Document:

Exhibit 4.10  

	COMMON STOCK	 	 	 	COMMON STOCK

PAR VALUE $0.001
	
[GRAPHIC]

NUMBER	
 	

[GRAPHIC]

EXCO Resources, Inc.	
 	

[GRAPHIC]

SHARES
	

THIS CERTIFICATE IS

TRANSFERABLE IN

NEW YORK, NY	
 	

EXCO RESOURCES, INC.

INCORPORATED UNDER THE LAWS

OF THE STATE OF TEXAS	
 	

SEE REVERSE FOR CERTAIN

DEFINITIONS

CUSIP            

        THIS
CERTIFIES THAT 

        is
the record holder of 

        FULLY
PAID AND NON-ASSESSABLE SHARES OF COMMON STOCK, $0.001 PAR VALUE PER SHARE, OF 

EXCO RESOURCES, INC.  

transferable
on the books of the Corporation by the holder hereof, in person or by duly authorized attorney, upon surrender of this certificate properly endorsed. This certificate is not valid unless
countersigned and registered by the Transfer Agent and Registrar. This certificate and the shares represented hereby are issued and shall be held subject to all of the terms, conditions, and
limitations of the Articles of Incorporation and the Bylaws of the Corporation as restated or amended, or as same may be restated or amended hereafter to all of which the holder hereof by acceptance
hereof agrees and assents. 

        Witness
the facsimile seal of the Corporation and the facsimile signatures of its duly authorized officers. 

CERTIFICATE OF STOCK  

DATED: 

	/s/  STEPHEN F. SMITH      
 PRESIDENT AND SECRETARY	 	EXCO Resources, Inc.

CORPORATE

SEAL

X

STATE OF TEXAS	 	 

	 	 	Countersigned and Registered:
	 	 	 	 	CONTINENTAL STOCK TRANSFER & TRUST COMPANY

(JERSEY CITY, NJ)
	 	 	 	 	TRANSFER AGENT AND REGISTRAR
	

 	
 	

By	
 	

 
	 	 	 	 	
 Authorized Officer

EXCO RESOURCES, INC.  

        A full statement of all the designations, preferences, limitations, and relative rights of the shares of each class or series of stock of this Corporation, to the
extent they have been fixed and determined, and the authority of the Board of Directors to fix and determine the designations, preferences, limitations, and relative rights of subsequent series, is
set forth in the Articles of Incorporation on file in the office of the Secretary of State of the state of Texas. The Corporation will furnish a copy of such statement without charge to each
shareholder who so requests in writing to the Corporation at its principle place of business or registered office. 

        The
following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or
regulations: 

	TEN COM	 	-as tenants in common	 	 	 	Custodian
	 	 	 	 	UNIF GIFT MIN ACT	 	-
	TEN ENT	 	-as tenants by the entireties	 	 	 	(Cust)            (Minor)
	JT TEN	 	-as joint tenants with right of	 	 	 	under Uniform Gifts to Minors Act
	 	 	survivorship and not as tenants in	 	 	 	 
	 	 	common	 	 	 	
 (State)

Additional
abbreviations may also be used though not in the above list. 

For
value received                        hereby sell, assign and transfer unto 

Please
insert social security or other identifying number of assignee.

Please print or typewrite name and address including zip code of assignee: 

                        shares
of capital stock represented by the within Certificate and do hereby irrevocably constitute and
appoint                        Attorney to transfer the said stock on the books of the
within named Company with full power of substitution in the premises. 

Dated

	 	 	
NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY
CHANGE WHATEVER.
	

 	
 	

NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY
CHANGE WHATEVER.

	By	 	 	 	 
	 	 	
	 	 
	THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANK, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS OR CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE
MEDALLION	 	 

KEEP THIS CERTIFICATE IN A SAFE PLACE. IF IT IS LOST, STOLEN, MUTILATED OR DESTROYED, THE CORPORATION WILL REQUIRE A BOND OF INDEMNITY AS A CONDITION TO THE ISSUANCE OF A
REPLACEMENT CERTIFICATE.Use these links to rapidly review the document

  TABLE OF CONTENTS

Exhibit 10.47  

FIRST AMENDED AND RESTATED

REGISTRATION RIGHTS AGREEMENT
  

 by and among
  

 EXCO HOLDINGS INC.
  

 and
  

 THE INITIAL HOLDERS SPECIFIED

ON THE SIGNATURE PAGES HEREOF
  

 Dated as of December 30, 2005  

 
  

    TABLE OF CONTENTS    
    

 

	 
	 	 

	1.	 	DEFINITIONS.
	2.	 	REGISTRATION UNDER THE SECURITIES ACT.
	2.1.  	 	Resale Registration; Shelf Registration.
	2.2.  	 	Demand Registration.
	2.3.  	 	Incidental Registration.
	2.4.  	 	Expenses.
	2.5.  	 	Underwritten Offerings.
	2.6.  	 	Conversions; Exercises.
	2.7.  	 	Postponements.
	3.	 	HOLDBACK ARRANGEMENTS.
	3.1.  	 	Restrictions on Sale by Holders of Registrable Securities.
	3.2.  	 	Restrictions on Sale by the Company and Others.
	4.	 	REGISTRATION PROCEDURES.
	4.1.  	 	Obligations of the Company.
	4.2.  	 	Seller Information.
	4.3.  	 	Notice to Discontinue.
	5.	 	INDEMNIFICATION; CONTRIBUTION.
	5.1.  	 	Indemnification by the Company.
	5.2.  	 	Indemnification by Holders.
	5.3.  	 	Conduct of Indemnification Proceedings.
	5.4.  	 	Contribution.
	5.5.  	 	Other Indemnification.
	5.6.  	 	Indemnification Payments.
	6.	 	GENERAL.
	6.1.  	 	Adjustments Affecting Registrable Securities.
	6.2.  	 	Registration Rights to Others.
	6.3.  	 	Availability of Information; Rule 144; Rule 144A; Other Exemptions.
	6.4.  	 	Amendments and Waivers.
	6.5.  	 	Notices.
	6.6.  	 	Successors and Assigns.
	6.7.  	 	Counterparts.
	6.8.  	 	Descriptive Headings, Etc.
	6.9.  	 	Severability.
	6.10.	 	Governing Law.
	6.11.	 	Remedies; Specific Performance.
	6.12.	 	Entire Agreement.
	6.13.	 	Nominees for Beneficial Owners.
	6.14.	 	Consent to Jurisdiction.
	6.15.	 	Further Assurances.
	6.16.	 	No Inconsistent Agreements.
	6.17.	 	Construction.

i

  

        FIRST AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (the "Agreement") originally dated as of October 3, 2005, and amended and
restated as of December 30, 2005, by and among EXCO Holdings Inc., a Delaware corporation and successor by merger to EXCO Holdings II, Inc. (the
"Company"), the investors specified on the signature pages hereof (each, an "Investor," and together the
"Investors") and the management holders specified on the signature pages hereof (the "Management
Holders" and together with the Investors, the "Initial Holders"). 

W I T N E S S E T H: 

        WHEREAS,
the Company, as successor by merger, and the Initial Holders are parties to a Registration Rights Agreement dated as of October 3, 2005; 

        WHEREAS,
the Company and the Initial Holders desire to amend Section 2.1 of the Registration Rights Agreement to facilitate the Company's planned initial public offering of Common
Shares and to make certain other changes to the Registration Rights Agreement related to the amendments to Section 2.1; 

        WHEREAS,
Section 6.4 of the Registration Rights Agreement provides that said agreement may be amended upon the written consent of the Company, the Majority Investor Holders (as
defined therein) and the Majority Management Holders (as defined therein); 

        NOW,
THEREFORE, in consideration of the premises and of the mutual agreements contained herein, and for other good and valuable consideration the receipt and sufficiency of which is
hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree to amend and restate the Registration Rights Agreement in its entirety as follows: 

 
 
 1.    DEFINITIONS.     

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

        "Affiliate" shall mean with respect to any Person, any other Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such Person, and with respect to any individual, shall mean his or her spouse, sibling, child, step child, grandchild, niece, nephew or parent of such Person, or the
spouse thereof. For purposes of this definition, "control" (including, with correlative meanings, the terms "controlling," "controlled by" and "under common control with"), as used with respect to any
Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise; provided, however, that beneficial ownership of 20% or more of
the voting securities of a Person shall be deemed to be control. 

        "Blackout Period" shall have the meaning set forth in Section 2.7. 

        "Certificate of Incorporation" shall mean the Certificate of Incorporation (as the same may be amended or restated) of the Company, as
filed with the Secretary of State of the State of Delaware. 

        "Common Shares" shall mean shares of common stock, par value $0.001 per share, of the Company. 

        "Company" shall have the meaning set forth in the preamble. 

        "Demand Registration" shall mean a registration required to be effected by the Company pursuant to Section 2.2. 

        "Demand Registration Statement" shall mean a registration statement of the Company which covers the Registrable Securities requested to be
included therein pursuant to the provisions of Section 2.2 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 (or deemed to be incorporated by reference) therein. 

1

 

        "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations thereunder, or
any successor statute. 

        "Founders Shares" shall mean the Common Shares issued to certain stockholders on or about August 19, 2005, as set forth on  Schedule 1 hereto. 

        "Holders" shall mean each of the Initial Holders for so long as it owns any Registrable Securities and such of its respective heirs,
successors and permitted assigns (including any permitted transferees of Registrable Securities) who acquire or are otherwise the transferee of Registrable Securities, directly or indirectly, from
such Initial Holder (or any subsequent Holder), for so long as such heirs, successors and permitted assigns own any Registrable Securities. For purposes of this Agreement, a Person will be deemed to
be a Holder whenever such Person holds Registrable Securities, an option to purchase, or a security convertible into or exercisable or exchangeable for, Registrable Securities, whether or not such
purchase, conversion, exercise or exchange has actually been effected and disregarding any legal restrictions upon the exercise of such rights. Registrable Securities issuable upon exercise of an
option or upon conversion, exchange or exercise of another security shall be deemed outstanding for the purposes of this Agreement. 

        "Holders' Counsel" shall mean one firm of counsel (per registration) to the Holders of Registrable Securities participating in such
registration, which counsel shall be selected (i) in the case of a Demand Registration or a Resale Registration, by the Initiating Holders holding a majority of the Registrable Securities for
which registration was requested in the Request, and (ii) in all other cases, by the Majority Holders of the Registration. 

        "Incidental Registration" shall mean a registration required to be effected by the Company pursuant to Section 2.3. 

        "Incidental Registration Statement" shall mean a registration statement of the Company which covers the Registrable Securities requested
to be included therein pursuant to the provisions of Section 2.3 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 (or deemed to be incorporated by reference) therein. 

        "Initial Holders" shall have the meaning set forth in the preamble. 

        "Initial Public Offering" shall mean the first public offering of any class of equity securities of the Company (or any successor or
assign of the Company, whether by merger, consolidation, sale of assets or otherwise) pursuant to a registration statement filed with and declared effective by the SEC. 

        "Initiating Holders" shall mean, with respect to a particular registration, the Holders who initiated the Resale Request or Request for
such registration. 

        "Inspectors" shall have the meaning set forth in Section 4.1(g). 

        "Investors" shall have the meaning set forth in the preamble. 

        "Investor Holders" shall mean each of the Investors and its respective Affiliates for so long as it owns any Registrable Securities and
such of its respective successors and permitted assigns (including any Permitted Transferees of Registrable Securities) who acquire or are otherwise the transferee of Registrable Securities, directly
or indirectly, from such Investor (or any subsequent holder), for so long as such successors and permitted assigns own any Registrable Securities. 

        "Majority Holders" shall mean one or more Holders of Registrable Securities who would hold a majority of the Registrable Securities then
outstanding. 

2

 

        "Majority Holders of the Registration" shall mean, with respect to a particular registration, one or more Holders of Registrable
Securities who would hold a majority of the Registrable Securities to be included in such registration. 

        "Majority Investor Holders" shall mean one or more Investor Holders who hold a majority of the Registrable Securities then outstanding and
held by the Investor Holders. 

        "Majority Management Holders" shall mean one or more Management Holders who hold a majority of the Registrable Securities then outstanding
and held by the Management Holders. 

        "Management Holders" shall have the meaning set forth in the preamble. 

        "NASD" shall mean the National Association of Securities Dealers, Inc. 

        "Person" shall mean any individual, firm, partnership, corporation, trust, joint venture, association, joint stock company, limited
liability company, unincorporated organization or any other entity or
organization, including a government or agency or political subdivision thereof, and shall include any successor (by merger or otherwise) of such entity. 

        "Prospectus" shall mean the prospectus included in a Registration Statement (including, without limitation, any preliminary prospectus and
any prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the
Securities Act), and any such Prospectus as amended or supplemented by any prospectus supplement, and all other amendments and supplements to such Prospectus, including post-effective
amendments, and in each case including all material incorporated by reference (or deemed to be incorporated by reference) therein. 

        "Purchase Agreements" means those certain Stock Purchase Agreements among EXCO Holdings II, Inc., the Investors and the Management
Holders dated as of September 30, 2005. 

        "Registrable Securities" shall mean (i) any Common Shares issued to the Initial Holders or any Affiliate thereof pursuant to the
Purchase Agreements, (ii) any Common Shares otherwise or hereafter purchased or acquired by the Holders or their Affiliates and (iii) any other securities of the Company (or any
successor or assign of the Company, whether by merger, consolidation, sale of assets or otherwise) which may be issued or issuable with respect to, in exchange for, or in substitution of, Registrable
Securities referenced in clauses (i) through (ii) above by reason of any dividend or stock split, combination of shares, merger, consolidation, recapitalization, reclassification,
reorganization, sale of assets or similar transaction; provided, however, that Founders Shares are subject to limitations as set forth herein. As to any particular Registrable Securities, such
securities shall cease to be Registrable Securities when (A) a registration statement with respect to the sale of such securities shall have been declared effective under the Securities Act and
such securities shall have been disposed of in accordance with such registration statement, (B) such securities are sold pursuant to Rule 144 (or any similar provisions then in force)
under the Securities Act, (C) such securities have been otherwise transferred and a new certificate or other evidence of ownership for them that does not bear the legend restricting further
transfer has been delivered by the Company and subsequent public distribution of them shall not require registration under the Securities Act, or (D) such securities shall have ceased to be
outstanding. 

        "Registration Expenses" shall mean any and all expenses incident to performance of or compliance with this Agreement by the Company and
its subsidiaries, including, without limitation (i) all SEC, stock exchange, NASD and other registration, listing and filing fees, (ii) all fees and expenses incurred in connection with
compliance with state securities or blue sky laws and compliance with the rules of any stock exchange (including fees and disbursements of counsel in connection with such compliance and the
preparation of a blue sky memorandum and legal investment survey), (iii) all expenses of any Persons in preparing or assisting in preparing, word processing, printing, distributing, mailing and 

3

 

delivering
any Registration Statement, any Prospectus, any underwriting agreements, transmittal letters, securities sales agreements, securities certificates and other documents relating to the
performance of or compliance with this Agreement, (iv) the fees and disbursements of counsel for the Company, (v) the fees and disbursements of Holders' Counsel, (vi) the fees and
disbursements of all independent public accountants (including the expenses of any audit and/or "cold comfort" letters) and the fees and expenses of other Persons, including experts, retained by the
Company, (vii) the expenses incurred in connection with making road show presentations and holding meetings with potential investors to facilitate the distribution and sale of Registrable
Securities which are customarily borne by the issuer, (viii) any fees and disbursements of underwriters customarily paid by issuers or sellers of securities, and (ix) premiums and other
costs of policies of insurance against liabilities arising out of the public offering of the Registrable Securities being registered; provided,  however,
Registration Expenses shall not include discounts and commissions payable to underwriters, selling brokers, dealer managers or other similar
Persons engaged in the distribution of any of the Registrable Securities; and provided further, that in any case where Registration Expenses are not to
be borne by the Company, such expenses shall not include salaries of Company personnel or general overhead expenses of the Company, auditing fees, premiums or other expenses relating to liability
insurance required by underwriters of the Company or other expenses for the preparation of financial statements or other data normally prepared by the Company in the ordinary course of its business or
which the Company would have incurred in any event; and provided, further, that in the event the Company
shall, in accordance with Section 2.3 or Section 2.7 hereof, not register any securities with respect to which it had given written notice of its intention to register to Holders,
notwithstanding anything to the contrary in the foregoing, all of the costs incurred by the Holders in connection with such registration shall be deemed to be Registration Expenses. 

        "Registration Statement" shall mean any registration statement of the Company which covers any Registrable Securities 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 (or deemed to be incorporated by reference) therein. 

        "Request" shall have the meaning set forth in Section 2.2(a). 

        "Resale Registration" shall mean a registration required to be effected by the Company pursuant to Section 2.1(a). 

        "Resale Request" shall have the meaning set forth in Section 2.1(a). 

        "S-3 Shelf Registration Statement" shall have the meaning set forth in Section 2.1(c). 

        "SEC" shall mean the Securities and Exchange Commission, or any successor agency having jurisdiction to enforce the Securities Act. 

        "Securities Act" shall mean the Securities Act of 1933, as amended from time to time, and the rules and regulations thereunder, or any
successor statute. 

        "Shelf Registration" shall have the meaning set forth in Section 2.2(a). 

        "Stockholders' Agreement" means that certain Stockholders' Agreement, dated as of October 3, 2005, among EXCO Holdings
II, Inc. and the Initial Holders. 

        "Underwriters" shall mean the underwriters, if any, of the offering being registered under the Securities Act. 

        "Underwritten Offering" shall mean a sale of securities of the Company to an Underwriter or Underwriters for reoffering to the public. 

        "Withdrawn Demand Registration" shall have the meaning set forth in Section 2.2(a). 

4

 

        "Withdrawn Request" shall have the meaning set forth in Section 2.2(a). 

 
 
 2.    REGISTRATION UNDER THE SECURITIES ACT.     

 
 
        2.1.    Resale Registration; Shelf Registration.     

        (a)   Resale Registration. At any time commencing on or after 180 days after the completion (disregarding any
underwriter over-allotment rights) of an Initial Public Offering, any Holder shall have the right to request in writing that the Company register up to one-third of such
Holder's Registrable Securities (a "Resale Request") (which Resale Request shall specify the amount of Registrable Securities intended to be disposed of
by such Holder and the intended method of disposition thereof) by filing with the SEC a Registration Statement on Form S-3 (or such other form as the Company shall be eligible to
use) for a public offering of such shares of Registrable Securities held by the Holder, and shall use its best efforts to register under the Securities Act for public sale (including, without
limitation, by means of a Shelf Registration) such Registrable Securities of such Holder; provided, that if such registration is for an Underwritten
Offering, the terms of Sections 2.2(b) and 2.2(d) shall apply (and any reference to "Demand Registration" therein shall, for purposes of this Section 2.1, instead be deemed a reference to
"Resale Registration"). As promptly as practicable, but no later than 10 days after receipt of the Resale Request, the Company shall give written notice of such requested registration to all
other Holders of Registrable Securities. The Company shall include in the Resale Registration (i) the Registrable Securities intended to be disposed of by the Initiating Holder and
(ii) the Registrable Securities intended to be disposed of by any other Holder which shall have made a written request (which request shall specify the amount of Registrable Securities to be
registered (but not to exceed one-third of such Holder's Registrable Securities) and the intended method of disposition thereof) to the Company for inclusion thereof in such registration
within 20 days after the receipt of such written notice from the Company. The Company is only obligated to fulfill the first Resale Request following expiration of the initial 180 day
waiting period. Accordingly, once an Initiating Holder has made a Resale Request and the Company has sent the required notice of such Resale Request to all other Holders, such other Holders may elect
to participate in the registration or not, but such Holders will not have the right to make a separate Resale Request until after the expiration of the 365 day or 540 day waiting periods
described below. The Company shall, as expeditiously as possible following a Resale Request, use its best efforts to cause to be filed with the SEC a Registration Statement providing for the
registration under the Securities Act of the Registrable Securities which the Company has been so requested to register by all such Holders, to the extent necessary to permit the disposition of such
Registrable Securities so to be registered in accordance with the intended methods of disposition thereof specified in such Request or further requests (including, without limitation, by means of a
shelf registration pursuant to Rule 415 under the Securities Act (a "Shelf Registration") if so requested and if the Company is then eligible to
use such a registration). The Company shall use its best efforts to have such Registration Statement declared effective by the SEC as soon as practicable thereafter and to keep such Resale
Registration Statement continuously effective for the period specified in Section 4.1(b). If the sole or lead managing Underwriter (if any) or the Majority Holders of the Registration shall
advise the Company in writing that in its opinion additional disclosure not required by Form S-3 (or such other form as the Company shall be eligible to used) is of material
importance to the success of the offering, then such Registration Statement shall include such additional disclosure. Any Holder requesting inclusion in a registration effected pursuant to this
Section 2.1(a) may, at any time up to and including the time of pricing of the Registration Statement (and for any reason) revoke such request by delivering written notice to the Company
revoking such requested inclusion. 

        At
any time commencing on or after 365 days after the completion (disregarding any underwriter over-allotment rights) of an Initial Public Offering, any Holder shall
have the same right as set forth above to request registration of up to an additional one-third of such Holder's shares of Registrable Securities initially covered by this Agreement (not
one-third of the 

5

 

unregistered
securities then remaining) in the same manner as provided in the immediately preceding paragraph. A similar demand right shall be invocable by any Holder with respect to its remaining
shares of Registrable Securities commencing 540 days after completion (disregarding any underwriter over-allotment rights) of an Initial Public Offering. The Company shall have the
same obligation as described above to send to all other Holders notice of any such subsequent Resale Request and all other Holders shall have the same right to request registration of up to
one-third of their Registrable Securities upon each Company notice of a Resale Request. As described above, the Company is only obligated to fulfill one Resale Request following the
expiration of each of the 365 day and 540 day waiting periods. Any Holder requesting inclusion in a registration effected pursuant to this Section 2.1(a) may, at any time up to
and including the time of pricing of the Registration Statement (and for any reason) revoke such request by delivering written notice to the Company revoking such requested inclusion. 

        Following
the Company's Initial Public Offering, the Company can make written request to J.P. Morgan Securities Inc. (or the lead underwriter and sole stabilization agent of the
Initial Public Offering if other than J.P. Morgan Securities Inc.; J.P. Morgan Securities Inc. or such other lead underwriter being the "Lead
Underwriter") to waive the registration waiting periods and registration volume limitations set forth in Section 2.1(a). Upon or without such request, the Lead
Underwriter in its sole discretion and based upon its evaluation of market conditions, the historical trading activity and liquidity of the Common Shares and other considerations it deems relevant,
can determine to waive continued application of the registration waiting periods and registration volume limitations in this Section 2.1(a). 

        Whenever
the Company shall effect a registration pursuant to a Resale Request, no securities other than the Registrable Securities shall be covered by such registration unless the
Majority Holders of the Registration shall have consented in writing to the inclusion of such other securities. 

        The
registration rights granted pursuant to the provisions of this Section 2.1(a) shall be in addition to the registration rights granted pursuant to the other provisions of this
Section 2. 

        (b)   Shelf Registration. If (i) the Resale Registration Statement filed pursuant to Section 2.1(a) or
(ii) a Request made pursuant to Section 2.2 is for a Shelf Registration, the Company shall use its best efforts to keep the Shelf Registration continuously effective through the date on
which all of the Registrable Securities covered by such Shelf Registration may be sold pursuant to Rule 144(k) under the Securities Act (or any successor provision having similar effect);  provided,
however, that prior to the termination of such Shelf Registration, the Company shall first
furnish to each Holder of Registrable Securities
participating in such Shelf Registration (i) an opinion, in form and substance satisfactory to the Majority Holders of the Registration, of counsel for the Company satisfactory to the Majority
Holders of the Registration stating that such Registrable Securities are freely saleable pursuant to Rule 144(k) under the Securities Act (or any successor provision having similar effect) or
(ii) a "No-Action Letter" from the staff of the SEC stating that the SEC would not recommend enforcement action if the Registrable Securities included in such Shelf Registration
were sold in a public sale other than pursuant to an effective registration statement. 

        (c)   Shelf Registration Statement. In the event the Resale Registration effected pursuant to Section 2.1(a) shall be on
a form other than Form S-3 or any successor form thereto, then the Company may, at any time it is eligible to do so, or shall, if eligible, upon the written request of the Holders
of at least 25% of the Registrable Securities originally issued pursuant to the Purchase Agreements, file a shelf registration statement on Form S-3 for the resale of any
then existing Registrable Securities or, if permitted by the Commission, file a post-effective amendment on Form S-3 to the Resale Registration (the
"S-3 Shelf Registration Statement"). Upon the effectiveness of the S-3 Shelf Registration Statement, the Company shall no longer
be required to keep effective the Resale Registration Statement and all references to the Resale Registration Statement in this Agreement shall then automatically be deemed to be a reference to the
S-3 Shelf Registration Statement. 

6

  

 
 
        2.2.    Demand Registration.     

        (a)   Right to Demand Registration. Subject to Section 2.2(c) and only if an Initial Public Offering has not been
previously completed, at any time commencing on or after the first anniversary of the date hereof, the Majority Investor Holders or the Majority Management Holders shall have the right to request in
writing that the Company register all or part of such Holders' Registrable Securities (a "Request") (which Request shall specify the amount of
Registrable Securities intended to be disposed of by such Holders and the intended method of disposition thereof) by filing with the SEC a Demand Registration Statement. As promptly as practicable,
but no later than 10 days after receipt of a Request, the Company shall give written notice of such requested registration to all Holders of Registrable Securities. Subject to
Section 2.2(b), the Company shall include in a Demand Registration (i) the Registrable Securities intended to be disposed of by the Initiating Holders and (ii) the Registrable
Securities intended to be disposed of by any other Holder which shall have made a written request (which request shall specify the amount of Registrable Securities to be registered and the intended
method of disposition thereof) to the Company for inclusion thereof in such registration within 20 days after the receipt of such written notice from the Company. The Company shall, as
expeditiously as possible following a Request, use its best efforts to cause to be filed with the SEC a Demand Registration Statement providing for the registration under the Securities Act of the
Registrable Securities which the Company has been so requested to register by all such Holders, to the extent necessary to permit the disposition of such Registrable Securities so to be registered in
accordance with the intended methods of disposition thereof specified in such Request or further requests (including, without limitation, by means of a shelf registration pursuant to Rule 415
under the Securities Act (a "Shelf Registration") if so requested and if the Company is then eligible to use such a registration). The Company shall use
its best efforts to have such Demand Registration Statement declared effective by the SEC as soon as practicable thereafter and to keep such Demand Registration Statement continuously effective for
the period specified in Section 4.1(b). 

        A
Request may be withdrawn prior to the filing of the Demand Registration Statement by the Majority Holders of the Registration (a "Withdrawn
Request") and a Demand Registration Statement may be withdrawn up to and including the time of pricing by the Majority Holders of the Registration (a
"Withdrawn Demand Registration"), and such withdrawals shall be treated as a Demand Registration which shall have been effected pursuant to this
Section 2.2, unless the Holders of Registrable Securities to be included in such Registration Statement reimburse the Company for its reasonable out-of-pocket
Registration Expenses relating to the preparation and filing of such Demand Registration Statement (to the extent actually incurred), provided;  however,
that if a Withdrawn Request or Withdrawn Demand Registration is made (A) because of a material adverse change in the business, financial
condition or prospects of the Company, or (B) because the sole or lead managing Underwriter advises that the amount of Registrable Securities to be sold in such offering be reduced pursuant to
Section 2.2(b) by more than 20% of the Registrable Securities to be included in such Registration Statement, or (C) because of a postponement of such registration pursuant to
Section 2.7, then such withdrawal shall not be treated as a Demand Registration effected pursuant to this Section 2.2 (and shall not be counted toward the number of Demand
Registrations), and the
Company shall pay all Registration Expenses in connection therewith. Any Holder requesting inclusion in a Demand Registration may, at any time up to and including the time of pricing of the Demand
Registration Statement (and for any reason) revoke such request by delivering written notice to the Company revoking such requested inclusion. 

        The
registration rights granted pursuant to the provisions of this Section 2.2 shall be in addition to the registration rights granted pursuant to the other provisions of
Section 2 hereof. 

7

 

        (b)   Priority in Demand Registrations. If a Demand Registration involves an Underwritten Offering, and the sole or lead
managing Underwriter, as the case may be, of such Underwritten Offering shall advise the Company in writing (with a copy to each Holder requesting registration) on or before the date five days prior
to the date then scheduled for such offering that, in its opinion, the amount of Registrable Securities requested to be included in such Demand Registration exceeds the number which can be sold in
such offering within a price range acceptable to the Majority Holders of the Registration (such writing to state the basis of such opinion and the approximate number of Registrable Securities which
may be included in such offering), the Company shall include in such Demand Registration, to the extent of the number which the Company is so advised may be included in such offering, the Registrable
Securities requested to be included in the Demand Registration by the Holders allocated pro rata in proportion to the number of Registrable Securities
requested to be included in such Demand Registration by each of them. In the event the Company shall not, by virtue of this Section 2.2(b), include in any Demand Registration all of the
Registrable Securities of any Holder requesting to be included in such Demand Registration, such Holder may, upon written notice to the Company given within five days of the time such Holder first is
notified of such matter, reduce the amount of Registrable Securities it desires to have included in such Demand Registration, whereupon only the Registrable Securities, if any, it desires to have
included will be so included and the Holders not so reducing shall be entitled to a corresponding increase in the amount of Registrable Securities to be included in such Demand Registration. 

        (c)   Limitations on Registrations. The rights of the Majority Investor Holders and the Majority Management Holders to request
Demand Registrations pursuant to Section 2.2(a) are subject to the limitation that in no event shall the Company be obligated to pay Registration Expenses of more than three Demand
Registrations initiated by the Majority Investor Holders or three Demand Registrations initiated by the Majority Management Holders; provided,  however,
(i) that to the extent the Company does not include in what would otherwise be the final registration for which the Company is required
to pay Registration Expenses the number of Registrable Securities requested to be registered by the Holders by reason of Section 2.2(b) such number of Demand Registrations shall be increased
once for each such occurrence and (ii) the Initiating Holders shall be deemed not to have expended a Demand Registration right to the extent the Company terminates a Shelf Registration pursuant
to Section 2.1(b) prior to the time that all Registrable Securities covered by such Shelf Registration have been sold. 

        (d)   Underwriting; Selection of Underwriters. Notwithstanding anything to the contrary contained in Section 2.2(a), if
the Initiating Holders so elect, the offering of such Registrable Securities pursuant to such Demand Registration shall be in the form of a firm commitment Underwritten Offering; and such Initiating
Holders may require that all Persons (including other Holders) participating in such registration sell their Registrable Securities to the Underwriters at the same price and on the same terms of
underwriting applicable to the Initiating Holders. Except to the extent the Company has otherwise already agreed to hire designated Underwriters as required by the terms of the financing required to
consummate the Stockholder Agreements, if any Demand Registration involves an Underwritten Offering, the sole or managing Underwriters and any additional investment bankers and managers to be used in
connection with such registration shall be selected by the Initiating Holders holding a majority of the Registrable Securities for which registration was requested in the Request, subject to the
approval of the Company (such approval not to be unreasonably withheld). 

        (e)   Registration of Other Securities. Whenever the Company shall effect a Demand Registration, no securities other than the
Registrable Securities shall be covered by such registration unless the Majority Holders of the Registration shall have consented in writing to the inclusion of such other securities. 

8

 

        (f)    Effective Registration Statement; Suspension. A Demand Registration Statement shall not be deemed to have become
effective (and the related registration will not be deemed to have been effected) (i) unless it has been declared effective by the SEC and remains effective in compliance with the provisions of
the Securities Act with respect to the disposition of all Registrable Securities covered by such Demand Registration Statement for the time period specified in Section 4.1(b), (ii) if
the offering of any Registrable Securities pursuant to such Demand Registration Statement is interfered with by any stop order, injunction or other order or requirement of the SEC or any other
governmental agency or court, or (iii) if, in the case of an Underwritten Offering, the conditions to closing specified in an underwriting agreement to which the Company is a party are not
satisfied other than by the sole reason of any breach or failure by the Holders of Registrable Securities or are not otherwise waived. 

        (g)   Other Registrations. During the period (i) beginning on the date of a Request and (ii) ending on the date
that is 90 days after the date that a Demand Registration Statement filed pursuant to such Request has been declared effective by the SEC or, if the Majority Holders of the Registration shall
withdraw such Request or such Demand Registration Statement, on the date of such Withdrawn Request or such Withdrawn Registration Statement, the Company shall not, without the consent of the Majority
Holders of the Registration, file a registration statement pertaining to any other securities of the Company. 

        (h)   Registration Statement Form. Registrations under this Section 2.2 shall be on such appropriate registration form
of the SEC (i) as shall be selected by the Initiating Holders holding a majority of the Registrable Securities for which registration was requested in the Request, and (ii) which shall
be available for the sale of Registrable Securities in accordance with the intended method or methods of disposition specified in the requests for registration. The Company agrees to include in any
such
Registration Statement all information which any selling participating Holder, upon advice of counsel, shall reasonably request. 

        (i)    Sale of Founders Shares. Each Holder of Founder Shares may only sell his or her Founders Shares pursuant to an effective
Registration Statement covering the resale of such Founders Shares and may not sell his or her shares pursuant to Rule 144 or any other exemption from registration or otherwise until after the
third anniversary of this Agreement. 

 
 
        2.3.    Incidental Registration.     

        (a)   Right to Include Registrable Securities. If the Company at any time or from time to time proposes to register any of its
securities under the Securities Act (other than pursuant to an Initial Public Offering or in a registration on Form S-4 or S-8 or any successor form to such forms and
other than pursuant to Section 2.1 or 2.2) and files (i) a shelf registration statement or (ii) a registration statement, other than a shelf registration statement, or proposes to
do a take down off of an effective shelf registration statement, whether or not pursuant to registration rights granted to other holders of its securities and whether or not for sale for its own
account, the Company shall deliver prompt written notice (which notice shall be given at least 45 days prior to the filing of such registration statement or 5 days prior to the filing of
any preliminary prospectus supplement pursuant to Rule 424(b), or the prospectus supplement pursuant to Rule 424(b) (if no preliminary prospectus supplement is used)) to all Holders of
Registrable Securities of its intention to undertake such registration or offering, describing in reasonable detail the proposed registration and distribution (including the anticipated range of the
proposed offering price, the class and number of securities proposed to be registered and the distribution arrangements) and of such Holders' right to participate in such registration under this
Section 2.3 as hereinafter provided. Subject to the other provisions of this paragraph (a) and Section 2.3(b), upon the written request of any Holder made within 20 days
after the receipt of such written notice (which request shall specify the amount of Registrable Securities to be registered and the intended method of disposition thereof), the Company shall effect
the registration under the Securities Act of all 

9

 

Registrable
Securities requested by Holders to be so registered (an "Incidental Registration"), to the extent requisite to permit the disposition (in
accordance with the intended methods thereof as aforesaid) of the Registrable Securities so to be registered, by inclusion of such Registrable Securities in the Registration Statement which covers the
securities which the Company proposes to register and shall cause such Registration Statement to become and remain effective with respect to such Registrable Securities in accordance with the
registration procedures set forth in Section 4. If an Incidental Registration involves an Underwritten Offering, immediately upon notification to the Company from the Underwriter of the price
at which such securities are to be sold, the Company shall so advise each participating Holder. The Holders requesting inclusion in an Incidental Registration may, at any time up to and including the
time of pricing of the Incidental Registration Statement (and for any reason), revoke such request by delivering written notice to the Company revoking such requested inclusion. 

        If
at any time after giving written notice of its intention to register any securities and up to and including the time of pricing of the Incidental Registration Statement filed in
connection with such registration, the Company shall determine for any reason not to register or to delay registration of such securities, the Company may, at its election, give written notice of such
determination to each Holder of Registrable Securities and, thereupon, (A) in the case of a determination not to register, the Company shall be relieved of its obligation to register any
Registrable Securities in connection with such registration (but not from its obligation to pay the Registration Expenses incurred in connection therewith), without prejudice, however, to the rights
of Holders to cause such registration to be effected as a registration under Section 2.1(a) or 2.2, and (B) in the case of a determination to delay such registration, the Company shall
be permitted to delay the registration of such Registrable Securities for the same period as the delay in registering such other securities; provided,  however, that if such delay shall extend beyond 120 days from the date the Company received a request to include Registrable Securities in such
Incidental Registration, then the Company shall again give all Holders the opportunity to participate therein and shall follow the notification procedures set forth in the preceding paragraph. There
is no limitation on the number of such Incidental Registrations pursuant to this Section 2.3 which the Company is obligated to effect. 

        The
registration rights granted pursuant to the provisions of this Section 2.3 shall be in addition to the registration rights granted pursuant to the other provisions of
Section 2 hereof. 

        (b)   Priority in Incidental Registration. If an Incidental Registration involves an Underwritten Offering (on a firm
commitment basis), and the sole or the lead managing Underwriter, as the case may be, of such Underwritten Offering shall advise the Company in writing (with a copy to each Holder requesting
registration) on or before the date five days prior to the date then scheduled for such offering that, in its opinion, the amount of securities (including Registrable Securities) requested to be
included in such registration exceeds the amount which can be sold in such offering without materially interfering with the successful marketing of the securities being offered (such writing to state
the basis of such opinion and the approximate number of such securities which may be included in such offering without such effect), the Company shall include in such registration, to the extent of
the number which the Company is so advised may be included in such offering without such effect, (i) in the case of a registration initiated by the Company, (A) first, the securities
that the Company proposes to register for its own account, (B) second the Registrable Securities requested to be included in such registration by the Holders, allocated  pro rata in proportion to
the number of Registrable Securities requested to be included in such registration by each of them, and (C) third,
other securities of the Company to be registered on behalf of any other Person, and (ii) in the case of a registration initiated by a Person other than the Company, (A) first, the
Registrable Securities requested to be included in such registration by any Persons initiating such registration and the Registrable Securities requested to be included in 

10

 

such
registration by the other Holders, (B) second, any other Persons, allocated pro rata in proportion to the number of securities requested to
be included in such registration by each of them; and (C) third, the securities that the Company proposes to register for its own account,  provided, however, that in the event the Company will not, by virtue of this Section 2.3(b),
include in any such registration all of the Registrable Securities of any Holder requested to be included in such registration, such Holder may, upon written notice to the Company given within three
days of the time such Holder first is notified of such matter, reduce the amount of Registrable Securities it desires to have included in such registration, whereupon only the Registrable Securities,
if any, it desires to have included will be so included and the Holders not so reducing shall be entitled to a corresponding increase in the amount of Registrable Securities to be included in such
registration. 

        (c)   Selection of Underwriters. If any Incidental Registration involves an Underwritten Offering, the sole or managing
Underwriter(s) and any additional investment bankers and managers to be used in connection with such registration shall be subject to the approval of the Majority Holders of the Registration (such
approval not to be unreasonably withheld). 

 
 
        2.4.    Expenses.     

        The
Company shall pay all Registration Expenses in connection with any Demand Registration, Incidental Registration, Resale Registration or Shelf Registration, whether or not such
registration shall become effective and whether or not all Registrable Securities originally requested to be included in such registration are withdrawn or otherwise ultimately not included in such
registration, except as otherwise provided with respect to a Withdrawn Request and a Withdrawn Demand Registration in Section 2.2(a). 

 
 
        2.5.    Underwritten Offerings.     

        (a)   Demand Underwritten Offerings. If requested by the sole or lead managing Underwriter for any Underwritten Offering
effected pursuant to a Demand Registration or a Resale Registration, the Company shall enter into a customary underwriting agreement with the Underwriters for such offering, such agreement to be
reasonably satisfactory in substance and form to the Majority Holders of the Registration and to contain such representations and warranties by the Company and such other terms as are generally
prevailing in agreements of that type, including, without limitation, indemnification and contribution to the effect and to the extent provided in Section 5. 

        (b)   Holders of Registrable Securities to be Parties to Underwriting Agreement. The Holders of Registrable Securities to be
distributed by Underwriters in an Underwritten Offering contemplated by Section 2 shall be parties to the underwriting agreement between the Company and such Underwriters and may, at such
Holders' option, require that any or all of the representations and warranties by, and the other agreements on the part of, the Company to and for the benefit of such Underwriters shall also be made
to and for the benefit of such Holders of Registrable Securities and that any or all of the conditions precedent to the obligations of such Underwriters under such underwriting agreement be conditions
precedent to the obligations of such Holders of Registrable Securities; provided, however, that the
Company shall not be required to make any representations or warranties with respect to written information specifically provided by a selling Holder for inclusion in the Registration Statement. 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,
such Holder's Registrable Securities and such Holder's intended method of disposition. 

        (c)   Participation in Underwritten Registration. Notwithstanding anything herein to the contrary, no Person may participate in
any underwritten registration hereunder unless such Person (i) agrees to sell its securities on the same terms and conditions provided in any underwritten arrangements approved by the Persons
entitled hereunder to approve such arrangement and (ii) accurately completes and executes in a timely manner all questionnaires, powers of attorney, indemnities, 

11

 

custody
agreements, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements. 

 
 
        2.6.    Conversions; Exercises.     

        Notwithstanding
anything to the contrary herein, in order for any Registrable Securities that are issuable upon the exercise of conversion rights, options or warrants to be included in
any registration pursuant to Section 2 hereof, the exercise of such conversion rights, options or warrants must be
effected no later than immediately prior to the closing of any sales under the Registration Statement pursuant to which such Registrable Securities are to be sold. 

 
 
        2.7.    Postponements.     

        The
Company shall be entitled to postpone a Resale Registration and a Demand Registration and to require the Holders of Registrable Securities to discontinue the disposition of their
securities covered by a Shelf Registration during any Blackout Period (as defined below) (i) if the Board of Directors of the Company determines in good faith that effecting such a registration
or continuing such disposition at such time would have a material adverse effect upon a proposed sale of all (or substantially all) of the assets of the Company or a merger, reorganization,
recapitalization or similar current transaction materially affecting the capital structure or equity ownership of the Company, or (ii) if the Company is in possession of material information
which the Board of Directors of the Company determines in good faith it is not in the best interests of the Company to disclose in a registration statement at such time;  provided, however, that the Company may only delay a Resale Registration or a Demand Registration
pursuant to this Section 2.7 by delivery of a Blackout Notice (as defined below) either (i) under Section 2.1 within 30 days of delivery of a Resale Request or
(ii) under Section 2.2, within 30 days of delivery of the Request for such Registration, as applicable, and may delay a Resale Registration or a Demand Registration and require
the Holders of Registrable Securities to discontinue the disposition of their securities covered by a Shelf Registration only for a reasonable period of time not to exceed 90 days (or such
earlier time as such transaction is consummated or no longer proposed or the material information has been made public) (the "Blackout Period"). There
shall not be more than one Blackout Period in any 12 month period. The Company shall promptly notify the Holders in writing (a "Blackout Notice")
of any decision to postpone a Demand Registration or a Resale Registration or to discontinue sales of Registrable Securities covered by a Shelf Registration pursuant to this Section 2.7 and
shall include a general statement of the reason for such postponement, an approximation of the anticipated delay and an undertaking by the Company promptly to notify the Holders as soon as a Demand
Registration or a Resale Registration may be effected or sales of Registrable Securities covered by a Shelf Registration may resume. In making any such determination to initiate or terminate a
Blackout Period, the Company shall not be required to consult with or obtain the consent of any Holder, and any such determination shall be the Company's sole responsibility. Each Holder shall treat
all notices received from the Company pursuant to this Section 2.7 constituting material inside information in the strictest confidence and shall not trade on or disseminate such information.
If the Company shall postpone the filing of a Demand Registration Statement or a Resale Registration Statement, the Majority Holders of the Registration shall have the right to withdraw the request
for registration. Any such withdrawal shall be made by giving written notice to the Company within 30 days after receipt of the Blackout Notice. Such withdrawn registration request shall not be
treated as a Resale Request effected pursuant to Section 2.1 or a Demand Registration effected pursuant to Section 2.2 (and shall not be counted towards the number of Demand
Registrations effected), and the Company shall pay all Registration Expenses in connection therewith. 

12

  

 
 
 3.    HOLDBACK ARRANGEMENTS.     

 
 
        3.1.    Restrictions on Sale by Holders of Registrable Securities.     

        Each
Holder of Registrable Securities agrees, by acquisition of such Registrable Securities, if timely requested in writing by the sole or lead managing Underwriter in an Underwritten
Offering of any Registrable Securities (other than in connection with a Resale Registration), not to make any short sale of, loan, grant any option for the purchase of or effect any public sale or
distribution, including a sale pursuant to Rule 144 (or any successor provision having similar effect) under the Securities Act of any Registrable Securities or any other equity security of the
Company (or any security convertible into or exchangeable or exercisable for any equity security of the Company) (except as part of such underwritten registration), during the five business days (as
such term is used in Regulation M under the Exchange Act) prior to, and during the time period reasonably requested by the sole or lead managing Underwriter not to exceed 90 days or, in
the case of an Initial Public Offering, 180 days beginning on the effective date of the applicable Registration Statement, unless the sole or lead managing Underwriter in such Underwritten
Offering otherwise agrees; provided, however, that to the extent the Company or the sole lead managing
Underwriter releases any other Person from the foregoing or equivalent restrictions in whole or in part it shall, on the same day, notify the Holders of such release and such parties shall
automatically be released to the same extent: provided, further, this holdback restriction shall apply to all Holders of Registrable Securities in
respect of an Initial Public Offering and thereafter shall apply only to those Holders of Registrable Securities who have elected to sell Registrable Securities they hold in an Underwritten Offering
in respect of which a holdback is requested by the managing Underwriter. 

 
 
        3.2.    Restrictions on Sale by the Company and Others.     

        The
Company agrees that if timely requested in writing by the sole or lead managing Underwriter in an Underwritten Offering of any Registrable Securities (other than in connection with a
Resale Registration), not to make any short sale of, loan, grant any option for the purchase of or effect any public or private sale or distribution of any of the Company's equity securities (or any
security convertible into or exchangeable or exercisable for any of the Company's equity securities) during the five business days (as such term is used in Regulation M under the Exchange Act)
prior to, and during the time period reasonably requested by the sole or lead managing Underwriter not to exceed 90 days or, in the case of an Initial Public Offering, 180 days,
beginning on the effective date of the applicable Registration Statement (except as part of such underwritten registration or pursuant to registrations on Forms S-4 or S-8 or
any successor form to such forms), unless the sole or lead Managing Underwriter in such Underwritten Offering otherwise agrees. The Company will use its
reasonable best efforts to cause each director and officer of the Company and each holder of 5% or more of the equity securities (or any security convertible into or exchangeable or exercisable for
any of its equity securities) of the Company to so agree. 

 
 
 4.    REGISTRATION PROCEDURES.     

 
 
        4.1.    Obligations of the Company.     

        Whenever
the Company is required to effect the registration of Registrable Securities under the Securities Act pursuant to Section 2 of this Agreement, the Company shall, as
expeditiously as possible: 

        (a)   prepare
and file with the SEC (promptly, and in any event within 60 days after receipt of a request to register Registrable Securities) the requisite Registration
Statement to effect such registration, 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 SEC to be filed therewith, and the Company shall use its best efforts to cause such Registration Statement to become effective
(provided, that the Company may discontinue any registration of its securities that are not Registrable Securities, and, under the circumstances
specified in Section 2.3, its securities that are Registrable Securities); provided, however,
that before filing a Registration Statement or Prospectus or any amendments or supplements thereto, or comparable statements under securities 

13

 

or
blue sky laws of any jurisdiction, the Company shall (i) provide Holders' Counsel and any other Inspector with an adequate and appropriate opportunity to participate in the preparation of
such Registration Statement and each Prospectus included therein (and each amendment or supplement thereto or comparable statement) to be filed with the SEC, which documents shall be subject to the
review and comment of Holders' Counsel, and (ii) not file any such Registration Statement or Prospectus (or amendment or supplement thereto or comparable statement) with the SEC to which
Holder's Counsel, any selling Holder or any other Inspector shall have reasonably objected on the grounds that such filing does not comply in all material respects with the requirements of the
Securities Act or of the rules or regulations thereunder; 

        (b)   prepare
and file with the SEC such amendments and supplements to such Registration Statement and the Prospectus used in connection therewith as may be necessary
(i) to keep such Registration Statement effective, and (ii) to comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by
such Registration Statement, in each case until such time as all of such Registrable Securities have been disposed of in accordance with the intended methods of disposition by the seller(s) thereof
set forth in such Registration Statement; provided, that except with respect to any Shelf Registration, such period need not extend beyond nine months
after the effective date of the Registration Statement; and provided, further, that with respect to any
Shelf
Registration, such period need not extend beyond the time period provided in Section 2.1, and which periods, in any event, shall terminate when all Registrable Securities covered by such
Registration Statement have been sold (but not before the expiration of the 90 day period referred to in Section 4(3) of the Securities Act and Rule 174 thereunder, if
applicable); 

        (c)   furnish,
without charge, to each selling Holder of such Registrable Securities and each Underwriter, if any, of the securities covered by such Registration Statement,
such number of copies of such Registration Statement, each amendment and supplement thereto (in each case including all exhibits), and the Prospectus included in such Registration Statement (including
each preliminary Prospectus) in conformity with the requirements of the Securities Act, and other documents, as such selling Holder and Underwriter may reasonably request in order to facilitate the
public sale or other disposition of the Registrable Securities owned by such selling Holder (the Company hereby consenting to the use in accordance with applicable law of each such Registration
Statement (or amendment or post-effective amendment thereto) and each such Prospectus (or preliminary prospectus or supplement thereto) by each such selling Holder of Registrable
Securities and the Underwriters, if any, in connection with the offering and sale of the Registrable Securities covered by such Registration Statement or Prospectus); 

        (d)   prior
to any public offering of Registrable Securities, use its best efforts to register or qualify all Registrable Securities and other securities covered by such
Registration Statement under such other securities or blue sky laws of such jurisdictions as any selling Holder of Registrable Securities covered by such Registration Statement or the sole or lead
managing Underwriter, if any, may reasonably request to enable such selling Holder to consummate the disposition in such jurisdictions of the Registrable Securities owned by such selling Holder and to
continue such registration or qualification in effect in each such jurisdiction for as long as such Registration Statement remains in effect (including through new filings or amendments or renewals),
and do any and all other acts and things which may be necessary or advisable to enable any such selling Holder to consummate the disposition in such jurisdictions of the Registrable Securities owned
by such selling Holder; provided, however, that the Company shall not be required to (i) qualify
generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 4.1(d), (ii) subject itself to taxation in any such jurisdiction, or
(iii) consent to general service of process in any such jurisdiction; 

14

 

        (e)   use
its best efforts to obtain all other approvals, consents, exemptions or authorizations from such governmental agencies or authorities as may be necessary to enable
the selling Holders of such Registrable Securities to consummate the disposition of such Registrable Securities; 

        (f)    promptly
notify Holders' Counsel, each Holder of Registrable Securities covered by such Registration Statement and the sole or lead managing Underwriter, if any:
(i) when the Registration Statement, any pre-effective amendment, the Prospectus or any prospectus supplement related thereto or post-effective amendment to the
Registration Statement has been filed and, with respect to the Registration Statement or any post-effective amendment, when the same
has become effective, (ii) of any request by the SEC or any state securities or blue sky authority for amendments or supplements to the Registration Statement or the Prospectus related thereto
or for additional information, (iii) of the issuance by the SEC of any stop order suspending the effectiveness of the Registration Statement or the initiation or threat of any proceedings for
that purpose, (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification of any Registrable Securities for sale under the securities or blue sky
laws of any jurisdiction or the initiation of any proceeding for such purpose, (v) of the existence of any fact of which the Company becomes aware or the happening of any event which results in
(A) the Registration Statement containing an untrue statement of a material fact or omitting to state a material fact required to be stated therein or necessary to make any statements therein
not misleading, or (B) the Prospectus included in such Registration Statement containing an untrue statement of a material fact or omitting to state a material fact required to be stated
therein or necessary to make any statements therein, in the light of the circumstances under which they were made, not misleading, (vi) if at any time the representations and warranties
contemplated by Section 2.5(b) cease to be true and correct in all material respects, and (vii) of the Company's reasonable determination that a post-effective amendment to a
Registration Statement would be appropriate or that there exists circumstances not yet disclosed to the public which make further sales under such Registration Statement inadvisable pending such
disclosure and post-effective amendment; and, if the notification relates to an event described in any of the clauses (ii) through (vii) of this Section 4.1(f), the
Company shall promptly prepare a supplement or post-effective amendment to such Registration Statement or related Prospectus or any document incorporated therein by reference or file any
other required document so that (1) such Registration Statement shall 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 not misleading, and (2) as thereafter delivered to the purchasers of the Registrable Securities being sold thereunder, 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 in the light of the circumstances under which they
were made not misleading (and shall furnish to each such Holder and each Underwriter, if any, a reasonable number of copies of such Prospectus so supplemented or amended); and if the notification
relates to an event described in clause (iii) of this Section 4.1(f), the Company shall take all reasonable action required to prevent the entry of such stop order or to remove it if
entered; 

        (g)   make
available for inspection by any selling Holder of Registrable Securities, any sole or lead managing Underwriter participating in any disposition pursuant to such
Registration Statement, Holders' Counsel and any attorney, accountant or other agent retained by any such seller or any Underwriter (each, an
"Inspector" and, collectively, the "Inspectors"), all financial and other records, pertinent corporate
documents and properties of the Company and any subsidiaries thereof as may be in existence at such time (collectively, the "Records") as shall be
necessary, in the opinion of such Holders' and such Underwriters' respective counsel, to enable them to exercise their due diligence responsibility and to conduct a reasonable investigation within the
meaning of the Securities Act, and cause the Company's and any subsidiaries' officers, directors and 

15

 

employees,
and the independent public accountants of the Company, to supply all information reasonably requested by any such Inspectors in connection with such Registration Statement; 

        (h)   if
requested by the Majority Holders of the Registration, obtain an opinion from the Company's counsel and a "cold comfort" letter from the Company's independent public
accountants who have certified the Company's financial statements included or incorporated by reference in such Registration Statement, in each case dated the effective date of such Registration
Statement (and if such registration involves an Underwritten Offering, dated the date of the closing under the underwriting agreement), in customary form and covering such matters as are customarily
covered by such opinions and "cold comfort" letters delivered to underwriters in underwritten public offerings, which opinion and letter shall be reasonably satisfactory to the sole or lead managing
Underwriter, if any, and to the Majority Holders of the Registration, and furnish to each Holder participating in the offering and to each Underwriter, if any, a copy of such opinion and letter
addressed to such Holder (in the case of the opinion) and Underwriter (in the case of the opinion and the "cold comfort" letter); 

        (i)    provide
a CUSIP number for all Registrable Securities and provide and cause to be maintained a transfer agent and registrar for all such Registrable Securities covered
by such Registration Statement not later than the effectiveness of such Registration Statement; 

        (j)    otherwise
use its best efforts to comply with all applicable rules and regulations of the SEC and any other governmental agency or authority having jurisdiction over the
offering, and make available to its security holders, as soon as reasonably practicable but no later than 90 days after the end of any 12-month period, an earnings statement
(i) commencing at the end of any month in which Registrable Securities are sold to Underwriters in an Underwritten Offering and (ii) commencing with the first day of the Company's
calendar month next succeeding each sale of Registrable Securities after the effective date of a Registration Statement, which statement shall cover such 12-month periods, in a manner
which satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder; 

        (k)   if
so requested by the Majority Holders of the Registration, use its best efforts to cause all such Registrable Securities to be listed (i) on each national
securities exchange on which the Company's securities are then listed or (ii) if securities of the Company are not at the time listed on any national securities exchange (or if the listing of
Registrable Securities is not permitted under the rules of each national securities exchange on which the Company's securities are then listed), on a national securities exchange designated by the
Majority Holders of the Registration; 

        (l)    keep
each selling Holder of Registrable Securities advised in writing as to the initiation and progress of any registration under Section 2 hereunder; 

        (m)  enter
into and perform customary agreements (including, if applicable, an underwriting agreement in customary form) and provide officers' certificates and other
customary closing documents; 

        (n)   cooperate
with each selling Holder of Registrable Securities and each Underwriter participating in the disposition of such Registrable Securities and their respective
counsel in connection with any filings required to be made with the NASD and make reasonably available its employees and personnel and
otherwise provide reasonable assistance to the Underwriters (taking into account the needs of the Company's businesses and the requirements of the marketing process) in the marketing of Registrable
Securities in any Underwritten Offering; 

        (o)   furnish
to each Holder participating in the offering and the sole or lead managing Underwriter, if any, without charge, at least one manually-signed copy of the
Registration Statement and any post-effective amendments thereto, including financial statements and 

16

 

schedules,
all documents incorporated therein by reference and all exhibits (including those deemed to be incorporated by reference); 

        (p)   cooperate
with the selling Holders of Registrable Securities and the sole or lead managing Underwriter, if any, to facilitate the timely preparation and delivery of
certificates not bearing any restrictive legends representing the Registrable Securities to be sold, and cause such Registrable Securities to be issued in such denominations and registered in such
names in accordance with the underwriting agreement prior to any sale of Registrable Securities to the Underwriters or, if not an Underwritten Offering, in accordance with the instructions of the
selling Holders of Registrable Securities at least three business days prior to any sale of Registrable Securities; 

        (q)   if
requested by the sole or lead managing Underwriter or any selling Holder of Registrable Securities, immediately incorporate in a prospectus supplement or
post-effective amendment such information concerning such Holder of Registrable Securities, the Underwriters or the intended method of distribution as the sole or lead managing Underwriter
or the selling Holder of Registrable Securities reasonably requests to be included therein and as is appropriate in the reasonable judgment of the Company, including, without limitation, information
with respect to the number of shares of the Registrable Securities being sold to the Underwriters, the purchase price being paid therefor by such Underwriters and with respect to any other terms of
the Underwritten Offering of the Registrable Securities to be sold in such offering; make all required filings of such Prospectus supplement or post-effective amendment as soon as notified
of the matters to be incorporated in such Prospectus supplement or post-effective amendment; and supplement or make amendments to any Registration Statement if requested by the sole or
lead managing Underwriter of such Registrable Securities; and 

        (r)   use
its best efforts to take all other steps necessary to expedite or facilitate the registration and disposition of the Registrable Securities contemplated hereby. 

 
 
        4.2.    Seller Information.     

        The
Company may require each selling Holder of Registrable Securities as to which any registration is being effected to furnish to the Company such information regarding such Holder,
such Holder's Registrable Securities and such Holder's intended method of disposition as the Company may from time to time reasonably request in writing;  provided that such information shall be used
only in connection with such registration. 

        If
any Registration Statement or comparable statement under "blue sky" laws refers to any Holder by name or otherwise as the Holder of any securities of the Company, then such Holder
shall have the right to require (i) the insertion therein of language, in form and substance satisfactory to such Holder and the Company, to the effect that the holding by such Holder of such
securities is not to be construed as a recommendation by such Holder of the investment quality of the Company's securities covered thereby and that such holding does not imply that such Holder will
assist in meeting any future financial requirements of the Company, and (ii) in the event that such reference to such Holder by name or otherwise is not in the judgment of the Company, as
advised by counsel, required by the Securities Act or any similar federal statute or any state "blue sky" or securities law then in force, the deletion of the reference to such Holder. 

 
 
        4.3.    Notice to Discontinue.     

        Each
Holder of Registrable Securities agrees by acquisition of such Registrable Securities that, upon receipt of any notice from the Company of the happening of any event of the kind
described in Section 4.1(f)(ii) through (vii), such Holder shall forthwith discontinue disposition of Registrable Securities pursuant to the Registration Statement covering such
Registrable Securities until such Holder's receipt of the copies of the supplemented or amended prospectus contemplated by Section 4.1(f) and, if so directed by the Company, such Holder shall
deliver to the Company (at the 

17

 

Company's
expense) all copies, other than permanent file copies, then in such Holder's possession of the Prospectus covering such Registrable Securities which is current at the time of receipt of such
notice. If the Company shall give any such notice, the Company shall extend the period during which such Registration Statement shall be maintained effective pursuant to this Agreement (including,
without limitation, the period referred to in Section 4.1(b)) by the number of days during the period from and including the date of the giving of such notice pursuant to Section 4.1(f)
to and including the date when the Holder shall have received the copies of the supplemented or amended prospectus contemplated by and meeting the requirements of Section 4.1(f). 

 
 
 5.    INDEMNIFICATION; CONTRIBUTION.     

 
 
        5.1.    Indemnification by the Company.     

        The
Company agrees to indemnify and hold harmless, to the fullest extent permitted by law, each Holder of Registrable Securities, its officers, directors, partners, members,
shareholders, employees, Affiliates and agents (collectively, "Agents") and each Person who controls such Holder (within the meaning of the Securities
Act) and its Agents with respect to each registration which has been effected pursuant to this Agreement, against any and all losses, claims, damages or liabilities, joint or several, actions or
proceedings (whether commenced or threatened) in respect thereof, and expenses (as incurred or suffered and including, but not limited to, any and all expenses incurred in investigating, preparing or
defending any litigation or proceeding, whether commenced or threatened, and the reasonable fees, disbursements and other charges of legal counsel) in respect thereof (collectively,
"Claims"), insofar as such Claims arise out of or are based upon any untrue or alleged untrue statement of a material fact contained in any Registration
Statement or Prospectus (including any preliminary, final or summary prospectus and any amendment or supplement thereto) related to any such registration or any omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements therein not misleading, or any violation by the Company of the Securities Act or any rule or regulation thereunder
applicable to the Company and relating to action or inaction required of the Company in connection with any such registration, or any qualification or compliance incident thereto;  provided, however, that the Company will not be liable in any such case to the extent that any such
Claims arise out of or are based upon any untrue statement or alleged untrue statement of a material fact or omission or alleged omission of a material fact so made in reliance upon and in conformity
with written information furnished to the Company in an instrument duly executed by such Holder specifically stating that it was expressly for use therein. The Company shall also indemnify any
Underwriters of the Registrable Securities, their Agents and each Person who controls any such Underwriter (within the meaning of the Securities Act) to the same extent as provided above with respect
to the indemnification of the Holders of Registrable Securities. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any Person who may be
entitled to indemnification pursuant to this Section 5 and shall survive the transfer of securities by such Holder or Underwriter. 

 
 
        5.2.    Indemnification by Holders.     

        Each
Holder, if Registrable Securities held by it are included in the securities as to which a registration is being effected, agrees to, severally and not jointly, indemnify and hold
harmless, to the fullest extent permitted by law, the Company, its directors and officers, each other Person who participates as an Underwriter in the offering or sale of such securities and its
Agents and each Person who controls the Company or any such Underwriter (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act) and its Agents
against any and all Claims, insofar as such Claims arise out of or are based upon any untrue or alleged untrue statement of a material fact contained in any Registration Statement or Prospectus
(including any preliminary, final or summary prospectus and any amendment or supplement thereto) related to such registration, or 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, to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or
alleged omission was made in reliance upon and in conformity 

18

 

with
written information furnished to the Company in an instrument duly executed by such Holder specifically stating that it was expressly for use therein;  provided, however, that the aggregate amount which any such Holder shall be required to pay pursuant to
this Section 5.2 shall in no event be greater than the amount of the net proceeds received by such Holder upon the sale of the Registrable Securities pursuant to the Registration Statement
giving rise to such Claims less all amounts previously paid by such Holder with respect to any such Claims. Such indemnity shall remain in full force and effect regardless of any investigation made by
or on behalf of such indemnified party and shall survive the transfer of such securities by such Holder or Underwriter. 

 
 
        5.3.    Conduct of Indemnification Proceedings.     

        Promptly
after receipt by an indemnified party of notice of any Claim or the commencement of any action or proceeding involving a Claim under this Section 5, such indemnified
party shall, if a claim in respect thereof is to be made against the indemnifying party pursuant to Section 5, (i) notify the indemnifying party in writing of the Claim or the
commencement of such action or proceeding; provided, that the failure of any indemnified party to provide such notice shall not relieve the indemnifying
party of its obligations under this Section 5, except to the extent the indemnifying party is materially and actually prejudiced thereby and shall not relieve the indemnifying party from any
liability which it may have to any indemnified party otherwise than under this Section 5, and (ii) permit such indemnifying party to assume the defense of such claim with counsel
reasonably satisfactory to the indemnified party; provided, however, that any indemnified party shall
have the right to employ separate counsel and to participate in the defense of such claim, but the fees and expenses of such counsel shall be at the expense of such indemnified party unless
(A) the indemnifying party has agreed in writing to pay such fees and expenses, (B) the indemnifying party shall have failed to assume the defense of such claim and employ counsel
reasonably satisfactory to such indemnified party within 10 days after receiving notice from such indemnified party that the indemnified party believes it has failed to do so, (C) in the
reasonable judgment of any such indemnified party, based upon advice of counsel, a conflict of interest may exist between such indemnified party and the indemnifying party with respect to such claims
(in which case, if the indemnified party notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not
have the right to assume the defense of such claim on behalf of such indemnified party) or (D) such indemnified party is a defendant in an action or proceeding which is also brought against the
indemnifying party and reasonably shall have concluded that there may be one or more legal defenses
available to such indemnified party which are not available to the indemnifying party. No indemnifying party shall be liable for any settlement of any such claim or action effected without its written
consent, which consent shall not be unreasonably withheld. In addition, without the consent of the indemnified party (which consent shall not be unreasonably withheld), no indemnifying party shall be
permitted to consent to entry of any judgment with respect to, or to effect the settlement or compromise of any pending or threatened action or claim in respect of which indemnification or
contribution may be sought hereunder (whether or not the indemnified party is an actual or potential party to such action or claim), unless such settlement, compromise or judgment (1) includes
an unconditional release of the indemnified party from all liability arising out of such action or claim, (2) does not include a statement as to or an admission of fault, culpability or a
failure to act, by or on behalf of any indemnified party, and (3) does not provide for any action on the part of any party other than the payment of money damages which is to be paid in full by
the indemnifying party. 

 
 
        5.4.    Contribution.     

        If
the indemnification provided for in Section 5.1 or 5.2 from the indemnifying party for any reason is unavailable to (other than by reason of exceptions provided therein), or is
insufficient to hold harmless, an indemnified party hereunder in respect of any Claim, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid
or payable by such indemnified party as a result of such Claim in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party,
on the other hand, in 

19

 

connection
with the actions which resulted in such Claim, as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified party shall be
determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material
fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such action. If, however, the foregoing allocation is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such
indemnified party in such proportion as is appropriate to reflect not only such relative faults but also the relative benefits of the indemnifying party and the indemnified party as well as any other
relevant equitable considerations. 

        The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5.4 were determined by pro
rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the immediately preceding paragraph. The
amount paid or payable by a party as a result of any Claim referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth in Section 5.3,
any legal or other fees, costs or expenses reasonably incurred by such party in connection with any investigation or proceeding. Notwithstanding anything in this Section 5.4 to the contrary, no
indemnifying party (other than the Company) shall be required pursuant to this Section 5.4 to contribute any amount in excess of the net proceeds received by such indemnifying party from the
sale of the Registrable Securities pursuant to the Registration Statement giving rise to such Claims, less all amounts previously paid by such indemnifying party with respect to such Claims. 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. 

 
 
        5.5.    Other Indemnification.     

        Indemnification
similar to that specified in the preceding Sections 5.1 and 5.2 (with appropriate modifications) shall be given by the Company and each selling Holder of Registrable
Securities with respect to any required registration or other qualification of securities under any Federal or state law or regulation of any governmental authority, other than the Securities Act. The
indemnity agreements contained herein shall be in addition to any other rights to indemnification or contribution which any indemnified party may have pursuant to law or contract. 

 
 
        5.6.    Indemnification Payments.     

        The
indemnification and contribution required by this Section 5 shall be made by periodic payments of the amount thereof during the course of any investigation or defense, as and
when bills are received or any expense, loss, damage or liability is incurred. 

20

  

 
 
 6.    GENERAL.     

 
 
        6.1.    Adjustments Affecting Registrable Securities.     

        The
Company agrees that it shall not effect or permit to occur any combination or subdivision of shares which would adversely affect the ability of the Holder of any Registrable
Securities to include such Registrable Securities in any registration contemplated by this Agreement or the marketability of such Registrable Securities in any such registration. 

 
 
        6.2.    Registration Rights to Others.     

        The
Company has not previously entered into an agreement with respect to its securities granting any registration rights to any Person. If the Company shall at any time hereafter provide
to any holder of any securities of the Company rights with respect to the registration of such securities under the Securities Act, (i) such rights shall not be in conflict with or adversely
affect any of the rights provided in this Agreement to the Holders and (ii) such rights may only be on terms or conditions more favorable to such holder than the terms and conditions provided
in this Agreement, with the consent of the Majority Investor Holders and in such case, the Company shall provide (by way of amendment to this Agreement or otherwise) such more favorable terms or
conditions to the Holders. 

 
 
        6.3.    Availability of Information; Rule 144; Rule 144A; Other Exemptions.     

        So
long as the Company shall not have filed a registration statement pursuant to Section 12 of the Exchange Act or a registration statement pursuant to the requirements of the
Securities Act, the Company shall, at any time and from time to time, upon the request of any Holder of Registrable Securities and upon the request of any Person designated by such Holder as a
prospective purchaser of any Registrable Securities, furnish in writing to such Holder or such prospective purchaser, as the case may be, a statement as of a date not earlier than 12 months
prior to the date of such request of the nature of the business of the Company and the products and services it offers and copies of the Company's most recent balance sheet and profit and loss and
retained earnings statements, together with similar financial statements for such part of the two preceding fiscal years as the Company shall have been in operation, all such financial statements to
be audited to the extent audited statements are reasonably available, provided that, in any event the most recent financial statements so furnished
shall include a balance sheet as of a date less than 16 months prior to the date of such request, statements of profit and loss and retained earnings for the 12 months preceding the date
of such balance sheet, and, if such balance sheet is not as of a date less than 6 months prior to the date of such request, additional statements of profit and loss and retained earnings for
the period from the date of such balance sheet to a date less than 6 months prior to the date of such request. If the Company shall have filed a registration statement pursuant to the
requirements of Section 12 of the Exchange Act or a registration statement pursuant to the requirements of the Securities Act, the Company covenants that it shall timely file any reports
required to be filed by it under the Securities Act or the Exchange Act (including, but not limited to, the reports under Sections 13 and 15(d) of the Exchange Act referred to in subparagraph
(c) of Rule 144 under the Securities Act), and that it shall take such further action as any Holder of Registrable Securities may reasonably request, all to the extent required from time
to time to enable such Holder to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by (i) Rule 144 and
Rule 144A under the Securities Act, as such rules may be amended from time to time, or (ii) any other rule or regulation now existing or hereafter adopted by the SEC. Upon the request of
any Holder of Registrable Securities, the Company shall deliver to such Holder a written statement as to whether it has complied with such requirements. Notwithstanding anything to the contrary
contained in this Agreement, Holders of Founders Shares shall not sell such shares under Rule 144 or otherwise (absent registration under the Securities Act) without the Company's prior written
consent, other than as permitted by Section 2.2(i) of this Agreement. 

21

 

 
 
        6.4.    Amendments and Waivers.     

        The
provisions of this Agreement may not be amended, modified, supplemented or terminated, and waivers or consents to departures from the provisions hereof may not be given, without the
written consent of the Company, the Majority Investor Holders and the Majority Management Holders, provided,  however, that no such amendment, modification,
supplement, waiver or consent to departure shall reduce the aforesaid percentage of Registrable
Securities without the written consent of all of the Holders of Registrable Securities; and provided,  further, that to the extent any Holder would be
disproportionately adversely affected by such amendment or waiver, then such Holder's consent shall also
be required. Nothing herein shall prohibit any amendment, modification, supplement, termination, waiver or consent to departure the adverse effect of which is limited only to those Holders who have
agreed to such amendment, modification, supplement, termination, waiver or consent to departure. 

 
 
        6.5.    Notices.     

        All
notices and other communications provided for or permitted hereunder shall be deemed to be sufficient if contained in a written instrument and shall be deemed to have been duly given
when delivered in person, by telecopy, by facsimile, by nationally-recognized overnight courier, or by first class registered or certified mail, postage prepaid, addressed to such party at the address
set forth below or such other address as may hereafter be designated in writing by the addressee as follows: 

        (i)    If
to the Company, to: 

EXCO
Holdings II, Inc.

12377 Merit Dr., Suite. 1700

Dallas, Texas 75251

Attention: Chief Financial Officer

Fax Number: (214) 368-2087 

With
a copy to: 

Haynes
and Boone, LLP

2505 N. Plano Road, Suite 4000

Richardson, Texas 75082

Attention: William L. Boeing

Fax Number: (972) 692-9053 

        (ii)   If
to the Investors, to the address of each Investor set forth in the records of the Company. 

        (iii)  If
to the Management Holders, to the address of such Management Holders set forth in the records of the Company. 

        (iv)  If
to any subsequent Holder, to the address of such Person set forth in the records of the Company. 

        All
such notices, requests, consents and other communications shall be deemed to have been delivered (a) in the case of personal delivery or delivery by telecopy or facsimile, on
the date of such delivery, (b) in the case of nationally-recognized overnight courier, on the next Business Day and (c) in the case
of mailing, on the third Business Day following such mailing if sent by certified mail, return receipt requested. 

 
 
        6.6.    Successors and Assigns.     

        This
Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, successors (including EXCO Holdings Inc. as successor by merger
upon the merger of the Company with and into EXCO Holdings Inc.) and permitted assigns (including any permitted transferee of Registrable Securities). Any Holder may assign to any transferee of
its Registrable Securities (other than a transferee that acquires such Registrable Securities in a registered public 

22

 

offering
or pursuant to a sale under Rule 144 of the Securities Act (or any successor rule)), its rights and obligations under this Agreement;  provided, however, if any transferee shall take and hold Registrable Securities, such transferee shall
promptly notify the Company and by taking and holding such Registrable Securities such transferee shall automatically be entitled to receive the benefits of and be conclusively deemed to have agreed
to be bound by and to perform all of the terms and provisions of this Agreement as if it were a party hereto (and shall, for all purposes, be deemed a Holder under this Agreement). If the Company
shall so request, any heir, successor or assign (including any transferee) shall agree in writing to acquire and hold the Registrable Securities subject to all of the terms hereof. For purposes of
this Agreement, "successor" for any entity other than a natural person shall mean a successor to such entity as a result of such entity's merger, consolidation, sale of substantially all of its
assets, or similar transaction. Notwithstanding any contrary provision herein, the Company may consent to and permit, without any further action of the Initial Holders, any person who subsequently
acquires Common Shares to become a "Holder" hereunder by executing a Joinder Agreement, in substantially the form attached hereto as Exhibit A. 

 
 
        6.7.    Counterparts.     

        This
Agreement may be executed in two or more counterparts, each of which, when so executed and delivered, shall be deemed to be an original, but all of which counterparts, taken
together, shall constitute one and the same instrument. 

 
 
        6.8.    Descriptive Headings, Etc.     

        The
headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning of terms contained herein. Unless the context of this Agreement
otherwise requires: (1) words of any gender shall be deemed to include each other gender; (2) words using the singular or plural number shall also include the plural or singular number,
respectively; (3) the words "hereof",
"herein" and "hereunder" and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section and
paragraph references are to the Sections and paragraphs of this Agreement unless otherwise specified; (4) the word "including" and words of similar import when used in this Agreement shall mean
"including, without limitation," unless otherwise specified; (5) "or" is not exclusive; and (6) provisions apply to successive events and transactions. 

 
 
        6.9.    Severability.     

        In
the event that any one or more of the provisions, paragraphs, words, clauses, phrases or sentences contained herein, or the application thereof in any circumstances, is held invalid,
illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision, paragraph, word, clause, phrase or sentence in every other respect and of the
other remaining provisions, paragraphs, words, clauses, phrases or sentences hereof shall not be in any way impaired, it being intended that all rights, powers and privileges of the parties hereto
shall be enforceable to the fullest extent permitted by law. 

 
 
        6.10.    Governing Law.     

        This
Agreement will be governed by and construed in accordance with the domestic laws of the State of Delaware, without giving effect to any choice of law or conflicting provision or
rule (whether of the State of Delaware, or any other jurisdiction) that would cause the laws of any jurisdiction other than the State of Delaware to be applied. In furtherance of the foregoing, the
internal law of the State of Delaware will control the interpretation and construction of this Agreement, even if under such jurisdiction's choice of law or conflict of law analysis, the substantive
law of some other jurisdiction would ordinarily apply. 

 
 
        6.11.    Remedies; Specific Performance.     

        The
parties hereto acknowledge that money damages would not be an adequate remedy at law if any party fails to perform in any material respect any of its obligations hereunder, and
accordingly 

23

 

agree
that each party, in addition to any other remedy to which it may be entitled at law or in equity, shall be entitled to seek to compel specific performance of the obligations of any other party
under this Agreement, without the posting of any bond, in accordance with the terms and conditions of this Agreement in any court of the United States or any State thereof having jurisdiction, and if
any action should be brought in equity to enforce any of the provisions of this Agreement, none of the parties hereto shall raise the defense that there is an adequate remedy at law. Except as
otherwise provided by law, a delay or omission by a party hereto in exercising any right or remedy accruing upon any such breach shall not impair the right or remedy or constitute a waiver of or
acquiescence in any such breach. No remedy shall be exclusive of any other remedy. All available remedies shall be cumulative. The failure to file (i) a Resale Registration Statement within the
time period specified in Section 2.1(a) or (ii) a Demand Registration Statement within 120 days of a Request under Section 2.2 shall each constitute, in the absence of an
injunction or a Blackout Period having been imposed or a Withdrawn Request, a breach thereof entitling the Holders to remedies hereunder. 

 
 
        6.12.    Entire Agreement.     

        This
Agreement is intended by the parties as a final expression of their agreement and 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. There are no restrictions, promises, representations, warranties, covenants or undertakings relating to such subject matter, other than those
set forth or referred to herein. This Agreement supersedes all prior agreements and understandings between the Company and the other parties to this Agreement with respect to such subject matter. 

 
 
        6.13.    Nominees for Beneficial Owners.     

        In
the event that any Registrable Securities are held by a nominee for the beneficial owner thereof, the beneficial owner thereof may, at its election in writing delivered to the
Company, be treated as the holder of such Registrable Securities for purposes of any request or other action by any holder or holders of Registrable Securities pursuant to this Agreement or any
determination of any number or percentage of shares of Registrable Securities held by any holder or holders of Registrable Securities contemplated by this Agreement. If the beneficial owner of any
Registrable Securities so elects, the Company may require assurances reasonably satisfactory to it of such owner's beneficial ownership of such Registrable Securities. 

 
 
        6.14.    Consent to Jurisdiction.     

        (a)   Each
of the parties hereto hereby irrevocably and unconditionally submits, for itself or himself and its or his property, to the exclusive jurisdiction of any Texas
state court sitting in Dallas county or federal court of the United States of America sitting in Dallas county, and any appellate court presiding thereover, in any action or proceeding arising out of
or relating to this Agreement or the transactions contemplated hereunder or thereunder or for recognition or enforcement of any judgment relating thereto, and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in any such Texas state court or, to the extent permitted by law, in any
such federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law. 

        (b)   Each
of the parties hereto irrevocably and unconditionally waives, to the fullest extent it or he may legally and effectively do so, any objection that it or he may now
or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereunder or thereunder in any State or federal
court sitting in Dallas county. Each of the parties hereto irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court. 

24

 

The
parties hereto further agree that the notice of any process required by any such court in the manner set forth in Section 6.5 shall constitute valid and lawful service of process against
them, without the necessity for service by any other means provided by law. 

 
 
        6.15.    Further Assurances.     

        Each
party hereto shall do and perform or cause to be done and performed all such further acts and things and shall execute and deliver all such other agreements, certificates,
instruments and documents as any other party hereto reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby. 

 
 
        6.16.    No Inconsistent Agreements.     

        The
Company will not hereafter enter into any agreement which is inconsistent with the rights granted to the Holders in this Agreement. 

 
 
        6.17.    Construction.     

        The
Company and the Initial Holders acknowledge that each of them has had the benefit of legal counsel of its own choice and has been afforded an opportunity to review this Agreement
with its legal counsel and that this Agreement shall be construed as if jointly drafted by the Company and the Holders. 

[Signature
Pages Follow] 

25

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first written above. 

	

EXCO HOLDINGS II, INC.	
 	

INVESTORS:
	

 	

 	
 	

 	

 
	

 	

 	
 	

 	

 
	By:	    
 Name:

Title:	 	By:	    
 Name:

Title:
	

 	

 	
 	

 	

 
	

 	

 	
 	

 	

 
	 	 	 	MANAGEMENT HOLDERS:
	

 	

 	
 	

 	

 
	

 	

 	
 	

 	

 
	 	 	 	[To Come]

26

 
Schedule 1  

Founders Shares  

	
Name
	
 	

Number of Founders Shares Owned

	
[To Come]	
 	

 

27

 
Exhibit A  

JOINDER AGREEMENT

TO

REGISTRATION RIGHTS AGREEMENT  

        This Joinder Agreement to Registration Rights Agreement is made and entered into as
of                        , 200            (the
"Agreement") by and between EXCO Holdings II, Inc., a Delaware corporation (the "Company"), and
the person listed on the signature page hereto under the heading "Holder" (such person being referred to as the "Holder"). 

        WHEREAS,
to provide for certain registration rights with respect to the Company's common stock, the Company and the Initial Holders specified on the signature pages thereto have executed
that certain Registration Rights Agreement dated as of September    , 2005 (the "Registration Rights Agreement"); and 

        WHEREAS,
Holder desires to become a party to the Registration Rights Agreement. 

        NOW,
THEREFORE, in consideration of the foregoing, the delivery to and receipt by Holder of Common Shares, the covenants and agreements contained herein and other good and valuable
consideration, the receipt, adequacy and sufficiency of which is hereby acknowledged, Holder hereby agrees as follows: 

        1.     Holder
hereby executes this Agreement for the purpose of becoming a "Holder" under the Registration Rights Agreement. Holder hereby assumes all of the duties, obligations
and liabilities of a "Holder" under the Registration Rights Agreement and shall be designated as a "[Investor]
[Management] Holder" thereunder. 

        2.     Holder
shall be deemed a "Holder" for all purposes under the Registration Rights Agreement, and shall be subject to and shall benefit from all of the rights and
obligations of a "Holder" thereunder. All references in the Registration Rights Agreement to "Holder," "[Investor]
[Management] Holder" or "Initial Holder" shall mean and be a reference to Holder. The Registration Rights Agreement is hereby amended by deeming the
signature of Holder hereto as a signature to the Registration Rights Agreement. 

        3.     This
Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to principles of conflicts of law. 

*
* * * * 

28

 

        IN
WITNESS WHEREOF, this Agreement has been executed and delivered as of the date above first written. 

	

 	
 	
EXCO HOLDINGS II, INC.
	

 	
 	

 	

 
	 	 	By:	    
 Name:

Title:
	
 	
 	
HOLDER:
	
 	
 	

    
 [Name]

29

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