Document:

Exhibit 10.2

 

	
        

         
	WARRANT	 
	NO. BTB____	 	Shares
	
          
	 	

WARRANT TO PURCHASE COMMON STOCK

 

VOID AFTER 5:30 P.M., EASTERN

TIME, ON THE EXPIRATION DATE

 

THE SECURITIES FOR WHICH THIS SECURITY
IS EXERCISABLE HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT
TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE
PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

FOR VALUE RECEIVED,
Cell Source, Inc. a Nevada corporation (the “Company”), hereby agrees to sell upon the terms and on the conditions
hereinafter set forth, but no later than 5:30 p.m., Eastern Time, on the Expiration Date (as hereinafter defined) to ________________
 or registered assigns (the “ Holder ”), under the terms as hereinafter set forth, ________________ ( ) fully
paid and non-assessable shares of the Company’s common stock (the “Common Stock”), par value $0.001 per share
(the “ Warrant Stock ”), at a purchase price of $0.75 per share (the “Warrant Price”), pursuant
to this warrant (this “Warrant”). The number of shares of Warrant Stock to be so issued and the Warrant Price
are subject to adjustment in certain events as hereinafter set forth. The term “Common Stock” shall mean, when
used herein, unless the context otherwise requires, the stock and other securities and property at the time receivable upon the
exercise of this Warrant.

 

1.                 
Exercise of Warrant and Redemption of Warrant.

 

a.                  
The Holder may exercise this Warrant according to its terms by surrendering this Warrant to the Company at the address set forth
in Section 10, the Notice of Exercise attached hereto having then been duly executed by the Holder, accompanied by cash, certified
check or bank draft in payment of the purchase price, in lawful money of the United States of America, for the number of shares
of the Warrant Stock specified in the Notice of Exercise, or as otherwise provided in this Warrant, prior to 5:30 p.m., Eastern
Time, on March 26, 2019 (the “ Expiration Date ”).

 

This Warrant may be
exercised in whole or in part so long as any exercise in part hereof would not involve the issuance of fractional shares of Warrant
Stock. If exercised in part, the Company shall deliver to the Holder a new Warrant, identical in form, in the name of the Holder,
evidencing the right to purchase the number of shares of Warrant Stock as to which this Warrant has not been exercised, which new
Warrant shall be signed by the Chairman, Chief Executive Officer or President and the Secretary or Assistant Secretary of the Company.
The term Warrant as used herein shall include any subsequent Warrant issued as provided herein.

 

b.                 
No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. The Company shall
pay cash in lieu of fractions with respect to the Warrants based upon the fair market value of such fractional shares of Common
Stock (which shall be the closing price of such shares on the exchange or market on which the Common Stock is then traded) at the
time of exercise of this Warrant.

 

c.                  
In the event of any exercise of the rights represented by this Warrant, a certificate or certificates for the Warrant Stock so
purchased, registered in the name of the Holder, shall be delivered to the Holder within three (3) trading days after such rights
shall have been so exercised (the “ Warrant Stock Delivery Date ”). The person or entity in whose name any certificate
for the Warrant Stock is issued upon exercise of the rights represented by this Warrant shall for all purposes be deemed to have
become the holder of record of such shares immediately prior to the close of business on the date on which the Warrant was surrendered
and payment of the Warrant Price and any applicable taxes was made, irrespective of the date of delivery of such certificate, except
that, if the date of such surrender and payment is a date when the stock transfer books of the Company are closed, such person
shall be deemed to have become the holder of such shares at the opening of business on the next succeeding date on which the stock
transfer books are open. The Company shall pay any and all documentary stamp or similar issue or transfer taxes payable in respect
of the issue or delivery of shares of Common Stock on exercise of this Warrant.

 

d.                 
In addition to any other rights available to the Holder, if the Company fails to cause its transfer agent to transmit to the Holder
a certificate or the certificates representing the Warrant Stock pursuant to an exercise on or prior to the Warrant Stock Delivery
Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the
Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of
the Warrant Stock which the Holder anticipated receiving upon such exercise (a “ Buy-In ”), then the Company
shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage
commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number
of shares of Warrant Stock that the Company was required to deliver to the Holder in connection with the exercise at issue times
(2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder,
either reinstate the portion of the Warrant and equivalent number of shares of Warrant Stock for which such exercise was not honored
(in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would
have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder
purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares
of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately
preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice
indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount
of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law
or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s
failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to
the terms hereof.

 

    	 

    	 

    

 

e.                 
Redemption of
Warrant

 

(i)                 
General.
Prior to the Expiration Date, the Company shall have the option, subject to the conditions set forth herein, to redeem all of the
Warrants then outstanding upon not less than thirty (30) days nor more than sixty (60) days prior written notice to the Warrant
Holders at any time provided that, at the time of delivery of such notice (i) there is an effective registration statement
covering the resale of the Warrant Shares, and (ii) the average trading price of the Company’s Common Stock , or shares into
which the Common Stock have been exchanged, for each of the twenty (20) consecutive trading days prior to the date of the notice
of redemption is at least $2.50, as proportionately adjusted to reflect any stock splits, stock dividends, combination of shares
or like events, with an average daily trading volume during such period of 100,000 shares.

 

(ii)                 
Notice.
Notice of redemption will be effective upon mailing in accordance with this Section and such date may be referred to below as the
“Notice Date.” Notice of redemption shall be mailed by first class mail, postage prepaid, by the Company not
less than 30 days prior to the date fixed for redemption to the Holders of the Warrants to be redeemed at their last addresses
as they shall appear on the registration books. Any notice mailed in the manner herein provided shall be conclusively presumed
to have been duly given whether or not the Holder received such notice.

 

(iii)                 
Redemption
Date and Redemption Price. The notice of redemption shall state the date set for redemption, which date shall be not less than
thirty (30) days, or more than sixty (60) days, from the Notice Date (the “Redemption Date”). The Company shall not
mail the notice of redemption unless all funds necessary to pay for redemption of the Warrants to be redeemed shall have first
been set aside by the Company for the benefit of the Warrant Holders so as to be and continue to be available therefor. The redemption
price to be paid to the Warrant Holders will be $0.01 for each share of Common Stock of the Company to which the Warrant Holder
would then be entitled upon exercise of the Warrant being redeemed, as adjusted from time to time as provided herein (the “Redemption
Price”).

 

(iv)                 
Exercise.
Following the Notice Date, the Warrant Holders may exercise their Warrants in accordance with Section 1 of this Warrant between
the Notice Date and 5:00 p.m. Eastern Time on the Redemption Date and such exercise shall be timely if the form of election to
purchase duly executed and the Warrant Exercise Price for the shares of Common Stock to be purchased are actually received by the
Company at its principal offices prior to 5:00 p.m. Eastern Time on the Redemption Date.

 

(v)                 
Mailing.
If any Warrant Holder does not wish to exercise any Warrant being redeemed, he should mail such Warrant to the Company at its principal
offices after receiving the notice of redemption. On and after 5:00 p.m. Eastern Time on the Redemption Date, notwithstanding that
any Warrant subject to redemption shall not have been surrendered for redemption, the obligation evidenced by all Warrants not
surrendered for redemption or effectively exercised shall be deemed no longer outstanding, and all rights with respect thereto
shall forthwith cease and terminate, except only the right of the holder of each Warrant subject to redemption to receive the Redemption
Price for each share of Common Stock to which he would be entitled if he exercised the Warrant upon receiving notice of redemption
of the Warrant subject to redemption held by him.

 

2.                 
Disposition of Warrant Stock and Warrant.

 

a.                  
The Holder hereby acknowledges that this Warrant and any Warrant Stock purchased pursuant hereto are, as of the date hereof, not
registered: (i) under the Securities Act of 1933, as amended (the “Securities Act”), on the ground that the issuance
of this Warrant is exempt from registration under Section 4(2) of the Securities Act as not involving any public offering or (ii)
under any applicable state securities law because the issuance of this Warrant does not involve any public offering; and that the
Company’s reliance on the Section 4(2) exemption of the Act, as the case may be, and under applicable state securities laws
is predicated in part on the representations hereby made to the Company by the Holder that it is acquiring this Warrant and will
acquire the Warrant Stock for investment for its own account, with no present intention of dividing its participation with others
or reselling or otherwise distributing the same, subject, nevertheless, to any requirement of law that the disposition of its property
shall at all times be within its control.

 

    	 

    	 

    

 

The Holder hereby
agrees that it will not sell or transfer all or any part of this Warrant and/or Warrant Stock unless and until it shall first have
given notice to the Company describing such sale or transfer and furnished to the Company either (i) an opinion, reasonably satisfactory
to counsel for the Company, of counsel (skilled in securities matters, selected by the Holder) to the effect that the proposed
sale or transfer may be made without registration under the Act and without registration or qualification under any state law,
or (ii) an interpretative letter from the Securities and Exchange Commission to the effect that no enforcement action will be recommended
if the proposed sale or transfer is made without registration under the Act.

 

b.                 
If, at the time of issuance of the shares issuable upon exercise of this Warrant, no registration statement is in effect with respect
to such shares under applicable provisions of the Act, the Company may at its election require that the Holder provide the Company
with written reconfirmation of the Holder’s investment intent and that any stock certificate delivered to the Holder of a
surrendered Warrant shall bear legends reading substantially as follows:

 

“THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE
IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT,
THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY
BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.”

 

In addition, so long as the foregoing legend
may remain on any stock certificate delivered to the Holder, the Company may maintain appropriate “stop transfer” orders
with respect to such certificates and the shares represented thereby on its books and records and with those to whom it may delegate
registrar and transfer functions.

 

3.                 
Reservation of Shares. The Company hereby agrees that at all times there shall be reserved for issuance upon the exercise
of this Warrant such number of shares of its Common Stock as shall be required for issuance upon exercise of this Warrant. The
Company further agrees that all shares which may be issued upon the exercise of the rights represented by this Warrant will be
duly authorized and will, upon issuance and against payment of the exercise price, be validly issued, fully paid and non-assessable,
free from all taxes, liens, charges and preemptive rights with respect to the issuance thereof, other than taxes, if any, in respect
of any transfer occurring contemporaneously with such issuance and other than transfer restrictions imposed by federal and state
securities laws.

 

4.                 
Exchange, Transfer or Assignment of Warrant. This Warrant is exchangeable, without expense, at the option of the Holder,
upon presentation and surrender hereof to the Company or at the office of its stock transfer agent, if any, for other Warrants
of different denominations, entitling the Holder or Holders thereof to purchase in the aggregate the same number of shares of Common
Stock purchasable hereunder. Upon surrender of this Warrant to the Company or at the office of its stock transfer agent, if any,
with the Assignment Form annexed hereto duly executed and funds sufficient to pay any transfer tax, the Company shall, without
charge, execute and deliver a new Warrant in the name of the assignee named in such instrument of assignment and this Warrant shall
promptly be canceled. This Warrant may be divided or combined with other Warrants that carry the same rights upon presentation
hereof at the office of the Company or at the office of its stock transfer agent, if any, together with a written notice specifying
the names and denominations in which new Warrants are to be issued and signed by the Holder hereof.

 

5.                 
Capital Adjustments. This Warrant is subject to the following further provisions:

 

a.                  Intentionally
Omitted.

 

b.                 
Subdivision or Combination of Shares. If the Company at any time while this Warrant remains outstanding and unexpired shall
subdivide or combine its Common Stock, the number of shares of Warrant Stock purchasable upon exercise of this Warrant and the
Warrant Price shall be proportionately adjusted.

 

c.                  
Stock Dividends and Distributions. If the Company at any time while this Warrant is outstanding and unexpired shall issue
or pay the holders of its Common Stock, or take a record of the holders of its Common Stock for the purpose of entitling them to
receive, a dividend payable in, or other distribution of, Common Stock, then (i) the Warrant Price shall be adjusted in accordance
with Section 5(f) and (ii) the number of shares of Warrant Stock purchasable upon exercise of this Warrant shall be adjusted to
the number of shares of Common Stock that the Holder would have owned immediately following such action had this Warrant been exercised
immediately prior thereto.

 

    	 

    	 

    

 

d.                 
Stock and Rights Offering to Shareholders. If the Company shall at any time after the date of issuance of this Warrant distribute
to all holders of its Common Stock any shares of capital stock of the Company (other than Common Stock) or evidences of its indebtedness
or assets (excluding cash dividends or distributions paid from retained earnings or current year’s or prior year’s
earnings of the Company) or rights or warrants to subscribe for or purchase any of its securities (excluding those referred to
in the immediately preceding paragraph) (any of the foregoing being hereinafter in this paragraph called the “Securities”),
then in each such case, the Company shall reserve shares or other units of such Securities for distribution to the Holder upon
exercise of this Warrant so that, in addition to the shares of the Common Stock to which such Holder is entitled, such Holder will
receive upon such exercise the amount and kind of such Securities which such Holder would have received if the Holder had, immediately
prior to the record date for the distribution of the Securities, exercised this Warrant.

 

e.                  
Intentionally Omitted.

 

f.                  
Warrant Price Adjustment. Except as otherwise provided herein, whenever the number of shares of Warrant Stock purchasable
upon exercise of this Warrant is adjusted, as herein provided, the Warrant Price payable upon the exercise of this Warrant shall
be adjusted to that price determined by multiplying the Warrant Price immediately prior to such adjustment by a fraction (i) the
numerator of which shall be the number of shares of Warrant Stock purchasable upon exercise of this Warrant immediately prior to
such adjustment, and (ii) the denominator of which shall be the number of shares of Warrant Stock purchasable upon exercise of
this Warrant immediately thereafter.

 

g.                 
Certain Shares Excluded. The number of shares of Common Stock outstanding at any given time for purposes of the adjustments
set forth in this Section 5 shall exclude any shares then directly or indirectly held in the treasury of the Company.

 

h.                 
Deferral and Cumulation of De Minimis Adjustments. The Company shall not be required to make any adjustment pursuant to
this Section 5 if the amount of such adjustment would be less than one percent (1%) of the Warrant Price in effect immediately
before the event that would otherwise have given rise to such adjustment. In such case, however, any adjustment that would otherwise
have been required to be made shall be made at the time of and together with the next subsequent adjustment which, together with
any adjustment or adjustments so carried forward, shall amount to not less than one (1%) percent of the Warrant Price in effect
immediately before the event giving rise to such next subsequent adjustment.

 

i.                   
Duration of Adjustment. Following each computation or readjustment as provided in this Section 5, the new adjusted Warrant
Price and number of shares of Warrant Stock purchasable upon exercise of this Warrant shall remain in effect until a further computation
or readjustment thereof is required.

 

6.                 
Limitation on Exercises.

 

a. Notwithstanding
anything to the contrary set forth in this Warrant, at no time may all or a portion of the Warrant be exercised if the number of
shares of Common Stock to be issued pursuant to such exercise would exceed, when aggregated with all other shares of Common Stock
owned by the Holder at such time, the number of shares of Common Stock which would result in the Holder beneficially owning (as
determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
and the rules thereunder) more than 4.99% of all of the Common Stock outstanding at such time;  provided ,  however
, that upon the Holder providing the Corporation with sixty-one (61) days’ advance notice (the “4.99% Waiver Notice”)
that the Holder would like to waive this Section 6 (a) with regard to any or all shares of Common Stock issuable upon exercise
of this Warrant, this Section 6 (a) will be of no force or effect with regard to all or a portion of this Warrant referenced in
the 4.99% Waiver Notice.

 

b.                
Notwithstanding anything to the contrary set forth in this Warrant, at no time may all or a portion of this Warrant be exercised
if the number of shares of Common Stock to be issued pursuant to such exercise, when aggregated with all other shares of Common
Stock owned by the Holder at such time, would result in the Holder beneficially owning (as determined in accordance with Section
13(d) of the Exchange Act and the rules thereunder) in excess of 9.99% of the then issued and outstanding shares of Common Stock
outstanding at such time (the “ 9.99% Beneficial Ownership Limitation ” and the lower of the 9.99% Beneficial
Ownership Limitation and the 4.99% Beneficial Ownership Limitation then in effect, the “ Maximum Percentage ”).

 

c.By written notice
to the Company, the Holder may from time to time decrease the Maximum Percentage to any other percentage specified in such notice

 

d.For purposes of
this Warrant, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding
shares of Common Stock as reflected in (1) the Company's most recent Form 10-K, Form 10-Q, Current Report on Form 8-K or other
public filing with the Securities and Exchange Commission, as the case may be, (2) a more recent public announcement by the Company
or (3) any other notice by the Company setting forth the number of shares of Common Stock outstanding. For any reason at any time,
upon the written or oral request of the Holder, the Company shall within one (1) business day confirm orally and in writing to
the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock
shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by
the Holder and its affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The provisions
of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section
6 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended beneficial ownership
limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation.

 

    	 

    	 

    

 

7.                 
Notice to Holders.

 

a.                  
Notice of Record Date. In case:

 

(i)                
the Company shall take a record of the holders of its Common Stock (or other stock or securities at the time receivable upon the
exercise of this Warrant) for the purpose of entitling them to receive any dividend (other than a cash dividend payable out of
earned surplus of the Company) or other distribution, or any right to subscribe for or purchase any shares of stock of any class
or any other securities, or to receive any other right;

 

(ii)              
of any capital reorganization of the Company, any reclassification of the capital stock of the Company, any consolidation with
or merger of the Company into another corporation, or any conveyance of all or substantially all of the assets of the Company to
another corporation; or

 

(iii)            
of any voluntary dissolution, liquidation or winding-up of the Company;

 

then, and in each such case, the Company
will mail or cause to be mailed to the Holder hereof at the time outstanding a notice specifying, as the case may be, (i) the date
on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character
of such dividend, distribution or right, or (ii) the date on which such reorganization, reclassification, consolidation, merger,
conveyance, dissolution, liquidation or winding-up is to take place, and the time, if any, is to be fixed, as of which the holders
of record of Common Stock (or such stock or securities at the time receivable upon the exercise of this Warrant) shall be
entitled to exchange their shares of Common Stock (or such other stock or securities) for securities or other property deliverable
upon such reorganization, reclassification, consolidation, merger, conveyance, dissolution or winding-up. Such notice shall be
mailed at least thirty (30) days prior to the record date therein specified, or if no record date shall have been specified therein,
at least thirty (30) days prior to such specified date, provided, however, failure to provide any such notice shall not affect
the validity of such transaction.

 

b.                 
Certificate of Adjustment. Whenever any adjustment shall be made pursuant to Section 5 hereof, the Company shall promptly
make a certificate signed by its Chairman, Chief Executive Officer, President, Vice President, Chief Financial Officer or Treasurer,
setting forth in reasonable detail the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment
was calculated and the Warrant Price and number of shares of Warrant Stock purchasable upon exercise of this Warrant after
giving effect to such adjustment, and shall promptly cause copies of such certificates to be mailed (by first class mail, postage
prepaid) to the Holder of this Warrant.

 

8.                 
Loss, Theft, Destruction or Mutilation. Upon receipt by the Company of evidence satisfactory to it, in the exercise of its
reasonable discretion, of the ownership and the loss, theft, destruction or mutilation of this Warrant and, in the case of loss,
theft or destruction, of indemnity reasonably satisfactory to the Company and, in the case of mutilation, upon surrender and cancellation
thereof, the Company will execute and deliver in lieu thereof, without expense to the Holder, a new Warrant of like tenor dated
the date hereof.

 

9.                 
Warrant Holder Not a Stockholder. The Holder of this Warrant, as such, shall not be entitled by reason of this Warrant to
any rights whatsoever as a stockholder of the Company.

 

10.             
Notices. Any notice required or contemplated by this Warrant shall be deemed to have been duly given if transmitted by registered
or certified mail, return receipt requested, or nationally recognized overnight delivery service, to the Company at its
principal executive offices, Attn: Chief Executive Officer, or to the Holder at the name and address set forth in the Warrant Register
maintained by the Company.

 

11.             
Choice of Law. THIS WARRANT IS ISSUED UNDER AND SHALL FOR ALL PURPOSES BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW.

 

12.             
Jurisdiction and Venue. The Company and Holder hereby agree that any dispute which may arise between them arising out of
or in connection with this Warrant shall be adjudicated before a court located in New York County, New York and they hereby submit
to the exclusive jurisdiction of the federal and state courts of the State of York located in New York County with respect to any
action or legal proceeding commenced by any party, and irrevocably waive any objection they now or hereafter may have respecting
the venue of any such action or proceeding brought in such a court or respecting the fact that such court is an inconvenient forum,
relating to or arising out of this Warrant or any acts or omissions relating to the sale of the securities hereunder, and consent
to the service of process in any such action or legal proceeding by means of registered or certified mail, return receipt requested,
in care of the address set forth herein or such other address as either party shall furnish in writing to the other.

 

    	 

    	 

    

 

13.             
Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent signed by both
(a) the Company and (b) holders of Warrants representing a majority of the Warrant Stock then outstanding and not exercised

 

 

[Signature Page Follows]

 

    	 

    	 

    

IN WITNESS WHEREOF,
the Company has duly caused this Warrant to be signed on its behalf, in its corporate name and by its duly authorized officers,
as of this 26th day of March, 2015.

 

	 	By:	 
	 	Name: 	 
	 	Title: 	 

 

    	 

    	 

    

 

NOTICE OF EXERCISE

 

  TO:  

Tel: (___) ___-____

Fax: (___) ___-____

 

 

(1)              
The undersigned hereby elects to purchase ______________ shares of Warrant Stock of the Company pursuant to the terms of the attached
Warrant to Purchase Common Stock, and tenders herewith payment of the exercise price in full, together with all applicable transfer
taxes, if any.

 

(2)              
Payment shall take the form of:

 

£in
lawful money of the United States

 

Please issue a certificate or
certificates representing said shares of Warrant Stock in the name of the undersigned or in such other name as is specified below:

 

 

 

The shares of Warrant
Stock shall be delivered to the following DWAC Account Number, if permitted, or by physical delivery of a certificate to:

 

 

 

(3)              
Accredited Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under
the Securities Act of 1933, as amended.

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity:

 

Signature of Authorized Signatory of Investing Entity:

 

Name and Title of Authorized Signatory:

 

Date:

 

    	 

    	 

    

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

 

this form and supply
required information.

Do not use this form
to exercise the warrant.)

FOR VALUE RECEIVED,
all of or _________ shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

________________________________whose address is

_____________________________________________

_____________________________________________

Dated: _________,         

 

Holder’s Name:

 

Holder’s Signature:

 

Name and Title of Signatory:

 

Holder’s Address:

 

Signature Guaranteed:

 

NOTE: The signature to this Assignment
Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever,
and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing Warrant.Exhibit 4.1 RegistrationRightsAgreementexecution

Exhibit 4.1

EXECUTION VERSION

REGISTRATION RIGHTS AGREEMENT
BY AND AMONG
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
FRANCONIA TWO, L.P. 
AND
solely for purposes of Section 7.1,
PREIT ASSOCIATES, L.P.

DATED AS OF March 31, 2015

    

TABLE OF CONTENTS

ARTICLE I
CERTAIN DEFINITIONS

ARTICLE II
REGISTRATION REQUEST
	
				
	SECTION 2.1
	Request
	4
	

	SECTION 2.2
	Other Company Shares
	5
	

	SECTION 2.3
	Other Investor Shares
	5
	

	SECTION 2.4
	Expenses
	5
	

ARTICLE III
INCIDENTAL AND SHELF REGISTRATION
	
				
	SECTION 3.1
	Notice and Incidental Registration
	6
	

	SECTION 3.2
	Shelf Registration Statement
	7
	

ARTICLE IV
REGISTRATION PROCEDURES
	
				
	SECTION 4.1
	Registration and Qualification
	8
	

	SECTION 4.2
	Underwriting
	10
	

	SECTION 4.3
	Blackout Periods
	11
	

	SECTION 4.4
	Qualification for 144 Sales
	12
	

ARTICLE V
PREPARATION; REASONABLE INVESTIGATION
	
				
	SECTION 5.1
	Preparation; Reasonable Investigation
	12
	

ARTICLE VI
RESTRICTIONS ON PUBLIC SALE
	
				
	SECTION 6.1
	Restrictions on Public Sale
	12
	

ARTICLE VII
INDEMNIFICATION AND CONTRIBUTION
	
				
	SECTION 7.1
	Indemnification
	14
	

ARTICLE VIII
BENEFITS OF REGISTRATION RIGHTS
	
				
	SECTION 8.1
	Benefits of Registration Rights
	17
	

	SECTION 8.2
	General Partner of the Partnership
	17
	

ARTICLE IX
MISCELLANEOUS

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	SECTION 9.1
	No Inconsistent Agreements
	17
	

	SECTION 9.2
	Captions
	17
	

	SECTION 9.3
	Severability
	17
	

	SECTION 9.4
	Governing Law
	18
	

	SECTION 9.5
	Modification and Amendment
	18
	

	SECTION 9.6
	Counterparts
	18
	

	SECTION 9.7
	Entire Agreement
	18
	

	SECTION 9.8
	Assignment; Successors and Assigns
	18
	

	SECTION 9.9
	Notices
	18
	

	SECTION 9.10
	Specific Performance
	18
	

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REGISTRATION RIGHTS AGREEMENT
This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made as of the 31st day of March, 2015, among PENNSYLVANIA REAL ESTATE INVESTMENT TRUST, a Pennsylvania business trust (the “Company”), FRANCONIA TWO, L.P., a Virginia limited partnership (“Franconia”), the Permitted Transferees (as defined below) of Franconia who become party hereto in accordance with this Agreement (Franconia and such entities or Permitted Transferees are sometimes referred to herein individually as an “Investor” and collectively as the “Investors”) and, solely for purposes of Section 7.1, PREIT ASSOCIATES L.P., a Delaware limited partnership (the “Partnership”). 
W I T N E S S E T H:
WHEREAS, the Company is the sole general partner of the Partnership;
WHEREAS, pursuant to a Contribution Agreement (as the same may be amended, modified or supplemented from time to time, the “Contribution Agreement”), dated as of March 2, 2014, by and between Franconia and the Partnership, and acknowledged and agreed to as to certain provisions by the Company, Franconia is receiving on the date hereof, and may receive on the Earnout Payment Date, among other things, certain Class B limited partnership interests in the Partnership (such limited partnership units received pursuant to the Contribution Agreement, the “Common Units”) or, pursuant to Section 3.4(b) of the Contribution Agreement, common shares of beneficial interest, par value $1.00 per share, of the Company (“Common Shares”); and
WHEREAS, pursuant to Section 9.5 and the other related provisions of the First Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of September 30, 1997 (as the same may be amended, restated or supplemented from time to time, the “Partnership Agreement”), subject to the various limitations contained in the Partnership Agreement, the Investors are entitled to redeem their Common Units for cash or, at the Company’s election, Common Shares; and
WHEREAS, the Company has agreed to provide to the Investor certain registration rights as set forth herein with respect to the Common Shares, if any, issued by the Company to Franconia pursuant to the Contribution Agreement or issuable by the Company in respect of the redemption of Common Units pursuant to the Partnership Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and undertakings contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and subject to and on the terms and conditions herein set forth, the parties hereto agree as follows:
ARTICLE I
CERTAIN DEFINITIONS
1.1.        “Agreement” is defined in the first paragraph of this Agreement.
1.2.        “beneficial ownership” and “beneficial owner” shall have the meanings ascribed thereto in Section 13(d) of the Exchange Act and the rules promulgated thereunder.
1.3.        “Business Day” means any day on which the New York Stock Exchange or such other exchange as the Common Shares are listed is open for trading.

1.4.        “Common Shares” is defined in the recitals of this Agreement, and shall include equivalent securities of any successor to the Company.
1.5.        “Common Units” is defined in the recitals of this Agreement.
1.6.        “Company” is defined in the first paragraph of this Agreement and shall include any entity that becomes the general partner of the Partnership after the date hereof.
1.7.        “Contribution Agreement” is defined in the recitals of this Agreement.
1.8.        “Earnout Payment Date” means the ninetieth (90th) day after the second (2nd) anniversary of the date hereof.
1.9.        “Effectiveness Period” is defined in Section 3.2(a) hereof.
1.10.    “Eligible Securities” means all or any portion of (x) the Common Shares acquired or that may be acquired by an Investor upon redemption, conversion or exchange of the Common Units and (y) the Common Shares (if any) issued by the Company to Franconia pursuant to Section 3.4(b) of the Contribution Agreement, in each case to the extent those Common Shares are subject to restrictions on disposition by the Investor pursuant to Rule 144 (or any successor rule) under the Securities Act.  Eligible Securities shall cease to be Eligible Securities when (i) a registration statement with respect to the sale of such Common Shares shall have become effective under the Securities Act and such Common Shares shall have been disposed of in accordance with such registration statement, (ii) such Common Shares are permitted to be disposed of (without limit as to manner of sale or volume) pursuant to Rule 144 (or any successor provision to such Rule) under the Securities Act as confirmed in a written opinion of outside counsel to the Company addressed to the Investor, (iii) such Common Shares shall have been otherwise transferred pursuant to Rule 144 (or any successor rule) or pursuant to another applicable exemption under the Securities Act, new certificates for such Common Shares not bearing a legend restricting further transfer shall have been delivered by the Company and such Common Shares shall be freely transferable to the public without registration under the Securities Act or (iv) such Common Shares are no longer outstanding.  
1.11.    “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC thereunder, all as the same shall be in effect at the relevant time.
1.12.    “Franconia” is defined in the first paragraph of this Agreement.
1.13.    “Inclusion Notice” is defined in Section 6.1(b) hereof.
1.14.    “Information Blackout” is defined in Section 4.3(a) hereof.
1.15.    “Investor” is defined in the first paragraph of this agreement.
1.16.    “Lock-up Commitment” is defined in Section 6.1(a) hereof.
1.17.    “Other Securities” is defined in Section 3.1 hereof.
1.18.    “Participating Investor” is defined in Section 2.3 hereof.

1.19.    “Partnership” is defined in the preamble of this Agreement.

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1.20.    “Partnership Agreement” is defined in the recitals of this Agreement.
1.21.    “Person” means an individual, a partnership (general or limited), corporation, real estate investment trust, joint venture, business trust, cooperative, limited liability company, association or other form of business organization, whether or not regarded as a legal entity under applicable law, a trust (inter vivos or testamentary), an estate of a deceased, insane or incompetent person, a quasi-governmental entity, a government or any agency, authority, political subdivision or other instrumentality thereof, or any other entity.
1.22.    “Permitted Transfer” has the meaning ascribed to such term in the Partnership Agreement.
1.23.    “Permitted Transferees” means (a) any affiliate of Franconia that is controlled directly or indirectly by Vornado Realty Trust and (b) any Persons who acquire Common Units from Franconia or another Permitted Transferee in a Permitted Transfer and who has been admitted to the Partnership as a limited partner with the consent of the Partnership’s General Partner in accordance with the requirements of Partnership Agreement, and in each of clauses (a) and (b), that has become a party hereto in accordance with Section 9.9 hereof.
1.24.    “Qualifying Other Holder” has the meaning ascribed to such term in Section 2.2
1.25.    “Registration Expenses” means all expenses incurred in connection with the Company’s performance of or compliance with the registration requirements set forth in this Agreement including, without limitation, the following:  (i) the fees, disbursements and expenses of the Company’s counsel(s) (United States and foreign), accountants, experts and other persons retained by the Company in connection with the registration, offering and sale of Eligible Securities to be disposed of under the Securities Act; (ii) all expenses in connection with the preparation, printing and filing of any registration statement, any preliminary prospectus, final prospectus or free writing prospectus, any other offering document and amendments and supplements thereto and the mailing and delivering of copies thereof to the underwriters and dealers; (iii) the cost of printing or producing any agreement(s) among underwriters, underwriting agreement(s) and blue sky or legal investment memoranda, any selling agreements and any other documents in connection with the offering, sale or delivery of Eligible Securities to be disposed of; (iv) all expenses in connection with the qualification of Eligible Securities to be disposed of for offering and sale under state securities laws (v) the filing fees incident to securing any required review by the National Association of Securities Dealers, Inc. of the terms of the sale of Eligible Securities to be disposed of; (vi) SEC and blue sky registration fees attributable to Eligible Securities; (vii) fees and expenses incurred in connection with the listing of Eligible Securities on each securities exchange or quotation system on which the Common Shares are then listed and (viii) the reasonable fees and disbursements for one counsel or firm to the Investors selected by Franconia (which selection is subject to the Company’s prior approval, not to be unreasonably withheld); provided, however, that Registration Expenses with respect to any registration pursuant to this Agreement shall not include underwriting discounts or commissions attributable to Eligible Securities, any out-of-pocket expenses of the Selling Investors (including any fees and expenses of their brokers or counsel) or transfer taxes applicable to Eligible Securities.

1.26.    “Requesting Investor” means an Investor requesting registration of its Eligible Securities in accordance with the terms hereof.
1.27.    “Sales Blackout Period” is defined in Section 4.3(a) hereof.

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1.28.    “SEC” means the United States Securities and Exchange Commission.
1.29.    “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations of the SEC thereunder, all as the same shall be in effect at the relevant time.
1.30.    “Selling Investor” means the Requesting Investor and each Investor who has requested registration pursuant to Article II or Article III hereof, as applicable.
1.31.    “Shelf Registration Statement” is defined in Section 3.2 hereof.
1.32.    “Underwritten Offering Notice” is defined in Section 6.1(a) hereof.
            
ARTICLE II
REGISTRATION REQUEST

SECTION 2.1    Request.  Upon written request from a Requesting Investor requesting that the Company effect the registration under the Securities Act of all or part of the Eligible Securities held by such Investor, which notice may be delivered at any time and which notice shall specify the intended method or methods of disposition of such Eligible Securities, unless such Eligible Securities are included in a currently effective registration statement of the Company permitting the resale of such Eligible Securities in the manner contemplated by the Requesting Investor, the Company will use its commercially reasonable efforts to effect (as promptly as reasonably practicable) the registration, under the Securities Act, of such Eligible Securities for disposition in accordance with the intended method or methods of disposition stated in such request; provided that:
a.    if the Company shall have previously effected a registration with respect to Eligible Securities pursuant to Article III hereof, the Company shall not be required to effect a registration pursuant to this Article II until a period of one hundred eighty (180) days shall have elapsed from the effective date of the most recent such previous registration;
b.    if, while a registration request is pending pursuant to this Article II or Article III, (i) the Company is, at such time, in the process of pursuing an underwritten public offering of equity securities and is advised by the managing underwriter(s) that such offering would in its or their opinion be adversely affected by such filing, (ii) the Board of Trustees of the Company determines that any such filing or the offering of any Eligible Securities would be reasonably likely to materially adversely affect or materially delay any proposed material financing, offer or sale of securities, acquisition, corporate reorganization or other material transaction involving the Company or the Partnership or (iii) the Board of Trustees of the Company determines in good faith, with the advice of counsel, that the filing of a registration statement would be reasonably likely to require the disclosure of non-public material information the disclosure of which would be reasonably likely to have a material adverse effect on the Company, then, in each case described in the foregoing clauses (i)-(iii), the Company shall deliver to the Investors a certificate to such effect signed by its Chief Executive Officer, Executive Chairman, Vice Chairman, or any Executive Vice President, and the Company shall not be required to effect a registration pursuant to this Article II until the earlier of (i) the date on which such underwritten public offering concludes, the date upon which such financing, offer or sale of securities, acquisition, corporate 

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reorganization or other material transaction concludes, or the date upon which such material information is disclosed to the public or ceases to be material, respectively, or (ii) sixty (60) days after the Company makes such good faith determination; provided, that only two (2) such certificates may be delivered to the Investors in any twelve (12) consecutive month period, and the aggregate number of days in which any Sales Blackout Periods may be in effect in any twelve (12) consecutive month period shall not exceed one hundred and five (105) days; 
c.    the Company shall not be required to effect (i) more than two (2) registrations pursuant to this Article II in any calendar year or more than four (4) total registrations pursuant to this Article II and (ii) a registration of Eligible Securities, the fair market value of which on the date of the registration request is less than $50,000,000.  No registration of Eligible Securities under this Article II shall relieve the Company of its obligation (if any) to effect registrations of Eligible Securities pursuant to Section 3.1 hereof; and
d.    the Company shall not file any registration statement or effect a public offering of its securities during the period of time covered by a certificate relating to an event described in clause (b)(ii) (other than in connection with such proposed transaction described in clause (b)(ii)) or (b)(iii) above.
 SECTION 2.2    Other Company Shares.  In no event shall the Company agree to register Common Shares or any other securities for issuance by the Company or for resale by any Persons other than the Investors in any registration statement filed pursuant to this Article II or Section 3.2, without the express written consent of Franconia, which consent shall be entirely discretionary; provided, however, that the Company may agree to register in such registration statement Common Shares for resale by any holder of registration rights, pursuant to a registration rights agreement entered into by it with the Company after the date of this Agreement, who beneficially owns at least five (5) percent of the Company’s outstanding Common Shares (calculated with Class A and Class B Units of the Partnership deemed to be Common Shares) (a “Qualifying Other Holder”) and who is proposing to register Common Shares with an aggregate fair market value as of the time of the initial filing of such registration statement of at least $50,000,000.  If the Company shall have been advised in writing (with a copy to the Requesting Investors) by a nationally recognized independent investment banking firm selected by the Company and reasonably acceptable to the Requesting Investors to act as lead underwriter in connection with the public offering of securities by the Company that, in such firm’s opinion, a registration of Eligible Securities requested to be registered at that time would materially and adversely affect the scheduled offering of securities, then the aggregate number of Eligible Securities requested to be included in such registration by the Requesting Investors and the Qualifying Other Holder(s) shall be reduced pro rata among the Requesting Investors and the Qualifying Other Holder(s) according to the total number of eligible securities requested to be registered by such Persons.  
SECTION 2.3    Other Investor Shares.  A Requesting Investor who delivers a written notice to the Company shall promptly give such written notice to each other Investor.  The Company shall include in any registration statement filed pursuant to this Article II the Eligible Securities of any other Investor (a “Participating Investor”) who has delivered written notice to the Company within ten (10) Business Days of the date of the Company’s receipt of the above-referenced written notice from the Requesting Investor.  A notice from a Participating Investor under this Section 2.3 shall specify the number of Eligible Securities to be included in the registration statement and the intended method of disposition.
SECTION 2.4    Expenses.  The Company shall bear all Registration Expenses in connection with any demand registration pursuant to this Article II, whether or not such registration statement becomes effective; provided, however, that if the Investors request a registration pursuant to 

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this Section 2.1 and subsequently withdraw their request, then such Investors shall either pay all Registration Expenses incurred in connection with such registration or forfeit the right to request another registration unless the withdrawal of such request is the result of facts or circumstances relating to the Company that arise after the date on which such request was made and would have a material adverse effect on the offering of the Eligible Securities.
ARTICLE III
INCIDENTAL AND SHELF REGISTRATION

SECTION 3.1    Notice and Incidental Registration.  If the Company proposes to register any Common Shares, any equity securities exercisable for, convertible into or exchangeable for Common Shares, or other securities issued by it having terms substantially similar to Eligible Securities (“Other Securities”) (x) for public sale by the Company, or (y) so long as the Investors beneficially own Common Shares representing at least five (5) percent of the Company’s outstanding Common Shares (calculated with Class A and Class B Units of the Partnership deemed to be Common Shares) and are proposing to register Common Shares with an aggregate fair market value of at least $50,000,000 at the time of the initial filing of such registration statement, for public sale by any Qualifying Other Holder proposing to register Common Shares with an aggregate fair market value of at least $50,000,000 at the time of the initial filing of such registration statement, under the Securities Act on a form and in a manner which would permit registration of Eligible Securities for sale to the public under the Securities Act, it will give prompt written notice to the Investors of its intention to do so, and upon the written request of any Investor delivered to the Company within ten (10) Business Days after the giving of any such notice (which request shall specify the number of Eligible Securities intended to be disposed of by the Investor and the intended method of disposition thereof), the Company will use commercially reasonable efforts to effect, in connection with the registration of the Other Securities, the registration under the Securities Act of all Eligible Securities which the Company has been so requested to register by the Selling Investor(s), to the extent required to permit the disposition (in accordance with the intended method or methods thereof as aforesaid) of Eligible Securities so to be registered; provided that:
a.    If, at any time after giving such written notice of its intention to register any Other Securities and prior to the effective date of the registration statement filed in connection with such registration, the Company or such Qualifying Other Holder shall determine for any reason not to register the Other Securities, the Company may, at its election, give written notice of such determination to the Selling Investors and thereupon the Company shall be relieved of its obligation to register such Eligible Securities in connection with the registration of such Other Securities (but not from its obligation to pay Registration Expenses to the extent incurred in connection therewith as provided in Section 3.2 hereof), without prejudice, however, to the rights (if any) of the Selling Investors immediately to request that such registration be effected as a registration under Article II hereof.
b.    The Company shall not be required to give notice of or effect any registration of Eligible Securities under this Section 3.1 incidental to the registration of any of its securities in connection with mergers, acquisitions, exchange offers, subscription offers, dividend reinvestment plans or share options or other employee benefit plans.  The Company shall not be required to effect any registration under this Section 3.1 if the Eligible Securities that are the subject of such request are currently included in an effective registration statement of the Company permitting the resale of such Eligible Securities in the manner contemplated by the Requesting Investor.

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c.    Notwithstanding any request under this Section 3.1, a Selling Investor may elect in writing prior to the effective date of a registration under this Section 3.1, not to register its Eligible Securities in connection with such registration.
d.    No registration of Eligible Securities effected under this Section 3.1 shall relieve the Company of its obligation (if any) to effect registration of other Eligible Securities pursuant to Article II or Section 3.2 hereof.
e.    Neither the Company nor the Partnership shall enter into any agreement with a holder of securities of the Company or the Partnership that prevents the Company from complying with its obligations under this Section 3.1 to include Eligible Securities in any registration statement filed by the Company.
f.    The Company will not be required to effect any registration pursuant to this Section 3.1 if the Company shall have been advised in writing (with a copy to the Selling Investors) by a nationally recognized independent investment banking firm selected by the Company to act as lead underwriter in connection a the public offering of securities by the Company that, in such firm’s opinion, a registration of Eligible Securities requested to be registered at that time would materially and adversely affect the scheduled offering of securities; provided, however, that if an offering of some but not all of the Eligible Securities requested to be registered by the Investor(s) would not materially adversely affect the Company’s offering of securities, the aggregate number of Eligible Securities requested to be included in such offering by the Investors shall be reduced such that securities are included as follows: (1) first, 100% of the securities that the Company proposes to sell, (2) second, and only if all the securities referred to in clause (1) have been included, the number of securities eligible for inclusion in such registration that all other Persons have requested to include, allocated pro rata among such Persons according to the total number of eligible securities requested to be registered by such Persons.
g.    The Company shall be responsible for the payment of all Registration Expenses in connection with any registration pursuant to this Section 3.1.
SECTION 3.2    Shelf Registration Statement.
(a)    Shelf Registration Statement.  Subject to Section 2.1(b), the Company shall, upon request of any Investor, as promptly as reasonably practicable file with the SEC a registration statement for an offering to be made on a continuous basis pursuant to Rule 415 covering the resale of all of the Eligible Securities (the “Shelf Registration Statement”).  The Shelf Registration Statement shall be on the appropriate form permitting registration of such Eligible Securities for resale by Investors in the manner or manners designated by them (including, without limitation, one or more underwritten offerings).  The Company will notify each Investor when such Shelf Registration Statement has become effective.  The Company shall not be required to maintain in effect more than one shelf registration at any one time pursuant to this Section 3.2(a).  The Company shall (subject to the limitations on registration obligations of the Company set forth in Articles II and III hereof, which shall be applicable with respect to the Shelf Registration) use its commercially reasonable efforts to cause the Shelf Registration Statement to be declared effective under the Securities Act as promptly as practicable after the filing of the Shelf Registration Statement, or automatically if the Company is eligible to file an automatically effective shelf registration statement, and (subject to the limitations on registration obligations of the Company set forth in Articles II and III hereof) to keep the Shelf Registration Statement continuously effective under the Securities Act until the date (“Effectiveness Period”) when all Eligible Securities covered by the Shelf 

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Registration Statement have been sold in the manner set forth and as contemplated in the Shelf Registration Statement.
(b)    Withdrawal of Stop Orders.  If the Shelf Registration Statement ceases to be effective for any reason at any time during the Effectiveness Period (other than because of the sale of all of the securities registered thereunder), the Company shall use its commercially reasonable efforts to obtain the prompt withdrawal of any order suspending the effectiveness thereof.
(c)    Supplement and Amendments.  Subject to Section 2.1(b), the Company shall promptly supplement and amend the Shelf Registration Statement and the prospectus included therein if required by the rules, regulations or instructions applicable to the registration form used for such Shelf Registration Statement or by the Securities Act.
(d)    Other Shares.  Except as provided in Section 2.2, in no event shall the Company agree to register Common Shares or any other securities for issuance by the Company or resale by any Persons other than the Investors in any registration statement filed pursuant to this Section 3.2 without the express written consent of Franconia, which consent shall be entirely discretionary.
(e)    Other Registrations.  Notwithstanding any other provisions contained herein to the contrary, the Company shall not be required to effect any shelf registration or to keep any shelf registration statement effective pursuant to this Section 3.2 if the Investors exercise their right to request a demand registration pursuant to Article II, and such demand registration includes all of the Eligible Securities owned by all of the Investors and such securities are sold pursuant to such demand registration. 
(f)    Expenses.  The Company shall bear all Registration Expenses in connection with any shelf registration pursuant to this Section 3.2, whether or not such shelf registration becomes effective; provided, however, that if the Investor(s) request a shelf registration and subsequently withdraw their request, then such Investors shall either pay all Registration Expenses incurred in connection with such shelf registration or forfeit the right to request another shelf registration unless the withdrawal of such request is the result of facts or circumstances relating to the Company that arise after the date on which such request was made and would have a material adverse effect on the offering of the Eligible Securities.
ARTICLE IV
REGISTRATION PROCEDURES
SECTION 4.1    Registration and Qualification.  If and whenever the Company is required to use all commercially reasonable efforts to effect the registration of any Eligible Securities under the Securities Act as provided in Articles II or III hereof, and subject to the limitations set forth in Section 2.1, 3.1 and 3.2, the Company will, as promptly as is practicable:
a.    prepare, file and use all commercially reasonable efforts to cause to become effective and to remain continuously effective a registration statement under the Securities Act regarding the Eligible Securities to be offered;
b.    prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective and to comply with the provisions of the Securities Act with respect to the disposition of all Eligible Securities until such time as all of such Eligible Securities have been disposed of in accordance with the intended methods of disposition by the Selling Investors set forth in such registration statement;

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c.    furnish to the Investor and any Selling Investors and to any underwriter of such Eligible Securities such number of conformed copies of such registration statement and of each such amendment and supplement thereto (in each case including all exhibits), such number of copies of the prospectus included in such registration statement (including each preliminary prospectus and any summary prospectus), in conformity with the requirements of the Securities Act, such documents incorporated by reference in such registration statement or prospectus, and such other documents as the Selling Investors or such underwriter may reasonably request;
d.    use all commercially reasonable efforts to register or qualify all Eligible Securities covered by such registration statement under such other securities or blue sky laws of such jurisdictions as the Investor or any Selling Investors or any underwriter of such Eligible Securities shall reasonably request, and use all commercially reasonable efforts to do other acts and things which may be reasonably requested by the Investor or any Selling Investors or any underwriter to consummate the disposition in such jurisdictions of the Eligible Securities covered by such registration statement, except the Company shall not for any such purpose be required to qualify generally to do business as a foreign corporation in any jurisdiction wherein it is not so qualified, or to subject itself to taxation on its income in any jurisdiction where it is not then subject to taxation, or to consent to general service of process in any jurisdiction where it is not then subject to service of process;
e.    use all commercially reasonable efforts to list the Eligible Securities on each national securities exchange or quotation system on which the Common Shares are then listed, if the listing of such securities is then permitted under the rules of such exchange;
f.    (i) furnish to the Selling Investors opinions of counsel for the Company, addressed to them, dated the date of the closing under the underwriting agreement, in customary form, scope and substance, (ii) in the case of an underwritten offering, upon such Selling Investor’s request, furnish to the Selling Investors a “comfort letter” signed by the independent public accountants who have audited the Company’s financial statements included in such registration statement, addressed to them and, subject to the Selling Investors providing to the independent public accountants such information and representations as reasonably requested by such independent public accountants to render such “comfort letter”; provided that with respect to such opinion and “comfort letter,” the following shall apply:  the opinion and “comfort letter” shall cover such matters as the Selling Investors may reasonably request, but only to the extent substantially the same matters with respect to such registration statement (and the prospectus included therein) are customarily covered in opinions of issuer’s counsel and in accountants’ letter delivered to underwriters in underwritten public offerings of securities, and (iii) furnish to the Selling Investors such other certificates and documents, dated the date of closing under the underwriting agreement, as are reasonably requested by the Selling Investors and customarily delivered at closing;
g.    notify the Investor and any Selling Investors as soon as reasonably practicable and, if requested by any such person, confirm such notice in writing:
(i)    (A) when a prospectus, any prospectus supplement or free writing prospectus or post-effective amendment is proposed to be filed in respect of a registration statement filed pursuant to this Agreement, and (B) with respect to such registration statement or any post-effective amendment thereto, when the same has become effective;
(ii)    of any written comments from the SEC with respect to any filing and of any request by the SEC or any other federal or state governmental authority for amendments or supplements to such registration statement or related prospectus or for 

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additional information related thereto;
(iii)    of the issuance by the SEC, any state securities commission, any other governmental agency or any court of any stop order, order or injunction suspending or enjoining the use or effectiveness of any registration statement filed pursuant to this Agreement or the initiation of any proceedings for that purpose;
(iv)    of the receipt by the Company of any notification with respect to the suspension of qualification or exemption from qualification of any of the Eligible Securities for sale in any jurisdiction, or the initiation or threatening of any proceeding for such purpose;
(v)    of the existence of any fact or the happening of any event that makes any statement of material fact made in any registration statement filed pursuant to this Agreement or related prospectus untrue in any material respect, or that requires the making of any changes in such registration statement or prospectus so that, in the case of the registration statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading and that, in the case of the prospectus, such prospectus will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and
(vi)    of the determination by the Company that a post-effective amendment to a registration statement filed pursuant to this Agreement will be filed with the SEC; and
h.    upon the occurrence of any event contemplated by Section 4.1(g)(v) hereof, at the request of the Investor or a Selling Investor, prepare and furnish to the Investor and any Selling Investors as many copies as requested of a supplement or amendment, including, if appropriate, a post-effective amendment to the registration statement or a supplement to the related prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered, such prospectus will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
The Company may require the Investor(s) and any Selling Investors to furnish the Company such information regarding the Investor(s) and any Selling Investors and the distribution of such securities as the Company may from time to time reasonably request in writing and as shall be required by law or by the SEC in connection with any registration.
SECTION 4.2    Underwriting. (a)   If, in the case of an offering pursuant to a registration statement filed pursuant to Section 2.1, or an offering pursuant to a registration statement filed pursuant to Section 3.2 where the fair market value of the Eligible Securities to be offered is either (i) at least $50,000,000 or (ii) at least $30,000,000 and the Eligible Securities to be sold are all of the Eligible Securities held by the Investors, and in each case, any Selling Investor(s) so elects, such offering shall, by written notice delivered to the Company, be in the form of an underwritten offering (for the avoidance of doubt, underwritten offerings pursuant to a shelf registration statement under Section 3.2 shall be subject to Section 2.1(b)).  With respect to any such underwritten offering, the Company shall as promptly as is practicable (and, in any event, within three (3) Business Days of its receipt of such notice 

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from the Selling Investor(s)) select an investment banking firm of national standing to be the managing underwriter for the offering, which firm shall be reasonably acceptable to the Selling Investor(s), following which selection the Company and the Selling Investors shall cooperate to effect such transaction as promptly as reasonably practicable.
(b)    In the case of an underwritten offering, the Company will, and will cause the Partnership to, enter into and perform their obligations under an underwriting agreement with such underwriters for such offering, such agreement to contain such representations and warranties by the Company and the Partnership and such other terms and provisions as are customarily contained in underwriting agreements with respect to secondary distributions, which may include, without limitation, indemnities and contribution to the effect and to the extent provided in Article VII hereof and the provision of opinions of counsel and accountants’ letters to the effect and to the extent provided in Section 4.1(f) hereof.  The holders of Eligible Securities on whose behalf such securities are to be distributed by such underwriters shall be parties to any such underwriting agreement and the representations and warranties by, and the other agreements on the part of, the Company to and for the benefit of such underwriters shall also be made to and for the benefit of such holders of such securities, but only to the extent such representations and warranties and other agreements are customarily made by issuers to selling stockholders in secondary underwritten public offerings.
(c)    In the event that any registration pursuant to Section 3.1 hereof shall involve, in whole or in part, an underwritten offering, the Company may require Eligible Securities requested to be registered pursuant to Article III hereof to be included in such underwriting on the same terms and conditions as shall be applicable to the Other Securities being sold through underwriters under such registration.  In such case, the holders of Eligible Securities on whose behalf Eligible Securities are to be distributed by such underwriters shall be parties to any such underwriting agreement.  Such agreement shall contain such representations and warranties by the Company, the Partnership and the Selling Investors and such other terms and provisions as are customarily contained in underwriting agreements with respect to secondary distributions, which may include, without limitation, indemnities and contribution to the effect and to the extent provided in Article VI hereof.  The representations and warranties in such underwriting agreement by, and the other agreements on the part of, the Company and the Partnership to and for the benefit of such underwriters shall also be made to and for the benefit of such holders of Eligible Securities, but only to the extent such representations and warranties and other agreements are customarily made by issuers to selling stockholders in secondary underwritten public offerings.
SECTION 4.3    Blackout Periods.  (a)  At any time when a registration statement effected pursuant to Article II hereof relating to Eligible Securities is effective, upon written notice from the Company to the Selling Investors that the Board of Trustees of the Company has determined in good faith, with the advice of counsel, that the Selling Investors’ sale of Eligible Securities pursuant to the registration statement would be reasonably likely to require disclosure of non-public material information the disclosure of which would be reasonably likely to have a material adverse effect on the Company (an “Information Blackout”), the Selling Investors shall suspend sales of Eligible Securities pursuant to such registration statement until the earliest of:
(i)    the date upon which such material information is disclosed to the public or ceases to be material;
(ii)    sixty (60) days after the Company’s delivery of such written notice to the Selling Investors; and

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 (iii)    such time as the Company notifies the Selling Investors that sales pursuant to such registration statement may be resumed.
The number of days from such suspension of sales by the Selling Investors until the day when such sales may be resumed under clause (i), (ii) or (iii) hereof is hereinafter called a “Sales Blackout Period”.  In no event may the Company deliver more than two (2) notices of an Information Blackout in any twelve (12) consecutive month period, and the aggregate number of days in which any Sales Blackout Periods may be in effect in any twelve (12) consecutive month period shall not exceed one hundred and five (105) days.
(b)    Any delivery by the Company of a written notice of an Information Blackout during the sixty (60) days immediately following effectiveness of any registration statement effected pursuant to Article II hereof shall give the Investors the right, by written notice to the Company within twenty (20) Business Days after the end of such Sales Blackout Period, to cancel such registration and obtain one additional registration right during such calendar year under Article II hereof, unless the Investors have sold a majority of the Eligible Securities registered on such registration statement prior to the end of such twenty (20) Business Day period.
(c)    The Company shall not effect any public offering of its securities during any Sales Blackout Period.
SECTION 4.4    Qualification for Rule 144 Sales.  The Company will use commercially reasonable efforts to comply with the filing requirements described in Rule 144(c)(1) so as to enable the Investors to sell Eligible Securities without registration under the Securities Act and, upon the written request of any Investor, the Company will deliver to such Investor a written statement as to whether it has complied with such filing requirements.
ARTICLE V
PREPARATION; REASONABLE INVESTIGATION

SECTION 5.1    Preparation; Reasonable Investigation.  In connection with the preparation and filing of each registration statement registering or offering Eligible Securities under the Securities Act, the Company will give the Investor, any Selling Investors and the underwriters, if any, and their respective counsel and accountants, drafts of such registration statement for their review and comment prior to filing and such reasonable and customary access to its books and records and such opportunities to discuss the business of the Company with its officers, counsel and the independent public accountants who have certified its financial statements as shall be necessary to conduct a reasonable investigation within the meaning of the Securities Act, provided that the Company may require them to enter into a customary confidentiality agreement.
ARTICLE VI
RESTRICTIONS ON PUBLIC SALE
SECTION 6.1    Restrictions on Public Sale.   
(d)    Notwithstanding any registration rights set forth in this Agreement, upon written notice to the Investors, the Investors shall, in the event (x) the Company is issuing equity securities to the public, or (y) any Qualifying Other Holder is proposing to sell Common Shares with an aggregate fair market value of at least $50,000,000, in each case in an underwritten offering, and, if requested in writing by the managing underwriter or underwriters for such underwritten offering, not effect (and sign a written commitment to the underwriter(s) (a “Lock-up Commitment”) to not effect) any public sale or distribution of Eligible Securities or any securities convertible into or exchangeable or exercisable for such Eligible

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 Securities, including a sale pursuant to Rule 144 (or any similar provision then in force) under the Securities Act, for a period commencing on the tenth (10th) business day prior to the date such underwritten offering commences (such offering being deemed to commence for this purpose on the later of the effective date for the registration statement for such offering or, if applicable, the date of the prospectus supplement for such offering) or, if later, the date of such written request of the underwriter(s), and ending after the earlier of (i) ninety (90) days after the closing of such underwritten offering and (ii) the date of the expiration of the lock-up imposed by the underwriter on the Company in respect of such offering, so long as the managing underwriter or underwriters obtains a written commitment of each Company trustee and executive officer and each Qualifying Other Holder to agree to the same restrictions.  Any notice delivered to the Investors pursuant to this Section 6.1(a) (an “Underwritten Offering Notice”) shall be delivered not less than five (5) business days prior to the date of the underwriting agreement for such offering.  
(b)    Upon receipt by the Investors of an Underwritten Offering Notice, the Investors shall be entitled by written notice delivered to the Company (an “Inclusion Notice”) not later than two (2) business days after the receipt of such Underwritten Offering Notice to require the Company to use its commercially reasonable efforts to include such number of Eligible Securities of the Investors in such underwritten offering as the Investors shall request; provided, however, that the Investors shall not be entitled to include Eligible Securities in an offering pursuant to clause (y) of Section 6.1(a) unless the Investors beneficially own Common Shares representing at least five (5) percent of the Company’s outstanding Common Shares (calculated with Class A and Class B Units of the Partnership deemed to be Common Shares) and are proposing to register Common Shares with an aggregate fair market value of at least $50,000,000.  The Company will not be required to include such Eligible Securities pursuant to this Section 6.1 if the Company shall have been advised in writing (with a copy to the Selling Investors) by a nationally recognized independent investment banking firm selected by the Company to act as lead underwriter in connection with the public offering of securities by the Company that, in such firm’s opinion, the inclusion of the Eligible Securities requested to be included in such offering would materially and adversely affect the Company’s offering of securities, in which event the aggregate number of Eligible Securities requested to be included in such offering by the Investors shall be reduced such that securities are included as follows: (1) first, 100% of the securities that the Company proposes to sell (if the Underwritten Offering Notice is being delivered pursuant to clause (x) of Section 6.1(a)), (2) second, and only if all the securities referred to in clause (1) have been included (if applicable), the number of securities eligible for inclusion in such offering that all others Persons have requested to include, allocated pro rata among such Persons according to the total number of eligible securities requested to be offered by such Person.
(c)    The Company shall not deliver more than two Underwritten Offering Notices pursuant to clause (x) of Section 6.1(a)) nor more than two Underwritten Offering Notices pursuant to clause (y) of Section 6.1(a) in any twelve (12) consecutive month period and shall not restrict sales and distributions of Eligible Securities by the Investors pursuant to Section 6.1(a)(x) for more than one hundred (100) days in the aggregate in any twelve (12) consecutive month period or pursuant to Section 6.1(a)(y) for more than one hundred (100) days in the aggregate in any twelve (12) consecutive month period; provided, however, that any restricted period in respect of an Underwritten Offering shall not count toward this limitation if the Investors are not prevented from selling any of the Eligible Securities they elected to sell in such Underwritten Offering.  With respect to a Company issuance of equity securities to the public, the Investors shall not deliver more than two Inclusion Notices in any twelve (12) consecutive month period if they are able to sell not less than fifty percent (50%) of the Eligible Securities that they request to sell in the underwritten offering to which such notice relates.  
(d)    In the event of a sale of Common Shares by the Investors in an underwritten offering pursuant to Section 4.2, if requested in writing by the managing underwriter or underwriters for 

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such underwritten offering, the Company shall use reasonable best efforts to cause its trustees and executive officers and each Qualifying Other Holder to sign a Lock-Up Commitment to the underwriter(s) to not effect any public sale or distribution of Common Shares or any securities convertible into or exchangeable or exercisable for Common Shares, including a sale pursuant to Rule 144 (or any similar provision then in force) under the Securities Act, for a period commencing on the tenth (10th) day prior to the date such underwritten offering commences (such offering being deemed to commence for this purpose on the later of the effective date for the registration statement for such offering or, if applicable, the date of the prospectus supplement for such offering) or, if later, the date of such written request of the underwriter(s), and ending no later than the earlier of (i) ninety (90) days after the closing of such underwritten offering and (ii) the date of the expiration of the lock-up imposed on the Investors in respect of such offering; provided, however, that such obligations of the Company with respect to any Qualifying Other Holder shall not apply unless such Qualifying Other Holder is permitted to participate in the underwritten offering in accordance with Section 2.2; and provided, further, that in any twelve (12) consecutive month period, the Company shall not be required to use reasonable best efforts to impose such restrictions more than two (2) times or for more than one hundred (100) days in the aggregate.  Notwithstanding anything to the contrary in this Section 6.1, (x) if the Investors fail to sign a Lock-Up Commitment in accordance with, and subject to the terms and limitations set forth in, Section 6.1(a), then the Company’s obligations under this Section 6.1(d) shall terminate, and (y) if a Qualifying Other Holder fails to sign a Lock-Up Commitment in accordance with, and subject to the terms and limitations set forth in, this Section 6.1(d), then the Investors’ obligations under Section 6.1(a)(y) shall terminate.
ARTICLE VII
INDEMNIFICATION AND CONTRIBUTION

SECTION 7.1    Indemnification.  (a)  In the event of any registration of Eligible Securities hereunder, the Company and the Partnership jointly and severally will, and hereby do, indemnify and hold harmless, each Selling Investor, its respective directors, trustees, officers, partners, agents, and employees and each other Person who participates as an underwriter in the offering or sale of such securities and each other Person, if any, who controls each such Selling Investor or any such underwriter within the meaning of the Securities Act, against any and all losses, claims, damages, expenses or liabilities, joint or several, actions or proceedings (whether commenced or threatened) in respect thereof, to which each such indemnified party may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages, expenses or liabilities (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in any registration statement contemplated hereby under which Eligible Securities were registered under the Securities Act, any preliminary prospectus, final prospectus or summary prospectus contained therein, or any amendment or supplement thereto, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein in light of the circumstances in which they were made not misleading, and the Company or the Partnership will reimburse each such Selling Investor and each such director, trustee, officer, partner, agent, or employee, underwriter and controlling person for any legal or any other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, expense, liability, action, or proceeding; provided, however, that the Company and the Partnership shall not be liable in any such case to the extent that any such loss, claim, damage, expense or liability (or action or proceeding in respect thereof) arises out of or is based upon an untrue statement or alleged 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 in reliance upon and in conformity with written information furnished to the Company by or on behalf of such Selling Investor or underwriter.
(b)    Each Selling Investor severally will, and hereby does, indemnify and hold harmless the Company, its trustees, its officers, employees, agents and  each person who participates as an underwriter 

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in the offering or sale of such securities, and each Person, if any, who controls the Company within the meaning of the Securities Act against any and all losses, claims, damages, expenses or liabilities, joint or several, actions or proceedings (whether commenced or threatened) in respect thereof, to which each such indemnified party may become subject under the Securities Act or otherwise insofar as such losses, claims, damages, expenses or liabilities (or actions or proceedings, whether commenced or threatened in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact in or omission or alleged omission to state a material fact in such registration statement, any preliminary prospectus, final prospectus or summary prospectus contained therein, or any amendment or supplement thereto, but only to the extent that such statement or omission was made in reliance upon and, in conformity with, written information furnished by or on behalf of such Selling Investor to the Company.
(c)    Promptly after receipt by any indemnified party hereunder of notice of the commencement of any action or proceeding involving a claim referred to in paragraphs (a) or (b) of this Section 7.1, the indemnified party will notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party will not relieve the indemnifying party from any liability which it may have to any indemnified party under paragraphs (a) or (b) of this Section 7.1 (except to the extent that is has been prejudiced in any material respect by such failure).  In case any such action, suit, claim or proceeding is brought against any indemnified party, the indemnifying party shall be entitled to participate therein and, to the extent it may elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof with counsel reasonably satisfactory to such indemnified party.  Notwithstanding the foregoing, the indemnified party shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such indemnified party unless (i) the employment of such counsel shall have been authorized in writing by the indemnifying party in connection with the defense of such suit, action, claim or proceeding, (ii) the indemnifying party shall not have employed counsel to take charge of the defense of such action, suit, claim or proceeding within a reasonable time after notice of commencement of the action, suit, claim or proceeding, or (iii) such indemnified party shall have reasonably concluded, based on the advice of counsel, that there may be defenses available to it which are different from or additional to those available to the indemnifying party which, if the indemnifying party and the indemnified party were to be represented by the same counsel, could result in a conflict of interest for such counsel or materially prejudice the prosecution of the defenses available to such indemnified party.  If any of the events specified in clauses (i), (ii) or (iii) of the preceding sentence shall have occurred or shall otherwise be applicable, then the reasonable fees and expenses of one counsel selected by a majority in interest of the indemnified parties shall be borne by the indemnifying party.  If, in any case specified in the foregoing clauses (i), (ii) or (iii), the indemnified party employs separate counsel, the indemnifying party shall not have the right to direct the defense of such action, suit, claim or proceeding on behalf of the indemnified party.  Anything in this paragraph to the contrary notwithstanding, an indemnifying party shall not be liable for the settlement of any action, suit, claim or proceeding effected without its prior written consent (which consent in the case of an action, suit, claim or proceeding exclusively seeking monetary relief shall not be unreasonably withheld or delayed).  Such indemnification shall remain in full force and effect irrespective of any investigation made by or on behalf of an indemnified party.
(d)    If for any reason the indemnity under this Section 7.1 is unavailable or is insufficient to hold harmless any indemnified party under paragraphs (a) or (b) of this Section 6.1, then the indemnifying parties shall contribute to the amount paid or payable to the indemnified party as a result of any loss, claim, expense, damage or liability (or actions or proceedings, whether commenced or threatened, in respect thereof), and legal or other expenses reasonably incurred by the indemnified party 

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in connection with investigating or defending any such loss, claim, expense, damage, liability, action or proceeding, in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and the indemnified party on the other.  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 the Company or the Selling Investor and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission.  If, however, the allocation provided in the second preceding sentence is not permitted by applicable law or provides a lesser sum to the indemnified party than the amount hereinbefore calculated, then the indemnifying party shall contribute to the amount paid or payable by the indemnified party in such proportion as is appropriate to reflect not only such relative fault but also the relative benefits of the indemnifying party and the indemnified party as well as any other relevant equitable considerations.  The parties hereto agree that it would not be just and equitable if contributions pursuant to this paragraph (d) of Section 7.1 were to be 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 sentences of this paragraph (d) of Section 7.1.
(e)    Notwithstanding any other provision of this Section 7.1, to the extent that any director, trustee, officer, partner, agent, employee, or other representative (current or former) of any indemnified party is a witness in any action or proceeding, the indemnifying party agrees to pay to the indemnified party all expenses reasonably incurred by, or on the behalf of, the indemnified party and such witness in connection therewith.
(f)    All legal and other expenses reasonably incurred by or on behalf of any indemnified party in connection with investigating or defending any loss, claim, expense, damage, liability, action or proceeding which are to be borne by the indemnifying party pursuant to this Section 7.1 shall be paid by the indemnified party in advance of the final disposition of such investigation, defense, action or proceeding within thirty (30) days after the receipt by the indemnifying party of a statement or statements from the indemnified party requesting from time to time such payment, advance or advances.  The entitlement of each indemnified party to such payment or advancement of expenses shall include those incurred in connection with any action or proceeding by the indemnified party seeking an adjudication or award in arbitration pursuant to this Section 7.1.  Such statement or statements shall reasonably evidence such expenses incurred by the indemnified party in connection therewith.
(g)    The termination of any proceeding by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, adversely affect the rights of any indemnified party to indemnification hereunder or create a presumption that any indemnified party violated any federal or state securities laws.
(h)    (i)  In the event that advances are not made pursuant to this Section 7.1 or payment has not otherwise been timely made, each indemnified party shall be entitled to seek a final adjudication in an appropriate court of competent jurisdiction of the entitlement of the indemnified party to indemnification or advances hereunder.
(ii)    The Company, the Partnership and the Selling Investors agree that they shall be precluded from asserting that the procedures and presumptions of this Section 7.1 are not valid, binding and enforceable.  The Company, the Partnership and the Selling Investors further agree to stipulate in any such court that the Company, the Partnership and the Selling Investors are bound by all the provisions of this Section 7.1 and are precluded from making any assertion to the contrary.

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(iii)    To the extent deemed appropriate by the court, interest shall be paid by the indemnifying party to the indemnified party at a reasonable interest rate for amounts which the indemnifying party has not timely paid as the result of its indemnification and contribution obligations hereunder.
(i)    In the event that any indemnified party is a party to or intervenes in any proceeding to which the validity or enforceability of this Section 7.1 is at issue or seeks an adjudication to enforce the rights of any indemnified party under, or to recover damages for breach of, this Section 7.1, the indemnified party, if the indemnified party prevails in whole in such action, shall be entitled to recover from the indemnifying party and shall be indemnified by the indemnifying party against, any expenses reasonably incurred by the indemnified party.  If it is determined that the indemnified party is entitled to indemnification for part (but not all) of the indemnification so requested, expenses incurred in seeking enforcement of such partial indemnification shall be reasonably prorated among the claims, issues or matters for which the indemnified party is entitled to indemnification and for such claims, issues or matters for which the indemnified party is not so entitled.
(j)    The indemnity agreements contained in this Section 7.1 shall be in addition to any other rights (to indemnification, contribution or otherwise) which any indemnified party may have pursuant to law or contract and shall remain operative and in full force and effect regardless of any investigation made or omitted by or on behalf of any indemnified party and shall survive the transfer of any Eligible Securities by any Investor.
ARTICLE VIII
BENEFITS OF REGISTRATION RIGHTS

SECTION 8.1    Benefits of Registration Rights.  The Investors may severally or jointly exercise the registration rights hereunder in such proportion as they shall agree among themselves.  In the event that the Company receives conflicting direction from Investors with respect to actions to be taken hereunder, the direction of Franconia shall be the only direction the Company shall be required to follow.  
SECTION 8.2    General Partner of the Partnership.  The Company agrees not to take any action that results in another Person becoming general partner of the Partnership, by merger, agreement or otherwise, without causing such Person to expressly assume all of the obligations of the Company (including as general partner of the Partnership) hereunder.
ARTICLE IX
MISCELLANEOUS

SECTION 9.1    No Inconsistent Agreements.  Neither the Company nor the Partnership has entered and neither of them will enter into any agreement that is inconsistent with the rights granted to the Investors in this Agreement or that otherwise conflicts with the provisions hereof in any material respect.  The rights granted to the Investors hereunder do not in any material way conflict with and are not inconsistent with the rights granted to the holders of the Company’s or the Partnership’s other issued and outstanding securities under any such agreements.
SECTION 9.2    Captions.  The captions or headings in this Agreement are for convenience and reference only, and in no way define, describe, extend or limit the scope or intent of this Agreement.
SECTION 9.3    Severability.  If any clause, provision or section of this Agreement shall be invalid or unenforceable, the invalidity or unenforceability of such clause, provision or section shall 

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not affect the enforceability or validity of any of the remaining clauses, provisions or sections hereof to the extent permitted by applicable law.
SECTION 9.4    Governing Law.  This Agreement shall be construed and enforced in accordance with the internal laws of the State of New York, without reference to its rules as to conflicts or choice of laws.
SECTION 9.5    Modification and Amendment.  This Agreement may not be changed, modified, discharged or amended, except by an instrument signed by all of the parties hereto.
SECTION 9.6    Counterparts.  This Agreement may be executed in counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument.
SECTION 9.7    Entire Agreement.  This Agreement constitutes the entire agreement and understanding among the parties and supersedes any prior understandings and/or written or oral agreements among them respecting the subject matter herein.
SECTION 9.8    Assignment; Successors and Assigns.  Except as set forth in the next sentence, this Agreement and the rights granted hereunder may not be assigned by any Investor without the prior written consent of the Company, which may be granted or withheld by the Company in its sole and absolute discretion.  Each Investor will be permitted to assign its rights under this Agreement to its Permitted Transferees, so long as the Investor provides to the Company at least five (5) business days’ advance written notice of the transfer, and the transferee executes and delivers to the Company an instrument, in form and substance acceptable to the Company, agreeing to be bound by the terms of this Agreement as if it were an original party hereto.  This Agreement shall inure to the benefit of and be binding upon all of the parties hereto and their respective successors and permitted assigns.
SECTION 9.9    Notices.  All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (c) one (1) Business Day after deposit with a nationally recognized overnight courier, specifying next Business Day delivery, with written verification of receipt. All notices and other communications shall be sent to the Company or the Investors, respectively, at the address listed on the signature page hereof or at such other address as the Company or the Investors, respectively, may designate by ten (10) days’ advance written notice to the other parties hereto.
SECTION 9.10    Specific Performance.  The parties agree that, to the extent permitted by law, (i) the obligations imposed on them in this Agreement are special, unique and of an extraordinary character, and that in the event of a breach by any such party, damages would not be an adequate remedy; and (ii) each of the other parties shall be entitled to specific performance and injunctive and other equitable relief in addition to any other remedy to which it may be entitled at law or in equity.
[Signature pages follow]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement or caused this Agreement to be executed as of the day and year first above written.

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST, a Pennsylvania business trust 

By:    /s/_Bruce Goldman____________________
Name: Bruce Goldman
Title: Executive Vice President, General Counsel and Secretary

200 South Broad Street 
Philadelphia, Pennsylvania 19102-3803 
Attn:         Bruce Goldman 
Phone:     215-875-0780 
Email:     goldmanb@preit.com 

with a copy to:     

Wachtell, Lipton, Rosen & Katz
51 West 52nd Street
New York, New York  10019 
Attn:     Robin Panovka
Karessa L. Cain
Phone:      212-403-1000 
Email:     RPanovka@wlrk.com
      KLCain@wlrk.com  

[Signatures continued on next page]

Springfield Town Center
Registration Rights Agreement

FRANCONIA TWO, L.P., a Virginia limited partnership

		
	By:
	Franconia GP LLC, a Delaware limited liability company

		
	By:
	/s/_Alan Rice_____

Name: Alan Rice
Title: Authorized Signatory

c/o Vornado Realty Trust
888 Seventh Avenue
New York, New York 10019 
Attn.: Executive Vice President – Co-Head of Acquisitions and Capital Markets

with copies to:

Vornado Realty Trust
240 Route 4 East
Paramus, New Jersey  07652
Attn.: Executive Vice President – Finance and Chief  
Administrative Officer

Vornado Realty Trust
888 Seventh Avenue
New York, New York 10019
Attn.: Corporation Counsel

Sullivan & Cromwell LLP
125 Broad Street
New York, New York 10004
Attn.: William G. Farrar

[Signatures continued on next page]

Springfield Town Center
Registration Rights Agreement

Solely for purposes of Section 7.1:

PREIT ASSOCIATES, L.P., a Delaware limited partnership

By:    /s/_Bruce Goldman___________
Name: Bruce Goldman
Title: Executive Vice President, General Counsel and Secretary

c/o Pennsylvania Real Estate Investment Trust
200 South Broad Street
Philadelphia, Pennsylvania 19102-3803
Attn:     Bruce Goldman 
Phone:     215-875-0780 
Email:     goldmanb@preit.com

with a copy to:     

Wachtell, Lipton, Rosen & Katz
51 West 52nd Street 
New York, New York  10019
Attn:     Robin Panovka
Karessa L. Cain
Phone:      212-403-1000 
Email:     RPanovka@wlrk.com
  KLCain@wlrk.com 

Springfield Town Center
Registration Rights Agreement

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