Document:

exv10w22w3

Exhibit 10.22.3

THIRD AMENDMENT TO LOAN AGREEMENT

                    This Third Amendment to Loan Agreement (“Amendment”) is made effective the 30th day
of June, 2010, between GRAYMARK HEALTHCARE, INC., an Oklahoma corporation (“GRMH”), SDC HOLDINGS,
LLC, an Oklahoma limited liability company (“SDC”) and APOTHECARYRx, LLC, an Oklahoma limited
liability company (“ARx” together with GRMH and SDC, jointly and severally the “Borrowers” and each
a “Borrower”), OLIVER COMPANY HOLDINGS, LLC, an Oklahoma limited liability company (“OCH”), ROY T.
OLIVER, an individual (“Oliver”), STANTON M. NELSON, an individual (“Nelson”), ROY T. OLIVER, as
Trustee of the Roy T. Oliver Revocable Trust dated June 15, 2004 (the “Trust”), VAHID SALALATI, an
individual (“Salalati”), KEVIN LEWIS, an individual (“Lewis”) ROGER ELY, an individual (“Ely”) and
LEWIS P. ZEIDNER, an individual (“Zeidner” and together with OCH, Oliver, Nelson, Trust, Salalati,
Lewis and Ely, the “Guarantors”) and ARVEST BANK, an Arkansas banking corporation (the “Bank”).

                    WHEREAS, the Borrowers, Guarantors and Bank have heretofore entered into that certain Loan
Agreement dated effective May 21, 2008, as amended by means of that certain Amendment to Loan
Agreement dated effective May 21, 2008 and that certain Second Amendment to Loan Agreement dated
effective May 21, 2009 (together, the “Loan Agreement”) and related Loan Documents;

                    WHEREAS, the Borrowers, Guarantors and Bank desire to further amend the Loan Agreement and
Loan Documents by means of this Amendment as set forth herein; and

                    WHEREAS, this Amendment is executed by each Guarantor and delivered to the Bank to reflect the
Guarantors consent to the Amendment, to induce the Bank to amend the Loan and in satisfaction of a
material condition precedent to such amendment by the Bank.

                    NOW, THEREFORE, in consideration of the mutual covenants among the parties hereto, it is
agreed as follows:

1.     Defined Terms. Unless otherwise defined herein, all terms defined in the Loan Agreement or
other Loan Documents will have the same meanings in this Amendment.

2.     Term Note; Interest. Paragraph 3.1.2 of the Loan Agreement is hereby deleted in its
entirety and replaced with the following:

	 	3.1.2	 	Interest. Prior to Default, the unpaid principal balance of the Term Note will bear
interest from the date of advance at the per annum rate equal to the greater of (a) the WSJ
Prime Rate, as adjusted; or (b) six percent (6%) per annum. The WSJ
Prime Rate will be adjusted, without notice, on an annual basis to the WSJ
Prime Rate then in effect as of each anniversary date of this Note, or the first
business day following such date if the anniversary date occurs on a weekend or
holiday that there is no such rate determined or published. After Default, all
amounts due under the Term Note will bear interest at the per annum rate equal to
the greater of: (a) fifteen percent (15%); or (b) the WSJ Prime Rate plus five
percent (5%).
Interest will be computed on a per diem charge based on a three hundred
sixty (360) day year.

	 	 	 	 	 

	Third Amendment to Loan Agreement	 	 	 	 

 

3.     Acquisition Note; Interest. Paragraph 3.2.2 of the Loan Agreement is hereby deleted in its
entirety and replaced its entirety with the following:

	 	3.2.2	 	Interest. Prior to Default, the unpaid principal balance of each Tranche of the
Acquisition Note will bear interest from the date of advance at the per annum rate equal to
the greater of (a) the WSJ Prime Rate, as adjusted for any changes to the WSJ Prime Rate on
each anniversary date; or (b) six percent (6%) per annum. The WSJ Prime Rate will be
adjusted, without notice, on an annual basis to the WSJ
Prime Rate then in effect as of each anniversary date of each Tranche of the
Acquisition Note, or the first business day following such date if the anniversary
date occurs on a weekend or holiday that there is no such rate determined or
published. After Default, all amounts due under the Acquisition Note will bear
interest at the per annum rate equal to the greater of: (a) fifteen percent (15%);
or (b) the WSJ Prime Rate plus five percent (5%). Interest will be computed on a per
diem charge based on a three hundred sixty (360) day year.

4.     Covenants.
The following additional section will be added to the Agreement:

	 	7.4.4	 	Accounts Receivable: Inventory. Commencing July 2010, and for each month thereafter,
the Borrowers will furnish the Bank within twenty (20) days after the end of each month aged
accounts receivable reports (to the extent aged reports are available) in form
and substance satisfactory to the Bank.

5.     Debt Service Coverage Ratio. Paragraph 8.11 of the Loan Agreement is hereby deleted in its
entirety and replaced with the following:

	 	8.11	 	Debt Service Coverage Ratio. Commencing with the Quarter ending September 30, 2010 and
thereafter during the term of the Loan, based on the latest four rolling quarters, the
Borrowers will continuously maintain a Debt Service Coverage Ratio of not less than 1.25 to
1. Provided, however, if on September 30, 2010, a written contract for a Pharmacy Sale (as
hereafter defined) exists and such contract is scheduled to close within the ensuing 30
days, the date for commencement of the continuous maintenance of the Debt Service Ratio will
be extended to October 31, 2010 and the payments and transactions resulting from the
consummation of the Pharmacy Sale (that are made or completed within the earlier of 30 days
of the closing date of the Pharmacy Sale or October 31, 2010) will be deemed effective on
September 30 for purposes of the Debt Service Coverage Ratio only. If the Pharmacy Sale
closes between September 1 and September 30, 2010 the date for commencement of the
continuous maintenance of the Debt Service Ratio will be extended for thirty (30) days post
closing (but in any event not beyond October 31, 2010) and the payments and transactions
resulting from the consummation of the Pharmacy Sale (that are made or completed within the
earlier of 30 days of the closing date of the Pharmacy Sale
or October 31, 20 10) will be deemed effective on September 30 for
purposes of the Debt Service Coverage Ratio only.

	 	 	 	 	 

	Third Amendment to Loan Agreement	 	-2-	 	 

 

	 	 	6.     Sale of Pharmacies. The Borrowers intend to sell all or substantially all of the pharmacies
owned by the Borrowers or the Borrower’s affiliates in one or more transactions on market terms to
be reasonably approved by the Bank (the “Pharmacy Sales”). Any Pharmacy Sale that will result in
Sale Proceeds (as hereafter defined) sufficient to make the Pharmacy Sale Payment (as hereafter
defined) to the Bank is deemed approved and no additional approval by the bank will be
necessary. If the Pharmacy Sales are consummated, all proceeds from any Pharmacy Sales (after
payment of all reasonable, usual and customary third party costs actually incurred in connection
with a Pharmacy Sale, such as (i) commissions, (ii) legal and accounting fees and other
expenses paid to third parties, (iii) payment of Seller Carry Financing on the Pharmacies sold and
amounts due to Cardinal for the Pharmacies sold, each of which is required to obtain a release at
closing in order to close a Pharmacy Sale, the “Sale Proceeds”) will be immediately deposited in a
restricted account at the Bank (the “Restricted Account”). At the closing of any Pharmacy Sale
approved (or deemed approved herein) by the Bank, The Bank will provide the purchaser a release of
all liens and security interests held by the Bank relating to the Pharmacy being sold. The
Borrowers will take all actions necessary to ensure that the Bank at all times has a first and
prior security interest in the Restricted Account and the Sale Proceeds and that no other person or
entity has any interest in or claim to the Restricted Account or the Sale Proceeds. Unless the Bank
approves in writing, all Sale Proceeds will be used only to reduce the Borrower’s obligations to
the Bank by $25,000,000.00 (the “Pharmacy Sale Payment”) and for the purposes set forth at Schedule
“A” attached as a part hereof. Within five (5) business days after the Sale Proceeds are deposited
into the Restricted Account, the Borrowers will cause a partial Pharmacy Sale Payment in the amount
of $22,000,000.00 to be made to the Bank from the Restricted Account. Within thirty (30) days after
the Sale Proceeds are deposited into the Restricted Account, the Borrowers will cause an additional
payment of $3,000,000.00 to be made to the bank from the Restricted Account. Prior to full payment
of the Pharmacy Sale Payment (but after payment of the partial Pharmacy Sale Payment in the amount
of $22,000,000 to the Bank), Borrowers may make other payments and disbursements of funds in the
Restricted Account for the purposes and not in excess of the amounts set forth in Schedule “A”.
After the full Pharmacy Sale Payment is made to the Bank, the amounts on deposit in the Restricted
Account will be transferred to the Borrower’s operating account to be disbursed solely in
accordance with and for the purposes specified in Schedule “A.” Except (a) as specified on Schedule
“A” and (b) for the owner financed debt currently outstanding for a pharmacy sold in connection
with the Pharmacy Sales, the Borrowers and the Borrower’s affiliates will not use any of the Sale
Proceeds to directly or indirectly pay any debt or obligations (other than reasonable, usual
operating or overhead costs, or make any distributions, payments or other remuneration to any
shareholders or members, or partners of the Borrowers or the Borrower’s affiliates. The Pharmacy
Sale Payment in excess of the amounts advanced by the Bank under the Acquisition Note tranches to
the Borrower for the acquisition of the Pharmacies will be applied to the Term Note.

7.     Plans;
Proformas. The Borrowers will deliver to the Bank prior to July 31, 2010 (a) a
detailed plan for maintaining full compliance with all of the covenants in the Loan Agreement and
this Amendment and for paying the loan in full in the event that the Pharmacy Sales are not
completed; and (b) proforma monthly balance sheet, income statement and cash needs statement

	 	 	 	 	 

	Third Amendment to Loan Agreement	 	-3-	 	 

 

 (with detailed sources and uses) for the 15 month period from October 1, 2010 through
December 31, 2011 for three scenarios: (i) all pharmacies sold, (ii) no pharmacies sold
and (iii) some, but not all pharmacies sold. The proformas described in part (b) will be reviewed
and approved by an independent third party engaged by the Borrower and acceptable to the Bank. All
information in the proformas that is not available from any other source will be confidential and
used only by the Bank for the purposes of this Third Amendment.

8.     Permitted Actions after Pharmacy Sale Payments. Notwithstanding any contrary provisions of
the Loan Agreement (and in addition to the rights of the Borrowers under existing provisions of the
Loan Agreement as existing prior to this Third Amendment), including Sections 8.3, 8.4, 8.7, 8.8 or
8.9 and any other provisions of the related Loan Documents, Borrowers may
take any and all of the following actions, after the Pharmacy Sale Payment has been fully made
to Bank and if Borrowers are not then in default of the Loan Agreement or the Loan Documents:

8.1 With prior written notice to the Bank, GRMH may issue and sell its
convertible debt obligations and pay coupons thereon to the purchasers thereof on
commercially reasonable market terms, such convertible debt obligations to be
unsecured, using the proceeds of such issuance(s) for ordinary course operating
needs of the Borrowers and/or planned and disclosed acquisitions of additions to the
present businesses of Borrowers.

8.2 GRMH may issue its guaranty for any of the Borrowers ordinary course
business obligations that are not otherwise prohibited by the Loan Agreement and
Loan Documents;

8.3 Any of the Borrowers may loan, advance, contribute or distribute funds to
any of the Borrowers. Any of the Borrowers may repay to any of the Borrowers any
loan or advance.

9.     Account Control. Contemporaneously with the execution of this Amendment, the Borrowers will
cause to be executed and delivered to the Bank an account control agreement in substantially the
form as attached at Schedule “B” for all accounts of the Borrowers and the Borrower’s affiliates at
Valliance Bank and other financial institutions. The Bank will exercise its rights to give
instructions to Valliance under the Deposit Control Agreement only in the event of an uncured
default under the Loan Agreement, as amended by this Agreement and any other Loan Documents or the
exercise or attempt by any other person to exercise any dominion or control over the account,
directly or indirectly, including through any order, attachment or levy.

10.     Representations. The Borrowers represent and warrant to the Bank that: (a) all necessary
corporate action on the part of each party to be taken in connection with the execution, delivery
and performance of this Amendment has been duly and effectively taken; (b) the execution, delivery
and performance by each party of this Amendment does not constitute a violation or breach of such
party’s articles of incorporation, by-laws or any other agreement or law by which such party is
bound; (c) each representation and warranty contained in the Loan Agreement and Loan Documents is
true and correct on the effective date of this Amendment as if made on such

	 	 	 	 	 

	Third Amendment to Loan Agreement	 	-4-	 	 

 

 date; and (d) the Borrowers and the Borrower’s affiliates are not in default under the
Loan Agreement or the Loan Documents or any other agreements with other parties of which failure to
cure would constitute a default under the Loan Agreement or Loan Documents.

11.     Guarantor’s Consent. Each Guarantor hereby consents to this Amendment and the transactions
contemplated herein and agrees that such Guarantor’s liability under any of the Guaranties in favor
of the Bank will not be released, reduced, impaired or affected by this Amendment or the
transactions contemplated herein.

12.     Full Force and Effect. Except as amended by this Amendment, all of the terms and
provisions of the Loan Agreement and Loan Documents will continue in full force and effect,
uninterrupted and unabated, and the Loan Agreement and Loan Documents as herein expressly amended,
is hereby ratified, approved and confirmed in every respect.

13.     Expenses. The Borrowers will pay to the Bank all attorney’s fees and expenses incurred by
the Bank in connection with this Amendment and the events leading to this Amendment.

14.     Counterparts. This Amendment may be executed in multiple counterparts, each of which will
be an original instrument, but all of which will constitute one agreement.

[SIGNATURE PAGES TO FOLLOW]

	 	 	 	 	 

	Third Amendment to Loan Agreement	 	-5-	 	 

 

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

	 	 	 	 	 	 	 	 	 

	 	 	GRAYMARK HEALTHCARE, INC.,
an Oklahoma Corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By	 	/s/ Stanton M. Nelson	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Stanton M. Nelson, CEO	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	APOTHECARYRx LLC,
an Oklahoma limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	BY: GRAYMARK HEALTHCARE, INC.,
an Oklahoma Corporation, its MANAGER	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By
	 	Stanton M. Nelson	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Stanton M. Nelson, CEO	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	SDC HOLDINGS, LLC, an Oklahoma limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	BY: GRAYMARK HEALTHCARE, INC.,
an Oklahoma Corporation, its MANAGER	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By
	 	Stanton M. Nelson	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Stanton M. Nelson, CEO	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	(the “Borrowers”)	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	OLIVER COMPANY HOLDINGS, LLC,
an Oklahoma limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By	 	/s/ Roy T. Oliver	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Roy T. Oliver, Manager	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	/s/ Roy T. Oliver	 	 
	 	 	 	 	 
	 	 	ROY T. OLIVER, individually	 	 

	 	 	 	 	 

	Third Amendment to Loan Agreement	 	 	 	 

 

	 	 	 	 	 	 	 

	 	 	THE ROY T. OLIVER REVOCABLE TRUST
DATED JUNE 15, 2004	 	 
	 	 	 	 	 	 	 
	 

	 	By
	 	/s/ Roy T. Oliver	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	ROY T. OLIVER, Trustee	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Stanton M. Nelson	 	 
	 	 	 	 	 
	 	 	STANTON M. NELSON, individually	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	VAHID SALALATI, individually	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	KEVIN LEWIS, individually	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	ROGER ELY, individually	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	LEWIS P. ZEIDNER, individually	 	 
	 
	 	 	 	 	 	 
	 	 	(the “Guarantors”)	 	 
	 
	 	 	 	 	 	 
	 	 	ARVEST BANK, an Arkansas banking corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Steve Faler, Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	(the “Bank”)	 	 

	 	 	 	 	 

	Third Amendment to Loan Agreement	 	 	 	 

 

	 	 	 	 	 	 	 

	 	 	THE ROY T. OLIVER REVOCABLE TRUST
DATED JUNE 15, 2004	 	 
	 	 	 	 	 	 	 
	 

	 	By
	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	ROY T. OLIVER, Trustee	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	STANTON M. NELSON, individually	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	VAHID SALALATI, individually	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Kevin Lewis	 	 
	 	 	 	 	 
	 	 	KEVIN LEWIS, individually	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	ROGER ELY, individually	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	LEWIS P. ZEIDNER, individually	 	 
	 
	 	 	 	 	 	 
	 	 	(the “Guarantors”)	 	 
	 
	 	 	 	 	 	 
	 	 	ARVEST BANK, an Arkansas banking corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Steve Faler, Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	(the “Bank”)	 	 

	 	 	 	 	 

	Third Amendment to Loan Agreement	 	 	 	 

 

	 	 	 	 	 	 	 

	 	 	THE ROY T. OLIVER REVOCABLE TRUST
DATED JUNE 15, 2004	 	 
	 	 	 	 	 	 	 
	 

	 	By
	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	ROY T. OLIVER, Trustee	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	STANTON M. NELSON, individually	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	VAHID SALALATI, individually	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	KEVIN LEWIS, individually	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	ROGER ELY, individually	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Lewis P. Zeidner	 	 
	 	 	 	 	 
	 	 	LEWIS P. ZEIDNER, individually	 	 
	 
	 	 	 	 	 	 
	 	 	(the “Guarantors”)	 	 
	 
	 	 	 	 	 	 
	 	 	ARVEST BANK, an Arkansas banking corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Steve Faler, Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	(the “Bank”)	 	 

	 	 	 	 	 

	Third Amendment to Loan Agreement	 	 	 	 

 

	 	 	 	 	 	 	 

	 	 	THE ROY T. OLIVER REVOCABLE TRUST
DATED JUNE 15, 2004	 	 
	 	 	 	 	 	 	 
	 

	 	By
	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	ROY T. OLIVER, Trustee	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	STANTON M. NELSON, individually	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	VAHID SALALATI, individually	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	KEVIN LEWIS, individually	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	ROGER ELY, individually	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	LEWIS P. ZEIDNER, individually	 	 
	 
	 	 	 	 	 	 
	 	 	(the “Guarantors”)	 	 
	 
	 	 	 	 	 	 
	 	 	ARVEST BANK, an Arkansas banking corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Steve Faler	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Steve Faler, Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	(the “Bank”)	 	 

	 	 	 	 	 

	Third Amendment to Loan Agreementexv10w1

Exhibit 10.1

REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of December
30, 2010, by and between McMoRan Exploration Co., a Delaware corporation (“Seller”), and
Freeport-McMoRan Preferred LLC, a Delaware limited liability company (“Purchaser”). Purchaser and
Seller are sometimes referred to collectively as the “Parties” and individually as a “Party.”

RECITALS:

     WHEREAS, Purchaser and Seller have entered into that certain Stock Purchase Agreement (the
“Purchase Agreement”), dated as of September 19, 2010, by and between Purchaser, Seller, and
Freeport-McMoRan Copper & Gold Inc., a Delaware corporation (“Freeport”) pursuant to which Seller
has agreed to issue and sell, and Purchaser has agreed to purchase and accept, shares of Seller’s
5.75% convertible perpetual preferred stock (the “Preferred Stock”), which is convertible into
shares of Seller’s common stock, par value $0.01 per share (the “Common Stock”); and

     WHEREAS, to induce Purchaser to enter into the Purchase Agreement and to consummate the
transactions contemplated thereby, Purchaser has required that Seller agree, and Seller has agreed,
to enter into this Agreement and abide by the covenants and obligations with respect to the
Registrable Securities as set forth herein; and

     NOW, THEREFORE, in consideration of the premises and of the mutual promises, representations,
warranties, covenants, conditions and agreements contained herein, and for other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as
follows:

ARTICLE 1

DEFINITIONS

     Section 1.1 Definitions. Capitalized terms used herein without definition shall have
the meanings given to them in the Purchase Agreement. The terms set forth below are used herein as
so defined:

     “Agreement” has the meaning specified in the introductory paragraph of this Agreement.

     “Common Stock” has the meaning specified in the recitals of this Agreement.

     “Effectiveness Period” has the meaning specified in Section 2.1(b) of this Agreement.

     “Holder” means the record holder of any Registrable Securities; provided, that no such record
holder shall be deemed to be a “Holder” if the rights under Article II hereof have not been
transferred or assigned to such record holder in accordance with Section 2.11.

     “Included Registrable Securities” has the meaning specified in Section 2.2(a) of this
Agreement.

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     “Losses” has the meaning specified in Section 2.9(a) of this Agreement.

     “Managing Underwriter” means, with respect to any Underwritten Offering, the book-running lead
manager(s) of such Underwritten Offering.

     “NYSE” means The New York Stock Exchange, Inc.

     “Parity Securities” has the meaning specified in Section 2.2(b) of this Agreement.

     “Preferred Stock” has the meaning specified in the recitals of this Agreement.

     “Purchase Agreement” has the meaning specified in the recitals of this Agreement.

     “Purchaser” has the meaning specified in the introductory paragraph of this Agreement.

     “Registrable Securities” means the Preferred Stock, the Common Stock issuable upon conversion
of the Preferred Stock and any additional securities issued with respect to such shares of
Preferred Stock or Common Stock.

     “Registration Expenses” has the meaning specified in Section 2.8(b) of this Agreement.

     “Registration Statement” means any registration statement of Seller filed under the Securities
Act that covers the resale of any of the Registrable Securities pursuant to the provisions of this
Agreement, amendments and supplements to such Registration Statement, including post-effective
amendments, all exhibits and all material incorporated by reference in such Registration Statement.

     “SEC” means the United States Securities and Exchange Commission.

     “Seller” has the meaning specified in the introductory paragraph of this Agreement.

     “Selling Expenses” has the meaning specified in Section 2.8(b) of this Agreement.

     “Selling Holder” means a Holder who is selling Registrable Securities pursuant to a
registration statement.

     “Selling Holder Indemnified Persons” has the meaning specified therefore in Section
2.9(a) of this Agreement.

     “Underwritten Offering” means an offering (including an offering pursuant to a Registration
Statement) in which shares of Preferred Stock or Common Stock are sold to an underwriter on a firm
commitment basis for reoffering to the public or an offering that is a “bought deal” with one or
more investment banks.

     Section 1.2 Registrable Securities. Any Registrable Security will cease to be a Registrable Security upon the earliest of (a)
when a registration statement covering such Registrable Security becomes or has been declared
effective by the SEC and such Registrable Security has been sold or disposed of pursuant to such
effective registration statement; (b) when

2

 

such Registrable Security has been disposed of pursuant
to any section of Rule 144 (or any similar provision then in effect) under the Securities Act or
such Registrable Security is eligible to be disposed of by the Holder thereof under Rule 144
without restriction as to volume; (c) when such Registrable Security is held by Seller or one of
its subsidiaries; and (d) when such Registrable Security has been sold in a private transaction in
which the transferor’s rights under this Agreement are not assigned to the transferee of such
securities pursuant to Section 2.11 hereof.

ARTICLE 2

REGISTRATION RIGHTS

     Section 2.1 Registration.

          (a) Not later than 60 days after the Closing Date, Seller shall file with the SEC an automatic
shelf Registration Statement (or, if Seller is not eligible to use an automatic shelf Registration
Statement, a Registration Statement on Form S-3 or such other form as is then available to Seller
to effect a registration for resale of the Registrable Securities) covering the resale of the
Registrable Securities. Any Registration Statement shall provide for the resale of Registrable
Securities pursuant to any method or combination of methods legally available to, and requested by,
the Holder of any Registrable Securities covered by such Registration Statement. If such
Registration Statement is not automatically effective upon filing, then Seller shall use its
commercially reasonable efforts to cause such Registration Statement to be declared effective not
later than 240 days after the Closing Date.

          (b) Seller shall use its commercially reasonable efforts to cause a Registration Statement
filed pursuant to this Section 2.1 to be effective, supplemented, amended and replaced to
the extent necessary to ensure that it is available for the resale of all Registrable Securities by
the Holders until the earliest date on which any of the following occurs: (i) all Registrable
Securities covered by such Registration Statement have ceased to be Registrable Securities and (ii)
there are no longer any Registrable Securities outstanding (the “Effectiveness Period”). Subject
to Section 2.3, upon the occurrence of any event that would cause the Registration
Statement or the prospectus contained therein (i) to contain an untrue statement of material fact
or omit to state any material fact necessary to make the statements therein not misleading or (ii)
not to be effective and usable for the resale of all or part of the Registrable Securities by the
Holders, Seller shall promptly file an appropriate amendment to the Registration Statement curing
such defect, and, if SEC review is required, use its commercially reasonable efforts to cause such
amendment to be declared effective as soon as practicable. Seller shall prepare and file with the
SEC such amendments and post-effective amendments to the Registration Statement as may be necessary
to keep such Registration Statement effective during the Effective Period; cause the 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 to comply fully with the rules and regulations under the
Securities Act in a timely manner; and comply with the
provisions of the Securities Act with respect to the disposition of all securities covered by
the Registration Statement during the Effectiveness Period.

          (c) Subject to Section 2.3, a Registration Statement when effective will comply as to
form in all material respects with all applicable requirements of the Securities Act

3

 

and the
Exchange Act and will not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading (and, in the case of any prospectus contained in such Registration Statement, in the
light of the circumstances under which a statement is made). As soon as practicable following the
date that a Registration Statement becomes effective, but in any event within two (2) Business Days
of such date, Seller shall provide Purchaser with written notice of the effectiveness of such
Registration Statement.

     Section 2.2 Piggyback Rights.

          (a) Participation. If at any time Seller proposes to file (i) a shelf registration
statement other than a Registration Statement contemplated by Section 2.1, (ii) a
prospectus supplement to an effective shelf registration statement, other than a Registration
Statement contemplated by Section 2.1, and Holders may be included without the filing of a
post-effective amendment thereto that requires Seller to request acceleration of the same from the
SEC, or (iii) a registration statement, other than a shelf registration statement, in any case, for
the sale of Preferred Stock or Common Stock in an Underwritten Offering for its own account and/or
another Person, then as soon as practicable following the engagement of counsel by Seller to
prepare the documents to be used in connection with an Underwritten Offering, Seller shall give
written notice of such proposed Underwritten Offering to each Holder holding outstanding
Registrable Securities and such notice shall offer such Holder the opportunity to include in such
Underwritten Offering such number of Registrable Securities (the “Included Registrable Securities”)
as each such Holder may request in writing; provided, however, that if Seller has been advised by
the Managing Underwriter that the inclusion of Registrable Securities for sale for the benefit of
the Holders will have an adverse effect on the price, timing (other than by reason of the notice
periods set forth herein) or distribution of the Preferred Stock or Common Stock in the
Underwritten Offering, then (a) Seller shall not be required to offer such opportunity to the
Holders, in which case Seller shall provide the Holders written advisement of their exclusion
(which notice need not include any explanation of the reasons for the exclusion) from the
Underwritten Offering no later than 24 hours after the pricing of the Underwritten Offering, or (b)
if any Registrable Securities can be included in the Underwritten Offering in the opinion of the
Managing Underwriter, then the amount of Registrable Securities to be offered for the accounts of
Holders shall be determined based on the provisions of Section 2.2(b), in which case Seller
shall provide the Holders written advisement of their reduced participation (which notice need not
include any explanation of the reasons for the reduced participation) in the Underwritten Offering
no later than 24 hours after the pricing of the Underwritten Offering. Any notice required to be
provided in this Section 2.2(a) to Holders shall be provided on a Business Day pursuant to
Section 3.1 hereof and receipt of such notice shall be confirmed by the Holder (provided
that the failure of the Holder to confirm receipt shall not affect the validity or timing of
delivery of such notice). Each such Holder shall have two (2) Business Days (or one
(1) Business Day in connection with any overnight or bought Underwritten Offering) after
written notice has been delivered to request in writing the inclusion of Registrable Securities in
the Underwritten Offering. If no written request for inclusion from a Holder is received within
the specified time, each such Holder shall have no further right to participate in such
Underwritten Offering. If, at any time after giving written notice of its intention to undertake
an Underwritten Offering and prior to the closing of such Underwritten Offering, Seller shall

4

 

determine for any reason not to undertake or to delay such Underwritten Offering, Seller may, at
its election, give written notice of such determination to the Selling Holders and, (x) in the case
of a determination not to undertake such Underwritten Offering, shall be relieved of its obligation
to sell any Included Registrable Securities in connection with such terminated Underwritten
Offering, and (y) in the case of a determination to delay such Underwritten Offering, shall be
permitted to delay offering any Included Registrable Securities for the same period as the delay in
the Underwritten Offering. Any Selling Holder shall have the right to withdraw such Selling
Holder’s request for inclusion of such Selling Holder’s Registrable Securities in such Underwritten
Offering by giving written notice to Seller of such withdrawal at least one Business Day prior to
the time of pricing of such Underwritten Offering.

          (b) Priority. If the Managing Underwriter or Underwriters of any proposed
Underwritten Offering of Preferred Stock or Common Stock included in an Underwritten Offering
involving Included Registrable Securities advises Seller that the total amount of Registrable
Securities that the Selling Holders and any other Persons intend to include in such offering
exceeds the number that can be sold in such offering without being likely to have an adverse effect
on the price, timing (other than by reason of the notice periods set forth herein) or distribution
of the Preferred Stock or Common Stock offered, then the Preferred Stock and Common Stock to be
included in such Underwritten Offering shall include the number of Registrable Securities that such
Managing Underwriter or Underwriters advises Seller can be sold without having such adverse effect,
with such number to be allocated (i) first, to Seller and (ii) second, pro rata among the Selling
Holders who have requested participation in such Underwritten Offering and any other holder of
securities of Seller having rights of registration on parity with the Registrable Securities (the
“Parity Securities”). The pro rata allocations for each Selling Holder who have requested
participation in such Underwritten Offering shall be the product of (a) the aggregate number of
Registrable Securities proposed to be sold by all Selling Holders in such Underwritten Offering
multiplied by (b) the fraction derived by dividing (x) the number of Registrable Securities owned
on the Closing Date by such Selling Holder by (y) the aggregate number of Registrable Securities
owned on the Closing Date by all Selling Holders and holders of Parity Securities participating in
the Underwritten Offering.

          (c) Termination of Piggyback Registration Rights. Each Holder’s rights under
Section 2.2 shall terminate upon such Holder ceasing to hold at least 1,000,000 of the then
outstanding Registrable Securities.

     Section 2.3 Delay Rights.

     Notwithstanding anything to the contrary contained herein, Seller may, upon written notice to
any Selling Holder whose Registrable Securities are included in a Registration Statement or other
registration statement contemplated by this Agreement, suspend such Selling Holder’s use of any
prospectus which is a part of a Registration Statement or other registration
statement (in which event the Selling Holder shall discontinue sales of the Registrable
Securities pursuant to such Registration Statement or other registration statement but may settle
any previously made sales of Registrable Securities) if (i) Seller is pursuing an acquisition,
merger, reorganization, disposition or other similar transaction and Seller determines in good
faith that Seller’s ability to pursue or consummate such a transaction would be materially
adversely affected by any required disclosure of such transaction in a Registration Statement or
other

5

 

registration statement; (ii) Seller has experienced some other material non-public event the
disclosure of which at such time, in the good faith judgment of the Board of Directors of Seller,
would materially and adversely affect Seller; or (iii) Seller would be required to prepare and file
any financial statements (other than those it customarily prepares or before it customarily files
such financial statements); provided, however, that in no event shall the Selling Holders be
suspended from selling Registrable Securities pursuant to a Registration Statement or other
registration statement for a period that exceeds an aggregate of 45 days in any 180-day period or
90 days in any 365-day period, in each case, exclusive of days covered by any lock-up agreement
executed by Purchaser in connection with any Underwritten Offering. Upon disclosure of such
information or the termination of the condition described above, Seller shall provide prompt
written notice to the Selling Holders whose Registrable Securities are included in a Registration
Statement, and shall promptly terminate any suspension of sales it has put into effect and shall
take such other reasonable actions to permit registered sales of Registrable Securities as
contemplated in this Agreement.

     Section 2.4 Underwritten Offerings. In the event that one or more Holders elects to
dispose of at least 1,000,000 Registrable Securities under a Registration Statement pursuant to an
Underwritten Offering, Seller shall, upon request by such Holders, retain underwriters in order to
permit such Holders to effect such sale though an Underwritten Offering; provided, that Seller
shall not be required to effect more than three Underwritten Offerings pursuant to this Section
2.4 and the Holders shall be limited to one such request in any six-month period. In
connection with any Underwritten Offering under this Agreement, the holders of a majority of the
Registrable Securities being disposed of pursuant to the Underwritten Offering shall be entitled to
select the Managing Underwriter or Underwriters for such Underwritten Offering, subject to the
consent of Seller, which shall not be unreasonably withheld, delayed or conditioned. In connection
with an Underwritten Offering contemplated by this Agreement in which a Selling Holder
participates, each Selling Holder and Seller shall be obligated to enter into an underwriting
agreement that contains such representations, covenants, indemnities and other rights and
obligations as are customary in underwriting agreements for firm commitment offerings of
securities. No Selling Holder may participate in such Underwritten Offering unless such Selling
Holder agrees to sell its Registrable Securities on the basis provided in such underwriting
agreement and completes and executes all questionnaires, powers of attorney and other documents
reasonably required under the terms of such underwriting agreement. Each Selling Holder may, at
its option, require that any or all of the representations and warranties by, and the other
agreements on the part of, Seller to and for the benefit of such underwriters also be made to and
for such Selling Holder’s benefit and that any or all of the conditions precedent to the
obligations of such underwriters under such underwriting agreement also be conditions precedent to
its obligations. No Selling Holder shall be required to make any representations or warranties to
or agreements with Seller or the underwriters other than representations, warranties or agreements
regarding the identity of such
Selling Holder, its authority to enter into such underwriting agreement and to sell, and its
ownership of, the securities being registered on its behalf, its intended method of distribution
and any other representation required by Law. If any Selling Holder disapproves of the terms of an
underwriting, such Selling Holder may elect to withdraw therefrom by notice to Seller and the
Managing Underwriter; provided, however, that such withdrawal must be made at least one Business
Day prior to the time of pricing of such

6

 

Underwritten Offering. No such withdrawal or abandonment
shall affect Seller’s obligation to pay Registration Expenses.

     Section 2.5 Sale Procedures. In connection with its obligations under this
Article 2, Seller will, as expeditiously as possible:

          (a) subject to Section 2.3, prepare and file with the SEC such amendments and
supplements to, and replacements of, a Registration Statement and the prospectus used in connection
therewith as may be necessary to keep such Registration Statement effective for the Effectiveness
Period and as may be necessary to comply with the provisions of the Securities Act with respect to
the disposition of all Registrable Securities covered by such Registration Statement;

          (b) if a prospectus supplement will be used in connection with the marketing of an
Underwritten Offering from a Registration Statement and the Managing Underwriter at any time shall
notify Seller in writing that, in the sole judgment of such Managing Underwriter, inclusion of
detailed information to be used in such prospectus supplement is of material importance to the
success of the Underwritten Offering of such Registrable Securities, Seller shall use its
commercially reasonable efforts to include such information in such prospectus supplement;

          (c) furnish to each Selling Holder (i) before filing a Registration Statement or any other
registration statement contemplated by this Agreement or any supplement or amendment thereto,
copies of reasonably complete drafts of all such documents proposed to be filed (including
exhibits), and provide each such Selling Holder the opportunity to object to any information
pertaining to such Selling Holder and its plan of distribution that is contained therein and make
the corrections reasonably requested by such Selling Holder with respect to such information prior
to filing such Registration Statement or such other registration statement or supplement or
amendment thereto, and (ii) such number of copies of such Registration Statement or such other
registration statement and the prospectus included therein and any supplements and amendments
thereto as such Selling Holder may reasonably request in order to facilitate the public sale or
other disposition of the Registrable Securities covered by such Registration Statement or other
registration statement;

          (d) if applicable, use its commercially reasonable efforts to register or qualify the
Registrable Securities covered by a Registration Statement or any other registration statement
contemplated by this Agreement under the securities or blue sky laws of such jurisdictions as the
Selling Holders or, in the case of an Underwritten Offering, the Managing Underwriter, shall
reasonably request; provided, however, that Seller will not be required to qualify generally to
transact business in any jurisdiction where it is not then required to so qualify or to take any
action that would subject it to general service of process in any such jurisdiction where it
is not then so subject;

          (e) promptly notify each Selling Holder, at any time when a prospectus relating thereto is
required to be delivered by any of them under the Securities Act, of (i) the filing of a
Registration Statement or any other registration statement contemplated by this Agreement or any
prospectus or prospectus supplement to be used in connection therewith, or

7

 

any amendment or
supplement thereto, and, with respect to such Registration Statement or any other registration
statement or any post-effective amendment thereto, when the same has become effective; and (ii) the
receipt of any written comments from the SEC with respect to any filing referred to in clause
(i) of this Section 2.5(e) and any written request by the SEC for amendments or
supplements to a Registration Statement or any other registration statement or any prospectus or
prospectus supplement thereto;

          (f) immediately notify each Selling Holder, at any time when a prospectus relating thereto is
required to be delivered under the Securities Act, of (i) the prospectus or prospectus supplement
contained in a Registration Statement or any other registration statement contemplated by this
Agreement, as then in effect, including an untrue statement of a material fact or omitting to state
any material fact required to be stated therein or necessary to make the statements therein not
misleading (in the case of any prospectus contained therein, in the light of the circumstances
under which a statement is made); (ii) the issuance or threat of issuance by the SEC of any stop
order suspending the effectiveness of a Registration Statement or any other registration statement
contemplated by this Agreement, or the initiation of any proceedings for that purpose; or (iii) the
receipt by Seller of any notification with respect to the suspension of the qualification of any
Registrable Securities for sale under the applicable securities or blue sky laws of any
jurisdiction. Subject to Section 2.3, following the provision of such notice, Seller
agrees to use commercially reasonable efforts to, as promptly as practicable, amend or supplement
the prospectus or prospectus supplement or take other appropriate action so that the prospectus or
prospectus supplement does not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing and to take such other commercially
reasonable action as is necessary to remove a stop order, suspension, threat thereof or proceedings
related thereto;

          (g) subject to appropriate confidentiality obligations, furnish to each Selling Holder copies
of any and all transmittal letters or other correspondence with the SEC or any other governmental
agency or self-regulatory body or other body having jurisdiction (including any domestic or foreign
securities exchange) relating to such offering of Registrable Securities;

          (h) in the case of an Underwritten Offering, use commercially reasonable efforts to furnish
upon request, (i) an opinion of counsel for Seller dated the date of the closing under the
underwriting agreement, and (ii) a “cold comfort” letter, dated the pricing date of such
Underwritten Offering and a letter of like kind dated the date of the closing under the
underwriting agreement, in each case, signed by the independent public accountants who have
certified Seller’s financial statements included or incorporated by reference into the applicable
registration statement, and each of the opinion and the “cold comfort” letter shall be in customary
form and covering substantially the same matters with respect to such registration
statement (and the prospectus and any prospectus supplement included therein) as have been
customarily covered in opinions of issuer’s counsel and in accountants’ letters delivered to the
underwriters in Underwritten Offerings of securities by Seller;

          (i) otherwise use its commercially reasonable efforts to comply with all applicable rules and
regulations of the SEC, and make available to its security holders, as soon as

8

 

reasonably
practicable, an earnings statement, which earnings statement shall satisfy the provisions of
Section 11(a) of the Securities Act and Rule 158 promulgated thereunder;

          (j) make available to the appropriate representatives of the Managing Underwriter and Selling
Holders access to such information and Seller personnel as is reasonable and customary to enable
such parties to establish a due diligence defense under the Securities Act, provided that Seller
need not disclose any non-public information to any such representative unless and until such
representative has entered into a confidentiality agreement with Seller reasonably satisfactory to
Seller;

          (k) cause all such Registrable Securities registered pursuant to this Agreement to be listed
on each securities exchange or nationally recognized quotation system on which similar securities
issued by Seller are then listed;

          (l) use its commercially reasonable efforts to cause the Registrable Securities to be
registered with or approved by such other governmental agencies or authorities as may be necessary
by virtue of the business and operations of Seller to enable the Selling Holders to consummate the
disposition of such Registrable Securities;

          (m) in connection with any Underwritten Offering provided for hereunder, participate in “road
shows” and other marketing efforts as reasonably requested by the Selling Holders, provided that
Seller shall not be required to participate in more than two road shows or similar marketing
efforts in any 12-month period;

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

          (o) enter into customary agreements and take such other actions as are reasonably requested by
the Selling Holders or the underwriters, if any, in order to expedite or facilitate the disposition
of such Registrable Securities.

     Each Selling Holder, upon receipt of notice from Seller of the happening of any event of the
kind described in subsection (e) of this Section 2.5, shall forthwith discontinue
offers and sales of the Registrable Securities by means of a prospectus or prospectus supplement
until such Selling Holder’s receipt of the copies of the supplemented or amended prospectus
contemplated by subsection (e) of this Section 2.5 or until it is advised in
writing by Seller that the use of the prospectus may be resumed and has received copies of any
additional or supplemental filings incorporated by reference in the prospectus, and, if so directed
by Seller, such Selling Holder will, or will request the managing underwriter or underwriters, if
any, to deliver to Seller (at Seller’s expense) all copies in their possession or control, other
than permanent file copies then in such Selling Holder’s possession, of the prospectus covering
such Registrable Securities current at the time of receipt of such notice.

     Section 2.6 Cooperation by Holders. Seller shall have no obligation to include
Registrable Securities of a Holder in a Registration Statement or in an Underwritten Offering
pursuant to Section 2.2(a) who has failed to timely furnish such information concerning
such Holder that Seller determines, after consultation with its counsel, is reasonably required in
order

9

 

for the registration statement or prospectus supplement, as applicable, to comply with the
Securities Act.

     Section 2.7 Restrictions on Public Sale by Holders of Registrable Securities. For so
long as Registrable Securities in the aggregate represent more than 10% of the outstanding Common
Stock of Seller, each Holder of Registrable Securities agrees to enter into a customary letter
agreement with underwriters providing such Holder will not effect any public sale or distribution
of the Registrable Securities during the 90 calendar day period beginning on the date of a
prospectus or prospectus supplement filed with the SEC with respect to the pricing of an
Underwritten Offering, provided that (i) the duration of the foregoing restrictions shall be no
longer than the duration of the shortest restriction generally imposed by the underwriters on
Seller or the officers, directors or any other stockholder of Seller on whom a restriction is
imposed and (ii) the restrictions set forth in this Section 2.7 shall not apply to any
Registrable Securities that are included in such Underwritten Offering by such Holder.
Notwithstanding the foregoing, nothing in this Section 2.7 shall restrict the ability of
any Holder from disposing of its Registrable Securities pursuant to a Rule 10b5-1 plan.

     Section 2.8 Expenses.

          (a) Expenses. Seller will pay all Registration Expenses, including, in the case of an
Underwritten Offering, whether or not any sale is made pursuant to such Underwritten Offering.
Each Selling Holder shall pay its pro rata share of all Selling Expenses in connection with any
sale of its Registrable Securities hereunder, and Seller shall not be responsible for any Selling
Expenses. In addition, except as otherwise provided in Section 2.8 and Section 2.9
hereof, Seller shall not be responsible for legal fees incurred by Holders in connection with the
exercise of such Holders’ rights hereunder.

          (b) Certain Definitions. “Registration Expenses” means all reasonable expenses
incident to Seller’s performance under or compliance with this Agreement to effect the registration
of Registrable Securities on a Registration Statement pursuant to Section 2.1 or an
Underwritten Offering covered under this Agreement, and the disposition of such Registrable
Securities, including, without limitation, all registration, filing, securities exchange listing
and NYSE fees, all registration, filing, qualification and other fees and expenses of complying
with securities or blue sky laws, fees of the Financial Industry Regulatory Authority, Inc., fees
of transfer agents and registrars, all word processing, duplicating and printing expenses, any
transfer taxes and the fees and disbursements of counsel and independent public accountants for
Seller, including the expenses of any special audits or “cold comfort” letters required by or
incident to such performance and compliance. “Selling Expenses” means all underwriting fees,
discounts and selling commissions or similar fees or arrangements and transfer taxes allocable to
the sale of the Registrable Securities.

     Section 2.9 Indemnification.

          (a) By Seller. In the event of a registration of any Registrable Securities under the
Securities Act pursuant to this Agreement, Seller will indemnify and hold harmless each Selling
Holder thereunder, its directors, officers, employees and agents and each Person, if any, who
controls such Selling Holder within the meaning of the Securities Act and the

10

 

Exchange Act, and its
directors, officers, employees or agents (collectively, the “Selling Holder Indemnified Persons”),
against any losses, claims, damages, expenses or liabilities (including reasonable attorneys’ fees
and expenses) (collectively, “Losses”), joint or several, to which such Selling Holder Indemnified
Person may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such
Losses (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out
of or are based upon any untrue statement or alleged untrue statement of any material fact (in the
case of any prospectus, in light of the circumstances under which such statement is made) contained
in a Registration Statement or any other registration statement contemplated by this Agreement, any
preliminary prospectus, prospectus supplement, free writing prospectus or final prospectus
contained therein, or any amendment or supplement thereof, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein (in the case of a prospectus, in light of the
circumstances under which they were made) not misleading, and will reimburse each such Selling
Holder Indemnified Person for any legal or other expenses reasonably incurred by them in connection
with investigating or defending any such Loss or actions or proceedings; provided, however, that
Seller will not be liable in any such case if and to the extent that any such Loss arises out of or
is based upon an untrue statement or alleged untrue statement or omission or alleged omission so
made in conformity with information furnished by such Selling Holder Indemnified Person in writing
specifically for use in a Registration Statement or such other registration statement, preliminary
prospectus, free writing prospectus or prospectus supplement, as applicable, it being understood
that a Selling Holder will only be required to furnish information regarding its legal name,
address, the number of securities being registered on its behalf and such other information as may
be required by Law. Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of such Selling Holder Indemnified Person, and shall survive the
transfer of such securities by such Selling Holder.

          (b) By Each Selling Holder. Each Selling Holder agrees severally and not jointly to
indemnify and hold harmless Seller, its directors, officers, employees and agents and each Person,
if any, who controls Seller within the meaning of the Securities Act or of the Exchange Act, and
its directors, officers, employees and agents, to the same extent as the foregoing indemnity from
Seller to the Selling Holders, but only with respect to information regarding such Selling Holder
furnished in writing by or on behalf of such Selling Holder expressly for inclusion in a
Registration Statement or any other registration statement contemplated by this Agreement, any
preliminary prospectus, prospectus supplement, free writing prospectus or final prospectus
contained therein, or any amendment or supplement thereof; provided, however, that the liability of
each Selling Holder shall not be greater in amount than the dollar amount of the proceeds (net of
any Selling Expenses) received by such Selling Holder from the sale of the Registrable Securities
giving rise to such indemnification.

          (c) Notice. Promptly after receipt by an indemnified party hereunder of notice of the
commencement of any action, such indemnified party shall, if a claim in respect
thereof is to be made against the indemnifying party hereunder, notify the indemnifying party
in writing thereof, but the omission so to notify the indemnifying party shall not relieve it from
any liability that it may have to any indemnified party other than under this Section 2.9
except to the extent that the indemnifying party is prejudiced by such omission. In any action
brought against

11

 

any indemnified party, it shall notify the indemnifying party of the commencement
thereof. The indemnifying party shall be entitled to participate in and, to the extent it shall
wish, to assume and undertake the defense thereof with counsel reasonably satisfactory to such
indemnified party and, after notice from the indemnifying party to such indemnified party of its
election so to assume and undertake the defense thereof, the indemnifying party shall not be liable
to such indemnified party under this Section 2.9 for any legal expenses subsequently
incurred by such indemnified party in connection with the defense thereof other than reasonable
costs of investigation and of liaison with counsel so selected; provided, however, that, (i) if the
indemnifying party has failed to assume the defense or employ counsel reasonably acceptable to the
indemnified party or (ii) if the defendants in any such action include both the indemnified party
and the indemnifying party and counsel to the indemnified party shall have concluded that there may
be reasonable defenses available to the indemnified party that are different from or additional to
those available to the indemnifying party, or if the interests of the indemnified party reasonably
may be deemed to conflict with the interests of the indemnifying party, then the indemnified party
shall have the right to select a separate counsel, with the reasonable out-of-pocket expenses and
fees of such separate counsel and other reasonable out-of-pocket expenses related to such
participation to be reimbursed by the indemnifying party as incurred. Notwithstanding any other
provision of this Agreement, no indemnified party shall settle any action brought against it with
respect to which such indemnified party is entitled to indemnification hereunder without the
consent of the indemnifying party, unless the settlement thereof includes a complete release from
all liability of, the indemnifying party.

          (d) Contribution. If the indemnification provided for in this Section 2.9 is
held by a court or government agency of competent jurisdiction to be unavailable to any indemnified
party, then each such indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result of such Loss in such
proportion as is appropriate to reflect the relative fault of the indemnifying party on the one
hand and of such indemnified party on the other in connection with the statements or omissions that
resulted in such Losses, as well as any other relevant equitable considerations; provided, however,
that in no event shall such Selling Holder be required to contribute an aggregate amount in excess
of the lesser of (A) the amount which such Selling Holder would have been obligated to pay under
Section 2.9(b) if such indemnity was available to the indemnified party and (B) the dollar
amount of proceeds (net of Selling Expenses) received by such Selling Holder from the sale of
Registrable Securities giving rise to such indemnification. The relative fault of the indemnifying
party on the one hand and the indemnified party 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 has been made by, or relates to, information
supplied by such party, and the Parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The Parties agree that it would not
be just and equitable if contributions pursuant to this paragraph were to be determined by pro rata
allocation or by any other method of allocation that does not take account of the equitable
considerations referred to
herein. The amount paid by an indemnified party as a result of the Losses referred to in the
first sentence of this paragraph shall be deemed to include any legal and other expenses reasonably
incurred by such indemnified party in connection with investigating or defending any Loss that is
the subject of this paragraph. No person guilty of fraudulent misrepresentation (within the

12

 

meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person
who is not guilty of such fraudulent misrepresentation.

          (e) Other Indemnification. The provisions of this Section 2.9 shall be in
addition to any other rights to indemnification or contribution that an indemnified party may have
pursuant to law, equity, contract or otherwise.

     Section 2.10 Rule 144 Reporting. With a view to making available the benefits of
certain rules and regulations of the SEC that may permit the sale of the Registrable Securities to
the public without registration, Seller agrees to use its commercially reasonable efforts to:

          (a) make and keep public information regarding Seller available, as those terms are understood
and defined in Rule 144 under the Securities Act, at all times from and after the date hereof;

          (b) file with the SEC in a timely manner all reports and other documents required of Seller
under the Securities Act and the Exchange Act at all times from and after the date hereof; and

          (c) so long as a Holder owns any Registrable Securities, furnish, unless otherwise available
via EDGAR, to such Holder forthwith a copy of the most recent annual or quarterly report of Seller,
and such other reports and documents so filed as such Seller may reasonably request in availing
itself of any rule or regulation of the SEC allowing such Seller to sell any such securities
without registration.

     Section 2.11 Transfer or Assignment of Registration Rights. The rights under this
Article 2 may be not transferred or assigned by Purchaser except to controlled Affiliates
of Purchaser and provided that (a) Seller is given written notice prior to any said transfer or
assignment, stating the name and address of each such transferee and identifying the securities
with respect to which such registration rights are being transferred or assigned, and (b) each such
transferee assumes in writing responsibility for its portion of the obligations of Purchaser under
this Agreement.

ARTICLE 3

MISCELLANEOUS

     Section 3.1 Communications. All notices that are required or may be given pursuant to this
Agreement shall be sufficient in all respects if given in writing. Any such notice shall be deemed
given (i) when made, if made by hand delivery, and upon confirmation of receipt, if made by
facsimile, (ii) one Business Day
after being deposited with a next-day courier, postage prepaid, or (iii) three Business Days after
being sent certified or registered mail, return receipt requested, postage prepaid, in each case
addressed as follows:

     If to Seller, to:

McMoRan Exploration Co.

1615 Poydras Street

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New Orleans, Louisiana 70112

Fax: (504) 585-3513

Attention: General Counsel

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

Andrews Kurth LLP

600 Travis Street, Suite 4200

Houston, Texas 77002

Fax: (713) 238-7130

Attention: Michael O’Leary

     If to Purchaser, to:

Freeport-McMoRan Preferred LLC

c/o Freeport-McMoRan Copper & Gold Inc.

One North Central Avenue

Phoenix, Arizona 85004-4414

Fax: (602) 366-7691

Attention: General Counsel

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

Wachtell, Lipton, Rosen & Katz

51 West 52nd Street

New York, New York 10019

Fax: (212) 403-2000

Attention: Edward D. Herlihy

 David E. Shapiro

     If to an assignee of Purchaser, to such Holder at the address provided pursuant to Section
2.11 above.

     Either Party may change its address for notice by notice to the other in the manner set forth
above. All notices shall be deemed to have been duly given at the time of receipt by the Party to
which such notice is addressed.

     Section 3.2 Successor and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and
permitted assigns of each of the Parties, including subsequent Holders of Registrable Securities to
the extent permitted herein.

     Section 3.3 Recapitalization, Exchanges, Etc. Affecting the Registrable Securities.
The provisions of this Agreement shall apply to the full extent set forth herein with respect to
any and all securities of Seller or any successor or assign of Seller (whether by merger,
consolidation, sale of assets or otherwise) that may be issued in respect of, in exchange for or in
substitution of, the Registrable Securities, and shall be appropriately adjusted for combinations,

14

 

stock splits, recapitalizations, pro rata distributions of securities and the like occurring after
the date of this Agreement.

     Section 3.4 Aggregation of Registrable Securities. All Registrable Securities held
or acquired by Persons who are Affiliates of one another shall be aggregated together for the
purpose of determining the availability of any rights and applicability of any obligations under
this Agreement.

     Section 3.5 Specific Performance. Damages in the event of breach of this Agreement by
a Party may be difficult, if not impossible, to ascertain, and it is therefore agreed that each
such Person, in addition to and without limiting any other remedy or right it may have, will have
the right to an injunction or other equitable relief in any court of competent jurisdiction,
enjoining any such breach, and enforcing specifically the terms and provisions hereof, and each of
the Parties hereto hereby waives any and all defenses it may have on the ground of lack of
jurisdiction or competence of the court to grant such an injunction or other equitable relief. The
existence of this right will not preclude any such Person from pursuing any other rights and
remedies at law or in equity that such Person may have.

     Section 3.6 Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed an original instrument, but all such counterparts together shall constitute but one
agreement. Facsimiles of signatures or signatures delivered in portable document format (.pdf)
will be deemed to be originals.

     Section 3.7 Headings. The headings in this Agreement are for convenience of reference
only and shall not limit or otherwise affect the meaning hereof.

     Section 3.8 Governing Law.

          (a) This Agreement and the legal relations between the Parties shall be
governed by and construed in accordance with the Laws of the State of Delaware, United States
of America without regard to principles of conflicts of laws that would direct the application of
the Laws of another jurisdiction.

          (b) Any action brought in connection with this Agreement shall be brought in the federal or
state courts located in the City of Wilmington, Delaware. The Parties hereto hereby (i)
irrevocably consent to the personal jurisdiction and venue of such courts, and (ii) waive any claim
(by way of motion, as a defense or otherwise) of improper venue, that such parties are not subject
personally to the jurisdiction of such court, that such courts are an inconvenient forum or that
this Agreement or the subject matter may not be enforced in or by such court.

     Section 3.9 Severability of Provisions. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof or affecting or impairing the validity or enforceability of such provision in any other
jurisdiction.

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     Section 3.10 Entire Agreement. This Agreement constitutes the entire agreement
between the Parties pertaining to the subject matter hereof, and supersede all prior agreements,
understandings, negotiations and discussions, whether oral or written, of the Parties pertaining to
the subject matter hereof.

     Section 3.11 Amendment. This Agreement may be amended only by means of a written
amendment signed by Seller and the Holders of a majority of the then outstanding Registrable
Securities; provided, however, that no such amendment shall materially and adversely affect the
rights of any Holder hereunder without the consent of such Holder.

     Section 3.12 No Presumption. If any claim is made by a Party relating to any
conflict, omission, or ambiguity in this Agreement, no presumption or burden of proof or persuasion
shall be implied by virtue of the fact that this Agreement was prepared by or at the request of a
particular Party or its counsel. Each Party has been represented by its own counsel in connection
with the negotiation and preparation of this Agreement and, consequently, each Party hereby waives
the application of any rule of Law that would otherwise be applicable in connection with the
interpretation of this Agreement, including but not limited to any rule of Law to the effect that
any provision of this Agreement will be interpreted or construed against the Party whose counsel
drafted that provision.

     Section 3.13 Obligations Limited to Parties to Agreement. Each of the Parties hereto
covenants, agrees and acknowledges that no Person other than Purchaser (and its permitted
assignees) and Seller shall have any obligation hereunder and
that, notwithstanding that Purchaser is a limited liability company, no recourse under this
Agreement or under any documents or instruments delivered in connection herewith or therewith shall
be had against any former, current or future director, officer, employee, agent, manager,
stockholder or Affiliate of Purchaser or any former, current or future director, officer, employee,
agent, general or limited partner, manager, member, stockholder or Affiliate of any of the
foregoing, whether by the enforcement of any assessment or by any legal or equitable proceeding, or
by virtue of any applicable Law, it being expressly agreed and acknowledged that no personal
liability whatsoever shall attach to, be imposed on or otherwise by incurred by any former, current
or future director, officer, employee, agent, general or limited partner, manager, member,
stockholder or Affiliate of Purchaser or any former, current or future director, officer, employee,
agent, general or limited partner, manager, member, stockholder or Affiliate of any of the
foregoing, as such, for any obligations of Purchaser under this Agreement or any documents or
instruments delivered in connection herewith or therewith or for any claim based on, in respect of
or by reason of such obligation or its creation, except in each case for any assignee of Purchaser
hereunder.

     Section 3.14 Interpretation. Article and Section references to this Agreement, unless
otherwise specified. All references to instruments, documents, contracts and agreements are
references to such instruments, documents, contracts and agreements as the same may be amended,
supplemented and otherwise modified from time to time, unless otherwise specified. The word
“including” shall mean “including but not limited to.” Whenever any determination, consent or
approval is to be made or given by Seller under this Agreement, such action shall be in Seller’s
sole discretion unless otherwise specified.

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[Next page is the signature page.]

17

 

     IN WITNESS WHEREOF, this Agreement has been signed by each of the Parties as of the date first
above written.

	 	 	 	 	 
	 	McMoRan EXPLORATION CO.

 	 
	 	By:  	/s/ Kathleen L. Quirk
 	 
	 	 	Name:  	Kathleen L. Quirk 	 
	 	 	Title:  	Senior Vice President & Treasurer 	 
	 
	 	FREEPORT- McMoRan PREFERRED LLC

By: FREEPORT-McMoRAN COPPER &
 GOLD, INC., its
sole member

 	 
	 	By:  	/s/ Richard C. Adkerson
 	 
	 	 	Name:  	Richard C. Adkerson 	 
	 	 	Title:  	President & Chief Executive Officer 	 
	 

[Signature Page to Registration Rights Agreement]

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