, the Employee agrees that the provisions hereof shall not be rendered void but shall apply as to such time, territory and other extent as such court may judicially determine or indicate constitutes a reasonable restriction under the circumstances involved.  The Company and the Employee each request that any such court which holds that any of the provisions of this Section 10 constitutes an unreasonable restriction against the Employee make a determination of what would constitute a reasonable restriction under the circumstances involved and to reform this Agreement accordingly. 

			                10.4.        Except as expressly provided in any other written agreement between the Company and the Employee, the provisions of this Section 10 shall survive the termination of the term of this Agreement and the termination of the Employee's employment with the Company and shall run to and inure to the benefit of the Company, its Affiliates and their respective successors and assigns. 

			                11.           General. 

			                11.1.        This Agreement supersedes all prior agreements and understandings between the Employee and the Company or any of its Affiliates or their respective directors, officers, shareholders, employees, attorneys, agents or representatives, and constitutes the entire Agreement between the parties, respecting the subject matter hereof and there are no representations, warranties or commitments other than those expressed herein. 

			                11.2.        The Employee represents and warrants to the Company that the Employee is not a party to or bound by, and the employment of the Employee by the Company or the Employee's disclosure of any information to the Company or its utilization of such information will not violate or breach any, employment, retainer, consulting, license, non-competition, non-disclosure, trade secrets or other agreement or understanding between the Employee and any other person, partnership, corporation, joint venture, association or other entity. 

			                11.3.        No modification or amendment of, or waiver under, this Agreement shall be valid unless in writing and signed by the Employee and the President of the Company and approved by the Compensation Committee and Board of Directors of the Company. 

			                11.4.        The Employee agrees to indemnify the Company and its Affiliates against, and to hold the Company and its Affiliates harmless from, any and all claims, lawsuits, losses, damages, expenses, costs and liabilities, including, without limitation, court costs and attorneys' fees, which the Company or any of its Affiliates may sustain as a result of, or in connection with, either directly or indirectly, the Employee's breach or violation of any of the provisions of this Agreement.  The Company agrees to indemnify the Employee against, and to hold the Employee harmless from, any and all claims, lawsuits, losses, damages, expenses, costs and liabilities, including, without limitation, court costs and attorneys' fees, which the Employee may sustain as a result of, or in connection with, either directly or indirectly, the Company's breach or violation of any of the provisions of this Agreement. 

			                11.5.        The Employee hereby agrees that in the event of the violation by the Employee of any of the provisions of this Agreement, the Company will be entitled, if it so elects, to institute and prosecute proceedings at law or in equity to obtain damages with respect to such violation or to enforce the specific performance of this Agreement by the Employee or to enjoin the Employee from engaging in any activity in violation hereof. 

			                11.6.        The waiver by the Company or the Employee of a breach of any provision of this Agreement by the other shall not operate or be construed as a waiver of any subsequent breach. 

			                11.7.        Each notice, request, demand, approval or other communication which may be or is required to be given under this Agreement shall be in writing and shall be deemed to have been properly given when delivered personally at the address set forth below for the intended party during normal business hours at such address, or when sent by recognized overnight courier or by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

			                                                If to the Company: 

			                                                Integrity Mutual Funds, Inc.

				                                                1 Main Street North

				                                                Minot, North Dakota  58703

				                                                Attention:              President

				 

			                                                If to the Employee: 

			                                                Bradley Wells

				                                                2705 Bel Air Drive

				                                                Minot, ND  58703

			

			Notices shall be given to such other addressee or address, or both, or by way of such other facsimile transmission number, as a particular party may from time to time designate by written notice to the other party hereto.  Each notice, request, demand, approval or other communication which is sent in accordance with this Section shall be deemed delivered, given and received for all purposes of this Agreement when delivered personally, as of three business days after the date of deposit thereof for mailing in a duly constituted United States post office or branch thereof, one business day after deposit with a recognized overnight courier service.  Notice given to a party hereto by any other method shall only be deemed to be delivered, given and received when actually received in writing by such party. 

			                11.8.        This Agreement shall inure to the benefit of and be binding upon the Company and the Employee and their respective heirs, personal representatives, successors and assigns. 

			                11.9.        This Agreement shall be governed by and construed in accordance with the laws of the State of North Dakota. 

			              11.10.        This Agreement may be executed in two or more counterparts, all of which taken together shall constitute one and the same agreement. 

			In Witness Whereof, the parties hereto have executed this Employment Agreement as of the day and year first above written. 

			Integrity Mutual Funds, Inc.                               Employee:   

			By______________________________                     __________________________________

			    Its_____________________________                                    Bradley WellsEX-4.2

 

Exhibit 4.2

NANOSPHERE, INC.

AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

     THIS AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made effective as of
April 12, 2006 by and among Nanosphere, Inc., a Delaware corporation (the “Company”), the Persons
listed on Schedule B attached hereto (together with their permitted successors, assigns and
transferees, the “Series B Stockholders”), the Persons listed on Schedule C attached hereto
(together with their permitted successors, assigns and transferees,
the “Series C Stockholders”), the Persons listed on Schedule C-2 attached hereto (together with
their permitted successors, assigns and transferees, the “Series C-2 Stockholders”), the Persons
listed on Schedule D attached hereto (together with their permitted successors, assigns and
transferees, the “Series D Stockholders” and together with the Series B Stockholders, the Series C
Stockholders, the Series C-2 Stockholders, the “Investor Stockholders”) and the Persons listed on
Schedule F attached hereto (together with their permitted successors, assigns and
transferees, the “Founder Stockholders” and, together with the Investor Stockholders, the
“Stockholders”).

RECITALS

	A.	 	The Company and certain Stockholders are parties to that certain Amended and Restated
Registration Rights Agreement, dated as of June 17, 2005 (the “Prior Agreement”).

	B.	 	Simultaneously with the execution of this Agreement, the Company is entering into a Series D
Convertible Preferred Stock and Warrant Purchase Agreement with the Series D Stockholders (the
“Series D Purchase Agreement”), pursuant to which the Company is issuing Series D Preferred
Stock (as defined below) to such Stockholders.

	C.	 	The Series D Stockholders have required, as a condition to the purchase of the Series D
Preferred Stock pursuant to the Series D Purchase Agreement, that they be granted registration
rights with respect to the shares of Common Stock issuable upon conversion of their shares of
Series D Preferred Stock that are similar to those granted under the Prior Agreement to
certain of the Investors.

	D.	 	For purposes of Section 11(d) of the Prior Agreement, the Stockholders signatory hereto
collectively hold in excess of the required percentages of Company securities, as further
specified in such Section 11(d), necessary to amend or modify, together with the Company, the
Prior Agreement. Accordingly, all parties to the Prior Agreement (or any predecessor
agreement thereto) shall be deemed parties to this Agreement as if they were original
signatories hereto.

	E.	 	Certain capitalized terms used herein have the meanings given to them in Section 8 hereof.

 

 

     The parties hereto agree as follows:

     1. Demand Registrations.

          (a) Requests for Registration. Subject to the terms set forth herein, at any time
after the earlier to occur of (A) one hundred twenty (120) days after the Company’s completion of
an initial public offering (an “IPO”) of its equity securities registered under the Securities Act
of 1933, as amended (the “Securities Act”), and (B) April 1, 2010: (i) Investor Stockholders
holding at least twenty percent (20%) of the then outstanding Registrable Securities, having an
expected aggregate price to the market of ten million dollars ($10,000,000), may request
registration under the Securities Act of all or part of the Registrable Securities held by such
Investor Stockholders on Form S-1 or any similar long-form registration (each, a “Long-Form
Registration”) or, if available, on Form S-3 or any similar short-form registration (each, a
“Short-Form Registration”), on the terms and conditions set forth in this Section 1(a) and in
Section 1(b); and (ii) Investor Stockholders holding at least ten percent (10%) of the then
outstanding Registrable Securities, having an expected aggregate price to the market of not less
than one million dollars ($1,000,000), shall, if Short-From Registrations are then available to the
Company under applicable law, be entitled to request Short-Form Registrations, on the terms and
conditions set forth in this Section 1(a) and in Section 1(c). All registrations requested
pursuant to this Section 1(a) are referred to herein as “Demand Registrations,” and the Investor
Stockholders requesting a Demand Registration pursuant to the terms hereof are referred to herein
as the “Initiating Holders.” Each request for a Demand Registration shall specify the approximate
number of Registrable Securities requested to be registered and if known, the anticipated per-share
price range for such offering. Within ten (10) days after receipt of any such request, the Company
shall give written notice of such requested registration to all other Stockholders holding
Registrable Securities and, subject to Sections 1(b), 1(c) and 1(d) below, shall include in such
registration all Registrable Securities held by such Stockholders with respect to which the Company
has received written requests for inclusion therein within fifteen (15) days after the receipt of
the Company’s notice.

          (b) Long-Form Registrations. The Investor Stockholders shall, in total, be entitled
to request three separate (3) Long-Form Registrations. A registration shall not count as one of
the permitted Long-Form Registrations until it has become effective, and no registration shall
count as one of the permitted Long-Form Registrations unless the holders of Registrable Securities
are able to register and sell at least ninety percent (90%) of the aggregate Registrable Securities
requested to be included in such registration; provided, however, any Registrable
Securities that could otherwise have been sold pursuant to an effective Long-Form Registration but
are either (i) not sold prior to the expiration of the period during which the Company is obligated
to keep such Long-Form Registration effective or (ii) voluntarily withdrawn from such registration,
shall be deemed, for the purpose of the definition of Registrable Securities under Section 8(d), as
having been sold under an effective registration. The Company shall pay all Registration Expenses
(as hereinafter defined) in connection with any registration initiated as one of the Long-Form
Registrations whether or not it has become effective and whether or not such registration has
counted as one of the permitted Long-Form Registrations. The Company shall file a registration
statement in connection with any Long-Form Registration with the U.S. Securities and Exchange
Commission (the “SEC”) within forty-five (45) days following its receipt of the Initiating Holder’s
valid notice requesting such Demand

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Registration. The Company agrees to use all commercially reasonable efforts to (i)
cause such registration statement to be declared effective by the SEC as soon as possible after its
filing with the SEC; and (ii) keep such registration statement continuously effective with the SEC
for the lesser of (A) one hundred eighty (180) days (which 180-day period shall be extended by the
number of days that the sale of Registrable Securities is suspended as described in Section 4(b))
or (B) until all Registrable Securities covered by such registration statement have been sold.

          (c) Short-Form Registrations. In addition to the Long Form Registrations provided
pursuant to Section 1(b), the Initiating Holders shall be entitled to request an unlimited number
of Short Form Registrations. After the Company has become subject to the reporting requirements of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company shall use all
commercially reasonable efforts to make Short-Form Registrations available for the sale of
Registrable Securities. Notwithstanding the foregoing, if Short-Form Registrations are not
available to the Company due to the Company’s actions or omissions, then upon request of the
Initiating Holders the Company will use all commercially reasonable efforts to effect a Demand
Registration under this Section 1(c) by means of a Long-Form Registration and such Long-Form
Registration shall not count as one of the permitted Long-Form Registrations pursuant to Section
1(b). In no event shall the Company be obligated to effect more than two (2) Short-Form
Registrations during any twelve (12) month period. The Company shall pay all Registration Expenses
in connection with any registration initiated as a Short-Form Registration whether or not it has
become effective. The Company shall file a registration statement in connection with any
Short-Form Registration with the SEC within twenty (20) days following its receipt of the
Initiating Holder’s notice requesting such Demand Registration. The Company agrees to use all
commercially reasonable efforts to cause such registration statement to be declared effective by
the SEC as soon as possible after its filing with the SEC; and (iii) keep such registration
statement continuously effective with the SEC for the lesser of: (A) one-hundred-eighty (180) days
(which 180-day period shall be extended by the number of days that the sale of Registrable
Securities is suspended as described in Section 4(b)); or (B) until all Registrable Securities
covered by such registration statement have been sold.

          (d) Priority on Demand Registrations. If a Demand Registration is an underwritten
offering and the managing underwriters advise the Company in writing that, in their opinion, the
number of Registrable Securities and other securities requested to be included in such offering
exceeds the number of securities that can be sold in an orderly manner in such offering within a
price range acceptable to the holders of a majority of the Registrable Securities requested to be
included in such registration, the Company shall include in such registration, (i) first, prior to
the inclusion of any securities which are not Registrable Securities, the number of Registrable
Securities held by the Investor Stockholders requested to be included in such registration which,
in the opinion of such underwriters, can be sold in an orderly manner within the price range of
such offering, pro rata among the respective holders thereof on the basis of the amount of
Registrable Securities owned by each such holder, (ii) second, the number of Registrable Securities
held by other Stockholders requested to be included in such registration which, in the opinion of
such underwriters, can be sold in an orderly manner within the price range of such offering, pro
rata among the respective holders thereof on the basis of the amount of Registrable Securities
owned by each such holder, and (iii) third, the number of other securities requested to be included
which, in the opinion of such underwriters, can be sold in an
orderly manner within the price range of such offering, pro rata among the Company and the

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respective holders thereof on the basis of the amount of securities requested to be included
therein by each such holder.

          (e) Additional Restrictions on Demand Registrations. The Company may postpone for up
to ninety (90) days the filing or the effectiveness of a registration statement for a Demand
Registration if the Company’s board of directors determines in its reasonable good faith judgment
that such Demand Registration would reasonably be expected to have a material adverse effect on a
proposal or plan by the Company or any of its subsidiaries that is material to Company and its
subsidiaries taken as a whole; provided that in such event, the holders of a majority of
the Registrable Securities requested to be included in such a Demand Registration shall be entitled
to withdraw such request and, if such request is withdrawn, such Demand Registration shall not
count as one of the permitted Demand Registrations hereunder and the Company shall pay all
Registration Expenses in connection with such registration. The Company may delay a Demand
Registration hereunder only once in any twelve (12) month period. The Company will not be
obligated to effect any Demand Registration within the one hundred twenty (120) day period
immediately following the effective date of the Company’s IPO.

          (f) Selection of Underwriters. The Company shall have the right to select the
investment banker(s) and manager(s) to administer any Demand Registration, subject to the approval
of the holders of Registrable Securities requested to be included in such registration, which
approval shall not be unreasonably withheld or delayed.

          (g) Other Registration Rights. The Company may grant rights to other Persons to
participate in Piggyback Registrations (defined below) so long as such rights are subordinate to
the rights of the holders of Registrable Securities with respect to such Piggyback Registrations as
provided in Sections 2(c) and 2(d) hereof. The Company shall not, without the prior written
consent of the holders of a Majority of the Registrable Securities grant rights to other Persons to
make Demand Registrations.

     2. Piggyback Registrations.

          (a) Right to Piggyback. Whenever the Company proposes to register any of its
securities under the Securities Act, for its own account or for the account of any holder of its
securities other than Registrable Securities, (other than pursuant to a Demand Registration or a
registration on Form S-4 or S-8 or any successor or similar forms) and the registration form to be
used may be used for the registration of Registrable Securities (a “Piggyback Registration”), the
Company shall give prompt written notice to all Stockholders holding Registrable Securities of its
intention to effect such a registration and shall include in such registration all Registrable
Securities held by such Stockholders with respect to which the Company has received written
requests for inclusion therein within fifteen (15) days after receipt of the Company’s notice.

          (b) Piggyback Expenses. The Company shall pay all Registration Expenses in all
Piggyback Registrations (whether such Registration Expenses are incurred by the Company or the
holders of Registrable Securities).

          (c) Priority on Primary Registration. If a Piggyback Registration is an underwritten
registration of securities for the account of the Company, and the managing

-4-

 

underwriters advise the Company in writing that, in their opinion, the number of securities requested to be included in
such registration exceeds the number which can be sold in an orderly manner in such offering within
a price range acceptable to the Company, the Company shall include in such registration (i) first,
the securities the Company proposes to sell, (ii) second, the Registrable Securities requested to
be included in such registration by the Investor Stockholders, pro rata among the respective
holders thereof on the basis of the amount of Registrable Securities owned by each such holder,
(iii) third, the Registrable Securities requested to be included in such registration by the other
Stockholders, pro rata among the respective holders thereof on the basis of the amount of
Registrable Securities owned by each such holder, and (iv) fourth, any other securities eligible to
be included in such registration, pro rata among the holders of such securities on the basis of the
number of shares owned by each such holder.

          (d) Priority on Secondary Registration. If a Piggyback Registration is an
underwritten registration of securities for the account of holders of the Company’s securities, and
the managing underwriters advise the Company in writing that, in their opinion, the number of
securities requested to be included in such registration exceeds the number which can be sold in an
orderly manner in such offering within the price range of the offering, the Company shall include
in such registration (i) first, the securities the Company proposes to sell, (ii) second, the
Registrable Securities requested to be included in such registration by the Investor Stockholders,
pro rata among the respective holders thereof on the basis of the amount of Registrable Securities
owned by each such holder, (iii) third, the Registrable Securities requested to be included in such
registration by the other Stockholders, pro rata among the respective holders thereof on the basis
of the amount of Registrable Securities owned by each such holder, and (iv) fourth, any other
securities eligible to be included in such registration, pro rata among the holders of such
securities on the basis of the number of shares owned by each such holder.

          (e) Selection of Underwriters. If any Piggyback Registration is an underwritten
offering, the selection of investment banker(s) and manager(s) for the offering shall be made by
the Company.

     3. Restrictions on Certain Distributions.

          (a) The Company (i) shall not effect any public sale or distribution of its equity securities,
or any securities convertible into or exchangeable or exercisable for such securities, during the
seven (7) days prior to, and during the one-hundred-eighty (180) day period in the case of an IPO,
or the ninety (90) day period in the case of any other underwritten offering beginning on, the
effective date of any underwritten Demand Registration or any underwritten Piggyback Registration
(except as part of such underwritten registration or pursuant to registrations on Form S-8 or any
successor form), unless the underwriters managing the registered public offering otherwise agree,
and (ii) shall use all commercially reasonable efforts to cause each director or officer of the
Company to agree not to effect any public sale or distribution (including sales pursuant to Rule
144 under the Securities Act) of any such securities during such period (except as part of such
underwritten registration, if otherwise permitted), unless the underwriters managing the registered
public offering otherwise agree.

-5-

 

     4. Additional Registration Procedures.

          (a) In connection with any Demand Registration, the Company shall use all reasonable
commercially reasonable efforts to effect the sale of such Registrable Securities in accordance
with the intended method of disposition thereof. The registration statement filed in connection
therewith shall (i) be available for the sale of the Registrable Securities in accordance with the
intended method or methods of distribution by the selling holders thereof and (ii) 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 included therein or if permitted by the rules and
forms of the SEC, incorporate such financial statements therein by reference. Before filing a
registration statement or prospectus or any amendments or supplements thereto relating to a Demand
Registration, the Company shall furnish to the counsel selected by the holders of a majority of the
Registrable Securities requested to be included in such Demand Registration copies of all such
documents proposed to be filed, which documents shall be subject to the review and comment of such
counsel.

     Additionally, the Company shall, as expeditiously as possible:

          (b) notify each holder of Registrable Securities of the effectiveness of each registration
statement filed hereunder and subject to the last three sentences of this Section 4(b) hereof, (i)
prepare and file with the SEC such amendments to any registration statement as may be necessary to
keep any such registration statement effective for the period specified in Section 1(b) or 1(c)
hereof; (ii) cause the prospectus to such registration statement to be amended or supplemented as
required and to be filed as required by Rule 424 or any similar rule that may be adopted under the
Securities Act; (iii) respond as promptly as practicable to any comments received from the SEC with
respect to any Long-Form or Short-Form Registration statement or any amendment thereto; and (iv)
comply with the provisions of the Securities Act with respect to the disposition of all securities
covered by such registration statement during the applicable period in accordance with the intended
method or methods of distribution by the selling holders thereof. Notwithstanding anything to the
contrary contained herein, the Company shall not be required to take any of the actions described
in clauses (i), (ii) or (iii) in this Section 4(b), with respect to each holder of Registrable
Securities (x) to the extent that the Company is in possession of material non-public information
that it deems advisable not to disclose or is engaged in active negotiations or planning for a
merger or acquisition or disposition transaction and it delivers written notice to each such holder
of Registrable Securities to the effect that such holder may not make offers or sales under the
registration for a period not to exceed sixty (60) days from the date of such notice;
provided, however, that the Company may deliver only two (2) such notices within
any twelve-month period, or (y) unless and until the Company has received a written notice (a
“Registration Notice”) from such holder that such holder intends to make offers or sales under the
registration as specified in such Registration Notice; provided, however, that the
Company shall have ten (10) business days to prepare and file any such amendment or supplement
after receipt of the Registration Notice or such longer period as is reasonably necessary if such
preparation and filing are not commercially practicable within ten (10) business days. Once a
holder has delivered a Registration Notice to the Company, such holder shall promptly provide to
the Company such information as the Company reasonably requests in order to identify such holder
and the method of distribution in a post-effective amendment to such registration statement or a
supplement to its prospectus. Such holder also
shall notify the Company in writing upon completion of such offer or sale or at such time as
such holder no longer intends to make offers or sales under such registration statement;

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

          (d) use all commercially reasonable efforts to register or qualify such Registrable
Securities, and to keep such registration or qualification effective during the period such
registration statement is to be kept effective, under such other securities or blue sky laws or
such jurisdictions as any seller reasonably requests and do any and all other acts and things which
may be reasonably necessary or advisable to enable such seller to consummate the disposition in
such jurisdictions of the Registrable Securities owned by such seller (provided that the Company
shall not be required to (i) qualify generally to do business in any jurisdiction where it would
not otherwise be required to qualify but for this Section 4(d), (ii) subject itself to taxation in
any such jurisdiction or (iii) consent to general service of process in any such jurisdiction);

          (e) immediately notify each seller of such Registrable Securities (i) when any amendment or
supplement to the prospectus relating to a Demand Registration has been filed with the SEC, (ii) of
the issuance by the SEC or any state securities authority of any stop order suspending the
effectiveness of the registration statement or any part thereof or the initiation of any
proceedings for that purpose, (iii) if the Company receives any notification with respect to the
suspension of the qualification of the Registrable Securities for offer or sale in any jurisdiction
or the initiation of any proceeding for such purpose, and (iv) of the happening of any event during
the period the registration statement is effective as a result of which (A) such registration
statement contains any untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein not misleading or (B)
such prospectus as then amended or supplemented contains any untrue statement of a material fact or
omits to state any material fact necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading; and, the Company shall prepare a
supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of
such Registrable Securities, such registration statement or prospectus shall not contain an untrue
statement of a material fact or omit to state any fact necessary to make the statements therein not
misleading;

          (f) cooperate with the selling holders of Registrable Securities to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to be sold, and enable
certificates for such Registrable Securities to be issued for such numbers of shares and registered
in such names as the selling holders may reasonably request at least two (2) business days prior to
any sale of Registrable Securities;

          (g) use all commercially reasonable efforts to cause all such Registrable Securities to be
listed on each securities exchange on which similar securities issued
by the Company are then listed and, if not so listed, use all commercially reasonable efforts
to be listed on the National Association of Securities Dealers (“NASD”) automated quotation system,
or any successor system or exchange (“NASDAQ”), and if listed on the NASD automated quotation

-7-

 

system, or any such successor system or exchange, use all commercially reasonable efforts to secure
designation of all such Registrable Securities covered by such registration statement as a NASDAQ
“national market system security” within the meaning of Rule 11Aa2-1 of the SEC (or equivalent
designation under any successor rule or provision) or, failing that, to use all commercially
reasonable efforts to secure NASDAQ authorization for such Registrable Securities and, without
limiting the generality of the foregoing, to use all commercially reasonable efforts to arrange for
at least two (2) market makers to register as such with respect to such Registrable Securities with
the NASD;

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

          (i) enter into such customary agreements (including underwriting agreements in customary form)
and take all such other actions as the holders of a majority of the Registered Securities requested
to be included in the registration statement or the underwriters, if any, reasonably request in
order to expedite or facilitate the disposition of such Registrable Securities (including effecting
a stock split or a combination of shares);

          (j) subject to the receipt of a confidentiality agreement, make available for inspection by
any seller of Registrable Securities, any underwriter participating in any disposition pursuant to
such registration statement and any attorney, accountant or other agent retained by any such seller
or underwriter, all financial and other records, pertinent corporate documents and properties of
the Company, and cause the Company’s officers, directors, employees and independent accountants to
supply all information reasonably requested by any such seller, underwriter attorney, accountant or
agent in connection with such registration statement;

          (k) otherwise use all commercially reasonable efforts to comply with the Securities Acts and
the Exchange Act and all applicable rules and regulations of the SEC, and make available to its
security holders, as soon as reasonably practicable, an earnings statement covering the period of
at least twelve (12) months beginning with the first day of the Company’s first full calendar
quarter after the effective date of the registration statement, which earnings statement shall
satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 promulgated thereunder;

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

          (m) in the event of the issuance of any stop order suspending the effectiveness of a
registration statement, or of any order suspending or preventing the use of any
related prospectus or suspending the qualification of any Common Stock included in such
registration statement for sale in any jurisdiction, the Company shall use all commercially
reasonable efforts promptly to obtain the withdrawal of such order; and

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          (n) use all commercially reasonable efforts to obtain all legal opinions, auditors consents
and comfort letters and experts cooperation as may be required, including furnishing to each
underwriter of Registrable Securities on the date the registration statement with respect to such
Registrable Securities becomes effective, (i) an opinion, dated as of the such date, of counsel for
the Company and (ii) a “cold comfort” letter, dated as of such date, signed by the independent
public accountants of the Company, in each case in form and substance as is customarily given to
underwriters in an underwritten public offering.

     5. Registration Expenses.

          (a) All expenses incident to the Company’s performance of or compliance with this Agreement,
including without limitation all registration and filing fees, expenses and fees of compliance with
securities or blue sky laws, printing expenses, messenger and delivery expenses, fees and
disbursements of custodians, and fees and disbursements of counsel for the Company and all
independent certified public accounts, underwriters (excluding discounts and commissions) and other
Persons retained by the Company (all such expenses being herein called “Registration Expenses”),
shall be borne by the Company, and the Company shall, in any event, pay its internal expenses
(including, without limitation, all salaries and expenses of its officers and employees performing
legal or accounting duties), the expense of any annual audit or quarterly review, the expense of
any liability insurance and the expenses and fees for listing the securities to be registered on
each securities exchange on which similar securities issued by the Company are then listed or on
the NASDAQ.

          (b) In connection with each Demand Registration and each Piggyback Registration, the Company
shall pay the reasonable fees and disbursements of one counsel chosen by the holders of Registrable
Securities holding a majority of the Registrable Securities requested to be included in such Demand
Registration or Piggyback Registration.

          (c) To the extent Registration Expenses are not required to be paid by the Company hereunder,
each holder of securities included in any registration hereunder shall pay those Registration
Expenses allocable to the registration of such holder’s securities so included, and any
Registration Expenses not so allocable shall be borne by all sellers of securities included in such
registration in proportion to the aggregate selling price of the securities to be so registered.

     6. Indemnification; Contribution.

          (a) Indemnification by the Company. The Company agrees to indemnify and hold harmless
each Stockholder selling securities in connection with the exercise of rights under this Agreement
and their respective officers, directors, stockholders, members, representatives on the Board of
Directors of the Company, and each Person, if any, who controls or is alleged to control any such
holder within the meaning of Section 15 of the Securities Act (each such Person referenced to
herein as a “Covered Person”) as follows:

               (i)against any and all loss, liability, claim, damage and expense whatsoever to which such Covered Person
may become subject under the Securities Act or otherwise (or actions or proceedings in respect thereof) (A) that arise

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out of or are based upon any untrue statement or alleged untrue statement of a material fact contained or
incorporated by reference in any registration statement relating to the holder’s Registrable Securities or any
amendment thereto, and any other disclosure document produced by or on behalf of the Company or any
of its subsidiaries, including, without limitation, reports required to be filed under the Exchange Act or the
omission or alleged omission to state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, (B) that arise out of or are based upon any untrue statement or alleged
untrue statement of a material fact contained or incorporated by reference in any prospectus or any amendment
or supplement thereto, or the omission or alleged omission to state therein a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made, not misleading;

               (ii) against any and all loss, liability, claim, damage and expense whatsoever to the
extent of the aggregate amount paid in settlement of any litigation, or incurred in
connection with any investigation or proceeding by any governmental agency or body,
commenced or threatened, or of any claim whatsoever based upon any such untrue statement or
alleged untrue statement or any omission or alleged omission contained or incorporated by
reference in any registration statement relating to the holder’s Registrable Securities, if
such settlement is effected with the written consent of the Company, which shall not be
unreasonably withheld, conditioned or delayed;

               (iii) against any and all expense whatsoever (including reasonable fees and
disbursements of counsel), reasonably incurred in investigating, preparing or defending
against any litigation, or investigation or proceeding by any governmental agency or body,
commenced or threatened, in each case whether or not a party, or any claim whatsoever based
upon any such untrue statement or alleged untrue statement or omission or alleged omission,
to the extent that any such expense is not paid under Section 6(a)(i) or Section 6(a)(ii)
above; and

               (iv) against any and all loss, liability, claim, damage and expense whatsoever to which
such Covered Person may become subject as a result of any violation by the Company of any
rule or regulation promulgated under the Securities Act, the Exchange Act, or any state
securities law applicable to the Company in connection with any registration, qualification,
or compliance of the Registrable Securities or any other capital stock of the Company or
otherwise;

provided, however, that the indemnity provided pursuant to this Section 6(a) shall
not apply with respect to any loss, liability, claim, damage or expense that arises out of or is
based upon any untrue statement or alleged untrue statement or omission or alleged omission made in
reliance upon and in conformity with written information furnished to the Company by such holder
expressly for use in any registration statement relating to the holder’s status as a selling
security holder or any amendment thereto or the prospectus or any amendment or supplement thereto.

          (b) Indemnification by Holders. Each holder of Registrable Securities severally
agrees to indemnify and hold harmless the Company, and each of its directors and

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officers who have signed the registration statement, and each Person, if any, who controls the Company or any other
selling holder within the meaning of Section 15 of the Securities Act, to the same extent as the
indemnity contained in Section 6(a) hereof, but only insofar as such loss, liability, claim, damage
or expense arises out of or is based upon any untrue statement or alleged untrue statement or
omission or alleged omission made in any registration statement relating to Registrable Securities
or any amendment thereto or the prospectus or any amendment or supplement thereto in reliance upon
and in conformity with written information furnished to the Company by such selling holder
expressly for use therein relating to the holder’s status as a selling security holder.
Notwithstanding the foregoing, the indemnification obligations under this Section 6(b), and the
contribution obligations under Section 6(d), of an indemnifying holder of Registrable Securities
shall be limited to the amount of net proceeds received by such holder upon the sale of Registrable
Securities under the registration statement to which the indemnification obligations relate.

          (c) Conduct of Indemnification Proceedings. Each indemnified party shall give
reasonably prompt notice to each indemnifying party of any action or proceeding commenced against
it in respect of which indemnity may be sought under this Section 6, but failure to so notify an
indemnifying party (i) shall not relieve it from any liability which it may have under the
indemnity agreement provided in Section 6(a) or (b) above, unless and to the extent it did not
otherwise learn of such action and the lack of notice by the indemnified party materially
prejudices the indemnifying party or results in the forfeiture by the indemnifying party of
substantial rights and defenses and (ii) shall not, in any event, relieve the indemnifying party
from any obligations to such indemnified party other than the indemnification obligation provided
under Section 6(a) or (b) above. After receipt of such notice, the indemnifying party shall be
entitled to participate in and, at its option, jointly with any other indemnifying party so
notified, to assume the defense of such action or proceeding at such indemnifying party’s own
expense with counsel chosen by such indemnifying party and approved by the indemnified party, which
approval shall not be unreasonably withheld; provided, however, that, if the defendants in any such
action or proceeding include both the indemnified party and the indemnifying party and the
indemnified party reasonably determines, upon advice of counsel, that a conflict of interest exists
or that there may be legal defenses available to it or other indemnified parties that are different
from or in addition to those available to the indemnifying party, then the indemnified party shall
be entitled to one separate counsel, the reasonable fees and expenses of which shall be paid by the
indemnifying party. If the indemnifying party does not assume the defense of any such action or
proceeding, after having received the notice referred to in the first sentence of this Section
6(c), the indemnifying party will pay the reasonable fees and expenses of counsel (which shall be
limited to a single law firm) for the indemnified party. In such event, however, the indemnifying
party will not be liable for any settlement effected without the written consent of such
indemnifying party, which consent shall not be unreasonably withheld, conditioned or delayed. If
the indemnifying party assumes the defense of any such action or proceeding in accordance with this
Section 6(c), such indemnifying party shall not be liable for any fees and expenses of counsel for
the indemnified party incurred thereafter in connection with such action or proceeding except as
set forth in the proviso in the second sentence of this Section 6(c).

          (d) Contribution. In order to provide for just and equitable contribution in
circumstances in which the indemnity agreement provided for in this Section 6 is for any reason
held to be unenforceable although applicable in accordance with its terms, the

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Company and the selling holders of Registrable Securities shall contribute to the aggregate losses, liabilities,
claims, damages and expenses of the nature contemplated by such indemnity agreement incurred by the
Company and the selling holders of Registrable Securities, in such proportion as is appropriate to
reflect the relative fault of and benefits to the Company on the one hand and such selling holders
on the other (in such proportions that the selling holders are severally, not jointly, responsible
for the balance), in connection with the statements or omissions which resulted in such losses,
claims, damages, liabilities or expenses, as well as any other relevant equitable considerations;
provided, that in no event shall any contribution by a selling holder of Registrable Securities
under this Section 6(d) exceed the net proceeds from the offering received by such selling holder.
The relative benefits to the indemnifying party and indemnified parties shall be determined by
reference to, among other things, the total proceeds received by the indemnifying party and
indemnified parties in connection with the offering to which such losses, claims, damages,
liabilities or expenses relate. The relative fault of the indemnifying party and indemnified
parties shall be determined by reference to, among other things, whether the action in question,
including any untrue or alleged untrue statement of a material fact or omission or alleged omission
to state a material fact, has been made by, or relates to information supplied by, such
indemnifying party or the indemnified parties, and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such action. The parties hereto agree that it
would not be just or equitable if contribution pursuant to this Section 6(d) were determined by pro
rata allocation or by any other method of allocation which does not take account of the equitable
considerations referred to this Section 6(d).

     Notwithstanding the foregoing, 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. For purposes of this Section 6(d), each
Person, if any, who controls a holder of Registrable Securities within the meaning of Section 15 of
the Securities Act and directors and officers of such holder shall have the same rights to
contribution as such holder, and each director of the Company, each officer of the Company who
signed the registration statement and each Person, if any, who controls the Company within the
meaning of Section 15 of the Securities Act shall have the same rights to contribution as the
Company.

     7. Participation in Underwritten Registrations. No Person may participate in any
registration hereunder which is underwritten unless such Person (i) agrees to sell such Person’s
securities on the basis provided in any underwriting arrangements approved by the Person or Persons
entitled hereunder to approve such arrangements and (ii) completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements and other documents required under the
terms of such underwriting arrangements; provided that no holder of Registrable Securities included
in any underwritten registration shall be required to make any representations or warranties to the
Company or the underwriters (other than representations and warranties regarding such holder, such
holder’s title to and authority to sell the Registrable Securities and such holder’s intended
method of distribution) or to undertake any indemnification obligations to the Company or the
underwriters with respect thereto, except as otherwise provided in Section 6 hereof.

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     8. Definitions.

          (a) “Common Stock” means the Company’s Common Stock, $0.01 par value per share.

          (b) “Person” includes any legal person, including, without limitation, any natural person,
corporation, partnership, limited liability company or trust.

          (c) “Registrable Securities” means: (i) any shares of Common Stock issued or issuable upon
conversion of the Series B Preferred, the Series C Preferred, the Series C-2 Preferred or the
Series D Preferred owned by the Stockholders, including upon conversion of shares issued as
dividends thereon and upon conversion of any shares acquired upon exercise of any warrant issued
under the Series D Purchase Agreement and (ii) other shares of Common Stock now or hereafter owned
by any Stockholder. Notwithstanding the foregoing, the term “Registrable Securities” shall
exclude: (i) Common Stock that has been disposed of under any effective registration statement;
(ii) Common Stock sold or otherwise transferred pursuant to Rule 144 under the Securities Act;
(iii) Common Stock that is held by holders who are not affiliates of the Company that are eligible
for sale pursuant to Rule 144(k) under the Securities Act; and (iv) Common Stock that is held by
any Stockholder whose aggregate stockholdings represent less than one percent (1%) of the total
then outstanding Common Stock (considered on an as-converted, “fully-diluted” basis).
Additionally, for purposes of this Agreement, a Person shall be deemed to be a holder of
Registrable Securities whenever such Person is known by the Company to have the right to acquire
such Registrable Securities (upon conversion or exercise in connection with a transfer of
securities or otherwise, but disregarding any restrictions or limitations upon the exercise of such
right), whether or not such acquisition has actually been effected, and such Person shall be
entitled to exercise the rights of a holder of Registrable Securities hereunder.

          (d) “Series B Preferred” means shares of the Company’s Series B Preferred Stock, $0.01 par
value per share.

          (e) “Series C Preferred” means shares of the Company’s Series C Preferred Stock, $0.01 par
value per share.

          (f) “Series C-2 Preferred” means shares of the Company’s Series C-2 Preferred Stock, $0.01 par
value per share.

          (g) “Series D Preferred” means shares of the Company’s Series D Preferred Stock, $0.01 par
value per share.

     9. Reports Under Securities Exchange Act of 1934; Transfer of Restricted Securities.
(a) With a view to making available to the holders of Registrable Securities the benefits of Rule
144 promulgated under the Securities Act and any other rule or regulation of the SEC that may at
any time permit a holder of Registrable Securities to sell securities of the Company to the public
without registration or pursuant to a registration on Form S-2 or S-3, the Company agrees to:

          (i) make and keep public information available, as those terms are understood and defined in
Rule 144, or such other similar information required by any similar rule or regulation hereafter
adopted by the SEC, at all times after ninety (90) days after the

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effective date of the first
registration statement filed by the Company for the offering of its securities to the general
public so long as the Company remains subject to the periodic reporting requirements under Sections
13 or 15(d) of the Exchange Act;

          (ii) take such action, including the voluntary registration of its Common Stock under Section
12 of the Exchange Act, as is necessary to enable the holders of Registrable Securities to utilize
Form S-2 or S-3 for the sale of their Registrable Securities, such action to be taken as soon as
practicable after the end of the fiscal year in which the first registration statement filed by the
Company for the offering of its securities to the general public is declared effective;

          (iii) file with the SEC in a timely manner all reports and other documents required of the
Company under the Securities Act and the Exchange Act; and

          (iv) furnish to any holder of Registrable Securities, so long as such holder owns any
Registrable Securities, forthwith upon request (A) a written statement by the Company that it has
complied with the reporting requirements of Rule 144 or any similar rule or regulation hereafter
adopted by the SEC (at any time after ninety (90) days after the effective date of the first
registration statement filed by the Company), the Securities Act and the Exchange Act (at any time
after it has become subject to such reporting requirements), or that it qualifies as a registrant
whose securities may be resold pursuant to Form S-2 or S-3 (at any time after it so qualifies), (B)
a copy of the most recent annual or quarterly report of the Company and such other reports and
documents so filed by the Company, and (C) such other information as may be reasonably requested in
availing any holder of Registrable Securities of any rule or regulation of the SEC which permits
the selling of any such securities without registration or pursuant to any such form.

          (a) If any Registrable Securities become eligible for sale pursuant to Rule 144(k), the
Company shall, upon the request of the holder of such Registrable Securities, remove any applicable
legend from the certificate(s) representing such securities.

     10. Directed Share Programs. The Company and Stockholders agree that, with respect to
only the Series C-2 Preferred or Series D Preferred owned by a Stockholder, such Stockholder shall
have the right to purchase that number of shares of Common Stock issuable as directed shares in
connection with an IPO of the Company’s Common Stock equal to not less than the product of (x) the
total number of such directed shares, times (y) ten percent (10%), times (z) the percentage of the
total number of shares of Common Stock issued or issuable on conversion of the Series C-2 Preferred
or Series D Preferred owned by such holder. No Stockholders other than the holders of Series C-2
Preferred or Series D Preferred shall have the right to purchase such directed shares.

     11. General Provisions; Termination

          (a) No Inconsistent Agreements. Without the written consent of Stockholders holding a
majority of the then outstanding Registrable Securities, the Company shall not hereafter enter into
any agreement with respect to its securities which is inconsistent with or violates or limits the
rights granted to the holders of Registrable Securities in this

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Agreement, including without limitation with respect to priority on cutback in an underwritten public offering as specified in
Sections 1(d), 2(c) and 2(d).

          (b) Adjustments Affecting Registrable Securities. The Company shall not take any
action, or permit any change to occur, with respect to its securities which would materially
adversely affect the ability of the holders of Registrable Securities to include such Registrable
Securities in a registration undertaken pursuant to this Agreement or which would materially
adversely affect the marketability of such Registrable Securities in any such registration (which
might include, without limitation, effecting a stock split or a combination of shares).

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

          (d) Amendment and Waivers. Except as otherwise provided herein, the provisions of
this Agreement may be amended or waived only upon the prior written consent of (i) the Company,
(ii) holders of at least fifty-one percent (51%) of the then outstanding shares of Common Stock
issued or issuable upon conversion of the Series C-2 Preferred and (iii) holders of at least 51% of
the then outstanding Series D Preferred; provided that if such amendment or waiver would
materially adversely affect a holder or group of holders of Registrable Securities in a manner
materially different than any other holder or group of holders of Registrable Securities, then such
amendment or waiver will require the consent of such holder of Registrable Securities or a majority
of the Registrable Securities held by such group of holders materially adversely affected. The
failure of any party to enforce any of the provisions of this Agreement shall in no way be
construed as a waiver of such provisions and shall not affect the right of such party thereafter to
enforce each and every provision of this Agreement in accordance with its terms.

          (e) Successors and Assigns. All covenants and agreements in this Agreement by or on
behalf of any of the parties hereto shall bind and inure to the benefit of the respective
successors and assigns of the parties hereto whether so expressed or not. In addition, whether or
not any express assignment has been made, the provisions of this Agreement which are for the
benefit of purchasers or holders of Registrable Securities are also for the benefit of, and
enforceable by, any subsequent holder of Registrable Securities.

          (f) Severability. If any provision of this Agreement is held to be prohibited by or
invalid, illegal or unenforceable in any respect under applicable law by the SEC
or by a court of competent jurisdiction, such provision shall be ineffective only to the
extent of such prohibition, invalidity, illegality or unenforceability without invalidating the
remainder of this Agreement.

 

 

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

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

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

          (j) Notices. All notices, demands or other communications to be given or delivered
under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to
have been given when delivered personally to the recipient or one day after being sent to the
recipient by reputable overnight courier service (charges prepaid). Such notices, demands and
other communications shall be sent to each Stockholder at the address and to the attention of such
person as the Stockholder has specified to the Company, and to the Company at the address and to
the attention of such person indicated below:

Nanosphere, Inc.

4088 Commercial Avenue

Northbrook, Illinois 60062

Attention: President

with a copy to:

Paul, Hastings, Janofsky & Walker LLP

1055 Washington Boulevard

Stamford, Connecticut 06901

Attention: Esteban A. Ferrer, Esq.

or to such other address or to the attention of such other person as the recipient party has
specified by prior written notice to the sending party.

     (k) Aggregation of Stock. All shares of Registrable Securities held or acquired by
affiliated entities or Persons shall be aggregated together for the purpose of determining the
availability of any rights under this Agreement.

     (l) Prior Agreement and Entire Agreement. This Agreement hereby amends and restates
the Prior Agreement in its entirety, and upon execution and delivery of this Agreement, the Prior
Agreement shall be of no further force of effect. Additionally, except as otherwise expressly set
forth herein, this Agreement and the agreements and instruments referred to herein embody the
complete agreement and understanding among the parties hereto with respect to the subject matter
hereof and supercede and preempt any prior understandings,
agreements or representations by or among the parties, written or oral, which may have related
to the subject matter hereof in any way.

[Signature pages follow.]

-16-

 

 

     IN WITNESS WHEREOF, the parties have executed this Amended and Restated Registration Rights
Agreement as of the date first written above.

	 	 	 	 	 
	 	THE COMPANY: 

NANOSPHERE, INC.

 	 
	 	By:  	
/s/ William P. Moffitt III	 
	 	Its:	Chief Executive Officer 	 
	 	 	 	 
	 

[SIGNATURE PAGE TO AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT]

 

 

	 	 	 	 	 
	 
	 	 	 	 
	 	 	STOCKHOLDERS:
	 
	 	 	 	 
	 	 	LFT PARTNERSHIP
	 
	 	 	 	 
	 

	 	By:	 	/s/ Mark Slezak
	 

	 	 	 	 
	 

	 	 	 	Mark Slezak, Authorized Signatory
	 
	 	 	 	 
	 	 	ALFA-TECH, LLC
	 
	 	 	 	 
	 

	 	By:	 	/s/ Mark Slezak
	 

	 	 	 	 
	 

	 	 	 	Mark Slezak, Authorized Signatory
	 
	 	 	 	 
	 	 	LURIE INVESTMENT FUND, L.L.C.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Mark Slezak
	 

	 	 	 	 
	 

	 	 	 	Mark Slezak, Authorized Signatory
	 
	 	 	 	 
	 	 	LURIE INVESTMENTS, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Mark Slezak
	 

	 	 	 	 
	 

	 	 	 	Mark Slezak, Authorized Signatory
	 
	 	 	 	 
	 	 	EAGLE CAPITAL MANAGEMENT, LLC
	 
	 	 	 	 
	 

	 	By:	 	/s/ Mark Slezak
	 

	 	 	 	 
	 

	 	 	 	Mark Slezak, Authorized Signatory
	 
	 	 	 	 
	 	 	WASK INVESTMENTS, L.L.C.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Mark Slezak
	 

	 	 	 	 
	 

	 	 	 	Mark Slezak, Authorized Signatory

[SIGNATURE PAGE TO AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT]

 

 

	 	 	 	 	 
	 
	 	 	 	 
	 	 	Ann and Robert H. Lurie Foundation
	 
	 	 	 	 
	 

	 	By:	 	/s/ Mark Slezak
	 

	 	 	 	 
	 

	 	Name:	Mark Slezak
	 

	 	Title	Authorized Signatory
	 
	 	 	 	 
	 	 	/s/ Laura A. Mondrowski

Laura A. Mondrowski
	 
	 	 	 	 
	 	 	ALLEN & COMPANY LLC
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kim Wieland
	 

	 	 	 	 
	 

	 	Name:	Kim Wieland
	 

	 	Title:	CFO

[SIGNATURE PAGE TO AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT]

 

 

	 	 	 	 	 
	 
	 	 	 	 
	 	 	BAIN CAPITAL VENTURE FUND 2005, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Bain Capital Venture Partners, L.P.
	 
	 	 	 	 
	 	 	Bain Capital Investors, LLC,

its general partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ James Nahirny
	 

	 	 	 	 
	 

	 	 	 	Name: James Nahirny
	 

	 	 	 	Title: Authorized Person
	 
	 	 	 	 
	 	 	BCIP ASSOCIATES III, LLC
	 
	 	 	 	 
	 

	 	By:
	 	BCIP Associates III,
	 

	 	 	 	its sole member and manager
	 
	 	 	 	 
	 	 	BCIP ASSOCIATES III-B, LLC
	 
	 	 	 	 
	 

	 	By:
	 	BCIP Associates III-B,
	 

	 	 	 	its sole member and manager
	 
	 	 	 	 
	 

	 	By:
	 	Bain Capital Investors, LLC
	 

	 	 	 	their Managing Partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ James Nahirny
	 

	 	 	 	 
	 

	 	 	 	Name: James Nahirny
	 

	 	 	 	Title: Authorized Person
	 
	 	 	 	 
	 	 	BROOKSIDE CAPITAL PARTNERS FUND, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Brookside Capital Investors, L.P.,
	 

	 	 	 	its general partner
	 
	 	 	 	 
	 

	 	By:
	 	Brookside Capital Management, LLC,
	 

	 	 	 	its general partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ William Pappendick
	 

	 	 	 	 
	 	 	Name: William Pappendick

Title: Managing Director
	 
	 	 	 	 
	 	 	RGIP, LLC
	 
	 	 	 	 
	 

	 	By:	 	/s/
	 

	 	 	 	 
	 	 	Name:

Managing Member

[SIGNATURE PAGE TO AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT]

 

 

	 	 	 	 	 
	 
	 	 	 	 
	 	 	HAL AND RHEA COSKEY REVOCABLE TRUST DATED 12/16/97
	 
	 	 	 	 
	 

	 	By:	 	/s/ Trustee for the Hal and Rhea Coskey Revocable Trust Dated 12/16/97

	 

	 	 	 	 
	 

	 	Name:	 
	 

	 	Title:	Trustee
	 
	 	 	 	 
	 	 	TAKARA BIO INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Ikunoshin Kato
	 

	 	 	 	 
	 

	 	Name:	Ikunoshin Kato
	 

	 	Title:	CEO
	 
	 	 	 	 
	 	 	IBRAHIM S. HAWATMEH REVOCABLE LIVING TRUST, DATED 5/24/84
	 
	 	 	 	 
	 

	 	By:	 	/s/ Trustee for Ibrahim S. Hawatmeh Revocable Living Trust, Dated 5/24/84

	 

	 	 	 	 
	 

	 	Name:	 
	 

	 	Title:	Trustee
	 
	 	 	 	 
	 	 	NEXTGEN ENABLING TECHNOLOGIES FUND, LP
	 
	 	 	 	 
	 

	 	By:	 	/s/
	 

	 	 	 	 
	 

	 	Name:
	 

	 	Title:
	 
	 	 	 	 
	 	 	R CAPITAL II, LTD.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Robert Gephart
	 

	 	 	 	 
	 

	 	Name:	Robert Gephart
	 

	 	Title:	Vice President

[SIGNATURE PAGE TO AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT]

 

 

	 	 	 	 	 
	 
	 	 	 	 
	 	 	/s/
Mark Slezak

Mark Slezak
	 
	 	 	 	 
	 	 	/s/
William T. White III

William T. White III
	 
	 	 	 	 
	 	 	/s/
Chad A. Mirkin

Chad A. Mirkin
	 
	 	 	 	 
	 	 	/s/
William P. Moffitt III

William P. Moffitt
	 
	 	 	 	 
	 	 	/s/
Sheli Z. Rosenberg

Sheli Z. Rosenberg
	 
	 	 	 	 
	 	 	/s/
Mark Landy

Mark Landy
	 
	 	 	 	 
	 	 	/s/
Susanne Landy

Susanne Landy

[SIGNATURE PAGE TO AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT]

 

 

	 	 	 	 	 
	 
	 	 	 	 
	 	 	/s/
Adam N. Mirkin

Adam N. Mirkin
	 
	 	 	 	 
	 	 	/s/
Rhoderic Peter Mirkin

Rhoderic Peter Mirkin
	 
	 	 	 	 
	 	 	/s/
Richard Segal

Richard Segal
	 
	 	 	 	 
	 	 	/s/
Phillip Van Winkle

Phillip Van Winkle
	 
	 	 	 	 
	 	 	/s/
Stephanie Van Winkle

Stephanie Van Winkle
	 
	 	 	 	 
	 	 	/s/
Robert L. Letsinger

Robert L. Letsinger
	 
	 	 	 	 
	 	 	/s/
Richard Wickel

Richard Wickel
	 
	 	 	 	 
	 	 	/s/
Peter J. Stang

Peter J. Stang
	 
	 	 	 	 
	 	 	/s/
Steven E. Mather

Steven E. Mather

[SIGNATURE PAGE TO AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT]

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