Document:

Exhibit 4.3

 

THE HOWARD HUGHES CORPORATION

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT, dated as of [·], 2010 (this “Agreement”), by and between
the purchasers listed on Schedule I hereto (the “Purchasers”),
Blackstone Real Estate Partners VI L.P., a Delaware limited partnership (“BREP
VI”, and collectively with the entities listed on Schedule II
hereto, “Blackstone”), and The Howard Hughes Corporation, a Delaware
corporation (the “Company”).

 

R E C I T A L S

 

WHEREAS, the Purchasers have, pursuant to the terms of that certain
Amended and Restated Stock Purchase Agreement, effective as of March 31,
2010, by and between the Company and the Purchasers (as the same may be amended
from time to time, the “Stock Purchase Agreement”) agreed, among other
things, to purchase [1,312,500] shares of common stock, par value $0.01, of the
Company (the “Common Stock”);

 

WHEREAS, (a) the Purchasers have, pursuant to the terms of that
certain Purchase Agreement, dated as of August 2, 2010, by and among the
Purchasers and BREP VI agreed, among other things, that Blackstone shall
purchase in the Purchasers’ place 100,191 shares of Common Stock under the
Stock Purchase Agreement, (b) REP Investments LLC (“REP”) has,
pursuant to the terms of that certain Purchase Agreement, dated as of August 2,
2010, by and between REP and BREP VI agreed, among other things, that
Blackstone shall purchase in REP’s place 200,382 shares of Common Stock under
the Cornerstone Investment Agreement (as defined below) and (c) The Fairholme
Fund, a series of Fairholme Funds, Inc. and Fairholme Focused Income Fund,
a series of Fairholme Funds, Inc. have, pursuant to the terms of that
certain Purchase Agreement, dated as of August 2, 2010, by and among such
entities and BREP VI agreed, among other things, that Blackstone shall purchase
in their place 100,191 shares of Common Stock under the Fairholme Stock
Purchase Agreement (as defined below); and

 

WHEREAS, in case any securities held by a Purchaser or Blackstone or
any of their respective transferees are at any time not freely transferable by
the holder in accordance with applicable laws, the Company, Blackstone and the
Purchasers desire to define certain registration rights with respect to the
Common Stock, certain warrants and certain other securities on the terms and
subject to the conditions herein set forth.

 

NOW, THEREFORE, in consideration of the foregoing premises and for
other good and valuable consideration, the parties hereby agree as follows:

 

SECTION 1.  DEFINITIONS

 

As used in this Agreement, the following terms have the respective
meanings set forth below:

 

Affiliate:  shall mean
as to any Person, any other Person which, directly or indirectly, is in control
of, is controlled by, or is under common control with, the first Person.  A Person shall be deemed to control another
Person if the controlling Person possesses, directly or

 

 

indirectly,
the power to direct or cause the direction of the management and policies of
the other Person, whether through the ownership of voting securities, by
contract, or otherwise;

 

Agreement:  shall have
the meaning set forth in the Preamble hereto;

 

Blackstone:  shall have
the meaning set forth in the Preamble hereto;

 

Brookfield Holders:  shall mean the “Holders” defined in that
certain Registration Rights Agreement, dated as of the date hereof, by and
between the Company and REP Investments LLC, a Delaware limited liability
company, as amended from time to time;

 

Brookfield/Fairholme Holders:  shall mean, collectively, the Brookfield
Holders and Fairholme Holders, and Brookfield/Fairholme Holder shall mean any
Brookfield Holder or Fairholme Holder;

 

Closing Date: shall have the meaning ascribed thereto in the
Stock Purchase Agreement;

 

Commission:  shall mean
the Securities and Exchange Commission or any other federal agency at the time
administering the Securities Act;

 

Common Stock:  shall have
the meaning set forth in the Recitals hereto;

 

Company:  shall have
the meaning set forth in the Preamble hereto;

 

Cornerstone Investment Agreement:  shall
mean that certain Amended and Cornerstone Investment Agreement, effective as of March 31, 2010, by and
between GGP and REP Investments LLC, a Delaware limited liability company, as
amended from time to time;

 

Demand Notice: shall have the meaning set forth in Section 2(a)(i) hereof;

 

Exchange Act:  shall mean
the Securities Exchange Act of 1934, as amended (or any successor act), and the
rules and regulations promulgated thereunder;

 

Fairholme Holders: 
shall mean the “Holders” defined in that certain Registration Rights
Agreement, dated as of the date hereof, by and between the Company and The
Fairholme Fund, a series of Fairholme Funds, Inc. a Maryland corporation,
and Fairholme Focused Income Fund, a series of Fairholme Funds, Inc., a
Maryland corporation, as amended from time to time;

 

Fairholme Stock Purchase Agreement:  shall
mean that certain Amended and Restated Stock
Purchase Agreement, effective as of March 31, 2010, by and
between GGP and the Fairholme Holders, as amended from time to time;

 

FINRA:  shall mean
the Financial Industry Regulatory Authority;

 

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Holder:  shall mean
any holder of Registrable Securities subject to this Agreement, solely in their
capacity as such, including Permitted Assignees;

 

Indemnified Party: 
shall have the meaning set forth in Section 2(f)(iii) hereof;

 

Indemnifying Party:  shall have the meaning set forth in Section 2(f)(iii) hereof;

 

Initial Investors: 
shall mean (i) the Purchasers, (ii) any member of the
Purchaser Group, (iii) Blackstone and (iv) any Permitted Assignees
under clauses (i) and (ii) of Section 3(e) hereof;

 

Initiating Holder(s):  shall mean any Holder or any group of
Holders, other than Blackstone, with respect to the Registrable Securities it
is designated to receive pursuant to the Investment Agreements;

 

Investment Agreements:  shall mean, collectively, the Cornerstone
Investment Agreement, the Fairholme Stock Purchase Agreement and the Stock
Purchase Agreement;

 

Investors:  shall mean (i) any
Initial Investors and (ii) any Permitted Assignees under clause (iii) of
Section 3(e) hereof;

 

Issuer Free Writing Prospectus:  shall mean an “Issuer Free Writing
Prospectus,” as defined in Rule 433 under the Securities Act, relating to
an offer of Registrable Securities;

 

Losses:  shall have
the meaning set forth in Section 2(f)(i) hereof;

 

Other Stockholders:  shall have the meaning set forth in Section 2(a)(iii) hereof;

 

Participating Holders:  shall mean Holders participating in the
Registration relating to the Registrable Securities;

 

Permitted Assignees:  shall have the meaning set forth in Section 3(e) hereto;

 

Person:  shall mean
an individual, partnership, joint-stock company, corporation, trust or
unincorporated organization, and a government or agency or political
subdivision thereof;

 

Prospectus:  shall mean
the prospectus (including any preliminary, final or summary prospectus)
included in any Registration Statement, all amendments and supplements to such
prospectus and all other material incorporated by reference in such prospectus;

 

Purchaser Group: shall have the meaning ascribed thereto in
the Stock Purchase Agreement;

 

Purchasers:  shall have
the meaning set forth in the Preamble hereto;

 

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Qualifying Employee Stock:  shall mean (i) rights and options issued
in the ordinary course of business under employee benefits plans of the Company
or any predecessor or otherwise to executives in compensation arrangements
approved by the Board of Directors of the Company or any predecessor and any
securities issued after the date hereof upon exercise of such rights and
options and options issued to employees of the Company or any predecessor as a
result of adjustments to options in connection with the reorganization of the
Company or any predecessor and (ii) restricted stock and restricted stock
units issued after the date hereof in the ordinary course of business under
employee benefit plans and securities issued after the date hereof in
settlement of any such restricted stock units;

 

Register, Registered and Registration:  shall mean a registration effected by
preparing and (a) filing a Registration Statement in compliance with the
Securities Act (and any post-effective amendments filed or required to be
filed) and the declaration or ordering of effectiveness of such Registration
Statement, or (b) filing a Prospectus and/or prospectus supplement in
respect of an appropriate effective Registration Statement;

 

Registrable Securities:  shall mean (A) any shares of Common
Stock acquired or held by an Initial Investor on or after the date hereof
(whether or not acquired pursuant to the Stock Purchase Agreement), including
without limitation shares of Common Stock acquired in connection with the
exercise of any Warrants and shares of Common Stock which at any time an
Initial Investor has a right or obligation to purchase under the Stock Purchase
Agreement, (B) (i) any securities of the Company or its Affiliates
issued as a dividend or other distribution with respect to, or in exchange for
or in conversion, exercise or replacement of, any Registrable Securities
described in (A) or (C) (the “Initial Securities”) or
securities that may become Registrable Securities by virtue of clause (B)(iii) or
(ii) any securities of the Company or its Affiliates offered wholly or
partly in consideration of the Initial Securities or securities that may become
Registrable Securities by virtue of clause (B)(iii) in any tender or
exchange offer or (iii) any securities of the Company or its Affiliates
issued as a dividend or other distribution with respect to, or in exchange for
or in conversion, exercise or replacement of or offered wholly or partly in any
tender or exchange offer in consideration of any Registrable Securities described
in (B)(i) or (B)(ii), (C) Warrants acquired or held by an Initial
Investor on or after the date hereof and (D) any Registrable Securities
described in (A), (B) or (C) above acquired or held by a Person, for which rights
and obligations have been assigned pursuant to clause (iii) of Section 3(e) and
in accordance with the terms of Section 3(e) hereof; provided,
that as to any particular Registrable Securities, such securities shall cease
to be Registrable Securities (i) when a Registration Statement with respect
to such securities has been declared effective under the Securities Act and
such securities have been disposed of pursuant to such Registration Statement, (ii) after
such securities have been sold in accordance with Rule 144 (but not Rule 144A),
(iii) after such securities shall have otherwise been transferred and new
securities not subject to transfer restrictions under any federal securities
laws and not bearing any legend restricting further transfer shall have been
delivered by the Company, all applicable holding periods shall have expired,
and no other applicable and legally binding restriction on transfer by the
holder thereof shall exist, (iv) when such securities are eligible for
sale pursuant to Rule 144 under the Securities Act without limitation
thereunder on volume or manner of sale, or (v) when such securities cease
to be outstanding;

 

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Registration Expenses:  shall mean (a) any and all expenses
incurred by the Company and its Subsidiaries in effecting any Registration
pursuant to this Agreement, including, without limitation, all (i) Registration
and filing fees, and all other fees and expenses payable in connection with the
listing of securities on any securities exchange or automated interdealer
quotation system, (ii) fees and expenses of compliance with any securities
or “blue sky” laws (including fees and disbursements of counsel in connection
with “blue sky” qualifications of the securities registered), (iii) expenses
in connection with the preparation, printing, mailing and delivery of any
Registration Statements, Prospectuses, Issuer Free Writing Prospectus and
other documents in connection therewith and any amendments or supplements
thereto, (iv) security engraving and printing expenses, (v) internal
expenses of the Company (including, without limitation, all salaries and
expenses of its officers and employees performing legal or accounting duties), (vi) fees
and disbursements of counsel for the Company and fees and expenses for independent
certified public accountants retained by the Company (including the expenses
associated with the delivery by independent certified public accountants of any
comfort letters requested pursuant to the terms hereof), (vii) fees and
expenses of any special experts retained by the Company in connection with such
Registration, (viii) fees and expenses in connection with any review by
FINRA of any underwriting arrangements or other terms of the offering, and all
reasonable fees and expenses of any “qualified independent underwriter”, (ix) reasonable
fees and disbursements of underwriters customarily paid by issuers or sellers
of securities, but excluding any underwriting fees, discounts and commissions
attributable to the sale of Registrable Securities and fees and expenses of
counsel, (x) costs of printing and producing any agreements among
underwriters, underwriting agreements, any “blue sky” or legal investment
memoranda and any selling agreements and other documents in connection with the
offering, sale or delivery of the Registrable Securities, (xi) transfer
agents’ and registrars’ fees and expenses and the fees and expenses of any
other agent or trustee appointed in connection with such offering and (xii) expenses
relating to any analyst or investor presentations or any “road shows”
undertaken in connection with the Registration, marketing or selling of the
Registrable Securities and (b) reasonable and documented fees and expenses
of one counsel for all of the Participating Holders, which counsel shall be selected
by the Participating Holder holding the largest number of the Registrable
Securities to be sold in the applicable Registration.  Registration Expenses shall not include any
out-of-pocket expenses of the Participating Holders;

 

Registration Statement:  shall mean any registration statement of the
Company that covers Registrable Securities pursuant to the provisions of this
Agreement filed with, or to be filed with, the Commission under the rules and
regulations promulgated under the Securities Act, including the related
Prospectus, amendments and supplements to such registration statement,
including pre- and post-effective amendments, and all exhibits, financial
information and all material incorporated by reference in such registration
statement;

 

Required Shelf Registration Statement: shall have the meaning set
forth in Section 2(c);

 

Rule 144; Rule 144A:  shall mean Rule 144 and Rule 144A,
respectively, under the Securities Act (or any successor provisions then in
force);

 

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S-1 Registration Statement: shall mean a registration
statement of the Company on Form S-1 (or any comparable or successor form)
filed with the Commission registering any Registrable Securities;

 

Scheduled Black-Out Period:  shall mean the period from and including the
last day of a fiscal quarter of the Company to and including the earliest of (i) the
Business Day after the day on which the Company publicly releases its earnings
information for such quarter or annual earnings information, as applicable, and
(ii) the day on which the executive officers and directors of the Company
are no longer prohibited by Company policies applicable with respect to such
quarterly earnings period from buying or selling equity securities of the Company;

 

security, securities:  shall have the meaning set forth in Section 2(a)(1) of
the Securities Act;

 

Securities Act: 
shall mean the Securities Act of 1933, as amended (or any successor
statute thereto), and the rules and regulations promulgated thereunder;

 

Selling Expenses: 
shall mean all underwriting discounts, selling commissions and stock
transfer taxes applicable to the sale of Registrable Securities and all fees
and disbursements of counsel for each of the Holders, other than the fees and
expenses of one counsel for all of the Holders, which shall be paid for by the
Company in accordance with the terms set forth in clause (b) of the
definition of “Registration Expenses” set forth herein;

 

Shelf Registration Statement:  shall mean a “shelf” registration statement
of the Company that covers all the Registrable Securities (and may cover other
securities of the Company) on Form S-3 and under Rule 415 or, if the
Company is not then eligible to file on Form S-3, on Form S-1 under
the Securities Act, or any successor rule that may be adopted by the
Commission, and all amendments and supplements to such registration statement,
including post-effective amendments, in each case including the Prospectus
contained therein, all exhibits thereto and any document incorporated by
reference therein;

 

Stock Purchase Agreement:  shall have the meaning set forth in the
Recitals hereto; and

 

Warrants:  shall mean
the warrants issued by the Company from time to time pursuant to that certain
Warrant Agreement, dated as of November [    ], 2010,
by and between the Company and Mellon Investor Services LLC.

 

SECTION 2.  REGISTRATION RIGHTS

 

(a)           Demand Registration.

 

(i)            Request for Registration.  Subject to the limitations and conditions of Section 2(a)(ii),
if the Company shall receive from an Initiating Holder(s) a written demand
(the “Demand Notice”) that the Company effect any Registration with
respect to all or a part of the 

 

6

 

Registrable Securities owned by such Initiating
Holder(s) having an estimated aggregate fair market value of at least $25
million, the Company shall:

 

(1)           promptly give written notice of the proposed Registration
to all other Holders in accordance with the terms of Section 2(b);

 

(2)           use its reasonable best
efforts to file a Registration Statement with the Commission in
accordance with the request of the Initiating Holder(s), including without
limitation the method of disposition specified therein and
covering resales of the Registrable Securities requested to be
registered, as promptly as reasonably
practicable but no later than (x) in the case of a Registration Statement
other than an S-1 Registration Statement, within 30 days of
receipt of the Demand Notice or (y) in the case of an S-1 Registration
Statement, within 60 days of
receipt of the Demand Notice;

 

(3)           use reasonable best
efforts to cause such Registration Statement to be declared or become
effective as promptly as practicable, but in no event later than 60 days after the date of initial filing of a Registration Statement
pursuant to Section 2(a)(i)(2); and

 

(4)           use reasonable best efforts to keep such Registration Statement continuously effective and
in compliance with the Securities Act and usable for resale of such Registrable
Securities for the period as requested in
writing by the Initiating Holder(s) or such longer period as may be
requested in writing by any Holder participating in such registration (which
periods shall be extended to the extent of any suspensions of sales pursuant to
Sections 2(a)(ii)(3) or (4));

 

provided, however,
that the Company shall be permitted, with the consent of the Initiating Holder(s) not
to be unreasonably withheld, to file a post-effective amendment or prospectus
supplement to any currently effective Shelf Registration Statement (including,
without limitation, any resale registration statement filed pursuant to the
terms of the Stock Purchase Agreement) in lieu of an additional registration
statement pursuant to Section 2(a)(i) to the extent the Company reasonably
determines that the Registrable Securities of the Initiating Holder(s) may
be sold thereunder by such Initiating Holder(s) pursuant to their intended
plan of distribution (in which case such post-effective amendment or prospectus
supplement shall not be counted against the limited number of demand
registrations).  It shall not be
unreasonable if, following the recommendation of an underwriter, the Initiating
Holder(s) do not consent to the Company filing a post-effective amendment
or prospectus supplement to a Shelf Registration Statement in lieu of an
additional registration statement requested by the Initiating Holder(s).

 

(ii)           Notwithstanding anything to the contrary contained herein,
the Company shall not be obligated to effect, or take any action to effect, any
such Registration pursuant to this Section 2(a):

 

(1)           In any particular jurisdiction in which the Company would
be required to execute a general consent to service of process or qualify to do
business in effecting such Registration, qualification or compliance, unless
the Company is already subject to service in such jurisdiction and except as
may be required by the Securities Act or applicable rules or regulations
thereunder;

 

7

 

(2)           With respect to securities that are not Registrable
Securities;

 

(3)           If the Company has notified the Holders that in the good
faith judgment of the Company, it would be materially detrimental to the
Company or its security holders for such registration to be effected at such
time, in which event the Company shall have the right to defer such
registration for a period of not more than 60 days; provided, that such
right to delay a registration pursuant to clause (3) shall be exercised by
the Company only if the Company has generally exercised (or is concurrently
exercising) similar black-out rights against holders of similar securities that
have registration rights, if any; or

 

(4)           Solely with respect to any
Affiliate of the Company, during any Scheduled Black-Out Period;

 

provided, that the
total number of days that any such suspension, deferral or delay in
registration pursuant to clauses (3) and (4) in the aggregate may be
in effect in any 180 day period shall not exceed 60 days.  The Company agrees to use its reasonable best
efforts to issue earnings releases as promptly as practicable following the end
of quarterly reporting periods and to otherwise minimize the duration of
Scheduled Black-Out Periods.

 

(iii)          The
Registration Statement filed pursuant to the request of the Initiating Holder
may, subject to the provisions of Section 2(a)(iv) below, include
shares of Common Stock which are held by Holders and Persons who, by virtue of
agreements with the Company (other than this Agreement), are entitled to
include their securities in any such Registration (such Persons, other than
Holders, “Other Stockholders”). 
In the event the Initiating Holder(s) request a Registration
pursuant to this Section 2(a) in connection with a distribution of
Registrable Securities to its partners or members or any other Holder elects to
participate in such Registration pursuant to Section 2(b) hereof in
connection with a distribution of Registrable Securities to its partners or
members, the Registration shall provide for the resale by such partners or
members, if requested by such Holder.

 

(iv)          Underwriting.  If the Initiating Holder(s) intend to
distribute the Registrable Securities covered by their request by means of an
underwriting, it shall so advise the Company as a part of the request made
pursuant to Section 2(a).  If Other
Stockholders or Holders, to the extent they have any registration rights under Section 2(b),
request inclusion of their shares of Common Stock in the underwriting, the
Initiating Holder(s) shall offer to include the shares of Common Stock of
such Holders and Other Stockholders in the underwriting and may condition such
offer on their acceptance of the further applicable provisions of this Section 2.  The Holders whose Registrable Securities are
to be included in such Registration and the Company shall (together with all
Other Stockholders proposing to distribute their shares of Common Stock through
such underwriting) enter into an underwriting agreement in customary form for
secondary public offerings with the managing underwriter or underwriters
selected for such underwriting by a majority-in-interest of the Holders whose
Registrable Securities are to be included in such Registration subject to
approval by the Company not to be unreasonably withheld (which underwriters may
also include a non-bookrunning co-manager selected by the Company subject to
approval by a majority-in-interest of the Holders whose Registrable Securities
are to be included in such Registration); provided, however, that
such underwriting 

 

8

 

agreement shall not provide for indemnification or
contribution obligations on the part of any Holder or Other Stockholder greater
than the obligations of the Holders under Section (2)(f)(ii) or Section 2(f)(iv).  Notwithstanding any other provision of this Section 2(a),
if the managing underwriter or underwriters advises the Holders in writing that
marketing factors require a limitation on the number of shares to be
underwritten, some or all of the securities of the Company held by the Other
Stockholders (other than the Brookfield/Fairholme Holders) shall be excluded
from such Registration to the extent so required by such limitation.  If, after the exclusion of such shares held
by such Other Stockholders (other than the Brookfield/Fairholme Holders),
further reductions are still required due to the marketing limitation, the
number of Registrable Securities included in the Registration by each Holder
(including the Initiating Holder(s)) and the Brookfield/Fairholme Holders shall
be reduced on a pro rata basis (based on the number of Registrable Securities
requested to be included in such registration by such Holders and the
Brookfield/Fairholme Holders, as applicable), by such minimum number of shares
as is necessary to comply with such request. 
No Registrable Securities or any other securities excluded from the
underwriting by reason of the underwriter’s marketing limitation shall be
included in such Registration.  If any
Holder or Other Stockholder who has requested inclusion in such Registration as
provided above disapproves of the terms of the underwriting, such Person may
elect to withdraw therefrom by providing written notice to the Company, the
underwriter and the Initiating Holder(s). 
The securities so withdrawn shall also be withdrawn from
Registration.  If the underwriter has not
limited the number of Registrable Securities or other securities to be
underwritten, the Company and executive officers and directors of the Company
(whether or not such Persons have registration rights pursuant to Section 2(b) hereof)
may include its or their securities for its or their own account in such
Registration if the managing underwriter or underwriters and the Company so
agree and if the number of Registrable Securities and other securities which
would otherwise have been included in such Registration and underwriting will
not thereby be limited.

 

(v)           The
number of demand registrations that the Holders shall be entitled to request,
and that the Company shall be obligated to undertake, pursuant to this Section 2(a) shall
be unlimited; provided, that the Company shall not be obligated to
undertake more than three underwritten offerings pursuant to this Section 2
during the term of this Agreement, provided, further that in no
event shall the Company be required to effect more than one underwritten
offering in any twelve-month period pursuant to this Section 2.

 

(vi)          In the case of an underwritten offering under this Section 2(a),
the price, underwriting discount and other financial terms for the Registrable
Securities shall be determined by the Initiating Holder(s).

 

(b)           Piggyback
Registration.

 

(i)            If
the Company shall determine to register any of its
capital stock (including any warrants) either (x) for its own
account, (y) for the account of the Holders listed in Section 2(a) pursuant
to the terms thereof, or (z) for the account of Other Stockholders (other
than (A) a Registration relating solely to Qualifying Employee Stock, (B) a
Registration relating solely to a Rule 145 transaction under the
Securities Act or (C) a Registration on any Registration form which does
not permit secondary sales or does not include substantially the 

 

9

 

same information as would be required to be included
in a Registration Statement), the Company will, subject to the conditions set
forth in this Section 2(b):

 

(1)           promptly give to each of the Holders a written notice
thereof (which shall include a list of the jurisdictions in which the Company
intends to attempt to qualify such securities under the applicable blue sky or
other state securities laws); and

 

(2)           subject to Section 2(b)(ii) below and any
transfer restrictions any Holder may be a party to, include in such
Registration (and any related qualification under blue sky laws or other
compliance), and in any underwriting involved therein, all the Registrable
Securities specified in a written request or requests, made by the
Holders.  Such written request may
specify all or a part of the Holders’ Registrable Securities and shall be
received by the Company within ten (10) days after written notice from the
Company is given under Section 2(b)(i)(1) above.  In the event any Holder requests inclusion in
a Registration pursuant to this Section 2(b) in connection with a
distribution of Registrable Securities to its partners or members, the
Registration shall provide for the resale by such partners or members, if
requested by such Holder.

 

(ii)           Underwriting.  If the Registration of which the Company
gives notice is for a Registered public offering involving an underwriting, the
Company shall so advise each of the Holders as a part of the written notice
given pursuant to Section 2(b)(i)(1) above.  In such event, the right of each of the
Holders to Registration pursuant to this Section 2(b) shall be
conditioned upon such Holders’ participation in such underwriting and the
inclusion of such Holders’ Registrable Securities in the underwriting to the
extent provided herein.  The Holders
whose Registrable Securities are to be included in such Registration shall
(together with the Company and the Other Stockholders distributing their
securities through such underwriting) enter into an underwriting agreement in
customary form for secondary public offerings with the managing underwriter or
underwriters selected for underwriting by the Company (and if the Registration
was initiated by a Holder pursuant to Section 2(a), such underwriters must
be selected by the Initiating Holder(s) and reasonably acceptable to the
Company); provided, however, that such underwriting agreement
shall not provide for indemnification or contribution obligations on the part
of any Holder or Other Stockholder greater than the obligations of the Holders
under Section 2(f)(ii) or Section 2(f)(iv).  Notwithstanding any other provision of this Section 2(b),
if any Registration in respect of which any Holder is exercising its rights
under this Section 2(b) involves an underwritten public offering
(other than a demand Registration pursuant to Section 2(a), in which case
the provisions with respect to priority of inclusion in such Registration set
forth in Section 2(a) shall apply) and the managing underwriter or
underwriters advises the Company that in its view marketing factors require a
limitation on the number of securities to be underwritten, then there shall be
included in such underwritten offering the number or dollar amount of
securities of the Company that in the opinion of the managing underwriter or
underwriters can be sold without adversely affecting such offering, and such
number of securities of the Company shall be allocated for inclusion as
follows: (1) first all securities of the Company being sold by the Company
for its own account or by any Person (other than a Holder or a Brookfield/Fairholme
Holder) exercising a contractual right to demand registration; (2) second,
all Registrable Securities requested to be included by the Holders, all
Registrable Securities to be included by the Brookfield/Fairholme
Holders and securities of the

 

10

 

Company being sold by any Person (other than a
Holder or a Brookfield/Fairholme Holder) with similar piggyback registration
rights, pro rata, based on the number of shares requested to be included in
such registration by such Holders, the Brookfield/Fairholme
Holders and such Persons; and (3) third, among any other holders of
securities of the Company requesting such registration, pro rata, based on the
number of securities requested to be included in such registration by each such
holder.  For the avoidance of doubt, in
the event any Brookfield/Fairholme Holder exercises demand registration rights,
such registration is an underwritten public offering and the managing
underwriter advises that marketing factors require a limitation on the number
of securities to be so underwritten, Registrable Securities of any Holders
exercising piggyback rights under this Section 2(b) in connection
with such offering and any securities to be included in such offering by the
Brookfield/Fairholme Holders shall be included in such offering in the same
priority and allocated on a pro rata basis, as set forth in clause (2) above.  If any of the Holders or any officer,
director or Other Stockholder disapproves of the terms of any such
underwriting, he, she or it may elect to withdraw therefrom by providing
written notice to the Company, the underwriter and the Initiating
Holder(s).  Any Registrable Securities or
other securities excluded or withdrawn from such underwriting shall be
withdrawn from such Registration.

 

(c)           Required
Shelf Registration Statement.  From
and after the declaration of effectiveness by the Commission of the Shelf
Registration Statement contemplated by Section 7.1(l) of the Stock
Purchase Agreement (the “Required Shelf Registration Statement”), the
Company shall use reasonable best efforts to cause such Required Shelf
Registration Statement to be continuously effective so long as there are any
Registrable Securities outstanding.  In
connection with the Required Shelf Registration Statement, the Company will, subject
to the terms and limitations of this Section 2, as promptly as reasonably
practicable upon notice from any Holder requesting Registration in accordance
with the terms of this Section 2(c), cooperate in any shelf take-down by
amending or supplementing the Prospectus related to such Registration as may be
reasonably requested by such Holder or as otherwise required to reflect the
number of Registrable Securities to be sold thereunder.

 

(d)           Expenses
of Registration.  All Registration
Expenses incurred in connection with any Registration, qualification or
compliance pursuant to this Section 2 shall be borne by the Company, and
all Selling Expenses shall be borne by the Holders of the securities so
registered pro rata on the basis of the number of their shares so registered
(or, in the case of fees and disbursements of counsel and advisors to any
Holders that do not constitute Registration Expenses, by the Holders as
incurred).

 

(e)           Registration
Procedures.  In the case of each
Registration effected by the Company pursuant to this Section 2, the
Company will keep the Participating Holders advised in writing as to the
initiation of each Registration and as to the completion thereof.  At its expense, the Company will:

 

(i)            as
promptly as practicable, prepare and file with the Commission such pre- and
post-effective amendments to such Registration Statement, supplements to the
Prospectus and such amendments or supplements to any Issuer Free Writing
Prospectus as may be (1) reasonably requested by the Initiating Holder(s) (if
any), (2) reasonably requested by any other Participating Holder (to the
extent such request relates to information relating to such 

 

11

 

Participating
Holder), or (3) necessary to keep such Registration effective for the
period of time required by this Agreement, and comply with provisions of the
applicable securities laws with respect to the sale or other disposition of all
securities covered by such Registration Statement during such period in
accordance with the intended method or methods of disposition by the sellers
thereof set forth in such Registration Statement;

 

(ii)           notify
the Participating Holders and the managing underwriter or underwriters, if any,
and (if requested) confirm such advice in writing and provide copies of the
relevant documents, as promptly as practicable after notice thereof is received
by the Company (1) when the applicable Registration Statement or any
amendment thereto has been filed or becomes effective, and when the applicable
Prospectus or Issuer Free Writing Prospectus or any amendment or supplement
thereto has been filed, (2) to the extent any of the following relates to
the Participating Holders or information supplied by the Participating Holders,
of any written comments by the Commission or any request by the Commission or
any other federal or state governmental authority for amendments or supplements
to such Registration Statement, Prospectus or Issuer Free Writing Prospectus or
for additional information, (3) of the issuance by the Commission of any
stop order suspending the effectiveness of such Registration Statement or any
order by the Commission or any other regulatory authority preventing or
suspending the use of any Prospectus or any Issuer Free Writing Prospectus or
the initiation or threatening of any proceedings for such purposes,
(4) if, at any time, the representations and warranties of the Company in
any applicable underwriting agreement cease to be true and correct in all
material respects, and (5) of the receipt by the Company or its legal
counsel of any notification with respect to the suspension of the qualification
of the Registrable Securities for offering or sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose;

 

(iii)          promptly
notify the Participating Holders and the managing underwriter or underwriters,
if any, when the Company becomes aware of the happening of any event as a
result of which the applicable Registration Statement, the Prospectus included
in such Registration Statement (as then in effect) or any Issuer Free Writing
Prospectus contains any untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary in order to make the
statements therein (in the case of such Prospectus or any Issuer Free Writing
Prospectus, in light of the circumstances under which they were made) not
misleading, and when any Issuer Free Writing Prospectus includes information
that may conflict with the information contained in the Registration Statement,
or, if for any other reason it shall be necessary during such time period to
amend or supplement such Registration Statement, Prospectus or Issuer Free
Writing Prospectus in order to comply with the Securities Act and, in either
case as promptly as reasonably practicable thereafter, prepare and file with
the Commission, and furnish without charge to the Participating Holders and the
managing underwriter or underwriters, if any, an amendment or supplement to
such Registration Statement, Prospectus or Issuer Free Writing Prospectus which
shall correct such misstatement or omission or effect such compliance;

 

(iv)          use
its reasonable best efforts to prevent, or obtain the withdrawal of, any stop
order or other order suspending the use of any Prospectus or any Issuer Free
Writing Prospectus;

 

(v)           deliver
to each Participating Holder and each underwriter, if any, without charge, as
many copies of the applicable Prospectus (including each preliminary
Prospectus), any 

 

12

 

Issuer
Free Writing Prospectus and any amendment or supplement thereto as such
Participating Holder or underwriter may reasonably request (it being understood
that the Company consents to the use of such Prospectus, any Issuer Free
Writing Prospectus and any amendment or supplement thereto by such Holder and
the underwriters, if any, in connection with the offering and sale of the
Registrable Securities thereby) and such other documents as such Participating
Holder or underwriter may reasonably request in order to facilitate the
disposition of the Registrable Securities by such Participating Holder or
underwriter;

 

(vi)          subject
to the terms set forth in Section 2(a)(ii)(1) and Section 2(c) hereof,
on or prior to the date on which the applicable Registration Statement is
declared effective, use its reasonable best efforts to register or qualify the
Registrable Securities covered by such Registration Statement under such other
securities or “blue sky” laws of such jurisdictions in the United States as any
Participating Holder reasonably (in light of such Participating Holder’s
intended plan of distribution) requests and do any and all other acts and
things that may be reasonably necessary or advisable to enable such Participating
Holder to consummate the disposition of the Registrable Securities owned by
such Participating Holder pursuant to such Registration Statement;

 

(vii)         make
such representations and warranties to the Participating Holders and the
underwriters or agents, if any, in form, substance and scope as are customarily
made by issuers in underwritten public offerings;

 

(viii)        enter
into such customary agreements (including underwriting and indemnification
agreements) and take such other actions as the Initiating Holder(s) or the
managing underwriter, if any, reasonably requests in order to expedite or
facilitate the Registration and disposition of such Registrable Securities;

 

(ix)          use
its reasonable best efforts to obtain for delivery to the managing underwriter,
if any, an opinion or opinions from counsel for the Company dated the effective
date of the Registration Statement or, in the event of an underwritten
offering, the date of the closing under the underwriting agreement, in form and
substance as is customarily given to underwriters in an underwritten secondary
public offering;

 

(x)           in
the case of an underwritten offering, use reasonable best efforts to obtain for
delivery to the Company and the managing underwriter, if any, a “ comfort”
letter from the Company’s independent certified public accountants in form and
substance as is customarily given by independent certified public accountants
in an underwritten secondary public offering;

 

(xi)          cooperate
with each Participating Holder and the underwriters, if any, of such
Registrable Securities and their respective counsel in connection with any
filings required to be made with FINRA;

 

(xii)         use
its reasonable best efforts to cause all Registrable Securities covered by the
applicable Registration Statement to be listed or quoted on a national
securities exchange or trading system and each securities exchange and trading
system (if any) on which similar securities issued by the Company are then
listed;

 

13

 

(xiii)        cooperate
with the Participating Holders and the underwriters, if any, to facilitate the
timely preparation and delivery of certificates, with requisite CUSIP numbers,
representing Registrable Securities to be sold and not bearing any restrictive
legends;

 

(xiv)        in
the case of an underwritten offering, make reasonably available the senior
executive officers of the Company to participate in the customary “road show”
presentations that may be reasonably requested by the managing underwriter in
any such underwritten offering and otherwise to facilitate, cooperate with, and
participate in each proposed offering contemplated herein and customary selling
efforts related thereto;

 

(xv)         use
its reasonable best efforts to procure the cooperation of the Company’s transfer
agent in settling any offering or sale of Registrable Securities, including
with respect to the transfer of physical security instruments into book-entry
form in accordance with any procedures reasonably requested by the Holders or
any managing underwriter(s);

 

(xvi)        use
its reasonable best efforts to take such actions as are under its control to
become or remain a well-known seasoned issuer (as such term in defined in Rule 405
under the Securities Act) and not become an illegible issuer (as such term is
defined in Rule 405 under the Securities Act) during the period when such
Registration Statement remains in effect; and

 

(xvii)       make
available for inspection by a representative of Participating Holders that are
selling at least five percent (5%) of the Registrable Securities included in
such Registration (and who is named in the applicable prospectus supplement as
a Person who may be deemed to be an underwriter with respect to an offering and
sale of Registrable Securities), the managing underwriter(s), if any, and any
attorneys or accountants retained by such Holders or the managing
underwriters(s), at the offices where normally kept, during reasonable business
hours, financial and other records and pertinent corporate documents of the
Company, and cause the officers, directors and employees of the Company to
supply all information in each case reasonably requested by any such
representative, managing underwriter, attorney or accountant in connection with
such Registration Statement; provided, that if any such information is
identified by the Company as being confidential or proprietary, each Person
receiving such information shall take such actions as are reasonably necessary
to protect the confidentiality of such information and shall sign customary confidentiality
agreements reasonably requested by the Company prior to the receipt of such
information.

 

(f)            Indemnification.

 

(i)            Indemnification
by the Company.  With respect to each
Registration which has been effected pursuant to this Section 2, the Company
agrees to indemnify and hold harmless, to the fullest extent permitted by law, (1) each
of the Participating Holders and each of its officers, directors, limited or
general partners and members thereof, (2) each member, limited or general
partner of each such member, limited or general partner, (3) each of their
respective Affiliates, officers, directors, shareholders, employees, advisors,
and agents and each Person who controls (within the meaning of the Securities
Act or the Exchange Act) such Persons and each underwriter, if any, and each
person who controls (within the meaning of the Securities Act or the Exchange
Act) any underwriter, against any and all claims, losses, damages, penalties,
judgments, suits, costs, liabilities and expenses (or actions in respect
thereof) (collectively, the 

 

14

 

“Losses”) arising out of or based on (A) any
untrue statement (or alleged untrue statement) of a material fact contained in
any Registration Statement (including any Prospectus or Issuer Free Writing
Prospectus) or any other document incident to any such Registration,
qualification or compliance, (B) 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 (in the case of any Prospectus or Issuer
Free Writing Prospectus, in light of the circumstances under which they were
made not misleading), or (C) any violation by the Company of the
Securities Act or the Exchange Act applicable to the Company and relating to
action or inaction required of the Company in connection with any such
Registration, qualification or compliance, and will reimburse each of the
Persons listed above, for any reasonable and documented legal and any other
expenses reasonably incurred in connection with investigating and defending any
such Losses, provided, that the Company will not be liable in any such
case to the extent that any such Losses arise out of or are based on any untrue
statement or omission based upon written information furnished to the Company
by the Participating Holders or underwriter and stated to be specifically for
use therein.

 

(ii)           Indemnification
by the Participating Holders.  Each
of the Participating Holders agrees (severally and not jointly) to indemnify
and hold harmless, to the fullest extent permitted by law, the Company, each of
its directors and officers and each underwriter, if any, of the Company’s
securities covered by such a Registration Statement, each Person who controls
the Company (within the meaning of the Securities Act or the Exchange Act) or
such underwriter, each other Participating Holder and each of their respective
officers, directors, partners and members, and each Person controlling such
Participating Holder (within the meaning of the Securities Act or the Exchange
Act) against any and all Losses arising out of or based on (A) any untrue
statement (or alleged untrue statement) of a material fact contained in any
Registration Statement (including any Prospectus or Issuer Free Writing
Prospectus) or any other document incident to any such Registration,
qualification or compliance (including any notification or the like) made by
such Participating Holder in writing or (B) any omission (or alleged
omission) to state therein a material fact required to be stated therein or
necessary to make the statements by such Participating Holder therein not
misleading (in the case of any Prospectus or Issuer Free Writing Prospectus, in
light of the circumstances under which they were made not misleading) and will
reimburse the Persons listed above for any reasonable and documented legal or
any other expenses reasonably incurred in connection with investigating or
defending any such Losses, in each case to the extent, but only to the extent,
that such untrue statement (or alleged untrue statement) or omission (or
alleged omission) is made in reliance upon and in conformity with written
information furnished to the Company by such Participating Holder and stated to
be specifically for use therein; provided, however, that the
obligations of each of the Participating Holders hereunder shall be limited to
an amount equal to the net proceeds (after giving effect to any underwriters
discounts and commissions) such Participating Holder receives in such
Registration.

 

(iii)          Conduct
of the Indemnification Proceedings. 
Each party entitled to indemnification under this Section 2(f) (the
“Indemnified Party”) shall give notice to the party required to provide
indemnification (the “Indemnifying Party”) promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may
be sought, and shall permit the Indemnifying Party to assume the defense of any
such claim or any litigation resulting 

 

15

 

therefrom; provided, that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or any
litigation resulting therefrom, shall be approved by the Indemnified Party
(whose approval shall not unreasonably be withheld) and the Indemnified Party
may participate in such defense at such party’s expense (unless the Indemnified
Party shall have reasonably concluded that there may be a conflict of interest
between the Indemnifying Party and the Indemnified Party in such action, in
which case the fees and expenses of counsel shall be at the expense of the
Indemnifying Party), and provided, further, that the failure of
any Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations under this Section 2(f) unless
the Indemnifying Party is prejudiced thereby. 
It is understood and agreed that the Indemnifying Party shall not, in
connection with any proceeding or related proceeding in the same jurisdiction,
be liable for the fees and expenses of more than one separate legal counsel for
all Indemnified Parties; provided, however, that where the
failure to be provided separate legal counsel could potentially result in a
conflict of interest on the part of such legal counsel for all Indemnified
Parties, separate counsel shall be appointed for Indemnified Parties to the
extent needed to alleviate such potential conflict of interest.  No Indemnifying Party, in the defense of any
such claim or litigation shall, except with the prior written consent of each
Indemnified Party, consent to entry of any judgment or enter into any
settlement which does not include as an unconditional term thereof the giving
by the claimant or plaintiff to such Indemnified Party of a release from all liability
in respect to such claim or litigation. 
Each Indemnified Party shall furnish such information regarding itself
or the claim in question as an Indemnifying Party may reasonably request in
writing and as shall be reasonably required in connection with the defense of
such claim and litigation resulting therefrom.

 

(iv)          If
the indemnification provided for in this Section 2(f) is held by a
court of competent jurisdiction to be unavailable to an Indemnified Party with
respect to any Losses, then the Indemnifying Party, in lieu of indemnifying
such Indemnified Party hereunder, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such Losses in such proportion
as is appropriate to reflect the relative fault of the Indemnifying Party on
the one hand and of the Indemnified Party on the other in connection with the
statements or omissions (or alleged statements or omissions) which resulted in
such Losses, as well as any other relevant equitable considerations.  The relative fault of the Indemnifying Party
and of the Indemnified Party shall be determined by reference to, among other
things, whether the untrue (or alleged untrue) statement of a material fact or
the omission (or alleged omission) to state a material fact relates to
information supplied by the Indemnifying Party or by the Indemnified Party and
the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission; provided, however,
that the obligations of each of the Participating Holders hereunder shall be
several and not joint and shall be limited to an amount equal to the net
proceeds (after giving effect to any underwriters discounts and commissions)
such Participating Holder receives in such Registration and, provided, further,
that no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person who was
not guilty of such fraudulent misrepresentation.  For purposes of this Section 2(f)(iv),
each Person, if any, who controls an underwriter or agent within the meaning of
Section 15 of the Securities Act shall have the same rights to
contribution as such underwriter or agent and each director of the Company,
each officer of the Company who signed a Registration Statement, and each
Person, if any, who controls the Company or a selling Holder within the meaning
of Section 15 of the Securities Act 

 

16

 

shall have the same rights to contribution as the
Company or such selling Holder, as the case may be.

 

(v)           Subject
to the limitations on the Holders’ liability set forth in Section 2(f)(ii) and
Section 2(f)(iv), the remedies provided for in this Section 2(f) are
not exclusive and shall not limit any rights or remedies which may otherwise be
available to any Indemnified Party at law or equity.  The remedies shall remain in full force and
effect regardless of any investigation made by or on behalf of such Holder or
any Indemnified Party and survive the transfer of such securities by such
Holder.

 

(vi)          The obligations of
the Company and of the Participating Holders hereunder to indemnify any
underwriter or agent who participates in an offering (or any Person, if any
controlling such underwriter or agent within the meaning of Section 15 of
the Securities Act) shall be conditioned upon the underwriting or agency
agreement with such underwriter or agent containing an agreement by such
underwriter or agent to indemnify and hold harmless the Company, each of its
directors and officers, each other Participating Holder, and each Person who
controls the Company (within the meaning of the Securities Act or the Exchange
Act) or such Participating Holder against all Losses, but only with respect to
untrue statements or omissions, or alleged untrue statements or omissions, made
in the Registration Statement (or any amendment thereto), or any preliminary
prospectus or the Prospectus (or any amendment or supplement thereto) in
reliance upon and in conformity with written information furnished to the
Company by such underwriter or agent expressly for use in such filings
described in this sentence.

 

(g)           Participating
Holders.

 

(i)            Each of the Participating Holders shall furnish to the
Company such information regarding such Participating Holder and its partners
and members, and the distribution proposed by such Holder as the Company may
reasonably request in writing and as shall be reasonably requested in
connection with any Registration, qualification or compliance referred to in
this Section 2.

 

(ii)           In the event that, either immediately prior to or
subsequent to the effectiveness of any Registration Statement, any
Participating Holder shall distribute Registrable Securities to its partners or
members, such Participating Holder shall so advise the Company and provide such
information as shall be necessary to permit an amendment to such Registration
Statement to provide information with respect to such partners or members, as
selling security holders.  As soon as is
reasonably practicable following receipt of such information, the Company shall
file an appropriate amendment to such Registration Statement reflecting the
information so provided.  Any incremental
expense to the Company resulting from such amendment shall be borne by such
Participating Holder.

 

(iii)          Each Holder agrees that at the time that such Holder is a
Participating Holder, upon receipt of any notice from the Company of the
happening of any event of the kind described in Section 2(e)(iii), such
Holder shall forthwith discontinue disposition of Registrable Securities
pursuant to the Registration Statement covering such Registrable Securities
until such 

 

17

 

Holder’s receipt of the copies of a supplemented or
amended Prospectus or Issuer Free Writing Prospectus or until such Holder is
advised in writing by the Company that the use of the Prospectus or Issuer Free
Writing Prospectus, as the case may be, may be resumed, and, if so directed by
the Company, such Holder shall deliver to the Company all copies, other than
any permanent file copies then in such Holder’s possession, of the most recent
Prospectus or any Issuer Free Writing Prospectus covering such Registrable
Securities at the time of receipt of such notice.  If the Company shall give such notice, the
Company shall extend the period during which such Registration Statement shall
be maintained effective by the number of days during the period from and
including the date of the giving of notice pursuant to Section 2(e)(iii) to
the date when the Company shall make available to such Holder a copy of the
supplement or amended Prospectus or Issuer Free Writing Prospectus or is
advised in writing that the use of the Prospectus or Issuer Free Writing
Prospectus may be resumed.

 

(h)           Rule 144.  With a view to making available the benefits
of certain rules and regulations of the Commission which may permit the
sale of restricted securities to the public without Registration, the Company
agrees to use its reasonable best efforts to file with the Commission in a
timely manner all reports and other documents required of the Company under the
Securities Act and the Exchange Act at any time after it has become subject to
such reporting requirements (or, if the Company is not required to file such
reports, it will, upon the reasonable request of the Holders holding a majority
of the then outstanding Registrable Securities, make publicly available such
necessary information for so long as necessary to permit sales pursuant to Rules 144
under the Securities Act).

 

(i)            Termination.  The registration rights set forth in this Section 2
shall terminate and cease to be available as to any securities held by an Investor at such time as such Investor
(after owning) first ceases to own any Registrable
Securities.

 

(j)            Lock-Up
Agreements.

 

(i)            The
Company agrees that, if requested by the managing underwriter in any
underwritten public offering contemplated by this Agreement, it will enter into
a customary “lock-up” agreement providing that it will not, directly or
indirectly, sell, offer to sell, grant any option for the sale of, or otherwise
dispose of any Common Stock or securities convertible into or exchangeable or
exercisable for Common Stock (subject to customary exceptions), other than any
such sale or distribution of Common Stock upon exercise of the Company’s
Warrants, for a period of 60 days from the effective date of the Registration
Statement pertaining to such Common Stock; provided, however,
that any such lock-up agreement shall not prohibit the Company from directly or
indirectly (i) selling, offering to sell, granting any option for the sale
of, or otherwise disposing of any Qualifying Employee Stock (or otherwise
maintaining its employee benefits plans in the ordinary course of business) or (ii) issuing
Common Stock or securities convertible into or exchangeable for Common Stock
upon exercise or conversion of any warrant (including any other Warrant),
option, right or convertible or exchangeable security issued in connection with
the plan of reorganization.  Each Holder
shall coordinate with other Holders and the Brookfield Holders and the
Fairholme Holders such that the total number of days that the Company will be subject
to such restrictions (including similar restrictions pursuant

 

18

 

to any registration rights agreements with the
Brookfield Holders and the Fairholme Holders) as may be in effect in any
365-day period shall not exceed 120 days.

 

(ii)           In
the event that any Holder is an Affiliate of the Company, if requested by the
managing underwriter in any underwritten public offering permitted by this
Agreement, such Holder will enter into a customary “lock-up” agreement
providing that it will not sell, grant any option for the sale of, or otherwise
dispose of any Common Stock outside of such public offering (subject to
customary exceptions) for a period of 60 days from the effective date of the
Registration Statement pertaining to such Common Stock.

 

(k)           Notwithstanding
any provision of this Agreement to the contrary, in order for a Registration to
be included as a Registration for purposes of this SECTION 2.  , the Registration Statement in connection
therewith shall have been continually effective in compliance with the
Securities Act and usable for resale for the full period established with
respect to such Registration (except in the case of any suspension of sales
pursuant to (A) a Scheduled Black-Out Period, or (B) Section 2(e)(iii) hereof,
in which case such period shall be extended to the extent of such suspension).

 

(l)            Notwithstanding
any provision of this Agreement to the contrary, if the Company is required to
file a post-effective amendment to a Registration Statement to incorporate the
Company’s quarterly and annual reports and related financial statements on Form
10-Q and Form 10-K, the Company shall use its reasonable best efforts to
promptly file such post-effective amendment and may postpone or suspend
effectiveness of such Registration Statement for a period not to exceed thirty
(30) consecutive days to the extent the Company determines necessary to comply
with applicable securities laws; provided, that the period by which the
Company postpones or suspends the effectiveness of a shelf Registration
Statement pursuant to this Section 2(l) plus any suspension, deferral or delay
pursuant to Section 2(e)(iii) shall not exceed 60 days in the aggregate in any
twelve-month period.

 

SECTION 3.  MISCELLANEOUS

 

(a)           Governing
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of New York
applicable to contracts made and to be performed entirely within such State
without regard to conflicts of law principles.

 

(b)           Section
Headings.  The headings of the
sections and subsections of this Agreement are inserted for convenience only
and shall not be deemed to constitute a part thereof.

 

(c)           Notices.

 

(i)            All communications under this Agreement shall be in
writing and shall be delivered by hand or facsimile or mailed by overnight
courier:

 

(1)           if to the Company, to:

 

The Howard Hughes Corporation

13355 Noel Road, Suite 950

 

19

 

Dallas, TX 75240

Attention:  General Counsel

Facsimile:                 (214) 741-3021

 

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

 

Weil, Gotshal & Manges LLP

767 Fifth Avenue

New York, NY 10153

Attention:                                         Malcolm E. Landau, Esq.

Matthew D. Bloch, Esq.

Facsimile: (212) 310-8007

 

(2)           if to the Holders, at the address or facsimile number
listed on Schedule I hereto, or at such other address or facsimile number as
may have been furnished to the Company in writing.

 

(ii)           Any notice so addressed shall be deemed to be given: if
delivered by hand or facsimile, on the date of such delivery; and if mailed by
overnight courier, on the first business day following the date of such
mailing.

 

(d)           Reproduction
of Documents.  This Agreement and all
documents relating thereto, including, without limitation, any consents,
waivers and modifications which may hereafter be executed may be reproduced by
the Holders by any photographic, photostatic, microfilm, microcard, miniature
photographic or other similar process and the Holders may destroy any original
document so reproduced.  The parties
hereto agree and stipulate that any such reproduction shall be admissible in
evidence as the original itself in any judicial or administrative proceeding
(whether or not the original is in existence and whether or not such
reproduction was made by the Holders in the regular course of business) and
that any enlargement, facsimile or further reproduction of such reproduction
shall likewise be admissible in evidence.

 

(e)           Successors
and Assigns.  Neither this Agreement
nor any right or obligation hereunder may be assigned in whole or in part by
any party without the prior written consent of the other parties hereto and any
purported assignment in violation of this provision shall be void; provided,
however, that the rights and obligations hereunder of any Investor may
be assigned, in whole or in part, to any Person who acquires such Registrable
Securities that (i) is a member of the Purchaser Group, (ii) is an Affiliate of
any Initial Investor or (iii) is unable to immediately sell, without
limitations (including, but not limited to, any limitation on volume or manner
of sale) or restrictions under Rule 144, all Registrable Securities and other
shares of Common Stock held by such Person (provided, that for this
clause (iii), any such rights and obligations may be assigned solely with
respect to such Registrable Securities) (each such Person described in clauses
(i), (ii) or (iii), a “Permitted Assignee”).  Any assignment pursuant to this Section 3(e)
shall be effective and any Person shall become a Permitted Assignee only upon
receipt by the Company of (1) a written notice from the transferring Holder
stating the name and address of the transferee and identifying the number of
shares of Registrable Securities with 

 

20

 

respect to which the rights under this Agreement are
being transferred and, if fewer than all of the rights attributable to a Holder
hereunder are to be so transferred, the nature of the rights so transferred and
(2) a written instrument by which the transferee agrees to be bound by all of
the terms and conditions applicable to a Holder of such Registrable Securities.  Subject to the foregoing, this Agreement
shall inure to the benefit of and be binding upon the successors and permitted
assigns of each of the parties.

 

(f)            Several
Nature of Commitments.  The
obligations of each Holder hereunder are several and not joint and several, and
relate only to the Registrable Securities held by such Holder from time to
time.  No Holder shall bear
responsibility to the Company for breach of this Agreement or any information
provided by any other Holder.

 

(g)           Additional
Investors.  The parties hereto
acknowledge that certain Persons may become stockholders of the Company and the
Company may wish to grant such Persons registration rights with respect to the
shares of Common Stock issued to such Persons. 
The Company may do so in its discretion so long as such registration
rights are not inconsistent with the registration rights granted to the Holders
hereunder and, if any registrations rights granted are more favorable than
those provided to Holders of Common Stock hereunder, conforming changes
reasonably acceptable to the Purchasers are made to this Agreement to provide
Holders hereunder with substantially similar rights.  For the avoidance of doubt, notwithstanding
anything to the contrary set forth herein, Blackstone and its Permitted
Assignees shall not be entitled to demand registration rights (pursuant to
Section 2(a) hereof).

 

(h)           Entire
Agreement; Amendment and Waiver. 
This Agreement constitutes the entire understanding of the parties
hereto relating to the subject matter hereof and supersedes all prior
understandings among such parties.  This
Agreement may be amended with (and only with) the written consent of the
Company and the Holders holding a majority of the then outstanding Registrable
Securities and any such amendment shall apply to all Holders and all of their
Registrable Securities; provided, however, that, notwithstanding
the foregoing, no amendment to this Agreement may adversely affect the rights
of a Holder hereunder without the prior written consent of such Holder; provided,
further, that, notwithstanding the foregoing, additional Holders may
become party hereto upon an assignment of rights and obligations hereunder
pursuant to Section 3(e); provided  further, however, that
other than as set forth in Section 3(e), the Company may not add additional
parties hereto without the consent of Holders holding a majority of the then
outstanding Registrable Securities.  The
observance of any term of this Agreement may be waived by the party or parties
waiving any rights hereunder; provided, that any such waiver shall apply
to all Holders and all of their Registrable Securities only if made by Holders
holding a majority of then-outstanding Registrable Securities.

 

(i)            Injunctive
Relief.  It is hereby agreed and
acknowledged that it will be impossible to measure in money the damage that
would be suffered if the parties fail to comply with any of the obligations
herein imposed on them and that in the event of any such failure, an aggrieved
Person will be irreparably damaged and will not have an adequate remedy at
law.  Any such Person shall, therefore,
be entitled (in addition to any other remedy to which it may be entitled in law
or in equity) to injunctive relief, including specific performance, to enforce
such obligations, and if any action should be brought in equity to enforce any
of the provisions of this 

 

21

 

Agreement, none of the parties hereto shall raise
the defense that there is an adequate remedy at law.

 

(j)            WAIVER
OF JURY TRIAL.  EACH PARTY
ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS
AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE,
EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO
A TRIAL BY JURY IN RESPECT OF ANY ACTIONS, SUITS, DEMAND LETTERS, JUDICIAL,
ADMINISTRATIVE OR REGULATORY PROCEEDINGS, OR HEARINGS, NOTICES OF VIOLATION OR
INVESTIGATIONS ARISING OUT OF OR RELATING TO THIS AGREEMENT.  EACH PARTY TO THIS AGREEMENT CERTIFIES AND
ACKNOWLEDGES THAT (A) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER
AND (B) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY.

 

(k)           No
Inconsistent Agreements.  The Company
is not currently a party to any agreement which is, or could be inconsistent
with, the rights granted to the Holders by this Agreement.

 

(l)            Severability.  In the event that any part or parts of this
Agreement shall be held illegal or unenforceable by any court or administrative
body of competent jurisdiction, such determination shall not affect the
remaining provisions of this Agreement which shall remain in full force and
effect.

 

(m)          Counterparts.  This Agreement may be executed in two or more
counterparts (including by email or facsimile signature), each of which shall
be deemed an original and all of which together shall be considered one and the
same agreement.

 

(n)           Interpretation
of this Agreement.  Where any
provision in this Agreement refers to action to be taken by any Person, or
which such Person is prohibited from taking, such provision shall be applicable
whether such action is taken directly or indirectly by such Person.

 

[Remainder of Page Intentionally Left Blank]

 

22

 

IN WITNESS WHEREOF, the undersigned have executed this Registration
Rights Agreement as of the date first set forth above.

 

	
   

  	
   

  	
  THE HOWARD HUGHES CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 

PERSHING SQUARE CAPITAL MANAGEMENT, L.P.

On behalf of each of the Purchasers

By: PS Management GP, LLC

Its: General Partner

 

 

	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

 

BLACKSTONE REAL ESTATE PARTNERS VI L.P.

By:  Blackstone Real Estate
Associates VI L.P., its general partner

By:  BREA VI Sub L.L.C., its
general partner

By:  BREA VI L.L.C., its sole
member

 

	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

[Additional
Blackstone entities to come.]

 

 

Schedule I

 

Pershing
Square, L.P., a Delaware limited partnership

Pershing
Square II, L.P., a Delaware limited partnership

Pershing
Square International, Ltd. a Cayman Islands exempted company

Pershing
Square International V, Ltd., a Cayman Islands exempted company

 

Notice
to any Purchaser set forth above (which shall constitute notice to each
Purchaser set forth above) shall be made to:

 

Pershing
Square Capital Management, L.P.

888
Seventh Avenue, 42nd Floor

New
York, NY 10019

	
  Attention:

  	
  William
  A. Ackman

  
	
   

  	
  Roy
  J. Katzovicz

  
	
  Facsimile:

  	
  (212)
  286-1133

  

 

 

Schedule II

 

[Blackstone entities to come.]

 

Notice
to any Blackstone entity set forth above (which shall constitute notice to each
Blackstone entity set forth above) shall be made to:

 

Blackstone
Real Estate Partners VI L.P.

345
Park Avenue

New
York, New York 10154

Attention:         
A.J. Agarwal

Facsimile:        
(212) 583-5725

 

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

 

Simpson
Thacher & Bartlett LLP

425
Lexington Avenue

New
York, New York 10017

Attention:
         Brian M. Stadler, Esq.

Facsimile:
        (212) 455-2502Exhibit
4.4

 

 

REGISTRATION RIGHTS
AGREEMENT

 

among

 

THE HOWARD HUGHES CORPORATION

 

and

 

EACH OF THE HOLDERS

 

 

PARTY HERETO

 

 

Dated as of                     ,
2010

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Shelf Registration Statement

  	
  4

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Demand Registration

  	
  5

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Piggyback Registration

  	
  8

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Registration Procedures

  	
  9

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Registration Expenses

  	
  12

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Underwriting Requirements

  	
  13

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Indemnification

  	
  14

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Rule 144 Information

  	
  17

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Miscellaneous

  	
  17

  

 

i

 

REGISTRATION RIGHTS
AGREEMENT

 

This
REGISTRATION RIGHTS AGREEMENT, dated as of
[          ], 2010 (this “Agreement”),  is entered into
among THE HOWARD HUGHES CORPORATION, a Delaware corporation (the “Company”),  and the Holders.
Capitalized terms not otherwise defined herein have the meanings set forth in Section 1.

 

W I T N E S S E T H:

 

WHEREAS,
commencing on April 16, 2009, General Growth Properties, Inc. (“GGP”) and certain of its direct and
indirect subsidiaries (the “Plan Debtors”)
each filed a voluntary petition in the United States Bankruptcy Court for the
Southern District of New York (the “Bankruptcy Court”)  initiating cases
under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”);

 

WHEREAS,
the [Third] Amended and Restated Joint Plan of Reorganization of the Plan
Debtors, as confirmed on
[              ],
2010 by an order of the Bankruptcy Court entered on [            ],
2010 (the “Plan”),  provides, among
other things, that on or prior to the Effective Date, approximately 32.5
million shares of Common Stock of the Company will be distributed to the common
and preferred unit holders of GGP Limited Partnership (“GGPLP”),
which includes GGP, and then GGP will distribute its portion of such shares to
holders of GGP common stock (the “Distribution”);

 

WHEREAS,
the shares of Common Stock to be distributed pursuant to the Plan (the “Shares”), are being issued in
reliance upon Section 1145 of the Bankruptcy Code (“Section 1145”) without
registration under the Securities Act or any state securities laws;

 

WHEREAS,
notwithstanding the provisions of Section 1145, resales of the Shares may
be required to be registered under the Securities Act and applicable state
securities laws, depending upon the status of a Holder or the intended method
of distribution of the Shares; and

 

WHEREAS,
the Company is granting to the Holders certain rights to cause the Company to
register the Shares and certain other Registrable Securities, on the terms and
subject to the conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the premises set forth herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound hereby, agree
as follows:

 

1.             Definitions.  As used in this Agreement, the following
terms have the following meanings:

 

“Affiliate” means, with
respect to any specified Person, any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with 

 

 

such
specified Person. For the purposes of this definition, “control” when used with
respect to any specified Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

 

“Agreement” has the meaning
set forth in the introduction.

 

“Bankruptcy Code” has the meaning
set forth in the preamble.

 

“Bankruptcy Court” has the meaning
set forth in the preamble.

 

“Business Day” means any day
(other than a day which is a Saturday, Sunday or legal holiday in the States of
New York) on which banks are open for business in the States of New York.

 

“Capital Stock” means, with
respect to any Person, any and all shares, interests, participations or other
equivalents (however designated) of corporate stock issued by such person,
including each class of common stock and preferred stock of such person.

 

“Company” has the meaning
set forth in the preamble.

 

“Common Stock” means the
Company’s common stock, no par value per share.

 

“Company” has the meaning
set forth in the introduction.

 

“Delay Period” has the meaning
set forth in Section 3(d).

 

“Demand Notice” has the meaning
set forth in Section 3(a)(i).

 

“Demand Registration” has the meaning
set forth in Section 3(b).

 

“Effectiveness Period” has the meaning
set forth in Section 3(c).

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended, and the rules and regulations
of the SEC promulgated thereunder.

 

“Free Writing Prospectus”
shall have the meaning set forth in Rule 405 under the Securities
Act.

 

“Holder” means each
person identified as a Holder on the signature pages hereto who is the
record or beneficial owner of Registrable Securities, together with their
respective successors and permitted assigns who become parties to this
Agreement.

 

“Indemnified Party”
shall have the meaning set forth in Section 8(c).

 

“Indemnifying Party”
shall have the meaning set forth in Section 8(c).

 

2

 

“Initial Outstanding Amount”
has the meaning set forth in Section 3(a).

 

“Inspectors” has the meaning
set forth in Section 5(i).

 

“Interruption Period”
has the meaning set forth in Section 5(k).

 

“Losses” has the meaning
set forth in Section 8(a).

 

“Marketing Materials”
has the meaning set forth in Section 8(a).

 

“Person” means any
individual, corporation, limited liability company, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.

 

“Piggyback Registration”
has the meaning set forth in Section 4(a).

 

“Plan” has the meaning
set forth in the preamble.

 

“Prospectus” means the
prospectus included in any Registration Statement (including a prospectus that
discloses information previously omitted from a prospectus filed as part of an
effective registration statement in reliance upon Rule 430A), as amended
or supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Securities covered by such
Registration Statement and all other amendments and supplements to such
prospectus, including post-effective amendments, and all material incorporated
by reference or deemed to be incorporated by reference in such prospectus,
including any Free Writing Prospectus.

 

“Records” has the
meaning set forth in Section 5(i).

 

“Registrable Securities”
means (i) the Shares and (ii) any additional shares of Common
Stock issued or distributed by way of a dividend, stock split or other
distribution in respect of the Shares, or conversion of securities into Shares,
in each case, if such shares of Common Stock would, in the hands of such
Holder, not be freely transferable in accordance with the intended method of
disposition (x) in accordance with Section 1145 or (y) under Rule 144
under the Securities Act, without regard to any information, volume, manner of
sale or holding period restriction under Rule 144 under the Securities
Act. As to any particular Registrable Securities, once issued, such securities
shall cease to be Registrable Securities when (i) a registration statement
with respect to the sale of such Registrable Securities shall have become
effective under the Securities Act and such securities shall have been disposed
of in accordance with such registration statement, (ii) they shall have
been distributed pursuant to Rule 144 under the Securities Act and are no
longer “restricted securities”, or (iii) they shall have ceased to be
outstanding.

 

“Registration” means
registration under the Securities Act of an offering of Registrable Securities
pursuant to a Demand Registration or a Piggyback Registration.

 

3

 

“Registration Date”
has the meaning set forth in the preamble.

 

“Registration Statement”
means any registration statement of the Company filed under the
Securities Act that covers resales of any of the Registrable Securities
pursuant to the provisions of this Agreement, including the related Prospectus,
all amendments and supplements to such registration statement, including pre-
and post-effective amendments, all exhibits thereto and all material
incorporated by reference or deemed to be incorporated by reference in such
registration statement. The term “Registration Statement” shall also include any
registration statement filed pursuant to Rule 462(b) to register
additional securities in connection with any offering.

 

“road show” means any “road
show” as defined in Rule 433 under the Securities Act, including an
electronic road show.

 

“SEC” means the
Securities and Exchange Commission or any other governmental agency at the time
administering the Securities Act.

 

“Section 1145”
has the meaning set forth in the preamble.

 

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder.

 

“Scheduled Black-Out Period” means the
period from and including the last day of a fiscal quarter of the Company to
and including the earliest of (i) the Business Day after the day on which
the Company publicly releases its earnings information for such quarter or
annual earnings information, as applicable, and (ii) the day on which the
executive officers and directors of the Company are no longer prohibited by
Company policies applicable with respect to such quarterly earnings period from
buying or selling equity securities of the Company.

 

“Shares” has the meaning
set forth in the preamble.

 

“Shelf Registration” has the meaning
set forth in Section 2(a).

 

“underwritten registration” or “underwritten offering” means
a registration under the Securities Act in which securities of the Company are
sold to an underwriter for reoffering to the public.

 

2.             Shelf
Registration Statement.

 

(a)           On or before the date of
this Agreement, to the extent permitted by applicable SEC rules, the Company
shall use its commercially reasonable efforts to cause a Registration Statement
relating to all Registrable Securities, which provides for the sale by the
holders thereof (as well as other holders of Common Stock and warrants to
acquire Common Stock held by other holders with registration rights) of the
Registrable Securities from time to time on a delayed or continuous basis
pursuant to Rule 415 under the Securities Act (a “Shelf Registration”), to be declared
effective by the SEC.

 

4

 

(b)           The Company
shall use commercially reasonable efforts to keep the Registration Statement
filed pursuant to this Section 2 continuously effective and usable
for the resale of the Registrable Securities covered thereby for a period of
two (2) years from the date on which the SEC declares such Registration
Statement effective, or until such earlier date as all of the Registrable
Securities covered by such Registration Statement have been sold pursuant to
such Registration Statement. If any Registrable Securities remain issued and
outstanding after two (2) years following the initial effective date of
such Shelf Registration, upon the request of Holder(s) of at least ten
percent (10%) of the Registrable Securities then outstanding, the Company
shall, prior to the expiration of such Shelf Registration, file a new Shelf
Registration and shall thereafter use its commercially reasonable efforts to
cause to be declared effective as promptly as practical, such new Shelf
Registration.

 

3.             Demand
Registration.

 

(a)           (i)            Provided that
the Company does not have the Registration Statement filed pursuant to Section 2
effective and usable to such Holder or group of Holders requesting a Demand
Registration under this Section, at any time after the date that the Company
becomes a registrant under the Exchange Act, any Holder or group of Holders
holding, in the aggregate, ten percent (10%) or more of the Registrable
Securities issued and outstanding immediately following the effective date of
the Plan (the “Initial
Outstanding Amount”), shall have the right, by written notice
given to the Company (a “Demand
Notice”), to request the Company to register under and in
accordance with the provisions of the Securities Act all or any portion of the
Registrable Securities designated by such Holder(s); provided, however,
that (x) the estimated fair market value of the Registrable Securities
requested to be registered is equal to at least $10 million (or the entire
amount of Registrable Securities then owned by the Holders if the estimated
fair market value of the remaining Registrable Securities is less than $10
million), and (y) prior to the time the Company is eligible to use Form S-3
for the registration of Registrable Securities for resale, such Holder(s), in
the aggregate, shall only be entitled to one Demand Registration per calendar
year pursuant to the provisions of this Section 3(a)(i) unless
any Demand Registration does not become effective or is not maintained in
effect for the respective periods set forth in Section 3(c), in
which case the relevant Holder(s) will be entitled to an additional Demand
Registration pursuant hereto. Following the time that the Company becomes
eligible for use of Form S-3 (or any successor form), any Holder or group
of Holders holding, in the aggregate, ten percent (10%) or more of the Initial
Outstanding Amount, shall have the right to request the Company to register
under and in accordance with the provisions of the Securities Act all or any
portion of the Registrable Securities designated by such Holder(s); provided,
however, that the estimated fair market value of the Registrable Securities
requested to be registered is at least $10 million (or the entire amount of
Registrable Securities then owned by the Holders if the estimated fair market
value of the remaining Registrable Securities is less than $10 million), provided,
however, that there shall be no more than five (5) Demand
Registrations pursuant to this Agreement.

 

5

 

(ii)           Upon receipt of
a Demand Notice, the Company shall promptly (and in any event within ten (10) Business
Days from the date of receipt of such Demand Notice), notify all other Holders
of the receipt of such Demand Notice and allow them the opportunity to include
Registrable Securities held by them in the proposed registration by submitting
their own Demand Notice. In connection with any Demand Registration in which
more than one Holder participates, in the event that such Demand Registration
involves an underwritten offering and the managing underwriter or underwriters
participating in such offering advise in writing the Holders of Registrable
Securities to be included in such offering that the total number of Registrable
Securities to be included in such offering exceeds the amount that can be sold
in (or during the time of) such offering without delaying or jeopardizing the
success of such offering (including the price per share of the Registrable
Securities to be sold), then the Registrable Securities to be offered shall be
distributed first, amongst the participating Holders pro rata according to each Holder’s overall percentage of
participating Registrable Securities and second, amongst holders of any
securities included by the Company (whether for its own account or otherwise)
that are not Registrable Securities in any such offering. In the event of such
a pro-rata distribution, to the extent that any Holder (or Holders) has not
submitted a Demand Notice, or withdraws from the underwriting, then those
Shares that would have been allocated pro-rata
to the non-participating Holder if they had participated shall be
distributed first amongst the participating Holders, pro rata according to each participating Holder’s overall
percentage of participating Registrable Securities and second, amongst holders
of any securities included by the Company (whether for its own account or
otherwise) that are not Registrable Securities in any such offering.

 

(b)           The Company,
within forty-five (45) days of the date on which the Company receives a Demand
Notice given by Holders in accordance with Section 3(a), shall file
with the SEC, and the Company shall thereafter use its commercially reasonable
efforts to cause to be declared effective as promptly as practicable, a
Registration Statement on the appropriate form for the registration and sale,
in accordance with the intended method or methods of distribution, of the total
number of Registrable Securities specified by the Holders in such Demand Notice
(a “Demand Registration”).
Any Demand Registration may, at the request of the Holders
submitting the Demand Notice, be a Shelf Registration to the extent permitted
by the rules and regulations of the SEC.

 

(c)           The Company shall use
commercially reasonable efforts to keep each Registration Statement filed
pursuant to this Section 3 continuously effective and usable for
the resale of the Registrable Securities covered thereby (i) in the case
of a Registration that is not a Shelf Registration, for a period of one hundred
twenty (120) days from the date on which the SEC declares such Registration
Statement effective and (ii) in the case of a Shelf Registration, for a
period of two (2) years from the date on which the SEC declares such
Registration Statement effective, in either case (x) until such earlier
date as all of the Registrable Securities covered by such Registration
Statement have been sold pursuant to such Registration Statement, and (y) as
such period may be extended pursuant to this Section 3. The time
period for which the Company is required to maintain the effectiveness of any
Registration Statement shall be extended by

 

6

 

the
aggregate number of days of all Delay Periods and all Interruption Periods
occurring with respect to such Registration and such period and any extension
thereof is hereinafter referred to as the “Effectiveness Period”.

 

(d)           The Company
shall be entitled to postpone the filing of any Registration Statement
otherwise required to be prepared and filed by the Company pursuant to this Section
3, or suspend the use of any effective Registration Statement under Section
2 or this Section 3, for a reasonable period of time (a “Delay Period”), (i)
if the Company has notified the Holders that in the good faith judgment of the
Company, it would be materially detrimental to the Company or its security
holders for such registration to be effected at such time, in which event the
Company shall have the right to defer such registration for a period of not
more than 60 days; provided, that such right to delay a registration
pursuant to this clause (d)(i) shall be exercised by the Company only if
the Company has generally exercised (or is concurrently exercising) similar
black-out rights against holders of similar securities that have registration
rights, if any or (ii) during any Scheduled Black-Out Period; provided,
that the total number of days that any such suspension, deferral or delay in
registration pursuant to clauses (d)(i) and d(ii) in the aggregate may
be in effect in any 180 day period shall not exceed 60 days.

 

(e)           Notwithstanding
any provision of this Agreement to the contrary, if the Company is required to
file a post-effective amendment to a Registration Statement to incorporate the
Company’s quarterly and annual reports and audited financial statements on Form
10-Q and Form 10-K, the Company may (A) postpone or suspend the filing of such
Registration Statement for a period not to exceed thirty (30) consecutive days
or (B) postpone or suspend effectiveness of such Registration Statement for a
period not to exceed twenty (20) consecutive days; provided that the
Company may not postpone or suspend effectiveness of a Registration Statement
pursuant to this clause (e) for more than sixty (60) days in the
aggregate in any twelve-month period.

 

(f)            Notwithstanding
anything to the contrary contained herein, the Company shall not be obligated
to effect, or take any action to effect, any such Registration pursuant to this
Section 3, in any particular jurisdiction in which the Company would be
required to execute a general consent to service of process or qualify to do
business in effecting such Registration, qualification or compliance, unless
the Company is already subject to service in such jurisdiction and except as
may be required by the Securities Act or applicable rules or regulations
thereunder.

 

(g)           Without prior
written notice, the Company shall not include any securities (whether for its
own account or otherwise) that are not Registrable Securities in any
Registration Statement filed pursuant to this Section 3. Any such
securities so included shall be subject to the cut-back provisions of Section
3(a)(ii).

 

(h)           Holders of a
majority in number of the Registrable Securities to be included in a
Registration Statement pursuant to this Section 3 may, at any time prior
to the effective date of the Registration Statement relating to such
Registration, revoke such request by providing a written notice to the Company
revoking such request. Any such 

 

7

 

Demand
Request so withdrawn shall not be counted for purposes of determining the
number of requests for registration to which the Holders of Registrable
Securities are entitled pursuant to this Section 3 if the Holders of
Registrable Securities who revoked such request reimburse the Company for all
its out-of-pocket expenses incurred in the preparation, filing and processing of
the Registration Statement; provided, however, that, if such revocation
was based on (i) the Company’s failure to comply in any material respect with
its obligations hereunder or (ii) the institution by the Company of a Delay
Period or the occurrence of any Interruption Period, such reimbursement shall
not be required.

 

4.             Piggyback
Registration.

 

(a)           Right to
Piggyback. If at any time the Company proposes to file a
registration statement for Common Stock under the Securities Act with respect
to a public offering by the Company for its own account or for the account of
any other Person who is a holder of securities of the same type as the
Registrable Securities (other than a registration statement (i) relating solely
to employee benefit plans, (ii) relating solely to a Rule 145 transaction under
the Securities Act or (iii) which does not permit secondary sales or does not
include substantially the same information as would be required to be included
in a Registration Statement), then the Company shall give written notice of
such proposed filing to the Holders at least fifteen (15) days before the
anticipated filing date. Such notice shall offer the Holders the opportunity to
register such amount of Registrable Securities as they may request (a “Piggyback Registration”).
Subject to Section 4(b), the Company shall include in each
such Piggyback Registration all Registrable Securities with respect to which
the Company has received written requests for inclusion therein within ten (10)
days after notice has been given to the Holders. Each Holder shall be permitted
to withdraw all or any portion of the Registrable Securities of such Holder
from a Piggyback Registration at any time prior to the effective date of such
Piggyback Registration.

 

(b)           Priority on
Piggyback Registrations. The Company shall permit the Holders to
include all such Registrable Securities on the same terms and conditions as any
similar securities, if any, of the Company or any other persons included
therein. Notwithstanding the foregoing, if the registration statement involves
an underwritten offering and the managing underwriter or underwriters advises
the Company that in its view marketing factors require a limitation on the
number of shares to be underwritten, then there shall be included in such
underwritten offering the number or dollar amount of securities of the Company
that in the opinion of the managing underwriter or underwriters can be sold
without adversely affecting such offering, and such number of securities of the
Company shall be allocated for inclusion as follows: (1) first all securities
of the Company being sold by the Company for its own account or by any Person
(other than a Holder) exercising a contractual right to demand registration;
(2) second all Registrable Securities requested to be included by the Holders
of securities of the Company and holder of securities of the Company being sold
by any Person (other than a Holder) exercising similar piggyback registration
rights, pro rata, based on the number of shares beneficially owned by each such
Holder and any such Person and (3) 

 

8

 

third,
among any other holders of securities of the Company requesting such
registration, pro rata, based on the number of securities beneficially owned by
each such holder.

 

(c)           Right To
Abandon. Nothing in this Section 4 shall create any
liability on the part of the Company to the Holders if the Company in its sole
discretion should decide not to file a registration statement proposed to be
filed pursuant to Section 4(a) or to withdraw such registration
statement subsequent to its filing, regardless of any action whatsoever that a
Holder may have taken, whether as a result of the issuance by the Company of
any notice hereunder or otherwise. Any such determination not to file or to
withdraw a registration statement shall not affect the obligations of the
Company to pay or to reimburse all Registration Expenses pursuant to Section
6.

 

5.             Registration
Procedures.   In connection with the
registration obligations of the Company pursuant to and in accordance with Sections
2, 3 and 4 (and subject to Sections 2, 3 and 4), the Company shall
use commercially reasonable efforts to effect such registration to permit the
sale of such Registrable Securities in accordance with the intended method or
methods of disposition thereof, and pursuant thereto the Company shall as
expeditiously as possible:

 

(a)           prepare and
file with the SEC a Registration Statement for the sale of the Registrable
Securities on any form for which the Company then qualifies or which counsel
for the Company shall deem appropriate in accordance with such Holders’
intended method or methods of distribution thereof, and, subject to the Company’s
right to terminate or abandon a registration pursuant to Section 4(c),
use commercially reasonable efforts to cause such Registration Statement to
become effective and remain effective as provided herein;

 

(b)           prepare and
file with the SEC such amendments (including post-effective amendments) to such
Registration Statement, and such supplements to the related Prospectus, as may
be required by the rules, regulations or instructions applicable under the
Securities Act during the applicable period in accordance with the intended
methods of disposition specified by the Holders of the Registrable Securities
covered by such Registration Statement, make generally available earnings
statements satisfying the provisions of Section 11(a) of the Securities Act (provided
that the Company shall be deemed to have complied with this Section if it has
complied with Rule 158 under the Securities Act), and cause the related
Prospectus as so supplemented to be filed pursuant to Rule 424 under the
Securities Act; provided, however, that before filing a Registration
Statement or Prospectus, or any amendments or supplements thereto (other than
reports required to be filed by it under the Exchange Act that are incorporated
or deemed to be incorporated by reference into the Registration Statement and
the Prospectus except to the extent that such reports related primarily to the
offering), the Company shall furnish to the Holders of Registrable Securities
covered by such Registration Statement and their counsel for review and
comment, copies of all documents required to be filed;

 

(c)           notify the
Holders of any Registrable Securities covered by such Registration Statement
promptly and (if requested) confirm such notice in writing, (i) 

 

9

 

when
a Prospectus or any Prospectus supplement or post-effective amendment has been
filed, and, with respect to such Registration Statement or any post-effective
amendment, when the same has become effective, (ii) of any request by the SEC
for amendments or supplements to such Registration Statement or the related
Prospectus or for additional information regarding the Company or the Holders,
(iii) of the issuance by the SEC of any stop order suspending the effectiveness
of such Registration Statement or the initiation of any proceedings for that
purpose, (iv) of the receipt by the Company of any notification with respect to
the suspension of the qualification or exemption from qualification of any of
the Registrable Securities for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose, and (v) of the happening of any
event that requires the making of any changes in such Registration Statement,
Prospectus or documents incorporated or deemed to be incorporated therein by
reference so that they will not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary
to make the statements therein not misleading;

 

(d)           use
commercially reasonable efforts to prevent the issuance of any order suspending
the effectiveness of such Registration Statement or the qualification or
exemption from qualification of any Registrable Securities for sale in any
jurisdiction in the United States, and to obtain the lifting or withdrawal of
any such order at the earliest practicable time;

 

(e)           furnish to the
Holder such number of copies of the preliminary prospectus, any amended
preliminary prospectus, any Free Writing Prospectus, each final Prospectus and
any post-effective amendment or supplement thereto, as such Holder may
reasonably request in order to facilitate the disposition of the Registrable
Securities of such Holder covered by such Registration Statement in conformity
with the requirements of the Securities Act;

 

(f)            prior to any
public offering of Registrable Securities covered by such Registration
Statement, use its commercially reasonable efforts to register or qualify such
Registrable Securities for offer and sale under the securities or “Blue Sky”
laws of such jurisdictions as the Holders of such Registrable Securities shall
reasonably request in writing; provided, however, that the Company shall
in no event be required to qualify generally to do business as a foreign
corporation or as a dealer in any jurisdiction where it is not at the time
required to be so qualified or to execute or file a general consent to service
of process in any such jurisdiction where it has not theretofore done so or to
take any action that would subject it to general service of process or taxation
in any such jurisdiction where it is not then subject;

 

(g)           upon the
occurrence of any event contemplated by Section 5(c)(v), prepare a
supplement or post-effective amendment to such Registration Statement or the
related Prospectus or any document incorporated or deemed to be incorporated
therein by reference and file any other required document so that, as
thereafter delivered to the purchasers of the Registrable Securities being sold
thereunder (including upon the termination of any Delay Period), such
Prospectus will not contain an untrue statement of 

 

10

 

a
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading;

 

(h)           use
commercially reasonable efforts to cause all Registrable Securities covered by
such Registration Statement to be listed on each securities exchange or
automated interdealer quotation system, if any, on which similar securities
issued by the Company are then listed or quoted, or, if none, on such
securities exchange or automated interdealer quotation system reasonably
selected by the Company;

 

(i)            if such
offering is an underwritten offering, make available for inspection by any
Holder of Registrable Securities included in such Registration Statement, any
underwriter participating in any offering pursuant to such Registration
Statement, and any attorney, accountant or other agent retained by any such
Holder or underwriter (collectively, the “Inspectors”), all financial and other records and
other information, pertinent corporate documents and properties of any of the
Company and its subsidiaries and affiliates (collectively, the “Records”), as
shall be reasonably necessary to enable them to exercise their due diligence
responsibilities; provided, however, that the Records that the Company
determines, in good faith, to be confidential and which it notifies the
Inspectors in writing are confidential shall not be disclosed to any Inspector
unless such Inspector signs a confidentiality agreement reasonably satisfactory
to the Company, which shall permit the
disclosure of such Records in such Registration Statement or the related
Prospectus if (i) necessary to avoid or correct a material misstatement in or
material omission from such Registration Statement or Prospectus or (ii) the
release of such Records is ordered pursuant to a subpoena or other order from a
court of competent jurisdiction; provided further, however, that (A) any
decision regarding the disclosure of information pursuant to subsection (i)
shall be made only after consultation with counsel for the applicable
Inspectors and the Company and (B) with respect to any release of Records
pursuant to subsection (ii), each Holder of Registrable Securities agrees that
it shall, promptly after learning that disclosure of such Records is sought in
a court having jurisdiction, give notice to the Company so that the Company, at
the Company’s expense, may undertake appropriate action to prevent disclosure
of such Records;

 

(j)            not later than
the effective date of a Registration Statement, the Company shall provide to
the Holders the CUSIP number for all Registrable Securities; and

 

(k)           if such
offering is an underwritten offering, enter into such agreements (including an
underwriting agreement in form, scope and substance as is customary in
underwritten offerings) and take all such other appropriate and reasonable
actions requested by the Holders of a majority of the Registrable Securities
being sold in connection therewith (including those reasonably requested by the
managing underwriters) in order to expedite or facilitate the disposition of
such Registrable Securities, and in such connection, (i) use commercially
reasonable efforts to obtain opinions of counsel to the Company and updates
thereof (which counsel and opinions (in form, scope and substance) shall be
reasonably satisfactory to the managing underwriters, addressed to each of the
underwriters as to the matters customarily covered in opinions 

 

11

 

requested
in underwritten offerings and such other matters as may be reasonably requested
by the underwriters, (ii) use commercially reasonable efforts to obtain “cold
comfort” letters and updates thereof from the independent certified public
accountants of the Company (and, if necessary, any other independent certified
public accountants of any subsidiary of the Company or of any business acquired
by the Company for which financial statements and financial data are, or are
required to be, included in the Registration Statement), addressed to each of
the underwriters, such letters to be in customary form and covering matters of
the type customarily covered in “cold comfort” letters in connection with
underwritten offerings, (iii) if requested and if an underwriting agreement is
entered into, provide indemnification provisions and procedures customary for
underwritten public offerings, but in any event no less favorable to the
indemnified parties than the provisions set forth in Section 8, and (iv)
provide for the reasonable participation and cooperation by the management of
the Company with respect thereto, including participation by management in road
shows, investor meetings and other customary cooperation. The above shall be
done at each closing under such underwriting or similar agreement, or as and to
the extent required thereunder.

 

The
Company may require each Holder of Registrable Securities covered by a
Registration Statement to furnish such information regarding such Holder and
such Holder’s intended method of disposition of such Registrable Securities as
it may from time to time reasonably request in writing. If any such information is not furnished within a reasonable period of time after receipt
of such request, the Company may exclude such Holder’s Registrable Securities
from such Registration Statement.

 

Each
Holder of Registrable Securities covered by a Registration Statement agrees
that, on receipt of any notice from the Company of the happening of any event
of the kind described in Section 5(c)(ii),  5(c)(iii),  5(c)(iv)
or 5(c)(v), that such Holder shall discontinue disposition of any
Registrable Securities covered by such Registration Statement or the related
Prospectus until receipt of the copies of the supplemented or amended
Prospectus contemplated by Section 5(g), or until such Holder is advised
in writing by the Company that the use of the applicable Prospectus may be
resumed, and has received copies of any amended or supplemented Prospectus or
any additional or supplemental filings which are incorporated, or deemed to be
incorporated, by reference in such Prospectus (such period during which
disposition is discontinued being an “Interruption Period”) and, if requested by
the Company, the Holder shall deliver to the Company (at the expense of the
Company) all copies then in its possession, other than permanent file copies then in such holder’s possession, of the Prospectus
covering such Registrable Securities at the time of receipt of such request.

 

Each
Holder of Registrable Securities covered by a Registration Statement further
agrees not to utilize any material other than the applicable current
preliminary prospectus, Free Writing Prospectus, road show or Prospectus in
connection with the offering of such Registrable Securities.

 

6.             Registration
Expenses.   Whether or not any
Registration Statement is filed or becomes effective, the Company shall pay all
costs, fees and expenses incident to the 

 

12

 

Company’s
performance of or compliance with this Agreement, including (i) all
registration and filing fees, including FINRA filing fees, (ii) all fees and
expenses of compliance with securities or “Blue Sky” laws, including reasonable
fees and disbursements of counsel in connection therewith, (iii) printing
expenses (including expenses of printing certificates for Registrable
Securities and of printing prospectuses if the printing of prospectuses is
requested by the Holders or the managing underwriter, if any) and the expenses
ordinarily paid by issuers in connection with a road show, (iv) messenger,
telephone and delivery expenses, (v) fees and disbursements of counsel for the
Company, (vi) fees and disbursements of all independent certified public
accountants of the Company (including expenses of any “cold comfort” letters
required in connection with this Agreement) and all other persons retained by
the Company in connection with such Registration Statement, (vii) the
reasonable fees and disbursements of one counsel, other than the Company’s
counsel, selected by Holders of a majority of the Registrable Securities being
registered, to represent all such Holders, provided that such amount shall not
exceed $50,000, (viii) in the event of an underwritten offering, the expenses
of the Company and the underwriters associated with any “road show” which are
customarily paid or reimbursed by issuers, and (ix) all other costs, fees and
expenses incident to the Company’s performance or compliance with this
Agreement. Notwithstanding the foregoing, the fees and expenses of any persons
retained by any Holder, other than one counsel for all such Holders, will be
payable by such Holder and the Company will have no obligation to pay any such
amounts. The Holders shall be responsible for any underwriting discounts or
commissions and transfer taxes relating to the sale of any Registrable
Securities pursuant to this Agreement.

 

7.             Underwriting
Requirements.

 

(a)           Subject to Section
7(c), any Holder shall have the right, by written notice, to request that
any take down of the Shelf Registration or any Demand Registration which such
Holder is entitled to elect hereunder provide for an underwritten offering but
the Company shall be under no obligation to conduct more than two (2) underwritten
offerings pursuant to this Agreement.

 

(b)           In the case of
any underwritten offering pursuant to a Demand Registration, the Holders of a
majority of the Registrable Securities to be disposed of in connection
therewith shall select the institution or institutions that shall manage or
lead such offering, which institution or institutions shall be reasonably
satisfactory to the Company. In the case of any underwritten offering pursuant
to a Piggyback Registration, the Company shall select the institution or institutions
that shall manage or lead such offering.

 

(c)           In the case of
any Shelf Registration, Demand Registration or Piggyback Registration that is
an underwritten offering, no Holder shall be entitled to participate in an
underwritten offering unless and until such Holder has entered into (i) an
underwriting or other agreement with such institution or institutions for such
offering, and (ii) powers of attorney and custody agreements, in each case in
such form as the Company and such institution or institutions shall reasonably
determine; provided, that no holder of 

 

13

 

Registrable
Securities included in any underwritten registration shall be required to make
any representation or warranties to the Company or the underwriters (other than
representations and warranties regarding such holder and such holder’s
ownership of the shares to be sold pursuant to such underwriting, such holder’s
stabilization activities, and with respect to information provided
in writing by such holder expressly for use in any Registration Statement) or
to undertake any indemnification or contribution obligations to the Company or
any underwriter with respect thereto, which is greater than the obligations of
the Holders provided in Section 8.

 

8.             Indemnification

 

(a)           Indemnification
by the Company. The Company shall, without limitation as to time,
indemnify and hold harmless, to the fullest extent permitted by law, each
Holder of Registrable Securities whose Registrable Securities are covered by a
Registration Statement or Prospectus, the officers, directors and agents and
employees of each of them, each Person who controls each such Holder (within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act) and the officers, directors, agents and employees of each such controlling
person, to the fullest extent lawful, from and against any and all losses,
claims, damages, liabilities, judgment, costs (including costs of investigation
or preparation and reasonable attorneys’ fees) and expenses (collectively, “Losses”), as
incurred, arising out of or based upon (w) any untrue or alleged untrue
statement of a material fact contained in such Registration Statement or
Prospectus or in any amendment or supplement thereto, any preliminary
prospectus, any Free Writing Prospectus, any information the Company has filed
or is required to file pursuant to Rule 433(d) under the Securities Act, or any
other material or information provided to or made available to investors by, or
with the approval of, the Company in connection with the offering, including
any road show for the offering (collectively, “Marketing Materials”), or (x) any omission or
alleged omission of a material fact required to be stated therein or necessary
to make the statements therein not misleading, except insofar as the same are
based upon information furnished in writing to the Company by or on behalf of
such Holder expressly for use in the Marketing Materials; provided,  however,
that the Company shall not be liable to any such Holder to the extent that any
such Losses arise out of or are based upon an untrue statement or alleged
untrue statement or omission or alleged omission made in any preliminary
prospectus if (i) having previously been furnished by or on behalf of the
Company with copies of the Prospectus, such Holder failed to send or deliver a
copy of the Prospectus with or prior to the delivery of written confirmation of
the sale of Registrable Securities by such Holder to the person asserting the
claim from which such Losses arise and (ii) the Prospectus would have corrected
in all material respects such untrue statement or alleged untrue statement or
such omission or alleged omission; and provided  further, however,
that the Company shall not be liable in any such case to the extent that any
such Losses arise out of or are based upon an untrue statement or alleged
untrue statement or omission or alleged omission in the Prospectus, if (A) such
untrue statement or alleged untrue statement, omission or alleged omission is
corrected in all material respects in an amendment or supplement to the
Prospectus, (B) having previously been furnished by or 

 

14

 

on
behalf of the Company with copies of the Prospectus as so amended or
supplemented, such Holder thereafter fails to deliver such Prospectus as so
amended or supplemented, prior to or concurrently with the sale of Registrable
Securities, and (C) such losses relate to sales during an Interruption Period
or Delay Period.

 

(b)           Indemnification
by Holder of Registrable Securities. In connection with any
Registration Statement in which a Holder is participating, such Holder shall
furnish to the Company in writing such information as the Company reasonably
requests for use in connection with the Marketing Materials and agrees to
indemnify, severally and not jointly with the other Holders and to the full
extent permitted by law, the Company,
its directors, officers, agents or employees, each Person who controls the
Company (within the meaning of Section 15 of the Securities Act and Section 20
of the Exchange Act) and the directors, officers, agents or employees of such
controlling Persons, from and against all Losses arising out of or based upon
(x) any untrue or alleged untrue statement of a material fact contained in the
Marketing Materials or (y) any omission or alleged omission of 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 or alleged
untrue statement or omission or alleged omission is based upon and is
consistent with information so furnished in writing by or on behalf of such
Holder to the Company expressly for use in such Marketing Materials. No Holder
shall be held liable for any damages in excess of the total amount of proceeds
received by such Holder from the sale of the Registrable Securities sold by
such Holder (net of all underwriting discounts and commissions) under that
particular Registration Statement.

 

(c)           Conduct of
Indemnification Proceedings.  If any Person shall be entitled to indemnity
hereunder (an “Indemnified
Party”), such Indemnified Party shall give prompt notice to the
party from which such indemnity is sought (the “Indemnifying Party”) of any claim or of
the commencement of any proceeding with respect to which such Indemnified Party
seeks indemnification or contribution pursuant hereto; provided, however,
that the delay or failure to so notify the Indemnifying Party shall not relieve
the Indemnifying Party from any obligation or liability except to the extent
that the Indemnifying Party has been materially prejudiced by such delay or
failure. The Indemnifying Party shall have the right, exercisable by giving
written notice to an Indemnified Party promptly after the receipt of written
notice from such Indemnified Party of such claim or proceeding, to assume, at
the Indemnifying Party’s expense, the defense of any such claim or proceeding,
with counsel reasonably satisfactory to such Indemnified Party; provided,
however, that (i) an Indemnified Party shall have the right to employ
separate counsel in any such claim or proceeding and to participate in the
defense thereof, but the fees and expenses of such counsel shall be at the
expense of such Indemnified Party unless: (1) the Indemnifying Party agrees to
pay such fees and expenses; (2) the Indemnifying Party fails promptly to assume
the defense of such claim or proceeding or fails to employ counsel reasonably
satisfactory to such Indemnified Party; or (3) the named parties to any
proceeding (including impleaded parties) include both such Indemnified Party
and the Indemnifying Party, and such Indemnified Party shall have been advised
by counsel that there may be one or more legal defenses 

 

15

 

available
to it that are in addition to or are inconsistent with those available to the
Indemnifying Party or that a conflict of interest is likely to exist among such
Indemnified Party and any other indemnified parties (in which case the
Indemnifying Party shall not have the right to assume the defense of such
action on behalf of such Indemnified Party); and (ii) subject to subsection (3)
above, the Indemnifying Party shall not, in connection with any one such claim
or proceeding or separate but substantially similar or related claims or
proceedings in the same jurisdiction, arising out of the same general
allegations or circumstances, be liable for the fees and expenses of more than
one firm of attorneys (together with appropriate local counsel) at any time for
all of the indemnified parties. Whether or not such defense is assumed by the
Indemnifying Party, such Indemnified Party shall not be subject to any
liability for any settlement made without its consent, which consent shall not
be unreasonably withheld, conditioned or delayed. The Indemnifying Party shall
not consent to entry of any judgment or enter into any settlement that does not
include as an unconditional term thereof the giving by the claimant or
plaintiff to such Indemnified Party of a release, in form and substance
reasonably satisfactory to the Indemnified Party, from all liability in respect
of such claim or litigation for which such Indemnified Party would be entitled
to indemnification hereunder.

 

(d)           Contribution.  If the indemnification provided for in this Section
8 is applicable in accordance with its terms but is legally unavailable to
an Indemnified Party in respect of any Losses, then each applicable
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 Losses, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party, on the one hand, and such Indemnified Party,
on the other hand, in connection with the actions, statements or omissions that
resulted in such Losses as well as any other relevant equitable considerations.
The relative fault of such Indemnifying Party, on the one hand, and Indemnified
Party, on the other hand, shall be determined by reference to, among other
things, whether any action in question, including any untrue statement of a
material fact or omission or alleged omission to state a material fact, has
been taken by, or relates to info/illation supplied by, such Indemnifying Party
or Indemnified Party, and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent any such action, statement or
omission. The amount paid or payable by a party as a result of any Losses shall
be deemed to include any legal or other fees or expenses incurred by such party
in connection with any investigation or proceeding. The parties hereto agree
that it would not be just and equitable if contribution pursuant to this Section
8(d) were determined by pro
rata allocation or by any other method of allocation that does not take account
of the equitable considerations referred to in the immediately preceding
paragraph. Notwithstanding the provisions of this Section 8(d), an
Indemnifying Party that is a Holder shall not be required to contribute any
amount which is in excess of the amount by which the total proceeds received by
such Holder from the sale of the Registrable Securities sold by such Holder
(net of all underwriting discounts and commissions) exceeds the amount of any
damages that such Indemnifying Party has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or

 

16

 

alleged
omission. 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.

 

9.             Rule 144
Information.  With a view
to making available the benefits of certain rules and regulations of the
Commission which may at any time permit the sale of the Registrable Securities
to the public without registration, after such time as a registration statement
relating to the Common Stock has been declared effective under either the
Securities Act or the Exchange Act, the Company agrees to use its commercially
reasonable efforts to:

 

(a)           Make and keep
public information available, as those terms are understood and defined in Rule 144
under the Securities Act, at all times after the earlier of (i) such time
as a registration statement relating to the Common Stock has been declared
effective under either the Securities Act or the Exchange Act or (ii) the
date that the Company becomes subject to the periodic reporting requirements
under Section 13 or 15(d) of the Exchange Act, for so long as the
Company remains subject to the periodic reporting requirements under Section 13
or 15(d) of the Exchange Act.

 

(b)           Use its commercially
reasonable efforts to file with the Commission in a timely manner all reports
and other documents required of the Company under the Securities Act and the
Exchange Act (at any time it is subject to such reporting requirements).

 

(c)           Furnish to any
Holder forthwith upon request a written statement by the Company as to its
compliance with the reporting requirements of Rule 144 under the
Securities Act (at any time after ninety (90) days after the effective date of
the first registration statement filed by the Company for an offering of its
securities to the general public), and of the Securities Act and the Exchange
Act (at any time after it has become subject to the reporting requirements of
the Exchange Act), a copy of the most recent annual or quarterly report of the
Company, and such other reports and documents of the Company and other
information as such Holder may reasonably request in availing itself of any rule or
regulation of the Commission allowing such Holder to sell any such securities
without registration.

 

10.          Miscellaneous.

 

(a)           Termination.  This Agreement and the obligations of the
Company and the Holders hereunder (other than with respect to Section 8)
shall terminate on the first date on which no Registrable Securities remain
outstanding. In addition, the obligations of the Company and of any Holder,
other than those obligations contained in Section 8, shall
terminate with respect to the Company and such Holder when such Holder no
longer holds any Registrable Securities.

 

(b)           Notices.  All notices, requests, waivers and other
communications made pursuant to this Agreement shall be in writing and shall be
deemed to have been 

 

17

 

effectively
given (i) when personally delivered to the party to be notified; (ii) when
sent by confirmed facsimile to the party to be notified at the number set forth
below; (iii) when sent by email to the party to be notified at the email
address set forth below; (iv) three (3) Business Days after deposit
in the United States mail postage prepaid by certified or registered mail
return receipt requested and addressed to the party to be notified as set forth
below; or (v) one (1) Business Day after deposit with a national
overnight delivery service, postage prepaid, addressed to the party to be
notified as set forth below with next-business-day delivery guaranteed, in each
case as follows:

 

In
the case of the Company, to:

 

The
Howard Hughes Corporation

13355
Noel Road, Suite 950

Dallas,
TX 75240

Attention:
Ronald L. Gern

Facsimile:
(214) 741-3021

 

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

 

Weil,
Gotshal & Manges LLP

767
Fifth Avenue

New
York, NY 10153

Attention:
Matthew D. Bloch

Telephone:
212-310-8000

Facsimile:
(212) 310-8007

e-mail:
matthew.bloch@weil.com

 

In
the case of the Holders:

 

To
the names and addresses set forth on the signature pages hereto.

 

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

 

Neal, Gerber & Eisenberg LLP

Two North LaSalle Street

Suite 1700

Chicago, IL 60602-3801

Attention: Earl N. Melamed

Telephone: (312) 269-8012

Facsimile: (312) 429-3544

e-mail:
emelamed@ngelaw.com

 

18

 

(c)           Separability.  If any provision of this
Agreement shall be declared to be invalid or unenforceable, in whole or in
part, such invalidity or unenforceability shall not affect the remaining
provisions hereof which shall remain in full force and effect.

 

(d)           Assignment.  This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective heirs,
devisees, legatees, legal representatives, successors and assigns. The rights
to cause the Company to register Registrable Securities pursuant to Sections
2, 3 and 4 may be assigned in connection with any transfer or assignment by
a Holder of Registrable Securities, provided, that: (i) such
transfer may otherwise be effected in accordance with applicable securities
laws; (ii) such transfer is effected in compliance with the restrictions
on transfer contained in this Agreement and in any other agreement between the
Company and the Holder; and (iii) such assignee or transferee executes
this Agreement and is an affiliate of the Holder. No transfer or assignment
will divest a Holder or any subsequent owner of any rights or powers hereunder
unless all Registrable Securities held by such Holder are transferred or
assigned.

 

(e)           Specific
Performance.  The Company
acknowledges and agrees that (a) irreparable damages would occur in the event
that any of the provisions of this Agreement are not performed in accordance
with their specific terms or are otherwise breached and (b) remedies at
law would not be adequate to compensate the non-breaching party. Accordingly,
the Company agrees that each Holder of Registrable Securities shall have the
right, in addition to any other rights and remedies existing in its favor, to
an injunction or injunctions to prevent breaches of this Agreement and to
enforce its rights hereunder. The right to equitable relief, including an
injunction, shall not be limited by any other provision of this Agreement. In
any action or proceeding against it seeking an injunction or other equitable
relief to enforce the provisions of this Agreement, the Company hereby (i) waives
and agrees not to assert any defense that an adequate remedy exists at law or
that a Holder of Registrable Securities would not be irreparably harmed and (ii) waives
and agrees not to seek any requirement for the posting of any bond or other
security in connection with any such action or proceeding.

 

(f)            Entire
Agreement.  This
Agreement represents the entire agreement of the parties and shall supersede
any and all previous contracts, arrangements or understandings between the
parties hereto with respect to the subject matter hereof.

 

(g)           Amendments and
Waivers.  Except as
otherwise provided herein, the provisions of this Agreement may not be amended,
modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given, unless (i) the Company has obtained
the written consent of Holders of at least a majority in number of the
Registrable Securities then outstanding, or (ii) such changes are not
adverse to any Holder.

 

(h)           Publicity.  No public release or announcement concerning
the transactions contemplated hereby shall be issued by any party without the
prior consent of the Company and any other party mentioned in such release or
announcement, except 

 

19

 

to
the extent that such issuing party is advised by counsel that such release or
announcement is necessary or advisable under applicable law or the rules or
regulations of any securities exchange, in which case the party required to
make the release or announcement shall to the extent practicable provide the
Company and any such other party with an opportunity to review and comment on
such release or announcement in advance of its issuance.

 

(i)            Expenses.  Whether or not the transactions contemplated
hereby are consummated, except as otherwise provided herein, all costs and expenses
incurred in connection with the execution of this Agreement shall be paid by
the party incurring such costs or expenses, except as otherwise set forth
herein.

 

(j)            Interpretation.

 

(i)            The headings
contained in this Agreement are for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement.

 

(ii)           The meaning
assigned to each term defined herein shall be equally applicable to both the
singular and the plural forms of such term and vice versa, and words denoting
either gender shall include both genders as the context requires. Where a word
or phrase is defined herein, each of its other grammatical forms shall have a
corresponding meaning.

 

(iii)          The terms “hereof’,
“herein” and “herewith” and words of similar import shall, unless otherwise
stated, be construed to refer to this Agreement as a whole and not to any
particular provision of this Agreement.

 

(iv)          When a
reference is made in this Agreement to a Section, paragraph, Exhibit or
Schedule, such reference is to a Section, paragraph, Exhibit or Schedule
to this Agreement unless otherwise specified.

 

(v)           The word “include”,
“includes”, and “including” when used in this Agreement shall be deemed to
include the words “without limitation”, unless otherwise specified.

 

(vi)          A reference to
any party to this Agreement or any other agreement or document shall include
such party’s predecessors, successors and permitted assigns.

 

(k)           Counterparts.  This Agreement may be executed in two or more
counterparts, all of which shall be one and the same agreement, and shall
become effective when counterparts have been signed by each of the parties and
delivered to each other party.

 

(l)            Governing Law.  This Agreement shall be construed,
interpreted, and governed in accordance with the internal laws of the State of
New York.

 

20

 

(m)          Calculation of
Time Periods.  Except as
otherwise indicated, all periods of time referred to herein shall include all
Saturdays, Sundays and holidays; provided, however, that if the date to
perform the act or give any notice with respect to this Agreement shall fall on
a day other than a Business Day, such act or notice may be timely performed or given if performed or given on the next succeeding Business Day.

 

(n)           FWP Consent.  No Holder shall use a Holder Free Writing
Prospectus without the prior written consent of the Company, which consent
shall not be unreasonably withheld.

 

[Signature Pages Follow]

 

21

 

IN
WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be
executed and delivered by its duly authorized officer as of the date first
above written.

 

	
   

  	
  THE
  HOWARD HUGHES CORPORATION, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

[Signature
Page to Registration Rights Agreement]

 

 

	
   

  	
  By:

  	
  M.B. Capital Partners, a South Dakota general
  partnership

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  MBA Trust, a partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  General Trust Company, Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  c/o M.B. Capital Units LLC, 300 North Dakota
  Avenue, Suite 202, Sioux Falls, South Dakota 57104

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  M.B. Capital Partners III, a South Dakota general
  partnership

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  MBA Trust, a partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  General Trust Company, Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  c/o M.B. Capital Units LLC, 300 North Dakota
  Avenue, Suite 202, Sioux Falls, South Dakota 57104

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  M.B. Capital Units LLC a South Dakota limited
  liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  M.B Capital, as sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  c/o M.B. Capital Units LLC, 300 North Dakota
  Avenue, Suite 202, Sioux Falls, South Dakota 57104

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