Document:

Registration Rights Agreement dated as of August 11, 2005

 Exhibit 10.8 
  

 REGISTRATION RIGHTS AGREEMENT 
 among 
 LCI Holding Company, Inc. 
 LCI Intermediate Holdco, Inc. 
 LCI Holdco,
LLC 
 Rainier Acquisition Corp. 
 and 
 Certain Stockholders of LCI Holding Company, Inc. 
 Dated as of August 11, 2005 
  

 TABLE OF CONTENTS 
  

									
	1.	 	EFFECTIVENESS; DEFINITIONS	  	2
		 	1.1.	 	Closing	  	2
		 	1.2.	 	Definitions	  	2
	2.	 	REGISTRATION RIGHTS	  	2
		 	2.1.	 	Demand Registration Rights for Investor Registrable Securities	  	2
	.	 		 	2.1.1	  	General	  	2
		 		 	2.1.2.	  	Form	  	3
		 		 	2.1.3.	  	Payment of Expenses	  	3
		 		 	2.1.4.	  	Additional Procedures	  	3
		 		 	2.1.5.	  	Suspension of Registration	  	4
		 	2.2.	 	Piggyback Registration Rights	  	4
		 		 	2.2.1.	  	Piggyback Registration	  	4
		 		 	2.2.2.	  	Payment of Expenses	  	5
		 		 	2.2.3.	  	Additional Procedures	  	5
		 		 	2.2.4.	  	Registration Statement Form	  	6
		 	2.3.	 	Certain Other Provisions	  	6
		 		 	2.3.1.	  	Underwriter’s Cutback	  	6
		 		 	2.3.2.	  	Registration Procedures	  	8
		 		 	2.3.3.	  	Selection of Underwriters and Counsel	  	11
		 		 	2.3.4.	  	Company Lock-Up	  	12
		 		 	2.3.6.	  	Other Agreements	  	12
		 	2.4.	 	Indemnification and Contribution	  	13
		 		 	2.4.1.	  	Indemnities of the Company	  	13
		 		 	2.4.2.	  	Indemnities to the Company	  	14
		 		 	2.4.3.	  	Contribution	  	14
		 		 	2.4.4.	  	Limitation on Liability of Holders of Registrable Securities	  	15
		 		 	2.4.5.	  	Indemnification Procedures	  	15
		 	2.5.	 	Permitted Registration Rights Assignees	  	17
		 		 	2.5.1.	  	Registration Rights	  	17
	3.	 	REMEDIES	  	16
		 	3.1.	 	Generally	  	16
	4.	 	PERMITTED TRANSFEREES	  	16
	5.	 	AMENDMENT, TERMINATION, ETC.	  	17
		 	5.1.	 	Oral Modifications	  	17
		 	5.2.	 	Written Modifications	  	17
		 	5.3.	 	Effect of Termination	  	17
	6.	 	DEFINITIONS	  	18
		 	6.1.	 	Certain Matters of Construction	  	18
		 	6.2.	 	Definitions	  	18
	7.	 	MISCELLANEOUS	  	22
		 	7.1.	 	Authority: Effect	  	22
		 	7.2.	 	Notices	  	22
		 	7.3.	 	Binding Effect, Etc.	  	24
		 	7.4.	 	Descriptive Heading	  	24

  

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		 	7.5.	  	Counterparts	  	24
		 	7.6.	  	Severability	  	24
		 	7.7.	  	No Recourse	  	24
		 	7.8.	  	Aggregation of Shares	  	25
		 	7.9.	  	Obligations of the Company, Midco, Holdco and LifeCare	  	25
	8.	 	GOVERNING LAW	  	25
		 	8.1.	  	Governing Law	  	25
		 	8.2.	  	Consent to Jurisdiction	  	25
		 	8.3.	  	WAIVER OF JURY TRIAL	  	25
		 	8.4.	  	Exercise of Rights and Remedies	  	26

  

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 REGISTRATION RIGHTS AGREEMENT 
 This Registration Rights Agreement (the “Agreement”) is made as of August 11, 2005 by and among: 
  

	 	(i)	LCI Holding Company, Inc., a Delaware corporation (together with its successors and permitted assigns, the “Company”); 

  

	 	(ii)	LCI Intermediate Holdco, Inc., a Delaware corporation (together with its successors and permitted assigns, “Midco”); 

  

	 	(iii)	LCI Holdco, LLC, a Delaware limited liability company (together with its successors and permitted assigns, “Holdco”); 

  

	 	(iv)	Rainier Acquisition Corp., a Delaware corporation (together with its successors and permitted assigns, including without limitation LifeCare Holdings following the Merger,
“LifeCare”); 

  

	 	(v)	each Person executing this Agreement and listed as an Investor on the signature pages hereto (collectively with their Permitted Transferees, the “Investors”);

  

	 	(vi)	such Persons, if any, that from time to time become party hereto as managers (collectively, the “Managers” and, together with the Investors, the
“Stockholders”); and 

  

	 	(vii)	such other Persons, if any, that from time to time become party hereto as holders of Other Holder Shares (as defined below) pursuant to Section 4.3 solely in the capacity of
permitted assignees with respect to certain registration rights hereunder (collectively, the “Other Holders”). 

 RECITALS 
 1. The Company has been formed for the purpose of acquiring, indirectly through one or more subsidiaries,
pursuant to an Agreement and Plan of Merger, dated as of July 19, 2005 (the “Merger Agreement”), among Holdco, LifeCare, LifeCare Holdings, Inc. (“LifeCare Holdings”) and the Representative (as defined in the
Merger Agreement), all of the outstanding capital stock of LifeCare Holdings. At the Effective Time (as defined in the Merger Agreement), LifeCare will merge with and into LifeCare Holdings. 
 2. Upon the Closing (as defined below), the Common Stock (as defined below) of the Company will be held as set forth on Schedule I hereto.

 3. In connection with the purchase of such securities, the Company, Midco, Holdco, LifeCare and the Stockholders have entered into a
stockholders agreement dated as of the date hereof (the “Stockholders Agreement”). 

 4. The parties believe that it is in the best interests of the Company, Midco, Holdco, LifeCare and the
Stockholders to set forth their agreements on certain matters. 
 AGREEMENT 
 Therefore, the parties hereto hereby agree as follows: 
 1. EFFECTIVENESS; DEFINITIONS. 
 1.1. Closing. This Agreement shall become effective upon the consummation of the
closing under the Merger Agreement (the “Closing”). 
 1.2. Definitions. Certain terms are used in this Agreement as
specifically defined herein. These definitions are set forth or referred to in Section 6 hereof. 
 2. REGISTRATION RIGHTS. The Company will
perform and comply, and cause each of its subsidiaries to perform and comply, with such of the following provisions as are applicable to it. Each Holder will perform and comply with such of the following provisions as are applicable to such Holder.

 2.1. Demand Registration Rights for Investor Registrable Securities. 
 2.1.1. General. Subject to Section 2.3.7, one or more Investors or direct or indirect Permitted Registration Rights Assignees
of any such Investors (the “Initiating Investors”), by notice to the Company specifying the intended method or methods of disposition, may request that the Company effect the registration under the Securities Act for a Public
Offering of all or a specified part of the Registrable Securities held by such Initiating Investors; provided, however, that the value of Registrable Securities that the Initiating Investors propose to sell in such Public Offering is
at least twenty-five million dollars ($25,000,000) or such lower amount as agreed by the Majority Investors. The Company will then use its best efforts to (i) effect the registration under the Securities Act (including by means of a shelf
registration pursuant to Rule 415 under the Securities Act if so requested by the Majority Investors and if the Company is then eligible to use such registration) of the Registrable Securities which the Company has been requested to register by such
Initiating Investors together with all other Registrable Securities which the Company has been requested to register pursuant to Section 2.2 by other Holders, all to the extent required to permit the disposition (in accordance with the intended
methods thereof as aforesaid and as otherwise specified by the Initiating Investors) of the Registrable Securities which the Company has been so requested to register, and (ii) if requested by the Initiating Investors, obtain acceleration of
the effective date of the registration statement relating to such registration; provided, however, that the Company shall not be obligated to take any action to effect any such registration pursuant to this Section 2.1.1:

 (a) during the effectiveness of any Principal Lock-Up Agreement entered into in connection with any registration statement
pertaining to an underwritten 

  

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public offering of securities of the Company for its own account (other than a Rule 145 Transaction, or a registration relating solely to employee benefit
plans); 
 (b) on any form other than Form S-3 (or any successor form) if the Company has previously effected a number of
registrations of Registrable Securities under this Section 2.1.1 upon the request of such Initiating Investors on any form other than Form S-3 (or any successor form) equaling or exceeding four (4); provided, however, that any
registration of Registrable Securities (i) which does not become and remain effective for at least 270 days in accordance with the provisions of this Section 2 or (ii) pursuant to which the Initiating Investors and all other holders
of Registrable Securities joining therein are not able to include at least 90% of the Registrable Securities which they desired to include shall not be included in the calculation of the numbers of registrations contemplated by this clause (b); or

 (c) if a registration statement requested under this Section 2.1.1 became effective within the preceding 90 days.

 2.1.2. Form. Except as otherwise provided above or required by law, each registration requested pursuant to
Section 2.1.1 shall be effected by the filing of a registration statement on Form S-3 (or any other form which includes substantially the same information as would be required to be included in a registration statement on such form as currently
constituted); provided that if any registration requested pursuant to this Section 2.1 is proposed to be effected on Form S-3 (or any successor or similar short form registration statement) and is in connection with an underwritten
offering, and if the managing underwriter shall advise the Company in writing that, in its opinion, it is of material importance to the success of such proposed offering to file a registration statement on Form S-1 (or any successor or similar
registration statement) or to include in such registration statement information not required to be included pursuant to Form S-3 (or any successor or similar short form registration statement), then the Company will file a registration statement on
Form S-1 or supplement Form S-3 (or any successor or similar short form registration statement) as reasonably requested by such managing underwriter. 
 2.1.3. Payment of Expenses. The Company shall pay all Registration Expenses in connection with registrations of Registrable Securities pursuant to this Section 2.1, including all reasonable expenses (other
than fees and disbursements of counsel that do not constitute Registration Expenses) that any Holder incurs in connection with each registration of Registrable Securities requested pursuant to this Section 2.1. 
 2.1.4. Additional Procedures. In the case of a registration pursuant to Section 2.1 hereof, whenever the Initiating Investors
shall request that such registration shall be effected pursuant to an underwritten offering, the Company shall include such information in the written notices to Holders referred to in Section 2.2. In such event, the right of any Holder to have
securities owned by such Holder included in such registration pursuant to Section 2.1 shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable 

  

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Securities in the underwriting (unless otherwise mutually agreed upon by the Initiating Investors and such Holder). If requested by the Initiating Investors,
the Company together with the Holders proposing to distribute their securities through the underwriting will enter into an underwriting agreement with the underwriters for such offering containing such representations and warranties by the Company
and such Holders and such other terms and provisions as are customarily contained in underwriting agreements with respect to secondary distributions, including customary indemnity and contribution provisions (subject, in each case, to the
limitations on such liabilities set forth in this Agreement). 
 2.1.5. Suspension of Registration. If the filing,
initial effectiveness or continued use of a registration statement, including a shelf registration statement pursuant to Rule 415 under the Securities Act, in respect of a registration pursuant to this Section 2.1 at any time would require the
Company to make a public disclosure of material non-public information, which disclosure in the good faith judgment of the Board (including the consent of the directors designated by one or more of the Carlyle Investors pursuant to the Stockholders
Agreement) (after consultation with external legal counsel) (i) would be required to be made in any registration statement so that such registration statement would not be materially misleading, (ii) would not be required to be made at
such time but for the filing, effectiveness or continued use of such registration statement and (iii) would have a material adverse effect on the Company or its business or on the Company’s ability to effect a material proposed
acquisition, disposition, financing, reorganization, recapitalization or similar transaction, then the Company may, upon giving prompt written notice of such action to the Holders participating in such registration, delay the filing or initial
effectiveness of, or suspend use of, such registration statement; provided, that the Company shall not be permitted to do so (i) more than two times during any 12 month period, (ii) for a period exceeding 30 days on any one occasion
or (iii) for a period exceeding 60 days in any 12 month period. In the event the Company exercises its rights under the preceding sentence, such Holders agree to suspend, promptly upon their receipt of the notice referred to above, their use of
any prospectus relating to such registration in connection with any sale or offer to sell Registrable Securities. The Company shall promptly notify such Holders of the expiration of any period during which it exercised its rights under this
Section 2.1.5. The Company agrees that, in the event it exercises its rights under this Section 2.1.5, it shall, within 30 days following such Holders’ receipt of the notice of suspension, update the suspended registration statement
as may be necessary to permit the Holders to resume use thereof in connection with the offer and sale of their Registrable Securities in accordance with applicable law. 
 2.2. Piggyback Registration Rights. 
 2.2.1. Piggyback Registration.

 (a) General. Each time the Company proposes to register any shares of Common Stock under the Securities Act on a
form which would permit registration of Registrable Securities for sale to the public, for its own account and/or for the account of any other Person (pursuant to Section 2.1 or otherwise) 

  

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for sale in a Public Offering, the Company will give notice to all Holders of its intention to do so. Any Holder may, by written response delivered to the
Company within 20 days after the date of delivery of such notice, request that all or a specified part of such Holder’s Registrable Securities be included in such registration. The Company thereupon will use its best efforts to cause to be
included in such registration under the Securities Act all Registrable Securities which the Company has been so requested to register by such Holders, to the extent required to permit the disposition (in accordance with the methods to be used by the
Company or, pursuant to Section 2.1, other Holders in such Public Offering) of the Registrable Securities to be so registered; provided that (i) if, at any time after giving written notice of its intention to register any
securities, the Company shall determine for any reason not to proceed with the proposed registration of the securities to be sold by it, the Company may, at its election, give written notice of such determination to each Holder and, thereupon, shall
be relieved of its obligation to register any Registrable Securities in connection with such registration (but not from its obligation to pay the Registration Expenses in connection therewith), and (ii) if such registration involves an
underwritten offering, all Holders requesting to be included in the Company’s registration must sell their Registrable Securities to the underwriters selected by the Company on the same terms and conditions as apply to the Company (with such
differences as may be customary or appropriate in combined primary and secondary offerings) or, in the case of a registration initiated pursuant to Section 2.1.1, the Initiating Investors. No registration of Registrable Securities effected
under this Section 2.2 shall relieve the Company of any of its obligations to effect registrations of Registrable Securities pursuant to Section 2.1 hereof. 
 (b) Excluded Transactions. The Company shall not be obligated to effect any registration of Registrable Securities under this
Section 2.2 incidental to the registration of any of its securities in connection with: 
 (i) Any Public Offering
relating to employee benefit plans or dividend reinvestment plans; 
 (ii) Any Public Offering relating to the acquisition or
merger after the date hereof by the Company or any of its subsidiaries of or with any other businesses except to the extent such Public Offering is for the sale of securities for cash; or 
 (iii) The Initial Public Offering if all Registrable Securities included in such Initial Public Offering are securities of the Company
for its own account. 
 2.2.2. Payment of Expenses. The Company will pay all Registration Expenses in connection with
registrations of Registrable Securities pursuant to this Section 2.2. 
 2.2.3. Additional Procedures. Holders
participating in any Public Offering pursuant to this Section 2.2 shall take all such actions and execute all such documents 

  

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and instruments that are reasonably requested by the Company to effect the sale of their Registrable Securities in such Public Offering, including being
parties to the underwriting agreement entered into by the Company and any other selling shareholders in connection therewith and being liable in respect of the representations and warranties and the other agreements to be made by them (including
customary selling stockholder representations, warranties, indemnifications and “lock-up” agreements) for the benefit of the underwriters contained therein; provided, however, that (a) with respect to individual
representations, warranties, indemnities and agreements of sellers of Registrable Securities in such Public Offering, the aggregate amount of such liability shall not exceed such holder’s net proceeds from such offering and (b) to the
extent selling stockholders give further representations, warranties and indemnities, then with respect to all other representations, warranties and indemnities of sellers of shares in such Public Offering, the aggregate amount of such liability
shall not exceed the lesser of (i) such holder’s pro rata portion of any such liability, in accordance with such holder’s portion of the total number of Registrable Securities included in the offering, and (ii) such holder’s
net proceeds from such offering less the amount of such holder’s liability, if any, under clause (a) above in respect of such Public Offering. 
 2.2.4. Registration Statement Form. The Company shall select the registration statement form for any registration pursuant to this Section 2.2 (other than a registration that is also pursuant to
Section 2.1); provided, however, that if any registration requested pursuant to this Section 2.2 is proposed to be effected on Form S-3 (or any successor form) and is in connection with an underwritten offering, and if the
managing underwriter shall advise the Company in writing that, in its opinion, it is of material importance to the success of such proposed offering to include in such registration statement information not required to be included pursuant to such
form, then the Company will supplement such registration statement as reasonably requested by such managing underwriter. 
 2.3. Certain
Other Provisions. 
 2.3.1. Underwriter’s Cutback. In connection with any registration of shares, the
underwriter may determine that marketing factors (including an adverse effect on the per share offering price) require a limitation of the number of shares to be underwritten. Notwithstanding any contrary provision of this Section 2 and subject
to the terms of this Section 2.3.1, the underwriter may limit the number of shares which would otherwise be included in such registration by excluding any or all Registrable Securities from such registration, it being understood that, if the
registration in question involves a registration for sale of securities for the Company’s own account, then the number of shares which the Company seeks to have registered in such registration shall not be subject to exclusion, in whole or in
part, under this Section 2.3.1. Upon receipt of notice from the underwriter of the need to reduce the number of shares to be included in the registration, the Company shall advise all holders of the Company’s securities that would
otherwise be registered and underwritten pursuant hereto, and the number of shares of such securities, including Registrable Securities, that may be included in the registration shall be allocated in the following manner, unless the underwriter
shall 

  

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determine that marketing factors require a different allocation: shares, other than Registrable Securities, requested to be included in such registration by
other shareholders shall be excluded except for any shares which the Company, with the consent of the parties required to approve any amendment or waiver of this Agreement pursuant to Section 5.2, has granted registration rights which are to be
treated on an equal basis with Registrable Securities for the purpose of the exercise of the underwriter cutback (such shares afforded such equal treatment being “Parity Shares”); and, if a limitation on the number of shares is
still required, the number of Registrable Securities, Parity Shares and other shares of Common Stock that may be included in such registration shall be allocated among the holders thereof in proportion, as nearly as practicable, as follows (but
giving effect to Section 7.8): 
 (a) there shall be first allocated to each such holder requesting that its Registrable
Securities or Parity Shares be registered in such registration a number of such shares to be included in such registration equal to the lesser of (i) the number of such shares requested to be registered by such holder, and (ii) a number of
such shares equal to such holder’s Pro Rata Portion; 
 (b) the balance, if any, not allocated pursuant to clause
(a) above shall be allocated to those holders requesting that their Registrable Securities or Parity Shares be registered in such registration which requested to register a number of such shares in excess of such holder’s Pro Rata Portion
pro rata to each such holder based upon the number of Registrable Securities and Parity Shares held by such holder, or in such other manner as the holders requesting that their Registrable Securities or Parity Shares be registered in such
registration may otherwise agree; and 
 (c) the balance, if any, not allocated pursuant to clause (b) above shall be
allocated to shares, other than Registrable Securities and Parity Shares, requested to be included in such registration by other stockholders. 
 For
purposes of any underwriter cutback, all Registrable Securities held by any Holder shall also include any Registrable Securities held by the partners, retired partners, shareholders or Affiliates of such Holder, or the estates and family members of
any such Holder or such partners and retired partners, any trusts for the benefit of any of the foregoing Persons and, at the election of such Holder or such partners, retired partners, trusts or Affiliates, any Charitable Organization to which any
of the foregoing shall have contributed Common Stock prior to the execution of the underwriting agreement in connection with such underwritten offering, and such Holder and other Persons shall be deemed to be a single selling Holder, and any pro
rata reduction with respect to such selling Holder shall be based upon the aggregate amount of Common Stock owned by all entities and individuals included in such selling Holder, as defined in this sentence. No securities excluded from the
underwriting by reason of the underwriter’s marketing limitation shall be included in such registration. Upon delivery of a written request that Registrable Securities be included in the underwriting pursuant to Section 2.1.1 or 2.2.1(a),
the Holder thereof may not thereafter elect to withdraw therefrom without the written consent of the Initiating Investors, in the case of a registration initiated pursuant to Section 2.1, or the Majority Investors, in the case of a registration
pursuant to Section 2.2; provided that, if the managing 

  

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underwriter of any underwritten offering shall advise the Holders participating in a registration pursuant to Section 2.1 that the Registrable
Securities covered by the registration statement cannot be sold in such offering within a price range acceptable to the Initiating Investors or Majority Investors, as applicable, then the Initiation Investors or Majority Investors, as applicable,
shall have the right to notify the Company that they have determined that the registration statement be abandoned or withdrawn, in which event the Company shall abandon or withdraw such registration statement; provided, further, that
if the price to the public at which the Registrable Securities are proposed to be sold will be less than 90% of the average closing price of the Common Stock during the 10 trading days preceding the date on which notice of such offering was given
pursuant to Section 2.2.1(a), then the Investors participating in such registration pursuant to Section 2.1 or 2.2 may elect to withdraw from such registration by written notice to the Company. The Company may, but shall not be required
to, extend a similar withdrawal right to other Holders of Registrable Securities or Parity Shares. 
 2.3.2. Registration
Procedures. If and in each case when the Company is required to effect a registration of any Registrable Securities as provided in this Section 2, the Company shall promptly: 
 (a) prepare and, in any event within forty-five days (thirty days in the case of a Form S-3 registration) after the end of the period
under Section 2.2.1(a) within which a piggyback request for registration may be given to the Company, file with the Commission a registration statement with respect to such Registrable Securities and use its best efforts to cause such
registration statement to become effective within ninety days of the initial filing; 
 (b) prepare and file with the
Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective for a period not in excess of 270 days (or such shorter
period which will terminate when all Registrable Securities covered by such registration statement have been sold) and to comply with the provisions of the Securities Act and the Exchange Act with respect to the disposition of all securities covered
by such registration statement during such period in accordance with the intended methods of disposition by the seller or sellers thereof set forth in such registration statement; provided that before filing a registration statement or
prospectus, or any amendments or supplements thereto in accordance with Sections 2.1 or 2.2, the Company will furnish to each counsel selected pursuant to Section 2.3.3 hereof copies of all documents proposed to be filed, which documents will
be subject to the review of such counsel; 
 (c) furnish to each seller of such Registrable Securities such number of copies
of such registration statement and of each amendment and supplement thereto (in each case including all exhibits filed therewith), such number of copies of the prospectus included in such registration statement (including each preliminary prospectus
and summary prospectus), in conformity with the requirements of the Securities Act, and such other documents as such seller may 

  

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reasonably request in order to facilitate the disposition of the Registrable Securities by such seller; 
 (d) use its best efforts to register or qualify such Registrable Securities covered by such registration in such jurisdictions as each
seller shall reasonably request, and do any and all other acts and things which may be reasonably necessary or advisable to enable such seller to consummate the disposition in such jurisdictions of the Registrable Securities owned by such seller,
except that the Company shall not for any such purpose be required to qualify generally to do business as a foreign corporation in any jurisdiction where, but for the requirements of this clause (d), it would not be obligated to be so qualified or
to consent to general service of process in any such jurisdiction; 
 (e) notify each seller of any such Registrable
Securities covered by such registration statement, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the Company’s becoming aware that the prospectus included in such registration statement,
as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing, and at the
request of any such seller, prepare and furnish to such seller a reasonable number of copies of an amended or supplemental prospectus as may be necessary so that, as thereafter delivered to the purchasers of such Registrable Securities, such
prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing;

 (f) otherwise use its best efforts to comply with all applicable rules and regulations of the Commission, and make
available to its security holders, as soon as reasonably practicable (but not more than 18 months) after the effective date of the registration statement, an earnings statement which shall satisfy the provisions of Section 11(a) of the
Securities Act; 
 (g) (i) use its best efforts to list such Registrable Securities on any national securities exchange or
authorize for quotation on each other market (including, if applicable, the National Association of Securities Dealers, Inc. (the “NASD”) Automated Quotation System) on which the Common Stock is then listed or authorized for
quotation if such Registrable Securities are not already so listed or authorized for quotation; and (ii) use its best efforts to provide a transfer agent and registrar for such Registrable Securities covered by such registration statement not
later than the effective date of such registration statement; 
 (h) enter into such customary agreements (including an
underwriting agreement in customary form), which may include indemnification provisions in favor of underwriters and other Persons in addition to the provisions of Section 2.4 hereof, and take such other actions as the Initiating Investors or
the 

  

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Majority Investors, as applicable, or the underwriters, if any, reasonably requested in order to expedite or facilitate the disposition of such Registrable
Securities; 
 (i) in the case of any underwritten offering, obtain a “cold comfort” letter or letters from the
Company’s independent public accountants in customary form and covering matters of the type customarily covered by “cold comfort” letters as the Initiating Investors (in the case of a registration initiated pursuant to
Section 2.1) or the Majority Investors (in all other cases), shall reasonably request; 
 (j) make available for
inspection by any seller of such Registrable Securities covered by such registration statement, by any managing underwriter or underwriters participating in any disposition to be effected pursuant to such registration statement and by any attorney,
accountant or other agent retained by any such seller or any such managing underwriter(s), all pertinent financial and other records, pertinent corporate documents and properties of the Company, and cause all of the Company’s officers,
directors and employees to supply all information reasonably requested by any such seller, underwriter, attorney, accountant or agent in connection with such registration statement (subject to each party referred to in this clause (j) entering
into customary confidentiality agreements in a form reasonably acceptable to the Company); 
 (k) notify each counsel selected
pursuant to Section 2.3.3 hereof for the Holders of Registrable Securities included in such registration statement and the managing underwriter or agent, immediately, and confirm the notice in writing (i) when the registration statement,
or any post-effective amendment to the registration statement, shall have become effective, or any supplement to the prospectus or any amendment to the prospectus shall have been filed, (ii) of the receipt of any comments from the Commission,
(iii) of any request of the Commission to amend the registration statement or amend or supplement the prospectus or for additional information, and (iv) of the issuance by the Commission of any stop order suspending the effectiveness of
the registration statement or of any order preventing or suspending the use of any preliminary prospectus, or of the suspension of the qualification of the registration statement for offering or sale in any jurisdiction, or of the institution or
threatening of any proceedings for any of such purposes; 
 (l) make every commercially reasonable effort to prevent the
issuance of any stop order suspending the effectiveness of the registration statement or of any order preventing or suspending the use of any preliminary prospectus and, if any such order is issued, to obtain the withdrawal of any such order as soon
as practicable; 
 (m) if requested by the managing underwriter or agent or any Holder of Registrable Securities covered by
the registration statement, incorporate in a prospectus supplement or post-effective amendment such information as the managing underwriter or agent or such Holder reasonably requests to be included therein, including, with respect to the number of
Registrable Securities being sold 

  

 -10- 

 
by such Holder to such underwriter or agent, the purchase price being paid therefor by such underwriter or agent and with respect to any other terms of the
underwritten offering of the Registrable Securities to be sold in such offering; and make all required filings of such prospectus supplement or post-effective amendment as soon as practicable after being notified of the matters incorporated in such
prospectus supplement or post-effective amendment; 
 (n) cooperate with the Holders of Registrable Securities covered by the
registration statement and the managing underwriter or agent, if any, to facilitate the timely preparation and delivery of certificates (not bearing any restrictive legends) representing securities to be sold under the registration statement, and
enable such securities to be in such denominations and registered in such names as the managing underwriter or agent, if any, or such Holders may request; 
 (o) obtain for delivery to the Holders of Registrable Securities being registered and to the underwriter or agent an opinion or opinions from counsel for the Company in customary form and in form, substance and scope
reasonably satisfactory to such Holders, underwriters or agents and their counsel; 
 (p) cooperate with each seller of
Registrable Securities and each underwriter or agent participating in the disposition of such Registrable Securities and their respective counsel in connection with any filings required to be made with the NASD; and 
 (q) use its commercially reasonable best efforts to make available the executive officers of the Company to participate with the Holders
of Registrable Securities and any underwriters in any “road shows” that may be reasonably requested by the Holders in connection with distribution of the Registrable Securities. 
 2.3.3. Selection of Underwriters and Counsel. The underwriters to be retained by the Company (a) in connection with the
Initial Public Offering shall be selected by the Board, (b) in connection with the first Public Offering following the Initial Public Offering, if initiated pursuant to Section 2.1, shall be selected by the Investors holding a majority of
Registrable Securities proposed to be covered by such registration, and (c) otherwise, shall be selected by the Holders of a majority of Registrable Securities proposed to be covered by such registration. In connection with any registration of
Registrable Securities pursuant to Section 2.1 or 2.2 hereof, the Holders of a majority of Registrable Securities covered by such registration may select one counsel to represent all Holders of Registrable Securities covered by such
registration; provided, that the cost of such counsel shall be borne by the Company; provided, however, that in the event that the counsel selected as provided above is also acting as counsel to the Company in connection with
such registration, the remaining Holders shall be entitled to select one additional counsel to represent, at the Company’s expense, all such remaining Holders. 
  

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 2.3.4. Company Lock-Up. If any registration pursuant to Section 2.1 of this
Agreement shall be in connection with an underwritten public offering, the Company agrees not to effect any public sale or distribution of any Common Stock of the Company (or securities convertible into or exchangeable or exercisable for Common
Stock) (in each case, other than as part of such underwritten public offering and other than pursuant to a registration on Form S-4 or S-8 or any successor form thereto) for its own account, within 90 days (or such shorter period as the managing
underwriters may require) after, the effective date of such registration (except as part of such registration). 
 2.3.5.
Holders Lock-Up. In connection with each underwritten Public Offering each Holder hereby agrees to be bound by and, if requested, to execute and deliver such lock-up agreement with the underwriter(s) of such Public Offering restricting such
Holder’s right to (a) Transfer, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable for such Common Stock or (b) enter into any swap or other arrangement that transfers
to another any of the economic consequences of ownership of Common Stock, in each case to the extent that such restrictions are agreed to (i) in the case of an Initial Public Offering or a Public Offering initiated upon the request of an
Initiating Investor, by the underwriter(s) of such offering and Investors holding a majority of the Shares participating in such offering or (ii) in the case of all other Public Offerings, by the underwriter(s) of such Public Offering and the
holders of a majority of Shares participating in such Public Offering (the “Principal Lock-Up Agreement”); provided, however, that no Holder shall be required by this Section 2.3.5 to be bound by a lock-up
agreement covering a period of greater than seven days before and 90 days (180 days in the case of the Initial Public Offering) following the effectiveness of the related registration statement; provided, further, that no Holder shall
be required by this Section 2.3.5 to be bound by a lock-up agreement unless the Investors that hold a majority of Shares then held by all Investors agree to approve such lock-up agreement. Notwithstanding the foregoing, such lock-up agreement
shall not apply to (i) transactions relating to shares of Common Stock or other securities acquired in (a) open market transactions or block purchases after the completion of the Initial Public Offering or (b) a Public Offering,
(ii) Transfers to Permitted Transferees of such Holder in accordance with the terms of the Stockholders Agreement, (iii) conversions of shares of Common Stock into other classes of Common Stock without change of holder and (iv) during
the period preceding the execution of the underwriting agreement, Transfers to a Charitable Organization in accordance with the terms of the Stockholders Agreement. 
 2.3.6. Other Agreements. The Company covenants and agrees that, so long as any Person holds any Registrable Securities in respect
of which any registration rights provided for in Section 2.1 of this Agreement remain in effect, the Company will not, directly or indirectly, without the consent of the Majority Investors, grant to any Person or agree to or otherwise become
obligated in respect of (i) rights of registration in the nature or substantially in the nature of those set forth in Section 2.1 of this Agreement that would have priority over or parity with the Registrable Securities with respect to the
inclusion of such securities in any registration or (ii) demand registration rights exercisable prior to such time as the Investors can first exercise their rights under Section 2.1. 
  

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 2.3.7. Initial Public Offering and Subsequent Public Offering. Notwithstanding any
other provision of this Agreement, (a) the Initial Public Offering may not be initiated without the approval of the Majority Investors and (b) during the first two years following the consummation of the Initial Public Offering, the first
Public Offering following the Initial Public Offering may not be initiated without the approval of the Majority Investors, in each case, whether initiated pursuant to Section 2.1.1 or otherwise. 
 2.4. Indemnification and Contribution. 
 2.4.1. Indemnities of the Company. In the event of any registration of any Registrable Securities or other debt or equity securities of the Company or any of its subsidiaries under the Securities Act pursuant
to this Section 2 or otherwise, and in connection with any registration statement or any other disclosure document produced by or on behalf of the Company or any of its subsidiaries including reports required and other documents filed under the
Exchange Act, and other documents pursuant to which any debt or equity securities of the Company or any of its subsidiaries are sold (whether or not for the account of the Company or its subsidiaries), the Company will, and hereby does, and will
cause each of its subsidiaries, jointly and severally, to indemnify and hold harmless each holder of Registrable Securities, any Person who is or might be deemed to be a controlling person of the Company or any of its subsidiaries within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act, their respective direct and indirect partners, advisory board members, directors, officers, trustees, members, representatives and shareholders, and each other Person,
if any, who controls any such holder or any such controlling person within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person being referred to herein as a “Covered
Person”), against any losses, claims, damages or liabilities (or actions or proceedings in respect thereof), joint or several, to which such Covered Person may be or become subject under the Securities Act, the Exchange Act, any other
securities or other law of any jurisdiction, the common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of or are based upon (i) any untrue statement or alleged
untrue statement of any material fact contained or incorporated by reference in any registration statement under the Securities Act, any preliminary prospectus or final prospectus included therein, or any related summary prospectus, or any amendment
or supplement thereto, or any document incorporated by reference therein, or any other such disclosure document (including reports and other documents furnished or filed under the Exchange Act and any document incorporated by reference therein) or
other document or report, (ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading or (iii) any violation or alleged violation by the
Company or any of its subsidiaries of any federal, state, foreign or common law rule or regulation applicable to the Company or any of its subsidiaries and relating to action or inaction in connection with any such registration, disclosure document
or other document or report, and will reimburse such Covered Person for any legal or any other expenses incurred by it in connection with investigating or defending any such loss, claim, damage, liability, action or proceeding; provided,
however, that neither the Company nor any of its subsidiaries shall be liable 

  

 -13- 

 
to any Covered Person in any such case to the extent that any such loss, claim, damage, liability, action or proceeding arises out of or is based upon an
untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, any such preliminary prospectus, final prospectus, summary prospectus, amendment or supplement, incorporated document or other such
disclosure document or other document or report, in reliance upon and in conformity with written information furnished to the Company or to any of its subsidiaries through an instrument duly executed by such Covered Person specifically stating that
it is for use in the preparation thereof. The indemnities of the Company and of its subsidiaries contained in this Section 2.4.1 shall remain in full force and effect regardless of any investigation made by or on behalf of such Covered Person
and shall survive any transfer of securities or any termination of this Agreement. 
 2.4.2. Indemnities to the
Company. Subject to Section 2.4.4, the Company and any of its subsidiaries may require, as a condition to including any securities in any registration statement filed pursuant to this Section 2, that the Company and any of its
subsidiaries shall have received an undertaking satisfactory to it from the prospective seller of such securities, severally and not jointly, to indemnify and hold harmless the Company and any of its subsidiaries, each director of the Company or any
of its subsidiaries, each officer of the Company or any of its subsidiaries who shall sign such registration statement and each other Person (other than such seller), if any, who controls the Company and any of its subsidiaries within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act and each other prospective seller of such securities with respect to any statement in or omission from such registration statement, any preliminary prospectus, final
prospectus or summary prospectus included therein, or any amendment or supplement thereto, or any other disclosure document (including reports and other documents filed under the Exchange Act or any document incorporated therein) or other document
or report, if such statement or omission was made in reliance upon and in conformity with written information furnished to the Company or any of its subsidiaries through an instrument executed by such seller specifically stating that it is for use
in the preparation of such registration statement, preliminary prospectus, final prospectus, summary prospectus, amendment or supplement, incorporated document or other document or report. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of the Company, any of its subsidiaries or any such director, officer or controlling Person and shall survive any transfer of securities or any termination of this Agreement. 
 2.4.3. Contribution. If the indemnification provided for in Sections 2.4.1 or 2.4.2 hereof is unavailable to a party that would
have been entitled to indemnification pursuant to the foregoing provisions of this Section 2.4 (an “Indemnitee”) in respect of any losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred
to therein, then each party that would have been an indemnifying party thereunder shall, subject to Section 2.4.4 and in lieu of indemnifying such Indemnitee, contribute to the amount paid or payable by such Indemnitee as a result of such
losses, claims, damages or liabilities (or actions or proceedings in respect thereof) in such proportion as is appropriate to reflect the relative fault of such indemnifying party on 

  

 -14- 

 
the one hand and such Indemnitee on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities
(or actions or proceedings in respect thereof). The relative fault 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 such indemnifying party or such Indemnitee and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The parties agree that it
would not be just or equitable if contribution pursuant to this Section 2.4.3 were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the preceding
sentence. The amount paid or payable by a contributing party as a result of the losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to above in this Section 2.4.3 shall include any legal or other
expenses reasonably incurred by such Indemnitee in connection with investigating or defending any such action or claim. 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. 
 2.4.4. Limitation on
Liability of Holders of Registrable Securities. The liability of each holder of Registrable Securities in respect of any indemnification or contribution obligation of such holder arising under this Section 2.4 shall not in any event exceed
an amount equal to the net proceeds to such holder (after deduction of all underwriters’ discounts and commissions) from the disposition of the Registrable Securities disposed of by such holder pursuant to such registration. 
 2.4.5. Indemnification Procedures. Promptly after receipt by an Indemnitee of written notice of the commencement of any action or
proceeding with respect to which a claim for indemnification may be made pursuant to this Section 2.4, such Indemnitee will, if a claim in respect thereof is to be made against an indemnifying party, give written notice to the latter of the
commencement of such action or proceeding; provided that the failure of the Indemnitee to give notice as provided herein shall not relieve the indemnifying party of its obligations under this Section 2.4, except to the extent and only to
the extent that the indemnifying party is materially prejudiced by such failure to give notice. In case any such action or proceeding is brought against an Indemnitee, the indemnifying party will be entitled to participate in and to assume the
defense thereof (at its expense), jointly with any other indemnifying party similarly notified to the extent that it may wish, with counsel reasonably satisfactory to such Indemnitee, and after notice from the indemnifying party to such Indemnitee
of its election so to assume the defense thereof, the indemnifying party will not be liable to such Indemnitee for any legal or other expenses subsequently incurred by the latter in connection with the defense thereof other than reasonable costs of
investigation and shall have no liability for any settlement made by the Indemnitee without the consent of the indemnifying party, such consent not to be unreasonably withheld. Notwithstanding the foregoing, if in such Indemnitee’s reasonable
judgment a conflict of interest between such Indemnitee and the indemnifying parties may exist in respect of such action or proceeding or the indemnifying party does not assume the defense of any such action or proceeding within a reasonable time
after notice of commencement, the Indemnitee 

  

 -15- 

 
shall have the right to assume or continue its own defense and the indemnifying party shall be liable for any reasonable expenses therefor, but in no event
will bear the expenses for more than one firm of counsel for all Indemnitees in each jurisdiction who shall be approved by (a) the Initiating Investors in the case of a registration initiated pursuant to Section 2.1 or (b) in all
other cases, the Majority Investors. No indemnifying party will settle any action or proceeding or consent to the entry of any judgment without the prior written consent of the Indemnitee, unless such settlement or judgment (i) includes as an
unconditional term thereof the giving by the claimant or plaintiff of a release to such Indemnitee from all liability in respect of such action or proceeding and (ii) does not include any admission as to fault or culpability on the part of any
Indemnitee and (iii) does not involve the imposition of equitable remedies or the imposition of any obligations on such Indemnitee and does not otherwise adversely affect such Indemnitee, other than as a result of the imposition of financial
obligations for which such Indemnitee will be indemnified hereunder. 
 3. REMEDIES. 
 3.1. Generally. The parties shall have all remedies available at law, in equity or otherwise in the event of any breach or violation of this
Agreement or any default hereunder. The parties acknowledge and agree that in the event of any breach of this Agreement, in addition to any other remedies which may be available, each of the parties hereto shall be entitled to specific performance
of the obligations of the other parties hereto and, in addition, to such other equitable remedies (including preliminary or temporary relief) as may be appropriate in the circumstances. 
 4. PERMITTED TRANSFERS. 
 4.1. Transfers by Investors. The rights of an Investor hereunder may
be assigned (but only with all related obligations as set forth below) in connection with a Transfer of Shares effected in accordance with the terms of the Stockholders Agreement and this Agreement to a Permitted Transferee of such Investor. Without
prejudice to any other or similar conditions imposed hereunder with respect to any such Transfer, no assignment permitted under the terms of this Section 4.1 shall be effective unless the Permitted Transferee to which such assignment is being
made, if not a Stockholder, has delivered to the Company a written acknowledgment and agreement in form and substance reasonably satisfactory to the Company that the Shares in respect of which such assignment is made shall continue to be deemed
Shares and shall be subject to all of the provisions of this Agreement relating to Shares and that such Permitted Transferee shall be bound by, and shall be a party to, this Agreement as an Investor. A Permitted Transferee to whom rights are
transferred pursuant to this Section 4.1 may not again transfer such rights to any other Permitted Transferee, other than as provided in this Section 4.1. 
 4.2. Transfers by Managers. The rights of a Manager hereunder may be assigned (but only with all related obligations as set forth below) in connection with a Transfer of Shares effected in accordance with the
terms of the Stockholders Agreement and this Agreement to a Permitted Transferee of such Manager. Without prejudice to any other or similar conditions imposed hereunder with respect to any such Transfer, no assignment permitted under the terms of
this Section 4.2 shall be effective unless the Permitted Transferee to which such assignment is 

  

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being made, if not a Stockholder, has delivered to the Company a written acknowledgment and agreement in form and substance reasonably satisfactory to the
Company that the Shares in respect of which such assignment is made shall continue to be deemed Shares and shall be subject to all of the provisions of this Agreement relating to Shares and that such Permitted Transferee shall be bound by, and shall
be a party to, this Agreement. A Permitted Transferee to whom rights are transferred pursuant to this Section 4.2 may not again transfer such rights to any other Permitted Transferee, other than as provided in this Section 4.2. 

4.3. Permitted Registration Rights Assignees. In addition to the foregoing, the rights of a holder of Registrable Securities to cause the
Company to register its Registrable Securities pursuant to Section 2.1 (solely with respect to transfers by Investors to Permitted Transferees) and 2.2 (with respect to all Holders) may be assigned (but only with all related obligations as set
forth below) in a Transfer effected in accordance with the terms of the Stockholders Agreement and this Agreement to any transferee that, together with its Affiliates, acquires (or holds) shares of Registrable Securities either (i) for
consideration of at least $10,000,000 or (ii) having a then fair market value (determined in good faith by the Board at the time of the Transfer) of at least $10,000,000 (each such transferee, a “Permitted Registration Rights
Assignee”). Without prejudice to any other or similar conditions imposed hereunder with respect to any such Transfer, no assignment permitted under the terms of this Section 4.3 shall be effective unless the Permitted Registration
Rights Assignee, if not a Stockholder, has delivered to the Company a written acknowledgment and agreement in form and substance reasonably satisfactory to the Company that such Registrable Securities in respect of which such assignment is made
shall be deemed Other Holder Shares and shall be subject to all of the provisions of this Agreement relating to Other Holder Shares and that such Permitted Registration Rights Assignee shall be bound by, and shall be an Other Holder party to, this
Agreement and the holder of Other Holder Shares hereunder. A transferee to whom rights are transferred pursuant to this Section 4.3 may not again transfer such rights to any Person, other than as provided in this Section 4.3. 

5. AMENDMENT, TERMINATION, ETC. 
 5.1. Oral
Modifications. This Agreement may not be orally amended, modified, extended or terminated, nor shall any oral waiver of any of its terms be effective. 
 5.2. Written Modifications. This Agreement may be amended, modified, extended or terminated, and the provisions hereof may be waived, only by an agreement in writing signed by the Company, Midco, Holdco and
Holders representing a majority of the Registrable Securities. Each amendment shall be binding upon each party hereto and each holder of Shares or Other Holder Shares subject hereto. In addition, each party hereto and each holder of Shares or Other
Holder Shares subject hereto may waive any right hereunder by an instrument in writing signed by such party or holder. 
 5.3. Effect of
Termination. No termination under this Agreement shall relieve any Person of liability for breach prior to termination. In the event this Agreement is terminated, each Investor shall retain the indemnification rights pursuant to Section 2.4
hereof with respect to any matter that (i) may be an indemnified liability thereunder and (ii) occurred prior to such termination. 
  

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 6. DEFINITIONS. For purposes of this Agreement: 
 6.1. Certain Matters of Construction. In addition to the definitions referred to or set forth below in this Section 6: 
  

	 	(i)	The words “hereof’, “herein”, “hereunder” and words of similar import shall refer to this Agreement as a whole and not to any particular Section or
provision of this Agreement, and reference to a particular Section of this Agreement shall include all subsections thereof; 

  

	 	(ii)	The word “including” shall mean including, without limitation; 

  

	 	(iii)	Definitions shall be equally applicable to both nouns and verbs and the singular and plural forms of the terms defined; and 

  

	 	(iv)	The masculine, feminine and neuter genders shall each include the other. 

 6.2. Definitions. The following terms shall have the following meanings: 
 “Affiliate” shall mean, with respect to any specified Person, (a) any other Person which directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with, such
specified Person (for the purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”), as used with respect to any
Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise); provided,
however, that neither the Company nor any of its subsidiaries shall be deemed an Affiliate of any of the Stockholders (and vice versa), (b) if such specified Person is an investment fund, any other investment fund the primary investment
advisor to which is the primary investment advisor to such specified Person or an Affiliate thereof and (c) if such specified Person is a natural Person, any Family Member of such natural Person. 
 “Affiliated Fund” shall mean, with respect to any specified Person, an investment fund that is an Affiliate of such Person (including
entities investing solely on behalf of the Investor or such fund) or an entity that is directly or indirectly wholly-owned by such fund or one or more of such funds (other than a portfolio company of any such fund). 
 “Agreement” shall have the meaning set forth in the Preamble. 
 “Board” shall mean the board of directors of the Company. 
 “Business Day” shall mean any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by law to be closed in the City of New York. 
 “Carlyle Investors” shall mean, as of any date, Carlyle Partners IV, L.P. and CP IV Coinvestment, L.P., and their respective Permitted
Transferees, in each case only if such Person is then a Stockholder and holds Shares. 
  

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 “Charitable Organization” shall mean a charitable organization as described by
Section 501(c)(3) of the Internal Revenue Code of 1986, as in effect from time to time. 
 “Closing” shall have the
meaning set forth in Section 1.1. 
 “Commission” shall mean the Securities and Exchange Commission. 
 “Common Stock” shall mean the common stock, $.01 par value per share, of the Company. 
 “Company” shall have the meaning set forth in the Preamble. 
 “Convertible Securities” shall mean any evidence of indebtedness, shares of stock (other than Common Stock) or other securities (other
than Options and Warrants) which are directly or indirectly convertible into or exchangeable or exercisable for shares of Common Stock. 
 “Covered Person” shall have the meaning set forth in Section 2.4.1. 
 “Exchange Act” shall
mean the Securities Exchange Act of 1934, as in effect from time to time. 
 “Family Member” shall mean, with respect to any
natural Person, (i) any lineal descendant or ancestor or sibling (by birth or adoption) of such natural Person, (ii) any spouse or former spouse of any of the foregoing, (iii) any legal representative or estate of any of the
foregoing, (iv) any trust maintained for the benefit of the foregoing and (v) any corporation, private charitable foundation or other organization controlled by the foregoing. 
 “Holdco” shall have the meaning set forth in the Preamble. 
 “Holders” shall mean the holders of Registrable Securities under this Agreement (including Other Holders). 
 “Indemnitee” shall have the meaning set forth in Section 2.4.3. 
 “Initial Public Offering” shall mean the initial Public Offering registered on Form S-1 (or any successor form under the Securities
Act). 
 “Initiating Investors” shall have the meaning set forth in Section 2.1.1. 
 “Investors” shall have the meaning set forth in the Preamble. 
 “LifeCare Holdings” shall have the meaning set forth in the Recitals. 
 “Majority Investors” shall mean, as of any date, the holders of a majority of the Shares held by the Carlyle Investors. 
 “Managers” shall have the meaning set forth in the Preamble. 
 “LifeCare” shall have the meaning set forth in the Preamble. 
  

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 “Merger Agreement” shall have the meaning set forth in the Recitals. 
 “Midco” shall have the meaning set forth in the Preamble. 
 “NASD” shall have the meaning set forth in Section 2.3.2(g). 
 “Options” shall mean any options to subscribe for, purchase or otherwise directly acquire Common Stock, other than any such option held by the Company or any right to purchase shares pursuant to the Stockholders Agreement.

 “Other Holder Shares” shall mean (a) all shares of Common Stock held by an Other Holder that were Transferred to
such Other Holder in a transaction subject to Section 4.3 or that were acquired by such Other Holder upon the exercise, conversion or exchange of any Options, Warrants or Convertible Securities that were Transferred to such Other Holder in a
transaction subject to Section 4.3 and (b) all Options, Warrants and Convertible Securities that were Transferred to such Other Holder in a transaction subject to Section 4.3, treating such Options, Warrants and Convertible Securities
as a number of Other Holder Shares equal to the maximum number of shares of Common Stock for which or into which such Options, Warrants or Convertible Securities may at the time be exercised, converted or exchanged (or which will become exercisable,
convertible or exchangeable on or prior to, or by reason of, the transaction or circumstance in connection with which the number of Other Holder Shares is to be determined). 
 “Other Holders” shall have the meaning set forth in the Preamble. 
 “Parity Shares” shall have the meaning set forth in Section 2.3.1. 
 “Permitted Registration Rights Assignee” shall have the meaning set forth in Section 4.3. 
 “Permitted Transferee” shall mean, in respect of any Investor, any Affiliated Fund of such Investor, and any other Person approved by
the Majority Investors, and, in respect of any Manager, any Family Member of such Manager, in each case to the extent such Person agrees to be bound by the terms of this Agreement and the Stockholders Agreement. In addition, any Stockholder shall be
a Permitted Transferee of the Permitted Transferees of itself. 
 “Person” shall mean any individual, partnership,
corporation, company, association, trust, joint venture, limited liability company, unincorporated organization, entity or division, or any government, governmental department or agency or political subdivision thereof. 
 “Principal Lock-Up Agreement” shall have the meaning set forth in Section 2.3.5. 
 “Pro Rata Portion” shall mean for purposes of Section 2.3, with respect to each holder of Registrable Securities or Parity Shares
requesting that such shares be registered in such registration statement, a number of such shares equal to the aggregate number of shares of Common Stock to be registered in such registration (excluding any shares to be registered for the account of
the Company) multiplied by a fraction, the numerator of which is the aggregate number of Registrable Securities and Parity Shares held by such holder, and the denominator of 

  

 -20- 

 
which is the aggregate number of Registrable Securities and Parity Shares held by all holders requesting that their Registrable Securities or Parity Shares
be registered in such registration. 
 “Public Offering” shall mean a public offering and sale of Common Stock for cash
pursuant to an effective registration statement under the Securities Act. 
 “Registrable Securities” shall mean
(a) all shares of Common Stock, (b) all shares of Common Stock issuable upon exercise, conversion or exchange of any Option, Warrant or Convertible Security and (c) all shares of Common Stock directly or indirectly issued or issuable
with respect to the securities referred to in clauses (a) or (b) above by way of stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization. As to any
particular Registrable Securities, such shares shall cease to be Registrable Securities when (i) in the case of Other Holder Shares, such securities shall have ceased to be Other Holder Shares hereunder, (ii) a registration statement with
respect to the sale of such securities shall have become effective under the Securities Act and such securities shall have been disposed of in accordance with such registration statement, (iii) such securities shall have been Transferred
pursuant to Rule 144 or Rule 145, (iv) disposition of such securities may be made by the Holder thereof under Rule 144 or 145 and the holder of such securities together with its Affiliated Funds holds no more than one percent of the shares of
the applicable class outstanding as shown by the most recent report or statement published by the Company, (v) such securities shall have been otherwise transferred to a Person that is not an Affiliate of the transferor, new certificates for
them not bearing a legend restricting further transfer shall have been delivered by the Company as part of such transfer and subsequent disposition of them shall not require registration of them under the Securities Act and such securities may be
distributed without volume limitation or other restrictions on transfer under Rule 144 or Rule 145 (including without application of paragraphs (c), (e) (f) and (h) of Rule 144), or (vi) such securities shall have ceased to be
outstanding. 
 “Registration Expenses” means any and all expenses incident to performance of or compliance with
Section 2 of this Agreement (other than underwriting discounts and commissions paid to underwriters and transfer taxes, if any), including (a) all Commission and securities exchange or NASD registration and filing fees, (b) all fees
and expenses of complying with securities or blue sky laws (including reasonable fees and disbursements of counsel for the underwriters in connection with blue sky qualifications of the Registrable Securities), (c) all printing, messenger and
delivery expenses, (d) all fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange or NASD pursuant to Section 2.3.2(g) and all rating agency fees, (e) the fees and
disbursements of counsel for the Company and of its independent public accountants, including the expenses of any special audits and/or “cold comfort” letters required by or incident to such performance and compliance, (f) the
reasonable fees and disbursements of one counsel for the Holders selected pursuant to the terms of Section 2, (g) any fees and disbursements customarily paid by the issuers of securities, and (h) expenses incurred in connection with
any road show (including the reasonable out-of-pocket expenses of the Holders). 
 “Rule 144” shall mean Rule 144 under the
Securities Act (or any successor Rule). 
 “Rule 145” shall mean Rule 145 under the Securities Act (or any successor Rule).

  

 -21- 

 “Rule 145 Transaction” shall mean a registration on Form S-4 (or any successor Form)
pursuant to Rule 145. 
 “Sale” shall mean a Transfer for value and the terms “Sell” and “Sold” shall
have correlative meanings. 
 “Securities Act” shall mean the Securities Act of 1933, as in effect from time to time.

 “Shares” shall mean (a) all shares of Common Stock held by a Stockholder, whenever issued, including all shares of
Common Stock issued upon the exercise, conversion or exchange of any Options, Warrants or Convertible Securities and (b) all Options, Warrants and Convertible Securities held by a Stockholder (treating such Options, Warrants and Convertible
Securities as a number of Shares equal to the number of Shares issuable upon exercise or conversion of such Options, Warrants and Convertible Securities for all purposes of this Agreement except as otherwise specifically set forth herein).

 “Stockholders” shall have the meaning set forth in the Preamble. 
 “Stockholders Agreement” shall have the meaning set forth in the Recitals. 
 “Transfer” shall mean any sale, pledge, assignment, encumbrance or other transfer or disposition of any Shares or Other Holder Shares to
any other Person, whether directly, indirectly, voluntarily, involuntarily, by operation of law, pursuant to judicial process or otherwise. 
 “Warrants” shall mean any warrants to subscribe for, purchase or otherwise directly acquire Common Stock. 
 7. MISCELLANEOUS.

 7.1. Authority: Effect. Each party hereto represents and warrants to and agrees with each other party that the execution and
delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized on behalf of such party and do not violate any agreement or other instrument applicable to such party or by which its assets are bound.
This Agreement does not, and shall not be construed to, give rise to the creation of a partnership among any of the parties hereto, or to constitute any of such parties members of a joint venture or other association. 
 7.2. Notices. All notices, requests, demands, claims and other communications required or permitted to be delivered, given or otherwise provided
under this Agreement must be in writing and must be delivered, given or otherwise provided: 
 (a) by hand (in which case, it
will be effective upon delivery); 
 (b) by facsimile (in which case, it will be effective upon receipt of confirmation of
good transmission); or 
  

 -22- 

 (c) by overnight delivery by a nationally recognized courier service (in which case, it
will be effective on the Business Day after being deposited with such courier service); 
 in each case, to the address (or facsimile number) listed below:

 If to the Company, Midco, Holdco and LifeCare, to it: 
  

	
	 c/o LifeCare Holdings, Inc.

	 4460 Tennyson Parkway

	 Plano, TX 75024

	 Facsimile: (469) 241-2199

	 Attention: Legal Department

 with copies to: 
  

	
	 Ropes & Gray LLP

	 One International Place

	 Boston, Massachusetts 02110

	 Facsimile: (617) 951-7050

	 Attention:   William A. Knowlton
 R. Newcomb Stillwell
 Craig E. Marcus

 If to a Carlyle Investor, to it: 
  

	
	 c/o The Carlyle Group

	 520 Madison Avenue, 42nd
Floor

	 New York, New York 10022

	 Facsimile: (212) 381-4901

	 Attention:   W. Robert Dahl

	 Walter S. Jin

	 Eric Edell

 with copies to: 
  

	
	 Ropes & Gray LLP

	 One International Place

	 Boston, Massachusetts 02110

	 Facsimile: (617) 951-7050

	 Attention:   William A. Knowlton

	 R. Newcomb Stillwell

	 Craig E. Marcus

 If to any Manager or Other Holder, to it at the address set forth on its signature page hereto.

  

 -23- 

 Notice to the holder of record of any shares of capital stock shall be deemed to be notice to the holder
of such shares for all purposes hereof. Any of the above addresses may be changed at any time by notice given as provided above; provided, however, that any such notice of change of address shall be effective only upon receipt. 
 7.3. Binding Effect, Etc. Except for restrictions on the Transfer of Shares set forth in other written agreements, plans or documents, and except
for other written agreements dated on or about the date of this Agreement, this Agreement constitutes the entire agreement of the parties with respect to its subject matter, supersedes all prior or contemporaneous oral or written agreements or
discussions with respect to such subject matter, and shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, representatives, successors and permitted assigns. Except as otherwise expressly provided herein,
no Investor or other party hereto may assign any of its respective rights or delegate any of its respective obligations under this Agreement without the prior written consent of the other parties hereto, and any attempted assignment or delegation in
violation of the foregoing shall be null and void. 
 7.4. Descriptive Heading. The descriptive headings of this Agreement are for
convenience of reference only, are not to be considered a part hereof and shall not be construed to define or limit any of the terms or provisions hereof. 
 7.5. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one instrument. 
 7.6. Severability. In the event that any provision hereof would, under applicable law, be invalid or unenforceable in any respect, such provision
shall be construed by modifying or limiting it so as to be valid and enforceable to the maximum extent compatible with, and possible under, applicable law. The provisions hereof are severable, and in the event any provision hereof should be held
invalid or unenforceable in any respect, it shall not invalidate, render unenforceable or otherwise affect any other provision hereof. 
 7.7. No Recourse. Notwithstanding anything that may be expressed or implied in this Agreement, each of the Company, Midco, Holdco and LifeCare and each Holder (including Other Holders) covenant, agree and acknowledge that no recourse
under this Agreement shall be had against any current or future director, officer, employee, agent, general or limited partner, stockholder or member of the Company, Midco, Holdco, LifeCare or any Investor or of any Affiliate or assignee thereof,
whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any statute, regulation or other applicable law, it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to,
be imposed on or otherwise be incurred by any current or future officer, employee, agent, general or limited partner, stockholder or member of the Company, Midco, Holdco, LifeCare or any Investor or of any Affiliate or assignee thereof for any
obligation to or of any Investor under this Agreement for any claim based on, in respect of or by reason of such obligations or their creation; provided, however, that nothing in this Section 7.7 shall relieve the Company, Midco, Holdco,
LifeCare or any Investor of its obligations hereunder. 
  

 -24- 

 7.8. Aggregation of Shares. All Shares held by an Investor and its Affiliates shall be aggregated
together for purposes of determining the availability of any rights under Section 2. Within the Carlyle Investors, the Carlyle Investors may allocate the ability to exercise any rights under this Agreement in any manner that the Carlyle
Investors (acting by a majority of the Shares held by the Carlyle Investors) sees fit. 
 7.9. Obligations of the Company, Midco, Holdco
and LifeCare. Each of the Company, Midco, Holdco and LifeCare shall be jointly and severally liable for any payment obligation of any of the Company, Midco, Holdco and LifeCare pursuant to this Agreement. 
 8. GOVERNING LAW. 
 8.1. Governing Law. This
Agreement and all claims arising out of or based upon this Agreement or relating to the subject matter hereof shall be governed by and construed in accordance with the domestic substantive laws of the State of New York without giving effect to any
choice or conflict of laws provision or rule that would cause the application of the domestic substantive laws of any other jurisdiction. 
 8.2. Consent to Jurisdiction. Each party to this Agreement, by its execution hereof, (a) hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of New York, County of New
York for the purpose of any action, claim, cause of action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation arising out of or based upon this Agreement or relating to the subject matter hereof, (b) hereby waives to
the extent not prohibited by applicable law, and agrees not to assert, and agrees not to allow any of its subsidiaries to assert, by way of motion, as a defense or otherwise, in any such action, any claim that it is not subject personally to the
jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that any such proceeding brought in one of the above-named courts is improper, or that this Agreement or the subject matter hereof or thereof
may not be enforced in or by such court and (c) hereby agrees not to commence or maintain any action, claim, cause of action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation arising out of or based upon this
Agreement or relating to the subject matter hereof or thereof other than before one of the above-named courts nor to make any motion or take any other action seeking or intending to cause the transfer or removal of any such action, claim, cause of
action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation to any court other than one of the above-named courts whether on the grounds of inconvenient forum or otherwise. Notwithstanding the foregoing, to the extent that
any party hereto is or becomes a party in any litigation in connection with which it may assert indemnification rights set forth in this agreement, the court in which such litigation is being heard shall be deemed to be included in clause
(a) above. Notwithstanding the foregoing, any party to this Agreement may commence and maintain an action to enforce a judgment of any of the above-named courts in any court of competent jurisdiction. Each party hereto hereby consents to
service of process in any such proceeding in any manner permitted by New York law, and agrees that service of process by registered or certified mail, return receipt requested, at its address specified pursuant to Section 7.2 hereof is
reasonably calculated to give actual notice. 
 8.3. WAIVER OF JURY TRIAL. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT
BE WAIVED, EACH PARTY HERETO HEREBY 

  

 -25- 

 
WAIVES AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE
OR ACTION, CLAIM, CAUSE OF ACTION OR SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY, PROCEEDING OR INVESTIGATION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER HEREOF OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE
TRANSACTIONS CONTEMPLATED HEREBY, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING. EACH PARTY HERETO ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTIES HERETO THAT THIS SECTION 8.3 CONSTITUTES A MATERIAL INDUCEMENT UPON WHICH THEY
ARE RELYING AND WILL RELY IN ENTERING INTO THIS AGREEMENT. ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 8.3 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY
JURY. 
 8.4. Exercise of Rights and Remedies. No delay of or omission in the exercise of any right, power or remedy accruing to any
party as a result of any breach or default by any other party under this Agreement shall impair any such right, power or remedy, nor shall it be construed as a waiver of or acquiescence in any such breach or default, or of any similar breach or
default occurring later; nor shall any such delay, omission nor waiver of any single breach or default be deemed a waiver of any other breach or default occurring before or after that waiver. 
 [Signature pages follow] 
  

 -26- 

 IN WITNESS WHEREOF, each of the undersigned has duly executed this Agreement (or caused this Agreement to
be executed on its behalf by its officer or representative thereunto duly authorized) under seal as of the date first above written. 
  

					
	LCI HOLDING COMPANY, INC.
	LCI INTERMEDIATE HOLDCO, INC.
	LCI HOLDCO, LLC
	RAINIER ACQUISITION CORP.
		
	 By:
	 	 /S/ W. EARL REED, III

		 	 Name:
	 	 W. Earl Reed, III

		 	 Title:
	 	 Vice President

									
	 THE INVESTORS:
	 	 	 	CARLYLE PARTNERS IV, L.P.
	 	 	 	 	 	 	 By:
	 	 TC Group IV, L.P., its general partner

	 	 	 	 	 	 	 By:
	 	 TC Group IV, L.L.C., its general partner

	 	 	 	 	 	 	 By:
	 	 TC Group, L.L.C., its sole member

	 	 	 	 	 	 	 By:
	 	 TCG Holdings, L.L.C., its managing member

					
	 	 	 	 	 	 	 By:
	 	 [Signature Appears Here]

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 
			
	 	 	 	 	CP IV COINVESTMENT, L.P.
	 	 	 	 	 	 	 By:
	 	 TC Group IV, L.P., its general partner

	 	 	 	 	 	 	 By:
	 	 TC Group IV, L.L.C., its general partner

	 	 	 	 	 	 	 By:
	 	 TC Group, L.L.C., its sole member

	 	 	 	 	 	 	 By:
	 	 TCG Holdings, L.L.C., its managing member

					
	 	 	 	 	 	 	 By:
	 	 [Signature Appears Here]

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 

 THE MANAGERS: 
  

	
	
	 /S/ W. EARL REED, III

	 Name: W. Earl Reed

	 Address: 1667 Spring Drive
                 Louisville, KY
40205-1322

	
	 /S/ RYAN D. BURKLOW

	 Name: Bryan D. Burklow

	 Address: 392 Sunny Acres Drive
                 Cincinnati, OH
43255

	
	 /S/ JILL L. FORCE

	 Name: Jill L. Force

	 Address: 1732 Spring Drive
                 Louisville, KY
40205-1325

	
	 /S/ WAYNE T. SMITH

	 Name: Wayne T. Smith

	 Address: c/o W.T. Smith’s Office
                 4175 Westport Road – Suite
102
                 Louisville, KY
40207

 The undersigned, as successor by merger to Rainier Acquisition Corp., hereby acknowledges and agrees that it is a party
to and bound by this Agreement as fully as if it had been the original signatory hereto in the place and stead of Rainier Acquisition Corp. 
  

									
	 LIFECARE HOLDINGS:
	 		 	LIFECARE HOLDINGS, INC.
					
		 		 		 	 By:
	 	 /S/ W. EARL REED, III

		 		 		 	 Name: W. Earl Reed, III

		 		 		 	 Title: PresidentManagement Agreement dated as of August 11, 2005

 Exhibit 10.9 
  
 MANAGEMENT AGREEMENT 
  
 This Management Agreement (this “Agreement”) is entered into as of August 11, 2005 by and among Rainier Acquisition Corp., a
Delaware corporation (“Merger Sub”), LCI Holdco LLC, a Delaware limited liability company (“Holdco”), LCI Intermediate Holdco, Inc., a Delaware corporation (“Intermediate”), LCI Holding Company,
Inc., a Delaware corporation (“Holdings” and, together with the Merger Sub, Holdco and Intermediate, and with LifeCare Holdings, Inc., a Delaware corporation (“LifeCare Holdings” or the “Company”) as successor by
merger to Merger Sub, the “LifeCare Corporations”), and TC Group IV, L.L.C., a Delaware limited liability company (the “Manager”). 
  
 RECITALS 
  
 WHEREAS, Holdings, Intermediate, Holdco and Merger Sub have been formed for the purpose of acquiring (the “Acquisition”) all of the
outstanding shares of capital stock of LifeCare Holdings, all on the terms and subject to the conditions of that certain Agreement and Plan of Merger dated as of July 19, 2005 (as amended, restated, supplemented or otherwise modified,
the “Merger Agreement”) among LifeCare Holdings, Merger Sub, Holdco and the Representative (as defined in the Merger Agreement); 
  
 WHEREAS, pursuant to the Merger Agreement, Merger Sub will be merged with and into LifeCare Holdings with LifeCare Holdings surviving as a wholly-owned
subsidiary of Holdco; 
  
 WHEREAS, to enable Holdings,
Intermediate, Holdco and Merger Sub to engage in the Acquisition and related transactions, the Manager provided financial and structural advice and analysis as well as assistance with due diligence investigations and negotiations (the
“Financial Advisory Services”); and 
  
 WHEREAS,
the LifeCare Corporations want to retain the Manager to provide certain management and advisory services to the LifeCare Corporations, and the Manager is willing to provide such services on the terms set forth below. 
  
 AGREEMENT 
  
 NOW THEREFORE, in consideration of the mutual covenants contained herein, and for 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. Services. The Manager hereby agrees that, during the Term (as defined below), it will provide the following consulting and management advisory
services to the LifeCare Corporations as requested from time to time by the Boards of Directors of the LifeCare Corporations: 
  
 (a) advice in connection with the negotiation and consummation of agreements, contracts, documents and instruments necessary to provide
the LifeCare Corporations with financing on terms and conditions satisfactory to the LifeCare Corporations; 

 (b) financial, managerial and operational advice in connection with the Company’s
day-to-day operations, including, without limitation, advice with respect to the development and implementation of strategies for improving the operating, marketing and financial performance of the Company and its subsidiaries; 
  
 (c) advice in connection with financing, acquisition,
disposition, merger, combination and change of control transactions involving any of the LifeCare Corporations or any of their respective direct or indirect subsidiaries or affiliates (however structured); and 
  
 (d) such other services (which may include financial and
strategic planning and analysis, consulting services, human resources and executive recruitment services and other services) as the Manager and the LifeCare Corporations may from time to time agree in writing. 
  
 The Manager shall devote such time and efforts to the performance of services
contemplated hereby as the Manager deems reasonably necessary or appropriate; provided, however, that no minimum number of hours is required to be devoted by the Manager on a weekly, monthly, annual or other basis. The LifeCare Corporations
acknowledge that the Manager’s services are not exclusive to any of the LifeCare Corporations and that the Manager will render similar services to other persons and entities. The Manager and the LifeCare Corporations understand that the
LifeCare Corporations may, at times, engage one or more investment bankers or financial advisors to provide services in addition to, but not in lieu of, services provided by the Manager under this Agreement (including those services described in
Section 2(c)). In providing services to the LifeCare Corporations, the Manager will act as an independent contractor, and it is expressly understood and agreed that this Agreement is not intended to create, and does not create, any partnership,
agency, joint venture or similar relationship and that no party has the right or ability to contract for or on behalf of any other party or to effect any transaction for the account of any other party. 
  
 2. Payment of Fees. 
  
 (a) The LifeCare Corporations, jointly and severally, will
pay to the Manager (or such affiliates as it may designate), in consideration of the Manager providing the Financial Advisory Services, an aggregate transaction fee (the “Transaction Fee”) in the amount of $6,000,000, such fee being
payable at the closing of the Acquisition. 
  
 (b) During the Term, the LifeCare Corporations, jointly and severally, will pay to the Manager (or such affiliates as it may designate), an aggregate annual periodic fee (the “Periodic Fee”) of $500,000 in exchange for the
ongoing services provided by the Manager under this Agreement, such fee being payable by the Company quarterly in advance on or before the start of each calendar quarter; provided, however, that the Periodic Fee for the period from the
date hereof through 

  

 -2- 

 
September 30, 2005 shall be prorated based upon the number of days in such period and shall paid at the closing of the Acquisition. The Periodic Fee shall be
non-refundable. 
  
 (c) During the Term, the
Manager will advise the LifeCare Corporations in connection with financing, acquisition, disposition, merger, combination and change of control transactions involving any of the LifeCare Corporations or any of their respective direct or indirect
subsidiaries or affiliates (however structured), and the LifeCare Corporations, jointly and severally, will pay to the Manager (or such affiliates as it may designate) a fee equal to one percent (1%) of the gross purchase price of the
transaction (including all liabilities assumed or otherwise included in the transaction) (the “Subsequent Fee”) in connection with each such transaction (which fee shall be in addition to, and not in lieu of, the full payment of
fees in clauses (a) and (b) above), such fee to be due and payable for the foregoing services at the closing of such transaction; provided, that after the Term the LifeCare Corporations, jointly and severally, will pay to the
Manager (or such affiliates as it may designate) the Subsequent Fee in connection with each transaction that (a) was contemplated at the time of termination of the Agreement and (b) is consummated after such termination. 
  
 Each payment made pursuant to this Section 2 shall be paid by wire transfer of
immediately available federal funds to the account specified on Schedule 1 hereto, or to such other account(s) as the Manager may specify to the Company in writing prior to such payment. 
  
 3. Term. This Agreement shall continue in full force and effect until
December 31, 2015 (as extended or terminated as provided below, the “Term”); provided that this Agreement shall be automatically extended each December 31 for an additional year unless the LifeCare Corporations or
the Manager provides written notice of its desire not to automatically extend the term of this Agreement to the other parties hereto at least 90 days prior to such December 31; provided, however, that the Manager may cause this Agreement
to terminate at any time. In the event of a termination of this Agreement, the LifeCare Corporations, jointly and severally, shall pay the Manager (or such affiliates as it may designate) (i) all unpaid Periodic Fees (pursuant to
Section 2(b) above), Subsequent Fees (pursuant to Section 2(c) above) and expenses (pursuant to Section 4(a) below) due with respect to periods prior to the date of termination plus (ii) an amount equal to the Periodic Fees that
would have been payable with respect to the period from the date of termination until the expiration date in effect immediately prior to such termination. Sections 2(c), 3, 4 and 5 of this Agreement shall survive any termination of this Agreement.

  
 4. Expenses; Indemnification. 
  
 (a) Expenses. The LifeCare Corporations, jointly and
severally, will pay on demand all Reimbursable Expenses. As used herein, “Reimbursable Expenses” means all (i) expenses incurred or accrued prior to the date on which the transactions contemplated by the Merger Agreement are
consummated (the “Closing Date”) by the Manager or its affiliates in connection with this Agreement, the Acquisition or any related transactions, consisting of their respective out-of-pocket expenses and the fees and charges of
(A) Ropes & Gray LLP, (B) PricewaterhouseCoopers LLP, (C) local and foreign counsel, and (D) other due diligence advisors, (ii) reasonable out-of-pocket expenses incurred from and after the Closing Date relating to
the Manager’s 

  

 -3- 

 
affiliated funds’ investment in, the operations of, or the services provided by the Manager to, the LifeCare Corporations or any of its affiliates from
time to time, (iii) reasonable out-of-pocket legal expenses incurred by the Manager or its affiliates from and after the Closing Date in connection with the enforcement, preservation or analysis of rights or taking of actions under this
Agreement, the LifeCare Corporations’ certificates of incorporation or bylaws or other organizational documents, the Subscription Agreement, the Stockholders Agreement or the Registration Rights Agreement, and (iv) expenses incurred from
and after the Closing Date by the Manager or any of its affiliates which the Manager determines is properly allocable to the LifeCare Corporations under this Agreement. 
  
 As used in this Agreement, “Subscription Agreement” means the Investor Subscription Agreement dated
August 11, 2005 among Holdings, Intermediate, Holdco, Merger Sub and the Subscribers (as defined in the Investor Subscription Agreement), “Stockholders Agreement” means the Stockholders Agreement dated August 11, 2005
among Holdings, Intermediate, Holdco, Merger Sub and certain stockholders of Holdings, and “Registration Rights Agreement” means the Registration Rights Agreement dated August 11, 2005 among Holdings, Intermediate, Holdco,
Merger Sub and certain stockholders of Holdings. 
  
 (b) Indemnity and Liability. The LifeCare Corporations, jointly and severally, will indemnify, exonerate and hold the Manager, and each of its partners, shareholders, members, affiliates (other than Holdings and its subsidiaries),
directors, officers, fiduciaries, managers, controlling Persons, employees and agents and each of the partners, shareholders, members, affiliates (other than Holdings and its subsidiaries), directors, officers, fiduciaries, managers, controlling
Persons, employees and agents of each of the foregoing (collectively, the “Indemnitees”) free and harmless from and against any and all actions, causes of action, suits, claims, liabilities, losses, damages and costs and
out-of-pocket expenses in connection therewith (including reasonable attorneys’ fees and expenses) incurred by the Indemnitees or any of them before or after the date of this Agreement (collectively, the “Indemnified
Liabilities”), as a result of, arising out of, or in any way relating to (i) this Agreement, the Stockholders Agreement, the Registration Rights Agreement, the Acquisition, any transaction to which a LifeCare Corporation is a party or
any other circumstances with respect to a LifeCare Corporation or (ii) operations of, or services provided by the Manager to, the LifeCare Corporations or any of their respective affiliates from time to time (including but not limited to any
indemnification obligations assumed or incurred by any Indemnitee to or on behalf of the Representative (as defined in the Merger Agreement) or any former securityholder of LifeCare Holdings, the debt financers of the LifeCare Corporations or any of
their respective accountants or other representatives, agents or affiliates); provided that the foregoing indemnification rights shall not be available to the extent that any such Indemnified Liabilities arose on account of such
Indemnitee’s gross negligence or willful misconduct, and further provided that, if and to the extent that the foregoing undertaking may be unavailable or unenforceable for any reason, the LifeCare Corporations hereby agree to make the
maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible 

  

 -4- 

 
under applicable law. For purposes of this Section 4(b), none of the circumstances described in the limitations contained in the two provisos in the
immediately preceding sentence shall be deemed to apply absent a final non-appealable judgment of a court of competent jurisdiction to such effect, in which case to the extent any such limitation is so determined to apply to any Indemnitee as to any
previously advanced indemnity payments made by the LifeCare Corporations, then such payments shall be promptly repaid by such Indemnitee to the LifeCare Corporations. The rights of any Indemnitee to indemnification hereunder will be in addition to
any other rights any such person may have under any other agreement or instrument referenced above or any other agreement or instrument to which such Indemnitee is or becomes a party or is or otherwise becomes a beneficiary or under law or
regulation. None of the Indemnitees shall in any event be liable to the LifeCare Corporations or any of their respective affiliates for any act or omission suffered or taken by such Indemnitee that does not constitute gross negligence or willful
misconduct. If the Indemnitees are similarly situated with respect to their interests in connection with a matter that may be an Indemnified Liability and such Indemnified Liability is not based on a Third-Party Claim, the Indemnitees may enforce
their rights pursuant to this Section 4(b) with respect to such matter only with the consent of the Manager. In this Agreement, “Person” means any individual or corporation, association, partnership, limited liability company,
joint venture, joint stock or other company, business trust, trust, organization, or other entity of any kind. A “Third-Party Claim” means any (i) claim brought by a Person other than a LifeCare Corporation, the Manager or any
Indemnitee and (ii) any derivative claim brought in the name of a LifeCare Corporation that is initiated by a Person other than the Manager or any Indemnitee related to the Manager. 
  
 5. Disclaimer and Limitation of Liability; Opportunities. 
  
 (a) Disclaimer; Standard of Care. The Manager make no
representations or warranties, express or implied, in respect of the services to be provided by the Manager hereunder. In no event shall the Manager be liable to the LifeCare Corporations or any of their respective affiliates for any act, alleged
act, omission or alleged omission that does not constitute gross negligence or willful misconduct of the Manager as determined by a final, non-appealable determination of a court of competent jurisdiction. 
  
 (b) Freedom to Pursue Opportunities. In recognition
that the Manager and its Indemnitees currently have, and will in the future have or will consider acquiring, investments in numerous companies with respect to which the Manager or its Indemnitees may serve as an advisor, a director or in some other
capacity, and in recognition that the Manager and its Indemnitees have myriad duties to various investors and partners, and in anticipation that the LifeCare Corporations, on the one hand, and the Manager (or one or more affiliates, associated
investment funds or portfolio companies), on the other hand, may engage in the same or similar activities or lines of business and have an interest in the same areas of corporate opportunities, and in recognition of the benefits to be derived by the
LifeCare Corporations hereunder and in recognition of the difficulties which may confront any advisor who 

  

 -5- 

 
desires and endeavors fully to satisfy such advisor’s duties in determining the full scope of such duties in any particular situation, the provisions of
this Section 5(b) are set forth to regulate, define and guide the conduct of certain affairs of the LifeCare Corporations as they may involve the Manager and its Indemnitees. Except as the Manager may otherwise agree in writing after the date
hereof: 
  
 (i) The Manager and its Indemnitees
shall have the right: (A) to directly or indirectly engage in any business (including, without limitation, any business activities or lines of business that are the same as or similar to those pursued by, or competitive with, the Company or any
of its subsidiaries), (B) to directly or indirectly do business with any client or customer of the Company or any of its subsidiaries, (C) to take any other action that the Manager believes in good faith is necessary to or appropriate to
fulfill its obligations as described in the first sentence of this Section 5(b), and (D) not to present potential transactions, matters or business opportunities to the LifeCare Corporations or any of their respective subsidiaries, and to
pursue, directly or indirectly, any such opportunity for itself, and to direct any such opportunity to another person. 
  
 (ii) The Manager and its Indemnitees shall have no duty (contractual or otherwise) to communicate or present any corporate opportunities
to the LifeCare Corporations or any of their respective affiliates or to refrain from any actions specified in Section 5(b)(i), and the LifeCare Corporations, on their own behalf and on behalf of their respective affiliates, hereby renounce and
waive any right to require the Manager or any of its Indemnitees to act in a manner inconsistent with the provisions of this Section 5(b). 
  
 (iii) Neither the Manager nor any of its Indemnitees shall be liable to the LifeCare Corporations or any of their respective affiliates
for breach of any duty (contractual or otherwise) by reason of any activities or omissions of the types referred to in this Section 5(b) or of any such person’s participation therein. 
  
 (c) Limitation of Liability. In no event will
the Manager or any of its Indemnitees be liable to the LifeCare Corporations or any of their respective affiliates for any indirect, special, incidental or consequential damages, including, without limitation, lost profits or savings, whether or not
such damages are foreseeable, or for any third party claims (whether based in contract, tort or otherwise), relating to the services to be provided by the Manager hereunder. 
  
 (d) Certain Limits. Notwithstanding the foregoing or any other provision of this Agreement, nothing
in this Agreement shall limit or modify any duty or liability of any Indemnitee to the Manager or to any Affiliate (other than Holdings and its subsidiaries) of the Manager. 
  
 6. Assignment, etc. Except as provided below, none of the parties hereto shall have the right to assign this
Agreement without the prior written consent of each of the other parties. Notwithstanding the foregoing, the Manager may assign all or part of its rights and obligations hereunder to any of its affiliates which provides services similar to those
called for by this 

  

 -6- 

 
Agreement, in which event the Manager shall be released of all or a part of its rights to fees under Section 2 and reimbursement of expenses under
Section 4(a) and all or a part of its obligations hereunder. This Agreement shall bind and inure solely to the benefit of the parties hereto and their respective successors and permitted assigns, provided, however, that the
provisions hereof for the benefit of Indemnitees of the Manager shall inure to the benefit of and be enforceable by such Indemnitees and their successors. 
  
 7. Amendments and Waivers. No amendment or waiver of any term, provision or condition of this Agreement shall be effective, unless in writing and
executed by the Manager and the LifeCare Corporations; provided, that the Manager may waive any portion of any fee to which it is entitled pursuant to this Agreement, and, unless otherwise directed by the Manager, such waived portion shall
revert to the LifeCare Corporations. No waiver on any one occasion shall extend to or effect or be construed as a waiver of any right or remedy on any future occasion. No course of dealing of any person nor any delay or omission in exercising any
right or remedy shall constitute an amendment of this Agreement or a waiver of any right or remedy of any party hereto. 
  
 8. Governing Law; Jurisdiction. 
  
 (a) Governing Law. This Agreement and all claims arising out of or based upon this Agreement or relating to the subject matter
hereof shall be governed by and construed in accordance with the domestic substantive laws of the State of New York without giving effect to any choice or conflict of laws provision or rule that would cause the application of the domestic
substantive laws of any other jurisdiction. 
  
 (b) Consent to Jurisdiction. Each party to this Agreement, by its execution hereof, (i) hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of New York, County of New
York for the purpose of any action, claim, cause of action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation arising out of or based upon this Agreement or relating to the subject matter hereof, (ii) hereby waives
to the extent not prohibited by applicable law, and agrees not to assert, and agrees not to allow any of its subsidiaries to assert, by way of motion, as a defense or otherwise, in any such action, any claim that it is not subject personally to the
jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that any such proceeding brought in one of the above-named courts is improper, or that this Agreement or the subject matter hereof or thereof
may not be enforced in or by such court and (iii) hereby agrees not to commence or maintain any action, claim, cause of action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation arising out of or based upon this
Agreement or relating to the subject matter hereof or thereof other than before one of the above-named courts nor to make any motion or take any other action seeking or intending to cause the transfer or removal of any such action, claim, cause of
action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation to any court other than one of the above-named courts whether on the grounds of inconvenient forum or otherwise. Notwithstanding the foregoing, to the extent that
any party hereto is or becomes a party in any litigation in connection with which it may assert indemnification rights set forth in this agreement, the court in 

  

 -7- 

 
which such litigation is being heard shall be deemed to be included in clause (i) above. Notwithstanding the foregoing, any party to this Agreement may
commence and maintain an action to enforce a judgment of any of the above-named courts in any court of competent jurisdiction. Each party hereto hereby consents to service of process in any such proceeding in any manner permitted by New York law,
and agrees that service of process by registered or certified mail, return receipt requested, at its address specified pursuant to Section 10 hereof is reasonably calculated to give actual notice. 
  
 (c) WAIVER OF JURY TRIAL. TO THE EXTENT NOT
PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, EACH PARTY HERETO HEREBY WAIVES AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE OR ACTION,
CLAIM, CAUSE OF ACTION OR SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY, PROCEEDING OR INVESTIGATION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER HEREOF OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE TRANSACTIONS
CONTEMPLATED HEREBY, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING. EACH PARTY HERETO ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTIES HERETO THAT THIS SECTION 8(c) CONSTITUTES A MATERIAL INDUCEMENT UPON WHICH THEY ARE RELYING
AND WILL RELY IN ENTERING INTO THIS AGREEMENT. ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 8(c) WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

  
 (d) Exercise of Rights and Remedies.
No delay of or omission in the exercise of any right, power or remedy accruing to any party as a result of any breach or default by any other party under this Agreement shall impair any such right, power or remedy, nor shall it be construed as a
waiver of or acquiescence in any such breach or default, or of any similar breach or default occurring later; nor shall any such delay, omission nor waiver of any single breach or default be deemed a waiver of any other breach or default occurring
before or after that waiver. 
  
 9. Entire Agreement. This
Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes any and all prior discussions, negotiations, proposals, undertakings, understandings and agreements, whether written or
oral, with respect thereto. 
  
 10. Notice. All notices,
requests, demands, claims and other communications required or permitted to be delivered, given or otherwise provided under this Agreement must be in writing and must be delivered, given or otherwise provided: 
  
 (a) by hand (in which case, it will be effective upon
delivery); 
  

 -8- 

 (b) by facsimile (in which case, it will be effective upon receipt of confirmation of
good transmission); or 
  
 (c) by overnight
delivery by a nationally recognized courier service (in which case, it will be effective on the business day after being deposited with such courier service); 
  

in each case, to the address (or facsimile number) listed below: 
  
 If to a LifeCare Corporation, to it at: 
  
 LifeCare Holdings, Inc. 
 5560 Tennyson
Parkway 
 Plano, TX 75024 
 Facsimile: (469) 241-2199 
 Attention: Legal Department 
  
 with a copy to: 
  
 Ropes & Gray LLP 
 One International
Place 
 Boston, Massachusetts 02110 
 Facsimile: (617) 951-7050 

			
	 Attention:
	 	William A. Knowlton
	 	 	R. Newcomb Stillwell
	 	 	Craig E. Marcus

  
 If to the Manager, to
it at: 
  
 TC Group IV, L.L.C. 
 c/o The Carlyle Group 
 520 Madison Avenue,
42nd Floor 
 New York, New York 10022 
 Facsimile: (212) 381-4901 

			
	 Attention:
	 	W. Robert Dahl
	 	 	Walter S. Jin
	 	 	Eric Edell

  
 with a copy to:

  
 TC Group IV, L.L.C. 
 c/o The Carlyle Group 
 1001 Pennsylvania
Avenue, N.W. 
 Washington, DC 20004 
 Facsimile: (202) 347-1818 

			
	 Attention:
	 	John Harris
	 	 	Jeremy Anderson

  

 -9- 

 and a copy to: 
  

Ropes & Gray LLP 
 One
International Place 
 Boston, Massachusetts 02110 
 Facsimile: (617) 951-7050 

			
	 Attention:
	 	William A. Knowlton
	 	 	R. Newcomb Stillwell
	 	 	Craig E. Marcus

  
 Each of the parties
to this Agreement may specify a different address or facsimile number by giving notice in accordance with this Section 10 to each of the other parties hereto; provided, however, that any such notice of change of address shall be effective only
upon receipt. 
  
 11. Severability. If in any proceedings a
court shall refuse to enforce any provision of this Agreement, then such unenforceable provision shall be deemed eliminated from this Agreement for the purpose of such proceedings to the extent necessary to permit the remaining provisions to be
enforced. To the full extent, however, that the provisions of any applicable law may be waived, they are hereby waived to the end that this Agreement be deemed to be valid and binding agreement enforceable in accordance with its terms, and in the
event that any provision hereof shall be found to be invalid or unenforceable, such provision shall be construed by limiting it so as to be valid and enforceable to the maximum extent consistent with and possible under applicable law. 
  
 12. Counterparts. This Agreement may be executed in any number of
counterparts and by each of the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which together shall constitute one and the same agreement. 
  
 [Remainder of Page Intentionally Left Blank] 
  

 -10- 

 IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf as
an instrument under seal as of the date first above written by its officer or representative thereunto duly authorized. 
  

									
	 HOLDINGS:
	 	 	 	LCI HOLDING COMPANY, INC.
					
	 	 	 	 	 	 	 By:
	 	 /S/ W. EARL REED, III

	 	 	 	 	 	 	 Name:
	 	 W. Earl Reed, III

	 	 	 	 	 	 	 Title:
	 	 
			
	 INTERMEDIATE:
	 	 	 	LCI INTERMEDIATE HOLDCO, INC.
					
	 	 	 	 	 	 	 By:
	 	 /S/ W. EARL REED, III

	 	 	 	 	 	 	 Name:
	 	 W. Earl Reed, III

	 	 	 	 	 	 	 Title:
	 	 
			
	 HOLDCO:
	 	 	 	LCI HOLDCO, LLC
					
	 	 	 	 	 	 	 By:
	 	 /S/ W. EARL REED, III

	 	 	 	 	 	 	 Name:
	 	 W. Earl Reed, III

	 	 	 	 	 	 	 Title:
	 	 
			
	 MERGER SUB:
	 	 	 	RAINIER ACQUISITION CORP.
					
	 	 	 	 	 	 	 By:
	 	 /S/ W. EARL REED, III

	 	 	 	 	 	 	 Name:
	 	 W. Earl Reed, III

	 	 	 	 	 	 	 Title:
	 	 
			
	 THE MANAGER:
	 	 	 	TC GROUP IV, L.L.C.
					
	 	 	 	 	 	 	 BY:
	 	 TC Group, L.L.C.,

	 	 	 	 	 	 	 	 	 its sole member

					
	 	 	 	 	 	 	 BY:
	 	 TCG Holdings, L.L.C.,

	 	 	 	 	 	 	 	 	 its managing member

					
	 	 	 	 	 	 	 By:
	 	 /S/ WALTER JIN

	 	 	 	 	 	 	 Name:
	 	 Walter Jin

	 	 	 	 	 	 	 Title:
	 	 

 The undersigned, as successor by merger to Rainier Acquisition Corp., hereby acknowledges and agrees that it is a party
to and bound by this Agreement as fully as if it had been the original signatory hereto in the place and stead of Rainier Acquisition Corp. 
  

									
	 THE COMPANY:
	 	 	 	LIFECARE HOLDINGS, INC.
					
	 	 	 	 	 	 	 By:
	 	 /S/ W. EARL REED III

	 	 	 	 	 	 	 Name:
	 	 W. Earl Reed, III

	 	 	 	 	 	 	 Title:

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