Document:

exv10w1

Exhibit 10.1

REGISTRATION RIGHTS AGREEMENT

dated as of

February 9, 2010

among

WILLIAMS PARTNERS L.P.

and

BARCLAYS CAPITAL INC.

CITIGROUP GLOBAL MARKETS INC.

on behalf of themselves and the Initial Purchasers listed on Schedule I hereto

 

 

     THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made and entered into as of February
9, 2010, among Williams Partners L.P. (the “Company”), a corporation duly organized and existing
under the laws of the State of Delaware, and Barclays Capital Inc. and Citigroup Global Markets
Inc., each acting on behalf of themselves and the several initial purchasers listed on Schedule I
hereto (the “Initial Purchasers”).

     This Agreement is made pursuant to the Purchase Agreement dated as of February 2, 2010, among
the Company and Barclays Capital Inc. and Citigroup Global Markets Inc., as representatives of the
Initial Purchasers (the “Purchase Agreement”), which provides for the sale by the Company to the
Initial Purchasers of $750,000,000 aggregate principal amount of its 3.800% Senior Notes due 2015
(the “2015 Notes”), $1,500,000,000 aggregate principal amount of its 5.250% Senior Notes due 2020
(the “2020 Notes”) and $1,250,000,000 aggregate principal amount of its 6.300% Senior Notes due
2040 (the “2040 Notes,” and together with the 2015 Notes and the 2020 Notes, the “Securities” and
each a “Series” of Securities.). The Securities are to be issued pursuant to the provisions of an
Indenture dated the date hereof (as amended, supplemented or otherwise modified from time to time,
the “Indenture”) by and among the Company and The Bank of New York Mellon Trust Company, N.A., as
trustee (the “Trustee”).

     In order to induce the Initial Purchasers to enter into the Purchase Agreement, the Company
has agreed to provide to each Initial Purchaser and its direct and indirect transferees the
registration rights with respect to the Securities set forth in this Agreement. The execution of
this Agreement is a condition to the closing under the Purchase Agreement.

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

     1. Definitions.

     As used in this Agreement, the following capitalized defined terms have the following
meanings:

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

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

     “2015 Notes” shall have the meaning set forth in the preamble.

     “2020 Notes” shall have the meaning set forth in the preamble.

     “2040 Notes” shall have the meaning set forth in the preamble.

     “Additional Interest” shall have the meaning set forth in Section 2(e).

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

     “Business Day” shall have the meaning set forth in Rule 13e-4(a)(3) under the 1934 Act.

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

 

 

     “Commission” shall mean the Securities and Exchange Commission.

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

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

     “Exchange Offer Registration” shall mean a registration under the 1933 Act effected pursuant
to Section 2(a) hereof.

     “Exchange Offer Registration Statement” shall mean a registration statement on Form S-4 (or,
if applicable, on another appropriate form) relating to an offering of Exchange Securities pursuant
to a Registered Exchange Offer and all amendments and supplements to such registration statement,
in each case including the Prospectus contained therein, all exhibits thereto and all material
incorporated by reference therein.

     “Exchange 2015 Notes” shall mean any securities issued by the Company to be offered to Holders
in exchange for 2015 Notes (pursuant to the Registered Exchange Offer or otherwise) pursuant to an
Exchange Offer Registration Statement, part of the same Series as the 2015 Notes and containing
terms identical to the 2015 Notes for which they are exchanged except that (i) interest thereon
shall accrue from the last date on which interest was paid on the 2015 Notes or, if no such
interest has been paid, from the date of issuance of the 2015 Notes, and (ii) the Exchange 2015
Notes will not contain the legend appearing on the face of the 2015 Notes in the form recited in
the Indenture and will not contain terms with respect to transfer restrictions or Additional
Interest.

     “Exchange 2020 Notes” shall mean any securities issued by the Company to be offered to Holders
in exchange for 2020 Notes (pursuant to the Registered Exchange Offer or otherwise) pursuant to an
Exchange Offer Registration Statement, part of the same Series as the 2020 Notes and containing
terms identical to the 2020 Notes for which they are exchanged except that (i) interest thereon
shall accrue from the last date on which interest was paid on the 2020 Notes or, if no such
interest has been paid, from the date of issuance of the 2020 Notes, and (ii) the Exchange 2020
Notes will not contain the legend appearing on the face of the 2020 Notes in the form recited in
the Indenture and will not contain terms with respect to transfer restrictions or Additional
Interest.

     “Exchange 2040 Notes” shall mean any securities issued by the Company to be offered to Holders
in exchange for 2040 Notes (pursuant to the Registered Exchange Offer or otherwise) pursuant to an
Exchange Offer Registration Statement, part of the same Series as the 2040 Notes and containing
terms identical to the 2040 Notes for which they are exchanged except that (i) interest thereon
shall accrue from the last date on which interest was paid on the 2040 Notes or, if no such
interest has been paid, from the date of issuance of the 2040 Notes, and (ii) the Exchange 2040
Notes will not contain the legend appearing on the face of the 2040 Notes in the form recited in
the Indenture and will not contain terms with respect to transfer restrictions or Additional
Interest.

     “Exchange Securities” shall mean the Exchange 2015 Notes, the Exchange 2020 Notes and the
Exchange 2040 Notes.

2

 

     “Holder” shall mean each Initial Purchaser, for so long as it owns any Transfer Restricted
Securities, and each of its successors, assigns and direct and indirect transferees who become
registered owners of Transfer Restricted Securities under the Indenture; provided that for purposes
of Sections 4 and 5 of this Agreement, the term “Holder” shall include Participating Broker-Dealers
(as defined in Section 4(a)).

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

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

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

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

     “Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of
outstanding Transfer Restricted Securities of any Series; provided that, for purposes of Section
6(b), whenever the consent or approval of Holders of a specified percentage of Transfer Restricted
Securities of any Series is required hereunder, Transfer Restricted Securities of such Series held
by the Company or any of its affiliates (as such term is defined in Rule 405 under the 1933 Act)
(other than the Initial Purchasers or subsequent Holders of Transfer Restricted Securities if such
subsequent Holders are deemed to be such affiliates solely by reason of their holding of such
Transfer Restricted Securities) shall not be considered outstanding and shall not be counted in
determining whether such consent or approval was given by the Holders of such required percentage
or amount.

     “Participant” shall have the meaning set forth in Section 5(a).

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

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

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

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

     “Registration Default” shall have the meaning set forth in Section 2(e).

     “Registered Exchange Offer” shall mean the exchange offer by the Company of Exchange
Securities for all Securities that are Transfer Restricted Securities pursuant to Section 2(a)
hereof.

3

 

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

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

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

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

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

     “Shelf Registration Statement” shall mean a “shelf” registration statement of the Company
pursuant to the provisions of Section 2(b) of this Agreement which covers all of the Transfer
Restricted Securities any Series (but no other securities unless approved by the Holders of a
majority of the aggregate principal amount of outstanding Transfer Restricted Securities of such
Series that are covered by such Shelf Registration Statement) on an appropriate form under Rule 415
under the 1933 Act, or any similar rule that may be adopted by the Commission, and all amendments
and supplements to such registration statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and all material incorporated by
reference therein.

4

 

     “TIA” shall have the meaning set forth in Section 3(l) hereof.

     “Transfer Restricted Securities” shall mean each outstanding Security until: (i) when in the
case of a Holder who was entitled to participate in the Registered Exchange Offer, an Exchange
Offer Registration Statement with respect to such Security shall have been declared effective under
the 1933 Act and either (a) such Security shall have been exchanged by a Person other than a
broker-dealer for an Exchange Security in the Registered Exchange Offer or (b) the Registered
Exchange Offer shall have been consummated and such Security was not tendered by the Holder thereof
in the Registered Exchange Offer; (ii) following the exchange by a broker-dealer in the Registered
Exchange Offer of a Security for an Exchange Security, the date on which such Exchange Security is
sold to a purchaser who receives from such broker-dealer on or prior to the date of such sale a
copy of the Prospectus contained in the Exchange Offer Registration Statement; (iii) the date on
which such Security has been effectively registered under the 1933 Act and disposed of in
accordance with the Shelf Registration Statement; or (iv) the date that is two years after the date
of this Agreement.

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

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

     “Underwritten Registration or Underwritten Offering” shall mean a registration in which
Transfer Restricted Securities are sold to an Underwriter for reoffering to the public.

     2. Registration under the 1933 Act.

     (a) To the extent not prohibited by any applicable law or applicable interpretation of
the Staff of the Commission, the Company shall (1) file an Exchange Offer Registration
Statement on or prior to 180 days after the Closing Date covering the offer by the Company
to the Holders to exchange all of the Transfer Restricted Securities of each Series for an
equal aggregate principal amount of Exchange Securities of such Series and (2) use its
commercially reasonable efforts to cause such Exchange Offer Registration Statement to be
declared effective on or prior to 270 days after the Closing Date. The Company shall use
its commercially reasonable efforts to have the Exchange Offer Registration Statement remain
effective until the closing of the Registered Exchange Offer. The Company shall commence
the Registered Exchange Offer promptly after the Exchange Offer Registration Statement has
been declared effective by the Commission and use its commercially reasonable efforts to
have the Registered Exchange Offer consummated (by issuing Exchange Securities of each
Series for all tendered, and not validly withdrawn Transfer Restricted Securities of such
Series) not later than 30 Business Days, or longer, if required by the federal securities
laws, after such effective date. The Company shall commence the Registered Exchange Offer
by mailing the related exchange offer Prospectus and accompanying documents to each Holder
stating, in addition to such other disclosures as are required by applicable law:

     (i) that the Registered Exchange Offer is being made pursuant to this
Registration Rights Agreement and that all Transfer Restricted Securities validly
tendered will be accepted for exchange;

5

 

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

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

     (iv) that Holders electing to have a Transfer Restricted Security exchanged
pursuant to the Registered Exchange Offer will be required to surrender such
Transfer Restricted Security, together with the enclosed letters of transmittal, to
the institution and at the address specified in the notice prior to the close of
business on the last Exchange Date; and

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

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

     (A) accept for exchange Transfer Restricted Securities or portions
thereof tendered and not validly withdrawn pursuant to the Registered
Exchange Offer; and

     (B) deliver, or cause to be delivered, to the Trustee for cancellation
all Transfer Restricted Securities or portions thereof so accepted for
exchange by the Company and issue and cause the Trustee to promptly
authenticate and deliver to each Holder an Exchange Security of the
applicable Series equal in aggregate principal amount to the aggregate
principal amount of the Transfer Restricted Securities of such Series
surrendered by such Holder.

     The Company shall use its commercially reasonable efforts to complete the Registered
Exchange Offer as provided above and shall comply with the applicable requirements of the
1933 Act, the 1934 Act and other applicable laws and regulations in connection with the
Registered Exchange Offer. The Registered Exchange Offer shall not be subject to any
conditions, other than that the Registered Exchange Offer does not violate applicable law or
any applicable interpretation of the Staff of the Commission. The Company shall inform the
Initial Purchasers of the names and addresses of the Holders to whom the Registered Exchange
Offer is made, and the Initial Purchasers shall have the right, subject to applicable law,
to contact such Holders and otherwise facilitate the tender of Transfer Restricted
Securities in the Registered Exchange Offer.

6

 

     If, during the period the Exchange Offer Registration Statement is effective, an event
occurs which makes any statement made in such Exchange Offer Registration Statement or the
related Prospectus untrue in any material respect or which requires the making of any
changes in such Exchange Offer Registration Statement or Prospectus in order to make the
statements therein not misleading, the Company shall use its commercially reasonable efforts
to, as promptly as practicable, prepare and file with the Commission a supplement or
post-effective amendment to the Exchange Offer Registration Statement or the related
Prospectus or any document incorporated therein by reference or file any other required
document so that, as thereafter delivered to the purchasers of the Transfer Restricted
Securities of any Series, such Prospectus will not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading. The Company
agrees to notify the Holders to suspend the exchange of the Transfer Restricted Securities
of such Series as promptly as practicable after the occurrence of such an event, and the
Holders hereby agree to suspend such exchange until the Company has amended or supplemented
the Prospectus to correct such misstatement or omission.

     (b) If (i) the Company is not permitted to consummate the Registered Exchange Offer
because the Registered Exchange Offer is not permitted by applicable law or applicable
interpretation of the Staff of the Commission; or (ii) any Holder of Transfer Restricted
Securities notifies the Company prior to the 20th day following the consummation of the
Registered Exchange Offer that: (A) it is prohibited by law or applicable interpretation of
the Staff of the Commission from participating in the Registered Exchange Offer, (B) it may
not resell the Exchange Securities acquired by it in the Registered Exchange Offer to the
public without delivering a Prospectus and the Prospectus contained in the Exchange Offer
Registration Statement is not appropriate or available for such resales or (C) it is a
broker-dealer and owns Securities acquired directly from the Company or an affiliate of the
Company, the Company shall (x) use its commercially reasonable efforts to file with the
Commission within 60 days after such filing obligation arises (or, if later, the date by
which the Company is obligated to file an Exchange Offer Registration Statement) a Shelf
Registration Statement providing for the resale by the Holders of Transfer Restricted
Securities of all of their Transfer Restricted Securities; provided, however, that no Holder
of Transfer Restricted Securities entitled to have its Transfer Restricted Securities
included in a Shelf Registration Statement shall be entitled to have its Transfer Restricted
Securities included in a Shelf Registration Statement if such Holder has failed to comply
with the paragraph immediately following clause (p) of Section 3 and (y) use its
commercially reasonable efforts to cause such Shelf Registration Statement to be declared
effective by the Commission or to become automatically effective in accordance with the
rules and regulations of the Commission on or prior to 180 days after such filing obligation
arises (or, if later, the date by which the Company is obligated to use its commercially
reasonable efforts to have the Exchange Offer Registration Statement declared effective).
If the Company is required to file a Shelf Registration Statement solely as a result of the
matters referred to in clause (ii) of the preceding sentence, the Company shall use it
commercially reasonable efforts to file and have declared effective by the Commission both
an Exchange Offer Registration Statement pursuant to Section 2(a) with respect to all
Transfer Restricted

7

 

Securities and a Shelf Registration Statement (which may be a combined Registration
Statement with the Exchange Offer Registration Statement) with respect to reoffers and
resales of Transfer Restricted Securities held by the Holders who must deliver the related
Prospectus. Subject to the following paragraph, the Company agrees to use its commercially
reasonable efforts to keep the Shelf Registration Statement continuously effective until the
date that is two years from the date of this Agreement or such shorter period that will
terminate when all of the Transfer Restricted Securities covered by the Shelf Registration
Statement have been sold pursuant to the Shelf Registration Statement or cease to be
Transfer Restricted Securities within the meaning of this Agreement. The Company further
agrees to supplement or amend the Shelf Registration Statement if required by the rules,
regulations or instructions applicable to the registration form used by the Company for such
Shelf Registration Statement, the 1933 Act or any other rules and regulations thereunder for
shelf registration or if reasonably requested by a Holder with respect to information
relating to such Holder, and to use its commercially reasonable efforts to cause any such
amendment to be declared effective by the Commission and such Shelf Registration Statement
to become usable as soon as thereafter practicable. The Company agrees to furnish to the
Holders of Transfer Restricted Securities copies of any such supplement or amendment
promptly after its being used or filed with the Commission.

     Notwithstanding anything to the contrary in this Agreement, the Company, upon advising
the Initial Purchasers and each Holder, may suspend the use of the Prospectus included in
any Shelf Registration Statement for periods of time not to exceed 30 consecutive days and
for no more than 60 days during any 365 day period in which such suspensions are in effect
(each such period, a “Suspension Period”) if (i) an event or circumstance occurs and is
continuing as a result of which the Shelf Registration Statement, the related Prospectus or
any document incorporated therein by reference as then amended or supplemented or proposed
to be filed would, in the good faith judgment of the Company, contain an untrue statement of
a material fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading, and
(ii)(A) the Company determines in its good faith judgment that the disclosure of such event
at such time would have a material adverse effect on the business, operations or prospects
of the Company or (B) the disclosure otherwise relates to a material business transaction or
development which has not been publicly disclosed; provided, however, that upon the
termination of such Suspension Period, the Company shall promptly advise the Initial
Purchasers and each Holder that such Suspension Period has been terminated.

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

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

8

 

becomes automatically effective in accordance with the rules and regulations of the
Commission; provided, however, that if after it has been declared effective or becomes
automatically effective, the offering of Transfer Restricted Securities pursuant to a Shelf
Registration Statement is interfered with by any stop order, injunction or other order or
requirement of the Commission or any other governmental agency or court, such Registration
Statement will be deemed not to have become effective during the period of such interference
until the offering of Transfer Restricted Securities pursuant to such Registration Statement
may legally resume.

     (e) The Company and the Initial Purchasers agree that the Holders will suffer damages
if the Company fails to fulfill its obligations under Section 2(a) or Section 2(b) hereof
and that it would not be feasible to ascertain the extent of such damages with precision.
Accordingly, the Company agrees that if:

     (i) the Exchange Offer Registration Statement is not filed with the Commission
on or prior to the 180th day following the Closing Date,

     (ii) the Exchange Offer Registration Statement is not declared effective by the
Commission on or prior to the 270th day following the Closing Date,

     (iii) the Registered Exchange Offer is not completed on or prior to the
30th Business Day following the date the Exchange Offer Registration
Statement is declared effective, or

     (iv) a Shelf Registration Statement is required to be filed but is not filed or
declared effective (or does not become automatically effective) within the
respective time periods set forth herein or the Shelf Registration Statement is
declared effective or becomes effective but thereafter ceases to be effective or
usable (other than during a Suspension Period) prior to the date that is two years
after the date of this Agreement other than after the Transfer Restricted Securities
of each Series being sold thereunder have been disposed of under the Shelf
Registration Statement or cease to be Transfer Restricted Securities, without being
succeeded within two Business Days by a post-effective amendment which cures the
failure and that is itself immediately declared effective,

(each such event referred to in clauses (i) through (iv) a “Registration Default”),
Additional Interest (“Additional Interest”) will accrue on the affected Transfer Restricted
Securities of each Series. With respect to each Series, the rate of Additional Interest
will be one-quarter of one percent (0.25%) per annum on the principal amount of Transfer
Restricted Securities of such Series held by such Holder for the first 90-day period
immediately following the occurrence of a Registration Default, increasing by an additional
one-quarter of one percent (0.25%) per annum on the principal amount of affected Transfer
Restricted Securities of such Series with respect to each subsequent 90-day period
thereafter up to a maximum amount of Additional Interest for all Registration Defaults of
one-half of one percent (0.50%) per annum on the principal amount of Transfer Restricted
Securities of such Series, from and including the date on which any

9

 

such Registration Default shall occur, to but excluding the date that is the earlier of (1)
the date on which all Registration Defaults have been cured or (2) the date on which such
affected Transfer Restricted Securities of such Series cease to be Transfer Restricted
Securities within the meaning of this Agreement.

     Notwithstanding the foregoing, (1) the amount of Additional Interest payable shall not
increase because more than one Registration Default has occurred and is pending and (2) a
Holder of Exchange Securities or a Holder of Transfer Restricted Securities who is not
entitled to the benefits of the Shelf Registration Statement pursuant to Section 2(b) hereof
shall not be entitled to Additional Interest with respect to a Registration Default that
pertains to the Shelf Registration Statement.

     (f) With respect to each Series, the Company shall notify the Trustee within one
Business Day after each date on which an event occurs in respect of which Additional
Interest is required to be paid. Any amounts of Additional Interest due pursuant to this
Section 2 will be payable in addition to any other interest payable from time to time with
respect to the Transfer Restricted Securities of each Series in cash semi-annually on the
interest payment dates specified in the Indenture (to the holders of record as specified in
the Indenture), commencing with the first such interest payment date occurring after any
such Additional Interest commences to accrue. With respect to each Series, the amount of
Additional Interest will be determined in a manner consistent with the calculation of
interest under the Indenture.

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

     3. Registration Procedures.

     In connection with the obligations of the Company with respect to the Registration Statements
pursuant to Section 2(a) and Section 2(b) hereof, the Company shall as expeditiously as possible
(provided, however, that the Company shall not be required to take actions more promptly than
required by Sections 2(a) and 2(b)):

     (a) prepare and file with the Commission a Registration Statement on the appropriate
form under the 1933 Act, which form shall (x) be selected by the Company, (y) in the case of
a Shelf Registration, be available for the sale of the Transfer Restricted Securities by the
selling Holders thereof and (z) comply as to form in all material respects with the
applicable requirements of the 1933 Act and rules and regulations promulgated thereunder and
include all financial statements required by the Commission to be filed therewith, and use
commercially reasonable efforts to cause such Registration Statement to be declared
effective by the Commission and remain effective in accordance with Section 2 hereof;

10

 

     (b) prepare and file with the Commission such amendments and post-effective amendments
to each Registration Statement as may be necessary to keep such Registration Statement
effective for the applicable period, cause each Prospectus to be supplemented by any
required prospectus supplement and, as so supplemented, to be filed pursuant to Rule 424
under the 1933 Act and keep each Prospectus current during the period described under
Section 4(3) and Rule 174 under the 1933 Act that is applicable to transactions by brokers
or dealers with respect to the Transfer Restricted Securities of any Series or Exchange
Securities of any Series;

     (c) in the case of a Shelf Registration, furnish to each Holder of Transfer Restricted
Securities of each Series being sold thereunder, to counsel for the Initial Purchasers, to
counsel for the Holders and to each Underwriter of an Underwritten Offering of Transfer
Restricted Securities, if any, without charge, as many copies of each Prospectus, including
each preliminary Prospectus and any amendment or supplement thereto and such other documents
as such Holder or Underwriter may reasonably request, in order to facilitate the public sale
or other disposition of the Transfer Restricted Securities of such Series; and, subject to
Section 3(i), the Company consents to the use of such Prospectus and any amendment or
supplement thereto in accordance with applicable law by each of the selling Holders of
Transfer Restricted Securities of such Series and any such Underwriters in connection with
the offering and sale of the Transfer Restricted Securities of such Series covered by and in
the manner described in such Prospectus or any amendment or supplement thereto in accordance
with applicable law;

     (d) use its commercially reasonable efforts to register or qualify the Transfer
Restricted Securities of each Series being sold under all applicable state securities or
blue sky laws of such jurisdictions as any Holder of Transfer Restricted Securities of such
Series covered by a Registration Statement shall reasonably request in writing by the time
the applicable Registration Statement is declared effective by the Commission, to cooperate
with such Holders in connection with any filings required to be made with FINRA and do any
and all other acts and things which may be reasonably necessary or advisable to enable such
Holder to consummate the disposition in each such jurisdiction of such Transfer Restricted
Securities owned by such Holder; provided, however, that the Company shall not be required
to (i) qualify as a foreign corporation or as a dealer in securities in any jurisdiction
where it would not otherwise be required to qualify but for this Section 3(d), (ii) file any
general consent to service of process or (iii) subject itself to taxation in any such
jurisdiction if it is not so subject;

     (e) in the case of a Shelf Registration, notify each Holder of Transfer Restricted
Securities of each Series being sold thereunder, counsel for the Holders and counsel for the
Initial Purchasers (or, if applicable, separate counsel for the Holders) promptly and, if
requested by any such Holder or counsel, confirm such notice in writing, (i) when a
Registration Statement has been declared effective or has become automatically effective and
when any post-effective amendment thereto has been filed and is declared effective, (ii) of
any request by the Commission or any state securities authority for amendments and
supplements to a Registration Statement and Prospectus or for additional information after
the Registration Statement has become effective, (iii) of the issuance by the Commission or
any state securities authority of any stop order

11

 

suspending the effectiveness of a Registration Statement or the initiation of any
proceedings for that purpose, (iv) if, between the effective date of a Registration
Statement and the closing of any sale of Transfer Restricted Securities covered thereby, the
Company receives any notification with respect to the suspension of the qualification of
such Transfer Restricted Securities for sale in any jurisdiction or the initiation of any
proceeding for such purpose, (v) of the happening of any event during the period a Shelf
Registration Statement is effective which makes any statement made in such Shelf
Registration Statement or the related Prospectus untrue in any material respect or which
requires the making of any changes in such Registration Statement or Prospectus in order to
make the statements therein not misleading, (vi) of any determination by the Company that a
post-effective amendment to a Registration Statement would be appropriate and (vii) of any
Suspension Period;

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

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

     (h) in the case of a Shelf Registration, cooperate with the selling Holders of Transfer
Restricted Securities to facilitate the timely preparation and delivery of certificates
representing Transfer Restricted Securities (if such Securities are certificated) to be sold
and not bearing any restrictive legends (unless required by applicable securities laws) and
enable such Transfer Restricted Securities to be in such denominations (consistent with the
provisions of the Indenture) and registered in such names as the selling Holders may
reasonably request at least two Business Days prior to the closing of any sale of Transfer
Restricted Securities;

     (i) in the case of a Shelf Registration, upon the occurrence of any event contemplated
by Section 3(e)(v) or (vii) hereof, use its commercially reasonable efforts to prepare and
file with the Commission a supplement or post-effective amendment to a Registration
Statement or the related Prospectus or any document incorporated therein by reference or
file any other required document so that, as thereafter delivered to the purchasers of the
Transfer Restricted Securities of each Series being sold thereunder, such Prospectus will
not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading. The Company agrees to notify the Holders to suspend use of the
Prospectus as promptly as practicable after the occurrence of such an event, and the Holders
hereby agree to suspend use of the Prospectus until the Company has amended or supplemented
the Prospectus to correct such misstatement or omission and has furnished copies of the
amended or supplemented Prospectus to the

12

 

Holders or until the Company notifies the Holders that the sale of such Transfer
Restricted Securities may be resumed;

     (j) a reasonable time prior to the filing of any Registration Statement, any
Prospectus, any amendment to a Registration Statement or amendment or supplement to a
Prospectus (except any amendment or supplement solely to add additional selling
securityholders), provide copies of such document to the Initial Purchasers and their
counsel (and, in the case of a Shelf Registration Statement, the Holders and their counsel)
and make such representatives of the Company as shall be reasonably requested by the Initial
Purchasers or their counsel (and, in the case of a Shelf Registration Statement, the Holders
or their counsel) available for discussion of such document, and shall not at any time file
or make any amendment to the Shelf Registration Statement, any Prospectus or any amendment
of or supplement to a Shelf Registration Statement or a Prospectus (except any amendment or
supplement solely to add additional selling securityholders) of which the Initial Purchasers
and their counsel (and, in the case of a Shelf Registration Statement, the Holders or their
counsel) have not been previously advised and furnished a copy or to which the Initial
Purchasers or their counsel (and, in the case of a Shelf Registration Statement, the Holders
or their counsel) shall reasonably object;

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

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

     (m) in the case of a Shelf Registration, make available for inspection by a
representative of the Holders of the Transfer Restricted Securities of each Series being
sold thereunder, any Underwriter participating in any disposition pursuant to such Shelf
Registration Statement, and attorneys and accountants designated by the Holders, at
reasonable times and in a reasonable manner, all financial and other records, pertinent
documents and properties of the Company and cause the respective officers, directors and
employees of the Company to supply all information reasonably requested by any such
representative, Underwriter, attorney or accountant in connection with a Shelf Registration
Statement, in each case, that would customarily be reviewed or examined in connection with
“due diligence” review of the Company;

     (n) use its reasonable best efforts to cause the Exchange Securities of each Series to
continue to be rated by two nationally recognized statistical rating organizations (as such
term is defined in Rule 436(g)(2) under the 1933 Act), if the Transfer Restricted Securities
of such Series have been rated;

13

 

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

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

     In the case of a Shelf Registration Statement, the Company may require each Holder of
Transfer Restricted Securities of each Series being sold thereunder to furnish to the
Company such information regarding the Holder and the proposed distribution by such Holder
of such Transfer Restricted Securities as the Company may from time to time reasonably
request in writing. No Holder of Transfer Restricted Securities may include its Transfer
Restricted Securities in such Shelf Registration Statement unless and until such Holder
furnishes such information to the Company. Each Holder including Transfer Restricted
Securities in a Shelf Registration Statement shall agree to furnish

14

 

promptly to the Company all information regarding such Holder and the proposed
distribution by such Holder of such Transfer Restricted Securities required to make the
information previously furnished to the Company by such Holder not materially misleading.

     In connection with an Exchange Offer Registration, each Holder exchanging Securities
for Exchange Securities shall be required to represent that (i) the Exchange Securities are
being obtained in the ordinary course of business of the Person receiving such Exchange
Securities, whether or not such Person is a Holder, (ii) neither such Holder nor any such
other Person has an arrangement or understanding with any Person to participate in the
distribution of Exchange Securities, (iii) other than as set forth in Section 4, if the
Holder is not a broker-dealer, or is a broker-dealer but will not receive Exchange
Securities for its own account in exchange for Securities, neither the Holder nor any such
other Person is engaged in or intends to participate in a distribution of the Exchange
Securities and (iv) neither the Holder nor any such other Person is an “affiliate” of the
Company within the meaning of Rule 405 under the Securities Act or, if such Person is an
“affiliate,” that such Holder will comply with the registration and prospectus delivery
requirements of the Securities Act to the extent applicable.

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

     If the Company shall give any such notice to suspend the disposition of Transfer
Restricted Securities pursuant to a Registration Statement, the Company shall extend the
period during which the Registration Statement shall be maintained effective pursuant to
this Agreement by the number of days during the period from and including the date of the
giving of such notice to and including the date when the Holders shall have received copies
of the supplemented or amended Prospectus necessary to resume such dispositions.

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

15

 

     4. Participation of Broker-Dealers in Registered Exchange Offer.

     (a) The parties hereto understand that the Staff of the Commission has taken the
position that any broker-dealer that receives Exchange Securities for its own account in the
Registered Exchange Offer in exchange for Securities that were acquired by such
broker-dealer as a result of market-making or other trading activities (a “Participating
Broker-Dealer”), may be deemed to be an “underwriter” within the meaning of the 1933 Act and
must deliver a prospectus meeting the requirements of the 1933 Act in connection with any
resale of such Exchange Securities.

     The Company understands that it is currently the Staff’s position that if the
Prospectus contained in the Exchange Offer Registration Statement includes a plan of
distribution containing a statement to the above effect and the means by which Participating
Broker-Dealers may resell the Exchange Securities, without naming the Participating
Broker-Dealers or specifying the amount of Exchange Securities owned by them, such
Prospectus may be delivered by Participating Broker-Dealers to satisfy their prospectus
delivery obligation under the 1933 Act in connection with resales of Exchange Securities for
their own accounts, so long as the Prospectus otherwise meets the requirements of the 1933
Act.

     (b) In light of the above, notwithstanding the other provisions of this Agreement, the
Company agrees that the provisions of this Agreement as they relate to a Shelf Registration
shall also apply to an Exchange Offer Registration to the extent, and with such reasonable
modifications thereto as may be, reasonably requested by the Initial Purchasers or by one or
more Participating Broker-Dealers, in each case as provided in clause (ii) below, in order
to expedite or facilitate the disposition of any Exchange Securities by Participating
Broker-Dealers consistent with the positions of the Staff recited in Section 4(a) above;
provided, that:

     (i) the Company shall not be required to amend or supplement the Prospectus
contained in the Exchange Offer Registration Statement, as would otherwise be
contemplated by Section 3(i), for a period exceeding 180 days after the last
Exchange Date (as such period may be extended pursuant to the penultimate paragraph
of Section 3 of this Agreement) and Participating Broker-Dealers shall not be
authorized by the Company to deliver and shall not deliver such Prospectus after
such period in connection with the resales contemplated by this Section 4; and

     (ii) the application of the Shelf Registration procedures set forth in Section
3 of this Agreement to an Exchange Offer Registration, to the extent not required by
the positions of the Staff of the Commission or the 1933 Act and the rules and
regulations thereunder, will be in conformity with the reasonable request in writing
to the Company by the Initial Purchasers or with the reasonable request in writing
to the Company by one or more broker-dealers who certify to the Initial Purchasers
and the Company in writing that they anticipate that they will be Participating
Broker-Dealers; and provided further, that, in connection with such application of
the Shelf Registration procedures set forth in Section 3 to an

16

 

Exchange Offer Registration, the Company shall be obligated (x) to deal only
with the Initial Purchasers, as representatives of the Participating Broker-Dealers,
unless they elect not to act as such representatives, (y) to pay the fees and
expenses of only one counsel representing the Participating Broker-Dealers, which
will be counsel to the Initial Purchasers unless such counsel elects not to so act
and (z) to cause to be delivered only one, if any, “comfort” letter with respect to
the Prospectus in the form existing on the last Exchange Date and with respect to
each subsequent amendment or supplement, if any, effected during the period
specified in clause (i) above.

     (c) The Initial Purchasers shall have no liability to the Company, other than as
Holders in accordance with the terms hereof, or to any other Holder with respect to any
request that they may make pursuant to Section 4(b) above.

     5. Indemnification and Contribution.

     (a) The Company agrees to indemnify and hold harmless the Initial Purchasers, each
Holder and each Person, if any, who controls the Initial Purchasers or any Holder within the
meaning of either Section 15 of the 1933 Act or Section 20 of the 1934 Act, or is under
common control with, or is controlled by, the Initial Purchasers or any Holder (each, a
“Participant”), from and against all losses, claims, damages and liabilities (including,
without limitation, any legal fees or other expenses reasonably incurred by a Participant in
connection with defending or investigating any such action or claim) caused by any untrue
statement or alleged untrue statement of a material fact contained in any Registration
Statement (or any amendment thereto) pursuant to which Exchange Securities or Transfer
Restricted Securities were registered under the 1933 Act, including all documents
incorporated therein by reference, or caused by any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements
therein not misleading, or caused by any untrue statement or alleged untrue statement of a
material fact contained in any Prospectus (as amended or supplemented if the Company shall
have furnished any amendments or supplements thereto) forming a part of such Registration
Statement, or caused by any omission or alleged omission to state therein a material fact
necessary to make the statements therein in the light of the circumstances under which they
were made not misleading, except insofar as such losses, claims, damages or liabilities are
caused by any such untrue statement or omission or alleged untrue statement or omission
based upon and in conformity with information relating to the Initial Purchasers or any
Holder, as the case may be, furnished to the Company in writing by such Initial Purchasers
or selling Holder expressly for use therein. In connection with any Underwritten Offering
permitted by Section 3, the Company will also enter into an underwriting agreement pursuant
to which the Company will agree to indemnify the Underwriters, if any, selling brokers,
dealers and similar securities industry professionals participating in such Underwritten
Offering, their officers and directors and each Person who controls such Persons (within the
meaning of either Section 15 of the 1933 Act or Section 20 of the 1934 Act) to the same
extent as provided above with respect to the indemnification of the Holders, if requested in
connection with any Registration Statement for such Underwritten Offering.

17

 

     (b) Each Holder agrees, severally and not jointly, to indemnify and hold harmless the
Company, the Initial Purchasers and the other selling Holders, and each of their respective
directors and officers who sign the Registration Statement and each Person, if any, who
controls the Company, the Initial Purchasers and any other selling Holder within the meaning
of either Section 15 of the 1933 Act or Section 20 of the 1934 Act to the same extent as the
foregoing indemnity from the Company to the Initial Purchasers and the Holders pursuant to
Section 5(a), but only with reference to information relating to such Holder furnished to
the Company in writing by such Holder expressly for use in any Registration Statement (or
any amendment thereto) or any Prospectus (or any amendment or supplement thereto).

     (c) In case any proceeding (including any governmental investigation) shall be
instituted involving any Person in respect of which indemnity may be sought pursuant to
either paragraph (a) or paragraph (b) above, such Person (the “Indemnified Party”) shall
promptly notify the Person against whom such indemnity may be sought (the “Indemnifying
Party”) in writing, but the failure to so promptly notify the Indemnifying Party shall not
negate the obligation to so indemnify such Indemnified Party unless the Indemnifying Party
is materially prejudiced by such delay, and the Indemnifying Party, upon request of the
Indemnified Party, shall retain counsel reasonably satisfactory to the Indemnified Party to
represent the Indemnified Party and any others the Indemnifying Party may designate in such
proceeding and shall pay the fees and expenses of such counsel related to such proceeding.
In any such proceeding, any Indemnified Party shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of such
Indemnified Party unless (i) the Indemnifying Party and the Indemnified Party have mutually
agreed to the retention of such counsel or (ii) the named parties to any such proceeding
(including any impleaded parties) include both the Indemnifying Party and the Indemnified
Party and, in the opinion of counsel to the Indemnifying Party, representation of both
parties by the same counsel would be inappropriate due to actual or potential differing
interests between them. It is understood that the Indemnifying Party shall not, in
connection with any proceeding or related proceedings in the same jurisdiction, be liable
for (a) the fees and expenses of more than one separate firm (in addition to any local
counsel) for the Initial Purchasers and all Persons, if any, who control the Initial
Purchasers within the meaning of either Section 15 of the 1933 Act or Section 20 of the 1934
Act, (b) the fees and expenses of more than one separate firm (in addition to any local
counsel) for the Company, its directors, its officers who sign the Registration Statement
and each Person, if any, who controls the Company within the meaning of either such Section
and (c) the fees and expenses of more than one separate firm (in addition to any local
counsel) for all Holders and all Persons, if any, who control any Holders within the meaning
of either such Section, and that all such fees and expenses shall be reimbursed as they are
incurred. In such case involving the Initial Purchasers and Persons who control the Initial
Purchasers, such firm shall be designated in writing by the Initial Purchasers. In such
case involving the Holders and such Persons who control Holders, such firm shall be
designated in writing by the Majority Holders. In all other cases, such firm shall be
designated by the Company. The Indemnifying Party shall not be liable for any settlement of
any proceeding effected without its written consent but, if settled with such consent or if
there be a final judgment for the plaintiff, the Indemnifying Party agrees to indemnify the
Indemnified Party from and against any

18

 

loss or liability by reason of such settlement or judgment. No Indemnifying Party
shall, without the prior written consent of the Indemnified Party, effect any settlement of
any pending or threatened proceeding in respect of which such Indemnified Party is or could
have been a party and indemnity could have been sought hereunder by such Indemnified Party,
unless such settlement (i) includes an unconditional release of such Indemnified Party from
all liability on claims that are the subject matter of such proceeding and (ii) does not
include a statement as to, or admission of, fault, culpability or failure to act by or on
behalf of such Indemnified Person.

     (d) If the indemnification provided for in paragraph (a) or paragraph (b) of this
Section 5 is unavailable to an Indemnified Party or insufficient in respect of any losses,
claims, damages or liabilities, then each Indemnifying Party under such paragraph, in lieu
of indemnifying such Indemnified Party thereunder, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such losses, claims, damages or liabilities
in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party
or parties on the one hand and of the Indemnified Party or parties on the other hand in
connection with the statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The relative fault of
the Company and the Holders will be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the Company or by the
Holders and the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission. The Holders’ respective obligations to
contribute pursuant to this Section 5(d) are several in proportion to the respective
principal amount of Transfer Restricted Securities of the applicable Holder that were
registered pursuant to a Registration Statement.

     (e) The Company and each Holder agree that it would not be just or equitable if
contribution pursuant to Section 5(d) above were determined by pro rata allocation or by any
other method of allocation that does not take account of the equitable considerations
referred to in Section 5(d) above. The amount paid or payable by an Indemnified Party as a
result of the losses, claims, damages and liabilities referred to in Section 5(d) above
shall be deemed to include, subject to the limitations set forth above, any legal or other
expenses reasonably incurred by such Indemnified Party in connection with investigating or
defending any such action or claim. Notwithstanding the provisions of this Section 5, no
Holder shall be required to contribute any amount in excess of the amount by which the total
price at which Transfer Restricted Securities were sold by such Holder exceeds the amount of
any damages that such Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission; provided that in no case shall any
Initial Purchaser be required to contribute any amount in excess of the underwriting
discounts or commissions applicable to the Transfer Restricted Securities of any Series
purchased by such Initial Purchaser, as set forth in the Purchase Agreement. No Person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act)
shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation. The remedies

19

 

provided for in this Section 5 are not exclusive and shall not limit any rights or
remedies which may otherwise be available to any Indemnified Party at law or in equity.

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

     6. Miscellaneous.

     (a) No Inconsistent Agreements. The Company has not entered into, and on or after the
date of this Agreement will not enter into, any agreement which is inconsistent with the
rights granted to the Holders of Transfer Restricted Securities in this Agreement or
otherwise conflicts with the provisions hereof. The rights granted to the Holders hereunder
do not in any way conflict with and are not inconsistent with the rights granted to the
holders of the Company’s other issued and outstanding securities under any such agreements.

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

     (c) Notices. All notices and other communications provided for or permitted hereunder
shall be made in writing by hand-delivery, registered first-class mail, facsimile or any
courier guaranteeing overnight delivery (i) if to a Holder, at the most current address
given by such Holder to the Company by means of a notice given in accordance with the
provisions of this Section 6(c), which address initially is, with respect to the Initial
Purchasers, the address set forth in the Purchase Agreement and (ii) if to the Company,
initially at the Company’s address set forth in the Purchase Agreement and thereafter at
such other address, notice of which is given in accordance with the provisions of this
Section 6(c).

     All such notices and communications shall be deemed to have been duly given at the time
delivered by hand, if personally delivered; five Business Days after being deposited in the
mail, postage pre-paid, if mailed; when receipt is acknowledged, if sent by facsimile; and
on the next Business Day if timely delivered to an air courier guaranteeing overnight
delivery.

20

 

     Copies of all such notices, demands, or other communications shall be concurrently
delivered by the Person giving the same to the Trustee, at the address specified in the
Indenture.

     (d) Successors and Assigns. This Agreement shall inure to the benefit of, and be
binding upon, the successors, assigns and transferees of each of the parties, including,
without limitation and without the need for an express assignment, subsequent Holders of
Transfer Restricted Securities; provided that nothing herein shall be deemed to permit any
assignment, transfer or other disposition of Transfer Restricted Securities in violation of
the terms of the Securities and the Purchase Agreement. Without limiting the foregoing, if
the Company directly or indirectly consolidates with or merges with or into, or sells,
assigns, transfers, leases, conveys or otherwise disposes of all or substantially all of its
assets and properties and the assets and properties of its subsidiaries (taken as a whole)
in one or more related transactions to another person, the person formed by or surviving any
such consolidation or merger (if other than the Company) or the person to which such sale,
assignment, transfer, lease, conveyance or other disposition has been made shall expressly
assume all of the Company’s obligations of this Agreement. If any transferee of any Holder
acquires Transfer Restricted Securities, in any manner, whether by operation of law or
otherwise, such Transfer Restricted Securities shall be held subject to all of the terms of
this Agreement, and by taking and holding such Transfer Restricted Securities such Person
shall be conclusively deemed to have agreed to be bound by and to perform all of the terms
and provisions of this Agreement and such Person shall be entitled to receive the benefits
hereof. The Initial Purchasers shall have no liability or obligation to the Company with
respect to any failure by a Holder to comply with, or any breach by any other Holder of, any
of the obligations of such Holder under this Agreement.

     (e) Purchases and Sales of Securities. The Company shall not, and shall not permit any
of its affiliates (as defined in Rule 405 under the 1933 Act) to, resell any of the
Securities that have been acquired by any of them, except for Securities purchased by the
Company or any of its affiliates and resold in a transaction registered under the Securities
Act.

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

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

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

21

 

     (i) Governing Law. This Agreement shall be governed by the laws of the State of New
York.

     (j) Severability. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or
unenforceable the validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions contained herein shall not be affected or impaired
thereby.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

22

 

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

	 	 	 	 	 	 	 
	 	 	WILLIAMS PARTNERS L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Williams Partners GP LLC,

its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Rodney J. Sailor
 

Name: Rodney J. Sailor
	 	 
	 

	 	 	 	Title: Treasurer	 	 

Confirmed and accepted as of

the date first above written:

BARCLAYS CAPITAL INC.

on behalf of themselves and as

representatives of the several Initial

Purchasers listed on Schedule I hereto

	 	 	 	 	 
	By:

	 	BARCLAYS CAPITAL INC.	 	 
	 
	 	 	 	 
	 

	 	/s/ Gregory J. Hall
 

Name: Gregory J. Hall
	 	 
	 

	 	Title: Managing Director	 	 

CITIGROUP GLOBAL MARKETS INC.

on behalf of themselves and as

representatives of the several Initial

Purchasers listed on Schedule I hereto

	 	 	 	 	 
	By:

	 	CITIGROUP GLOBAL MARKETS INC.	 	 
	 
	 	 	 	 
	 

	 	/s/ Brian D. Bednarski
 

Name: Brian D. Bednarski
	 	 
	 

	 	Title: Managing Director	 	 

Signature Page to Registration Rights Agreement

 

 

SCHEDULE I

Initial Purchasers:

Barclays Capital Inc.

Citigroup Global Markets Inc.

Banc of America Securities LLC

BNP Paribas Securities Corp.

Calyon Securities (USA) Inc.

J.P. Morgan Securities Inc.

RBS Securities Inc.

Scotia Capital (USA) Inc.

Wells Fargo Securities, LLC

TD Securities (USA) LLC

The Williams Capital Group L.P.

Mitsubishi UFJ Securities (USA), Inc.

Mizuho Securities USA Inc.

RBC Capital Markets Corporation

BOSC, Inc.

Natixis Bleichroeder LLCexv10w1

Exhibit 10.1

EXECUTION VERSION

AMENDED AND RESTATED

EXECUTIVE EMPLOYMENT AGREEMENT

          THIS AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”) is effective
July 1, 2010, by and between Furniture Brands International, Inc., a Delaware corporation
(“Company”) and Ralph Scozzafava (“Executive”).

          WHEREAS, Executive has been employed by and currently serves as the Company’s Chairman and
Chief Executive Officer of the Company pursuant to an employment agreement between Executive and
the Company, dated as of June 18, 2007, as amended effective May 1, 2008, which expires by its
terms on June 30, 2010 (the “Original Agreement”); and

          WHEREAS, Executive and the Company desire to amend, restate and extend the Original Agreement
in the form of this Agreement, effective on the day following the stated expiration date of the
Original Agreement.

          NOW, THEREFORE, in consideration of the promises and the mutual agreements contained herein,
the Company and Executive hereby agree as follows:

ARTICLE I

DEFINITIONS

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

          (a) “Board” means the Board of Directors of the Company.

          (b) “Cause” means (i) engaging by Executive in willful misconduct which is materially
injurious to Company; (ii) conviction of Executive by a court of competent jurisdiction of, or
entry of a plea of nolo contendere with respect to a felony; (iii) engaging by
Executive in fraud, material dishonesty or gross misconduct in connection with the business of
Company; (iv) engaging by Executive in any act of moral turpitude reasonably likely to materially
and adversely affect Company or its business; or (v) Executive’s current chronic abuse of or
dependency on alcohol or drugs (illicit or otherwise). No act or omission of Executive shall be
“willful” if conducted in good faith or with a reasonable belief that such conduct was in the best
interests of the Company. No termination shall be for “Cause” unless approved by a resolution of a
majority of the members of the Board after reasonable prior notice to Executive and an opportunity
to appear (with the assistance of counsel) before the Board.

          (c) “Change of Control” means (1) an acquisition by an individual or entity of 35% of
the outstanding common stock or voting power of the Company, (2) a contested change of a majority
of the non-employee member of the Board of the Company, (3) the consummation via execution of an
final written agreement for merger, sale, acquisition, or other such transaction where the
shareholders of the Company immediately prior to such transaction do not own 60% of the outstanding
common stock of the Company immediately following such

 

 

transaction, or (4) shareholder approval of a complete dissolution of the Company (excluding
bankruptcy).

          (d) “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended.

          (e) “Code” means the Internal Revenue Code of 1986, as amended, and the regulations
promulgated thereunder.

          (f) “Confidential Information” as used in Section 2.5, shall mean all technical and
business information of the Company, or which is learned or acquired by the Company from others
with whom the Company has a business relationship in which, and as a result of which, similar
information is revealed to the Company, whether patentable or not, which is of a confidential,
trade secret and/or proprietary character and which is either developed by Executive (alone or with
others) or to which Executive shall have had access during his employment. Confidential
Information shall include (among other things) all (i) current or prospective Customers and/or
suppliers, (ii) employees, research, goodwill, production and prices, (iii) business methods,
processes, practices or procedures, (iv) computer software and technology development, (v) business
strategy, including acquisition, merger and/or divestiture strategies, and (v) designs, plans,
notes, memoranda, work sheets, formulas and processes, but shall not include Executive’s rolodex
(or other tangible or electronic address book).

          (g) “Constructive Termination” shall mean Executive’s voluntary termination of
employment with the Company as a result of:

	 	(i)	 	a material diminution in Executive’s title,
authority, duties or responsibilities, or a change in Executive’s
supervisory reporting relationship within the Company (which, for the
avoidance of doubt, includes: (A) any removal of Executive from, or
failure to elect or re-elect Executive to, the Board at any time, and
(B) following a Change of Control, a status and reporting relationship
in which Executive is not the senior-most officer, reporting to the
board of directors, of the top-most parent company of which the Company
may be the parent, subsidiary or a division thereof following such
Change of Control);
	 
	 	(ii)	 	a change, caused by the Company, in geographic
location of greater than 50 miles of the location at which Executive
primarily performs services for the Company on the Commencement Date;
or
	 
	 	(iii)	 	a material reduction in Executive’s base pay,
incentive compensation or benefits.
	 
	 	 	 	No voluntary termination by Executive shall constitute a
“Constructive Termination” unless he shall have given (x) notice of
the proposed termination due to Constructive Termination, with
particulars, to the Company not later than 90 days following the

2

 

	 	 	 	initial occurrence of the condition above forming the basis for such
termination and (y) the Company an opportunity for 30 days after such
notice within which to remedy such condition, in which such condition
is not remedied.

          (h) “Customer” means any Person or entity to whom the Company has sold any products
(i) in the case of on-going employment, during the 24 calendar months immediately preceding any
dispute under Section 2.6 of this Agreement, and (ii) in the case of the employment having ended,
the 24 calendar months preceding Executive’s termination of employment.

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

          (j) “Severance Payment” shall mean the aggregate gross amount of severance payments
determined under Section 2.4(c).

          (k) “Termination Date” shall mean the date on which Executive incurs a termination of
employment with the Company.

ARTICLE II

EMPLOYMENT

          2.1 Employment. Company agrees to continue to employ Executive and Executive hereby
accepts such continued employment with the Company, upon the terms and conditions set forth in this
Agreement, for the period beginning on July 1, 2010 (“Commencement Date”) and ending as
provided in Section 2.4 of this Agreement (the “Employment Period”).

          2.2 Position and Duties.

          (a) Executive shall continue to serve as Chairman and Chief Executive Officer of the Company.
Executive, subject to the control of the Board, shall have general supervision and control over the
business, property and affairs of the Company and perform such duties as may be assigned to him by
the Board.

          (b) Executive shall devote his best efforts and his full business time and attention (except
for permitted vacation periods and reasonable periods of illness or other incapacity) to the
business and affairs of the Company. Executive shall perform his duties and responsibilities to
the best of his abilities in a diligent, trustworthy, businesslike and efficient manner. In the
performance of his duties hereunder, Executive shall at all times report and be subject to the
lawful direction of the Board and perform his duties hereunder subject to and in accordance with
the resolutions or any other determinations of the Board and the certificate of incorporation and
by-laws of the Company and applicable law. During the Employment Period, Executive shall not
become an employee of any Person or entity other than the Company. This section shall not be
construed to prohibit Executive from serving on the board of directors of one

3

 

or more other entities (with the consent of the Board in the case of a for-profit entity) or
from investing in a business to the extent consistent with the provisions of Section 2.6.

          2.3 Compensation. Executive shall be entitled to the following compensation:

     (a) Annual Salary. Executive shall receive a base salary at the annual rate of
$750,000 payable in bi-weekly installments. The Base Salary level shall be reviewed
annually , and increased (but not decreased) in the discretion of the Board (any such
original or increased amount being Executive’s “Base Salary” thereafter).

     (b) Annual Incentive. Executive shall be eligible for an annual target
incentive of 100% of Executive’s Base Salary in accordance with the provisions of the
Company’s Short-Term Incentive Plan (or successor plan) (“Annual Incentive Bonus”).

     (c) Long-Term Compensation. Executive shall be eligible for an annual
long-term compensation award, which may be payable in a combination of cash and equity-based
awards (such as stock options or performance shares) (the “LTI Bonus”). The Company
anticipates, but does not covenant, that the target LTI Bonus shall be an amount that is not
less than 300% of Executive’s Base Salary, subject to increases or decreases on the same
basis as applied to other executives of the Company. Awards outstanding on the effective
date of this Agreement shall continue to be subject to the terms thereof and the Original
Agreement, without amendment under this Agreement except as specifically provided otherwise
in Sections 2.4(c)(v) and 2.4(c)(vii) below.

     (d) Vacation. Executive shall receive 4 weeks of vacation annually.

     (e) Benefits. Executive shall be eligible for employee benefits and other
insurance plans which are described in the benefit highlights document given to employees
generally. Executive is also eligible to participate in the Company’s Executive Deferred
Compensation Program and other benefits and perquisites provided to senior executives (other
than benefits not available to new hires on the date Executive commenced employment with the
Company on June 18, 2007) (“Benefits”).

          2.4 Term.

          (a) General Term. This Agreement shall commence on July 1, 2010, and terminate on
June 30, 2013, unless extended prior to that date (the “Term”).

          (b) Termination for Cause or Voluntary Termination Other than Constructive
Termination. If Executive is terminated by the Company for Cause or if Executive voluntarily
terminates his employment in any manner, except for a Constructive Termination or as provided in
Section 2.4(g), prior to the end of the Employment Period, Executive shall be entitled only to his
Base Salary and accrued unused vacation through the Termination Date, but shall not be entitled to
any further Base Salary or any applicable bonus or Benefits under Section 2.3(e) for that year or
any future year, except for: (i) any prior year earned unpaid bonus, (ii) any unreimbursed
business expenses incurred on or prior to the Termination Date and (iii) amounts as may be provided
in an applicable benefit plan or program, or to any severance compensation of any kind, nature or
amount (“Accrued Benefits”) .

4

 

          (c) Termination Without Cause. If Executive is terminated without Cause or if the
Executive terminates employment due to a Constructive Termination, Executive shall be entitled to
the benefits described in this subsection.

     (i) A Severance Payment equal to two, multiplied by the sum of (a) Executive’s
annual Base Salary as of Executive’s Termination Date; and (b) Executive’s target
annual bonus amount under the Company’s Short-Term Incentive Plan with respect to
the year in which the Termination Date occurs. The Severance Payment shall be paid
in a single lump-sum cash payment, less all applicable withholding taxes, within
fifteen days following Executive’s termination of employment if it is not subject to
Section 409A of the Code or, if it is subject to Section 409A of the Code, it shall
be paid on the first day of the seventh month following Executive’s Termination Date
or, if earlier, the date that Executive dies following the Termination Date.

     (ii) A prorated Annual Incentive Bonus in respect of the fiscal year during
which the Termination Date occurs, the amount of which shall be equal to the amount
of the Annual Incentive Bonus, if any, that would be due under the Company’s
Short-Term Incentive Plan (or successor plan) had Employee still been employed
through the end of such fiscal year, multiplied by a fraction, the numerator of
which is the number of days in such fiscal year prior to the Termination Date and
the denominator of which is 365, payable at time such Annual Bonus would have been
paid had Executive remained employed through the date of such payment (a
“Pro-Rata Bonus”).

     (iii) For two years following the Termination Date (irrespective of whether
COBRA otherwise would terminate prior to expiration of such two-year period),
Executive shall be eligible to participate in the Company’s health, dental and
vision benefit plans under the Company’s medical plan that the Company generally
makes available to its senior executives on substantially the same terms as an
actively employed senior executive; provided that such coverage shall be provided on
an after-tax basis, meaning that the Company shall report to the appropriate tax
authorities the cost of such coverage as taxable income to Executive.

     (iv) Executive shall vest in any and all other non-qualified stock options,
incentive stock options, stock appreciation rights, restricted stock, performance
 shares, performance units and restricted stock units previously granted to Executive
by the Company (collectively “Equity Awards”) which are outstanding on
Executive’s Termination Date in accordance with the terms of the plan(s) under which
such Equity Awards were granted and, notwithstanding the terms of the applicable
plan or Equity Award, Executive shall be entitled to exercise each such stock option
and stock appreciation right until the earlier of (i) the one year anniversary of
the Termination Date and (ii) the last day of its original term.

5

 

     (v) In the event that the Termination Date occurs 18 months or more after the
commencement of a three-year performance cycle (or after one-half of the period has
elapsed of any cycle of other than three years’ duration) under the Company’s
Long-Term Incentive Plan, Executive shall be entitled to receive a payment equal to
the pro-rata portion (determined as of the Termination Date) of the long-term cash
bonus in respect of such performance cycle otherwise payable under the terms of the
Company’s Long-Term Incentive Plan. Such payment will be paid at the same time that
such bonus would have been paid under the Company’s Long-Term Incentive Plan had
Executive continued employment through end of the performance period during which
the Termination Date occurred.

     (vi) The Company (at its expense) shall, for a period of twelve months
following Executive’s Termination Date:

     (A) Reimburse Executive for the reasonable costs of outplacement
services, reasonable job-hunting expenses, travel costs and financial
counseling costs associated with employment transition not to exceed
$40,000. All reimbursements shall be made as soon as practicable after
submission of appropriate expense reports but in no event later than the end
of Executive’s third taxable year following the year in which Executive
terminates employment with the Company; and

     (B) Allow Executive to participate in the welfare plans, other than
health, dental and vision benefit plans, that the Company generally makes
available to its key employees on substantially the same terms as an
actively employed key employee, except that (A) for a period of six months
following the Termination Date, Executive shall pay to the Company the
premium cost of participation in such plans to the extent required to comply
with Section 409A(2)(B)(i) of the Code and Treasury Regulation Section
1.409A-1(b)(9)(v) thereunder, and on the first day of the seventh month
following the Termination Date the Company shall pay Executive a lump sum
amount equal to such amounts so paid by him, and (B) Executive may not
continue to participate in the Company’s Short-Term Disability and Long-Term
Disability Plans.

     (vii) Executive has been granted, and may in the future be granted, options to
purchase shares of Company stock (“Stock Options”), as well as shares of
restricted Company stock (“Restricted Stock Awards”). If Executive’s
employment is terminated within six months prior to a Change of Control, the Company
shall pay to Executive an additional cash bonus equal to the sum of (a) and (b),
where (a) equals the fair market value, on the date of the Change of Control, of
 shares of stock under Restricted Stock Awards that were unvested and forfeited on
the Termination Date and otherwise would have been vested on the date of the Change
of Control had Executive been continuously employed from the Termination Date
through the date of the Change of Control, and (b) equals the excess of the fair
market value, on the date of the Change of Control, of shares

6

 

of stock subject to Stock Options that were nonexercisable and forfeited on the
Termination Date and otherwise would have been exercisable on the date of the Change
of Control had Executive been continuously employed from the Termination Date
through the date of the Change of Control, over the aggregate option exercise price
in respect of such shares. Such cash bonus shall be paid on the effective date of
the Change of Control.

          (d) No Mitigation. To the extent that Executive shall receive compensation for
personal services from employment other than with the Company subsequent to a termination of
Executive’s employment with the Company, the amounts so earned shall not be offset against the
amounts (if any) due under this Agreement following Executive’s Termination Date.

          (e) Cap on Certain Payments by the Company/Certain Additional Payments by the Company
During the Initial Period. In the event that, during the 18-month period commencing on the
Commencement Date (the “Initial Period”), (i) the aggregate value, as determined for
purposes of Section 280G of the Code, of any payments or benefit of any type by the Company to or
for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to
the terms of this Agreement or otherwise (“Payments”), would equal or exceed the product of
three and Executive’s “Base Amount” (as defined in Section 280G of the Code), and any such Payments
would be subject to the excise tax imposed by Section 4999 of the of the Code, or (ii) any interest
or penalties would be incurred by Executive with respect to such excise tax (such excise tax,
together with any such interest and penalties, are hereinafter collectively referred to as the
“Excise Tax”), then (A) if the value of the Payments exceeds the product of three and
Executive’s Base Amount by an amount greater than 10% of such product, then Executive shall be
entitled to receive an additional payment (a “Gross Up Payment”) in an amount such that
after payment by Executive of the Excise Tax and any income and employment taxes (and any interest
and penalties imposed with respect thereto) imposed upon the Gross Up Payment, Executive retains an
amount of the Gross Up Payment equal to the Excise Tax imposed upon the Payments, and (B) if the
value of the Payments does not exceed the product of three and Executive’s Base Amount by an amount
greater than 10% of such product, then, notwithstanding anything in this Agreement to the contrary,
the Payments shall be reduced to the “Reduced Amount” (as defined below) . Any Gross Up Payment
due pursuant to clause (A) of the preceding sentence shall be paid by the Company to Executive as
soon as administratively practicable but in no event later than the end of Executive’s taxable year
following the year in which Executive remits the Excise Tax to the Internal Revenue Service.

          (f) Certain Reductions of Payments following the Initial Period. In the event that,
after the Initial Period, any Payments to or for the benefit of Executive would equal or exceed the
product of three and Executive’s Base Amount, then, notwithstanding anything in this Agreement to
the contrary, the Payments shall be reduced to the Reduced Amount if Executive would have a greater
“Net After-Tax Receipt” (as defined below) of aggregate Payments if Executive’s Payments were
reduced to the Reduced Amount. If a reduction of the Payments to the Reduced Amount would not
result in Executive having a greater Net After-Tax Receipt than in the absence of such reduction,
Executive shall receive all Payments to which Executive is entitled under this Agreement.

7

 

All determinations required to be made under Sections 2.4(e) and 2.4(f), including whether and when
a Gross Up Payment is required pursuant to Section 2.4(e), the amount of any such Gross Up Payment,
and any reductions to Payments required by Section 2.4(e) or Section 2.4(f), and the assumptions to
be utilized in arriving at such determinations, shall be made by such certified public accounting
firm in the business of performing such calculations as may be designated by the Company (the
“Consulting Firm”), which shall provide detailed supporting calculations both to the
Company and Executive. All fees and expenses of the Consulting Firm shall be borne solely by the
Company. For purposes of reducing the Payments to the Reduced Amount where required pursuant to
Section 2.4(e) or Section 2.4(f), only amounts payable under this Agreement (and no other Payments)
shall be reduced. The reduction of the amounts payable hereunder, if applicable, shall be made by
reducing the payments and benefits under the following sections in the following order: Section
2.4(c)(i), Section 2.4(c)(ii), Section 2.4(c)(v), Section 2.4(c)(vii) and Section 2.4(c)(iv). For
purposes hereof, “Reduced Amount” shall mean the greatest amount of Payments that can be
paid that would not result in the imposition of the Excise Tax; and “Net After-Tax Receipt”
shall mean the present value (as determined in accordance with Sections 280G(b)(2)(A)(ii) and
280G(d)(4) of the Code) of the Payments net of all taxes imposed on Executive with respect thereto
under Sections 1, 3101 and 4999 of the Code and under applicable state and local laws, determined
by applying the highest marginal rate under Section 1 of the Code and under state and local laws
that applied to Executive’s taxable income for the immediately preceding taxable year, or such
other rate(s) as Executive certifies, to the reasonable satisfaction of the Company, as likely to
apply to him in the relevant tax year(s).

          (g) Severance Forfeiture. Executive agrees that Executive shall be entitled to the
payments and benefits set forth in this Section 2.4 only if Executive has not materially breached,
as of the Termination Date, any provisions of this Agreement and does not materially breach such
provisions at any time during the period for which such payments and benefits are to be made. The
Company’s obligation to make such payments will terminate upon the occurrence of any such material
breach during the severance period.

          (h) No Additional Severance. Executive hereby agrees that no severance compensation
of any kind, nature or amount shall be payable to Executive, except as expressly set forth in this
Section 2.4, and Executive hereby irrevocably waives any claim for any other severance
compensation.

          (i) Death or Disability. The Company’s obligation under this Agreement terminates on
the last day of the month in which Executive’s death occurs or on the date as of which Executive
first becomes entitled to receive disability benefits under the Company’s long-term disability
plan. The Company shall pay to Executive or Executive’s estate (i) all previously earned and
accrued but unpaid Base Salary, (ii) accrued unused vacation up to such date and (iii) a Pro-Rata
Bonus. Thereafter, Executive or his estate shall not be entitled to any further Base Salary,
bonus, or Benefits for that year or any subsequent year, except for his Accrued Benefits.

          (j) Post-Term Termination Medical Benefits. In the event that Executive’s termination
of employment occurs after June 30, 2013 for any reason other than by the Company for Cause, for
three years following the Termination Date (irrespective of whether COBRA otherwise would terminate
prior to expiration of such three-year period) Executive shall have the

8

 

right to participate in the Company’s health, dental and vision benefit plans under the
Company’s medical plan that the Company generally makes available to its senior executives on
substantially the same terms as an actively employed senior executive; provided that Executive must
pay to the Company the amount of the applicable COBRA premium for the period of such coverage; and
further provided that such three-year period shall be reduced by, and commence immediately
following, the period, if any, during which Executive receives such coverage pursuant to Section
2.4(c)(vi)(B) above.

          2.5 Confidential Information. Executive expressly recognizes and acknowledges that
during his employment with the Company, he will become entrusted with, have access to, and gain
possession of, Confidential Information. Executive agrees, by acceptance of the benefits under
this Agreement, to protect all Confidential Information concerning the business activities of the
Company which was acquired in connection with or as a result of the performance of service for the
Company.

          2.6 Competitive Activity. For a period of 24 months following Executive’s Termination
Date, he shall not engage, or attempt to engage, on his own behalf or on behalf of a third party,
in any “Competitive Activity.” The term “Competitive Activity” shall mean participation by
Executive, without written consent of the Board, in the management of any business operation of any
enterprise if such operation engages in the design, manufacture, marketing, or retail of
residential furniture in any geographic are where the Company or its subsidiaries conduct business.

          2.7 Stock Ownership. The Board has approved stock ownership requirements for the
senior officers of the Company. The ownership requirement for the Chief Executive Officer is
200,000 Shares. Executive will have five years from Executive’s appointment as Chairman and Chief
Executive Officer to attain this level of ownership.

          2.8 Recoupment.

          (a) In the event of a restatement of the Company’s financial statements that reduces
previously reported net income or increases previously reported net loss, the Company shall have
the right to recoup from Executive any portion of any bonus and other equity or non-equity
compensation received by Executive, the grant or vesting of which was expressly conditioned on the
achievement of one or more specific financial performance targets with respect to the period for
which such financial statements are restated, regardless of whether Executive engaged in any
misconduct or was at fault or responsible in any way for causing the restatement, if, based on the
financial statements as so restated, Executive otherwise would not have received such bonus or
other compensation or portion thereof. In the event the Company is entitled to, and seeks,
recoupment under this Section 2.8, Executive shall promptly reimburse the after-tax portion (after
taking into account all available deductions in respect of such reimbursement) of such bonus or
other compensation which the Company is entitled to recoup hereunder. In the event Executive fails
to make prompt reimbursement of any such bonus or other compensation which the Company is entitled
to recoup and as to which the Company seeks recoupment hereunder, Executive acknowledges and agrees
that the Company shall have the right to (i) deduct the amount to be reimbursed hereunder from the
compensation or other payments due to Executive from the Company or (ii) take any other appropriate
action to recoup

9

 

such payments. The Company’s right of recoupment pursuant to this Section 2.8
shall not apply
to compensation which was paid or which became vested, as applicable, more than three years
prior to the earlier of the first public issuance or first filing with the Securities and Exchange
Commission of the applicable restatement of financial statements. Any waiver of the Company’s
right of recoupment must be done in a writing that is signed by both the Company and Executive.

          (b) The rights contained in this Section 2.8 shall be in addition to, and shall not limit, but
shall not duplicate any recoupment pursuant to, any other rights or remedies that the Company may
have under law, in equity or otherwise, including, without limitation, any rights the Company may
have under any other Company recoupment policy or other agreement or arrangement with Executive.

          2.9 Attorney’s Fees and Costs. The Company shall also pay Executive’s reasonable cost
and expenses (including legal fees at 

non-premium rates) incurred in connection with the
negotiation of this Agreement, up to a maximum of $20,000. The Company shall treat such payment as
a non-taxable “working condition fringe,” as defined in Section 132(d) of the Code.

          2.10 Code Section 409A. This Agreement is intended to comply with the requirements of
Section 409A of the Code or an exemption or exclusion therefrom and, with respect to amounts that
are subject to Section 409A of the Code, shall in all respects be administered in accordance with
Section 409A of the Code. Each payment under this Agreement shall be treated as a separate payment
for purposes of Section 409A of the Code. In no event may Executive, directly or indirectly,
designate the calendar year of any payment to be made under this Agreement. All reimbursements and
in-kind benefits, including any taxable health, dental and vision benefits provided under this
Agreement that constitute deferred compensation within the meaning of Section 409A of the Code
shall be made or provided in accordance with the requirements of Section 409A of the Code,
including, without limitation, that (i) in no event shall reimbursements by Company under this
Agreement be made later than the end of the calendar year next following the calendar year in which
the applicable fees and expenses were incurred, provided, that Executive shall have submitted an
invoice for such fees and expenses at least 10 days before the end of the calendar year next
following the calendar year in which such fees and expenses were incurred; (ii) the amount of
in-kind benefits that Company is obligated to pay or provide in any given calendar year (other than
medical reimbursements described in Treas. Reg. § 1.409A-3(i)(1)(iv)(B)) shall not affect the
in-kind benefits that Company is obligated to pay or provide in any other calendar year; (iii)
Executive’s right to have the Company pay or provide such reimbursements and in-kind benefits may
not be liquidated or exchanged for any other benefit; and (iv) in no event shall Company’s
obligations to make such reimbursements or to provide such in-kind benefits apply later than
Executive’s remaining lifetime or if longer, through the 20th anniversary of the Effective Date.
If Executive dies following the Termination Date and prior to the payment of the any amounts
delayed on account of Section 409A of the Code, such amounts shall be paid to the personal
representative of Executive’s estate within 30 days after the date of Executive’s death.

10

 

ARTICLE III

MISCELLANEOUS

          3.1 Executive’s Representations. Executive hereby represents and warrants to the
Company that (i) Executive’s execution, delivery and performance of this Agreement do not and shall
not conflict with, breach, violate or cause a default under any contract, agreement, instrument,
order, judgment or decree to which Executive is a party or by which he is bound, (ii) Executive is
not a party to or bound by any employment agreement, noncompete agreement or confidentiality
agreement with any other person or entity and (iii) upon the execution and delivery of this
Agreement by the Company, this Agreement shall be the valid and binding obligation of Executive,
enforceable in accordance with its terms. Executive hereby acknowledges and represents that he
fully understands the terms and conditions contained herein.

          3.2 Survival. Sections 2.4, 2.5, 2.6 and 2.8 shall survive and continue in full force
in accordance with their terms notwithstanding any termination of the Employment Period.

          3.3 Notices. All notices, demands or other communications to be given or delivered
under or by reason of the provisions of this Agreement will be in writing and will be deemed to
have been given when delivered personally, mailed by certified or registered mail, return receipt
requested and postage prepaid, or sent via a nationally recognized overnight courier, or sent via
facsimile (provided recipient provides a facsimile acknowledgement of receipt within 24 hours
thereafter in reply), to the recipient. Such notices, demands and other communications will be
sent to the address indicated below:

To the Company:

Furniture Brands International, Inc.

Human Resources Committee

1 N. Brentwood Blvd.

St. Louis, Missouri 63105

To Executive:

Ralph Scozzafava

At the last known residence address on the payroll records of the Company

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

          3.4 Severability. Whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law. If any provision of
this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable
law or rule in any jurisdiction, (a) the parties agree that such provision(s) will be enforced to
the maximum extent permissible under the applicable law, and (b) any invalidity,

11

 

illegality or
unenforceability of a particular provision will not affect any other provision of this Agreement.

          3.5 Successors and Assigns. Except as otherwise provided herein, all covenants and
agreements contained in this Agreement shall bind and inure to the benefit of and be enforceable by
the Company, and its successors and assigns. This Agreement is personal to Executive and, except
as otherwise specifically provided herein, this Agreement, including the obligations and benefits
hereunder, may not be assigned to any party by Executive. If Executive dies prior to receipt of
all amounts and benefits due him under this Agreement, including, without limitation, under Section
2.4, such amounts will be paid to Executive’s estate.

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

          3.7 Counterparts. This Agreement may be executed in one or more identical
counterparts, each of which shall be deemed an original but all of which together shall constitute
one and the same instrument.

          3.8 Waiver. Neither any course of dealing nor any failure or neglect of either party
hereto in any instance to exercise any right, power or privilege hereunder or under law shall
constitute a waiver of such right, power or privilege or of any other right, power or privilege or
of the same right, power or privilege in any other instance. Without limiting the generality of
the foregoing, Executive’s continued employment without objection shall not constitute Executive’s
consent to, or a waiver of Executive’s rights with respect to, any circumstances constituting
Constructive Termination (subject to Section 1.1(f)). All waivers by either party hereto must be
contained in a written instrument signed by the party to be charged therewith, and, in the case of
Company, by its duly authorized officer.

          3.9 Entire Agreement. This instrument constitutes the entire agreement of the parties
in this matter and, effective July 1, 2010, shall supersede any other agreement between the
parties, oral or written, concerning the same subject matter, including, without limitation, the
Original Agreement. The Original Agreement shall apply from the date hereof through June 30, 2010.

          3.10 Amendment. This Agreement may be amended only by a writing which makes express
reference to this Agreement as the subject of such amendment and which is signed by Executive and
by a duly authorized officer of the Company.

          3.11 Governing Law. This Agreement shall be signed by the parties in St. Louis,
Missouri. All questions concerning the construction, validity and interpretation of this Agreement
will be governed by and construed in accordance with the domestic law of the State of Missouri,
without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of Missouri or any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of Missouri. Any litigation relating to or arising out of this
Agreement shall be filed and litigated exclusively in the St. Louis County Circuit Court or the
United States District Court for the Eastern District of Missouri.

12

 

          3.12 Remedies. Each of the parties to this Agreement will be entitled to enforce its
rights under this Agreement specifically, to recover damages and costs (including reasonable
attorneys’ fees) caused by any breach of any provision of this Agreement and to
exercise all other rights existing in its favor. The parties hereto agree and acknowledge
that money damages may not be an adequate remedy for any breach of the provisions of this
Agreement, including, without limitation, Sections 2.5, 2.6 and 2.7 hereof, 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 deposit) for specific performance and/or other injunctive relief in order to
enforce or prevent any violations of the provisions of this Agreement.

          3.13 Exit Interview. To ensure a clear understanding of this Agreement, Executive
agrees, at the time of termination of Executive’s employment, to engage in an exit interview with
the Company at a time and place designated by the Company and at the Company’s expense. Executive
understands and agrees that during said exit interview, Executive may be required to confirm that
he will comply with his on-going obligations under this Agreement. The Company may elect, at its
option, to conduct the exit interview by telephone.

          3.14 Future Employment. Executive shall disclose the existence of this Agreement to
any new employer or potential new employer which offers products or services that compete with the
Company’s Business if such new employment commences within two years following Executive’s
termination of employment with the Company. Executive consents to the Company informing any
subsequent employer of Executive, or any entity which the Company in good faith believes is, or is
likely to be, considering employing Executive, of the existence and terms of this Agreement if such
subsequent employment commences (or is expected to commence) within two years following Executive’s
termination of employment with the Company.

          3.15 Indemnification. The Company shall indemnify Executive and hold Executive
harmless from and against any claim, loss or cause of action arising from or out of Executive’s
performance as an officer, director or employee of the Company or any of its subsidiaries or in any
other capacity, including any fiduciary capacity, in which Executive serves at the request of the
Company to the maximum extent permitted under applicable law. The Company shall cause Executive to
be a covered person, during and after termination of his employment and membership on the Board
respecting his acts and omissions occurring during such employment and membership, under any
directors and officers liability insurance policy (or similar policy) that it may have in effect
from time to time, and shall afford Executive all of the rights and privileges available to covered
persons in accordance with the terms of any such policy.

          3.16 Inconsistency. In the event of any inconsistency between this Agreement and any
other agreement (including but not limited to any option, long-term incentive or other equity award
agreement), plan, program, policy or practice (collectively, “Other Provision”) of the
Company the terms of this Agreement shall control over such Other Provision. No provision in any
policy, code, plan or program related to a violation thereof being grounds for termination, or
similar language, shall result in a “cause” termination unless such violation is also Cause under
this Agreement and the provisions hereof are complied with, and the foregoing shall apply

13

 

even if
Executive signs an acknowledgement or otherwise agrees to the provisions of such policy, code, plan
or program.

          IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement this
4th day of February 2010, and effective as of the date first written above.

	 	 	 	 	 
	 	FURNITURE BRANDS INTERNATIONAL, INC.

 	 
	 	By:  	/s/ Beth Sweetman
 	 
	 	 	Name:  	Beth Sweetman 	 
	 	 	Title:  	Senior Vice President-Human Resources 	 
	 
	 	RALPH P. SCOZZAFAVA

 	 
	 	By:  	/s/ Ralph P. Scozzafava
 	 
	 	 	Name:  	Ralph P. Scozzafava 	 
	 	 	 	 
	 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}]]