Document:

EX-10.2

 Exhibit 10.2 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of July 1, 2015 (the “Effective
Date”), by and among The Habit Restaurants, LLC, a Delaware Limited Liability Company (the “Company”), The Habit Restaurants, Inc. (“Parent”), and Ira Fils, an individual presently residing at 48 Ledgewood Drive, Rancho
Santa Margarita, CA 92688 (the “Executive”). 
 WITNESSETH: 

WHEREAS, the Company has employed the Executive pursuant to an Employment Agreement dated as of August 18, 2008, as amended from
time to time (the “Prior Employment Agreement”); 
 WHEREAS, the Company desires to continue to retain the services of the
Executive, and the Executive desires to continue to be employed by the Company for the term of this Agreement; 
 WHEREAS, the
Executive as of the date hereof also serves as an officer of Parent; and 
 WHEREAS, as of the Effective Date, the Company, Parent
and the Executive desire to supersede the Prior Employment Agreement, in its entirety, with this Agreement by and among the Company, Parent and the Executive. 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements set forth herein, the Company, Parent and the
Executive, intending to be legally bound, hereby agree as follows: 
 1. Employment. During the term of this Agreement, the
Executive shall serve as chief financial officer (“CFO”) of each of the Company and Parent, with such authority and duties, consistent with this Agreement, as shall from time to time be delegated to him by the board of directors of Parent
(the “Board”). Parent shall propose to its shareholders at each applicable annual meeting occurring during the term of this Agreement the re-election of the Executive as a member of the Board and the Executive shall so serve if re-elected.

 2. Term. The term of the Executive’s employment hereunder shall commence on the Effective Date and end on the date
that is three (3) years following the Effective Date. On such date, and on each subsequent anniversary of the Effective Date, the term of this Agreement shall be automatically renewed for one additional calendar year unless, at least ninety
(90) days prior to the end of the then-current term of this Agreement, either the Board or the Executive shall give notice to the other not to extend this Agreement. Notwithstanding the foregoing, the term of this Agreement may be earlier
terminated in accordance with Section 8. The “Term” shall mean, for purposes of this Agreement, such initial term and subsequent extensions, if any. 

3. Full-time Service. 

3.1 Service with the Company. During the Term, the Executive agrees to provide his full business time and attention to the
business of Parent and the Company (Parent 

 and the Company being hereinafter jointly referred to as the “Employer”). In addition, the Executive
may be asked from time to time to serve as a director or officer of one or more of Parent’s subsidiary entities, without further compensation. 

3.2 No Conflicting Duties. During the Term, the services of the Executive shall be provided exclusively to the Employer (and, to
the extent provided pursuant to Section 3.1, to other subsidiary entities of Parent) and the Executive shall not serve as an officer, director, employee, consultant or advisor to any other business without the prior written consent of the
Board. The Executive hereby confirms that he is under no contractual commitments inconsistent with his obligations set forth in this Agreement, and that during the Term, he will not render or perform services, or enter into any contract to do so,
for any other corporation, firm, entity or person which are inconsistent with the provisions of this Agreement. Notwithstanding the foregoing, nothing in this Agreement will prevent the Executive from accepting speaking engagements, from serving on
boards of charitable or professional organizations or trade associations, from serving on all boards on which the Executive serves as of immediately prior to the Effective Date and any other boards consented to in writing by the Board (which consent
shall not be unreasonably withheld or delayed), or from investing in other businesses during the Term, provided, however, that such speaking engagements, or any service to such charitable, professional or trade organizations, or any service to any
such board, will not, individually or in the aggregate, interfere with Executive’s duties hereunder, conflict with the business interests of the Company or any of its Affiliates or the Employer’s conflicts of interest policy as set forth
in its Corporate Code of Business Conduct and Ethics, or violate Section 6 or 7 of this Agreement. 
 4. Compensation. As
compensation for all services to be rendered by the Executive under this Agreement during the Term, the Employer shall provide the Executive the following: 

4.1 Base Salary. The Employer shall provide the Executive a base annual salary (the “Base Salary”), which shall be
paid on a regular basis in accordance with the Employer’s normal payroll procedures and policies. The Base Salary shall be paid at an initial rate of $425,000 per year. Thereafter, the Executive’s salary shall be reviewed annually by the
Board and may be increased from time to time above the Base Salary required by this Section 4.1 but may not be reduced below the then-current Base Salary paid to the Executive without the Executive’s consent. 

4.2 Bonus Compensation. Beginning with the Employer’s 2017 fiscal year, for each fiscal year completed during the Term, the
Executive will be eligible to earn an annual bonus. The Executive’s target bonus will be twenty percent (20%) of the Base Salary (the “Target Bonus”), with the actual amount of any such bonus being determined by the Board in its
discretion, based on the Executive’s performance and that of the Employer against goals established by the Board; provided, that the Employer may limit any discretionary determinations or adjustments to such extent as it deems necessary
to provide for the deductibility of any such bonus on an accrual basis for the performance year. Annual bonuses will be payable within two and one-half months following the close of the year for which the bonus is earned. The Executive must be
employed through the end of the performance year to be eligible to receive a bonus pursuant to this Section 4.2. 

  
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 4.3 Participation in Benefit Plans. The Executive shall be included, to the extent
eligible thereunder, in any and all employee benefits plans of the Employer providing general benefits for similarly-situated service providers of the Employer who hold equity, as adopted from time to time, except to the extent such plans are
duplicative of benefits otherwise provided to the Executive under this Agreement (e.g., a severance pay plan). The Employer shall be entitled to adopt, terminate or modify any employee benefit plan without any obligation to the Executive
other than the obligation to treat Executive consistently with the treatment of senior management who hold equity generally. The Executive’s participation in any such plan or program shall be subject to the plan terms, provisions, rules and
regulations applicable thereto and any other restrictions or limitations imposed by law, including without limitation applicable tax rules. 

4.4 Vacation. The Executive shall be entitled to earn paid vacation at the rate of four (4) weeks per year, provided that
accrual shall be capped at six (6) weeks and once such cap has been reached, no more paid vacation shall accrue until the accrual is brought below the cap. Vacation shall otherwise be subject to the policies of the Employer as in effect from
time to time. 
 4.5 Expenses and Perquisites. In accordance with such policies as may be established and in effect from time
to time, the Employer will pay or reimburse the Executive for all reasonable and necessary out-of-pocket expenses, including without limitation travel, entertainment, professional dues, and provide allowances on a basis consistent with the
reimbursement allowance that the Employer provides to individuals serving in similar executive positions, subject to the presentment of appropriate documentary proof and to any applicable withholding requirements. In addition, Executive shall be
provided with a monthly car expense allowance of $1,000, subject to any applicable withholding requirements. The Executive’s monthly car expense allowance shall be reviewed periodically by the Board and may be increased from time to time above
the amount required by this Section 4.5 but may not be reduced below the then-current monthly car expense allowance paid to the Executive without the Executive’s consent. 

5. Compensation upon the Termination of the Executive’s Employment with the Company. 

5.1 Termination Due to Death or Disability of Executive. In the event the Executive’s employment is terminated by reason of
Death or Disability pursuant to Section 8.1, the Executive’s beneficiary or a beneficiary designated by the Executive in writing to the Employer (in such form as may be prescribed or acceptable to the Employer), or in the absence of such
beneficiary, the Executive’s estate, shall be entitled to receive the following: 
 (a) The Executive’s then current Base Salary
through the date of termination, to the extent not yet paid, compensation at the rate of the Base Salary for any vacation time accrued but not used as of the date of termination, and reimbursement for business expenses incurred by the Executive but
not yet paid to the Executive as of the date of termination; provided all expenses and supporting documentation required are submitted to the Employer within sixty (60) days of the date of termination, and provided further that such expenses
are reimbursable under the Employer’s policies as then in effect (all of the foregoing, “Final Compensation”). 

  
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 (b) In addition, the Executive shall be entitled to receive his Target Bonus, if any, in effect
for the year of termination, with such Target Bonus prorated by the number of full months that the Executive worked during the applicable year and payable at the same time as other executive officer bonuses are paid for the fiscal year of
termination (but not later than two and one-half (2 1⁄2) months after the end of such year) (the “Pro Rata Bonus”). 

(c) If as of the date of termination, the Executive holds any unvested options, restricted stock, or other equity in Parent or any unvested
common units or other equity in the Company (collectively, “Unvested Employer Equity”), then subject to the last sentence of this Section 5.1(c) any Unvested Employer Equity that is scheduled to vest based solely on continued
employment and the passage of time in the twelve (12)-month period immediately following the date of termination shall accelerate and be deemed vested as of the date of termination (“Partial Equity Acceleration”). For the avoidance of
doubt, any Parent stock options held by the Executive that are vested and exercisable as of the date of termination, including by reason of this Section 5.1(c), will remain exercisable for one year from the date of termination (but not beyond
their maximum term) and, subject to Section 12.4 below, shall expire at the end of such period to the extent not earlier exercised; for the further avoidance of doubt, any common units of the Company held by the Executive that are vested as of
the date of termination, including by reason of this Section 5.1(c), shall be treated in accordance with the terms of the Company’s LLC Agreement and the certificate under which such units were issued. If any Unvested Employer Equity
constitutes nonqualified deferred compensation subject to Section 409A (as defined in Section 9), any Partial Equity Acceleration (whether under this Section 5.1(c) or otherwise) of vesting with respect thereto shall accelerate
payment only to the extent consistent with Section 409A. 
 Apart from the Final Compensation, Pro Rata Bonus and Partial Equity Acceleration, the
Executive shall not otherwise be entitled to any additional compensation. 
 5.2 Termination Pursuant to Sections 8.2 and 8.3.
In the event that the Executive’s employment is terminated pursuant to Section 8.2 or Section 8.3, he shall not be entitled to any compensation other than Final Compensation. 

5.3 Termination Pursuant to Sections 8.4 and 8.5.  

(a) In the event of termination of the Executive’s employment by the Employer without Cause pursuant to Section 8.4 or the
Executive’s termination of employment for Good Reason pursuant to Section 8.5, in addition to providing Final Compensation, the Employer shall pay to the Executive the following: 

(i) an amount equal to one times (1x) his then-current Base Salary payable in installments during the twelve (12) month period
following the date of termination, plus, subject to the Executive’s timely election to continue his participation and that of his eligible dependents in the Employer’s group medical and dental plans under the federal law known as
“COBRA”, an amount, after all applicable taxes are paid, that equals the portion of 

  
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the monthly health premiums paid by the Employer on behalf of the Executive and his eligible dependents immediately prior to the date that his employment terminates (the “Health Continuation
Benefits”) until the earlier of the date that is twelve (12) months following the date of termination and the date that the Executive ceases to be eligible for such coverage (all of the foregoing, the “Severance Benefits”). After
the Health Continuation Benefits end, the Executive may continue coverage for the balance of the continuation period provided under COBRA, by paying the full premium cost plus a small administrative fee. Notwithstanding the foregoing, in the event
that the Employer’s payment of the Health Continuation Benefits would, in the determination of the Board or its delegate, subject the Executive, the Company or Parent to any tax or penalty under the Patient Protection and Affordable Care Act
(as amended from time to time, the “ACA”) or Section 105(h) of the Internal Revenue Code of 1986, as amended (“Section 105(h)”), or applicable regulations or guidance issued under the ACA or Section 105(h), the
Executive and the Employer agree to work together in good faith, consistent with the requirements for compliance with or exemption from Section 409A (as defined in Section 9), to restructure such benefit; plus 

(ii) the portion (if any) of any bonus earned under Section 4.2 for the performance year preceding the year of termination that remains
unpaid at the time of termination, such earned but unpaid amount to be paid within thirty (30) days of termination; plus 
 (iii) a
bonus amount equal to the product of (A) a fraction (determined as hereinafter provided), times (B) the Termination Bonus (as hereinafter defined), such bonus amount, if any, to be paid at the same time as annual bonuses for the year of
termination are paid but not later than by March 15 of the following calendar year. For purposes of this paragraph (iii), the fraction described in clause (A) shall equal the number of full months worked by the Executive during the
calendar year of termination and prior to termination, divided by twelve (12); and the Termination Bonus shall mean (X) during any period for which Parent is entitled to the benefit of the post-IPO transition rule at Treas. Regs.
§ 162.27-1(f) with respect to its annual bonus program, or if the annual bonus opportunity for the year of termination was not intended to qualify for the performance-based compensation exception described in Treas. Regs.
§ 162.27-1(e) (as determined by Parent), the Target Bonus for the year of termination, and (ii) in every other case, the lesser of the Target Bonus for the year of termination or the annual bonus that the Executive would have earned
under Section 4.2 for the year of termination had he remained employed. 
 (b) In addition, if the Executive holds Unvested Employer
Equity, then the Executive shall be entitled to Partial Equity Acceleration as described in Section 5.1(c), subject to the conditions described therein; provided, that for purposes of any termination to which this Section 5.3(b)
applies, any stock options held by the Executive that are vested and exercisable as of the date of termination, including by reason of this Section 5.3(b), will remain exercisable for ninety (90) days (but not beyond their maximum term)
and, subject to Section 12.4 below, shall expire at the end of such ninety (90) day or shorter period to the extent not earlier exercised; and further provided, that for purposes of any termination to which this Section 5.3(b)
applies, any common units held by the Executive that are vested as of the date of termination, including by reason of this Section 5.3(b), shall be treated in accordance with the terms of the Company’s LLC Agreement and the certificate
under which such units were issued. 
  

  
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 (c) Notwithstanding the foregoing, in the event of termination of the Executive’s
employment by the Employer without Cause pursuant to Section 8.4 or the Executive’s termination of employment for Good Reason pursuant to Section 8.5, in either case within twenty-four (24) months following a Change-in-Control,
in addition to providing Final Compensation and in lieu of the benefits described in Section 5.3(a) above, the Employer (including, for purposes of this Section 5.3(c), any successor) shall be obligated to and shall pay to the Executive
(i) an amount equal to the sum of (A) one and one-half times (1.5x) his then-current Base Salary (or, if greater, one and one-half times (1.5x) his Base Salary as in effect at the time of the Change-in-Control), plus (B) the
Pro Rata Bonus, plus (C) the amount, if any, determined under Section 5.3(a)(ii), plus (D) the Executive’s Target Bonus for the year of termination (determined by reference to the Executive’s Base Salary taken into account
under clause (A)), plus (ii) the Health Continuation Benefits, as described in Section 5.3(a) above, for the period commencing on the date of termination and continuing until the earlier of the date that is eighteen (18) months
following the date of termination and the date that the Executive ceases to be eligible for such coverage. The amount payable under clause (C) above shall be payable within thirty (30) days of termination, and the amounts payable under
clauses (A), (B) and (D) above shall be paid as follows: (X) to the extent not constituting nonqualified deferred compensation subject to Section 409A (as defined in Section 9), or if the Change-in-Control is a “change
in control event” as that term is defined in Section 409A, in a lump sum; and (Y) in every other case, in the same manner as payment would have been made under Section 5.3(a). In addition, if the Executive holds Unvested Employer
Equity, then subject to the last sentence of this Section 5.3(c), all such Unvested Employer Equity shall accelerate and be deemed vested as of the date of termination. For the avoidance of doubt, any Parent stock options held by the Executive
that are vested and exercisable as of such date of termination, including by reason of this Section 5.3(c), will remain exercisable for ninety (90) days from the date of termination (but not beyond their maximum term) and, subject to
Section 12.4 below, shall expire at the end of such period to the extent not earlier exercised; for the further avoidance of doubt, any common units of the Company held by the Executive that are vested as of such date of termination, including
by reason of this Section 5.3(c), shall be treated in accordance with the terms of the Company’s LLC Agreement and the certificate under which such units were issued. If any Unvested Employer Equity constitutes nonqualified deferred
compensation subject to Section 409A (as defined in Section 9), any acceleration of vesting with respect thereto shall accelerate payment only to the extent consistent with Section 409A. 

(d) Any obligation of the Employer or a successor to make any payments under this Section 5.3 (other than Final Compensation) or to
provide the Executive with vesting of Unvested Employer Equity under this Section 5.3 is expressly conditioned upon the Executive’s execution and return of an effective release of claims in the form attached hereto as Exhibit A (the
“Release”) not later than such number of days following the termination of his employment as the Employer determines that it must provide him by law to consider the Release in order to render it fully effective. The Release creates legally
binding obligations, and the Executive is hereby advised to consult an attorney before signing it. 
 (e) Any payments to which the
Executive is entitled under this Section 5.3 shall be payable in accordance with the normal payroll practices of the Employer and, subject to Sections 9.2 and 9.4, if they would otherwise have been payable earlier, will begin at the
Employer’s next regular payroll period which is at least five (5) business days following the later 

  
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of the effective date of the Release or the date the Release signed by the Executive is received by the Employer, but the first payment shall include (without interest) all amounts that would
have been payable earlier but for the provisions of this Section 5.3(e). 
 (f) The right of the Executive to receive and retain any
payments to which he is entitled under this Section 5.3 is expressly conditioned on his continuing compliance with his obligations under this Agreement, including without limitation his obligations under Sections 6 and 7 hereof, and with his
obligations under any other written agreement with the Company, Parent or any of Parent’s other subsidiary entities. 
 6.
Confidential Information, Employer Property and Assignment of Rights to Intellectual Property.  
 6.1 Without the
prior written consent of the Board, the Executive shall not during the Term or at any time thereafter divulge, furnish, disclose or make accessible (other than in the ordinary course of the business of the Employer during the Term) to anyone for use
in any way any Confidential Information. For the purposes of this Agreement, “Confidential Information” means any and all information of the Employer and/or any Affiliates that is not generally known by those with whom those entities
compete or do business, or with whom they plan to compete or do business, and any and all information, publicly known in whole or in part or not, which, if disclosed would assist in competition against them. Without limiting the generality of the
foregoing, Confidential Information includes all information, whether developed by the Executive or by others, concerning any trade secrets, confidential or secret designs, information related to the siting of new or existing restaurants, processes,
formulae, software or computer programs, plans, devices or material (whether or not patented or patentable, copyrighted or copyrightable) directly or indirectly useful in any aspect of the business of the Employer or any Affiliates, any confidential
customer or supplier lists of the Employer or any Affiliates, any terms of any relationship with any current or future supplier of the Employer or any Affiliates, any confidential or secret development or research work of the Employer or any
Affiliates, or any other confidential, secret or nonpublic aspects of the current and prospective business of the Employer or any Affiliates. The Executive acknowledges that the above-described knowledge and information constitutes a unique and
valuable asset of the Employer and Affiliates acquired at great time and expense by the Employer and Affiliates, and that any disclosure or other use of such knowledge or information other than for the sole benefit of the applicable Employer or
Affiliate entity would be wrongful and would cause irreparable harm to the Employer and Affiliates. The foregoing obligations of confidentiality, however, shall not apply to any knowledge or information which becomes publicly available, other than
as a direct or indirect result of the breach of this Agreement by the Executive. Nothing in this Agreement shall prevent the Executive from disclosing Confidential Information to the extent such disclosure is required by law or any order of a court
or government authority with jurisdiction; provided, however, that in the event the Executive becomes legally compelled to disclose any such information, then prior to making such required disclosure he shall, if possible, provide the Employer with
prompt written notice thereof so that the Employer may seek a protective order or other appropriate remedy prior to any such disclosure; and provided, further, that in the event such protective order or other remedy is not obtained the Executive
shall furnish only that information which is legally required and will exercise reasonable efforts to obtain reliable assurance that confidential treatment will be accorded such information. 

  
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 6.2 Surrender of Records and Property. Upon termination of his employment
hereunder, the Executive shall deliver promptly to the Employer all records, manuals, books, blank forms, documents, letters, memoranda, notes, notebooks, reports, data, tables, calculations or copies thereof, which are the property of the Employer
and which relate in any way to the business, products, practices or techniques of the Employer, and all other property, trade secrets and confidential information of the Employer, including, but not limited to, all documents which in whole or in
part contain any trade secrets or confidential information of the Employer, which in any of these cases are in his possession or under his control. 

6.3 Assignment of Rights to Intellectual Property. The Executive shall promptly and fully disclose all Intellectual Property to
the Employer. The Executive hereby assigns and agrees to assign to the Employer (or as otherwise directed by the Employer) the Executive’s full right, title and interest in and to all Intellectual Property. The Executive agrees to execute any
and all applications for domestic and foreign patents, copyrights or other proprietary rights and to do such other acts (including without limitation the execution and delivery of instruments of further assurance or confirmation) requested by the
Employer to assign the Intellectual Property to the Employer (or as otherwise directed by the Employer) and to permit the Employer to enforce any patents, copyrights or other proprietary rights to the Intellectual Property. The Executive will not
charge the Employer for time spent in complying with these obligations. All copyrightable works that the Executive creates during his employment shall be considered “work made for hire” and shall, upon creation, be owned exclusively by the
Employer. The Executive acknowledges that this Section 6.3 shall not apply to any invention that qualifies fully under the provisions of California Labor Code Section 2870, the terms of which are set forth in Exhibit B to this Agreement.

 7. Restricted Activities. 

7.1 Non-Competition. During the Term, during any period in which the Executive is a member of the Company under the
Company’s Limited Liability Company Agreement (the “Membership Term”), and for the two (2) year period following the conclusion of the Membership Term (in the aggregate, the “Restricted Period”), the Executive shall not
engage in any Competing Business, either directly or indirectly, as a principal or for his own account or solely or jointly with others, or as a stockholder or equity owner in or officer, director, employee or consultant of, any corporation or other
entity, in any geographic area in which the Company or any of its Affiliates operates restaurants or is actively considering new restaurant locations at any time during the Term or the Membership Term, or with respect to the portion of the
Restricted Period that follows conclusion of the Membership Term, at the time the Membership Term concludes. For the purposes of this Agreement, a “Competing Business” is any business engaged in the operation of one or more restaurants
that primarily sell hamburgers at an average price of less than $9.00 each in a facility of less than 5,000 square feet. For the avoidance of doubt, nothing herein shall prohibit the acquisition by Executive of an interest representing 5% or less of
the outstanding shares of a publicly-traded Competing Business. 
 7.2 Agreement Not to Hire or Solicit Employees. The
Executive agrees that during the Restricted Period, the Executive will not, and will not assist any other Person to, (a) hire or solicit for hiring any employee of the Employer or any Affiliate or seek to persuade any employee of the Employer
or any Affiliate to discontinue employment or (b) solicit or encourage 

  
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any independent contractor providing services to the Employer or any Affiliate to terminate or diminish its relationship with them. For the purposes of this Agreement, an “employee” of
the Employer or any Affiliate is any person who was such at any time within the preceding eighteen (18) months. 
 7.3 Agreement
Not to Solicit Business Partners. The Executive agrees that, during the Restricted Period, the Executive will not directly or indirectly (a) solicit or encourage any supplier, contractor or other business partner of the Employer or any
Affiliate to terminate or diminish its relationship with them; or (b) seek to persuade any such business partner or prospective business partner of the Employer or any Affiliate to conduct with anyone else any business or activity which such
business partner or prospective business partner conducts or could conduct with the Employer or any Affiliate; provided that these restrictions shall apply (i) only with respect to those Persons who are or have been a business partner of the
Employer at any time within the immediately preceding two (2)-year period or whose business has been solicited on behalf of the Employer by any of their officers, employees or agents within said two (2)-year period, other than by form letter,
blanket mailing or published advertisement, and (ii) only if the Executive has had business contact with such Person during his employment or other association with the Employer or any Affiliate or has had access to Confidential Information
which would assist in the Executive’s solicitation of such Person. 
 7.4 Injunctive Relief. In signing this Agreement,
the Executive gives the Employer assurance that he has carefully read and considered all the terms and conditions of this Agreement, including the restraints imposed on him under this Section 7. The Executive agrees without reservation that
these restraints are necessary for the reasonable and proper protection of the Employer and Affiliates, and that each and every one of the restraints is reasonable in respect to subject matter, length of time and geographic area. The Executive
further agrees that, were he to breach any of the covenants contained in this Section 7, however caused, the damage to the Employer would be irreparable. The Executive therefore agrees that the Company or Parent, in addition to any other
remedies available to it, shall be entitled to obtain preliminary and permanent injunctive relief as authorized by applicable law against any such breach or threatened breach in any court of competent jurisdiction, without posting bond. The
Executive and the Employer further agree that, in the event that any provision of this Section 7 is determined by any court of competent jurisdiction to be unenforceable by reason of its being extended over too great a time, too large a
geographic area or too great a range of activities, that provision shall be deemed to be modified to permit its enforcement to the maximum extent permitted by law. The Executive and the Employer also agree that the period of any restriction under
this Section 7 shall be tolled, and shall not run, during any period of breach thereof. It is also agreed that each Affiliate shall have the right to enforce all of the Executive’s obligations to that Affiliate under this Agreement,
including without limitation pursuant to this Section 7. No claimed breach of this Agreement or other violation of law attributed to the Employer or any Affiliate, or change in the nature of the Executive’s employment or other relationship
with the Employer or any Affiliate, shall operate to excuse the Executive from the performance of his obligations under this Section 7.4. 

  
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 8. Termination. 

8.1 Death or Disability of Executive. The Executive’s employment hereunder shall terminate immediately upon the death of
Executive or at the option of the Board upon the Disability of the Executive. For purposes of this Agreement, “Disability” shall exist when any illness, injury, accident or condition of either a physical or psychological nature which,
despite reasonable accommodations, results in the Executive being unable to perform substantially all of the duties of his employment with the Employer for a period of ninety (90) consecutive days or for one hundred eighty (180) days in
any three hundred sixty-five (365) day period. If any question shall arise as to whether during any period the Executive is disabled, the Executive may, and at the request of the Employer shall, submit to a medical examination by a physician
selected by the Employer to whom the Executive or his duly appointed guardian, if any, has no reasonable objection to determine whether the Executive is so disabled and such determination shall for the purposes of this Agreement be conclusive of the
issue. If such question shall arise and the Executive shall fail to submit to such medical examination, the Employer’s determination of the issue shall be binding on the Executive. In the event the Executive objects to the physician selected by
the Employer, within thirty (30) days thereof, the Executive and the Employer shall each submit the names of three (3) qualified physicians and alternatively strike the names until one name remains. A coin flip shall decide which party has
the first strike. 
 8.2 Resignation other than for Good Reason. Other than in connection with a termination pursuant to
Section 8.5, the Executive may resign from the Company at any time following thirty (30) days’ prior written notice to the Employer and provided the Executive agrees to cooperate with the Employer and provide reasonable assistance in
the appointment and training of a successor for a period of one month following the date of resignation. The Board may elect to waive such notice period or any portion thereof. In connection therewith, if applicable, the Executive shall also resign
all officer and director positions with the Employer and Affiliates, including as a member of the Board. 
 8.3 Termination for
Cause. The Board may terminate the Executive’s employment hereunder at any time for “Cause” (as hereinafter defined) immediately upon written notice to the Executive. Such written notice shall set forth with reasonable
specificity the Board’s basis for such termination. For purposes of this Agreement, “Cause” for the Executive’s termination will exist at any time after the happening of one or more of the following events, in each case as
determined in good faith by the Board: 
 (a) The Executive’s — 

(i) willful misconduct or gross negligence in the performance of his duties hereunder which is not remedied (if remediable) within thirty
(30) business days after written notice from the Board, which written notice shall state that failure to remedy such conduct may result in termination for Cause; 

(ii) willful refusal to comply in any material respect with the legal directives of the Board so long as such directives are not inconsistent
with the Executive’s position and duties, or a material breach of this Agreement or any written Employer policy which if not remedied (if remediable) within thirty (30) business days after written notice from the Board, which written
notice shall state that failure to remedy such conduct may result in termination for Cause; 

  
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 (b) the Executive’s deliberate attempt to do injury to the Employer or any Affiliate; 

(c) the Executive’s commission of any act of fraud, willful misrepresentation, misappropriation, embezzlement or any act of similar
gravity involving moral turpitude; 
 (d) the Executive’s abuse of controlled substances or alcohol which materially impairs the
goodwill or business of the Employer or any Affiliate or causes material damage to its property, goodwill or business or impairs Executive’s fulfillment of his responsibilities to the Employer or any Affiliate; or 

(e) the Executive’s commission of a felony that is reasonably likely to cause material harm to the standing and reputation of the
Employer or any Affiliate. 
 8.4 Termination Without Cause. The Board shall have the absolute right to terminate the
Executive’s employment without Cause at any time upon thirty (30) days’ written notice to the Executive. Termination “without Cause” shall mean termination of employment on any basis other than the termination of
Executive’s employment hereunder pursuant to Sections 8.1, 8.2, 8.3 or 8.5. 
 8.5 Resignation for Good Reason. The
Executive may resign from the Employer at any time for “Good Reason” (as hereinafter defined) if: (A) the Executive provides the Employer written notice setting forth in reasonable detail the condition giving rise to Good Reason not
later than ninety (90) days following the initial existence of such condition; (B) the Employer fails to remedy such condition within thirty (30) days following the receipt of such notice; and (C) the Executive resigns his
employment by written notice to the Employer within thirty (30) days of the expiration of such thirty day cure period. For purposes of this Agreement, “Good Reason” means that any of the following has occurred without the
Executive’s consent: (i) there is any material adverse change in the nature or scope of the Executive’s responsibilities, or the Executive is assigned duties that are materially inconsistent with his duties as set forth in this
Agreement, (ii) there is any material reduction in said duties, (iii) there is any reduction in the Executive’s compensation or benefits (other than as a result of a change in benefits consistently applied to similarly-situated
service providers who hold equity; in no event however shall the Employer be authorized to reduce the Executive’s Base Salary then in effect without the Executive’s consent), (iv) the Executive is not permitted by the Employer to take
an unpaid leave of absence related to the serious illness of a member of his immediate family, or other personal emergency, (v) there is a material failure, after ten (10) days notice and opportunity to cure, by the Employer to perform any
of its obligations to the Executive under this Agreement, (vi) the Employer relocates its executive offices to a location more than twenty-five (25) miles from Irvine, California, or (vii) the failure of any successor to honor any
term of this Agreement. In connection with any such resignation, if applicable, the Executive shall also resign all officer and director positions with the Employer and Affiliates, including as a member of the Board. 

  
 -11- 

 8.6 Effect of Termination. Provisions of this Agreement shall survive any
termination if so provided in this Agreement or if necessary or desirable to accomplish the purposes of other surviving provisions, including without limitation the Executive’s obligations under Sections 6 and 7 of this Agreement. Upon
termination by either the Executive or the Employer, all rights, duties and obligations of the Executive and the Employer to each other shall cease, except as otherwise expressly provided in this Agreement. The Executive recognizes that, except as
expressly provided in Section 5.3 hereof, no compensation is earned or will be paid after termination of employment. Nothing in this Agreement is intended or shall be construed to affect any insurance proceeds to which the Executive or the
Executive’s beneficiary may be entitled or the Executive’s right in any vested equity awards. 
 9.
Section 409A. Notwithstanding any other provision of this Agreement to the contrary: 
 9.1 It is the intent of the
parties that payments and benefits under this Agreement comply with or be exempt from Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and guidance promulgated thereunder (collectively “Section
409A”); provided, that nothing herein shall be construed as a representation, promise or guarantee by the Employer as to the tax treatment of any payment or benefit that may be paid or provided pursuant to this Agreement. 

9.2 If at the time of the Executive’s separation from service, the Executive is a “specified employee,” as hereinafter
defined, any and all amounts payable under Section 5 in connection with such separation from service that constitute deferred compensation subject to Section 409A, as determined by the Employer in its sole discretion, and that would (but
for this sentence) be payable within six (6) months following such separation from service, shall instead be paid on the date that follows the date of such separation from service by six (6) months (or upon death if earlier). For purposes
of the preceding sentence, “separation from service” shall be determined in a manner consistent with subsection (a)(2)(A)(i) of Section 409A and the term “specified employee” shall mean an individual determined by the
Employer to be a specified employee as defined in subsection (a)(2)(B)(i) of Section 409A. 
 9.3 Each payment made under this
Agreement shall be treated as a separate payment and any right to a series of installment payments under this Agreement is to be treated as a right to a series of separate payments. 

9.4 If the Executive is required to execute (and to not revoke) a timely and effective Release as provided for in Exhibit A in exchange
for any payments or benefits hereunder, and the period available to execute (and to not revoke) the Release spans the end of a calendar year, any payment contingent on the execution of the Release shall not be made until the second calendar year, as
required by the applicable terms of this Agreement and Section 409A. 
 9.5 Any reimbursement provided for under this Agreement
that would constitute nonqualified deferred compensation subject to Section 409A shall be subject to the following additional rules: (i) no reimbursement of any such expense shall affect the Executive’s right to reimbursement of any
such expense in any other calendar year; (ii) reimbursement of the 

  
 -12- 

 
expense shall be made, if at all, promptly, but not later than the end of the calendar year following the calendar year in which the expense was incurred; and (iii) the right to
reimbursement shall not be subject to liquidation or exchange for any other benefit. 
 10. Assignment. This Agreement shall
not be assignable, in whole or in part, by either party without the written consent of the other party, except that Parent may, without the consent of the Executive, assign its rights and obligations under this Agreement, and/or cause the Company to
assign its rights and obligations under this Agreement, to any corporation, firm or other business entity (i) with or into which the Company or Parent may merge or consolidate, or (ii) to which the Company or Parent may sell or transfer
all or substantially all of its assets or of which 50% or more of the equity investment and of the voting control is owned, directly or indirectly, by, or is under common ownership with, Parent. Upon such assignment, Parent or the Company, as the
case may be, shall obtain the assignee’s written agreement enforceable by the Executive to assume and perform, from and after the date of such assignment, the terms, conditions, and provisions imposed by this Agreement upon the Employer and
assigned to the assignee. After any such assignment and such written agreement by the assignee, the Employer shall be discharged from all further liability hereunder with respect to the matters so assigned and such assignee shall thereafter be
deemed to be the Employer to the extent of such assignment for the purposes of all provisions of this Agreement including this Section 10. 

11. Definitions. For purposes of this Agreement, the following definitions apply: 

11.1 “Affiliates” means all persons and entities directly or indirectly controlling, controlled by or under common control
with Parent, where control may be by management authority, equity interest or otherwise. 
 11.2 “Change-in-Control” means
the occurrence, following the date of this Agreement, of (i) a sale or transfer (other than by way of merger or consolidation), of all or substantially all of Parent’s assets to any Person, (ii) any merger, consolidation or other
business combination transaction of Parent with or into another corporation, entity or Person, other than a transaction in which the holders of at least a majority of the shares of voting capital stock of Parent outstanding immediately prior to such
transaction continue to hold (either by such shares remaining outstanding or by their being converted into shares of voting capital stock of the surviving entity) a majority of the total voting power represented by the shares of voting capital stock
of Parent (or the surviving entity) outstanding immediately after such transaction, or (iii) the direct or indirect acquisition (including by way of a tender or exchange offer) by any Person, or Persons acting as a group, of beneficial
ownership or a right to acquire beneficial ownership of shares representing more than 50% of the total voting power of the then-outstanding shares of capital stock of Parent. 

11.3 “Intellectual Property” means inventions, discoveries, developments, methods, processes, compositions, works, concepts
and ideas (whether or not patentable or copyrightable or constituting trade secrets) conceived, made, created, developed or reduced to practice by the Executive (whether alone or with others, whether or not during normal business hours or on or off
Employer premises) during the Executive’s employment that relate either to the business of the Employer or any Affiliate or to any prospective activity of the Employer or any Affiliate or that result from any work performed by the Executive for
the Employer or any Affiliate or that make use of Confidential Information or any of the equipment or facilities of the Employer or any Affiliate. 

  
 -13- 

 11.4 “Person” means an individual, a corporation, a limited liability company,
an association, a partnership, an estate, a trust or any other entity or organization, other than the Company, Parent or any Affiliate. 

12. Miscellaneous. 

12.1 Governing Law. This Agreement is made and shall be construed under the laws of the State of California without regard to its
conflicts of law principles. 
 12.2 Prior Agreements. This Agreement contains the entire agreement of the parties relating to
the subject matter hereof and supersedes all prior agreements and understanding with respect to such subject matter (including without limitation the Prior Employment Agreement), and the parties hereto have made no agreements, representations or
warranties relating to the subject matter of this Agreement which are not set forth herein. Notwithstanding the foregoing, this Agreement shall not supersede any effective assignment of intellectual property to the Company or any of its affiliates
pursuant to the Prior Employment Agreement or constitute a waiver by the Company, Parent or any Affiliate of any rights they have or may have under the Prior Employment Agreement with respect to confidentiality, intellectual property and similar
obligations imposed upon Employee. 
 12.3 Non-Disclosure. The Executive will not disclose the terms of this Agreement to any
other employee of the Employer without the prior written consent of the Board. 
 12.4 Tax Treatment. The Employer may
withhold from all compensation payable pursuant hereto all sums which in the determination of the Company are required to be withheld under all federal, state and local laws, including governmental regulations or rulings, with respect to payment of
compensation, benefits or perquisites. Without limiting the generality of foregoing, in connection with any compensation subject to tax withholding that is attributable to the exercise of a Parent stock option or to the vesting of, or the delivery
of Parent stock upon the vesting of, other Parent equity, in each case upon or following termination of the Executive’s employment under Section 8.1, Section 8.4 or Section 8.5, where in Parent’s determination the Executive
would be precluded by law or the Employer’s trading policies from selling Parent stock in an amount sufficient to pay the minimum required withholding associated with such exercise, vesting or delivery, Parent may either (i) provide for
share withholding to enable the Executive to pay up to the full amount of such minimum required withholding, or (ii) extend, to the extent permitted under Section 409A (as determined by Parent), the final exercise date of such option or
the vesting date of such other Parent equity to a date when in Parent’s reasonable expectation the Executive will no longer be subject to such trading limitations. The Employer’s treatment under this Section 12.4 of remuneration for
any period shall be without prejudice to the Employer’s right, exercisable in its discretion, to report such remuneration as it determines to be appropriate or to treat differently remuneration payable for any other period. 

  
 -14- 

 12.5 Amendments. No amendment or modification of this Agreement shall be deemed
effective unless made in writing signed by the parties hereto. 
 12.6 No Waiver. No term or condition of this Agreement shall
be deemed to have been waived nor shall there be any estoppel to enforce any provisions of this Agreement, except by a statement in writing signed by the party against whom enforcement of the waiver or estoppel is sought. Any written waiver shall
not be deemed a continuing waiver unless specifically stated, shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically
waived. 
 12.7 Severability. To the extent any provision of this Agreement shall be invalid or unenforceable, it shall be
considered deleted and the remainder of such provision and of this Agreement shall be unaffected and shall continue in full force and effect. In furtherance and not in limitation of the foregoing, should the duration or geographical extent of, or
business activities covered by any provision of this Agreement be in excess of that which is valid and enforceable under applicable law, then such provision shall be construed to cover only that duration, extent or activities which may validly and
enforceably be covered. The Executive acknowledges the uncertainty of the law in this respect and expressly stipulates that this Agreement shall be given the construction which renders its provisions valid and enforceable to the maximum extent (not
exceeding its express terms) possible under applicable law. 
 12.8 Attorneys’ Fees. In the event either party brings a
claim relating to or arising out of the breach, interpretation, or enforcement of this Agreement, the prevailing party shall be entitled to recover such party’s reasonable attorneys’ fees and costs with regard to such claim. 

12.9 Notices. All notices or other communications required or permitted hereunder shall be in writing and shall be deemed given
or delivered when delivered personally or four days after being mailed by registered or certified mail, return receipt requested, or one day after being sent by private overnight courier addressed as set forth below, or if sent by facsimile
transmission, on the first business day after transmission provided that an original copy has been deposited in the U.S. mail: 
 If to
Executive, to: 
 Ira Fils 

48 Ledgewood Drive 
 Rancho Santa
Margarita, CA 92688 
 If by fax, to: (949) 852-4650 

If to the Employer, the Company, Parent, or the Board, to: 

Christopher Reilly 
 KarpReilly
LLC 

  
 -15- 

 104 Field Point Road 

Greenwich, CT 06830 
 If by fax,
to: (203) 504-9912 
 With a copy that does not constitute notice to: 

Carl Marcellino 
 Ropes &
Gray LLP 
 1211 Avenue of the Americas 

New York, NY 10036 
 or to such other address as
such party may indicate by a notice delivered to the other party hereto. 
 *         *
        * 

  
 -16- 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
written above. 
  

			
	THE COMPANY:
	  
 By:
		 /s/ Russell Bendel

			Name: Russell Bendel
			Title: Chief Executive Officer
	  
 PARENT:

	  
 By:
		 /s/ Russell Bendel

			Name: Russell Bendel
			Title: Chief Executive Officer
	  
 THE EXECUTIVE:

	  
 /s/ Ira Fils

	Name: Ira Fils

  
 -17- 

 Exhibit A 

Form of 
 Release of Claims

 FOR AND IN CONSIDERATION OF the pay and benefits to be provided to me in connection with the termination of my employment, as set
forth in the Amended and Restated Employment Agreement between and among me, The Habit Restaurants, LLC, a Delaware Limited Liability Company (the “Company”) and The Habit Restaurants, Inc. (“Parent”) (the Company and Parent
being hereinafter referred to collectively as the “Employer”) dated as of July 1, 2015 (“Agreement”), which are conditioned upon my signing this Release of Claims and to which I am not otherwise entitled, and for other good
and valuable consideration, I, on my own behalf and on behalf of my heirs, executors, beneficiaries and personal representatives, and all others connected with me, hereby release and forever discharge Parent and its subsidiaries, including the
Company, and other affiliates and all of their respective past, present and future officers, directors, shareholders, employees, agents, general and limited partners, members, managers, joint venturers, employee benefits plans, representatives,
successors and assigns, and all others connected with any of them, both individually and in their official capacities, from any and all causes of action, rights and claims, of any nature or type, known or unknown, which I have had in the past, now
have, or might now have, through the date of my signing of this Release of Claims, including, but not limited to, any such causes of action, rights or claims in any way resulting from, arising out of or connected with my employment by, investment
in, or other relationship with the Employer or any of Parent’s affiliates or the termination of that employment, investment and/or relationship or pursuant to any federal, state or local law, regulation or other requirement (including without
limitation Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and the wage and hour, wage payment and fair employment practices laws of the state or states in which I have
provided services to the Employer or any of Parent’s affiliates, each as amended from time to time); provided that nothing herein shall be a release of my rights to enforce: (i) any right or claim for indemnification pursuant to applicable
law or the governing documents of Parent or the Company, (ii) any right or claim to vested benefits including but not limited to pension or 401(k) benefits, if any, (iii) my rights in any vested equity interest in Parent or the Company,
(iv) any right I may have to continued coverage under the Employer’s group health and dental plans pursuant to the federal law known as “COBRA”, or (v) my rights to enforce any provision of the Agreement or the Limited
Liability Company Agreement of the Company, as amended. 
 In signing this Release of Claims, I acknowledge that I have had a reasonable
amount of time to consider the terms of this Release of Claims and that I am signing this Release of Claims voluntarily and with a full understanding of its terms. 

In signing this Release of Claims, I acknowledge my understanding that I may not sign it prior to the termination of my employment, but that I
may consider the terms of this Release of Claims for up to 21 days (or such longer period as the Employer may specify in order to render this Release of Claims fully effective) from the later of the date my employment with the Employer terminates
and the date I receive this Release of Claims. I also acknowledge that I am advised by Parent and its subsidiaries and other affiliates, including the Company, to seek the advice of an attorney prior to signing this Release of Claims; that I have
had sufficient time to 

 
consider this Release of Claims and to consult with an attorney, if I wished to do so, or to consult with any other person of my choosing before signing; and that I am signing this Release of
Claims voluntarily and with a full understanding of its terms. 
 I further acknowledge that, in signing this Release of Claims, I have not
relied on any promises or representations, express or implied, that are not set forth expressly in the Agreement. I understand that I may revoke this Release of Claims at any time within 7 days of the date of my signing by written notice to the
Chief Executive Officer of the Company and that this Release of Claims will take effect only upon the expiration of such seven-day revocation period and only if I have not timely revoked it. 

With respect to the matters herein stated as the subject of release, I do hereby waive and relinquish any and all rights which I may have
under the provisions of Section 1542 of the Civil Code of the State of California, which Section reads as follows: 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT
THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 
 I
understand that nothing contained in this Release of Claims shall be construed to prohibit me from filing a charge with or participating in any investigation or proceeding conducted by the federal Equal Employment Opportunity Commission or a
comparable state or local agency, provided, however, that I hereby agree to waive my right to recover monetary damages or other individual relief in any charge, complaint or lawsuit filed by me or by anyone else on my behalf. 

Intending to be legally bound, I have signed this Release of Claims under seal as of the date written below. 

 

			
	Signature:
                                         
                                         
  		
		
	Name (please print):
                                         
                           		
		
	Date Signed:
                                         
                                       		

  
 2 

 Exhibit B 

Invention Assignment Notice 

You are hereby notified that the Amended and Restated Employment Agreement between and among you, The Habit Restaurants, LLC and The Habit
Restaurants, Inc. dated as of July 1, 2015, does not apply to any invention which qualifies fully under the provisions of Section 2870 of the California Labor Code. Following is the text of California Labor Code § 2870: 

CALIFORNIA LABOR CODE SECTION 2870 
 (a) Any
provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her
own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either: 

(1) Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably
anticipated research or development of the employer; or 
 (2) Result from any work performed by the employee for the employer. 

(b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be
assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable. 
  

			
			THE HABIT RESTAURANTS, LLC
			  
 By:
                                         
                                         
          

 I acknowledge receiving a copy of this Invention Assignment Notice: 

 

			
	  
		
	Ira Fils		
	
	Date:
                                         
                                         
                

  
 3Exhibit 4.1

 

	
 
    

 

 

REGISTRATION RIGHTS AGREEMENT

 

BY AND AMONG

 

PHILADELPHIA ENERGY SOLUTIONS INC.,

 

PESC COMPANY, LP,

 

AND

 

THE STOCKHOLDERS IDENTIFIED ON SCHEDULE 1 HERETO

 

DATED AS OF [·], 2015

 

	
 
    

 

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT (the “Agreement”), dated as of [·], 2015, is made by and among Philadelphia Energy Solutions Inc., a Delaware corporation (the “Corporation”), PESC Company, LP, a Delaware limited partnership (“PESC Company”), and the Carlyle Fund Stockholders (as defined herein).

 

WHEREAS, the Corporation is contemplating an offer and sale of its shares of Class A common stock, par value $0.001 per share (the “Class A Common Stock”), to the public in an underwritten initial public offering (the “IPO”);

 

WHEREAS, in connection with the IPO, PESC Company will enter into that certain Second Amended and Restated Limited Liability Company Agreement of Philadelphia Energy Solutions LLC, a Delaware limited liability company (“PES LLC”) (such agreement, as it may be amended, restated, amended and restated, supplemented or otherwise modified form time to time, the “PES LLC Agreement”) and will receive LLC Units (as defined herein) and shares of Class B common stock, par value $0.001 per share, of the Corporation (the “Class B Common Stock”);

 

WHEREAS, in connection with the IPO, the Carlyle Fund Stockholders will receive shares of Class A Common Stock; and

 

WHEREAS, in connection with the IPO and the related transactions described in the IPO Registration Statement, the Corporation has agreed to grant to the Holders (as defined herein) certain rights with respect to the registration of the Registrable Securities (as defined herein) on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual promises, covenants and agreements of the Parties, and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

Section 1.                                           Definitions and Interpretation.

 

(a)                                 Definitions.  For purposes of this Agreement, the following terms shall have the meanings specified in this Section 1(a):

 

“Affiliate” shall mean, with respect to any specified Person, (i) any Person that directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such specified Person or (ii) in the event that the specified Person is a natural Person, a member of the immediate family of such Person.

 

“Agreement” shall have the meaning set forth in the preamble.

 

“Board” shall mean the Board of Directors of the Corporation.

 

“Business Day” shall mean any day other than a Saturday or a Sunday or a day on which banks located in New York City, New York generally are authorized or required by Law to close.

 

 

“Carlyle Fund Stockholders” shall mean each of the entities identified on Schedule 1 hereto.

 

“Carlyle PES” shall mean Carlyle PES, L.L.C., a Delaware limited liability company.

 

“Class A Common Stock” shall have the meaning set forth in the recitals.

 

“Class B Common Stock” shall have the meaning set forth in the recitals.

 

“Control,” including the correlative terms “Controlling,” “Controlled by” and “under common Control with,” shall mean the possession, directly or indirectly (through one or more intermediaries, of the power to direct or cause the direction of the management and policies (whether through ownership of voting securities, by contract or otherwise) of a Person.

 

“Corporation” shall have the meaning set forth in the preamble.

 

“Corporation Indemnified Persons” shall have the meaning set forth in Section 7(b).

 

“Demand Notice” shall have the meaning set forth in Section 2(a).

 

“Demand Registration” shall have the meaning set forth in Section 2(a).

 

“Equity Securities” shall mean (i) with respect to any Person that is a corporation, any and all shares, interests or equivalents in capital stock of such corporation (whether voting or nonvoting and whether common or preferred), (ii) with respect to any Person that is not a corporation, individual or governmental entity, any and all partnership, membership, limited liability company or other equity interests of such Person that confer on the holder thereof the right to receive a share of the profits and losses of, or the distribution of assets of the issuing Person, and (iii) any and all warrants, rights (including conversion and exchange rights) and options to purchase any security described in the clause (i) or (ii) above. Unless otherwise indicated, the term “Equity Securities” refers to Equity Securities of the Corporation.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and any successor statute thereto and the rules and regulations of the SEC promulgated thereunder.

 

“Holder” shall mean each of PESC Company and the Carlyle Fund Stockholders for as long as such Person is a record owner of Registrable Securities.

 

“Indemnified Party” and “Indemnifying Party” shall have the respective meanings set forth in Section 7(c).

 

“IPO” shall have the meaning set forth in the recitals.

 

“IPO Registration Statement” shall mean the Registration Statement on Form S-1 (File No. 333-202119) and the prospectus contained therein, relating to the IPO filed by the Corporation with the SEC under the Securities Act, as it has been or as it may be amended or supplemented from time to time.

 

2

 

“LLC Units” shall mean the common units representing limited liability company interests in PES LLC.

 

“Losses” shall have the meaning set forth in Section 7(a).

 

“Notice” shall have the meaning set forth in Section 2(a).

 

“Parties” shall mean the Corporation, PESC Company and the Carlyle Fund Stockholders.

 

“Partner Distribution” shall have the meaning set forth in Section 2(a).

 

“Percentage Interest” shall mean, as among the Registrable Securities and with respect to a Holder at a particular time, such Holder’s percentage interest in the Corporation determined by dividing such Holder’s Registrable Securities by the total Registrable Securities of all Holders at such time.  The Percentage Interest of each Holder shall be calculated to the 4th decimal place and the Percentage Interest of the Carlyle Fund Stockholders shall take into account the number of Registrable Securities that correspond to Carlyle PES’ ownership of PESC Company.

 

“Person” shall mean an individual or any corporation, partnership, limited liability company, trust, unincorporated organization, association, joint venture or any other organization or entity, whether or not a legal entity.

 

“PES LLC” shall have the meaning set forth in the recitals.

 

“PES LLC Agreement” shall have the meaning set forth in the recitals.

 

“PESC Company” shall have the meaning set forth in the preamble.

 

“Piggyback Notice” shall have the meaning set forth in Section 3(a).

 

“Piggyback Registration” shall have the meaning as set forth in Section 3(a).

 

“Proceeding” shall mean an action, claim, suit, arbitration or proceeding (including an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

 

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

 

“Public Offering” shall mean any underwritten public offering of the Corporation’s Equity Securities by the Corporation, the Holders and/or any other holders of the Corporation’s Equity Securities pursuant to an effective registration statement under the Securities Act or the

 

3

 

consummation of a similar public offering by the Corporation pursuant to a comparable process under applicable foreign securities laws.

 

“Registrable Securities” shall mean (i) any Class A Common Stock (A) issued by the Corporation in connection with the IPO to the Carlyle Fund Stockholders or (B) issued by the Corporation in a Share Settlement (x) in connection with the redemption by PES LLC of LLC Units owned by PESC Company or (y) at the election of the Corporation, in a direct exchange for LLC Units owned by PESC Company, in each case in accordance with the terms of the PES LLC Agreement; (ii) any common Equity Securities of the Corporation or of any Subsidiary of the Corporation issued or issuable with respect to the securities referred to in clause (i) above by way of dividend, distribution, split or combination of securities, or any recapitalization, merger, consolidation or other reorganization; and (iii) any other shares of Class A Common Stock owned by Persons that are the registered holders of securities described in clauses (i) or (ii) above.  As to any particular Registrable Securities owned by any Person, such securities shall cease to be Registrable Securities on the date such securities have been (a) sold or distributed pursuant to a Public Offering, (b) sold in compliance with Rule 144 following the consummation of the IPO or (c) repurchased by the Corporation or a Subsidiary of the Corporation.  For purposes of this Agreement, a Person shall be deemed to be a Holder, and the Registrable Securities shall be deemed to be in existence, whenever such Person has the right to acquire, directly or indirectly, such Registrable Securities (upon conversion or exercise in connection with a transfer of securities or otherwise, but disregarding any restrictions or limitations upon the exercise of such right), whether or not such acquisition has actually been effected, and such Person shall be entitled to exercise the rights of a holder of Registrable Securities hereunder; provided, however, a holder of Registrable Securities may only request that Registrable Securities in the form of Equity Securities of the Corporation that is registered or to be registered as a class under Section 12 of the Exchange Act be registered pursuant to this Agreement.  For the avoidance of doubt, while LLC Units and/or shares of Class B Common Stock may constitute Registrable Securities, under no circumstances shall the Corporation be obligated to register LLC Units or shares of Class B Common Stock, and only shares of Class A Common Stock issuable upon redemption or exchange of such LLC Units and/or Class B Common Stock will be registered.

 

“Registration Statement” shall mean any registration statement of the Corporation under the Securities Act which permits the public offering of any of the Registrable Securities pursuant to the provisions herein, including the Prospectus, amendments and supplements to such registration statement, including post-effective amendments, all exhibits and all material incorporated by reference or deemed to be incorporated by reference in such registration statement.

 

“Rule 144” shall mean Rule 144 under the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC.

 

“SEC” shall mean the Securities and Exchange Commission or any successor agency having jurisdiction under the Securities Act.

 

“Securities Act” shall mean the Securities Act of 1933, as amended, and any successor statute thereto and the rules and regulations of the SEC promulgated thereunder.

 

4

 

“Share Settlement” shall have the meaning set forth in the PES LLC Agreement.

 

“Stockholder Indemnified Persons” shall have the meaning set forth in Section 7(a).

 

“Subsidiary” shall mean, with respect to the Corporation, any corporation, limited liability company, partnership, association or other business entity of which (i) if a corporation, a majority of the total voting power of Equity Securities of such Person entitled (without regard to the occurrence of any contingency) to vote in the election of directors is at the time owned or controlled, directly or indirectly, by the Corporation, or (ii) if a limited liability company, partnership, association or other business entity, either (x) a majority of the Equity Securities of such Person entitled (without regard to the occurrence of any contingency) to vote in the election of managers, general partners or other oversight board vested with the authority to direct management of such Person is at the time owned or controlled, directly or indirectly, by the Corporation or (y) the Corporation or one of its Subsidiaries is the sole manager or general partner of such Person.

 

(b)                                 Interpretation.  In this Agreement: (a) pronouns in the masculine, feminine and neuter genders shall be construed to include any other gender, and words in the singular form shall be construed to include the plural and vice versa; (b) the term “including” shall be construed to be expansive rather than limiting in nature and to mean “including, without limitation;” (c) the word “or” is inclusive, (d) references to “recitals” and Sections refer to “recitals” and Sections of this Agreement; (e) the words “this Agreement,” “herein,” “hereof,” “hereby,” “hereunder” and words of similar import refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited; (f) references in any Section or definition to any clause means such clause of such Section or definition; (g) all references to money refer to the lawful currency of the United States; and (h) references to “federal” or “Federal” means U.S. federal or U.S. Federal, respectively.  The Section titles and headings in this Agreement are inserted for convenience of reference only and are not intended to be a part of, or to affect the meaning or interpretation of, this Agreement.

 

Section 2.                                           Demand Registration.

 

(a)                                 Requests for Registration.  Subject to the limits set forth below, at any time after the one hundred eightieth (180th) day after the IPO (or such shorter period of time as may be permitted by the managing underwriters of such IPO), PESC Company shall have the right, by delivering a written notice to the Corporation (a “Demand Notice”) to require the Corporation to register, pursuant to the terms herein and in accordance with the provisions of the Securities Act, the number of Registrable Securities requested to be so registered pursuant to the terms herein (a “Demand Registration”).  Within ten (10) days after receipt by the Corporation of a Demand Notice, the Corporation shall give written notice (the “Notice”) of such Demand Notice to all other Holders and shall, subject to the provisions of Section 2(b) hereof, include in such registration all Registrable Securities with respect to which the Corporation received written requests for inclusion therein within twenty (20) days after such Notice is given by the Corporation to such Holders.  A Demand Notice shall only be binding on the Corporation if the sale of all Registrable Securities requested to be registered (pursuant to such Demand Notice and in response to the Notice) is reasonably expected to result in aggregate gross proceeds in excess of Fifty Million Dollars ($50,000,000).

 

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Following receipt of a Demand Notice for a Demand Registration, the Corporation shall use its reasonable best efforts to file a Registration Statement covering all Registrable Securities requested to be included in such registration by the Holders (subject to the limitations set forth in this Agreement) as promptly as practicable, but not later than sixty (60) days after such Demand Notice, and shall use its reasonable best efforts to cause such Registration Statement to be declared effective under the Securities Act as promptly as practicable after the filing thereof.

 

Notwithstanding the foregoing, PESC Company shall be entitled to six (6) Demand Registrations; provided, however, that there shall be no limit to the number of Demand Registrations by PESC Company that constitute “shelf” registrations as contemplated by the next succeeding sentence.  If the Corporation is eligible to use Form S-3 (or comparable form) for the registration under the Securities Act of any of its securities, PESC Company shall be entitled to request that any Demand Registration (which shall include, for purposes of “shelf” registrations, demands for underwritten offerings pursuant to the applicable shelf registration statement, and, notwithstanding the threshold set forth in the first paragraph of this Section 2(a), the amount of gross proceeds reasonably expected to result from such Demand Registration shall be in excess of One Million Dollars ($1,000,000)) for which it is delivering a Demand Notice be a “shelf” registration pursuant to Rule 415 under the Securities Act.  Notwithstanding any other provisions of this Section 2, in no event shall more than one Demand Registration occur within any six-month period from the effective date of any Registration Statement filed pursuant to a prior Demand Notice or within 120 days after the effective date of any other Registration Statement filed by the Corporation; provided, however, that no Demand Registration may be prohibited for such 120-day period more often than once in a 12-month period.

 

No Demand Registration shall be deemed to have occurred for purposes of this Section 2 if the Registration Statement relating thereto (i) does not become effective, (ii) is not maintained effective for the period required pursuant to this Section 2(a) or (iii) the offering of the Registrable Securities pursuant to such Registration Statement is subject to a stop order, injunction or similar order or requirement of the SEC during such period.  In the case of each of clauses (i), (ii) and (iii), PESC Company shall be entitled to an additional Demand Registration.

 

All requests made pursuant to this Section 2 will specify the amount of Registrable Securities to be registered and the intended methods of disposition thereof.

 

The Corporation shall be required to maintain the effectiveness of the Registration Statement (except in the case of a requested “shelf” registration) with respect to any Demand Registration for a period of at least 180 days after the effective date thereof or such shorter period in which all Registrable Securities included in such Registration Statement have actually been sold; provided, however, that such period shall be extended for a period of time equal to the period the Holder refrains from selling any securities included in such registration at the request of (x) an underwriter or (y) the Corporation pursuant to the provisions herein.  The Corporation shall be required to maintain the effectiveness of a shelf Registration Statement with respect to any Demand Registration at all times after the effective date thereof until all Registrable Securities included in such Registration Statement have actually been sold; provided, however, that any Holder of Registrable Securities that have been included in a shelf Registration Statement may request that such Registrable Securities be removed from such Registration Statement, in which event the Corporation shall promptly either withdraw such Registration

 

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Statement or file a post-effective amendment to such Registration Statement removing such Registrable Securities.

 

Notwithstanding anything contained herein to the contrary, the Corporation hereby agrees that (i) each Demand Registration that is a “shelf” registration pursuant to Rule 415 under the Securities Act shall contain all language (including on the Prospectus cover sheet, the principal stockholders’ table and the plan of distribution) as may be reasonably requested by PESC Company to allow for a distribution to, and resale by, the direct and indirect partners, members or stockholders of PESC Company (a “Partner Distribution”) and (ii) the Corporation shall, at the reasonable request of PESC Company if seeking to effect a Partner Distribution, file any Prospectus supplement or post-effective amendments and otherwise take any action reasonably necessary to include such language, if such language was not included in the initial Registration Statement, or revise such language if deemed reasonably necessary by PESC Company to effect such Partner Distribution.

 

(b)                                 Priority on Demand Registration.  If any of the Registrable Securities registered pursuant to a Demand Registration are to be sold in a firm commitment Public Offering, and the managing underwriter or underwriters advise the selling Holders in writing that in its or their view the total number or dollar amount of Registrable Securities proposed to be sold in such offering is such as to adversely affect the success of such offering (including securities proposed to be included by other Holders), then the number of Registrable Securities that in the opinion of such managing underwriter can be sold without adversely affecting such offering shall be allocated pro rata among the Holders (to the extent each is a selling Holder) in proportion to their respective Percentage Interests.

 

In connection with any Demand Registration to which the provisions of this subsection (b) apply, no securities other than Registrable Securities shall be covered by such Demand Registration, and such registration shall not reduce the number of available Demand Registrations under this Section 2 in the event that the Registration Statement excludes more than 20% of the aggregate number of Registrable Securities requested to be included by the Holders (whether pursuant to the Demand Notice or in response to the Notice) .

 

(c)                                  Postponement of Demand Registration.  The Corporation shall be entitled to postpone (but not more than once in any 12-month period), for a reasonable period of time not in excess of 120 days, the filing of a Registration Statement if the Corporation delivers to PESC Company a resolution of the Board that, in the good faith judgment of the Board, such registration and offering would reasonably be expected to materially adversely affect any bona fide material financing of the Corporation or any material transaction under consideration by the Corporation or would require disclosure of information that has not been disclosed to the public and is not otherwise required to be disclosed at that time, the premature disclosure of which would materially adversely affect the Corporation.  Such Board resolution shall contain a statement of the reasons for such postponement and an approximation of the anticipated delay.  PESC Company shall keep the information contained in such resolution confidential on the same terms set forth in Section 5(p).  If the Corporation shall so postpone the filing of a Registration Statement, PESC Company shall have the right to withdraw the request for registration by giving written notice to the Corporation within 20 days of the anticipated termination date of the postponement period, as provided in such resolution delivered to PESC Company, and in the

 

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event of such withdrawal, such request shall not be counted for purposes of the number of Demand Registrations to which PESC Company is entitled pursuant to the terms herein.

 

(d)                                 Use, and Suspension of Use, of Shelf Registration Statement.  If the Corporation has filed a “shelf” Registration Statement and has included Registrable Securities therein, the Board may, by written notice to the Holders of any such Registrable Securities included therein, require such Holders to provide to the Corporation written notice of their intention to offer or sell Registrable Securities pursuant to such Registration Statement at least two Business Days prior to any such offer of sale.  The Corporation shall be entitled to suspend (but not more than an aggregate of 120 days in any 12-month period), for a reasonable period of time not in excess of 120 days, the offer or sale of Registrable Securities pursuant to such Registration Statement by any Holder if (i) a “road show” is not then in progress with respect to a proposed offering of Registrable Securities by such Holder pursuant to such Registration Statement and such Holder has not executed an underwriting agreement with respect to a pending sale of Registrable Securities pursuant to such Registration Statement and (ii) the Corporation delivers to the Holders included in such Registration Statement a resolution of the Board that, in the good faith judgment of the Board, such offer or sale would reasonably be expected to materially adversely affect any bona fide material financing of the Corporation or any material transaction under consideration by the Corporation or would require disclosure of information that has not been disclosed to the public and is not otherwise required to be disclosed at that time, the premature disclosure of which would materially adversely affect the Corporation.  Such Board resolution shall contain a statement of the reasons for such postponement and an approximation of the anticipated delay.  The Holders receiving such resolution shall keep the information contained in such certificate confidential on the same terms set forth in Section 5(p).

 

Section 3.                                           Piggyback Registration.

 

(a)                                 Holder Right to Piggyback.  If, at any time after the IPO, the Corporation proposes to file a Registration Statement under the Securities Act with respect to an offering of Equity Securities by and for the account of the Corporation (other than a Registration Statement (i) on Form S-4, Form S-8 or any successor forms thereto or (ii) filed solely in connection with an exchange offer or any employee benefit or dividend reinvestment plan), then, each such time, the Corporation shall give prompt written notice of such proposed filing at least 15 days before the anticipated filing date (the “Piggyback Notice”) to each of the Holders.  The Piggyback Notice shall offer to each Holder the opportunity to include in such Registration Statement the number of Registrable Securities as each of the Holders may request (a “Piggyback Registration”).  Subject to Section 3(b) hereof, the Corporation shall include in each such Piggyback Registration all Registrable Securities with respect to which the Corporation has received written requests for inclusion therein within 10 days after Notice has been given to such applicable Holder.  Each of the Holders shall be permitted to withdraw all or part of its Registrable Securities from a Piggyback Registration at any time prior to the effective date of such Piggyback Registration.  The Corporation shall not be required to maintain the effectiveness of the Registration Statement for a Piggyback Registration beyond the earlier to occur of (i) 180 days after the effective date thereof or (ii) consummation of the distribution by each such Holder included in such Registration Statement; provided, however, that any Holder of Registrable Securities that has been included on such shelf Registration Statement may request that such Registrable Securities be removed from such Registration Statement, in which event the

 

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Corporation shall promptly either withdraw such Registration Statement or file a post-effective amendment to such Registration Statement removing such Registrable Securities.

 

(b)                                 Priority on Piggyback Registrations.  The Corporation shall use its reasonable best efforts to cause the managing underwriter or underwriters of a proposed Public Offering to permit each of the Holders, as requested to be included in the registration for such offering, to include all such Registrable Securities on the same terms and conditions as any other Equity Securities, if any, of the Corporation included therein.  Notwithstanding the foregoing, if the managing underwriter or underwriters of such Public Offering have informed the Corporation in writing that in its or their view the total number or dollar amount of Equity Securities that the Holders, the Corporation and any other Persons having rights to participate in such registration intend to include in such offering is such as to adversely affect the success of such offering, then the number of Equity Securities that in the opinion of such managing underwriter can be sold without adversely affecting such offering shall be included in the following order:

 

(i)                                     first, the Equity Securities for the account of the Corporation; and

 

(ii)                                  second, Equity Securities allocated pro rata to the Holders (to the extent such Holder is participating in such offering) in proportion to their respective Percentage Interests.

 

Notwithstanding anything contained herein to the contrary, the Corporation hereby agrees that (i) any Piggyback Registration that is a “shelf” registration pursuant to Rule 415 under the Securities Act shall contain all language (including on the Prospectus cover sheet, the principal stockholders’ table and the plan of distribution) as may be reasonably requested by such Holder to allow for a Partner Distribution and (ii) the Corporation shall, at the reasonable request of the Holder seeking to effect a Partner Distribution, file any Prospectus supplement or post-effective amendments and otherwise take any action reasonably necessary to include such language, if such language was not included in the initial Registration Statement, or revise such language if deemed reasonably necessary by such Holder to effect such Partner Distribution.

 

Notwithstanding anything herein to the contrary, in respect of any offering contemplated herein (whether under Section 2, Section 3 or otherwise) no Holder nor any of its Affiliates (other than the Corporation), officers, directors, managers, partners, members, stockholders or representatives shall be required directly or indirectly to make any representations or warranties to, or agreements with, the Corporation or the underwriters (including agreements with respect to indemnification) other than representations, warranties or agreements regarding such Holder, its ownership of and title to the Registrable Securities and its intended method of distribution, and any liability of any such Holder or its Affiliates (other than the Corporation) to any underwriter or other Person under such underwriting agreement shall be limited to liability arising from a breach of its representations and warranties and shall be limited to an amount equal to the total price at which the securities sold by such Holder were offered to the public (net of discounts and commissions paid by such Holder in connection with such offering).

 

Section 4.                                           Restrictions on Public Sale by Holders.  The Holders each agree, in connection with any Public Offering made pursuant to a Registration Statement filed pursuant to Section 2 or Section 3 (whether or not such Holder elected to include Registrable Securities in

 

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such Registration Statement), if requested (pursuant to a written notice) by the managing underwriter or underwriters in a Public Offering, not to effect any public sale or distribution of any Equity Securities (except as part of such Public Offering), including a sale pursuant to Rule 144, or to give any Demand Notice during the period commencing on the date of the request (which shall be no earlier than 14 days prior to the expected “pricing” of such offering) and continuing for not more than 60 days (with respect to any Public Offering made after the IPO) after the date of the Prospectus (or Prospectus supplement if the offering is made pursuant to a “shelf” registration) pursuant to which such Public Offering shall be made or such shorter period as is required by the managing underwriter; provided, however, that the Corporation and all officers and directors of the Corporation must be subject to the same restrictions.

 

Section 5.                                           Registration Procedures.  If and whenever the Corporation is required to effect the registration of any Registrable Securities under the Securities Act as provided in Section 2 or Section 3, the Corporation shall effect such registration to permit the sale of such Registrable Securities in accordance with the intended method or methods of disposition thereof, and pursuant thereto the Corporation shall cooperate in the sale of the securities and shall, as expeditiously as possible:

 

(a)                                 Prepare and file with the SEC a Registration Statement or Registration Statements on any form which shall be available for the sale of the Registrable Securities by the Holders thereof or the Corporation in accordance with the intended method or methods of distribution thereof (including a Partner Distribution), and use its reasonable best efforts to cause such Registration Statement to become effective and to remain effective as provided herein; provided, however, that no later than 10 days before filing a Registration Statement or Prospectus or any amendments or supplements thereto (including documents that would be incorporated or deemed to be incorporated therein by reference), the Corporation shall furnish or otherwise make available to the Holders covered by such Registration Statement, their counsel, if any, and the managing underwriters, if any, copies of all such documents proposed to be filed, which documents shall be subject to the review and comments of such Holders, counsel and managing underwriters.

 

(b)                                 Prepare and file with the SEC such amendments and post-effective amendments to each Registration Statement as may be necessary to keep such Registration Statement continuously effective during the period provided herein and comply in all material respects with the provisions of the Securities Act with respect to the disposition of all securities covered by such Registration Statement; and cause the related Prospectus to be supplemented by any Prospectus supplement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of the securities covered by such Registration Statement, and as so supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) under the Securities Act; provided, however, that any Holder that has been included on a “shelf” Registration Statement may request that such Holder’s Registrable Securities be removed from such Registration Statement, in which event the Corporation shall promptly either withdraw such Registration Statement or file a post-effective amendment to such Registration Statement removing such Registrable Securities.

 

(c)                                  Notify each selling Holder, its counsel, if any, and the managing underwriters, if any, promptly, and (if requested by any such Person) confirm such notice in writing, (i) when a

 

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Prospectus or any Prospectus supplement or post-effective amendment has been filed, and, with respect to a Registration Statement or any post-effective amendment, when the same has become effective, (ii) of any notice from the SEC that there will be a review of a Registration Statement and promptly provide such Holders, their counsel, if any, and the managing underwriters, if any, with a copy of any SEC comments received by the Corporation in connection therewith, (iii) of any request by the SEC or any other Federal or state governmental authority for amendments or supplements to a Registration Statement or related Prospectus or for additional information, (iv) of the issuance by the SEC of any stop order suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose, (v) if at any time the representations and warranties of the Corporation contained in any agreement (including any underwriting agreement) contemplated by Section 5(o) cease to be true and correct, (vi) of the receipt by the Corporation of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any proceeding for such purpose, and (vii) of the happening of any event that makes any statement made in such Registration Statement or related Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in such Registration Statement, Prospectus or documents so that, in the case of the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and that in the case of the Prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

(d)                                 Use its reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement, or the lifting of any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction.

 

(e)                                  If requested by the managing underwriters, if any, or any Holder being sold in connection with a Public Offering, promptly include in a Prospectus supplement or post-effective amendment such information as the managing underwriters, if any, and such Holders may reasonably request in order to permit the intended method of distribution of such securities and make all required filings of such Prospectus supplement or such post-effective amendment as soon as practicable after the Corporation has received such request.

 

(f)                                   Furnish or make available to each selling Holder, its counsel, if any, and each managing underwriter, if any, without charge, at least five conformed copies of the Registration Statement, the Prospectus and Prospectus supplements, if applicable, and each post-effective amendment thereto, including financial statements (but excluding schedules, all documents incorporated or deemed to be incorporated therein by reference and all exhibits, unless requested by such Holder, counsel or underwriter) as such Persons may reasonably request.

 

(g)                                  Deliver to each selling Holder, its counsel, if any, and the underwriters, if any, without charge, as many copies of the Prospectus or Prospectuses (including each form of Prospectus) and each amendment or supplement thereto as such Persons may reasonably request in connection with the distribution of the Registrable Securities; and the Corporation, subject to the last paragraph of this Section 5, hereby consents to the use of such Prospectus and each

 

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amendment or supplement thereto by each of the selling Holders and the underwriters, if any, in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any such amendment or supplement thereto.

 

(h)                                 Prior to any Public Offering of Registrable Securities, use its reasonable best efforts to register or qualify or cooperate with the selling Holders, the managing underwriter or underwriters and their respective counsel in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the securities or “Blue Sky” laws of such jurisdictions within the United States as any seller or the managing underwriter or underwriters reasonably requests and to keep each such registration or qualification (or exemption therefrom) effective during the period such Registration Statement is required to be kept effective and to take any other action that may be necessary or advisable to enable such Holders to consummate the disposition of such Registrable Securities in such jurisdiction; provided, however, that the Corporation will not be required to (i) qualify generally to do business in any jurisdiction where it is not then so qualified, (ii) subject itself to taxation in any such jurisdiction where it is not then so subject, or (iii) take any action that would subject it to general service of process in any such jurisdiction where it is not then so subject.

 

(i)                                     Cooperate with the selling Holders and the managing underwriter or underwriters to facilitate the timely preparation and delivery of certificates (not bearing any legends) representing Registrable Securities to be sold after receiving written representations from each Holder that the Registrable Securities represented by the certificates so delivered by such Holder will be transferred in accordance with the Registration Statement, and enable such Registrable Securities to be in such denominations and registered in such names as the managing underwriters, if any, or Holders may request at least two (2) Business Days prior to any sale of Registrable Securities in a firm commitment Public Offering, but in any other such sale, within 10 Business Days prior to having to issue the securities or otherwise cooperate with the selling Holders and the managing underwriters, if any, to facilitate the timely electronic book-entry evidencing the transfer of the Registrable Securities to be sold.

 

(j)                                    Use its reasonable best efforts to cause the Registrable Securities covered by the Registration Statement to be registered with or approved by such other governmental agencies or authorities within the United States as are reasonably requested by the selling Holders and the managing underwriters, if any, except as may be required solely as a consequence of the nature of such selling Holder’s business, in which case the Corporation will cooperate in all reasonable respects with the filing of such Registration Statement and the granting of such approvals, as may be necessary to enable the seller or sellers thereof or the underwriters, if any, to consummate the disposition of such Registrable Securities.

 

(k)                                 Upon the occurrence of any event contemplated by Section 5(c)(vii) above, prepare a supplement or post-effective amendment to the Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, or file any other required document so that, as thereafter delivered to the purchasers of the Registrable Securities being sold thereunder, such Prospectus will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or

 

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necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

(l)                                     Prior to the effective date of the Registration Statement relating to the Registrable Securities, provide a CUSIP number for the Registrable Securities.

 

(m)                             Provide and cause to be maintained a transfer agent and registrar for all Registrable Securities covered by such Registration Statement from and after a date not later than the effective date of such Registration Statement.

 

(n)                                 Use its reasonable best efforts to cause all shares of Registrable Securities covered by such Registration Statement to be authorized to be listed on a national securities exchange if shares of the particular class of Registrable Securities are at that time listed on such exchange, as the case may be.

 

(o)                                 Enter into such agreements (including an underwriting agreement in form, scope and substance as is customary in Public Offerings) and take all such other actions reasonably requested by the Holders of a majority of the Registrable Securities being sold in connection therewith (including those reasonably requested by the managing underwriters, if any) to expedite or facilitate the disposition of such Registrable Securities, and in connection therewith, whether or not an underwriting agreement is entered into and whether or not the registration is a Public Offering, (i) make such representations and warranties to the Holders and the underwriters, if any, in form, substance and scope as are customarily made by issuers to underwriters in Public Offerings, and, if true, confirm the same if and when requested, (ii) furnish to the selling Holders opinions and a negative assurance letter of counsel to the Corporation and updates thereof (which counsel, opinions and letter (in form, scope and substance, in the case of such opinions and such letter) shall be reasonably satisfactory to the selling Holders, the managing underwriters, if any, and counsels to the selling Holders, if any), addressed to each selling Holder and each of the underwriters, if any, covering the matters customarily covered in opinions and negative assurance letters requested in Public Offerings and such other matters as may be reasonably requested by such Holders, their counsel, if any, and underwriters, (iii) obtain “cold comfort” letters and updates thereof from the independent certified public accountants of the Corporation (and, if necessary, any other independent certified public accountants of any Subsidiary of the Corporation or of any business acquired by the Corporation for which financial statements and financial data are, or are required to be, included in the Registration Statement) who have certified the financial statements included in such Registration Statement, addressed to each selling Holder (unless such accountants shall be prohibited from so addressing such letters by applicable standards of the accounting profession) and each of the underwriters, if any, such letters to be in customary form and covering matters of the type customarily covered in “cold comfort” letters in connection with Public Offerings, which form and substance shall be acceptable to the selling Holders, (iv) if an underwriting agreement is entered into, the same shall contain indemnification provisions and procedures substantially to the effect set forth in Section 7 hereof with respect to all parties to be indemnified pursuant to said Section and (v) deliver such documents and certificates as may be reasonably requested by any selling Holder, such Holder’s counsel, if any, and the managing underwriters, if any, to evidence the continued validity of the representations and warranties made pursuant to Section 5(o)(i) above and to evidence compliance with the conditions

 

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contained in the underwriting agreement or other agreement entered into by the Corporation.  The above shall be done at each closing under such underwriting or similar agreement, or as and to the extent required thereunder.

 

(p)                                 Make available for inspection by the selling Holders, any underwriter participating in any such disposition of Registrable Securities, if any, and any attorneys or accountants retained by such selling Holders or underwriter, in an electronic dataroom or at the offices where normally kept, during reasonable business hours, all financial and other records, pertinent corporate documents and properties of the Corporation and its subsidiaries, and cause the officers, directors and employees of the Corporation and its subsidiaries to supply all information in each case reasonably requested by any such Holder, underwriter, attorney or accountant in connection with such Registration Statement; provided, however, that any information that is not publicly available at the time of delivery of such information shall be kept confidential by such Persons (other than disclosure by such Persons to such Persons’ respective Affiliates) unless (i) disclosure of such information is required by court or administrative order or other legal process, (ii) disclosure of such information is required by law, or (iii) such information becomes generally available to the public other than as a result of a disclosure or failure to safeguard by such Person.  In the case of a proposed disclosure pursuant to (i) or (ii) above, such Person shall be required to give the Corporation written notice of the proposed disclosure prior to such disclosure and, if requested by the Corporation, assist the Corporation in seeking to prevent or limit the proposed disclosure.

 

(q)                                 Comply with all applicable rules and regulations of the SEC and make available to its security Holders earning statements satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder, or any similar rule promulgated under the Securities Act, no later than 60 days after the end of any 12-month period (or 90 days after the end of any 12-month period if such period is a fiscal year) (i) commencing at the end of any fiscal quarter in which Registrable Securities are sold to underwriters in a firm commitment or best efforts Public Offering and (ii) if not sold to underwriters in such an offering, commencing on the first day of the first fiscal quarter of the Corporation after the effective date of a Registration Statement, which statements shall cover one of said 12-month periods.

 

(r)                                    Cause its officers to support the marketing of the Registrable Securities covered by the Registration Statement (including participation in “road shows”).

 

Notwithstanding anything contained herein to the contrary, the Corporation hereby agrees that any Demand Registration that is a “shelf” registration pursuant to Rule 415 under the Securities Act shall contain all language (including on the Prospectus cover sheet, the principal stockholders’ table and the plan of distribution) as may be reasonably requested by a selling Holder.  The Corporation may require each selling Holder of Registrable Securities as to which any registration is being effected to furnish to the Corporation in writing such information required in connection with such registration regarding such seller and the distribution of such Registrable Securities as the Corporation may, from time to time, reasonably request in writing.

 

Each Holder agrees if such Holder has Registrable Securities covered by such Registration Statement that, upon receipt of any notice from the Corporation of the happening of any event of the kind described in Sections 5(c)(iii), 5(c)(iv), 5(c)(v), 5(c)(vi) or 5(c)(vii), such

 

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Holder will forthwith discontinue disposition of such Registrable Securities covered by such Registration Statement or Prospectus until such Holder is advised in writing by the Corporation that the disposition may be resumed and, if applicable, has received copies of the supplemented or amended Prospectus contemplated by Section 5(k) hereof, together with any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus; provided, however, that the Corporation shall extend the time periods under Section 2 with respect to the length of time that the effectiveness of a Registration Statement must be maintained by the amount of time the Holder is required to discontinue disposition of such securities.

 

Section 6.                                           Registration Expenses.  All fees and expenses incident to the performance of or compliance with the provisions herein by the Corporation (including (i) all registration and filing fees (including fees and expenses (A) with respect to filings required to be made with the Financial Industry Regulatory Authority, Inc. and the SEC, (B) of compliance with securities or Blue Sky laws, including any fees and disbursements of counsel for the underwriters in connection with Blue Sky qualifications of the Registrable Securities pursuant to Section 5(h) and (C) of listing and registration with a national securities exchange), (ii) printing expenses (including expenses of printing certificates for Registrable Securities in a form eligible for deposit with The Depository Trust Company and of printing Prospectuses if the printing of Prospectuses is requested by the managing underwriters, if any, or by the Holders of a majority of the Registrable Securities included in any Registration Statement), (iii) messenger, telephone and delivery expenses of the Corporation, (iv) fees and disbursements of counsel for the Corporation, (v) expenses of the Corporation incurred in connection with any “road show,” (vi) fees and disbursements of all independent certified public accountants referred to in Section 5(o)(iii) hereof (including the expenses of any “cold comfort” letters required herein) and any other persons, including special experts retained by the Corporation, (vii) rating agency fees and (viii) fees and disbursements of one counsel for the Holders whose shares are included in a Registration Statement (which counsel shall be selected by PESC Company, if participating, or the Holders of a majority of the Registrable Securities included in such Registration Statement)) shall be borne by the Corporation whether or not any Registration Statement is filed or becomes effective.  In addition, the Corporation shall pay its internal expenses (including all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit, the fees and expenses incurred in connection with the listing of the securities to be registered on any securities exchange on which similar securities issued by the Corporation are then listed and rating agency fees and the fees and expenses of any Person, including special experts, retained by the Corporation.

 

Section 7.                                           Indemnification.

 

(a)                                 Indemnification by the Corporation.  The Corporation shall, as to time, indemnify and hold harmless, to the fullest extent permitted by law, each Holder, its Affiliates, officers, directors, partners, members, managers, stockholders, accountants, attorneys, agents and employees of each of them, each Person who controls each such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, partners, members, managers, stockholders, accountants, attorneys, agents and employees of each such controlling person (collectively, the “Stockholder Indemnified Persons”), from and against any and all losses, claims, damages, liabilities, costs (including costs of preparation and

 

15

 

reasonable attorneys’ fees and any legal or other fees or expenses incurred by such party in connection with any investigation or Proceeding), expenses, judgments, fines, penalties, charges and amounts paid in settlement (collectively, “Losses”), as incurred, arising out of or based upon (i) any untrue statement (or alleged untrue statement) of a material fact contained in any Prospectus, offering circular or other document (including any related Registration Statement, “issuer free writing prospectus” (as defined in Rule 433 under the Securities Act), “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, notification or the like) incident to any such registration, qualification, or compliance, (ii) any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading or, with respect to any Prospectus, necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, or (iii) any violation by the Corporation of the Securities Act or state securities or Blue Sky laws or, in each case, any rule or regulation thereunder applicable to the Corporation and relating to action or inaction required of the Corporation in connection with any such registration, qualification, or compliance, and will reimburse each such Stockholder Indemnified Person for any legal and any other expenses reasonably incurred in connection with investigating and defending or settling any such claim, loss, damage, liability, or action; provided, however, that the Corporation will not be liable in any such case to the extent that any such claim, loss, damage, liability, or expense arises out of or is based on any untrue statement or omission by such Holder or underwriter, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such Registration Statement, Prospectus, offering circular, or other document in reliance upon and in conformity with written information furnished to the Corporation by such Holder or underwriter specifically for use in connection with the preparation of such Registration Statement, Prospectus, offering circular or other document.  The Corporation also agrees to indemnify any underwriter of Registrable Securities and each Person who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) such underwriter, on substantially the same basis as that provided to the Stockholder Indemnified Persons in this Section 7(a).

 

(b)                                 Indemnification by Holder.  In connection with any Registration Statement in which a Holder is participating, such Holder shall furnish to the Corporation in writing such information as the Corporation reasonably requests for use in connection with any Registration Statement or Prospectus and agrees to indemnify, to the fullest extent permitted by law, severally and not jointly, the Corporation, its directors, officers, managers, accountants, attorneys, agents and employees, each Person who controls the Corporation (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, partners, members, managers, stockholders, accountants, attorneys, agents or employees of such controlling persons (collectively, the “Corporation Indemnified Persons”), from and against all Losses arising out of or based upon (i) any untrue statement of a material fact contained, on the effective date thereof, in any such Registration Statement, Prospectus, offering circular or other document, or (ii) any omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading or, with respect to any Prospectus, necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and will reimburse each such Corporation Indemnified Person for any legal and any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability or action, in each case to the extent, but only to the extent, that such untrue statement or omission is made in such Registration Statement, Prospectus,

 

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offering circular or other document in reliance upon and in conformity with written information furnished to the Corporation by such Holder specifically for use in connection with the preparation of such Registration Statement, Prospectus, offering circular or other document; provided, however, that the obligations of such Holder hereunder shall not apply to amounts paid in settlement of any such claims, losses, damages, or liabilities (or actions in respect thereof) if such settlement is effected without the consent of such Holder (which consent shall not be unreasonably withheld); and provided, further, that the liability of each selling Holder hereunder shall be individual, and not joint and several, and shall be limited to the net proceeds received by such selling Holder from the sale of Registrable Securities covered by such Registration Statement.  Each such Holder also agrees to indemnify any underwriter of Registrable Securities and each Person who controls (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) such underwriter, on substantially the same basis as that provided to the Corporation Indemnified Persons in this Section 7(b).

 

(c)                                  Conduct of Indemnification Proceedings.  If any Person shall be entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall give prompt notice to the party from which such indemnity is sought (the “Indemnifying Party”) of any claim or of the commencement of any Proceeding with respect to which such Indemnified Party seeks indemnification or contribution pursuant hereto; provided, however, that the delay or failure to so notify the Indemnifying Party shall not relieve the Indemnifying Party from any obligation or liability except to the extent that the Indemnifying Party has been prejudiced by such delay or failure.  The Indemnifying Party shall have the right, exercisable by giving written notice to an Indemnified Party promptly after the receipt of written notice from such Indemnified Party of such claim or Proceeding, to, unless in the Indemnified Party’s reasonable judgment a conflict of interest between such Indemnified and Indemnifying Parties may exist in respect of such claim, assume, at the Indemnifying Party’s expense, the defense of any such claim or Proceeding, with counsel reasonably satisfactory to such Indemnified Party; provided, however, that an Indemnified Party shall have the right to employ separate counsel in any such claim or Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party unless: (i) the Indemnifying Party agrees to pay such fees and expenses, (ii) the Indemnifying Party fails promptly to assume, or in the event of a conflict of interest cannot assume, the defense of such claim or Proceeding or fails to employ counsel reasonably satisfactory to such Indemnified Party (in which case the Indemnified Party shall have the right to employ counsel and to assume the defense of such claim or Proceeding), (iii) the Indemnified Party shall have reasonably concluded that there may be one or more legal or equitable defenses available to such Indemnified Party which are additional to or conflict with those available to the Indemnifying Party or (iv) the named parties to any such claim or Proceeding (including any impleaded parties) include both the Indemnified Party and the Indemnifying Party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them; provided, further, that the Indemnifying Party shall not, in connection with any one such claim or Proceeding or separate but substantially similar or related claims or Proceedings in the same jurisdiction, arising out of the same general allegations or circumstances, be liable for the fees and expenses of more than one firm of attorneys (together with appropriate local counsel) at any time for all of the Indemnified Parties, or for fees and expenses that are not reasonable.  Whether or not such defense is assumed by the Indemnifying Party, such Indemnified Party will not be subject to any liability for any settlement made without its consent (but such consent will not be unreasonably

 

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withheld).  The Indemnifying Party shall not consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release, in form and substance reasonably satisfactory to the Indemnified Party, from all liability in respect of such claim or litigation for which such Indemnified Party would be entitled to indemnification hereunder.

 

(d)                                 Contribution.  If the indemnification provided for in this Section 7 is unavailable to an Indemnified Party in respect of any Losses (other than in accordance with its terms), then each applicable Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party, on the one hand, and such Indemnified Party, on the other hand, in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations.  The relative fault of such Indemnifying Party, on the one hand, and Indemnified Party, on the other hand, shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been taken by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent any such action, statement or omission.

 

(e)                                  The Parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 7 were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 7(d).  Notwithstanding the provisions of this Section 7, an Indemnifying Party that is a selling Holder shall not be required to contribute any amount in excess of the amount by which the net proceeds from the sale of the Registrable Securities sold by such Indemnifying Party exceeds the amount of any damages that such Indemnifying Party has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.  The obligation of each selling Holder to contribute pursuant to this Section 7 is several, and not joint, in proportion to the net proceeds of the offering received by such selling Holder in relation to the total net proceeds of the offering received by all of the selling Holders.

 

(f)                                   Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in any underwriting agreement entered into in connection with any Public Offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control.

 

Section 8.                                           Rule 144.  After the IPO, the Corporation shall file the reports required to be filed by it under the Securities Act and the Exchange Act in a timely manner, and will take such further action as any Holder may reasonably request, all to the extent required from time to time to enable such Holder to sell Registrable Securities without registration under the Securities Act within the limitations of the exemption provided by Rule 144.  Upon the request of any Holder, the Corporation shall deliver to such Holder a written statement as to whether it has complied with such requirements.

 

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Section 9.                                           Underwritten Registrations.  If any Demand Registration is a Public Offering, the Holder including the largest amount of Registrable Securities in such Demand Registration shall have the right to select the investment banker or investment bankers and managers to administer the offering, subject to approval by the Board, not to be unreasonably withheld.  The Corporation shall have the right to select the investment banker or investment bankers and managers to administer any Piggyback Registration.

 

Section 10.                                    Limitation on Subsequent Registration.  From and after the effective date of the PES LLC Agreement, the Corporation shall not, without the prior written consent of the Holders, enter into any agreement with any Holder or prospective holder of any Equity Securities of the Corporation, giving such Holder or prospective holder any registration rights the terms of which are equivalent to or more favorable than the registration rights granted to Holders hereunder, or which would reduce the amount of Registrable Securities the Holders can include in any registration filed pursuant to Section 2 hereof, unless such rights are subordinate to those of the Holders.

 

Section 11.                                    Miscellaneous.

 

(a)                                 Amendments and Waivers.  Except as otherwise expressly provided herein, this Agreement may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given without the written consent of the Holders.

 

(b)                                 Entire Agreement.  This Agreement is intended by the Parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the Parties hereto in respect of the subject matter contained herein.  There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein with respect to the rights granted by the Corporation set forth herein.  This Agreement supersedes all prior agreements and understandings between the Parties with respect to such subject matter.

 

(c)                                  Notices.  All notices required to be given hereunder shall be in writing and shall be deemed to be duly given if personally delivered, telecopied and confirmed, or mailed by certified mail, return receipt requested, or overnight delivery service with proof of receipt maintained, at the following address (or any other address that any such Party may designate by written notice to the other Parties):

 

(i)                                     if to the Corporation, to the address of its principal executive offices; and

 

(ii)                                  if to any Holder, at such Holder’s address as set forth in Schedule 2 hereto.

 

Any such notice shall, if delivered personally, be deemed received upon delivery; shall, if delivered by telecopy, be deemed received on the first Business Day following confirmation; shall, if delivered by overnight delivery service, be deemed received the first Business Day after being sent; and shall, if delivered by certified mail, be deemed received upon the earlier of actual receipt thereof or five Business Days after the date of deposit in the United States mail.

 

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(d)                                 Termination.  The provisions herein shall terminate on the date when no Registrable Securities remain outstanding; provided, however; that Sections 6 and 7 shall survive any termination hereof.

 

(e)                                  Governing Law.  This agreement is governed by and shall be construed in accordance with the laws of the State of Delaware, without regard to the conflict of law principles of such state.

 

(f)                                   Severability.  If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during the term of this Agreement, such provision shall be fully severable; this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Agreement; and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement.  Furthermore, in lieu of each such illegal, invalid or unenforceable provision, there shall be added automatically as a part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable.

 

(g)                                  Counterparts.  This Agreement may be executed in any number of counterparts (including PDF or facsimile counterparts), each of which, when so executed and delivered, shall be deemed an original, and all of which together shall constitute a single instrument.  Delivery of a copy of this Agreement bearing an original signature by facsimile transmission or by electronic mail shall have the same effect as physical delivery of the paper document bearing the original signature.

 

(h)                                 Specific Performance.  The Parties agree that irreparable damage for which monetary damages, even if available, would not be an adequate remedy, would occur in the event that the Parties hereto do not perform the provisions of this Agreement in accordance with its specified terms or otherwise breach such provisions.  Accordingly, the Parties acknowledge and agree that the Parties shall be entitled, in addition to any other remedy to which they are entitled under the terms of this Agreement at law or in equity, to an injunction, specific performance and other equitable relief to prevent or restrain breaches, or threatened or imminent breaches, of this Agreement and to enforce specifically the terms and provisions hereof.  Each Party agrees that it will not oppose the granting of an injunction, specific performance and other equitable relief when expressly available pursuant to this Section 11(h) on the basis that (i) there is adequate remedy at law or (ii) an award of specific performance is not an appropriate remedy for any reason at law or equity.  Any Party seeking an injunction or injunctions to prevent breaches of this Agreement when available pursuant to the terms of this Agreement and to enforce specifically the terms and provisions of this Agreement when available pursuant to this Agreement shall not be required to provide any bond or other security in connection with any such order or injunction.

 

*                                         *                                         *                                         *                                         *

 

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first above written.

 

	
 
    	
PHILADELPHIA   ENERGY SOLUTIONS INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   [·]
    
	
 
    	
 
    	
Title:   [·]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PESC   COMPANY, LP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
PESC   COMPANY GP, LLC,   its general 
    
	
 
    	
 
    	
partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   [·]
    
	
 
    	
 
    	
Title:   [·]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CARLYLE   CEMOF AIV INVESTORS 
    
	
 
    	
HOLDINGS,   L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
[·], its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   [·]
    
	
 
    	
 
    	
Title:   [·]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CARLYLE   CEOF AIV INVESTORS 
    
	
 
    	
HOLDINGS,   L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
[·], its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   [·]
    
	
 
    	
 
    	
Title:   [·]
    

 

[Signature Page to Registration Rights Agreement]

 

 

Schedule 1

 

Carlyle Fund Stockholders

 

Carlyle CEMOF AIV Investors Holdings, L.P.

 

Carlyle CEOF AIV Investors Holdings, L.P.

 

 

Schedule 2

 

Holders’ Addresses for Notice

 

	
Holder
    	
 
    	
Mailing Address
    	
 
    	
Facsimile
    
	
PESC Company, LP
    	
 
    	
c/o PESC Company GP, LLC

1735 Market Street, 10th Floor

Philadelphia, PA 19103

Attention: General Counsel
    	
 
    	
[·]
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Carlyle CEMOF AIV Investors Holdings, L.P.
    	
 
    	
c/o The Carlyle Group

1001 Pennsylvania Ave. NW

Suite 220 South

Washington, D.C. 20004-2505
    	
 
    	
[·]
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Carlyle CEOF AIV Investors Holdings, L.P.
    	
 
    	
c/o The Carlyle Group

1001 Pennsylvania Ave. NW

Suite 220 South

Washington, D.C. 20004-2505
    	
 
    	
[·]

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