Document:

exv10w36

 

Exhibit 10.36

The Advisory Board Company

Optionholder Participation Agreement

Instructions

Two documents are attached for your review and reference:

	 	1.	 	Option Holder Participation Agreement: you need to fill this
form out and return it to David Felsenthal by Wednesday, October 23,
2002.
	 
	 	2.	 	Summary of Option Grants: this is a copy of information that
was distributed to you earlier in the year, and provides the
information you need to fill out the Option Holder Participation
Agreement

Should you have any questions regarding these documents or this process, please
contact David Felsenthal or John Galloway.

 

 

The Advisory Board Company

Optionholder Participation Agreement

         The undersigned (the “Optionholder”) holds the number of options set forth
below to purchase shares of common stock, $0.01 par value per share (the
“Common Stock”), of the Advisory Board Company (the “Company”), as well as
shares of Common Stock also set forth below. These options are scheduled to
become exercisable on November 12, 2002. The Optionholder desires to exercise
some or all of these options, and to sell the shares of Common Stock issued
upon such exercise in addition to a number of shares already held by the
Optionholder, as indicated below.

         The Company anticipates that it may offer shares of Common Stock to the
public (the “Offering”) pursuant to a registration statement to be filed with
the Securities and Exchange Commission under the Securities Act of 1933, as
amended, and the Optionholder desires to participate in the Offering.

         For the purposes of the Offering and in order to assure the orderly sale
of the Shares, the Optionholder hereby agrees not to sell any shares of Common
Stock, nor to exercise any of the options set forth below, prior to the earlier
of (i) the closing of the Offering and (ii) the date that is 180 days after
November 12, 2002. The Optionholder further agrees not to sell any shares, or
exercise any options, other than the shares and options indicated in the table
below, until no earlier than November 12, 2003.

         By execution hereof, the undersigned hereby acknowledges acceptance of the
terms of this Participation Agreement.

	 	 	 
	 	 	
OPTIONHOLDER:
	
	
	
	

	 	 	 
	
	
	
	

	 	 	 
	
	
	
	

	 	 	
By:_______________________________
	
	
	
	

	 	 	 
	
	
	
	

	 	 	
Print Name:_________________________
	
	
	
	

	 	 	 
	
	
	
	

	 	 	
Date: October      , 2002

	 	 	 
	Indication of Intent	 	 
	
	
	
	

	 	 	 
	
	
	
	

	I. Total number of Options that I hold which are scheduled
to be exercisable on November 12, 2002
(see attached summary of Option position for reference):	 	
 
	 	 	

	II. Number of these Options which I desire to exercise
and sell in the Offering:	 	
 
	 	 	

	III. Number of Shares purchased through directed share
program, or on the open market, which I desire to sell in
the Offering:	 	
 
	 	 	

	IV. Total number of Options and Shares to be
sold (sum of II and III):	 	
 
	 	 	

*  If necessary to facilitate the closing of the Offering, the number of options
actually exercised and shares sold may be reduced among all selling
shareholders.exv4w1

 

Exhibit 4.1

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (the “Agreement”) is made and entered
into as of March 28, 2002, by and between Oxford Finance Corporation, a
Maryland corporation (the “Company”) and Friedman, Billings, Ramsey & Co.,
Inc., a Delaware corporation (the “Initial Purchaser”), for the benefit of the
Initial Purchaser and its respective direct and indirect transferees.

     This Agreement is made pursuant to the Purchase Agreement (the “Purchase
Agreement”), dated March 28, 2002, by and between the Company and the Initial
Purchaser. In order to induce the Initial Purchaser to enter into the Purchase
Agreement, the Company has agreed to provide the registration rights provided
for in this Agreement to the Initial Purchaser and its direct and indirect
transferees. The execution of this Agreement is a condition to the closing of
the transactions contemplated by the Purchase Agreement.

     The parties hereby agree as follows:

1.     DEFINITIONS

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

     ACCREDITED INVESTOR SHARES: Shares initially resold by the Initial
Purchaser in accordance with the Purchase Agreement to “accredited investors”
(within the meaning of Rule 501 (a) promulgated under the Securities Act) in
accordance with an exemption from the registration requirements of the
Securities Act.

     AFFILIATE: As to any specified Person, (i) any Person directly or
indirectly owning, controlling or holding, with power to vote, ten percent or
more of the outstanding voting securities of such other Person, (ii) any Person
ten percent or more of whose outstanding voting securities are directly or
indirectly owned, controlled or held, with power to vote, by such other Person,
(iii) any Person directly or indirectly controlling, controlled by or under
common control with such other Person, (iv) any executive officer, director,
trustee or general partner of such Person and (v) any legal entity for which
such Person acts as an executive officer, director, trustee or general partner.
An indirect relationship shall include circumstances in which a Person’s
spouse, children, parents, siblings or mother-, father-, sister- or
brother-in-law is or has been associated with a Person.

     BUSINESS DAY: With respect to any act to be performed hereunder, each
Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which
banking institutions in New York, New York or other applicable place where such
act is to occur are authorized or obligated by applicable law, regulation or
order to close.

     CLOSING DATE: March 28, 2002 or such other time or date as the Initial
Purchaser and the Company may agree.

 

 

     COMPANY: Oxford Finance Corporation, a Maryland corporation, and any
successor corporation thereto.

     CONTROLLING PERSON: As defined in Section 6(a) hereof.

     DEMAND REGISTRATION STATEMENT: A registration statement filed by the
Company pursuant to Section 2(b)(ii) of this Agreement.

     END OF SUSPENSION NOTICE: As defined in Section 5(b) hereof.

     EXCHANGE ACT: The Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated by the Commission pursuant thereto.

     HOLDER: Each record owner of any Registrable Shares from time to time,
including the Initial Purchaser and its Affiliates.

     INDEMNIFIED PARTY: As defined in Section 6(c) hereof.

     INDEMNIFYING PARTY: As defined in Section 6(c) hereof.

     INITIAL PURCHASER: As defined in the preamble.

     IPO REGISTRATION STATEMENT: As defined in Section 2 hereof.

     LIABILITIES: As defined in Section 6(a) hereof.

     NASD: The National Association of Securities Dealers, Inc.

     OFFERING MEMORANDUM: The Offering Memorandum of the Company dated March
25, 2002 pursuant to which the Shares are offered and sold.

     PERSON: An individual, partnership, corporation, trust, unincorporated
organization, government or agency or political subdivision thereof, or any
other legal entity.

     PROCEEDING: An action, claim, suit or proceeding (including without
limitation, an investigation or partial proceeding, such as a deposition),
whether commenced or, to the knowledge of the Person subject thereto,
threatened.

     PROSPECTUS: The prospectus included in any Registration Statement,
including any preliminary prospectus, and all other amendments and supplements
to any such prospectus, including post-effective amendments, and all material
incorporated by reference or deemed to be incorporated by reference, if any, in
such prospectus.

     PURCHASE AGREEMENT: As defined in the preamble.

     PURCHASER INDEMNITEE: As defined in Section 6(a) hereof.

     REGISTRABLE SHARES: The Rule 144A Shares, the Accredited Investor Shares
and the Regulation S Shares, upon original issuance thereof and at all times
subsequent

2

 

thereto, including upon the transfer thereof by the original holder or any
subsequent holder and any shares or other securities issued in respect of such
Shares by reason of or in connection with any exchange for or replacement of
such Shares or any stock dividend, stock distribution, stock split, purchase in
any rights offering or in connection with any combination of shares,
recapitalization, merger or consolidation, or any other equity securities
issued pursuant to any other pro rata distribution with respect to the Common
Stock, until, in the case of any such Rule 144A Share, Accredited Investor
Share or Regulation S Share, the earliest to occur of (i) the date on which it
has been registered effectively pursuant to the Securities Act and disposed of
in accordance with the Registration Statement relating to it, (ii) the date on
which either it is distributed to the public pursuant to Rule 144 (or any
similar provision then in effect) or is saleable pursuant to Rule 144 (k)
promulgated by the Commission pursuant to the Securities Act (iii) the date on
which it is sold to the Company or (iv) the date on which all of the Shares
held by such Holder are saleable under Rule 144.

     REGISTRATION EXPENSES: Any and all expenses incident to the performance of
or compliance with this Agreement, including, without limitation: (i) all
Commission, securities exchange, NASD registration, listing, inclusion and
filing fees, (ii) all fees and expenses incurred in connection with compliance
with international, federal or state securities or blue sky laws (including,
without limitation, any registration, listing and filing fees and reasonable
fees and disbursements of counsel in connection with blue sky qualification of
any of the Registrable Shares and the preparation of a blue sky memorandum and
compliance with the rules of the NASD), (iii) all expenses of any Persons in
preparing or assisting in preparing, word processing, duplicating, printing,
delivering and distributing any Registration Statement, any Prospectus, any
amendments or supplements thereto, any underwriting agreements, securities
sales agreements, certificates and any other documents relating to the
performance under and compliance with this Agreement, (iv) all fees and
expenses incurred in connection with the listing or inclusion of any of the
Registrable Shares on any securities exchange or the Nasdaq Stock Market
pursuant to Section 4(n) of this Agreement, (v) the fees and disbursements of
counsel for the Company and of the independent public accountants (including,
without limitation, the expenses of any special audit and “cold comfort”
letters required by or incident to such performance), and reasonable fees and
disbursements of one counsel for all of the selling Holders and (vi) any fees
and disbursements customarily paid in issues and sales of securities (including
the fees and expenses of any experts retained by the Company in connection with
any Registration Statement), but excluding brokers’ or underwriters’ discounts
and commissions, if any, relating to the sale or disposition of Registrable
Shares by a Holder.

     REGISTRATION STATEMENT: Any registration statement of the Company that
covers the resale of Registrable Shares pursuant to the provisions of this
Agreement, including the Prospectus, amendments and supplements to such
registration statement or Prospectus, including pre- and post-effective
amendments, all exhibits thereto and all material incorporated by reference or
deemed to be incorporated by reference, if any, in such registration statement.

     REGULATION S: Regulation S (Rules 901-905) promulgated by the Commission
under the Securities Act, as such rules may be amended from time to time, or
any similar rule or regulation hereafter adopted by the Commission as a
replacement thereto having substantially the same effect as such regulation.

3

 

     REGULATION S SHARES: Shares initially resold by the Initial Purchaser in
accordance with the Purchase Agreement to “non-U.S. persons” (in accordance
with Regulation S) in an “offshore transaction” (in accordance with Regulation
S).

     RULE 144: Rule 144 promulgated by the Commission pursuant to the
Securities Act, as such rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission as a replacement thereto
having substantially the same effect as such rule.

     RULE 144A: Rule 144A promulgated by the Commission pursuant to the
Securities Act, as such rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission as a replacement thereto
having substantially the same effect as such rule.

     RULE 144A SHARES: Shares initially resold by the Initial Purchaser in
accordance with the Purchase Agreement to “qualified institutional buyers” (as
such term is defined in Rule 144A).

     RULE 158: Rule 158 promulgated by the Commission pursuant to the
Securities Act, as such rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission as a replacement thereto
having substantially the same effect as such rule.

     RULE 174: Rule 174 promulgated by the Commission pursuant to the
Securities Act, as such rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission as a replacement thereto
having substantially the same effect as such rule.

     RULE 415: Rule 415 promulgated by the Commission pursuant to the
Securities Act, as such rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission as a replacement thereto
having substantially the same effect as such rule.

     RULE 424: Rule 424, Rule 497 or such other applicable provision
promulgated by the Commission pursuant to the Securities Act, as such rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission as a replacement thereto having substantially the
same effect as such rule.

     RULE 429: Rule 429 promulgated by the Commission pursuant to the
Securities Act, as such rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission as a replacement thereto
having substantially the same effect as such rule.

     SECURITIES ACT: The Securities Act of 1933, as amended, and the rules and
regulations promulgated by the Commission thereunder.

     SHARES: The shares of Common Stock being offered and sold pursuant to the
terms and conditions of the Purchase Agreement.

4

 

     SHELF REGISTRATION STATEMENT: As defined in Section 2 hereof.

     SUSPENSION EVENT: As defined in Section 5(b) hereof.

     SUSPENSION NOTICE: As defined in Section 5(b) hereof.

     UNDERWRITTEN OFFERING: A sale of securities of the Company to an
underwriter or underwriters for reoffering to the public.

2.     REGISTRATION RIGHTS

     As set forth in Section 4 hereof, if the Company files with the
Commission, either (i) a Registration Statement on Form N-2 or such other form
under the Securities Act (other than Form N-14 or Form S-8 or correlative forms
under the Securities Act and other than in connection with an exchange offer or
offering solely to the Company’s shareholders) providing for the initial public
offering of shares of common stock (an “IPO Registration Statement”) or (ii) a
shelf Registration Statement on Form N-2 or such other form under the
Securities Act (other than Form N-14 or S-8 or correlative forms under the
Securities Act and other than in connection with an exchange offer or offering
solely to the Company’s shareholders) then available to the Company (a “Shelf
Registration Statement”), then the Company shall use its best efforts to cause
such IPO Registration Statement or, subject to receipt of an opinion of legal
counsel as described in Section 2(b) below, Shelf Registration Statement, to
provide for the resale by the Holders of any and all Registrable Shares
(subject to 2(a)(ii) hereof). If no IPO Registration Statement or Shelf
Registration Statement has been filed with the Commission and declared
effective by the Commission within twelve (12) months from the date of this
Agreement, the Company shall use its best efforts to register any and all
Registrable Shares as soon as practicable after such date.

     (a)  IPO REGISTRATION. If the Company files an IPO Registration Statement,
the Company will notify each Holder of the proposed filing and afford each
Holder of Registrable Shares an opportunity to include in such IPO Registration
Statement all or any part of the Registrable Shares then held by such Holder,
subject to clause (ii) below. Each Holder desiring to include in any such IPO
Registration Statement all or part of the Registrable Shares held by such
Holder shall, within twenty (20) days after receipt of the above-described
notice from the Company, so notify the Company in writing, and in such notice
shall inform the Company of the number of Registrable Securities such Holder
wishes to include in such IPO Registration Statement.

		
	 	     (i) RIGHT TO TERMINATE REGISTRATION. The Company shall have the
right to terminate or withdraw any IPO Registration Statement initiated
by it referred to in this Section 2(a) prior to the effectiveness of such
registration whether or not any Holder has elected to include Registrable
Shares in such registration.

		
	 	     (ii) UNDERWRITING. If an IPO Registration Statement under which the
Company gives notice under this Section 2(a) is for an Underwritten
Offering, then the Company shall so advise the Holders of Registrable
Shares. In such event, the right of any such Holder’s Registrable Shares
to be included in a registration pursuant to this

5

 

		
	 	Section 2(a) shall be conditioned upon such Holder’s participation
in such underwriting and the inclusion of such Holder’s Registrable
Shares in the underwriting to the extent provided herein. All Holders
proposing to distribute their Registrable Shares through such
underwriting shall enter into an underwriting agreement in customary form
with the managing underwriter(s) selected for such underwriting and
complete and execute any questionnaires, powers of attorney, indemnities,
securities escrow agreements and other documents reasonably required
under the terms of such underwriting, and furnish to the Company such
information as the Company may reasonably request in writing for
inclusion in the Registration Statement; PROVIDED, HOWEVER, that no
Holder shall be required to make any representations or warranties to or
agreements with the Company or the underwriters other than
representations, warranties or agreements regarding such Holder and such
Holder’s intended method of distribution and any other representation
required by law. Notwithstanding any other provision of this Agreement,
if the managing underwriter(s) determine(s) in good faith that inclusion
of all of the Registrable Shares would interfere with the successful
marketing of all of the shares desired to be included by the Company,
then the managing underwriter(s) may exclude any or all of the
Registrable Shares from the registration and the amount of Registrable
Shares determined by the underwriter to be includable in the underwriting
shall be allocated among all Holders pro rata on the basis of Registrable
Shares offered for such registration by each Holder electing to
participate in such registration. If any Holder disapproves of the terms
of any such underwriting, such Holder may elect to withdraw therefrom by
written notice to the Company and the underwriter, delivered at least ten
(10) Business Days prior to the effective date of the Registration
Statement. Any Registrable Shares excluded or withdrawn from such
underwriting shall be excluded and withdrawn from the registration.

		
	 	     (iii) HOLD-BACK AGREEMENT. By electing to include Registrable Shares
in any registration pursuant to this Section 2(a), the Holder of the
Registrable Shares shall be deemed to have agreed not to effect any
public sale or distribution of securities of the Company of the same or
similar class or classes of the securities included in the Registration
Statement or any securities convertible into or exchangeable or
exercisable for such securities, including a sale pursuant to Rule 144 or
Rule 144A under the Securities Act, during such periods as reasonably
requested (but in no event for a period longer than thirty (30) days
prior to and one hundred eighty (180) days following the effective date
of the IPO Registration Statement) by the representatives of the
underwriters, if an Underwritten Offering, or by the Company in any other
registration.

		
	 	     (iv) REGISTRABLE SHARES NOT INCLUDED UNDER IPO REGISTRATION
STATEMENT. If (a) the IPO Registration Statement is withdrawn prior to
the distribution of all Registrable Shares registered thereunder, (b) the
underwriters exercise their right to exclude any Registrable Shares from
the IPO Registration Statement, or (c) any Registrable Shares are
otherwise not offered an opportunity to be registered under and
distributed pursuant to the IPO Registration Statement, then the Company
will, subject to receipt of an opinion of counsel as described in 2(b)(i)
below, be obligated to file a Shelf Registration Statement relating to
any Registrable Shares not included in and distributed pursuant to the
IPO Registration Statement (y) within thirty (30) days of the withdrawal
or abandonment of the offering

6

 

		
	 	pursuant to the IPO Registration Statement or (z) within one hundred
eighty (180) days of the consummation of the offering pursuant to the IPO
Registration Statement.

     (b)  SHELF REGISTRATION. (i) If the Company elects to file a Shelf
Registration Statement or is otherwise required to file a Shelf Registration
Statement pursuant to this Section 2, it shall use its best efforts to cause
such Shelf Registration Statement to be declared effective by the Commission as
soon as practicable. Any Shelf Registration Statement shall provide for the
resale from time of time, and pursuant to any method or combination of methods
legally available (including, without limitation, an Underwritten Offering, a
direct sale to purchasers, a sale through brokers or agents, or a sale over the
internet) by the Holders of any and all Registrable Shares. Anything contained
in this Agreement to the contrary notwithstanding, the Company shall not be
obligated to file any Shelf Registration Statement, nor be obligated to use
best efforts to cause any Shelf Registration Statement to be declared
effective, nor have any other obligation under this Agreement with respect
thereto, unless the Company receives an opinion of its legal counsel in such
form, and dated as of such date, as the Company may request, to the effect that
the filing of the Shelf Registration Statement and the use of the Shelf
Registration Statement to register the Shares by the Company as contemplated by
this Agreement, in each case, are in compliance with the Securities Act and any
other applicable federal securities laws, rules or regulations. In the event
the Company becomes obligated to take any action with respect to any Shelf
Registration Statement, the Company shall promptly request the legal opinion
described in the previous sentence. In the event such legal opinion is not
provided to the Company within ten (10) business days after the date on which
the Company requested such opinion, then the Company shall, in lieu of all of
its obligations under this Agreement with respect to such Shelf Registration
Statement, perform as required by paragraph (ii) hereof.

     (ii)  This paragraph shall only be applicable in the event the Company does
not receive the legal opinion required by paragraph (i) immediately above. If
the Company receives from any Holder a written request that the Company effect
a registration pursuant to this paragraph under the Securities Act with respect
to Registrable Shares, the Company will, as expeditiously as practicable,
notify in writing all the Holders of such request and use its best efforts to
effect a registration of the Registrable Shares requested to be included in
such registration; provided, however, that, anything to the contrary herein
notwithstanding, (A) such registration shall be part of a firm commitment
underwritten public offering with underwriters reasonably acceptable to the
Company, and (B) such registration shall not be made on a delayed or continuous
basis pursuant to Rule 415 of the Securities Act or successor Rule, including
but not limited to a Shelf Registration Statement without the consent of the
Company. Anything to the contrary therein notwithstanding, the following
provisions of this Agreement shall apply to a registration under this
paragraph: 2(a)(iii), 2(c), 4, 5 and 6.

     (c)  EXPENSES. The Company shall pay all Registration Expenses in
connection with the registration of the Registrable Shares pursuant to this
Agreement. Each Holder participating in a registration pursuant to this Section
2 shall bear such Holders’ proportionate share (based on the total number of
Registrable Shares sold in such registration) of all discounts, commissions or
other amounts payable to underwriters or brokers in connection with a
registration of Registrable Shares pursuant to this Agreement.

7

 

3.     RULES 144 AND 144A REPORTING

     With a view to making available the benefits of certain rules and
regulations of the Commission that may at any time permit the sale of the
Registrable Shares to the public without registration, the Company agrees to:

     (a)  make and keep public information available, as those terms are
understood and defined in Rule 144 under the Securities Act, at all times after
the effective date of the registration statement under the Exchange Act, or the
first registration statement, as applicable, filed by the Company is declared
effective and until such public information is no longer legally required to
make the Shares saleable under Rule 144;

     (b)  use its reasonable best efforts to file with the Commission in a
timely manner all reports and other documents required to be filed by the
Company under the Securities Act and the Exchange Act (at any time after it has
become subject to such reporting requirements);

     (c)  so long as a Holder owns any Registrable Shares, if the Company is not
required to file reports and other documents under the Securities Act and the
Exchange Act, it will make available other information as required by, and so
long as necessary to permit sales of Registrable Shares pursuant to, Rule 144
or Rule 144A; and

     (d)  so long as a Holder owns any Registrable Shares, to furnish to the
Holder promptly upon request a written statement by the Company as to its
compliance with the reporting requirements of Rule 144 (at any time after
ninety (90) days after the effective date of the Registration Statement filed
by the Company under the Exchange Act, or the first registration statement, as
applicable), and of the Securities Act and the Exchange Act (at any time after
it has become subject to the reporting requirements of the Exchange Act), a
copy of the most recent annual or quarterly report of the Company, and such
other reports and documents of the Company, and take such further actions, as a
Holder may reasonably request in availing itself of any rule or regulation of
the Commission allowing a Holder to sell any such Registrable Shares without
registration.

4.     REGISTRATION PROCEDURES

     In connection with the obligations of the Company with respect to any
registration and pursuant to the terms and conditions of this Agreement, the
Company shall use its best efforts to effect or cause to be effected the
registration of the Registrable Shares under the Securities Act to permit the
sale of such Registrable Shares by the Holder or Holders in accordance with the
Holder’s or Holders’ intended method or methods of distribution, and the
Company shall:

     (a)  prepare and file with the Commission, as specified in this Agreement,
a Registration Statement, which Registration Statement shall comply as to form
in all material respects with the requirements of the applicable form and
include all financial statements required by the Commission to be filed
therewith, and use its best efforts to cause such Registration Statement to
become effective as soon as practicable after filing and to remain effective,
subject to Section 5 hereof, until the earlier of (i) the date on which all
such Registrable Shares are sold in accordance with the intended distribution
of such Shares, (ii) none

8

 

of the Shares are Registrable Shares or (iii) the second anniversary of
the effective date of such Registration Statement (subject to extension as
provided in Section 5(c) hereof), PROVIDED, HOWEVER, that the Company shall not
be required to cause any IPO Registration Statement or Demand Registration
Statement to remain effective for any period longer than ninety (90) days
following the effective date of such IPO Registration Statement or Demand
Registration Statement (subject to extension as provided in Section 5(c)
hereof);

     (b)  subject to Section 4(i) hereof, (i) prepare and file with the
Commission such amendments and post-effective amendments to each such
Registration Statement as may be necessary to keep such Registration Statement
effective for the period described in Section 4(a) hereof; (ii) cause each
Prospectus contained therein to be supplemented by any required Prospectus
supplement, and as so supplemented to be filed pursuant to Rule 497 or any
similar rule that may be adopted under the Securities Act; and (iii) comply
with the provisions of the Securities Act with respect to the disposition of
all securities covered by each Registration Statement during the applicable
period in accordance with the intended method or methods of distribution by the
selling Holders thereof;

     (c)  furnish to the Holders of Registrable Shares, 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 may
reasonably request, in order to facilitate the public sale or other disposition
of the Registrable Shares; the Company consents to the use of such Prospectus,
including each preliminary Prospectus, by the Holders of Registrable Shares, if
any, in connection with the offering and sale of the Registrable Shares covered
by any such Prospectus;

     (d)  use its best efforts to register or qualify, or obtain exemption from
registration or qualification for, all Registrable Shares by the time the
applicable Registration Statement is declared effective by the Commission under
all applicable state securities or “blue sky” laws of such jurisdictions as the
Initial Purchaser or any Holder of Registrable Shares covered by a Registration
Statement shall reasonably request in writing, keep each such registration or
qualification or exemption effective during the period such Registration
Statement is required to be kept effective pursuant to Section 4(a) and do any
and all other acts and things that may be reasonably necessary or advisable to
enable such Holder to consummate the disposition in each such jurisdiction of
such Registrable Shares owned by such Holder; PROVIDED, HOWEVER, that the
Company shall not be required to (i) qualify generally to do business in any
jurisdiction or to register as a broker or dealer in such jurisdiction where it
would not otherwise be required to qualify but for this Section 4(d) and except
as may be required by the Securities Act, (ii) subject itself to taxation in
any such jurisdiction, or (iii) submit to the general service of process in any
such jurisdiction;

     (e)  use its best efforts to cause all Registrable Shares covered by such
Registration Statement to be registered and approved by such other U.S.
governmental agencies or authorities as may be necessary to enable the Holders
thereof to consummate the disposition of such Registrable Shares;

     (f)  notify the Initial Purchaser and each Holder of Registrable Shares
promptly and, if requested by the Initial Purchaser or any Holder, confirm such
advice in writing (i) when

9

 

a Registration Statement has become effective and when any post-effective
amendments and supplements thereto become effective, (ii) of the issuance by
the Commission or any state securities authority of any stop order suspending
the effectiveness of a Registration Statement or the initiation of any
proceedings for that purpose, (iii) of any request by the Commission or any
other federal or state governmental authority for amendments or supplements to
a Registration Statement or related Prospectus or for additional information,
(iv) of the happening of any event during the period a Registration Statement
is effective as a result of which such Registration Statement or the related
Prospectus or any document incorporated by reference therein contains any
untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein not
misleading (which information shall be accompanied by an instruction to suspend
the use of the Prospectus until the requisite changes have been made) and (v)
at the request of any such Holder, promptly to furnish to such Holder a
reasonable number of copies of a supplement to or an amendment of such
Prospectus as may be necessary so that, as thereafter delivered to the
purchaser of such securities, such Prospectus shall not include an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading;

     (g)  make every reasonable effort to avoid the issuance of, or if issued,
to obtain the withdrawal of, any order enjoining or suspending the use or
effectiveness of a Registration Statement or suspending of the qualification
(or exemption from qualification) of any of the Registrable Shares for sale in
any jurisdiction, as promptly as practicable;

     (h)  upon request, furnish to each requesting Holder of Registrable Shares,
without charge, at least one conformed copy of each Registration Statement and
any post-effective amendment or supplement thereto (without documents
incorporated therein by reference or exhibits thereto, unless requested);

     (i)  except as provided in Section 5, upon the occurrence of any event
contemplated by Section 4(f)(iv) hereof, use its best efforts to promptly
prepare 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 Registrable Shares, such Prospectus will not contain any
untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading;

     (j)  if requested by the representative of the underwriters, if any, or any
Holders of Registrable Shares being sold in connection with such offering, (i)
promptly incorporate in a Prospectus supplement or post-effective amendment
such information as the representative of the underwriters, if any, or such
Holders indicate relates to them or otherwise reasonably request be included
therein and (ii) make all required filings of such Prospectus supplement or
such post-effective amendment as soon as practicable after the Company has
received notification of the matters to be incorporated in such Prospectus
supplement or post-effective amendment;

     (k)  in the case of an Underwritten Offering, use its best efforts to
furnish to each Holder of Registrable Shares covered by such Registration
Statement and the underwriters a signed counterpart, addressed to each such
Holder and the underwriters, of: (i) an opinion of

10

 

counsel for the Company, dated the date of each closing under the
underwriting agreement, reasonably satisfactory to such Holder; and (ii) a
“comfort” letter, dated the effective date of such Registration Statement and
the date of each closing under the underwriting agreement, signed by the
independent public accountants who have certified the Company’s financial
statements included in such Registration Statement, covering substantially the
same matters with respect to such Registration Statement (and the Prospectus
included therein) and with respect to events subsequent to the date of such
financial statements, as are customarily covered in accountants’ letters
delivered to underwriters in underwritten public offerings of securities and
such other financial matters as such Holder and the underwriters may reasonably
request;

     (l)  enter into customary agreements (including in the case of an
Underwritten Offering, an underwriting agreement in customary form) and take
all other action in connection therewith in order to expedite or facilitate the
distribution of the Registrable Shares included in such Registration Statement
and, in the case of an Underwritten Offering, make representations and
warranties to the Holders of Registrable Shares covered by such Registration
Statement and to the underwriters in such form and scope as are customarily
made by issuers to underwriters in underwritten offerings and confirm the same
to the extent customary if and when requested;

     (m)  make available for inspection by representatives of the Holders of the
Registrable Shares and the representative of any underwriters participating in
any disposition pursuant to a Registration Statement and any special counsel or
accountants retained by such Holders or underwriters, all financial and other
records, pertinent corporate 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 representatives, the
representative of the underwriters, counsel thereto or accountants in
connection with a Registration Statement; PROVIDED, HOWEVER, that such records,
documents or information that the Company determines, in good faith, to be
confidential and notifies such representatives, representative of the
underwriters, counsel thereto or accountants are confidential shall not be
disclosed by the representatives, representative of the underwriters, counsel
thereto or accountants unless (i) the disclosure of such records, documents or
information is necessary to avoid or correct a misstatement or omission in a
Registration Statement or Prospectus, (ii) the release of such records,
documents or information is ordered pursuant to a subpoena or other order from
a court of competent jurisdiction, or (iii) such records, documents or
information have been generally made available to the public;

     (n)  use its best efforts (including, without limitation, seeking to cure
any deficiencies cited by the exchange or market in the Company’s listing or
inclusion application) to list or include all Registrable Shares on the
American Stock Exchange or the Nasdaq Stock Market (unless the Company
qualifies and chooses to list all Registrable Shares on the New York Stock
Exchange, in which event the Company shall use its best efforts to list all
Registrable Shares on the New York Stock Exchange),to the extent the Company is
eligible for such listing;

     (o)  prepare and file in a timely manner all documents and reports required
by the Exchange Act and, to the extent the Company’s obligation to file such
reports pursuant to Section 15(d) of the Exchange Act expires prior to the
expiration of the effectiveness period of the Registration Statement as
required by Section 4(a) hereof, the Company shall register the

11

 

Registrable Shares under the Exchange Act and shall maintain such
registration through the effectiveness period required by Section 4(a) hereof;

     (p)  provide a CUSIP number for all Registrable Shares, not later than the
effective date of the Registration Statement;

     (q)  (i) otherwise use its reasonable best efforts to comply with all
applicable rules and regulations of the Commission, (ii) make generally
available to its stockholders, as soon as reasonably practicable, earnings
statements covering at least 12 months that satisfy the provisions of Section
11 (a) of the Securities Act and Rule 158 (or any similar rule promulgated
under the Securities Act ) thereunder, no later than forty-five (45) days after
the end of each fiscal year of the Company and (iii) not file any Registration
Statement or Prospectus or amendment or supplement to such Registration
Statement or Prospectus to which any Holder of Registrable Shares covered by
any Registration Statement shall have reasonably objected on the grounds that
such Registration Statement or Prospectus or amendment or supplement does not
comply in all material respects with the requirements of the Securities Act,
such Holder having been furnished with a copy thereof at least two (2) Business
Days prior to the filing thereof;

     (r)  provide and cause to be maintained a registrar and transfer agent for
all Registrable Shares covered by any Registration Statement from and after a
date not later than the effective date of such Registration Statement;

     (s)  in connection with any sale or transfer of the Registrable Shares
(whether or not pursuant to a Registration Statement) that will result in the
securities being delivered no longer being Registrable Shares, cooperate with
the Holders and the representative of the underwriters, if any, to facilitate
the timely preparation and delivery of certificates representing the
Registrable Shares to be sold, which certificates shall not bear any transfer
restrictive legends and to enable such Registrable Shares to be in such
denominations and registered in such names as the representative of the
underwriters, if any, or the Holders may request at least two (2) Business Days
prior to any sale of the Registrable Shares; and

     (t)  upon effectiveness of the Registration Statement filed under the
Exchange Act pursuant to this Agreement or the first registration statement, as
applicable, the Company will take such actions and make such filings as are
necessary to effect the registration of the Common Stock under the Exchange Act
simultaneously with or immediately following the effectiveness of the
Registration Statement.

     The Company may require the Holders of Registrable Shares to furnish to
the Company such information regarding the proposed distribution by such Holder
of such Registrable Shares as the Company may from time to time reasonably
request in writing or as shall be required to effect the registration of the
Registrable Shares and no Holder shall be entitled to be named as a selling
stockholder in any Registration Statement and no Holder shall be entitled to
use the Prospectus forming a part thereof if such Holder does not provide such
information to the Company.

     Each Holder agrees that, upon receipt of any notice from the Company of
the happening of any event of the kind described in Section 4(f)(iii) or
4(f)(iv) hereof, such Holder

12

 

will immediately discontinue disposition of Registrable Shares pursuant to
a Registration Statement until such Holder’s receipt of the copies of the
supplemented or amended Prospectus. If so directed by the Company, such Holder
will deliver to the Company (at the expense of the Company) all copies in its
possession, other than permanent file copies then in such Holder’s possession,
of the Prospectus covering such Registrable Shares current at the time of
receipt of such notice.

5.     BLACK-OUT PERIOD

     (a)  Subject to the provisions of this Section 5 and a good faith
determination by a majority of the Board of Directors of the Company that it is
in the best interests of the Company to suspend the use of the Registration
Statement, following the effectiveness of a Registration Statement (and the
filings with any international, federal or state securities commissions), the
Company, by written notice to the Initial Purchaser and to the Holders, may
direct the Holders to suspend sales of the Registrable Shares pursuant to the
Registration Statement for such times as the Company reasonably may determine
is necessary and advisable, if any of the following events shall occur: (i) an
Underwritten Offering by the Company where the Company is advised by the
representative of the underwriters for such Underwritten Offering that the sale
of Registrable Shares pursuant to the Registration Statement would have a
material adverse effect on the Company’s primary offering; or (ii) pending
negotiations relating to, or the consummation of, a transaction or the
occurrence of an event (x) that would require additional disclosure of material
information by the Company in the Registration Statement (or such filings) and
which has not been so disclosed, (y) as to which the Company has a bona fide
business purpose for preserving confidentiality, or (z) that renders the
Company unable to comply with Commission requirements, in each case under
circumstances that would make it impractical or inadvisable to cause the
Registration Statement (or such filings) to become effective or to promptly
amend or supplement the Registration Statement on a post-effective basis, as
applicable. Upon the occurrence of any such suspension, the Company shall use
its best efforts to cause the Registration Statement to become effective or to
promptly amend or supplement the Registration Statement on a post-effective
basis or to take such action as is necessary to make resumed use of the
Registration Statement compatible with the Company’s best interests, as
applicable, so as to permit the Holders to resume sales of the Registrable
Shares as soon as practicable.

     (b)  In the case of an event that causes the Company to suspend the
effectiveness of a Registration Statement (a “Suspension Event”), the Company
shall give written notice (a “Suspension Notice”) to the Initial Purchaser and
to the Holders to suspend sales of the Registrable Shares and such notice shall
state that such suspension shall continue only for so long as the Suspension
Event or its effect is continuing and the Company is taking all reasonable
steps to terminate suspension of the effectiveness of the Registration
Statement as promptly as practicable. The Holders shall not effect any sales of
the Registrable Shares pursuant to such Registration Statement (or such
filings) at any time after it has received a Suspension Notice from the Company
and prior to receipt of an End of Suspension Notice. If so directed by the
Company, each Holder will deliver to the Company (at the expense of the
Company) all copies other than permanent file copies then in such Holder’s
possession of the Prospectus covering the Registrable Shares at the time of
receipt of the Suspension Notice. The Holders may recommence effecting sales of
the Registrable Shares pursuant to the Registration Statement (or such filings)
following further notice to such effect (an “End of Suspension Notice”) from
the

13

 

Company, which End of Suspension Notice shall be given by the Company to
the Holders and the Initial Purchaser in the manner described above promptly
following the conclusion of any Suspension Event and its effect.

     (c)  If the Company shall give a Suspension Notice pursuant to this Section
5, the Company agrees that it shall extend the period of time during which the
Registration Statement shall be maintained effective pursuant to this Agreement
by the number of days during the period from the date of the giving of the
Suspension Notice to and including the date when Holders shall have received
the End of Suspension Notice and copies of the supplemented or amended
Prospectus necessary to resume sales.

6.     INDEMNIFICATION AND CONTRIBUTION

     (a)  The Company agrees to indemnify and hold harmless (i) the Initial
Purchaser and each Holder of Registrable Shares, (ii) each Person, if any, who
controls (within the meaning of Section 15 of the Securities Act or Section
20(a) of the Exchange Act), any such Person (any of the Persons referred to in
this clause (ii) being hereinafter referred to as a “Controlling Person”), and
(iii) the respective officers, directors, partners, employees, representatives
and agents of any such Person or any Controlling Person (any Person referred to
in clause (i), (ii) or (iii) may hereinafter be referred to as an “Purchaser
Indemnitee”), to the fullest extent lawful, from and against any and all
losses, claims, damages, judgments, actions, out-of-pocket expenses and other
liabilities (the “Liabilities”), including without limitation and as incurred,
reimbursement of all reasonable costs of investigating, preparing, pursuing or
defending any claim or action, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, including the reasonable
fees and expenses of counsel to any Purchaser Indemnitee, joint or several,
directly or indirectly related to, based upon, arising out of or in connection
with any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement or Prospectus (as amended or
supplemented if the Company shall have furnished to such Purchaser Indemnitee
any amendments or supplements thereto), or any preliminary Prospectus or any
other document used to sell the Shares, or any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they
were made, not misleading, except insofar as such Liabilities arise out of or
are based upon (i) any untrue statement or omission or alleged untrue statement
or omission made in reliance upon and in conformity with information relating
to any Purchaser Indemnitee furnished to the Company or any underwriter in
writing by such Purchaser Indemnitee expressly for use therein, or (h) any
untrue statement contained in or omission from a preliminary Prospectus if a
copy of the Prospectus (as then amended or supplemented, if the Company shall
have furnished to or on behalf of the Holder participating in the distribution
relating to the relevant Registration Statement any amendments or supplements
thereto) was not sent or given by or on behalf of such Holder to the Person
asserting any such Liabilities who purchased Shares, if such Prospectus (or
Prospectus as amended or supplemented) is required by law to be sent or given
at or prior to the written confirmation of the sale of such Shares to such
Person and the untrue statement contained in or omission from such preliminary
Prospectus was corrected in the Prospectus (or the Prospectus as amended or
supplemented). The Company shall notify the Holders promptly of the
institution, threat or assertion of any claim, proceeding (including any
governmental investigation), or litigation of which it shall have become aware
in connection with the matters

14

 

addressed by this Agreement which involves the Company or a Purchaser
Indemnitee. The indemnity provided for herein shall remain in full force and
effect regardless of any investigation made by or on behalf of any Purchaser
Indemnitee.

     (b)  In connection with any Registration Statement in which a Holder of
Registrable Share is participating, such Holder agrees, severally and not
jointly, to indemnify and hold harmless the Company, each Person who controls
the Company within the meaning of Section 15 of the Securities Act or Section
20(a) of the Exchange Act and the respective partners, directors, officers,
members, representatives, employees and agents of such Person or Controlling
Person to the same extent as the foregoing indemnity from the Company to each
Purchaser Indemnitee, but only with reference to untrue statements or omissions
or alleged untrue statements or omissions made in reliance upon and in strict
conformity with information relating to such Purchaser Indemnitee furnished to
the Company in writing by such Purchaser Indemnitee expressly for use in any
Registration Statement or Prospectus, any amendment or supplement thereto, or
any preliminary Prospectus. The liability of any Purchaser Indemnitee pursuant
to this paragraph shall in no event exceed the net proceeds received by such
Purchaser Indemnitee from sales of Registrable Shares giving rise to such
obligations.

     (c)  If any suit, action, proceeding (including any governmental or
regulatory investigation), claim or demand shall be brought or asserted against
any Person in respect of which indemnity may be sought pursuant to paragraph
(a) or (b) above, such Person (the “Indemnified Party”), shall promptly notify
the Person against whom such indemnity may be sought (the “Indemnifying
Party”), in writing of the commencement thereof (but the failure to so notify
an Indemnifying Party shall not relieve it from any liability which it may have
under this Section 6, except to the extent the Indemnifying Party is materially
prejudiced by the failure to give notice), 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 reasonably designate in such proceeding and shall pay
the reasonable fees and expenses actually incurred by such counsel related to
such proceeding. Notwithstanding the foregoing, 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 shall have mutually
agreed in writing to the contrary, (ii) the Indemnifying Party failed within a
reasonable time after notice of commencement of the action to assume the
defense and employ counsel reasonably satisfactory to the Indemnified Party,
(iii) the Indemnifying Party and its counsel do not actively and vigorously
pursue the defense of such action or (iv) the named parties to any such action
(including any impleaded parties), include both such Indemnified Party and the
Indemnifying Party, or any affiliate of the Indemnifying Party, and such
Indemnified Party shall have been reasonably advised by counsel that, either
(x) there may be one or more legal defenses available to it which are different
from or additional to those available to the Indemnifying Party or such
affiliate of the Indemnifying Party or (y) a conflict may exist between such
Indemnified Party and the Indemnifying Party or such affiliate of the
Indemnifying Party (in which case the Indemnifying Party shall not have the
right to assume nor direct the defense of such action on behalf of such
Indemnified Party, it being understood, however, that the Indemnifying Party
shall not, in connection with any one such action or separate but substantially
similar or related actions in the same jurisdiction arising out of the same
general allegations or circumstances, be liable for the fees and expenses of
more than one separate firm

15

 

of attorneys (in addition to any local counsel), for all such indemnified
parties, which firm shall be designated in writing by those indemnified parties
who sold a majority of the Registrable Shares sold by all such indemnified
parties and any such separate firm for the Company, the directors, the officers
and such control Persons of the Company as shall be designated in writing by
the Company. The Indemnifying Party shall not be liable for any settlement of
any proceeding effected without its written consent, which consent shall not be
unreasonably withheld, but if settled with such consent or if there be a final
judgment for the plaintiff, the Indemnifying Party agrees to indemnify any
Indemnified Party from and against any 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 any Indemnified Party is or could
have been a party and indemnity could have been sought hereunder by such
Indemnified Party, unless such settlement includes an unconditional release of
such Indemnified Party from all liability on claims that are the subject matter
of such proceeding.

     (d)  If the indemnification provided for in paragraphs (a) and (b) of this
Section 6 is for any reason held to be unavailable to an Indemnified Party in
respect of any Liabilities referred to therein (other than by reason of the
exceptions provided therein) or is insufficient to hold harmless a party
indemnified thereunder, then each Indemnifying Party under such paragraphs, 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
Liabilities (i) in such proportion as is appropriate to reflect the relative
benefits of the Indemnified Party on the one hand and the Indemnifying
Party(ies) on the other in connection with the statements or omissions that
resulted in such Liabilities, or (ii) if the allocation provided by clause (i)
above is not permitted by applicable law, in such proportion as is appropriate
to reflect not only the relative benefits referred to in clause (i) above but
also the relative fault of the Indemnifying Party(ies) and the Indemnified
Party, as well as any other relevant equitable considerations. The relative
fault of the Company on the one hand and any Purchaser Indemnitees on the other
shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission
to state a material fact relates to information supplied by the Company or by
such Purchaser Indemnitees and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or
omission.

     (e)  The parties agree that it would not be just and equitable if
contribution pursuant to this Section 6 were determined by PRO RATA allocation
(even if such indemnified parties were treated as one entity for such purpose),
or by any other method of allocation that does not take account of the
equitable considerations referred to in paragraph 6(d) above. The amount paid
or payable by an Indemnified Party as a result of any Liabilities referred to
paragraph 6(d) shall be deemed to include, subject to the limitations set forth
above, any reasonable legal or other expenses actually incurred by such
Indemnified Party in connection with investigating or defending any such action
or claim. Notwithstanding the provisions of this Section 6, in no event shall a
Purchaser Indemnitee be required to contribute any amount in excess of the
amount by which proceeds received by such Purchaser Indemnitee from sales of
Registrable Shares exceeds the amount of any damages that such Purchaser
Indemnitee has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. For purposes of this
Section 6, each Person, if any, who controls (within the

16

 

meaning of Section 15 of the Act or Section 20(a) of the Exchange Act) the
Initial Purchaser or a Holder of Registrable Shares shall have the same rights
to contribution as such Initial Purchaser or Holder, as the case may be, and
each Person, if any, who controls (within the meaning of Section 15 of the Act
or Section 20(a) of the Exchange Act) the Company, and each officer, director,
partner, employee, representative, agent or manager of the Company shall have
the same rights to contribution as the Company. Any party entitled to
contribution will, promptly after receipt of notice of commencement of any
action, suit or proceeding against such party in respect of which a claim for
contribution may be made against another party or parties, notify each party or
parties from whom contribution may be sought, but the omission to so notify
such party or parties shall not relieve the party or parties from whom
contribution may be sought from any obligation it or they may have under this
Section 6 or otherwise, except to the extent that any party is materially
prejudiced by the failure to give notice. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11 (f) of the Securities Act),
shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.

     (f)  The indemnity and contribution agreements contained in this Section 6
will be in addition to any liability which the indemnifying parties may
otherwise have to the indemnified parties referred to above. The Purchaser
Indemnitee’s obligations to contribute pursuant to this Section 6 are several
in proportion to the respective number of Shares sold by each of the Purchaser
Indemnitees hereunder and not joint.

7.     MARKET STAND-OFF AGREEMENT

     Each Holder hereby agrees that it shall not, to the extent requested by
the Company or an underwriter of securities of the Company, sell or otherwise
transfer or dispose of any Registrable Shares or other shares of Common Stock
of the Company or any securities convertible into or exchangeable or
exercisable for shares of Common Stock of the Company then owned by such Holder
(other than to donees or partners of the Holder who agree to be similarly
bound) within thirty (30) days prior to and one hundred eighty (180) days
following either (x) the effective date of an IPO Registration Statement of the
Company filed under the Securities Act or (y) the date of an Underwritten
Offering pursuant to a Shelf Registration Statement of the Company filed under
the Securities Act; PROVIDED, HOWEVER, that:

     (a)  with respect to the 180-day restriction that follows the effective
date of an IPO Registration Statement, such agreement shall be applicable only
to the first such Registration Statement of the Company that covers securities
to be sold on its behalf to the public in an Underwritten Offering but not to
Registrable Shares sold pursuant to such Registration Statement; and

     (b)  all executive officers and directors of the Company then holding
shares of Common Stock of the Company or securities convertible into or
exchangeable or exercisable for shares of Common Stock of the Company enter
into similar agreements.

     In order to enforce the foregoing covenant, the Company shall have the
right to place restrictive legends on the certificates representing the
securities subject to this Section 7 and to impose stop transfer instructions
with respect to the Registrable Shares and such other

17

 

securities of each Holder (and the securities of every other Person
subject to the foregoing restriction) until the end of such period.

8.     TERMINATION OF THE COMPANY’S OBLIGATION

     The Company shall have no obligation pursuant to this Agreement with
respect to any Registrable Shares proposed to be sold by a Holder in a
registration pursuant to this Agreement if, in the opinion of counsel to the
Company, all such Registrable Shares proposed to be sold by a Holder may be
sold in a three-month period without registration under the Securities Act
pursuant to Rule 144 under the Securities Act.

9.     LIMITATIONS ON SUBSEQUENT REGISTRATION RIGHTS

     From and after the date of this Agreement, the Company shall not, without
the prior written consent of the Holders of a majority of the then outstanding
Registrable Shares, enter into any agreement with any holder or prospective
holder of any securities of the Company that would allow such holder or
prospective holder (a) to include such securities in any Registration Statement
filed pursuant to the terms hereof, unless under the terms of such agreement,
such holder or prospective holder may include such securities in any such
registration only to the extent that the inclusion of his securities will not
reduce the amount of Registrable Shares of the Holders that is included, or (b)
to have his securities registered on a registration statement that could be
declared effective prior to, or within one hundred twenty (120) days of, the
effective date of any Registration Statement filed pursuant to this Agreement.

10.     MISCELLANEOUS

     (a)  REMEDIES. In the event of a breach by the Company of any of its
obligations under this Agreement, each Holder of Registrable Shares, in
addition to being entitled to exercise all rights provided herein or, in the
case of the Initial Purchaser, in the Offering Purchase Agreement, or granted
by law, including recovery of damages, will be entitled to specific performance
of its rights under this Agreement. Subject to Section 6, the Company agrees
that monetary damages would not be adequate compensation for any loss incurred
by reason of a breach by it of any of the provisions of this Agreement and
hereby further agree that, in the event of any action for specific performance
in respect of such breach, it shall waive the defense that a remedy at law
would be adequate.

     (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 or departures from the provisions hereof may not be
given, without the written consent of the Company and Holders beneficially
owning not less than fifty percent (50%) of the then outstanding Registrable
Shares; PROVIDED, HOWEVER, that for purposes of this Agreement, Registrable
Shares that are owned, directly or indirectly, by an Affiliate of the Company
shall not be deemed to be outstanding. Notwithstanding the foregoing, a waiver
or consent to or departure from the provisions hereof with respect to a matter
that relates exclusively to the rights of a Holder whose securities are being
sold pursuant to a Registration Statement and that does not directly or
indirectly affect, impair, limit or compromise the rights of other Holders may
be given by such Holder; PROVIDED that the provisions of this sentence

18

 

may not be amended, modified or supplemented except in accordance with the
provisions of the immediately preceding sentence.

     (c)  NOTICES. All notices and other communications, provided for or
permitted hereunder shall be made in writing by delivered by facsimile (with
receipt confirmed), overnight courier or registered or certified mail, return
receipt requested, or by telegram:

		
	 	     (i) if to a Holder of Registrable Shares, at the most current
address given by the transfer agent and registrar of the Shares to the
Company; and

		
	 	     (ii) if to the Company at the offices of the Company at 133 N.
Fairfax Street, Alexandria, VA 22314, Attention: J. Alden Philbrick, IV;
(facsimile: 703/519-4910).

     (d)  SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties hereto,
including, without limitation and without the need for an express assignment or
assumption, subsequent Holders of Registrable Shares. The Company agrees that
the Holders shall be third party beneficiaries to the agreements made hereunder
by the Initial Purchaser and the Company, and each Holder shall have the right
to enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights hereunder; PROVIDED, HOWEVER, that
such Holder fulfills all of its obligations hereunder.

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

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

     (g)  GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE COMMONWEALTH OF VIRGINIA, AS APPLIED TO
CONTRACTS MADE AND PERFORMED WITHIN THE COMMONWEALTH OF VIRGINIA, WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAW. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY STATE COURT IN THE COMMONWEALTH
OF VIRGINIA OR ANY FEDERAL COURT SITTING IN VIRGINIA IN RESPECT OF ANY SUIT,
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND
IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH OF THE PARTIES
HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER
APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING
OF THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT
AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING

19

 

BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

     (h)  SEVERABILITY. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall remain in full force and effect and shall
in no way be affected, impaired or invalidated, and the parties hereto shall
use their best efforts to find and employ an alternative means to achieve the
same or substantially the same result as that contemplated by such term,
provision, covenant or restriction. It is hereby stipulated and declared to be
the intention of the parties hereto that they would have executed the remaining
terms, provisions, covenants and restrictions without including any of such
that may be hereafter declared invalid, illegal, void or unenforceable.

     (i)  ENTIRE AGREEMENT. This Agreement, together with the Offering Purchase
Agreement, is intended by the parties hereto as a final expression of their
agreement, and is intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the subject
matter contained herein and therein.

     (j)  REGISTRABLE SHARES HELD BY THE COMPANY OR ITS AFFILIATES. Whenever the
consent or approval of Holders of a specified percentage of Registrable Shares
is required hereunder, Registrable Shares held by the Company or its Affiliates
shall not be counted in determining whether such consent or approval was given
by the Holders of such required percentage.

     (k) SURVIVAL. This Agreement is intended to survive the consummation of
the transactions contemplated by the Offering Purchase Agreement. The
indemnification and contribution obligations under Section 6 of this Agreement
shall survive the termination of the Company’s obligations under Section 2 of
this Agreement.

20

 

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

	 
	OXFORD FINANCE CORPORATION
	 
	By: /s/ KARL HEFTY
	

      Name:  Karl Hefty

      Title:  Vice President
	 
	FRIEDMAN, BILLINGS, RAMSEY & CO., INC
	 
	By: /s/ J. ROCK TONKEL, JR.
	

      Name: J. Rock Tonkel, Jr.

      Title:  Managing Director

21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]