Document:

exv10w3

 

Exhibit 10.3

FORM OF

TAX RECEIVABLE AGREEMENT

     This TAX RECEIVABLE AGREEMENT (this “Agreement”) is dated as of ___, 2007,
by and between HFF, Inc., a Delaware corporation (“HFF”), and HFF Holdings, LLC, a Delaware limited
liability company (“Holdings”).

     WHEREAS, on the date hereof, HFF, Holdings, HFF LP Acquisition LLC, a Delaware limited
liability company (“Acquisition”), HFF Partnership Holdings LLC, a Delaware limited
liability company (“Holdco”), and Holliday GP Corp., a Delaware corporation, entered into
that certain Sale and Merger Agreement (the “Sale and Merger Agreement”); and

     WHEREAS, Acquisition, a wholly-owned subsidiary of Holdings, and Holdco, a wholly-owned
subsidiary of HFF, are each treated as disregarded entities for U.S. Federal income tax purposes;

     WHEREAS, pursuant to the Sale and Merger Agreement, certain membership interests in Holliday
Fenoglio Fowler, L.P., a Texas limited partnership (“HFF, L.P.”), HFF Securities L.P., a
Delaware limited partnership (“HFFS”, and together with HFF, L.P., referred to herein as
the “Opcos”), have been or are being sold by Acquisition to Holdco for cash (the
“Original Sale”); and

     WHEREAS, Holdings will have the right, exercisable on behalf of Holdings’ members (the
“Members”), from time to time as provided in the Sale and Merger Agreement, to exchange
membership interests in the Opcos for shares of Class A Common Stock of HFF in transactions that
are intended to result in the recognition of gain (or loss) for U.S. Federal income tax purposes by
Holdings and the Members who initiate such exchanges (each such Member being an “Exchange
Member” and each such transaction being a “Taxable Exchange”);

     WHEREAS, the Opcos shall each have in effect an election under Section 754 of the Code (as
defined herein) for the Taxable Year (as defined herein) in which the Original Sale occurs, which
election will result in an adjustment to HFF’s share of the tax basis of the assets owned by the
Opcos as of the Original Sale Date (such assets and any asset whose tax basis is determined, in
whole or in part, by reference to the adjusted basis of any such asset, the “Original
Assets”) by reason of the Original Sale;

     WHEREAS, each of the Opcos will have in effect an election under Section 754 of the Code for
each Taxable Year in which any Taxable Exchange occurs, which election will result in an adjustment
to HFF’s share of the tax basis of the assets owned by the Opcos as of the date of any such Taxable
Exchange; and

     WHEREAS, the income, gain, loss, expense and other Tax (as defined herein) items of the Opcos
and HFF will be affected by the Basis Adjustments (as defined herein) and Imputed Interest (as
defined herein); and

 

 

     WHEREAS, the parties to this Agreement agree that certain payments shall be made by HFF to
Holdings based on the reduction of HFF’s liability for Covered Taxes (as defined herein) arising
from the Basis Adjustments and Imputed Interest.

     NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements
set forth herein, and intending to be legally bound hereby, the parties hereto agree as follows:

ARTICLE I

Definitions

     Definitions. For purposes of this Agreement, the terms set forth in this Article I
shall have the following meanings (such meanings to be equally applicable to both the singular and
plural forms of the terms defined).

     “Acquisition” is defined in the recitals.

     “Advisory Firm” means Sisterson & Co. LLP (and any successor firm) or such other
accounting or law firm selected by the Audit Committee that is recognized as being expert in
Covered Tax matters.

     “Advisory Firm Letter” shall mean a letter from the Advisory Firm stating that the
relevant schedule, notice or other information required under this Agreement to be provided by HFF
to Holdings (and all supporting schedules and work papers) were prepared in a manner consistent
with the terms of this Agreement and, to the extent not expressly provided for in this Agreement,
on a reasonable basis in light of the facts and law in existence on the date such schedule, notice
or other information is delivered to Holdings.

     “Agreed Rate” means LIBOR as adjusted from time to time plus 50 basis points.

     “Agreement” is defined in the preamble.

     “Amended Tax Benefit Schedule” is defined in Section 2.05(b) of this Agreement.

     “Audit Committee” means the audit committee of the board of directors of HFF.

     “Bank of America Loan” means that certain term loan in the original principal amount
of $60 million, comprising a portion of a credit facility originated by Bank of America, NA, as
administrative agent, to HFF, L.P., on March 29, 2006, as guaranteed by Holdings, Holliday GP Corp.
and Acquisition.

     “Basis Adjustments” means the adjustments to the tax basis of the Opcos’ assets
allocable to HFF (i) under Sections 743(b) and 754 of the Code and the comparable sections of

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U.S. state and local income and franchise Tax law as a result of the Original Sale, (ii) under
Section 743(b) and 754 of the Code and the comparable sections of U.S. state and local income and
franchise Tax law as a result of any Taxable Exchange and (iii) under Sections 743(b) and 754 as a
result of any payments under this Agreement.

     “Business Day” means any calendar day that is not a Saturday, Sunday or other calendar
day on which banks are required or authorized to be closed in the City of New York.

     “Change Notice” is defined in Section 3.03 of this Agreement.

     “Code” means the United State Internal Revenue Code of 1986, as amended.

     “Covered Taxable Year” means any Taxable Year of HFF ending after the Original Sale
Date.

     “Covered Taxes” means U.S. Federal Income Taxes and U.S. state and local income and
franchise Taxes imposed on or based upon net income.

     “Determination” shall have the meaning ascribed to such term in Section 1313(a) of the
Code or similar provision of state or local income or franchise Tax law, as applicable.

     “Exchange Assets” means the assets owned by the Opcos as of an applicable Exchange
Date (and any asset whose tax basis is determined, in whole or in part, by reference to the
adjusted basis of any such asset).

     “Exchange Basis Schedule” is defined in Section 2.04(a) of this Agreement.

     “Exchange Date” means the date on which any Taxable Exchange is effected.

     “Exchange Member” is defined in the recitals.

     “Expert” is defined in Section 6.09 of this Agreement.

     “Federal Income Tax” means any tax imposed under Subtitle A of the Code or any other
provision of U.S. Federal income tax law (including, without limitation, the taxes imposed by
Sections 11, 55, 59A, and 1201(a) of the Code), and any interest, additions to tax or penalties
applicable or related to such tax.

     “Governmental Entity” means any federal, state, local or provincial government or any
court of competent jurisdiction, administrative agency or commission or other governmental
authority or instrumentality.

     “HFF” is defined in the preamble.

     “HFF, L.P.” is defined in the recitals.

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     “HFFS” is defined in the recitals.

     “Holdings” is defined in the preamble.

     “Holdings Operating Agreement” means the Operating Agreement of Holdings as of the
date hereof and as amended thereafter.

     “Hypothetical Tax Basis” means, with respect to any asset at any time, the tax basis
that such asset would have at such time if no Basis Adjustments had been made as a result of the
Original Sale or an applicable Taxable Exchange, as the case may be.

     “Hypothetical Tax Liability” means, with respect to any Covered Taxable Year, the
liability for Covered Taxes of HFF using the same methods, elections, conventions and similar
practices used on the actual Tax Returns of HFF, but using the Hypothetical Tax Basis instead of
the actual tax basis of each relevant asset and excluding any deduction attributable to the Imputed
Interest.

     “Imputed Interest” shall mean any interest imputed under Section 1272, 1274 or 483 or
other provision of the Code and any similar provision of applicable U.S. state or local income or
franchise Tax law with respect to HFF’s payment obligations under this Agreement.

     “IRS” means the U.S. Internal Revenue Service.

     “LIBOR” means, for each month (or portion thereof) during any period, an interest rate
per annum equal to the rate per annum reported, on the date two days prior to the first day of such
month (or the first preceding LIBOR Business Day if such date is not a LIBOR Business Day) , on the
Telerate Page 3750 (or if such screen shall cease to be publicly available, as reported on Reuters
Screen page “LIBO” or by any other publicly available source of such market rate) for London
interbank offered rates for U.S. dollar deposits for such month (or portion thereof).

     “LIBOR Business Day” means any day that is a Business Day and on which dealings in
deposits in United States dollars are transacted in the London interbank market.

     “Members” is defined in the recitals.

     “Opcos” is defined in the recitals.

     “Original Assets” is defined in the recitals.

     “Original Sale” is defined in the recitals.

     “Original Sale Basis Schedule” is defined in Section 2.02 of this Agreement.

     “Original Sale Date” means the date on which the Original Sale is effected.

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     “Person” means and includes any individual, firm, corporation, partnership (including,
without limitation, any limited, general or limited liability partnership), company, limited
liability company, trust, joint venture, association, joint stock company, unincorporated
organization or similar entity or Governmental Entity.

     “Proceeding” is defined in Section 6.08 of this Agreement.

     “Realized Tax Benefit” means, for a Covered Taxable Year, the excess, if any, of the
Hypothetical Tax Liability over the actual liability for Covered Taxes of HFF for such Covered
Taxable Year with respect to the Original Sale and each Taxable Exchange as determined under
Article II of this Agreement. If all or a portion of the actual tax liability for Covered Taxes as
reported for a Covered Taxable Year is adjusted or proposed to be adjusted as a result of an audit
by a Taxing Authority of any Covered Taxable Year or an amended return, such liability shall not be
included in determining the Realized Tax Benefit or the Realized Tax Detriment unless and until
there has been a Determination and shall include interest under applicable law.

     “Realized Tax Detriment” means, for a Covered Taxable Year, the excess, if any, of the
actual liability for Covered Taxes of HFF over the Hypothetical Tax Liability for such Covered
Taxable Year with respect to the Original Sale and each Taxable Exchange as determined under
Article II of this Agreement. If all or a portion of the actual tax liability for Covered Taxes as
reported for a Covered Taxable Year is adjusted or proposed to be adjusted as a result of an audit
by a Taxing Authority of any Covered Taxable Year or an amended return, such liability shall not be
included in determining the Realized Tax Benefit or Realized Tax Detriment unless and until there
has been a Determination (or amendment of a Tax Benefit Schedule pursuant to Section 2.05 (b) of
this Agreement) and shall include interest under applicable law.

     “Reconciliation Procedures” shall mean those procedures set forth in Section 6.09 of
this Agreement.

     “Senior Obligations” is defined in Section 4.01 of this Agreement.

     “Subsidiary” means any entity in which HFF, directly or indirectly, possesses fifty
percent (50%) or more of the total combined voting power of all classes of its stock, membership
interests, partnership interests or other ownership interests, other than the Opcos and their
subsidiaries.

     “Tax Benefit Payment” is defined in Section 3.01(b) of this Agreement.

     “Tax Benefit Schedule” is defined in Section 2.05(a) of this Agreement.

     “Taxable Exchange” is defined in the recitals.

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     “Taxable Year” means a taxable year as defined in Section 441(b) of the Code or
comparable section of U.S. state or local income or franchise Tax law, as applicable (and,
therefore, for the avoidance of doubt, may include a period of less than 12 months) for which a Tax
Return is made.

     “Taxes” means (i) all forms of taxation or duties imposed, or required to be collected
or withheld, including, without limitation, charges, together with any related interest, penalties
or other additional amounts, (ii) liability for the payment of any amount of the type described in
the preceding clause (i) as a result of being a member of an affiliated, consolidated, combined or
unitary group, and (iii) liability for the payment of any amounts as a result of being party to any
tax sharing agreement (other than this Agreement) or as a result of any express or implied
obligation to indemnify any other person with respect to the payment of any amount described in the
immediately preceding clauses (i) or (ii); and “Tax” means any of the Taxes.

     “Tax Law” means the Code, the applicable Treasury Regulations under the Code
(including temporary and proposed regulations), official IRS revenue rulings, revenue procedures
and other official announcements, applicable case law and legislative history and comparable
provisions of statutory, administrative and judicial law that apply to U.S. state and local income
and franchise Taxes.

     “Tax Return” means any return, filing, report, questionnaire, information statement or
other document regarding Covered Taxes required to be filed, including amended returns that may be
filed, for any taxable period with any Taxing Authority (whether or not a payment is required to be
made with respect to such filing).

     “Taxing Authority” means the IRS and any other state, local, foreign or other
Governmental Entity responsible for the administration of Taxes.

     “Sale and Merger Agreement” is defined in the recitals.

ARTICLE II

Determination of Realized Tax Benefit or Realized Tax Detriment

     SECTION 2.01. Original Sale Date Basis Adjustments. HFF and Holdings hereby agree
that (i) Holdings shall duly report its recognized gain on account of the Original Sale for
purposes of its Members’ Covered Taxes, and (ii) HFF shall duly report and shall cause the Opcos
duly to report HFF’s share of the basis in the Original Assets as increased by the excess of the
Original Sale proceeds over HFF’s proportionate share of the basis of the Original Assets on the
Original Sale Date, in accordance with the Basis Adjustments attributable to the Original Sale
including, without limitation, any Basis Adjustments attributable to amounts paid or caused to be
paid by HFF in the Original Sale and used to pay off the Bank of America Loan. HFF and Holdings
shall treat such gain and Basis Adjustments as occurring on the Original Sale Date unless there is
a Determination to the contrary.

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     SECTION 2.02. (a) Original Sale Basis Schedule. Within 180 calendar days after the
Original Sale Date, HFF shall deliver to Holdings a schedule (the “Original Sale Basis
Schedule”) prepared by the Advisory Firm and approved by the Audit Committee that shows, in
reasonable detail, for U.S. Federal income tax purposes, (i) the actual tax basis as of the
Original Sale Date of the Original Assets, (ii) the Basis Adjustments with respect to the Original
Assets as a result of the Original Sale and (iii) the period or periods, if any, over which the
Original Assets are amortizable or depreciable for U.S. Federal income tax purposes. If the
Advisory Firm thinks it is necessary or appropriate to engage a valuation or other expert to assist
them in preparing the Original Sale Basis Schedule, it may do so, as approved by the Audit
Committee. At the time HFF delivers the Original Sale Basis Schedule to Holdings, it shall (x)
deliver to Holdings work papers providing reasonable detail regarding the preparation of the
Original Sale Basis Schedule and (y) allow Holdings reasonable access to the appropriate
representatives at HFF and its Subsidiaries, the Opcos and the Advisory Firm in connection with its
review of such schedule. The Original Sale Basis Schedule shall become final and binding on the
parties unless Holdings, within 30 calendar days after receiving such Original Sale Basis Schedule,
provides HFF with written notice of a material objection or objections to such Original Sale Basis
Schedule made in good faith. If the parties, after negotiating in good faith, are unable to
resolve the issues raised in such notice within 60 calendar days after such Original Sale Basis
Schedule was delivered to Holdings, HFF and Holdings shall employ the Reconciliation Procedures.

          (b) Amended Original Sale Basis Schedule. The Original Sale Basis Schedule shall be
amended from time to time by HFF with the consent of the Audit Committee (i) in connection with a
Determination, (ii) to correct material inaccuracies to the Original Sale Basis Schedule or (iii)
to comply with the Expert’s determination under the Reconciliation Procedures. At the time HFF
delivers such amended Original Sale Basis Schedule to Holdings it shall (x) deliver to Holdings
work papers providing reasonable detail regarding the preparation of the amended Original Sale
Basis Schedule and an Advisory Firm Letter supporting and explaining the reason or reasons for such
amended Original Sale Basis Schedule and (y) allow Holdings reasonable access to the appropriate
representatives at HFF and its Subsidiaries, the Opcos and the Advisory Firm in connection with its
review of such schedule. The amended Original Sale Basis Schedule shall become final and binding
on the parties unless Holdings, within 30 calendar days after receiving such amended Original Sale
Basis Schedule, provides HFF with notice of a material objection or objections to such amended
Original Sale Basis Schedule made in good faith. If the parties, after negotiating in good faith,
are unable to resolve the issues raised in such notice within 60 calendar days after such amended
Original Sale Basis Schedule was delivered to Holdings, HFF and Holdings shall employ the
Reconciliation Procedures.

     SECTION 2.03. Basis Adjustments Attributable to a Taxable Exchange. Pursuant to each
Taxable Exchange, Holdings will exchange with HFF the portion of Holdings’ interests in the Opcos
attributable to that portion of such Exchange Member’s interest in Holdings specified by such
Exchange Member upon initiation of such Taxable Exchange in accordance with the Holdings Operating
Agreement in exchange for Class A Common shares of HFF and Holdings will, at Holdings’ option,
either (x) distribute such Class A Common Stock to the Exchange Member, or (y) sell such Class A
Common Stock and distribute the sale proceeds to the

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Exchange Member, in either case in redemption of the specified portion of such Exchange
Member’s membership interest in Holdings. HFF and Holdings hereby agree that Holdings shall
recognize gain (or loss) for U.S. Federal income tax purposes on the Exchange Date under the Code
in an amount equal to the excess of (i) the fair market value of the HFF shares received by
Holdings in the Taxable Exchange over (ii) Holdings’ basis in its interests in the Opcos
transferred to HFF pursuant to the Taxable Exchange. Any such gain (or loss) recognized by
Holdings shall be allocated by Holdings to the Exchange Member who initiated the Taxable Exchange.
For purposes of this Agreement, HFF and Holdings hereby agree that the fair market value of the HFF
shares received in the Taxable Exchange shall be the closing trading price of such shares on the
Exchange Date. HFF and Holdings further agree that, with respect to each Taxable Exchange, HFF’s
share of the basis in the Exchange Assets shall be increased by the excess, if any, of (i) the fair
market value of the HFF shares transferred to the Exchange Member pursuant to the Taxable Exchange
over (ii) HFF’s proportionate share of the basis of the Exchange Assets immediately after the
Taxable Exchange attributable to the interests in the Opcos exchanged. HFF and the Exchange
Members, pursuant to the Holdings Operating Agreement, will treat such gain and basis Adjustments
as occurring entirely on the Exchange Date unless there is a Determination to the contrary.

     SECTION 2.04. (a) Exchange Basis Schedule. Within 180 calendar days after the end of
a Covered Taxable Year in which any Taxable Exchange has been effected, HFF shall deliver to
Holdings a schedule (the “Exchange Basis Schedule”) approved by the Audit Committee that
shows, in reasonable detail, for U.S. Federal income tax purposes, (i) the actual tax basis as of
each applicable Exchange Date in such Covered Taxable Year of the Exchange Assets, (ii) the Basis
Adjustments with respect to the Exchange Assets as a result of each Taxable Exchange effected in
such Covered Taxable Year, and (iii) the period or periods, if any, over which the Exchange Assets
attributable to each Taxable Exchange are amortizable or depreciable. If the Advisory Firm thinks
it is necessary or appropriate to engage a valuation or other expert to assist them in preparing
the Exchange Basis Schedule, it may do so, as approved by the Audit Committee. At the time HFF
delivers the Exchange Basis Schedule to Holdings, it shall (x) deliver to Holdings work papers
providing reasonable detail regarding the preparation of the Exchange Basis Schedule and an
Advisory Firm Letter supporting such Exchange Basis Schedule and (y) allow Holdings reasonable
access to the appropriate representatives at HFF and its Subsidiaries, the Opcos and the Advisory
Firm in connection with its review of such schedule. The Exchange Basis Schedule shall become
final and binding on the parties unless Holdings, within 30 calendar days after receiving such
Exchange Basis Schedule, provides HFF with notice of a material objection or objections to such
Exchange Basis Schedule made in good faith. If the parties, after negotiating in good faith, are
unable to resolve the issues raised in such notice within 60 calendar days after such Exchange
Basis Schedule was delivered to Holdings, HFF and Holdings shall employ the Reconciliation
Procedures.

          (b) Amended Exchange Basis Schedule. The Exchange Basis Schedule shall be amended
from time to time by HFF with the consent of the Audit Committee (i) in connection with a
Determination, (ii) to correct material inaccuracies to the original Exchange Basis Schedule or
(iii) to comply with the Expert’s determination under the Reconciliation Procedures.

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At the time HFF delivers such amended Exchange Basis Schedule to Holdings it shall (x) deliver
to Holdings work papers providing reasonable detail regarding the preparation of the amended
Exchange Basis Schedule and an Advisory Firm Letter supporting and explaining the reason or reasons
for such amended Exchange Basis Schedule and (y) allow Holdings reasonable access to the
appropriate representatives at HFF and its Subsidiaries, the Opcos and the Advisory Firm in
connection with its review of such schedule. The amended Exchange Basis Schedule shall become
final and binding on the parties unless Holdings, within 30 calendar days after receiving such
amended Exchange Basis Schedule, provides HFF with notice of a material objection to such amended
Exchange Basis Schedule made in good faith. If the parties, after negotiating in good faith, are
unable to resolve the issues raised in such notice within 60 calendar days after such amended
Exchange Basis Schedule was delivered to Holdings, HFF and Holdings shall employ the Reconciliation
Procedures.

     SECTION 2.05. (a) Tax Benefit Schedule. Within 30 calendar days after filing the U.S.
Federal Income Tax Return of HFF for the relevant Covered Taxable Year, HFF shall provide to
Holdings a schedule approved by the Audit Committee showing, in reasonable detail, the calculation
of HFF’s Realized Tax Benefit or Realized Tax Detriment for such Covered Taxable Year (the “Tax
Benefit Schedule”). At the time HFF delivers the Tax Benefit Schedule to Holdings it shall (i)
deliver to Holdings work papers providing reasonable detail regarding the preparation of the Tax
Benefit Schedule and an Advisory Firm Letter supporting such Tax Benefit Schedule and (ii) allow
Holdings reasonable access to the appropriate representatives at HFF and its Subsidiaries, the
Opcos and the Advisory Firm in connection with its review of such schedules. The Tax Benefit
Schedule shall become final and binding on the parties unless Holdings, within 30 calendar days
after receiving such Tax Benefit Schedules, provides HFF with notice of a material objection or
objections to such Tax Benefit Schedules made in good faith. If the parties, after negotiating in
good faith, are unable to resolve the issues raised in such notice within 60 calendar days after
such Tax Benefit Schedules were delivered to Holdings, HFF and Holdings shall employ the
Reconciliation Procedures.

          (b) Amended Tax Benefit Schedule. A Tax Benefit Schedule for any Covered Taxable Year
shall be amended from time to time by HFF with the consent of the Audit Committee (i) in connection
with a Determination affecting such Tax Benefit Schedule, (ii) to correct material inaccuracies in
the original Tax Benefit Schedule, (iii) to reflect a change in the Realized Tax Benefit or
Realized Tax Detriment for such Covered Taxable Year attributable to a carryback or carryforward of
a loss or other tax item to such Covered Taxable Year, (iv) to reflect a change in the Realized Tax
Benefit or Realized Tax Detriment for such Covered Taxable Year attributable to an amended tax
return filed for such Covered Taxable Year (provided, however, that such a change
attributable to an audit of a Tax Return by an applicable Taxing Authority shall not be taken into
account on an Amended Tax Benefit Schedule unless and until there has been a Determination with
respect to such change) or (v) to comply with the Expert’s determination under the Reconciliation
Procedures. At the time HFF delivers such an amended Tax Benefit Schedule pursuant to this Section
2.05(b) (an “Amended Tax Benefit Schedule”) to Holdings it shall (x) deliver to Holdings
work papers providing reasonable detail regarding the preparation of the Amended Tax Benefit
Schedule and an Advisory Firm Letter

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supporting and explaining the reason or reasons for such Amended Tax Benefit Schedule and (y)
allow Holdings reasonable access to the appropriate representatives at HFF and its Subsidiaries,
the Opcos and the Advisory Firm in connection with its review of such schedule. Such Amended Tax
Benefit Schedule shall become final and binding on the parties unless Holdings, within 30 calendar
days after receiving such Amended Tax Benefit Schedule, provides HFF with notice of a material
objection or objections to such Amended Tax Benefit Schedule made in good faith. If the parties,
after negotiating in good faith, are unable to resolve the issues raised in such notice within 60
calendar days after such Amended Tax Benefit Schedule was delivered to Holdings, HFF and Holdings
shall employ the Reconciliation Procedures.

          (c) Applicable Principles. The Realized Tax Benefit or Realized Tax Detriment for
each Covered Taxable Year is intended to reflect the decrease or increase in the actual Covered Tax
liability of HFF for such Covered Taxable Year attributable to Basis Adjustments and Imputed
Interest, determined using a “with and without” methodology. Carryovers or carrybacks of any tax
item attributable to Basis Adjustments or Imputed Interest (determined using such “with and
without” methodology) shall be considered to be subject to the Tax Law governing the use,
limitation and expiration of carryovers or carrybacks of the relevant type. If a carryover or
carryback of any tax item includes a portion that is attributable to Basis Adjustments or Imputed
Interest and another portion that is not, such portions shall be considered to be used or applied
in the order provided under applicable Tax Law using such “with and without” methodology or, if
applicable Tax Law does not specify the order in which the applicable tax attributes are to be used
or applied, then in proportion to the amount of each type of tax attribute. When there has been
one or more Taxable Exchanges in addition to the Original Sale that affect the Realized Tax Benefit
or Realized Tax Detriment for any Covered Taxable Year, the resulting decrease in the actual
Covered Tax liability of HFF attributable to each Taxable Exchange and the Original Sale shall be
determined on a pro rata basis proportionate to the amount of deductions attributable to each
Taxable Exchange and the Original Sale divided by the amount of deductions attributable to the
Original Sale and all such Taxable Exchanges.

ARTICLE III

Tax Benefit Payments

     SECTION 3.01. Payments. (a) Except as provided in Section 3.03, within three Business
days of the delivery of the Tax Benefit Schedule to Holdings for any Covered Taxable Year, HFF
shall pay to Holdings an amount equal to the Tax Benefit Payment (as defined below) for such
Covered Taxable Year. Each Tax Benefit Payment shall be made by wire transfer of immediately
available funds to the bank account of Holdings previously designated by Holdings to HFF. For the
avoidance of doubt, no Tax Benefit Payment shall be made in respect of estimated tax payments,
including, without limitation, estimated Federal Income Tax payments.

          (b) A “Tax Benefit Payment” shall equal (x) 85% of HFF’s Realized Tax Benefit, if any,
for a Covered Taxable Year, increased by 85% of the net increase to the Realized

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Tax Benefit and decreased by 85% of the Realized Tax Detriment for any prior Covered Taxable
Year as reflected on an Amended Tax Benefit Schedule for such prior Covered Taxable Year which
increase (or decrease) has not previously been taken into account plus (y) interest on the amount
determined in clause (x) at the Agreed Rate from August 15 of the year following the end of the
most recent Covered Taxable Year to the date of payment.

     SECTION 3.02. No Duplicative Payment. No duplicative payment of any Tax Benefit
Payment (including interest) shall be required under this Agreement.

     SECTION 3.03. Tax Uncertainty Escrow.

          (a) If HFF, its Subsidiaries or the Opcos receives a 30-day letter, a final audit report, a
statutory notice of deficiency or similar written notice from any Taxing Authority with respect to
the Tax treatment of the Original Sale or any Taxable Exchange or the determination of the tax
liability for Covered Taxes in any Covered Taxable Year (a “Change Notice”), which, if
sustained, would result in (i) a reduction in the amount of Realized Tax Benefit (or the increase
in the amount of Realized Tax Detriment) with respect to a Covered Taxable Year preceding the
taxable year in which the Change Notice is received or (ii) a reduction in the amount of Tax
Benefit Payments HFF would be required to pay to Holdings with respect to Covered Taxable Years
after and including the taxable year in which the Change Notice is received, prompt written notice
shall be given to Holdings.

          (b) If HFF receives a Change Notice and the Advisory Firm or another law firm or accounting
firm which is nationally recognized to have expertise regarding Covered Taxes concludes that there
is substantial uncertainty regarding a material amount of the Realized Tax Benefit for a Covered
Taxable Year (a “Tax Uncertainty Event”), HFF may elect to deposit up to 50% of the payment
that would otherwise be made pursuant to Section 3.01 of this Agreement in escrow. Such amount
shall be held in escrow until such Tax Uncertainty Event has been resolved, either as a result of
delivery of an opinion from a law firm or accounting firm that is nationally recognized as expert
in Covered Taxes matters that no such Tax Uncertainty Event exists or due to a Determination or
because the statute of limitations with respect to HFF’s Tax Return for such Covered Year has
expired without any challenge to the Realized Tax Benefit, as soon as practicable after which
resolution amounts in escrow shall be paid to the person or persons determined to be entitled to
such amounts, so that the escrow, and all accrued interest, shall, for example, be paid to Holdings
if it is determined that HFF was entitled to all of the originally determined Realized Tax Benefit,
or, if HFF is entitled to only a portion of the originally determined Realized Tax Benefit, the
amount of the escrow shall be paid so that Holdings shall receive the payment it would be entitled
to receive under Section 3.01 of this Agreement, along with a proportionate amount of the interest,
and the balance, including the remaining interest, in escrow shall be paid to HFF.

     SECTION 3.04. No Obligation of Holdings to Make Payments. For the avoidance of doubt,
Holdings has no obligation to make any payments to HFF pursuant to this Agreement.

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ARTICLE IV

Subordination and Late Payments

     SECTION 4.01. Subordination. Notwithstanding any other provision of this Agreement to
the contrary, any payment required to be made by HFF to Holdings under this Agreement shall rank
subordinate and junior in right of payment to any principal, interest or other amounts due and
payable in respect of any secured debt of HFF or any other debt instrument issued by HFF which
Holdings consents to treat as senior to Holdings’ right to payments under this Agreement
(“Senior Obligations”) and shall rank pari passu with all current or future unsecured
obligations of HFF that are not Senior Obligations.

     SECTION 4.02. Late Payments by HFF. The amount of any payment not made by any party
when due under the terms of this Agreement shall bear interest, computed at the Agreed Rate and
commencing from the date such payment is due until the date payment is made.

ARTICLE V

Tax Matters; Consistency; Cooperation

     SECTION 5.01. Holdings Participation In HFF Tax Matters. Except as otherwise provided
herein, HFF shall have responsibility for, and discretion over, all Tax matters concerning HFF and
the Opcos, including without limitation the preparation, filing or amending of any Tax Return and
defending, contesting or settling any issue pertaining to Taxes. Notwithstanding the foregoing,
HFF shall notify Holdings of, and keep Holdings reasonably informed with respect to, and Holdings
shall have the right to participate in and monitor (but, for the avoidance of doubt, not to
control) the portion of any audit of HFF by a Taxing Authority the outcome of which is reasonably
expected to affect Holdings’ rights or obligations under this Agreement. HFF shall provide to
Holdings reasonable opportunity to provide information and other input to HFF and its advisors
concerning the conduct of any such portion of such audits. HFF shall not settle or otherwise
resolve any audit or other challenge by a Taxing Authority relating to the Basis Adjustments or the
deduction of Imputed Interest or otherwise affecting the amount of a Realized Tax Benefit or
Realized Tax Detriment without the consent of the Audit Committee and Holdings, which consent
Holdings shall not unreasonably withhold, condition or delay. If the parties, after negotiating in
good faith, are unable to resolve whether such consent is being unreasonably withheld, conditioned
or delayed, HFF and Holdings shall employ the Reconciliation Procedures.

     SECTION 5.02. Consistency. Unless there is a Determination to the contrary, HFF
agrees to report and cause its Subsidiaries and the Opcos to report, and Holdings agrees to report,
and cause its Members to report for all U.S. Federal, state and local income and franchise Tax
purposes all Tax–related items relating to this Agreement (including without limitation the Basis
Adjustments, Imputed Interest and each Tax Benefit Payment) in a manner consistent with the Tax
Benefit Schedules, the Amended Tax Benefit Schedules and the terms of this Agreement. In the event
that an Advisory Firm is replaced with another firm acceptable to the Audit Committee,

-12-

 

such replacement Advisory Firm shall be required to perform its services under this Agreement
using procedures and methodologies consistent with those used by the previous Advisory Firm, unless
otherwise required by law or unless HFF, (as approved by the Audit Committee) and Holdings agree to
the use of other procedures and methodologies.

     SECTION 5.03. Cooperation. Holdings and HFF shall each (a) furnish in a timely manner
such non-privileged information, documents and other materials as the other party may reasonably
request for purposes of making any determination or computation necessary or appropriate under this
Agreement, preparing any Tax Return or contesting or defending any audit, examination or
controversy with any Taxing Authority, (b) make its employees reasonably available to the other
party and its representatives to provide explanations of documents and materials and such other
information as requesting party or its representative may reasonably request in connection with any
of the matters described in clause (a) above, and (c) reasonably cooperate with the other party in
connection with any such matter. Holdings shall cause its Subsidiaries, and HFF shall cause its
Subsidiaries and the Opcos, similarly to cooperate with the other party and to furnish
non-privileged information, documents and other materials in response to the other party’s
reasonable requests as provided in this Section 5.03.

ARTICLE VI

General Provisions

     SECTION 6.01. Notices. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be deemed duly given and received (a) on the
date of delivery if delivered personally, or by facsimile upon confirmation of transmission by the
sender’s fax machine if sent on a Business Day (or otherwise on the next Business Day) or (b) on
the first Business Day following the date of dispatch if delivered by a recognized next-day courier
service. All notices hereunder shall be delivered as set forth below, or pursuant to such other
instructions as may be designated in writing by the party to receive such notice:

if to HFF, to:

HFF, Inc.

429 Fourth Avenue

Suite 200

Pittsburgh, PA 15219

Attention: Chief Executive Officer

Facsimile No.: [•]

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

Dechert LLP

90 State House Square, 12th Floor

Hartford, CT 06103-3702

Attention: John J. Gillies, Esq.

-13-

 

Facsimile No.: (860) 524-3930

if to Holdings, to:

HFF, Inc.

429 Fourth Avenue

Suite 200

Pittsburgh, PA 15219

Attention: Chief Executive Officer

Facsimile No.: [•]

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

Dechert LLP

90 State House Square, 12th Floor

Hartford, CT 06103-3702

Attention: John J. Gillies, Esq.

Facsimile No.: (860) 524-3930

Any party may change its address or facsimile number by giving the other party written notice of
its new address or fax number in the manner set forth above.

     SECTION 6.02. Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement and shall become
effective when one or more counterparts have been signed by each of the parties and delivered to
the other parties, it being understood that all parties need not sign the same counterpart.

     SECTION 6.03. Entire Agreement; No Third Party Beneficiaries. This Agreement
constitutes the entire agreement and supersedes all prior agreements and understandings, both
written and oral, among the parties with respect to the subject matter hereof. This Agreement
shall be binding upon and inure solely to the benefit of each party hereto, the Members and their
respective successors and permitted assigns, and nothing in this Agreement, express or implied, is
intended to or shall confer upon any other Person any right, benefit or remedy of any nature
whatsoever under or by reason of this Agreement.

     SECTION 6.04. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York without giving effect to applicable principles
of conflict of laws.

     SECTION 6.05. Severability. If any term or other provision of this Agreement is
invalid, illegal or incapable of being enforced by any law or public policy, all other terms and
provisions of this Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any party. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in

-14-

 

good faith to modify this Agreement so as to effect the original intent of the parties as
closely as possible in an acceptable manner in order that the transactions contemplated hereby are
consummated as originally contemplated to the greatest extent possible.

     SECTION 6.06. Successors’ Assignment; Amendments. Holdings may not assign this
Agreement to any person without the prior written consent of HFF (as approved by the Audit
Committee), which consent shall not be unreasonably withheld, conditioned or delayed;
provided, however, Holdings may pledge some or all of its rights, interests or
entitlements under this Agreement to any U.S. money center bank in connection with a bona fide loan
or other indebtedness; provided further, however, Holdings may assign this
Agreement to one or more wholly owned (directly or indirectly) subsidiaries (whether corporations,
partnerships, limited liability companies, trusts or other entities) of Holdings, the ownership of
which may be transferred to the Members. HFF may not assign any of its rights or obligations under
this Agreement without the consent of Holdings, not to be unreasonably withheld or delayed.
Subject to each of the two immediately preceding sentences, this Agreement shall be binding upon,
inure to the benefit of and be enforceable by, the parties and their respective successors and
assigns including any acquirer of all or substantially all of the assets of HFF.

          No amendment to this Agreement shall be effective unless it is (i) in writing, (ii) signed by
HFF and Holdings and (iii) approved by the Audit Committee.

     SECTION 6.07. Titles and Subtitles. The titles of the sections and subsections of
this Agreement are for convenience of reference only and are not to be considered in construing
this Agreement.

     SECTION 6.08. Submission to Jurisdiction; Waivers. With respect to any suit, action
or proceeding relating to this Agreement (collectively, a “Proceeding”), each party to this
Agreement irrevocably (a) consents and submits to the exclusive jurisdiction of the courts of the
State of New York and any court of the U.S. located in the Borough of Manhattan in New York City,
New York; (b) waives any objection which such party may have at any time to the laying of venue of
any Proceeding brought in any such court, waives any claim that such Proceeding has been brought in
an inconvenient forum and further waives the right to object, with respect to such Proceeding, that
such court does not have jurisdiction over such party; (c) consents to the service of process at
the address set forth for notices in Section 6.01 herein; provided, however, that
such manner of service of process shall not preclude the service of process in any other manner
permitted under applicable law; and (d) waives, to the fullest extent permitted by applicable law,
any and all rights to trial by jury in connection with any Proceeding.

     SECTION 6.09. Reconciliation. In the event that HFF and Holdings are unable to
resolve a disagreement within the relevant period designated in this Agreement the matter shall be
submitted for determination to an accounting firm or a law firm (other than the Advisory Firm),
that is nationally recognized as having expertise with respect to the matter or matters in dispute
which firm is acceptable to the Audit Committee and Holdings (the “Expert”). If the matter
is not resolved before any payment that is the subject of a disagreement is due or any Tax Return
reflecting the subject of a disagreement is due (including extensions), such payment shall

-15-

 

be due on the date prescribed by this Agreement and such Tax Return shall be filed as prepared
by HFF by such due date, subject to adjustment or amendment upon resolution. The determinations of
the Expert pursuant to this Section 6.09 shall be binding on HFF and its Subsidiaries, the Opcos
and Holdings absent manifest error. In the event that this reconciliation provision is utilized,
the fees of the accounting or law firm selected in accordance with this Section 6.09 shall be paid
in proportion to the manner in which the dispute is resolved, such that, for example, if the entire
dispute is resolved in favor of HFF, Holdings shall pay all of the fees, or if the items in dispute
are resolved 50% in favor of HFF and 50% in favor of Holdings, each of HFF and Holdings shall pay
50% of the fees of the firm retained pursuant to this Section 6.09.

     SECTION 6.10. Withholding. HFF shall be entitled to deduct and withhold from any
payment payable pursuant to this Agreement such amounts as HFF is required to deduct and withhold
with respect to the making of such payment under applicable Tax Law. To the extent that amounts
are so withheld and paid over to the appropriate taxing authority by HFF, such withheld amounts
shall be treated for all purposes of this Agreement as having been paid to Holdings.

     IN WITNESS WHEREOF, HFF and Holdings have duly executed this Agreement as of the date first
written above.

	 	 	 
	 

	 	HFF, INC.
	 
	 	 
	 

	 	By
	 

	 	 

	 

	 	     Name:
	 

	 	     Title:
	 
	 	 
	 

	 	Address:
	 
	 	 
	 

	 	HFF HOLDINGS LLC
	 
	 	 
	 

	 	By
	 

	 	 

	 

	 	     Name:
	 

	 	     Title:
	 
	 	 
	 

	 	Address:

-16-exv10w4

 

Exhibit 10.4

FORM OF

REGISTRATION RIGHTS AGREEMENT

BY AND AMONG

HFF, INC.

AND

HFF HOLDINGS LLC

Dated as of [•], 2007

 

 

Table of Contents

ARTICLE I

DEFINITIONS AND OTHER MATTERS

	 	 	 	 	 
	Section 1.1. Definitions

	 	 	1	 
	 
	 	 	 	 
	Section 1.2. Definitions Generally

	 	 	4	 
	 
	 	 	 	 
	ARTICLE II

REGISTRATION RIGHTS

	 
	 	 	 	 
	Section 2.1. Fifth Anniversary Registration

	 	 	5	 
	 
	 	 	 	 
	Section 2.2. Demand Registration

	 	 	5	 
	 
	 	 	 	 
	Section 2.3. Piggyback Registration

	 	 	6	 
	 
	 	 	 	 
	Section 2.4. Lock-Up Agreements

	 	 	8	 
	 
	 	 	 	 
	Section 2.5. Registration Procedures

	 	 	8	 
	 
	 	 	 	 
	Section 2.6. Indemnification by the Company

	 	 	11	 
	 
	 	 	 	 
	Section 2.7. Indemnification by HFF Holdings

	 	 	11	 
	 
	 	 	 	 
	Section 2.8. Conduct of Indemnification Proceedings

	 	 	12	 
	 
	 	 	 	 
	Section 2.9. Contribution

	 	 	12	 
	 
	 	 	 	 
	Section 2.10. Participation in Public Offering

	 	 	13	 
	 
	 	 	 	 
	Section 2.11. Other Indemnification

	 	 	13	 
	 
	 	 	 	 
	 
	 	 	 	 
	Section 2.12. Cooperation by the Company

	 	 	13	 
	 
	 	 	 	 
	Section 2.13. No Transfer of Registration Rights

	 	 	13	 
	 
	 	 	 	 
	Section 2.14. Parties in Interest

	 	 	13	 
	 
	 	 	 	 
	Section 2.15. Acknowledgement Regarding the Company

	 	 	14	 

 

 

	 	 	 	 	 
	Section 2.16. Mergers, Recapitalizations, Exchanges or Other
Transactions Affecting Registrable Securities

	 	 	14	 
	 
	 	 	 	 
	ARTICLE III

MISCELLANEOUS

	 
	 	 	 	 
	Section 3.1. Term of the Agreement; Termination of Certain Provisions

	 	 	14	 
	 
	 	 	 	 
	Section 3.2. Amendments; Waiver

	 	 	14	 
	 
	 	 	 	 
	Section 3.3. Governing Law

	 	 	15	 
	 
	 	 	 	 
	Section 3.4. Notices

	 	 	15	 
	 
	 	 	 	 
	Section 3.5. Severability

	 	 	16	 
	 
	 	 	 	 
	Section 3.6. Specific Performance

	 	 	16	 
	 
	 	 	 	 
	Section 3.7. Assignment; Successors

	 	 	16	 
	 
	 	 	 	 
	Section 3.8. No Third-Party Rights

	 	 	16	 
	 
	 	 	 	 
	Section 3.9. Section Headings

	 	 	16	 
	 
	 	 	 	 
	Section 3.10. Execution in Counterparts

	 	 	16	 

 

 

REGISTRATION RIGHTS AGREEMENT

          This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of
[•], 2007, by and among HFF, Inc., a Delaware corporation (the “Company”), and HFF
Holdings LLC, a Delaware limited liability company (“HFF Holdings”).

W I T N E S S E T H:

          WHEREAS, the Company and HFF Holdings are beneficial owners of partnership units (the
“Units”) of each of Holliday Fenoglio Fowler, L.P., a Texas limited partnership (“HFF
LP”), and HFF Securities L.P., a Delaware limited partnership (“HFF Securities” and,
together with HFF LP, the “Operating Partnerships”);

          WHEREAS, pursuant to the Sale and Merger Agreement (defined below), HFF Holdings has received
an exchange right to exchange one partnership unit in each of the Operating Partnerships for one
share of the Company’s Class A common stock, par value $0.01 per share (the “Class A Common
Stock”), at the option of HFF Holdings pursuant to the LLC Agreement (defined below); and

          WHEREAS, the Company desires to provide HFF Holdings with registration rights with respect to
shares of Class A Common Stock underlying its Units.

          NOW, THEREFORE, in consideration of the premises and of the mutual agreements, covenants and
provisions herein contained, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS AND OTHER MATTERS

          Section 1.1. Definitions. Capitalized terms used in this Agreement without other
definition shall, unless expressly stated otherwise, have the meanings specified in this Section
1.1:

(a) “Agreement” has the meaning ascribed to such term in the Recitals.

(b) “Beneficial owner” has the meaning set forth in Rule 13d-3 under the Exchange Act.

(c) “Board” means the Board of Directors of the Company.

(d) “Certificate of Incorporation” means the Amended and Restated Certificate of
Incorporation of HFF, Inc., as filed with the Delaware Secretary of State on [•], 2007.

(e)“Class A Common Stock” has the meaning ascribed to such term in the Recitals.

(f) “Company” has the meaning ascribed to such term in the Recitals.

 

 

(g) “Demand Notice” has the meaning ascribed to such term in Section 2.2(a).

(h) “Demand Registration” has the meaning ascribed to such term in Section 2.2(a).

(i) “Exchange Act” means the United States Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder.

(j) “Fifth Anniversary Registration” has the meaning ascribed to such term in Section
2.1(a).

(k) “Governmental Authority” means any national, local or foreign (including U.S. federal,
state or local) or supranational (including European Union) governmental, judicial, administrative
or regulatory (including self-regulatory) agency, commission, department, board, bureau, entity or
authority of competent jurisdiction.

(l) “Indemnified Parties” has the meaning ascribed to such term in Section 2.6.

(m) “IPO Date” means the closing date of the initial public offering of the Class A Common
Stock.

(n) “LLC Agreement” means the Second Amended and Restated Limited Liability Agreement, as
amended, of HFF Holdings, by and among the Members thereof.

(o) “Public Offering” means an underwritten public offering pursuant to an effective
registration statement under the Securities Act, other than pursuant to a registration statement on
Forms S-4 or S-8 or any similar or successor form.

(p) “Registration Expenses” means any and all expenses incident to the performance of or
compliance with any registration or marketing of securities, including all (i) registration and
filing fees, and all other fees and expenses payable in connection with the listing of securities
on any securities exchange or automated interdealer quotation system, (ii) fees and expenses of
compliance with any securities or “blue sky” laws (including reasonable fees and disbursements of
counsel in connection with “blue sky” qualifications of the securities registered), (iii) expenses
in connection with the preparation, printing, mailing and delivery of any registration statements,
prospectuses and other documents in connection therewith and any amendments or supplements thereto,
(iv) security engraving and printing expenses, (v) internal expenses of the Company (including,
without limitation, all salaries and expenses of its officers and employees performing legal or
accounting duties), (vi) reasonable fees and disbursements of counsel for the Company and customary
fees and expenses for independent certified public accountants retained by the Company (including
the expenses relating to any comfort letters or costs associated with the delivery by independent
certified public accountants of any comfort letters requested pursuant to Section 2.5(h)), (vii)
reasonable fees and expenses of any special experts retained by the Company in connection with such
registration, (viii) reasonable fees, out-of-pocket costs and expenses of HFF Holdings, including
counsel for HFF Holdings, (ix) fees and expenses in connection with any review by the NASD of the
underwriting arrangements or other terms of the offering, and all fees and expenses of any
“qualified independent underwriter,” including the fees

 

 

and expenses of any counsel thereto, (x) fees and disbursements underwriters customarily paid by
issuers or sellers of securities, but excluding any underwriting fees, discounts and commissions
attributable to the sale of Registrable Securities, (xi) costs of printing and producing any
agreements among underwriters, underwriting agreements, any “blue sky” or legal investment
memoranda and any selling agreements and other documents in connection with the offering, sale or
delivery of the Registrable Securities, (xii) transfer agents’ and registrars’ fees and expenses
and the fees and expenses of any other agent or trustee appointed in connection with such offering,
(xiii) expenses relating to any analyst or investor presentations or any “road shows” undertaken in
connection with the registration, marketing or selling of the Registrable Securities, (xiv) fees
and expenses payable in connection with any ratings of the Registrable Securities, including
expenses relating to any presentations to rating agencies and (xv) all out-of-pocket costs and
expenses incurred by the Company or its appropriate officers in connection with their compliance
with Section 2.5(l).

(q) “Registrable Securities” shall mean shares of Class A Common Stock deliverable or
delivered in exchange for Units. For purposes of this Agreement, (i) Registrable Securities shall
cease to be Registrable Securities when a Registration Statement covering such Registrable
Securities has been declared effective under the Securities Act by the SEC and such Registrable
Securities have been disposed of pursuant to such effective Registration Statement and (ii) the
Registrable Securities of a holder shall not be deemed to be Registrable Securities at any time
when the entire amount of such Registrable Securities proposed to be sold by HFF Holdings in a
single sale constitutes less than 1% of the then outstanding shares of Class A Common Stock or, in
the opinion of counsel satisfactory to the Company and HFF Holdings, each in their reasonable
judgment, may be distributed to the public pursuant to Rule 144 (or any successor provision then in
effect) under the Securities Act in any three-month period or any such Registrable Securities have
been sold in a sale made pursuant to Rule 144 of the Securities Act.

(r) “Sale and Merger Agreement” means that certain Sale and Merger Agreement, dated as of
[•], 2007, among HFF Holdings, Holliday GP Corp., HFF LP Acquisition LLC, the Company, GP
Acquisition Corp. and HFF Partnership Holdings LLC.

(s) “SEC” means the Securities and Exchange Commission.

(t) “Securities Act” means the U.S. Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

(u) “Subsidiary” means, with respect to any person, any corporation, limited liability
company, company, partnership, trust, association or other legal entity or organization of which
such person (either directly or through one or more subsidiaries of such person) (a) owns, directly
or indirectly, a majority of the capital stock or other equity interests the holders of which are
generally entitled to vote for the election of the board of directors or other governing body of
such corporation, limited liability company, partnership, trust, association or other legal entity
or organization, or (b) is otherwise entitled to exercise (1) a majority of the voting power
generally in the election of the board of directors or other governing body of such corporation,
limited

 

 

liability company, partnership, trust, association or other legal entity or organization or (2)
control of such corporation, limited liability company, partnership, trust, association or other
legal entity or organization.

(v) “Transfer” means, in respect of any Unit, share of Class A Common Stock, property or
other asset, any sale, assignment, transfer, distribution or other disposition thereof, whether
voluntarily or by operation of Law, including, without limitation, the exchange of any Unit for any
other security.

(w) “Units” has the meaning ascribed to such term in the Recitals.

          Section 1.2. Definitions Generally. Wherever required by the context of this
Agreement, the singular shall include the plural and vice versa, and the masculine gender shall
include the feminine and neuter genders and vice versa, and references to any agreement, document
or instrument shall be deemed to refer to such agreement, document or instrument as amended,
supplemented or modified from time to time. When used herein:

(a) the word “or” is not exclusive;

(b) the words “including,” “includes,” “included” and “include” are deemed to be followed by the
words “without limitation”;

(c) the terms “herein,” “hereof” and “hereunder” and other words of similar import refer to this
Agreement as a whole and not to any particular section, paragraph or subdivision;

(d) the word “person” means any individual, corporation, limited liability company, trust, joint
venture, association, company, partnership or other legal entity or a government or any department
or agency thereof or self-regulatory organization; and

(e) all section, paragraph or clause references not attributed to a particular document shall be
references to such parts of this Agreement, and all exhibit, annex and schedule references not
attributed to a particular document shall be references to such exhibits, annexes and schedules to
this Agreement.

ARTICLE II

REGISTRATION RIGHTS

          Section 2.1. Fifth Anniversary Registration.

(a) The Company shall use its commercially reasonable efforts to cause to be declared effective
under the Securities Act by the SEC, on or prior to the fifth anniversary of the IPO Date, a
registration statement relating to all shares of the following Registrable Securities (“Fifth
Anniversary Registration”): Registrable Securities to be delivered to HFF Holdings by the
Company in respect of the exchange of Units pursuant to the Certificate of Incorporation and all

 

 

other Registrable Securities of HFF Holdings which Registrable Securities are reasonably expected
to continue to be Registrable Securities at the expected filing date for the registration statement
with respect to such registration.

(b) The Company shall be liable for and pay all Registration Expenses in connection with any Fifth
Anniversary Registration, regardless of whether such Registration is effected.

(c) Upon notice to HFF Holdings, the Company may postpone effecting a registration pursuant to
this Section 2.1 on one occasion during any period of six consecutive months for a reasonable time
specified in the notice but not exceeding 120 days (which period may not be extended or renewed),
if (i) the Company shall determine in good faith that effecting the registration would materially
and adversely affect an offering of securities of such company the preparation of which had then
been commenced or (ii) the Company is in possession of material non-public information the
disclosure of which during the period specified in such notice the Company believes in good faith
would not be in the best interests of the Company.

          Section 2.2. Demand Registration.

(a) If at any time following the IPO, the Company shall receive a written request (a “Demand
Notice”) from HFF Holdings that the Company effect the registration under the Securities Act of
all or any portion of the Registrable Securities specified in the Demand Notice (a “Demand
Registration”), specifying the intended method of disposition thereof, then the Company shall
use its commercially reasonable efforts to effect, as expeditiously as reasonably practicable,
subject to the restrictions in Section 2.2(d), the registration under the Securities Act of the
Registrable Securities for which HFF Holdings has requested registration under this Section 2.2,
all to the extent necessary to permit the disposition (in accordance with the intended methods
thereof as aforesaid) of the Registrable Securities so to be registered. Notwithstanding the
foregoing, (i) HFF Holdings shall be entitled to ten Demand Registrations pursuant to this Section
2.2, (ii) HFF Holdings shall be entitled to no more than one demand registration during any
six-month period, and (iii) the Company shall not be obligated to make a Demand Registration with
respect to HFF Holdings in the event that a Fifth Anniversary Registration or Piggyback
Registration (as defined below) had been available to HFF Holdings within the 180 days preceding
the date of the Demand Notice.

(b) Notwithstanding any provision in this Section 2.3 or elsewhere in the Agreement, the Company
shall be entitled to elect to effect the registration under the Securities Act of all of the
Registrable Securities held by HFF Holdings in any individual Demand Registration, subject to the
right of HFF Holdings to revoke its Demand Registration request pursuant to Section 2.3(c).

(c) At any time prior to the effective date of the registration statement relating to such
registration, HFF Holdings may revoke such Demand Registration request by providing a notice to the
Company revoking such request. The Company shall be liable for and pay all Registration Expenses in
connection with any Demand Registration.

 

 

(d) If a Demand Registration involves an underwritten Public Offering and the managing underwriter
advises the Company and HFF Holdings that, in its view, the number of shares of Registrable
Securities requested to be included in such registration exceeds the largest number of shares that
can be sold without having an adverse effect on such offering, including the price at which such
shares can be sold (the “Maximum Offering Size”), the Company shall include in such
registration, in the priority listed below, up to the Maximum Offering Size:

     (i) first, all Registrable Securities requested to be registered in the Demand Registration by
HFF Holdings; and

     (ii) second, any securities proposed to be registered by the Company or any securities
proposed to be registered for the account of any other persons, with such priorities among them as
the Company shall determine.

(e) Upon notice to HFF Holdings, the Company may postpone effecting a registration pursuant to
this Section 2.2 on one occasion during any period of six consecutive months for a reasonable time
specified in the notice but not exceeding 120 days (which period may not be extended or renewed),
if (i) the Company shall determine in good faith that effecting the registration would materially
and adversely affect an offering of securities of such company the preparation of which had then
been commenced or (ii) the Company is in possession of material non-public information the
disclosure of which during the period specified in such notice the Company believes in good faith
would not be in the best interests of the Company.

          Section 2.3. Piggyback Registration.

(a) Subject to any contractual obligations to the contrary, if the Company proposes at any time to
register any of the equity securities issued by it under the Securities Act (other than a
registration on Form S-8 or S-4, or any successor forms, relating to shares of Class A Common Stock
issuable in connection with any employee benefit or similar plan of the Company or in connection
with a direct or indirect acquisition by the Company of another Person or as a recapitalization or
reclassification of securities of the Company), whether or not for sale for its own account, the
Company shall each such time give prompt notice at least 15 business days prior to the anticipated
filing date of the registration statement relating to such registration to HFF Holdings which
notice shall set forth HFF Holdings’ rights under this Section 2.3 and shall offer HFF Holdings the
opportunity to include in such registration statement the number of Registrable Securities of the
same class or series as those proposed to be registered as HFF Holdings may request (a
“Piggyback Registration”), subject to the provisions of Section 2.3(b). Upon the request of
HFF Holdings made within five business days after the receipt of notice from the Company (which
request shall specify the number of Registrable Securities intended to be registered by HFF
Holdings), the Company shall use its commercially reasonable efforts to effect the registration
under the Securities Act of all Registrable Securities that the Company has been so requested to
register by HFF Holdings to the extent necessary to permit the disposition of the Registrable
Securities so to be registered, provided that (i) if such registration involves an underwritten
Public Offering, HFF Holdings must sell its Registrable Securities to the underwriters selected by
the Company on the same terms and conditions as apply to the

 

 

Company, as applicable, and (ii) if, at any time after giving notice of its intention to register
any securities pursuant to this Section 2.3(a) and prior to the effective date of the registration
statement filed in connection with such registration, the Company shall determine for any reason
not to register such securities, the Company shall give notice to HFF Holdings and, thereupon,
shall be relieved of its obligation to register any Registrable Securities in connection with such
registration. No registration effected under this Section 2.3 shall relieve the Company of its
obligations to effect a Fifth Anniversary Registration or Demand Registration to the extent
required by Section 2.1 or Section 2.2, respectively. The Company shall pay all Registration
Expenses in connection with each Piggyback Registration.

(b) Subject to any contractual obligations to the contrary, if a Piggyback Registration involves
an underwritten Public Offering and the managing underwriter advises the Company that, in its view,
the number of Registrable Securities that the Company and HFF Holdings intend to include in such
registration exceeds the Maximum Offering Size, the Company shall include in such registration, in
the following priority, up to the Maximum Offering Size:

     (i) first, so much of the Company securities proposed to be registered for the account of the
Company;

     (ii) second, to the Company securities proposed to be registered pursuant to any demand
registration rights of third parties;

     (iii) third, all Registrable Securities requested to be included in such registration by HFF
Holdings; and

     (iv) fourth, any securities proposed to be registered for the account of any other Persons
with such priorities among them as the Company shall determine.

(c) Notwithstanding any provision in this Section 2.3 or elsewhere in this Agreement, no provision
relating to the registration of Registrable Securities shall be construed as permitting HFF
Holdings to effect a transfer of securities that is otherwise prohibited by the terms of any
agreement between HFF Holdings and the Company or any of its subsidiaries. The Company shall not be
obligated to provide notice or afford Piggyback Registration to HFF Holdings pursuant to this
Section 2.3 unless some or all of HFF Holdings’ Registrable Securities are permitted to be
transferred under the terms of applicable agreements between HFF Holdings and the Company or any of
its subsidiaries.

          Section 2.4. Lock-Up Agreements. If any registration of Registrable Securities shall
be effected in connection with a Public Offering, neither the Company nor HFF Holdings shall effect
any public sale or distribution, including any sale pursuant to Rule 144, of any shares of Common
Stock or other security of the Company (except as part of such Public Offering) during the period
beginning 14 days prior to the effective date of the applicable registration statement until the
earlier of (i) such time as the Company and the lead managing underwriter shall agree and (ii) 180
days following the effective date of the applicable registration statement.

 

 

          Section 2.5. Registration Procedures. Whenever HFF Holdings requests that any
Registrable Securities be registered pursuant to Section 2.2 or 2.3 or in respect of any Fifth
Anniversary Registration pursuant to Section 2.1, subject to the provisions of such Sections, the
Company shall use its commercially reasonable efforts to effect the registration and the sale of
such Registrable Securities in accordance with the intended method of disposition thereof as
promptly as practicable, and, in connection with any such request:

(a) The Company shall as expeditiously as reasonably practicable prepare and file with the SEC a
registration statement on any form for which the Company then qualifies or that counsel for the
Company shall deem appropriate and which form shall be available for the sale of the Registrable
Securities to be registered thereunder in accordance with the intended method of distribution
thereof, and use its commercially reasonable efforts to cause such filed registration statement to
become and remain effective for a period of not less than 40 days, or in the case of a Fifth
Anniversary Registration, until all of the Registrable Securities of HFF Holdings included in such
registration statement shall have actually been sold thereunder; provided that, at the request of
HFF Holdings, the intended method of distribution relating to the sale of the Registrable
Securities to be registered thereunder shall provide for individual members of HFF Holdings to be
named as selling stockholders under such registration statement.

(b) Prior to filing a registration statement or prospectus or any amendment or supplement thereto,
the Company shall, if requested, furnish to HFF Holdings and each underwriter, if any, of the
Registrable Securities covered by such registration statement copies of such registration statement
as proposed to be filed, and thereafter the Company shall furnish to HFF Holdings and underwriter,
if any, such number of copies of such registration statement, each amendment and supplement thereto
(in each case including all exhibits thereto and documents incorporated by reference therein), the
prospectus included in such registration statement (including each preliminary prospectus and any
summary prospectus) and any other prospectus filed under Rule 424 or Rule 430A under the Securities
Act and such other documents as HFF Holdings or underwriter may reasonably request in order to
facilitate the disposition of the Registrable Securities owned by HFF Holdings. HFF Holdings shall
have the right to request that the Company modify any information contained in such registration
statement, amendment and supplement thereto pertaining to HFF Holdings and the Company shall use
its all commercially reasonable efforts to comply with such request, provided, however, that the
Company shall not have any obligation so to modify any information if the Company reasonably
expects that so doing would cause the prospectus to contain an 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.

(c) After the filing of the registration statement, the Company shall (i) cause the related
prospectus to be supplemented by any required prospectus supplement, and, as so supplemented, to be
filed pursuant to Rule 424 under the Securities Act, (ii) comply with the provisions of the
Securities Act with respect to the disposition of all Registrable Securities covered by such
registration statement during the applicable period in accordance with the intended methods of
disposition by HFF Holdings thereof set forth in such registration statement or supplement to

 

 

such prospectus and (iii) promptly notify HFF Holdings of any stop order issued or threatened by
the SEC or any state securities commission and take all reasonable best efforts to prevent the
entry of such stop order or to remove it if entered.

(d) The Company shall use its commercially reasonable best efforts to (i) register or qualify the
Registrable Securities covered by such registration statement under such other securities or “blue
sky” laws of such jurisdictions in the United States as HFF Holdings reasonably (in light of HFF
Holdings’ intended plan of distribution) requests and (ii) cause such Registrable Securities to be
registered with or approved by such other governmental agencies or authorities as may be necessary
by virtue of the business and operations of the Company and do any and all other acts and things
that may be reasonably necessary or advisable to enable HFF Holdings to consummate the disposition
of the Registrable Securities owned by HFF Holdings, provided that the Company shall not be
required to (A) qualify generally to do business in any jurisdiction where it would not otherwise
be required to qualify but for this Section 2.5(d), (B) subject itself to taxation in any such
jurisdiction or (C) consent to general service of process in any such jurisdiction.

(e) The Company shall immediately notify HFF Holdings, at any time when a prospectus relating
thereto is required to be delivered under the Securities Act, of the occurrence of an event
requiring the preparation of a supplement or amendment to such prospectus so that, as thereafter
delivered to the purchasers of such Registrable Securities, such prospectus will not contain an
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 promptly prepare and make
available to HFF Holdings and file with the SEC any such supplement or amendment.

(f) The Company shall select an underwriter or underwriters in connection with any Public
Offering; provided that, in the event of a Demand Registration, such underwriter or underwriters
shall be reasonably acceptable to HFF Holdings. In connection with any Public Offering, the Company
shall enter into customary agreements (including an underwriting agreement in customary form) and
take such all other actions as are reasonably required in order to expedite or facilitate the
disposition of such Registrable Securities in any such Public Offering, including, to the extent
necessary, the engagement of a “qualified independent underwriter” in connection with the
qualification of the underwriting arrangements with the NASD.

(g) Subject to the execution of confidentiality agreements satisfactory in form and substance to
the Company in the exercise of its good faith judgment, the Company will give to HFF Holdings, its
counsel and accountants (i) reasonable and customary access to its books and records and (ii) such
opportunities to discuss the business of the Company with its directors, officers, employees,
counsel and the independent public accountants who have certified its financial statements, as
shall be appropriate, in the reasonable judgment of counsel, to HFF Holdings, to enable it to
exercise its due diligence responsibility.

(h) The Company shall use its commercially reasonable efforts to furnish to HFF Holdings and to
each such underwriter, if any, a signed counterpart, addressed to HFF Holdings or such underwriter,
of (i) an opinion or opinions of counsel to the Company and (ii) a comfort letter or

 

 

comfort letters from the Company’s independent public accountants, each in customary form and
covering such matters of the kind customarily covered by opinions or comfort letters, as the case
may be, as HFF Holdings therefor reasonably requests.

(i) HFF Holdings shall promptly furnish in writing to the Company such information regarding the
distribution of the Registrable Securities as the Company may from time to time reasonably request
and such other information as may be legally required or advisable in connection with such
registration.

(j) HFF Holdings agrees that, upon receipt of any notice from the Company of the happening of any
event of the kind described in Section 2.5(e), HFF Holdings shall forthwith discontinue disposition
of Registrable Securities pursuant to the registration statement covering such Registrable
Securities until HFF Holdings’ receipt of the copies of the supplemented or amended prospectus
contemplated by Section 2.5(e), and, if so directed by the Company, HFF Holdings shall deliver to
the Company all copies, other than any permanent file copies then in HFF Holdings’ possession, of
the most recent prospectus covering such Registrable Securities at the time of receipt of such
notice. If the Company shall give such notice, the Company shall extend the period during which
such registration statement shall be maintained effective (including the period referred to in
Section 2.5(a)) by the number of days during the period from and including the date of the giving
of notice pursuant to Section 2.5(e) to the date when the Company shall make available to HFF
Holdings a prospectus supplemented or amended to conform with the requirements of Section 2.5(e).

(k) The Company shall use its commercially reasonable efforts to list all Registrable Securities
covered by such registration statement on any securities exchange or quotation system on which any
of the Registrable Securities are then listed or traded.

(l) The Company shall have appropriate officers of the Company (i) prepare and make presentations
at any “road shows” and before analysts and rating agencies, as the case may be, (ii) take other
actions to obtain ratings for any Registrable Securities and (iii) otherwise use their commercially
reasonable efforts to cooperate as reasonably requested by the underwriters in the offering,
marketing or selling of the Registrable Securities.

          Section 2.6. Indemnification by the Company. In the event of any registration of any
securities of the Company under the Securities Act pursuant to this Article II, the Company will,
and it hereby does, indemnify and hold harmless, to the extent permitted by law, HFF Holdings, each
affiliate of HFF Holdings and its members and managing members (including any director, officer,
affiliate, employee, agent and controlling Person of any of the foregoing), each other person who
participates as an underwriter in the offering or sale of such securities and each other person, if
any, who controls such seller or any such underwriter within the meaning of the Securities Act
(collectively, the “Indemnified Parties”), against any and all losses, claims, damages or
liabilities, joint or several, and expenses (including reasonable attorney’s fees and reasonable
expenses of investigation) to which such Indemnified Party may become subject under the Securities
Act, common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions or
proceedings in respect thereof, whether or not such Indemnified Party is

 

 

a party thereto) arise out of or are based upon (i) any untrue statement or alleged untrue
statement of any material fact contained in any registration statement under which such securities
were registered under the Securities Act, any preliminary, final or summary prospectus contained
therein, or any amendment or supplement thereto, or (ii) any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein
(in the case of a prospectus, in light of the circumstances under which they were made) not
misleading, and the Company will reimburse such Indemnified Party for any legal or any other
expenses reasonably incurred by it in connection with investigating or defending against any such
loss, claim, liability, action or proceeding; provided, that the Company shall not be liable to any
Indemnified Party in any such case to the extent that any such loss, claim, damage, liability (or
action or proceeding in respect thereof) or expense arises out of or is based upon any untrue
statement or alleged untrue statement or omission or alleged omission made in such registration
statement or amendment or supplement thereto or in any such preliminary, final or summary
prospectus in reliance upon and in conformity with written information furnished to the Company
with respect to such seller through an instrument duly executed by such seller specifically stating
that it is for use in the preparation thereof.

          Section 2.7. Indemnification by HFF Holdings. The Company may require, as a
condition to including any Registrable Securities in any registration statement filed in accordance
with this Article II, that the Company shall have received an undertaking reasonably satisfactory
to it from HFF Holdings or any underwriter to indemnify and hold harmless the Company and all other
prospective sellers of Registrable Securities with respect to any untrue statement or alleged
untrue statement in or omission or alleged omission from such registration statement, any
preliminary, final or summary prospectus contained therein, or any amendment or supplement, if such
untrue statement or alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information furnished to the Company with respect to such
seller through an instrument duly executed by such seller or underwriter specifically stating that
it is for use in the preparation of such registration statement, preliminary, final or summary
prospectus or amendment or supplement, or a document incorporated by reference into any of the
foregoing. Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of the Company or HFF Holdings, or any of their respective affiliates,
directors, officers or controlling persons and shall survive the transfer of such securities by
such person. In no event shall the liability of HFF Holdings hereunder be greater in amount than
the dollar amount of the proceeds received by HFF Holdings upon the sale of the Registrable
Securities giving rise to such indemnification obligation.

          Section 2.8. Conduct of Indemnification Proceedings. Promptly after receipt by an
Indemnified Party hereunder of written notice of the commencement of any action or proceeding with
respect to which a claim for indemnification may be made pursuant to this Article II, such
Indemnified Party will, if a claim in respect thereof is to be made against an indemnifying party,
give written notice to the latter of the commencement of such action; provided, that the failure of
the Indemnified Party to give notice as provided herein shall not relieve the indemnifying party of
its obligations under this Article II, except to the extent that the indemnifying party is actually
prejudiced by such failure to give notice. In case any such action

 

 

is brought against an Indemnified Party, unless in such Indemnified Party’s reasonable
judgment a conflict of interest between such Indemnified Party and indemnifying parties may exist
in respect of such claim, the indemnifying party will be entitled to participate in and to assume
the defense thereof, jointly with any other indemnifying party similarly notified to the extent
that it may wish, with counsel reasonably satisfactory to such Indemnified Party, and after notice
from the indemnifying party to such Indemnified Party of its election so to assume the defense
thereof, the indemnifying party will not be liable to such Indemnified Party for any legal or other
expenses subsequently incurred by the latter in connection with the defense thereof other than
reasonable costs of investigation. No indemnifying party will consent to entry of any judgment or
enter into any settlement which does not include as an unconditional term thereof, the giving by
the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to
such claim or litigation.

          Section 2.9. Contribution. If the indemnification provided for in this Article II
from the indemnifying party is unavailable to an Indemnified Party hereunder in respect of any
losses, claims, damages, liabilities or expenses referred to herein, then the indemnifying party,
in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by
such Indemnified Party as a result of such losses, claims, damages, liabilities or expenses in such
proportion as is appropriate to reflect the relative fault of the indemnifying party and
Indemnified Parties in connection with the actions which resulted in such losses, claims, damages,
liabilities or expenses, as well as any other relevant equitable considerations. The relative fault
of such indemnifying party and Indemnified Parties shall be determined by reference to, among other
things, whether any action in question, including any untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact, has been made by, or
relates to information supplied by, such indemnifying party or Indemnified Parties, and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such action. The amount paid or payable by a party under this Section 2.9 as a result of the
losses, claims, damages, liabilities and expenses referred to above shall be deemed to include any
legal or other fees or expenses reasonably incurred by such party in connection with any
investigation or proceeding.

          The parties hereto agree that it would not be just and equitable if contribution pursuant to
this Section 2.9 were determined by pro rata allocation or by any other method of allocation which
does not take account of the equitable considerations referred to in the immediately preceding
paragraph. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.

          Section 2.10. Participation in Public Offering. HFF Holdings may not participate in
any Public Offering hereunder unless HFF Holdings (a) agrees to sell its securities on the basis
provided in any underwriting arrangements approved by HFF Holdings and (b) completes and executes
all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents
reasonably required under the terms of such underwriting arrangements and the provisions of this
Agreement in respect of registration rights.

 

 

          Section 2.11. Other Indemnification. Indemnification similar to that specified herein
(with appropriate modifications) shall be given by the Company and HFF Holdings participating
therein with respect to any required registration or other qualification of securities under any
federal or state law or regulation or Governmental Authority other than the Securities Act.

          Section 2.12. Cooperation by the Company. If HFF Holdings shall transfer any
Registrable Securities pursuant to Rule 144, the Company shall use its commercially reasonable
efforts to cooperate with HFF Holdings and shall provide to HFF Holdings such information as HFF
Holdings shall reasonably request.

          Section 2.13. No Transfer of Registration Rights. Except as set forth in Section
2.14, none of the rights of HFF Holdings under this Article II shall be assignable by HFF Holdings
to any person acquiring securities.

          Section 2.14. Parties in Interest. HFF Holdings shall be entitled to receive the
benefits of this Agreement and shall be bound by the terms and provisions of this Agreement by
reason of its election to participate in a registration under this Article II. To the extent
Registrable Securities are effectively transferred in accordance with the terms of the operating
agreement of HFF Holdings, the transferee of such Registrable Securities shall be entitled to
receive the benefits of this Agreement and shall be bound by the terms and provisions of this
Agreement upon becoming bound hereby pursuant to Section 3.1(c).

          Section 2.15. Acknowledgement Regarding the Company. All determinations necessary or
advisable under this Article II shall be made by the Company, the determinations of which shall be
final and binding.

          Section 2.16. Mergers, Recapitalizations, Exchanges or Other Transactions Affecting
Registrable Securities. The provisions of this Agreement shall apply to the full extent set
forth herein with respect to the Registrable Securities, to any and all securities or capital stock
of the Operating Partnerships or the Company or any successor or assign of any such person (whether
by merger, amalgamation, consolidation, sale of assets or otherwise) that may be issued in respect
of, in exchange for, or in substitution of such Registrable Securities, by reason of any dividend,
split, issuance, reverse split, combination, recapitalization, reclassification, merger,
amalgamation, consolidation or otherwise.

 

 

ARTICLE III

MISCELLANEOUS

          Section 3.1. Term of the Agreement; Termination of Certain Provisions.

(a) The term of this Agreement shall continue until the first to occur of (i) such time as HFF
Holdings no longer holds any Registrable Securities and (ii) such time as the Agreement is
terminated in writing by HFF Holdings.

(b) Unless this Agreement is theretofore terminated pursuant to Section 3.1(a) hereof, HFF
Holdings shall be bound by the provisions of this Agreement with respect to any of its Units or
Registrable Security until such time as HFF Holdings ceases to hold any Registrable Security.
Thereafter, HFF Holdings shall no longer be bound by the provisions of this Agreement other than
Sections 2.6, 2.7, 2.8, 2.9 and 2.11 and Article III.

          Section 3.2. Amendments; Waiver.

(a) The provisions of this Agreement may be amended only by HFF Holdings.

(b) In addition to any other vote or approval that may be required under this Section 3.2, any
amendment of this Agreement that has the effect of changing the obligations of the Operating
Partnerships or the Company hereunder to make such obligations materially more onerous to the
Operating Partnerships or Company shall require the approval of the Operating Partnerships or the
Company, as the case may be.

(c) No provision of this Agreement may be waived except by an instrument in writing executed by
the party against whom the waiver is to be effective.

          Section 3.3. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

          Section 3.4. Notices.

(a) Any communication, demand or notice to be given hereunder will be duly given (and shall be
deemed to be received) when delivered in writing by hand or first class mail or by telecopy to a
party at its address as indicated below:

          If to the Company,

          HFF, Inc.

          429 Fourth Avenue

          Suite 200

          Pittsburgh, PA 15219

 

 

Attention: Chief Executive Officer

Fax: [•]

If to HFF Holdings LLC

429 Fourth Avenue

Suite 200

Pittsburgh, PA 15219

Attention: Managing Member

Fax: [•]

(b) Unless otherwise provided to the contrary herein, any notice which is required to be given in
writing pursuant to the terms of this Agreement may be given by telecopy.

          Section 3.5. Severability. If any provision of this Agreement is finally held to be
invalid, illegal or unenforceable, (a) the remaining terms and provisions hereof shall be
unimpaired and (b) the invalid or unenforceable term or provision shall be deemed replaced by a
term or provision that is valid and enforceable and that comes closest to expressing the intention
of the invalid or unenforceable term or provision.

          Section 3.6. Specific Performance. Each party hereto acknowledges that the remedies
at law of the other parties for a breach or threatened breach of this Agreement would be inadequate
and, in recognition of this fact, any part to this Agreement, without posting any bond, and in
addition to all other remedies that may be available, shall, subject to Section 3.4, be entitled to
obtain equitable relief in the form of specific performance, a temporary restraining order, a
temporary or permanent injunction or any other equitable remedy that may be then available.

          Section 3.7. Assignment; Successors. This Agreement shall be binding upon and inure
to the benefit of the respective legatees, legal representatives, successors and assigns of HFF
Holdings; provided, however, that HFF Holdings may not assign this Agreement or any of his rights
or obligations hereunder, and any purported assignment in breach hereof by HFF Holdings shall be
void; and provided further that no assignment of this Agreement by the Company or to a successor of
the Company (by operation of law or otherwise) shall be valid unless such assignment is made to a
person which succeeds to the business of such Person substantially as an entirety.

          Section 3.8. No Third-Party Rights. Other than as expressly provided herein, nothing
in this Agreement will be construed to give any person other than the parties to this Agreement any
legal or equitable right, remedy, or claim under or with respect to this Agreement or any provision
of this Agreement. This Agreement and all of its provisions and conditions are for the sole and
exclusive benefit of the parties to this Agreement and their successors and assigns.

 

 

          Section 3.9. Section Headings. The headings of sections in this Agreement are
provided for convenience only and will not affect its construction or interpretation.

          Section 3.10. Execution in Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be deemed an original, but all such counterparts shall
together constitute but one and the same instrument.

 

 

          IN WITNESS WHEREOF, the parties hereto have duly executed or caused to be duly executed this
Agreement as of the dates indicated.

	 	 	 	 	 
	 	HFF, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	HFF HOLDINGS LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:

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