Document:

EX-10.2

 Exhibit 10.2 

STOCKHOLDERS AGREEMENT 
 OF 

HighPoint Resources Corporation 

Dated as of March 19, 2018 
  

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	ARTICLE I	 
	GOVERNANCE MATTERS	 
			
	 1.1
	  	 Board Composition; Representation
	  	 	1	 
	 1.2
	  	 Vacancies
	  	 	4	 
	 1.3
	  	 Compensation; Indemnification
	  	 	4	 
	 1.4
	  	 Selection of Board Representatives; Committees
	  	 	4	 
	 1.5
	  	 Nomination of Non-Investor Directors
	  	 	4	 
	
	ARTICLE II	 
	RESTRICTED ACTIVITIES; PREEMPTIVE RIGHTS; VOTING	 
			
	 2.1
	  	 Transfer Restrictions
	  	 	5	 
	 2.2
	  	 Restricted Activities
	  	 	6	 
	 2.3
	  	 Preemptive Rights
	  	 	8	 
	 2.4
	  	 ATM Offer and Election to Purchase
	  	 	10	 
	 2.5
	  	 Voting
	  	 	10	 
	 2.6
	  	 Amendment to Parent Certificate of Incorporation
	  	 	11	 
	 2.7
	  	 Removal and Replacement of the Chief Executive Officer
	  	 	11	 
	 2.8
	  	 Indebtedness
	  	 	11	 
	 2.9
	  	 Controlled Company
	  	 	12	 
	
	ARTICLE III	 
	REGISTRATION RIGHTS	 
			
	 3.1
	  	 Registration
	  	 	12	 
	 3.2
	  	 Expenses of Registration
	  	 	15	 
	 3.3
	  	 Obligations of the Company
	  	 	15	 
	 3.4
	  	 Suspension of Sales
	  	 	18	 
	 3.5
	  	 Termination of Registration Rights
	  	 	18	 
	 3.6
	  	 Furnishing Information
	  	 	19	 
	 3.7
	  	 Indemnification
	  	 	19	 
	 3.8
	  	 Assignment of Registration Rights
	  	 	21	 
	 3.9
	  	 Holdback; Lockup
	  	 	21	 
	 3.10
	  	 Rule 144
	  	 	22	 
	 3.11
	  	 Definitions
	  	 	23	 
	 3.12
	  	 Voluntary Forfeiture
	  	 	24	 
	
	ARTICLE IV	 
	DEFINITIONS	 
			
	 4.1
	  	 Defined Terms
	  	 	24	 
	 4.2
	  	 Terms Generally
	  	 	29	 

  
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	ARTICLE V	 
	MISCELLANEOUS	 
			
	 5.1
	  	 Term
	  	 	29	 
	 5.2
	  	 Representations and Warranties
	  	 	29	 
	 5.3
	  	 Legends; Securities Act Compliance
	  	 	30	 
	 5.4
	  	 No Inconsistent Agreements
	  	 	30	 
	 5.5
	  	 Amendments and Waivers
	  	 	31	 
	 5.6
	  	 Successors and Assigns
	  	 	31	 
	 5.7
	  	 Severability
	  	 	31	 
	 5.8
	  	 Counterparts
	  	 	31	 
	 5.9
	  	 Entire Agreement
	  	 	31	 
	 5.10
	  	 Governing Law; Jurisdiction
	  	 	31	 
	 5.11
	  	 Waiver of Jury Trial
	  	 	32	 
	 5.12
	  	 Specific Performance
	  	 	32	 
	 5.13
	  	 No Third-Party Beneficiaries
	  	 	32	 
	 5.14
	  	 Notices
	  	 	32	 

 Exhibits 
  

			
	Exhibit A	  	Initial Board Representatives
	Exhibit B	  	Company Competitors

  
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 STOCKHOLDERS AGREEMENT 

This Stockholders Agreement, dated as of March 19, 2018 (as it may be amended from time to time, this “Agreement”), is
made by and among HighPoint Resources Corporation, a Delaware corporation (the “Company”), Fifth Creek Energy Company, LLC, a Delaware limited liability company (the “Investor”) and solely for the purposes of
Section 2.2, NGP Natural Resources XI, L.P. (the “Fund”). 
 R E C I T A L S 

WHEREAS, the Company, Fifth Creek Energy Operating Company, LLC, a Delaware limited liability company, Bill Barrett Corporation, a Delaware
corporation, Rio Merger Sub, LLC, a Delaware limited liability company and a direct wholly owned Subsidiary of the Company and Rider Merger Sub, Inc., a Delaware corporation and a direct wholly owned Subsidiary of the Company have entered into that
certain Agreement and Plan of Merger dated as of the date hereof (as it may be amended from time to time, the “Merger Agreement”), pursuant to which, upon the terms and subject to the conditions set forth in the Merger Agreement, on
the Closing Date, Parent and Rio Grande will become wholly owned subsidiaries of the Company in connection with the consummation of the mergers (the “Mergers”) contemplated by the Merger Agreement; 

WHEREAS, on the Closing Date, the Investor will receive shares of common stock, par value $0.001 per share, of the Company (“Company
Common Stock”) in accordance with the terms of the Merger Agreement (the shares of Company Common Stock received by the Investor on the Closing Date, the “Shares”) representing, in the aggregate, approximately 48% of the
outstanding shares of Company Common Stock, after giving effect to the issuance of such Shares; and 
 WHEREAS, each of the parties hereto
wishes to set forth in this Agreement certain terms and conditions regarding the Investor’s ownership of the Shares and certain rights and obligations related thereto. 

NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements contained in this Agreement, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties agree as follows: 

ARTICLE I 
 GOVERNANCE MATTERS 

1.1 Board Composition; Representation. 

(a) At the Effective Time, the Company will cause the Board Representatives and Non-Investor Directors
listed in Exhibit A hereto to be appointed to the Board of Directors of the Company (the “Board”). Following the Effective Time until the Board Designation Expiration Date, the Company shall take any and all necessary action
to cause the Board to be comprised of no more than a total of eleven authorized directorships, and, without Company Non-Affiliate Approval, not less than eleven authorized directorships, and in no event shall
the 

 
total number of authorized directorships be less than the number that is one more than two times the Investor Director Number at such time; provided, however, that the Company, at
the direction of the Investor, shall be required to increase the size of the Board if required in order to permit the number of Board Representatives entitled to be designated by the Investor pursuant to this Section 1.1 to
be included on the Board. 
 (b) From and after the date of the Closing until the Board Designation Expiration Date, the manner for selecting
nominees for election to the Board will be as follows: 
 (i) In connection with each annual or special meeting of
stockholders of the Company at which directors are to be elected (each such annual or special meeting, an “Election Meeting”), the Investor shall have the right to designate for nomination a number of Board Representatives as
follows: (A) for so long as the Investor Percentage Interest is greater than or equal to 40% (provided that for the period ending on the six-month anniversary of the Closing Date such percentage shall be
35%) of all of the outstanding shares of Company Common Stock, five (5) Board Representatives; provided, that at least two (2) of such Board Representatives must be Independent Directors; (B) for so long as the Investor
Percentage Interest is less than 40% (provided that for the period ending on the six-month anniversary of the Closing Date such percentage shall be 35%) but greater than or equal to 30%, four (4) Board
Representatives; provided, that at least one (1) of such Board Representatives must be an Independent Director; (C) for so long as the Investor Percentage Interest is less than 30% but greater than or equal to 20%, two
(2) Board Representatives; (D) for so long as the Investor Percentage Interest is less than 20% but greater than or equal to 10%, one (1) Board Representative; and (E) if the Investor Percentage Interest is less than 10%, no
Board Representatives. 
 (ii) The Investor shall give written notice to the Governance Committee (as defined below) of each
such Board Representative no later than the date that is sixty (60) days before the first anniversary of the date that the Company’s annual proxy for the prior year was first mailed to the Company’s stockholders and the Investor shall
provide, or cause such individual(s) to provide, to the Company, such information about such individuals and the nomination to the Company, at such times as the Company may reasonably request in order to ensure compliance with the Exchange Rules and
the applicable securities Laws, and to enable the Board of any committee thereof to make determinations with respect to the qualifications of the individual(s) to be Board Representative(s) (the “Required Information”);
provided, however, that if the Investor fails to give such notice or the Required Information in a timely manner, then the Investor shall be deemed to have nominated the incumbent Board Representative or Board Representatives, as
applicable, in a timely manner; provided, further, that if the number of incumbent Board Representatives is less than the number of Board Representatives the Investor is entitled to designate pursuant to
Section 1.1(b)(i), the Company and the Investor shall use their respective reasonable best efforts to mutually agree on the Board Representative or Board Representatives, as applicable, for such Election Meeting. 

  
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 (iii) In the event that the Company amends its certificate of incorporation to
provide that the Board shall be classified into separate classes of directors, then proper provision shall be made such that the designees of the Investor shall be distributed as evenly as possible among such classes of directors in order to
preserve the designation rights of the Investor in accordance with this Section 1.1. 
 (c) From and after the date
of the Closing until the Board Designation Expiration Date, the Company shall take all actions necessary (to the extent such actions are permitted by Law) to cause the Board to include the Board Representative(s) entitled to be designated by the
Investor pursuant to Section 1.1(b) and otherwise to reflect the Board composition contemplated by Section 1.1, including the following: (i) at each Election Meeting, include (x) the
Board Representative(s) entitled to be designated by the Investor pursuant to Section 1.1(b) and (y) the Nominated Non-Investor Directors in the slate of nominees recommended by
the Board to the Company’s stockholders for election as directors, (ii) to solicit proxies in order to obtain stockholder approval of the election of the Board Representative(s) and the Nominated
Non-Investor Directors, including causing officers of the Company who hold proxies (unless otherwise directed by the Company stockholder submitting such proxy) to vote such proxies in favor of the election of
such Board Representative(s) and the Nominated Non-Investor Directors, (iii) to cause the Board Representative(s) and the Nominated Non-Investor Directors to be
elected to the Board, including recommending that the Company’s stockholders vote in favor of the Board Representative(s) and the Nominated Non-Investor Directors in any proxy statement used by the
Company to solicit the vote of its stockholders in connection with each Election Meeting, (iv) if necessary, expanding the size of the Board and filling any resulting vacancies with individuals designated by the Investor pursuant to this
Section 1.1 and (v) causing any director resignation or other similar policy of the Company to not be applicable to the Board Representatives. 

(d) If at any time the number of Board Representatives serving on the Board exceeds the Investor Director Number, then unless otherwise
requested by the Board by action of the Non-Affiliated Directors, the Investor shall promptly (and in any event prior to the time the Board next takes any action, whether at a meeting or by written consent)
cause one or more such Board Representative(s) to resign from the Board such that, following such resignation(s), the number of Board Representatives serving on the Board does not exceed the Investor Director Number. If at any time any Board
Representative that was required pursuant to Section 1.2(b) to be an Independent Director ceases to be an Independent Director and as a result the number of Board Representatives that constitute Independent Directors is
less than the number of Board Representatives required to be Independent Directors pursuant to Section 1.1(b)(i), then unless otherwise requested by the Board by action of the
Non-Affiliated Directors, the Investor shall promptly (and in any event prior to the time the Board next takes any action, whether at a meeting or by written consent) cause such Board Representative to resign
from the Board, it being understood that the Investor shall be entitled to fill the vacancy resulting therefrom in accordance with Section 1.2(a). 

(e) On the date that the Investor Percentage Interest is less than ten percent (10%), or at such earlier time that the Investor delivers an
irrevocable written waiver of its rights under this Section 1.1 and Section 1.2 to the Company, the Investor will have no further rights under this Section 1.1 and
Section 1.2. 

  
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 1.2 Vacancies. 

(a) Subject to Sections 1.1 and 1.4, if at any time the number of Board Representatives serving on the Board is less than the
total number of Board Representatives the Investor is entitled to designate pursuant to Section 1.1(b), whether due to the death, resignation, retirement, disqualification or removal from office as a member of the Board of
a Board Representative or otherwise, the Board shall take all action (to the extent permitted by Law) required to fill the vacancy resulting therefrom with such replacement designated by the Investor as promptly as practicable. In furtherance
thereof, the Board shall use its reasonable best efforts, if requested by the Investor, to fill such vacancy prior to the time the Board next takes action on any other matter. 

(b) In the event of any vacancy on the Board occurring due to the death, resignation, retirement, disqualification or removal from office as a
member of the Board of any Non-Investor Director, the Board shall take all action (to the extent permitted by Law) required to fill the vacancy resulting therefrom with such replacement selected by the Non-Investor Directors acting by Company Non-Affiliate Approval as promptly as practicable. 

1.3 Compensation; Indemnification. Each Board Representative shall be entitled to the same expense reimbursement and advancement,
exculpation and indemnification in connection with his or her role as a director as the other members of the Board, as well as reimbursement for documented, reasonable
out-of-pocket expenses incurred in attending meetings of the Board or any committee of the Board of which such Board Representative is a member, if any, in each case to
the same extent as the other members of the Board. Each Board Representative shall be also entitled to any retainer, equity compensation or other fees or compensation paid to the non-employee Directors of the
Company for their services as a director, including any service on any committee of the Board; provided, however, that any such Board Representative that is an employee of the Fund or any of its Affiliates shall not receive any such
equity compensation, but in lieu thereof shall be entitled to receive cash compensation equal to twice the amount of any cash retainer or other cash fees or cash compensation paid to the non-employee Directors
of the Company for their services as a director, including any service on any committee of the Board. 
 1.4 Selection of Board
Representatives; Committees. For purposes of this Agreement, “Board Representative” means any person designated by the Investor to be elected or appointed to the Board, or his or her replacement designated in accordance
with Section 1.2, provided, that such person’s service as a director must not be prohibited by Law. The parties hereto agree that the persons listed on Exhibit A to this Agreement are qualified for service
pursuant to the foregoing sentence. Subject to applicable Law and stock exchange rules, until the Board Designation Expiration Date, each committee of the Board shall include at least one Board Representative. 

1.5 Nomination of Non-Investor Directors. Anything in the Certificate of Incorporation and the By-Laws of the Company notwithstanding and subject to Section 1.2(b), the Governance Committee shall take all actions necessary to nominate incumbent
Non-Investor Directors for election at an Election Meeting, unless otherwise approved by the Non-Affiliated Directors acting by Company
Non-Affiliate Approval. 

  
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 ARTICLE II 

RESTRICTED ACTIVITIES; PREEMPTIVE RIGHTS; VOTING 

2.1 Transfer Restrictions. 

(a) Other than solely in the case of a Transfer to an Affiliate of the Fund, or, if the Fund ceases to be an Affiliate of the Investor, to an
Affiliate of the Investor (provided that such Affiliate (i) has executed a customary joinder to this Agreement, in form and substance reasonably acceptable to the Company, in which such Affiliate agrees to be bound by the terms and conditions
of this Agreement applicable to the Investor and (ii) remains an Affiliate of the Fund, or the Investor, if applicable, throughout the Restricted Period), the Investor shall not Transfer any shares of Company Common Stock prior to the date that
is ninety (90) days after the Closing (such period, the “Restricted Period”). Following the Restricted Period, the Investor shall be free to Transfer any shares of Company Common Stock subject only to the restrictions set forth
in this Agreement and applicable Law. 
 (b) Until the Sunset Date, without Company Non-Affiliate
Approval, the Investor shall not Transfer any shares of Company Common Stock to any Person or Group who: 
 (i) is a Company
Competitor; 
 (ii) individually or in the aggregate with all Affiliates, Beneficially Owns, or would, after giving effect to
such Transfer, Beneficially Own, 15% or more of the outstanding shares of Company Common Stock; provided that in the cases of clauses (i) and (ii) the restriction shall not apply to (A) Transfers into the public market effected
through an underwritten offering that qualifies as a “public offering” pursuant to the rules and regulations of the NYSE or that is otherwise broadly marketed, in each case, pursuant to an exercise of the registration rights provided for
in this Agreement; (B) Transfers in open market transactions through an ordinary brokerage transaction; provided that such Transfers are not undertaken with the purpose or intent of circumventing this
Section 2.1; or (C) a Transfer to (1) an Affiliate of the Fund (provided that such Affiliate has executed a customary joinder to this Agreement, in form and substance reasonably acceptable to the Company, in which
such Affiliate agrees to be bound by the terms and conditions of this Agreement applicable to the Investor), it being understood, for the avoidance of doubt, that any direct or indirect Transfer of such Person that results in such Person ceasing to
remain an Affiliate shall be treated as a Transfer that is subject to the provisions of this Section 2.1 or (2) any party or parties not affiliated with the Investor who are acquiring direct or indirect ownership of
the Company in a merger, tender offer or other transaction approved or recommended by the Board; or 
 (iii) is an Affiliate
of the Fund or, if the Fund ceases to be an Affiliate of the Investor, is an Affiliate of the Investor unless such Affiliate has executed a customary joinder to this Agreement, in form and substance reasonably acceptable to the Company, in which
such Affiliate agrees to be bound by the terms and conditions of this Agreement applicable to the Investor for so long as such Person remains an Affiliate of the Fund or the Investor, as applicable, it being understood, for the avoidance of doubt,
that any direct or indirect Transfer of such Person that results in such Person ceasing to remain an Affiliate shall be treated as a Transfer that is subject to the provisions of this Section 2.1. 

  
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 (c) Any Transfer or attempted Transfer of Company Common Stock in violation of this
Section 2.1 shall, to the fullest extent permitted by applicable Law, be null and void ab initio, and the Company shall not, and shall instruct its transfer agent and other third parties not to, record or recognize
any such purported transaction on the share register of the Company. 
 In connection with any Transfer of Company Common Stock to an
Affiliate of the Fund or the Investor, that is permitted pursuant to this Agreement, the Company shall grant such approvals and take all other actions as are necessary to exempt such transaction from Section 203 of the DGCL. 

2.2 Restricted Activities. 

(a) The Investor and the Fund shall not and shall cause their respective Controlled Affiliates not to, directly or indirectly, without the
Company’s prior written consent: 
 (i) make any statement or proposal to the Board, any of the Company’s
Representatives, or any of the Company’s stockholders regarding, or make any public announcement, proposal or offer (including any “solicitation” of “proxies” as such terms are defined or used in Regulation 14A of the
Securities Exchange Act of 1934, as amended) with respect to, or otherwise solicit, seek or offer to effect (including, for the avoidance of doubt, indirectly by means of communication with the press or media) (1) any business combination,
merger, tender offer, exchange offer or similar transaction involving the Company or any of its Subsidiaries, (2) any restructuring, recapitalization, liquidation or similar transaction involving the Company or any of its Subsidiaries, or
(3) subject to clause (vi) below, any acquisition of any of the Company’s loans, debt securities, equity securities or assets, or rights or options to acquire interests in any of the Company’s loans, debt securities,
equity securities or assets; provided, however, that nothing in this Section 2.2(a)(i) shall prohibit the Fund or a Controlled Affiliate of the Fund from privately communicating any such
statement or proposal to the directors or Chief Executive Officer of the Company so long as such private communications do not, and would not reasonably be expected to, trigger public disclosure obligations of or for any Person (including, without
limitation, the filing of a Schedule 13D or Schedule 13G or any amendment thereof); 
 (ii) deposit any Voting Securities
into a voting trust or similar contract or subject any Voting Securities to any voting agreement, pooling arrangement or similar arrangement or other contract (other than solely between (A) the Investor and its Affiliates or (B) the
Investor and any Permitted Transferee with respect any shares of Company Common Stock Transferred to any such Permitted Transferee by the Investor as permitted by this Agreement) or grant any proxy with respect to any Voting Securities (other than
(A) pursuant to Section 2.5 or (B) otherwise to the Company or a Person specified by the Company in a proxy card provided to stockholders of the Company by or on behalf of the Company); 

  
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 (iii) form, join or in any way participate in any Group with any Person with
respect to any Voting Securities other than forming, joining or in any way participating in a Group solely between or among (A) the Investor and its Affiliates or (B) the Investor and any Permitted Transferee with respect any shares of
Company Common Stock Transferred to any such Permitted Transferee by the Investor as permitted by this Agreement; 
 (iv)
enter, agree to enter, propose or offer to enter into any merger, business combination, recapitalization, restructuring, change in control transaction or other similar extraordinary transaction involving the Company or any of its Subsidiaries
(unless such transaction is affirmatively publicly recommended by the Board and there has otherwise been no breach of this Section 2.2 in connection with or relating to such transaction); 

(v) otherwise act with any Person, including by providing financing for another party, to seek to control or influence the
management, the Board or the policies of the Company; 
 (vi) acquire, agree or propose to acquire any Voting Securities of
the Company or any Subsidiary thereof, other than as a result of any stock split or stock dividend of Voting Securities or exercise of preemptive rights pursuant to Section 2.3; 

(vii) call, or seek to call, a meeting of the stockholders of the Company or initiate any stockholder proposal for action by
stockholders of the Company, including nominating any Person to the Board (except pursuant to Section 1.1); 

(viii) publicly disclose any intention, plan or arrangement prohibited by, or inconsistent with, the foregoing; or 

(ix) knowingly instigate, facilitate, encourage or assist any third party to do any of the foregoing; 

provided that this Section 2.2 shall in no way limit (x) the activities of any director of the Company, so long as such
activities are undertaken solely in his or her capacity as a director of the Company or (y) any non-public communications by and between (A) the Investor and its Affiliates or (B) the Investor
and any Permitted Transferee with respect to any shares of Company Common Stock Transferred to any such Permitted Transferee by the Investor as permitted by this Agreement; provided, further that (other than as may be a violation of
clauses (i) and (ii) above) the right or ability of the Investor or its Controlled Affiliates to exercise their rights under this Agreement or the exercise by the Investor or its Controlled Affiliates of their right to vote shall
not, in either case be deemed a breach of this Section 2.2. For purposes of this Section 2.2, the term “Voting Securities” shall be deemed to include any security of the company that is
convertible into a Voting Security at any time. 
 (b) The Investor further agrees, it shall not and shall cause its Controlled Affiliates
not to, without the prior written consent of the Company, publicly request the Company to amend or waive any provision of this Section 2.2 (including this sentence) or do so in a manner that would require the Company to
publicly disclose such request. 

  
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 (c) The provisions in this Section 2.2 shall terminate on the Sunset
Date. 
 (d) For the purposes of this Section 2.2, consent of the Company shall require Company Non-Affiliate Approval. 
 2.3 Preemptive Rights. 

(a) Subject to the provisions of this Section 2.3 (including Section 2.3(f)), the Company
hereby grants to the Investor the right, subject to applicable Law, to purchase the Investor’s Pro Rata Portion of any additional shares of Voting Securities, other equity securities or any securities convertible into, or exchangeable for
Voting Securities or equity securities of the Company equity securities that the Company may from time to time propose to issue (collectively, the “New Securities”); provided that, for the avoidance of doubt, no Proposed
Issuance (including any issuance of New Securities to the Investor) completed in compliance with this Section 2.3 shall be applied in a circular manner to this Section 2.3 so as to result in
duplicative or iterative pre-emptive rights. 
 (b) The Company shall undertake commercially
reasonable efforts to provide the Investor with advance written notice of any proposed issuance subject to this Section 2.3 (a “Proposed Issuance”). Prior to or in connection with the consummation of a
Proposed Issuance, the Company shall promptly notify the Investor in writing (an “Issuance Notice”). The Investor shall have a right to purchase the New Securities of the kind offered in such Proposed Issuance on the following
terms: 
 (i) In the event a Proposed Issuance is conducted as a registered public offering, the Investor shall be entitled
to purchase such New Securities at the public offering price for such Proposed Issuance and on the same terms and at the same time as the New Securities are proposed to be Issued by the Company. 

(ii) In the event the Proposed Issuance includes a separate closing for the issuance of New Securities pursuant to the
underwriters’ over-allotment or similar option, the Company shall provide a separate Issuance Notice to the Investor with respect to such issuance. 

(iii) In the event the Proposed Issuance is conducted as an offering other than a public offering (e.g., a private placement),
Purchaser shall be entitled to purchase such New Securities at the same price that was paid by the purchasers of New Securities in such Proposed Issuance and on the same terms and at the same time as the New Securities are proposed to be Issued by
the Company. 
 (c) The Investor shall have seven (7) calendar days from the receipt of an Issuance Notice (the “Exercise
Period”) to elect to purchase its Pro Rata Portion of the New Securities, at an all-cash purchase price per New Security (the “Per Security Offering Price”) equal to: (i) in the
case of all-cash consideration proposed to be received by the Company in respect of the Proposed Issuance, the cash purchase price per New Security set forth in the Issuance Notice or (2) in the case of
consideration other than all-cash consideration proposed to be received by the Company in respect of the Proposed Issuance, the per New Security price derived from the aggregate fair market value of all
consideration proposed to be received by the 

  
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Company as of the date of closing of the Proposed Issuance. The Investor may exercise its election by delivering a written notice to the Company during the Exercise Period. Such notice must
indicate the specific amount of New Securities that the Investor desires to purchase and may not be conditioned in any manner not also available to other potential purchasers of the Proposed Issuance, except that it may be conditioned on the
consummation of the Proposed Issuance. The Investor, if so exercising its election, shall be entitled and obligated to purchase, that portion of the New Securities so offered to the Investor specified in the Investor’s notice on the terms and
conditions set forth in this Section 2.3. The failure of the Investor to exercise its election to purchase of its allotment of the New Securities during the Exercise Period shall be deemed a waiver by the Investor of its
rights under this Section 2.3 with respect to such Proposed Issuance. The closing of any purchase by the Investor shall be consummated concurrently with the consummation of the Proposed Issuance; provided,
however, that the closing of any purchase by any the Investor may be extended beyond the closing of the consummation of the Proposed Issuance to the extent necessary to obtain required governmental approvals (a “Closing
Extension”), but for the avoidance of doubt the Company shall not be required to delay or extend the closing of the other portion of the Proposed Issuance to the extent not subject to such governmental approval requirement. In the event of
a Closing Extension, the Investor’s Investor Percentage Interest during such period shall be calculated as if such purchase of New Securities by the Investor had been consummated concurrently with the closing of the other portion of the
Proposed Issuance not subject to any governmental approval requirement. 
 (d) Subject to Section 2.3(e), if the
Investor fails to purchase its allotment of the New Securities within the time period described in Section 2.3(c), the Company shall be free to complete the Proposed Issuance within sixty (60) days following the date
of the Issuance Notice to the extent and with respect to which the Investor failed to exercise the option set forth in this Section 2.3 on terms no less favorable to the Company (including with respect to consideration)
than those set forth in the Issuance Notice (except that the amount of New Securities to be issued or sold by the Company may be reduced). If the Company has not completed the sale of New Securities in accordance with the foregoing sentence, the
Company shall provide a new Issuance Notice to the Investor on the terms and provisions set forth in Section 2.3. 

(e) In the event that the Company has been advised by its outside counsel that the issuance of New Securities in full to the Investor pursuant
to this Section 2.3 would require the approval of the Company’s stockholders under applicable Law, including the rules of the New York Stock Exchange (the “NYSE”) or the rules of such other national
securities exchange on which the Company Common Stock is then listed or trading, the excess amount of such New Securities to the extent otherwise triggering such stockholder approval requirement will be excluded from the total number of New
Securities that the Investor would otherwise have a right to purchase pursuant to this Section 2.3. 
 (f) The
preemptive rights under this Section 2.3 shall not apply to (i) issuance or sales of New Securities to employees, officers, directors, managers or consultants of the Company or any of its Subsidiaries pursuant to
employee benefits or similar employee or management equity incentive plans or arrangements of the Company or any Subsidiary thereof approved by the Compensation Committee by unanimous vote or approved by a majority of the issued and outstanding
Company Common Stock; (ii) issuances or sales to a Person (who are not 

  
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affiliates of the Company) in connection with an acquisition (or series of related acquisitions), joint venture, business combination or merger; (iii) issuances of New Securities by the
Company to a wholly owned Subsidiary of the Company; or (iv) an ongoing at-the-market offering of equity securities or other similar offering of equity securities
(an “ATM Offering”). 
 2.4 ATM Offer and Election to Purchase. The foregoing notwithstanding, if the Company
conducts an ATM Offering, the Company shall not be required to provide the Investor with advance notice of any such ATM Offering; provided, however, that the Company shall be required to offer (an “ATM Offer”) the
Investor the opportunity to purchase New Securities of the same kind offered by the Company in the ATM Offering on a quarterly basis in arrears up to such aggregate amount as would enable the Investor to maintain its Investor Percentage Interest, on
the following terms: 
 (a) The ATM Offer shall be made in writing to the Investor promptly following the end of each calendar quarter during
which any New Securities were sold pursuant to an ATM Offering, but in any event no later than the tenth (10th) Business Day following the end of such calendar quarter, which offer shall include
the purchase price and number and type of New Securities that may be purchased; 
 (b) The Investor shall be entitled to purchase such New
Securities at a price equal to the volume weighted average price at which such New Securities were sold by the Company pursuant to such ATM Offering over the immediately preceding calendar quarter. 

(c) The Investor shall have seven (7) calendar days from the date of its receipt of the ATM Offer pursuant to this
Section 2.4 to elect to purchase, and to fully fund the purchase of, of any such New Securities. If the Investor does not elect to purchase any New Securities and/or does not provide immediately available funds for the
purchase of such New Securities to the Company within such seven (7) calendar day period, the Investor’s rights to purchase such New Securities shall terminate. 

2.5 Voting. From and after the date of this Agreement, until the Sunset Date, the Investor agrees (i) to cause all Voting
Securities held by the Investor or any of its Controlled Affiliates or over which the Investor or any of its Subsidiaries otherwise has voting discretion or control to be present at any Election Meeting either in person or by proxy; (ii) to
vote such Voting Securities Beneficially Owned by it or any of its Subsidiaries or over which the Investor or any of its Subsidiaries otherwise has voting discretion or control (A) in favor of all director nominees nominated by the
Company’s Nominating and Corporate Governance Committee (the “Governance Committee”) (including the Board Representatives and Non-Investor Directors nominated to the Board pursuant to
Sections 1.2(b) and 1.5 (such nominated Non-Investor Directors, the “Nominated Non-Investor Directors”)), (B) against any other nominees
and (C) against the removal of any Non-Investor Director unless the Governance Committee so recommends in favor of such removal (such recommendation not to be made without the approval of the Non-Affiliated Directors acting by Company Non-Affiliated Approval), (iii) for so long as the Investor Percentage Interest is greater than or equal to 30%, not to vote such
Voting Securities in favor of any proposals by stockholders of the Company (including under Rule 14a-8 of the Exchange Act), except at the Investor’s discretion either (A) in a manner that is
proportionate to the manner in which all shares of Company Common Stock owned by other 

  
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holders of Company Common Stock who are not Controlled Affiliates of the Investor are voted with respect to such matter, so that, for any such matter, the shares of Company Common Stock owned by
Investor or any of its Controlled Affiliates or over which the Investor or any of its Subsidiaries otherwise has voting discretion or control shall reflect voting results with respect to “shares voted for,” “shares voted
against,” “shares abstained,” “shares withheld” and “broker non-votes” proportionate to the aggregate voting results for shares of Company Common Stock that are owned by
other holders of Company Common Stock that are not Controlled Affiliates of the Investor or over which the Investor or any of its Subsidiaries otherwise does not have voting discretion or control and that are deemed present in person or by proxy at
such stockholder meeting, or (B) in a manner that is consistent with the recommendation of the Board, (iv) to not vote such Voting Securities in favor of any Change of Control Transaction submitted to the Company’s stockholders for
approval or adoption pursuant to which the per-share consideration to be received by the Investor or any of its Affiliates in respect of their shares of Company Common Stock in such Change of Control
Transaction is different in amount or form from the per-share consideration to be received by other holders of Company Common Stock who are not Affiliates of the Investor or the Company in respect of their
shares of Company Common Stock in such Change of Control Transaction, disregarding any right to select cash and/or securities as consideration in such Change of Control Transaction that is offered generally to holders of Company Common Stock in such
Change of Control Transaction, unless such Change of Control Transaction is approved by the Board with Company Non-Affiliate Approval or any dissenters’ rights, and (v) not to take, alone or in
concert with any other Persons, any action to remove or oppose any Non-Investor Director or to seek to change the size or composition of the Board or otherwise seek to expand the Investor’s representation
on the Board in each case in a manner inconsistent with Section 1.1(b). As promptly as practicable following the record date for an Election Meeting or any annual or special meeting at which directors are to be removed, the
Investor shall provide the Company a proxy for purposes of effecting the immediately preceding sentence. For the avoidance of doubt, nothing in this Section 2.5 shall require the Investor to vote any Voting Securities or
cause any such Voting Securities to be voted in accordance with the Board’s recommendation with respect to any other matter requiring stockholder approval under Law that is not expressly addressed above. 

2.6 Amendment to Parent Certificate of Incorporation. The Company shall not amend, or propose to amend, the Parent Certificate of
Incorporation in any manner that is inconsistent with or would nullify or supersede any of the terms of this Agreement or would prevent any party hereto from complying with its obligations hereunder unless such proposed amendment is approved by a
majority of the entire Board as well as (1) a majority of the Board Representatives and (2) a majority of the Non-Investor Directors, in each case then serving on the Board. 

2.7 Removal and Replacement of the Chief Executive Officer. From the Effective Time until the Sunset Date, the Company agrees that the
removal and/or replacement of the Chief Executive Officer of the Company, or appointment of a new Chief Executive Officer in the event of a vacancy in such office, shall require approval of a majority of the Board including Company Non-Affiliate Approval. 
 2.8 Indebtedness. During the period beginning on the Closing Date and
ending on the one year anniversary of the Closing Date, the Company shall not incur any Indebtedness, other than Indebtedness under the Existing Credit Facility, without the approval of a majority of the Board Representatives. 

  
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 2.9 Controlled Company. From the Effective Time until the Sunset Date, the Company shall
not elect to be treated as a “controlled company” under, nor avail itself of any “controlled company” exceptions to the corporate governance requirements of, the rules and regulations of the NYSE or any similar rules of such
other national securities exchange on which the Company Common Stock is then listed or trading, without the approval of a majority of the Board including Company Non-Affiliate Approval. 

ARTICLE III 
 REGISTRATION RIGHTS

 3.1 Registration. 

(a) The Company shall, as soon as practicable after the Closing Date, file a shelf registration statement under the Securities Act to permit
the public resale of all the Registrable Securities held by the Investor from time to time as permitted by Rule 415 under the Securities Act (or any successor or similar provision adopted by the SEC then in effect) (a “Shelf Registration
Statement”) and use reasonable best efforts to cause such Shelf Registration Statement to be declared effective as promptly as practicable (but in any event, prior to expiration of the Restricted Period). Subject to
Section 3.4, the Company shall use reasonable best efforts to keep such Shelf Registration Statement continuously effective, to be supplemented and amended to the extent necessary to ensure that such Shelf Registration
Statement is available or, if not available, that another registration statement is available, for the resale of all the Registrable Securities held by the Investor and other Holders and in compliance with the Securities Act and usable for resale of
such Registrable Securities for a period from the date of its initial effectiveness until the earlier of (i) the date on which all Registrable Securities covered by the Shelf Registration Statement have been sold thereunder in accordance with
the plan and method of distribution disclosed in the prospectus included in the Shelf Registration Statement, or otherwise cease to be Registrable Securities, and (ii) the date on which this Agreement terminates pursuant to
Section 5.1. If the Company is a well-known seasoned issuer (as defined in Rule 405 under the Securities Act) at the time of filing of the Shelf Registration Statement with the SEC, such Shelf Registration Statement shall
be designated by the Company as an automatic Shelf Registration Statement. 
 (b) Subject to the eligibility of the Company to use a
registration statement on Form S-3 (a “Form S-3”), any registration pursuant to this Section 3.1 shall be effected by means of
a Form S-3 providing for an offering to be made on a continuous basis pursuant to Rule 415 under the Securities Act in accordance with the methods and distribution set forth in the Shelf Registration Statement
and Rule 415. If the Investor or any other holder of Registrable Securities to whom the registration rights conferred by this Agreement have been transferred in compliance with this Agreement intends to distribute any Registrable Securities included
by it on the Shelf Registration Statement by means of an underwritten offering (a “Underwritten Shelf Take-Down ”), it shall promptly so advise the Company in writing and the Company shall take all reasonable steps to facilitate
such distribution, including amending or supplementing the Shelf Registration Statement as necessary in order to enable such Registrable Securities to be 

  
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distributed pursuant to the Underwritten Shelf Take-Down and the actions required pursuant to Section 3.3; provided that the Company shall not be required to
facilitate, and the Investor (together with all other Holders) shall not be entitled to request, (i) more than six (6) Underwritten Shelf Take-Downs in the aggregate or (ii) an Underwritten Shelf Take-Down unless the expected gross
proceeds from such Underwritten Shelf Take-Down exceed $50,000,000. The lead underwriters in any such distribution shall be selected by the holders of a majority of the Registrable Securities to be distributed; provided that such selections
are reasonably acceptable to the Company. 
 (c) The Company shall not be required to effect a registration (including a resale of
Registrable Securities from an effective Shelf Registration Statement) or an underwritten offering pursuant to this Section 3.1: (i) with respect to securities that are not Registrable Securities or (ii) during
any Permitted Black-out Period; provided that such right to delay a registration or underwritten offering shall be exercised by the Company only if the Company has generally exercised (or is
concurrently exercising) similar black-out rights against holders of similar securities that have registration rights. 

(d) If, during a period when the Shelf Registration Statement is not effective or available (provided, for the avoidance of doubt, that the
failure of the Shelf Registration Statement to be effective or available shall not be a requirement for the Investor or any Holder to exercise its rights pursuant to this Section 3.1(d) and
Section 3.1(e) with respect to any Piggyback Registration that is proposed to be an underwritten offering), the Company proposes to file a Registration Statement or prospectus supplement with respect to an offering of its
equity securities, other than a registration pursuant to Section 3.1(a) or a Special Registration, and the registration form to be filed may be used for the registration or qualification for distribution of Registrable
Securities, the Company will give prompt written notice to the Investor and all other Holders of its intention to effect such a registration (but in no event less than ten (10) Business Days prior to the anticipated filing date) and (subject to
clause (f) below) will include in such registration all Registrable Securities with respect to which the Company has received written requests for inclusion therein within five (5) Business Days after the date of the Company’s
notice (a “Piggyback Registration”). Any such person that has made such a written request may withdraw its Registrable Securities from such Piggyback Registration by giving written notice to the Company and the managing underwriter,
if any, on or before the pricing date of such Piggyback Registration. The Company may terminate or withdraw any registration under this Section 3.1(d) prior to the effectiveness of such registration, whether or not the
Investors or any other Holders have elected to include Registrable Securities in such registration. “Special Registration” means the registration of (i) equity securities and/or options or other rights in respect thereof solely
registered on Form S-4 or Form S-8 (or successor form) or (ii) shares of equity securities and/or options or other rights in respect thereof to be offered to
directors, members of management, employees, consultants, customers, lenders or vendors of the Company or its subsidiaries or in connection with dividend reinvestment plans. 

(e) If the registration referred to in Section 3.1(d) is proposed to be underwritten, the Company will so advise the
Investor and all other Holders as a part of the written notice given pursuant to Section 3.1(d). In such event, the right of any Investor and all other Holders to registration pursuant to this
Section 3.1 will be conditioned upon such persons’ participation in such underwriting and the inclusion of such persons’ Registrable Securities in the 

  
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underwriting, and each such person will (together with the Company and the other persons distributing their securities through such underwriting) enter into an underwriting agreement in customary
form with the underwriter or underwriters selected for such underwriting by the Company. Any Holder so participating shall not be required to make any representations or warranties to or agreements with the Company or the underwriters in connection
with such underwriting agreement other than representations, warranties or agreements regarding such Holder, such Holder’s title to the Registrable Securities, such Holder’s authority to sell the Registrable Securities, such Holder’s
intended method of distribution, absence of liens with respect to the Registrable Securities, enforceability of the applicable underwriting agreement as against such Holder, receipt of all consents and approvals with respect to the entry into such
underwriting agreement and the sale of such Registrable Securities by such Holder and any other representations required to be made by such Holder under applicable law, rule or regulation, and the aggregate amount of the liability of such
Holder in connection with such underwriting agreement shall not exceed such Holder’s net proceeds from such underwritten offering (i.e., less underwriting discounts and commissions). If any participating person disapproves of the terms of the
underwriting, such person may elect to withdraw therefrom by written notice to the Company and the managing underwriter prior to the execution of the underwriting agreement with respect thereto. 

(f) If, in connection with a Piggyback Registration under Section 3.1(d), the managing underwriters advise the
Company that in their reasonable opinion the number of securities requested to be included in such offering exceeds the number which can be sold without adversely affecting the marketability of such offering (including an adverse effect on the per
share offering price), the Company will include in such registration or prospectus only such number of securities that in the reasonable opinion of such underwriters can be sold without adversely affecting the marketability of the offering
(including an adverse effect on the per share offering price), which securities will be so included in the following order of priority: 

(i) if the Piggyback Registration relates to an offering for the Company’s own account, then (A) first, the
securities the Company proposes to sell, (B) second, Registrable Securities of the Investor and all other Holders who have requested registration of Registrable Securities pursuant to Section 3.1(d), as
applicable, pro rata on the basis of the aggregate number of such securities or shares owned by each such person, and (C) third, any other securities of the Company that have been requested to be so included, subject to the terms of this
Agreement; or 
 (ii) if the Piggyback Registration relates to an offering other than for the Company’s own account,
then (A) first, (1) if such registration is being made at the request of Investor or any Holder pursuant to this Section 3.1, all Registrable Securities of the Investor and all other Holders who have requested
registration of Registrable Securities pursuant to Section 3.1(b) or 3.1(d), as applicable, pro rata on the basis of the aggregate number of such securities or shares owned by each such person, or (ii) if such
registration is not being made at the request of Investor or any Holder pursuant to this Section 3.1, the securities sought to be registered by Persons who have sought to have securities of the Company registered pursuant
to rights to demand such registration and the Registrable Securities of the Investor and all other Holders who have requested registration of Registrable Securities pursuant to Section 3.1(d), pro rata on the basis of the
aggregate number of such securities or shares owned by each such person and (B) second, the securities the Company proposes to sell. 

  
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 3.2 Expenses of Registration. All Registration Expenses incurred in connection with any
registration, qualification or compliance hereunder shall be borne by the Company. All Selling Expenses incurred in connection with any registrations hereunder shall be borne by the holders of the securities so registered pro rata on the basis of
the aggregate offering or sale price of the securities so registered. 
 3.3 Obligations of the Company. The Company shall use its
reasonable best efforts for so long as there are Registrable Securities outstanding, to take such actions as are under its control to remain a well-known seasoned issuer (as defined in Rule 405 under the Securities Act) if it becomes eligible for
such status in the future (and not become an ineligible issuer (as defined in Rule 405 under the Securities Act)). In addition, whenever required to effect the registration of any Registrable Securities or facilitate the distribution of Registrable
Securities pursuant to an effective Shelf Registration Statement, the Company shall, as expeditiously as reasonably practicable: 
 (a)
Prepare and file with the SEC a prospectus supplement with respect to a proposed offering of Registrable Securities pursuant to an effective Registration Statement, subject to this Section 3.3, keep such Registration
Statement effective or such prospectus supplement current until the securities described therein are no longer Registrable Securities. 
 (b)
Prepare and file with the SEC such amendments and supplements to the applicable Registration Statement and the prospectus or prospectus supplement used in connection with such Registration Statement as may be necessary to comply with the provisions
of the Securities Act with respect to the disposition of all securities covered by such Registration Statement. 
 (c) Furnish to the Holders
and any underwriters such number of copies of the applicable Registration Statement and each such amendment and supplement thereto (including in each case all exhibits) and of a prospectus, including a preliminary prospectus, in conformity with the
requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned or to be distributed by them. 

(d) Use its reasonable best efforts to register and qualify the securities covered by such Registration Statement under such other securities
or blue sky laws of such jurisdictions as shall be reasonably requested by the Holders or any managing underwriter(s), to keep such registration or qualification in effect for so long as such Registration Statement remains in effect, and to take any
other action which may be reasonably necessary to enable such seller to consummate the disposition in such jurisdictions of the securities owned by such Holder; provided that the Company shall not be required in connection therewith or as a
condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions. 

  
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 (e) Notify promptly each Holder of Registrable Securities at any time when a prospectus relating
thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the applicable prospectus, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required
to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing. 
 (f) Give
prompt written notice to the Holders: 
 (i) when any Registration Statement filed pursuant to
Section 3.1 or any amendment thereto has been filed with the SEC (except for any amendment effected by the filing of a document with the SEC pursuant to the Exchange Act) and when such Registration Statement or any
post-effective amendment thereto has become effective; 
 (ii) of any request by the SEC for amendments or supplements to any
Registration Statement or the prospectus included therein or for additional information; 
 (iii) of the issuance by the SEC
of any stop order suspending the effectiveness of any Registration Statement or the initiation of any proceedings for that purpose; 

(iv) of the receipt by the Company or its legal counsel of any notification with respect to the suspension of the qualification
of Company Common Stock for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; 

(v) of the happening of any event that requires the Company to make changes in any effective Registration Statement or the
prospectus related to the Registration Statement in order to make the statements therein not misleading (which notice shall be accompanied by an instruction to suspend the use of the prospectus until the requisite changes have been made); and 

(vi) if at any time the representations and warranties of the Company contained in any underwriting agreement contemplated by
Section 3.3(j) cease to be true and correct. 
 (g) Use its reasonable best efforts to prevent the issuance or
obtain the withdrawal of any order suspending the effectiveness of any Registration Statement referred to in Section 3.3(f)(iii) at the earliest practicable time. 

(h) Upon the occurrence of any event contemplated by Section 3.3(e) or 3.3(f)(v), promptly prepare a
post-effective amendment to such Registration Statement or a supplement to the related prospectus or file any other required document so that, as thereafter delivered to the Holders and any underwriters, the prospectus will not contain an untrue
statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. 

  
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 (i) Use reasonable best efforts to procure the cooperation of the Company’s transfer agent
in settling any offering or sale of Registrable Securities. 
 (j) If an Underwritten Shelf Take-Down is requested pursuant to
Section 3.1(b), enter into an underwriting agreement in customary form, scope and substance and take all such other actions reasonably requested by the Holders of a majority of the Registrable Securities being sold in
connection therewith or by the managing underwriter(s), if any, to expedite or facilitate the underwritten disposition of such Registrable Securities, and in connection therewith in any underwritten offering (including making members of management
and executives of the Company reasonably available to participate in “road shows,” similar sales events and other marketing activities), (i) make such representations and warranties to the Holders that are selling stockholders and the
managing underwriter(s), if any, with respect to the business of the Company and its subsidiaries, and the Shelf Registration Statement, prospectus and documents, if any, incorporated or deemed to be incorporated by reference therein, in each case,
in customary form, substance and scope, and, if true, confirm the same if and when requested, (ii) use its reasonable best efforts to furnish the underwriters with opinions of counsel to the Company, addressed to the managing underwriter(s), if
any, covering the matters customarily covered in such opinions requested in underwritten offerings, (iii) use its reasonable best efforts to obtain “cold comfort” letters from the independent certified public accountants and reserve
engineers of the Company (and, if necessary, any other independent certified public accountants of any business acquired by the Company for which financial statements and financial data are included in the Shelf Registration Statement) who have
certified the financial statements included in such Shelf Registration Statement, addressed to each of the managing underwriter(s), if any, such letters to be in customary form and covering matters of the type customarily covered in “cold
comfort” letters, (iv) if an underwriting agreement is entered into, the same shall contain indemnification provisions and procedures customary in underwritten offerings, and (v) deliver such documents and certificates as may be
reasonably requested by the Holders of a majority of the Registrable Securities being sold in connection therewith, their counsel and the managing underwriter(s), if any, to evidence the continued validity of the representations and warranties made
pursuant to clause (i) above and to evidence compliance with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company. Notwithstanding anything contained herein to the
contrary, the Company shall not be required to enter into any underwriting agreement or permit any underwritten offering absent an agreement by the applicable underwriter(s) to indemnify the Company in form, scope and substance as is customary in
underwritten offerings by the Company. 
 (k) (A) make available for inspection by a representative of Holders that are selling stockholders,
the managing underwriter(s), if any, and any attorneys or accountants retained by such Holders or managing underwriter(s), at the offices where normally kept, upon reasonable advance notice and during reasonable business hours, financial and other
records, pertinent corporate documents and properties of the Company, and cause the officers, directors and employees of the Company to supply all information in each case reasonably requested (and of the type customarily provided in connection with
due diligence conducted in connection with a registered public offering of securities) by any such representative, managing underwriter(s), attorney or accountant in connection with such Shelf Registration Statement and (B) use reasonable best
efforts to procure customary legal opinions and auditor and reserve engineer “comfort” letters in connection with the sale of Registrable Securities the Investor or any other Holder utilizing the Shelf Registration Statement. 

  
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 (l) Cause all such Registrable Securities to be listed on each securities exchange on which
similar securities issued by the Company are then listed or, if no similar securities issued by the Company are then listed on any securities exchange, use its reasonable best efforts to cause all such Registrable Securities to be listed on the NYSE
or the NASDAQ Stock Market, as determined by the Company. 
 (m) If requested by Holders of a majority of the Registrable Securities being
registered and/or sold in connection therewith, or the managing underwriter(s), if any, promptly include in a prospectus supplement or amendment such information as the Holders of a majority of the Registrable Securities being registered and/or sold
in connection therewith or managing underwriter(s), if any, 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 amendment as soon as
practicable after the Company has received such request. 
 (n) Timely provide to its security holders earning statements satisfying the
provisions of Section 11(a) of the Securities Act and Rule 158 thereunder. 
 3.4 Suspension of Sales. During (i) any
Permitted Black-out Period or (ii) upon receipt of written notice from the Company that a Registration Statement, prospectus or prospectus supplement contains or may contain an untrue statement of a
material fact or omits or may omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading or that circumstances exist that make inadvisable use of such Registration Statement, prospectus or
prospectus supplement, each Holder of Registrable Securities shall forthwith discontinue disposition of Registrable Securities until termination of such Permitted Black-out Period or until such Holder has
received copies of a supplemented or amended prospectus or prospectus supplement, or until such Holder is advised in writing by the Company that the use of the prospectus and, if applicable, prospectus supplement may be resumed, and, if so directed
by the Company, such Holder shall deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such Holder’s possession, of the prospectus and, if applicable, prospectus supplement covering such
Registrable Securities current at the time of receipt of such notice. The total number of days that any such suspension described in clause (ii) of this paragraph may be in effect in any 180-day
period shall not exceed 30 days. The total number of days that any suspension periods described in clause (ii), together with any Permitted Blackouts Periods, may collectively be in effect during any 12-month
period shall not exceed 120 days. 
 3.5 Termination of Registration Rights. A Holder’s registration rights as to any securities
held by such Holder shall terminate on the date such securities cease to qualify as Registrable Securities. 

  
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 3.6 Furnishing Information. 

(a) Neither any Investor nor any Holder shall use any free writing prospectus (as defined in Rule 405) in connection with the sale of
Registrable Securities without the prior written consent of the Company. 
 (b) It shall be a condition precedent to the obligations of the
Company to take any action pursuant to Section 3.3 that the Investors and/or the selling Holders shall furnish to the Company such information regarding themselves, the Registrable Securities held by them and the intended
method of disposition of such securities as shall be reasonably required to effect the registered offering of their Registrable Securities. 

3.7 Indemnification. 
 (a)
The Company agrees to indemnify each Holder and, if a Holder is a person other than an individual, such Holder’s direct or indirect partners, members or stockholders and each of such partner’s, member’s or stockholder’s partners,
members or stockholders and, with respect to all of the foregoing Persons, each of their respective Affiliates, employees, directors, officers, trustees or agents and controlling Persons within the meaning of the Securities Act and each of their
respective representatives (each, an “Indemnitee”), against any and all Losses, joint or several, arising out of or based upon (i) any untrue statement or alleged untrue statement of material fact contained in any Registration
Statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto or any documents incorporated therein by reference or contained in any free writing prospectus (as such term is defined in
Rule 405) prepared by the Company or authorized by it in writing for use by such Holder (or any amendment or supplement thereto) or any omission to state therein a material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading; provided, that the Company shall not be liable to such Indemnitee in any such case to the extent that any such loss, claim, damage, liability (or action or
proceeding in respect thereof) or expense arises out of or is based upon (A) an untrue statement or omission made in such Registration Statement, including any such preliminary prospectus or final prospectus contained therein or any such
amendments or supplements thereto or contained in any free writing prospectus (as such term is defined in Rule 405) prepared by the Company or authorized by it in writing for use by such Holder (or any amendment or supplement thereto), in reliance
upon and in conformity with information regarding such Indemnitee or its plan of distribution or ownership interests which was furnished in writing to the Company by such Indemnitee expressly for use in connection with such Registration Statement,
including any such preliminary prospectus or final prospectus contained therein or any such amendments or supplements thereto, or (B) offers or sales effected by or on behalf such Indemnitee “by means of” (as defined in Rule 159A) a
“free writing prospectus” (as such term is defined in Rule 405) that was not authorized in writing by the Company; (ii) any violation or alleged violation by the Company of any federal, state or common law rule or regulation
applicable to the Company or any of its subsidiaries in connection with any such registration, qualification, compliance or sale of Registrable Securities; (iii) any failure to register or qualify Registrable Securities in any state where the
Company or its agents have affirmatively undertaken or agreed in writing that the Company (the undertaking of any underwriter being attributed to the Company) will undertake such registration or qualification on

  
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behalf of the Holders of such Registrable Securities (provided that in such instance the Company shall not be so liable if it has undertaken its reasonable best efforts to so register or
qualify such Registrable Securities); or (iv) any actions or inactions or proceedings in respect of the foregoing whether or not an Indemnitee is a party thereto, whether such Registration Statement, final prospectus, preliminary prospectus,
free writing prospectus (as defined in Rule 405) or other document is issued pursuant to this Agreement or otherwise. 
 (b) In connection
with any Registration Statement in which a Holder is participating, each such Holder shall, severally and not jointly, indemnify the Company, its directors and officers, and each Person, if any, who controls the Company within the meaning of the
Securities Act to the same extent as the foregoing indemnity provided for in Section 3.7(a) from the Company to the Holders, but only to the extent arising out of or based upon information furnished in writing by such
Holder, or on such Holder’s behalf, expressly for use in any Registration Statement or any prospectus, including any amendment or supplement thereto. In no event shall the liability of such Holder hereunder be greater in amount than the dollar
amount of the net proceeds (less underwriting discounts and commissions) received by such Holder under the sale of Registrable Securities giving rise to such indemnification obligation. 

(c) Any Person entitled to indemnification hereunder (the “Indemnified Party”) shall give prompt written notice to the Person
against whom such indemnity may be sought (the “Indemnifying Party”) of any claim with respect to which it seeks indemnification; provided, however, the failure to give such notice shall not release the Indemnifying
Party from its obligation, except to the extent that the Indemnifying Party has been actually and materially prejudiced by such failure to provide such notice on a timely basis. 

(d) In any case in which any such action is brought against any Indemnified Party, and it notifies an Indemnifying Party of the commencement
thereof, the Indemnifying Party will be entitled to participate therein, and, to the extent that it may wish, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the Indemnifying Party
to such Indemnified Party of its election so to assume the defense thereof and acknowledging the obligations of the Indemnifying Party with respect to such proceeding, the Indemnifying Party will not (so long as it shall continue to have the right
to defend, contest, litigate and settle the matter in question in accordance with this paragraph) be liable to such Indemnified Party hereunder for any legal or other expense subsequently incurred by such Indemnified Party in connection with the
defense thereof other than reasonable costs of investigation, supervision and monitoring (unless (i) such indemnified party reasonably objects to such assumption on the grounds that there may be defenses available to it which are different from
or in addition to the defenses available to such Indemnifying Party and, as a result, a conflict of interest exists or (ii) the Indemnifying Party shall have failed within a reasonable period of time to assume such defense and the Indemnified
Party is or would reasonably be expected to be materially prejudiced by such delay, in either event the indemnified party shall be promptly reimbursed by the Indemnifying Party for the reasonable expenses incurred in connection with retaining one
separate legal counsel (for the avoidance of doubt, for all indemnified parties in connection therewith)). For the avoidance of doubt, notwithstanding any such assumption by an Indemnifying Party, the indemnified party shall have the right to employ
separate counsel in any such matter and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such indemnified party except as provided in 

  
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the previous sentence. An Indemnifying Party shall not be liable for any settlement of an action or claim effected without its consent (which consent shall not be unreasonably withheld,
conditioned or delayed). No matter shall be settled by an Indemnifying Party without the consent of the indemnified party (which consent shall not be unreasonably withheld, conditioned or delayed), unless such settlement (x) includes as an
unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation, (y) does not include any statement as to or any admission of fault, culpability
or a failure to act by or on behalf of any indemnified party, and (z) does not involve any injunctive or equitable relief that would be binding on the indemnified party or any payment that is not covered by the indemnification hereunder. 

(e) The indemnification provided for under this Agreement shall survive the Transfer of the Registrable Securities and the termination of this
Agreement. 
 (f) If the indemnification provided for in this Section 3.7 is unavailable to a Indemnified Party
from the Person against the Indemnifying Party with respect to any Losses or is insufficient to hold the Indemnified Party harmless as contemplated therein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the Indemnified Party, on the one hand, and the Indemnifying Party, on the other
hand, in connection with the statements or omissions which resulted in such Losses as well as any other relevant equitable considerations. The relative fault of the Indemnifying Party, on the one hand, and of the Indemnified Party, on the other
hand, shall be determined by reference to, among other factors, whether the untrue statement of a material fact or omission to state a material fact relates to information supplied by the Indemnifying Party or by the Indemnified Party and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission; the Company and each Holder agree that it would not be just and equitable if contribution pursuant to this
Section 3.7(f) 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 this Section 3.7. No Indemnified
Party guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Indemnifying Party if the Indemnifying Party was not guilty of such fraudulent
misrepresentation. 
 3.8 Assignment of Registration Rights. The rights of any Holder to registration of Registrable Securities
pursuant to Article III (but no other rights hereunder) may be assigned by such Holder to a transferee or assignee of Registrable Securities (i) that is a Permitted Transferee of such Holder to which there is
Transferred at least $5,000,000 in Registrable Securities or (ii) to which there is Transferred to such transferee no less than $50,000,000 in Registrable Securities, as otherwise permitted by this Agreement; provided, however,
that the transferor shall, within ten (10) days after such transfer, furnish to the Company written notice of the name and address of such transferee or assignee and the number and type of Registrable Securities that are being assigned. 

3.9 Holdback; Lockup. With respect to any underwritten offering of Registrable Securities by the Investors or other Holders
pursuant to this Article III, (i) the Company agrees not to effect (other than pursuant to such registration or pursuant to a Special Registration) any 

  
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public sale or distribution, or to file any Registration Statement (other than such registration or a Special Registration) covering any of its equity securities, or any securities convertible
into or exchangeable or exercisable for such securities, during the period not to exceed ten (10) days prior and sixty (60) days following the date of execution of the underwriting agreement with respect to such underwritten offering or
such longer period up to ninety (90) days as may be requested by the managing underwriter and (ii) the Company agrees to cause each of its directors and senior executive officers to execute and deliver, and each Holder also agrees to
execute and deliver, customary lockup agreements in such form and for such time period up to ninety (90) days as may be requested by the managing underwriter; provided that each Holder shall not be required to execute and deliver any
lockup agreement different in form or substance as any lockup executed by the Company’s directors and senior executive officers. 
 3.10
Rule 144. With a view to making available to the Investor and Holders the benefits of certain rules and regulations of the SEC which may permit the sale of the Registrable Securities to the public without registration, the Company agrees to
use its reasonable best efforts to: 
 (a) make and keep public information available, as those terms are understood and defined in Rule
144(c)(1) or any similar or analogous rule promulgated under the Securities Act, at all times after the effective date of this Agreement; 

(b) file with the SEC, in a timely manner, all reports and other documents required of the Company under the Exchange Act; 

(c) so long as an Investor or a Holder owns any Registrable Securities, furnish to such Investor or such Holder forthwith upon request: a
written statement by the Company as to its compliance with the reporting requirements of Rule 144 under the Securities Act, and of the Exchange Act; a copy of the most recent annual or quarterly report of the Company; and such other reports and
documents as the Investor or Holder may reasonably request in availing itself of any rule or regulation of the SEC allowing it to sell any such securities without registration; and 

(d) take such further action as any Holder may reasonably request (including, without limitation (i) making its Chief Executive Officer
and Chief Financial Officer reasonably available to potential purchasers in a reasonable manner (by telephone where feasible) and except during periods when the Company has restricted access to investors in accordance with its Regulation FD
procedures and other policies and procedures required by applicable law; and (ii) executing a customary engagement letter that will provide for customary indemnification of a placement agent with respect to such placement), all to the extent
required from time to time to enable such Holder to sell Registrable Securities without registration under the Securities Act, and provided that the commission and fees for such placement shall be at the expense of the requesting Holder 

  
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 3.11 Definitions. As used in this Article III, the following
terms shall have the following respective meanings: 
 (a) “Holder” means the Investor and any other holder of Registrable
Securities to whom the registration rights conferred by this Agreement have been transferred in compliance with Section 3.8. 

(b) “Holders’ Counsel” means one counsel for the selling Holders chosen by Holders holding a majority interest in the
Registrable Securities being registered. 
 (c) “Permitted Black-out Period” means,
in the event that the Company determines in good faith that the registration would (x) reasonably be expected to materially adversely affect or materially interfere with any bona fide material financing of the Company or any material
transaction under consideration by the Company or (y) would require disclosure of material information that the Company has a bona fide business purpose for not disclosing and that has not been, and is not otherwise required to be, disclosed to
the public, a period of up to sixty (60) days; provided, that a Permitted Blackout Period described in this clause (ii) may not occur more than twice in any period of twelve (12) consecutive months. 

(d) “Register,” “registered,” and “registration” shall refer to a registration effected by
preparing and (a) filing a Registration Statement in compliance with the Securities Act and applicable rules and regulations thereunder, and the declaration or ordering of effectiveness of such Registration Statement or (b) filing a
prospectus and/or prospectus supplement in respect of an appropriate effective Registration Statement on Form S-3. 

(e) “Registrable Securities” means (A) all Company Common Stock held by the Holders from time to time and (B) any
equity securities issued or issuable directly or indirectly with respect to the securities referred to in the foregoing clause (A) by way of stock dividend or stock split or in connection with a combination of shares, recapitalization,
reclassification, merger, amalgamation, arrangement, consolidation or other reorganization, provided that, once issued, such securities will cease to constitute Registrable Securities upon the earliest to occur of (i) when they are sold
pursuant to an effective Registration Statement under the Securities Act, (ii) when they are sold pursuant to Rule 144 and the transferee thereof does not receive “restricted securities” as defined in Rule 144, (iii) when they
shall have ceased to be outstanding or (iv) when they have been sold in a private transaction in which the transferor’s rights under this Agreement are not assigned to the transferee of the securities; provided, however, that
any Registrable Security shall cease to be a Registrable Security at such time that (A) the holder thereof (together with its Affiliates) ceases to hold at least 5.0% of the outstanding Company Common Stock, (B) such Registrable Security
may be sold by the holder thereof pursuant to Rule 144 without limitation thereunder on volume or manner of sale or information requirements thereunder and (C) at least two years have elapsed since the Closing Date. No Registrable Securities
may be registered under more than one Registration Statement at one time. 
 (f) “Registration Expenses” means all expenses
incurred by the Company in effecting any registration pursuant to this Agreement (whether or not any registration or prospectus becomes effective or final) or otherwise complying with its obligations under this Article III,
including all registration, filing and listing fees, printing expenses, fees and disbursements of counsel for the Company, blue sky fees and expenses, expenses incurred by the Company in connection with any “road show,” the reasonable fees
and disbursements of Holders’ Counsel, and expenses of the Company’s independent accountants in connection with any regular or special reviews or audits incident to or required by any such registration, but shall not include Selling
Expenses and the compensation of regular employees of the Company, which shall be paid in any event by the Company. 

  
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 (g) “Rule 144,” “Rule 144A,” “Rule 158,”
“Rule 159A,” “Rule 405” and “Rule 415” mean, in each case, such rule promulgated under the Securities Act (or any successor provision), as the same shall be amended from time to time. 

(h) “Selling Expenses” means all discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable
Securities and fees and disbursements of counsel for any Holder (other than the fees and disbursements of Holders’ Counsel included in Registration Expenses). 

3.12 Voluntary Forfeiture. At any time, any holder of Registrable Securities (including any Holder) may elect to forfeit its rights set
forth in this Article III from that date forward; provided, that a Holder forfeiting such rights shall nonetheless be entitled to participate under Sections 3.1(d)-(f) in any Pending Underwritten Offering to
the same extent that such Holder would have been entitled to if the holder had not withdrawn; and provided, further, that no such forfeiture shall terminate a Holder’s rights or obligations under
Section 3.5 with respect to any prior registration or Pending Underwritten Offering. “Pending Underwritten Offering” means, with respect to any Holder forfeiting its rights pursuant to this
Section 3.12, any underwritten offering of Registrable Securities in which such Holder has advised the Company of its intent to register its Registrable Securities either pursuant to Section 3.1(b)
or 3.1(d) prior to the date of such Holder’s forfeiture. In addition, Investor or any other Holder may deliver written notice (an “Opt-Out Notice”) to the Company requesting that
such Investor or Holder not receive notice from the Corporation of any proposed Underwritten Offering; provided, however, that Investor or other Holder, as applicable, may later revoke any such
Opt-Out Notice in writing. Following receipt of an Opt-Out Notice from Investor or other Holder (unless subsequently revoked), the Company shall not, and shall not be
required to, deliver any notice to Investor or such other Holder, as applicable, pursuant to Section 3.1. 

ARTICLE IV 
 DEFINITIONS 

4.1 Defined Terms. Capitalized terms when used in this Agreement have the following meanings: 

“Action” means any claim, action, suit, arbitration, litigation or proceeding. 

“Affiliate” means, with respect to any Person, any Person who directly or indirectly Controls, is Controlled by, or is under
common Control with the specified Person. Notwithstanding the foregoing, the Company shall be deemed to not be an Affiliate of the Fund and the Investor for purposes of this Agreement. 

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

“ATM Offering” has the meaning set forth in Section 2.4. 

  
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 “Beneficially Own” with respect to any securities shall mean having
“beneficial ownership” of such securities (as determined pursuant to Rule 13d-3 under the Exchange Act without giving effect to the sixty (60)-day limitation
on determining beneficial ownership contained in Rule 13d-3(d)), including pursuant to any agreement, arrangement or understanding, whether or not in writing. 

“Board” has the meaning set forth in Section 1.1. 

“Board Designation Expiration Date” means the earlier of (i) the date on which the Investor Percentage Interest is less
than 10% and (ii) the date on which this Agreement is validly terminated pursuant to Section 5.1. 

“Board Representative” has the meaning set forth in Section 1.4. 

“Business Day” means any day on which banks are not required or authorized to close in the City of New York. 

“Change of Control Transaction” means the existence or occurrence of any of the following: (a) the sale, conveyance or
disposition of all or substantially all of the assets of the Company; (b) the consolidation, merger or other business combination of the Company with or into any other entity, immediately following which the then current stockholders of the
Company fail to own, directly or indirectly, at least Majority Voting Power; (c) a transaction or series of transactions in which any person or “group” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) acquires
Majority Voting Power (other than (i) a reincorporation or similar corporate transaction in which the Company’s stockholders own, immediately thereafter, interests in the new parent company in essentially the same percentage as they owned
in the Company immediately prior to such transaction, or (ii) a transaction described in clause (b) (such as a triangular merger) in which the threshold in clause (b) is not passed) or (d) the replacement of a majority of the Board of
Directors with individuals who were not nominated or elected by at least a majority of the directors at the time of such replacement. 

“Closing” has the meaning set forth in the Merger Agreement. 

“Closing Date” has the meaning set forth in the Merger Agreement. 

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

“Company Common Stock” has the meaning set forth in the recitals. 

“Company Competitor” means (a) any Person listed on Exhibit A hereto, or any Controlled Affiliate thereof or
(b) (1) any Person whose primary business is oil and natural gas exploration and development in the Denver-Julesburg Basin or (2) any Affiliate of such Person (other than (i) a private equity or similar firm that Controls the Person
described in clause (b)(1) and (ii) such private equity or similar firm’s Affiliates, other than such Person and its Controlled Affiliates). 

“Company Non-Affiliate Approval” means the approval of a majority of the total number
of Non-Affiliated Directors. 

  
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 “Control” means the possession, directly or indirectly, of the power to direct
or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 

“DGCL” means the General Corporation Law of the State of Delaware, as amended. 

“Effective Time” has the meaning set forth in the Merger Agreement. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Existing Credit Facility” means that certain Third Amended and Restated Credit Agreement, dated as of March 16, 2010,
by among Bill Barrett Corporation, the financial institutions from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent, as amended, restated, supplemented or otherwise modified. 

“Form S-3” has the meaning set forth in Section 3.1(b).

 “Governance Committee” has the meaning set forth in Section 2.4. 

“Group” has the meaning assigned to such term in Section 13(d)(3) of the Exchange Act. 

“Indebtedness” means all indebtedness, liabilities and obligations, now existing or hereafter arising, for money borrowed by
a Person, or any contingent liability for or guaranty by a Person of any obligation of any other Person (including the pledge of any collateral or grant of any security interest by a Person in any property as security for any such liability,
guaranty or obligation) whether or not any of the foregoing is evidenced by any note, indenture, guaranty or agreement, but excluding all trade payables incurred in the ordinary course of business. 

“Indemnified Party” has the meaning set forth in Section 3.7(c). 

“Indemnifying Party” has the meaning set forth in Section 3.7(c). 

“Indemnitee” has the meaning set forth in Section 3.7(a). 

“Independent Director” means a director who (i) is not an officer, director, principal, managing partner or employee of
the Investor or the Fund or any of its Affiliates or any spouse, parent, child or sibling of any of the foregoing, (ii) would qualify as an “Independent Director” pursuant to the listing standards of the NYSE, or, if the Company Common
Stock is not then listed for trading on the NYSE, pursuant to the rules of the national securities exchange on which the Company Common Stock is then listed or trading, with respect 

  
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to the Company, and (iii) receives no compensation from the Fund, the Investor or any Affiliate thereof for or related to his or her service as a director of the Company and such
Person’s actual investment in the Fund does not exceed $1 million during such director’s service as a director of the Company. 

“Investor” has the meaning set forth in the recitals hereto, provided that, for the avoidance of doubt, any transferee of
securities of the Company that is required to enter into, or enters into, a joinder agreeing to be bound by the terms of Sections 2.1, 2.2 and 2.5 of this Agreement applicable to Investors shall be deemed to be an Investor for
purposes of Sections 2.1, 2.2 and 2.5 of this Agreement. 
 “Investor Director Number” means the
number of Board Representatives that the Investor is at such time (or would then be if an Election Meeting were to be held at such time) entitled to designate pursuant to Section 1.1(b)(i). 

“Investor Percentage Interest” means, as of any date of determination, the percentage represented by the quotient of
(i) the number of Voting Securities that are then-Beneficially Owned by the Investor and its Affiliates and (ii) the number of all then-outstanding Voting Securities. 

“Law” means any applicable federal, state, local, foreign or international law, statute, code, ordinance, order, rule, rule
of common law, regulation, judgment, decree, injunction or treaty. 
 “Losses” means all losses, costs, interest, charges,
expenses (including reasonable attorneys’ fees), obligations, liabilities, settlement payments, awards, judgments, fines, penalties, damages, assessments or deficiencies. 

“Majority Voting Power” of the Company means a majority of the ordinary voting power in the election of directors of all the
outstanding Voting Securities of the Company. 
 “Mergers” has the meaning set forth in the recitals. 

“Merger Agreement” has the meaning set forth in the recitals. 

“Nominated Non-Investor Directors” has the meaning set forth in
Section 2.5. 
 “Non-Affiliated Directors” means a
director who qualifies as “independent” under the rules of the NYSE or the rules of such other national securities exchange on which the Company Common Stock is then listed or trading and who is not a Board Representative. 

“Non-Investor Director” means a director who is not a Board Representative. 

“NYSE” has the meaning set forth in Section 2.3(e). 

“Pending Underwritten Offering” has the meaning set forth in Section 3.12. 

“Permitted Transferee” means (i) any Affiliate of the Investor and (ii) any holder of membership interests in the
Investor and each of such holders’ direct and indirect equity holders. 
 “Person” means an individual, a partnership,
a joint venture, a corporation, a limited liability company, a trust, an unincorporated organization or a government or department or agency thereof. 

  
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 “Piggyback Registration” has the meaning set forth in
Section 3.1(d). 
 “Pro Rata Portion” means, with respect to the Investor, on any issuance date
for New Securities, the number of New Securities equal to the product of (i) the total number of New Securities to be issued by the Company on such date and (ii) the Investor Percentage Interest, determined immediately prior to such
issuance date. 
 “Registration Statement” means the prospectus and other documents filed with the SEC to effect a
registration under the Securities Act. 
 “Representatives” has the meaning set forth in the Merger Agreement. 

“SEC” means the U.S. Securities and Exchange Commission. 

“Securities Act” means the Securities Act of 1933, as amended. 

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

“Shelf Registration Statement” has the meaning set forth in Section 3.1(b). 

“Special Registration” has the meaning set forth in Section 3.1(d). 

“Subsidiary” means, with respect to any Person, another Person, (a) an amount of the voting securities, other voting
ownership or voting partnership interests of which is sufficient to elect at least a majority of its board of directors or other governing Person or body or (b) more than fifty (50%) percent of the equity interests of which is owned directly or
indirectly by such first Person. 
 “Sunset Date” means the earlier of: (i) the last day of the first period of six
continuous months during which the Investor Percentage Interest is less than 20% and (ii) the last day of the first period of six continuous months ending on or after the fifth (5th)
anniversary of the Closing Date during which the Investor Percentage Interest is less than 30%. 
 “Transfer” means
(i) any direct or indirect offer, sale, lease, assignment, encumbrance, pledge, hypothecation, disposition or other transfer (by operation of law or otherwise), either voluntary or involuntary, or entry into any contract, option or other
arrangement or understanding with respect to any offer, sale, lease, assignment, encumbrance, pledge, hypothecation, disposition or other transfer (by operation of law or otherwise), of any capital stock or interest in any capital stock or
(ii) in respect of any capital stock or interest in any capital stock, to enter into any swap or any other agreement, transaction or series of transactions that hedges or transfers, in whole or in part, directly or indirectly, the economic
consequence of such ownership of such capital stock or interest in capital stock, whether any such transaction, swap or series of transactions is to be settled by delivery of securities, in cash or otherwise. Notwithstanding anything to the contrary
in this Agreement, a sale, transfer or other change in the ownership of any equity interests in a Person shall not be deemed to result in the Transfer of capital stock or any interest in capital stock held by such Person unless such sale, transfer
or other change in ownership results in a change of Control of such Person. 

  
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 “Underwritten Shelf Take-Down” has the meaning set forth in
Section 3.1(b). 
 “Voting Securities” means shares of Company Common Stock and any other
securities of the Company entitled to vote generally at any annual or special meeting of the Company’s stockholders. 
 4.2 Terms
Generally. The words “hereby,” “herein,” “hereof,” “hereunder” and words of similar import refer to this Agreement as a whole and not merely to the specific section, paragraph or clause in which such word
appears. All references herein to Articles and Sections shall be deemed references to Articles and Sections of this Agreement unless the context shall otherwise require. The words “include,” “includes” and “including”
shall be deemed to be followed by the phrase “without limitation.” References to “$” or “dollars” means United States dollars. The definitions given for terms in this Article IV and elsewhere
in this Agreement shall apply equally to both the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. References herein to any agreement
or letter (including the Merger Agreement) shall be deemed references to such agreement or letter as it may be amended, restated or otherwise revised from time to time. If, and as often as, there is any change in the outstanding shares of Company
Common Stock by reason of a share dividend or distribution, or stock split or other subdivision, or in connection with a combination of stock, recapitalization, reclassification, merger, amalgamation, arrangement, consolidation or other
reorganization or other similar capital transaction, appropriate anti-dilution adjustments will be made in the provisions of this Agreement so as to fairly and equitably preserve the rights and obligations set forth herein. 

ARTICLE V 
 MISCELLANEOUS 

5.1 Term. This Agreement will be effective as of the Closing Date and, except as otherwise set forth herein will continue in effect
thereafter until the earlier of (a) the time when no shares of Company Common Stock are held by the Investor or any other Holder and (b) its termination by the consent of all parties hereto or their respective successors in interest. 

5.2 Representations and Warranties. Each party hereto hereby represents and warrants to each other party to this Agreement that as of
the date such party executes this Agreement: (a) it is duly organized, validly existing and in good standing under the Laws of the jurisdiction of its organization; (b) this Agreement has been duly and validly executed and delivered by
such party and this Agreement constitutes a legal and binding obligation of such party , enforceable against the such party in accordance with its terms; (c) the execution, delivery and performance by such party of this Agreement and the
consummation by such party of the transactions contemplated hereby will not, with or without the giving of notice or lapse of time, or both (i) violate any Law applicable to it, or (ii) conflict with, or result in a breach or default
under, any term or condition of any agreement or other instrument to which such party is a party or by which such party is bound, except for such violations, conflicts, breaches or defaults that would not, in the aggregate, materially affect such
party’s ability to perform its obligations hereunder. The Investor hereby represents and warrants to the Company that: (i) is acquiring its shares of Company Common Stock for its own account, solely for investment and not with a view
toward, or for sale in connection with, any distribution thereof in violation of any federal or 

  
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state securities or “blue sky” laws, or with any present intention of distributing or selling such shares of Company Common Stock in violation of any such laws, (ii) has such
knowledge and experience in financial and business matters and in investments of this type that it is capable of evaluating the merits and risks of its investment in the shares of Company Common Stock and of making an informed investment decision
and (iii) is an “accredited investor” within the meaning of Rule 501 of Regulation D under the Securities Act. 
 5.3
Legends; Securities Act Compliance. 
 (a) A copy of this Agreement shall be filed with the Secretary of the Company and kept with the
records of the Company. Each Holder agrees that all certificates, book entry shares or other instruments representing such Shares will bear a legend substantially in to the following effect: 

THE SECURITIES EVIDENCED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENTS FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO IT THAT THE SECURITIES MAY BE SOLD PURSUANT TO RULE 144 OR
ANOTHER AVAILABLE EXEMPTION UNDER THE SECURITIES ACT AND THE RULES AND REGULATIONS THEREUNDER. THE SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO A STOCKHOLDERS AGREEMENT WITH CERTAIN RESTRICTIONS ON TRANSFER, COPIES OF WHICH MAY BE
OBTAINED FROM THE COMPANY OR FROM THE HOLDER OF THIS CERTIFICATE. ANY ATTEMPTED TRANSFER OR DISPOSITION OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IN VIOLATION OF THE STOCKHOLDERS’ AGREEMENT SHALL BE NULL, VOID AND OF NO EFFECT. 

(b) Notwithstanding Section 5.3(a), at the request of the Investor or other applicable Holder, (i) at such time
as the restrictions described in the foregoing are no longer applicable to the Investor or such other Holder and (ii) with respect to restrictions that refer to the Securities Act or other Laws, upon receipt by the Company of an opinion of
counsel to the effect that the first sentence of the foregoing legend is no longer required under the Securities Act or other Laws, as the case may be, the Company will promptly cause such legend to be removed from any certificate or book entry
share for any Shares held by the Investor or such other Holder. 
 5.4 No Inconsistent Agreements. The Company will not hereafter
enter into any agreement with respect to its securities that violates or is inconsistent or conflicts with the rights granted to the holders of Registrable Securities in this Agreement. 

  
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 5.5 Amendments and Waivers. Except as otherwise provided herein, the provisions of this
Agreement may be amended or waived only upon the prior written consent of (i) the Company by Company Non-Affiliate Approval and (ii) the Investor. No failure or delay by any party in exercising any
right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies
herein provided shall be cumulative and not exclusive of any rights or remedies provided by applicable law. 
 5.6 Successors and
Assigns. Except as set forth in Section 3.8, neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto, in whole or in part (whether by operation of
law or otherwise), without the prior written consent of the other party; provided, however, that the Investor may assign it rights under (i) Article I to any Affiliate of the Investor; provided
that such Affiliate (x) has executed a customary joinder to this Agreement, in form and substance reasonably acceptable to the Company, in which such Affiliate agrees to be subject to the terms and conditions of this Agreement applicable to the
Investor and (y) remains an Affiliate of the Fund for so long as Article I remains in Effect; provided, further, that no more than one Person shall be entitled to exercise the rights of the Investor under
Article I at any time, and (ii) Section 2.3, in whole or in part, to any Affiliate of the Investor, provided that such Affiliate (x) has executed a customary joinder to this Agreement, in
form and substance reasonably acceptable to the Company, in which such Affiliate agrees to be subject to the terms and conditions of this Agreement applicable to the Investor and (y) remains an Affiliate of the Fund for so long as
Section 2.3 remains in effect. This Agreement will be binding upon, inure to the benefit of and be enforceable by the parties and their respective permitted successors and assigns. Any attempted assignment in violation of
this Section 5.6 shall be void. 
 5.7 Severability. Whenever possible, each provision of this Agreement
will be interpreted in such manner as to be effective and valid under Law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity,
illegality or unenforceability will not affect any other provision or the effectiveness or validity of any provision in any other jurisdiction, and this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein. 
 5.8 Counterparts. This Agreement may be executed in two or more
counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each of the parties and delivered to the other parties, it being understood that each party need not sign the
same counterpart. 
 5.9 Entire Agreement. This Agreement (including the documents and the instruments referred to in this Agreement),
together with the Merger Agreement, constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, between the parties with respect to the subject matter of this Agreement. 

5.10 Governing Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the Laws of the state of Delaware
applicable to contracts executed and to be performed wholly within such State and without reference to the choice or conflict of law principles (whether of the state of Delaware or any other jurisdiction) that would result in the application of the
Laws of a different jurisdiction. Each party hereto irrevocably submits to the 

  
 -31- 

 
jurisdiction of the Court of Chancery of the state of Delaware (or solely if such courts decline jurisdiction in any federal court located in the state of Delaware) any Action arising out of or
relating to this Agreement, and hereby irrevocably agrees that all claims in respect of such Action may be heard and determined in such court. Each party hereto hereby irrevocably waives, and agrees not to assert by way of motion, defense,
counterclaim, or otherwise, the defense of an inconvenient forum to the maintenance of such Action. The parties hereto further agree, (i) to the extent permitted by Law, that final and nonappealable judgment against any of them in any Action
contemplated above shall be conclusive and may be enforced in any other jurisdiction within or outside the United States by suit on the judgment, a certified copy of which shall be conclusive evidence of the fact and amount of such judgment and
(ii) that service of process upon such party in any such action or proceeding shall be effective if notice is given in accordance with Section 5.14. 

5.11 Waiver of Jury Trial. Each party hereto knowingly, intentionally, and voluntarily waives to the fullest extent permitted by
applicable Law trial by jury in any action, proceeding or counterclaim brought by any of them against the other arising out of or in any way connected with this Agreement, or any other agreements executed in connection herewith or the administration
thereof or any of the transactions contemplated herein or therein. No party hereto shall seek a jury trial in any lawsuit, proceeding, counterclaim or any other litigation procedure based upon, or arising out of, this Agreement or any related
instruments or the relationship between the parties hereto. No party hereto will seek to consolidate any such action in which a jury trial has been waived with any other action in which a jury trial cannot be or has not been waived. Each party
hereto certifies that it has been induced to enter into this agreement or instrument by, among other things, the mutual waivers and certifications set forth above in this Section 5.11. No party hereto has in any way agreed
with or represented to any other party that the provisions of this Section 5.11 will not be fully enforced in all instances. 

5.12 Specific Performance. The parties hereto agree that irreparable damage would occur if any provision of this Agreement were not
performed in accordance with the terms hereof and that, except as otherwise provided in Section 5.10, the parties shall be entitled to an injunction or injunctions or other equitable relief to prevent breaches of this
Agreement or to enforce specifically the performance of the terms and provisions hereof in any court set forth in Section 5.10, in addition to any other remedy to which they are entitled at law or in equity. 

5.13 No Third-Party Beneficiaries. Nothing in this Agreement shall confer any rights upon any Person other than the parties hereto and
each such party’s respective heirs, successors and permitted assigns, all of whom shall be third-party beneficiaries of this Agreement; provided that (i) any Person (other than the Investors) that becomes an Investor shall be an
intended third-party beneficiary hereof and (ii) the Persons indemnified under Article III are intended third-party beneficiaries of Article III. 

5.14 Notices. All notices and other communications to be given to any party hereunder shall be sufficiently given for all purposes
hereunder if in writing and upon delivery if delivered by hand, one Business Day after being sent by courier or overnight delivery service, three (3) Business Days after being mailed by certified or registered mail, return receipt requested,
with appropriate postage prepaid, or when sent in the form of a facsimile or e-mail and receipt confirmation is received, and shall be directed to the address, facsimile number or e-mail set forth below (or at such other address or facsimile number as such party shall designate by like notice): 

  
 -32- 

 If to the Company, to: 

HighPoint Resources Corporation 

1099 18th Street, Suite 2300 

Denver, CO 80202 
 Attention:
      William M. Crawford 

                       
 Kenneth A. Wonstolen 
 E-mail:
           bcrawford@hpres.com 

                       
 kwonstolen@hpres.com 
 with a copy (which shall not constitute notice) to: 

Wachtell, Lipton, Rosen & Katz 

51 West 52nd Street 
 New York,
New York 10019 
 Attention:         Mark Gordon 

E-mail:             MGordon@wlrk.com 

If to the Investor, to: 
 Fifth
Creek Energy Company, LLC 
 c/o NGP Natural Resources XI, L.P. 

5221 N. O’Connor Blvd., 11th Floor 

Irving, TX 75039 
 Attention:
        Jeffrey A. Zlotky 
 E-mail:
            jzlotky@ngptrs.com 
 with a copy (which shall not constitute notice)
to: 
 Vinson & Elkins LLP 

1001 Fannin Street, Suite 2500 

Houston, Texas 77002 

Attention:         Douglas E. McWilliams 

E-mail:             DMcWilliams@velaw.com

 If to the Fund, to: 
 NGP
Natural Resources XI, L.P. 
 5221 N. O’Connor Blvd., 11th Floor 

Irving, TX 75039 
 Attention:
        Jeffrey A. Zlotky 
 E-mail:
            jzlotky@ngptrs.com 
 [The remainder of this page left
intentionally blank.] 

  
 -33- 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement by their authorized
representatives as of the date first above written. 
  

					
	HighPoint Resources Corporation
		
	By:	 	 /s/ R. Scot Woodall

		 	Name:	 	R. Scot Woodall
		 	Title:	 	President and Chief Executive
		 		 	Officer

 [Signature Page to Stockholders Agreement] 

 
					
	Fifth Creek Energy Company, LLC
		
	By:	 	 /s/ Michael Starzer

		 	Name:	 	Michael Starzer
		 	Title:	 	Authorized Person

 [Signature Page to Stockholders Agreement] 

 
					
	NGP Natural Resources XI, L.P.
		
	By:	 	 /s/ Tony R. Weber

		 	Name:	 	Tony R. Weber
		 	Title:	 	Authorized Person

 [Signature Page to Stockholders Agreement] 

 Exhibit A 

Initial Company Directors 

Board Representatives 
  

	 	•	 	Scott Gieselman 

  

	 	•	 	Craig Glick 

  

	 	•	 	Michael Starzer 

  

	 	•	 	Mark S. Berg 

  

	 	•	 	Andrew C. Kidd 

 Non-Investor Directors 

 

	 	•	 	Jim W. Mogg 

  

	 	•	 	William F. Owens 

  

	 	•	 	Edmund P. Segner 

  

	 	•	 	Randy I. Stein 

  

	 	•	 	Michael E. Wiley 

  

	 	•	 	R. Scot Woodall 

  
 A-1 

 Exhibit B 

Company Competitors 
 Approach
Resources, Inc. 
 Anadarko Petroleum Corporation 
 Bayswater
Exploration and Production, LLC 
 Bonanza Creek Energy, Inc. 

Callon Petroleum Company 
 Carrizo Oil & Gas, Inc. 

Clayton Williams Energy, Inc. 
 Comstock Resources, Inc. 

Confluence Energy, LLC 
 Crestone Peak Resources 

EOG Resources, Inc. 
 EXCO Resources, Inc. 

Jones Energy, Inc. 
 Laredo Petroleum, Inc. 

Matador Resources Company 
 Noble Energy Inc. 

PDC Energy, Inc. 
 Resolute Energy Corporation 

RSP Permian, Inc. 
 Samson Energy Company, LLC 

Sanchez Energy Corporation 
 Sandridge Energy, Inc. 

Synergy Resources Corporation 
 Verdad Oil & Gas
Corporation 
 Whiting Petroleum Corporation 

  
 B-1Exhibit 10.1

 

 

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of this 15th day of March 2018 (the “Commencement Date”), by and between Mueller Industries, Inc., a Delaware corporation (the “Company”), and Gregory L. Christopher (“Executive”).

W I T N E S S E T H :

WHEREAS, Executive is currently employed by the Company as its Chief Executive Officer; and

WHEREAS, Executive is a party to an employment agreement with the Company, dated October 30, 2008, and amended as of February 14, 2013 and July 26, 2016 (the “Prior Agreement”); and

WHEREAS, the Company desires to continue to employ Executive as its Chief Executive Officer and to enter into this Agreement embodying the terms of such employment, and Executive desires to enter into this Agreement and to accept such continuing employment, subject to the terms and provisions of this Agreement.

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are mutually acknowledged, the Company and Executive hereby agree as follows:

Section 1.          Definitions.

(a)          “AAA” shall have the meaning set forth in Section 19(b) hereof.

(b)          “Accounting Firm” shall have the meaning set forth in Section 14(b)(i) hereof.

(c)          “Accrued Obligations” shall mean (i) all accrued but unpaid Base Salary through the date of termination of Executive’s employment, (ii) any unpaid or unreimbursed expenses incurred in accordance with Section 7 hereof, and (iii) any benefits provided under the Company’s employee benefit plans upon a termination of employment (excluding any employee benefit plan providing for severance or similar benefits), in accordance with the terms contained therein.

(d)          “Agreement” shall have the meaning set forth in the preamble hereto.

(e)          “Annual Bonus” shall have the meaning set forth in Section 4(b) hereof.

(f)           “Base Salary” shall mean the salary provided for in Section 4(a) hereof or any increased salary granted to Executive pursuant to Section 4(a) hereof.

(g)          “Board” shall mean the Board of Directors of the Company.

(h)          “Cause” shall mean (i) Executive’s willful and continued failure to substantially perform Executive’s duties hereunder, (ii) the engaging by Executive in willful misconduct 

 

which is demonstrably and materially injurious to the Company, or (iii) Executive’s conviction of a felony for a crime of moral turpitude.  For purposes hereof, no act, or failure to act on Executive’s part shall be considered “willful” unless done, or omitted to be done, by him not in good faith and without reasonable belief that his action or omission was in the best interest of the Company.

(i)          “Change in Control” shall have the meaning set forth in the Company’s 2014 Incentive Plan, as in effect on the date hereof.

(j)          “Code” shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

(k)         “Commencement Date” shall have the meaning set forth in the preamble hereto.

(l)           “Company” shall have the meaning set forth in the preamble hereto.

(m)         “Company Group” shall mean the Company together with any direct or indirect subsidiaries of the Company.

(n)          “Compensation Committee” shall mean the Compensation and Stock Option Committee of the Board.

(o)          “Continuation Period” shall mean the thirty six (36) month period following the termination of Executive’s employment either by the Company without Cause (other than by reason of death or Disability) or by Executive for Good Reason.

(p)          “Covered Payments” shall have the meaning set forth in Section 14(a) hereof.

(q)          “Delay Period” shall have the meaning set forth in Section 13 hereof.

(r)           “Disability” shall mean any physical or mental disability or infirmity of Executive that prevents the performance of Executive’s duties for a period of (i) one hundred eighty (180) consecutive days or (ii) two hundred (200) non-consecutive days during any twelve (12) month period.  Any question as to the existence, extent, or potentiality of Executive’s Disability upon which Executive and the Company cannot agree shall be determined by a qualified, independent physician selected by the Company and approved by Executive (which approval shall not be unreasonably withheld).  The determination of any such physician shall be final and conclusive for all purposes of this Agreement.

(s)          “Executive” shall have the meaning set forth in the preamble hereto.

(t)          “Excess Payment” shall have the meaning set forth in Section 14(b)(iv) hereof.

(u)          “Excise Tax” shall have the meaning set forth in Section 14(a) hereof.

(v)          “Good Reason” shall mean, without Executive’s consent, (i) a failure by the Company to comply with any material provision of this Agreement which has not been cured within ten (10) days after notice of such noncompliance has been given by Executive to the 

 

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Company, (ii) the assignment to Executive by the Company of duties inconsistent with Executive’s position, authority, duties, responsibilities or status with the Company as in effect immediately after the Commencement Date, including, but not limited to, any reduction in such position, authority, duties, responsibilities or status, or a change in Executive’s titles or offices, as then in effect, or any removal of the Executive from, or any failure to re-elect the Executive to, any of such positions, except in connection with the termination of his employment on account of his death, Disability, or for Cause, (iii) the requirement of excessive travel on the part of Executive, (iv) a relocation by the Company of Executive’s principal place of employment to any location outside a thirty (30) mile radius from the Executive’s current principal place of employment, (v) the failure of the Company to have any successor to the Company assume the Agreement, or (vi) the delivery to Executive of notice of the Company’s decision to terminate Executive’s employment without Cause.

(w)          “Medical Benefits” shall mean, (i) to the extent permitted by applicable law without any penalty to Executive or any member of the Company Group, and to the extent permitted under the terms and provisions of the applicable plans, continued participation, at the Company’s expense, for Executive and Executive’s spouse and covered dependents, in the Company’s health, major medical, hospitalization and dental insurance plans as are generally made available to other senior executives of the Company from time to time until the latest to occur of (x) the date Executive reaches age seventy (70), (y) the date Executive’s spouse reaches age seventy (70), or (z) the third (3rd) anniversary of the date of Executive’s termination of employment, or (ii) to the extent the continued participation contemplated by clause (i) above is not permitted under applicable law or the terms and provisions of the applicable plans, the Company shall use reasonable best efforts to provide Executive and Executive’s spouse and dependents, with substantially equivalent continued coverage at the Company’s expense, whether by purchasing individual coverage, providing cash payments, a combination of both or otherwise.

(x)          “Parachute Payment” shall have the meaning set forth in Section 14(a) hereof.

(y)          “Person” shall mean any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust (charitable or non-charitable), unincorporated organization, or other form of business entity.

(z)          “Pro Rata Bonus” shall have the meaning set forth in Section 8(b)(iii) hereof.

(aa)          “Protected Period” shall mean the twenty-four (24) month period following the consummation of a Change in Control.

(bb)          “Prior Agreement” shall have the meaning set forth in the recitals hereto.

(cc)          “Prior Year Bonus” shall have the meaning set forth in Section 8(b)(ii) hereof.

(dd)          “Reduced Amount” shall have the meaning set forth in Section 14(a) hereof.

(ee)          “Release of Claims” shall mean the Release of Claims in substantially the same form attached hereto as Exhibit A (as the same may be revised from time to time by the Company on the advice of counsel).

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(ff)          “Restrictive Covenant Agreements” shall mean the Employee Non-Competition Agreement attached hereto as Exhibit B, and the Employee Confidentiality and Non-Solicitation Agreement attached hereto as Exhibit C.

(gg)          “Rules” shall have the meaning set forth in Section 19(b) hereof.

(hh)          “Safe Harbor Amount” shall have the meaning set forth in Section 14 hereof.

(ii)            “Severance Benefits” shall have the meaning set forth in Section 8(g) hereof.

(jj)           “Target Bonus” shall have the meaning set forth in Section 4(b) hereof.

(kk)         “Temporary Injunctive Relief” shall have the meaning set forth in Section 19(b) hereof.

(ll)            “Term” shall mean the period specified in Section 2 hereof.

(mm)         “Underpayment” shall have the meaning set forth in Section 14(b)(iv) hereof.

Section 3.          Position, Duties, and Responsibilities; Place of Performance.

(a)          Position, Duties, and Responsibilities.  During the Term, Executive shall be employed and serve as the Chief Executive Officer of the Company and shall have such duties and responsibilities commensurate with such title; provided, that, in the event of a restructuring, Change in Control or other corporate event following which the Company (or its successor) is a subsidiary of another entity, Executive shall, from and after the consummation of such event, be the Chief Executive Officer of ultimate parent of the Company (i.e., of the top-tier holding company through which the ultimate shareholders hold their indirect interests in the Company) and all references to the Board herein shall thereinafter refer to the Board of such parent entity.  At all times during the Term, Executive shall report directly to the full Board.  Executive also agrees to serve as an officer and/or director of any other member of the Company Group, in each case without additional compensation.

(b)          Performance.  Executive shall devote Executive’s full business time, attention, skill, and best efforts to the performance of Executive’s duties under this Agreement and shall not engage in any other business or occupation during the Term, including, without limitation, any activity that (x) conflicts with the interests of the Company or any other member of the Company Group, (y) interferes with the proper and efficient performance of Executive’s duties for the Company, or (z) interferes with Executive’s exercise of judgment in the Company’s best interests.  Notwithstanding the foregoing, nothing herein shall preclude Executive from (i) serving, with the prior written consent of the Board, as a member of the boards of directors or 

 

4

advisory boards (or their equivalents in the case of a non-corporate entity) of non-competing businesses and charitable organizations, (ii) engaging in charitable activities and community affairs, and (iii) managing Executive’s personal investments and affairs; provided, however, that the activities set out in clauses (i), (ii), and (iii) shall be limited by Executive so as not to materially interfere, individually or in the aggregate, with the performance of Executive’s duties and responsibilities hereunder or create a potential business or fiduciary conflict.

Section 4.          Compensation.

During the Term, Executive shall be entitled to the following compensation:

(a)          Base Salary.  Executive shall be paid an annualized Base Salary, payable in accordance with the regular payroll practices of the Company, of not less than $1,100,000, with increases, if any, as may be approved in writing by the Compensation Committee; provided, that the Compensation Committee shall review Executive’s Base Salary from time to time, but no less than annually, during the Term, and shall adjust Executive’s Base Salary upward at a rate commensurate with increases granted to other senior executives of the Company.

(b)          Annual Bonus. Executive shall be eligible for an annual incentive bonus award determined by the Compensation Committee in respect of each fiscal year during the Term (the “Annual Bonus”).  The target Annual Bonus for each fiscal year shall be 125% of Base Salary (the “Target Bonus”), at 100% achievement of the applicable annual Company and individual performance objectives for such fiscal year, and the maximum Annual Bonus for each fiscal year shall be 250% of Base Salary, at 125% or more achievement of the applicable annual Company and individual performance objectives for such fiscal year, with the actual Annual Bonus payable being based upon the level of achievement of annual Company and individual performance objectives for such fiscal year, as determined by the Compensation Committee and communicated to Executive.  In the event that achievement of annual Company and individual performance objectives for a given fiscal year is 80% or less, Executive shall not be eligible for an Annual Bonus for such fiscal year; provided that notwithstanding anything in this Section 4(b) to the contrary, the Compensation Committee shall have discretion whether or not to award Executive a discretionary bonus at any time.  The Annual Bonus shall be paid to Executive at the same time as annual bonuses are generally payable to other senior executives of the Company (but in no event later the date that is two and one-half (21⁄2) months following the last day of the fiscal year to which the Annual Bonus relates) subject to Executive’s continuous employment through the payment date except as otherwise provided for in this Agreement.

(c)          Term Life Insurance.  During the Term, the Company shall maintain, at its sole cost and expense, a term life insurance policy for Executive with a face value of at least five million dollars ($5 million).  Executive shall have the right to name the beneficiary of such term life insurance policy.

Section 5.          Employee Benefits.

During the Term, Executive shall be entitled to participate in health, insurance, retirement, and other benefits provided generally to similarly situated executives of the Company.  Executive shall also be entitled to the same number of holidays, vacation days, and 

 

5

sick days, as well as any other benefits, in each case as are generally allowed to similarly situated executives of the Company in accordance with the Company policy as in effect from time to time.  Nothing contained herein shall be construed to limit the Company’s ability to amend, suspend, or terminate any employee benefit plan or policy at any time without providing Executive notice, and the right to do so is expressly reserved.

Section 6.          Key-Man Insurance.

At any time during the Term, the Company shall have the right to insure the life of Executive for the sole benefit of the Company, in such amounts, and with such terms, as it may determine.  All premiums payable thereon shall be the obligation of the Company.  Executive shall have no interest in any such policy, but agrees to cooperate with the Company in procuring such insurance by submitting to physical examinations, supplying all information required by the insurance company, and executing all necessary documents, provided that no financial obligation is imposed on Executive by any such documents.

Section 7.          Reimbursement of Business Expenses.

During the Term, the Company shall pay (or promptly reimburse Executive) for documented, out-of-pocket expenses reasonably incurred by Executive in the course of performing Executive’s duties and responsibilities hereunder, which are consistent with the Company’s policies in effect from time to time with respect to business expenses, subject to the Company’s requirements with respect to reporting of such expenses.

Section 8.          Termination of Employment.

(a)          General.  The Term shall terminate earlier than as provided in Section 2 hereof upon the earliest to occur of (i) Executive’s death, (ii) a termination by reason of a Disability, (iii) a termination by the Company with or without Cause, and (iv) a termination by Executive with or without Good Reason.  Upon any termination of Executive’s employment for any reason, except as may otherwise be requested by the Company in writing and agreed upon in writing by Executive, Executive shall be deemed to have resigned from any and all directorships, committee memberships, and any other positions Executive holds with the Company or any other member of the Company Group and will execute all documents reasonably requested for Executive to confirm such resignations.  Executive’s execution of this Agreement shall be deemed the grant by Executive to the officers of the Company of a limited power of attorney to sign in Executive’s name and on Executive’s behalf any such documentation as may be required to be executed solely for the limited purposes of effectuating such resignations.  Notwithstanding anything herein to the contrary, the payment (or commencement of a series of payments) hereunder of any “nonqualified deferred compensation” (within the meaning of Section 409A of the Code) upon a termination of employment shall be delayed until such time as Executive has also undergone a “separation from service” as defined in Treas. Reg. 1.409A-1(h), at which time such nonqualified deferred compensation (calculated as of the date of Executive’s termination of employment hereunder) shall be paid (or commence to be paid) to Executive on the schedule set forth in this Section 8 as if Executive had undergone such termination of employment (under the same circumstances) on the date of Executive’s ultimate “separation from service.”

 

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(b)          Termination Due to Death or Disability.  Executive’s employment shall terminate automatically upon Executive’s death.  The Company may terminate Executive’s employment immediately upon the occurrence of a Disability, such termination to be effective upon Executive’s receipt of written notice of such termination.  Upon Executive’s death or in the event that Executive’s employment is terminated due to Executive’s Disability, Executive or Executive’s estate or Executive’s beneficiaries, as the case may be, shall be entitled to:

(i)   The Accrued Obligations;

(ii)   Any unpaid Annual Bonus in respect of any completed fiscal year that has ended prior to the date of such termination, which amount shall be paid at such time annual bonuses are paid to other senior executives of the Company, but in no event later than the date that is two and one-half (21⁄2) months following the last day of the fiscal year in which such termination occurred (such amount being, the “Prior Year Bonus”);

(iii)   Subject to achievement of the applicable performance objectives for the fiscal year of the Company in which Executive’s termination occurs, as determined by the Compensation Committee, payment of the Annual Bonus that would otherwise have been earned in respect of the fiscal year in which such termination occurred, pro-rated to reflect the number of days Executive was employed during such fiscal year, such amount to be paid at the same time it would otherwise be paid to Executive had no termination occurred, but in no event later than the date that is two and one-half (21⁄2) months following the last day of the fiscal year of the Company in which such termination occurred (such amount being, the “Pro Rata Bonus”); and

(iv)   The Medical Benefits.

Following Executive’s death or a termination of Executive’s employment by reason of a Disability, except as set forth in this Section 8(b), Executive shall have no further rights to any compensation or any other benefits under this Agreement.

(c)          Termination by the Company with Cause.

(i)          The Company may terminate Executive’s employment at any time with Cause, effective upon Executive’s receipt of written notice of such termination; provided, however, that with respect to any Cause termination relying on clause (i) or (ii) of the definition of Cause set forth in Section 1(i) hereof, to the extent that such act or acts or failure or failures to act are curable, Executive shall be given not less than thirty (30) days’ written notice by the Board of the Company’s intention to terminate him with Cause, such notice to state in detail the particular act or acts or failure or failures to act that constitute the grounds on which the proposed termination with Cause is based, and such termination shall be effective at the expiration of such thirty (30) day notice period unless Executive has fully cured such act or acts or failure or failures to act that give rise to Cause during such period.

(ii)          In the event that the Company terminates Executive’s employment with Cause, Executive shall be entitled only to the Accrued Obligations.  Following such termination of Executive’s employment with Cause, except as set forth in this Section 8(c)(ii), Executive shall have no further rights to any compensation or any other benefits under this Agreement.

 

7

(d)          Termination by the Company without Cause.  The Company may terminate Executive’s employment at any time without Cause, effective upon Executive’s receipt of ninety (90) days written notice of such termination.  In the event that Executive’s employment is terminated by the Company without Cause (other than due to death or Disability), Executive shall be entitled to:

(i)          The Accrued Obligations;

(ii)          The Prior Year Bonus;

(iii)          The Pro Rata Bonus;

(iv)          Continued payment of Base Salary during the Continuation Period, payable in accordance with the Company’s regular payroll practices; provided, that in the event the termination of Executive’s employment occurs during the Protected Period, Executive shall be entitled to receive payment of such amount in a lump sum on the first regularly scheduled payroll date following the sixtieth (60th) day following the date of Executive’s termination of employment hereunder;

(v)          An amount equal to three (3) times the Target Bonus, such amount to be paid in three (3) equal installments, with the first (1st) such installment to be paid in the fiscal year following the fiscal year in which such termination occurs, the second (2nd) such installment to be paid in the second (2nd) fiscal year following the fiscal year in which such termination occurs, and the third (3rd) such installment to be paid in the third (3rd) fiscal year following the fiscal year in which such termination occurs, in each case, at the same time such amounts would otherwise be paid to Executive had no termination occurred, and in no event later than December 31 of such first (1st), second (2nd) or third (3rd) fiscal year, as applicable; provided, that in the event the termination of Executive’s employment occurs during the Protected Period, Executive shall be entitled to receive payment of such amount in a lump sum on the first regularly scheduled payroll date following the sixtieth (60th) day following the date of Executive’s termination of employment hereunder; and

(vi)          The Medical Benefits.

Notwithstanding the foregoing, the payments and benefits described in clauses (ii)-(vii) above shall immediately terminate, and the Company shall have no further obligations to Executive with respect thereto, in the event that Executive materially breaches any material provision of the Restrictive Covenant Agreements.  Following termination of Executive’s employment by the Company without Cause, except as set forth in this Section 8(d), Executive shall have no further rights to any compensation or any other benefits under this Agreement.  For the avoidance of doubt, Executive’s sole and exclusive remedy upon a termination of employment by the Company without Cause shall be receipt of the Severance Benefits.

(e)          Termination by Executive with Good Reason.  Executive may terminate Executive’s employment with Good Reason by providing the Company ten (10) days’ written notice setting forth in reasonable specificity the event that constitutes Good Reason, which written notice, to be effective, must be provided to the Company within sixty (60) days of the occurrence of such event.  During such ten (10) day notice period, the Company shall have a 

 

8

cure right (if curable), and if not cured within such period, Executive’s termination will be effective upon the expiration of such cure period, and Executive shall be entitled to the same payments and benefits as provided in Section 8(d) hereof for a termination by the Company without Cause, subject to the same conditions on payment and benefits as described in Section 8(d) hereof.  Following such termination of Executive’s employment by Executive with Good Reason, except as set forth in this Section 8(e), Executive shall have no further rights to any compensation or any other benefits under this Agreement.  For the avoidance of doubt, Executive’s sole and exclusive remedy upon a termination of employment with Good Reason shall be receipt of the Severance Benefits.

(f)          Termination by Executive without Good Reason.  Executive may terminate Executive’s employment without Good Reason by providing the Company sixty (60) days’ written notice of such termination.  In the event of a termination of employment by Executive under this Section 8(f), Executive shall be entitled only to (i) the Accrued Obligations, (ii) the Prior Year Bonus; (iii) the Pro Rata Bonus; and (v) the Medical Benefits, in each case, subject to the same conditions on payment and benefits as described in Section 8(d) hereof.  In the event of termination of Executive’s employment under this Section 8(f), the Company may, in its sole and absolute discretion, by written notice accelerate such date of termination without changing the characterization of such termination as a termination by Executive without Good Reason.  Following such termination of Executive’s employment by Executive without Good Reason, except as set forth in this Section 8(f), Executive shall have no further rights to any compensation or any other benefits under this Agreement.

(g)          Release.  Notwithstanding any provision herein to the contrary, the payment of any amount or provision of any benefit pursuant to subsection (b), (d), (e) or (f) of this Section 8 (other than the Accrued Obligations) (collectively, the “Severance Benefits”) shall be conditioned upon Executive’s execution, delivery to the Company, and non-revocation of the Release of Claims (and the expiration of any revocation period contained in such Release of Claims) within sixty (60) days following the date of Executive’s termination of employment hereunder.  If Executive fails to execute the Release of Claims in such a timely manner so as to permit any revocation period to expire prior to the end of such sixty (60) day period, or timely revokes Executive’s acceptance of such release following its execution, Executive shall not be entitled to any of the Severance Benefits.  Further, (i) to the extent that any of the Severance Benefits constitutes “nonqualified deferred compensation” for purposes of Section 409A of the Code, any payment of any amount or provision of any benefit otherwise scheduled to occur prior to the sixtieth (60th) day following the date of Executive’s termination of employment hereunder, but for the condition on executing the Release of Claims as set forth herein, shall not be made until the first regularly scheduled payroll date following such sixtieth (60th) day and (ii) to the extent that any of the Severance Benefits do not constitute “nonqualified deferred compensation” for purposes of Section 409A of the Code, any payment of any amount or provision of any benefit otherwise scheduled to occur following the date of Executive’s termination of employment hereunder, but for the condition on executing the Release of Claims as set forth herein, shall not be made until the first regularly scheduled payroll date following the date the Release of Claims is timely executed and the applicable revocation period has ended, after which, in each case, any remaining Severance Benefits shall thereafter be provided to Executive according to the applicable schedule set forth herein.  For the avoidance of doubt, in the event of a termination due to Executive’s death or Disability, Executive’s obligations herein to execute 

 

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and not revoke the Release of Claims may be satisfied on Executive’s behalf by Executive’s estate or a person having legal power of attorney over Executive’s affairs.

Section 9.   Restrictive Covenant Agreements.

As a condition of, and prior to commencement of, Executive’s employment with the Company, Executive shall have executed and delivered to the Company the Restrictive Covenant Agreements.  The parties hereto acknowledge and agree that this Agreement and the Restrictive Covenant Agreements shall be considered separate contracts, and the Restrictive Covenant Agreements will survive the termination of this Agreement for any reason.

Section 10.   Representations and Warranties of Executive.

Executive represents and warrants to the Company that —

(a)          Executive is entering into this Agreement voluntarily and that Executive’s employment hereunder and compliance with the terms and conditions hereof will not conflict with or result in the breach by Executive of any agreement to which Executive is a party or by which Executive may be bound;

(b)          Executive has not violated, and in connection with Executive’s employment with the Company will not violate, any non-solicitation, non-competition, or other similar covenant or agreement of a prior employer by which Executive is or may be bound; and

(c)          in connection with Executive’s employment with the Company, Executive will not use any confidential or proprietary information Executive may have obtained in connection with employment with any prior employer.

Section 11.   Taxes.

The Company may withhold from any payments made under this Agreement all applicable taxes, including but not limited to income, employment, and social insurance taxes, as shall be required by law.  Executive acknowledges and represents that the Company has not provided any tax advice to Executive in connection with this Agreement and that Executive has been advised by the Company to seek tax advice from Executive’s own tax advisors regarding this Agreement and payments that may be made to Executive pursuant to this Agreement, including specifically, the application of the provisions of Section 409A of the Code to such payments.

Section 12.   Set Off; Mitigation.

The Company’s obligation to pay Executive the amounts provided and to make the arrangements provided hereunder shall be subject to set-off, counterclaim, or recoupment of amounts owed by Executive to the Company or its affiliates; provided, however, that to the extent any amount so subject to set-off, counterclaim, or recoupment is payable in installments hereunder, such set-off, counterclaim, or recoupment shall not modify the applicable payment date of any installment, and to the extent an obligation cannot be satisfied by reduction of a single installment payment, any portion not satisfied shall remain an outstanding obligation of 

 

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Executive and shall be applied to the next installment only at such time the installment is otherwise payable pursuant to the specified payment schedule.  Executive shall not be required to mitigate the amount of any payment or benefit provided pursuant to this Agreement by seeking other employment or otherwise, and except as provided in Section 8(d)(vii) hereof, the amount of any payment or benefit provided for pursuant to this Agreement shall not be reduced by any compensation earned as a result of Executive’s other employment or otherwise.

Section 13.   Additional Section 409A Provisions.

Notwithstanding any provision in this Agreement to the contrary—

(a)          Any payment otherwise required to be made hereunder to Executive at any date as a result of the termination of Executive’s employment shall be delayed for such period of time as may be necessary to meet the requirements of Section 409A(a)(2)(B)(i) of the Code (the “Delay Period”).  On the first business day following the expiration of the Delay Period, Executive shall be paid, in a single cash lump sum, an amount equal to the aggregate amount of all payments delayed pursuant to the preceding sentence, and any remaining payments not so delayed shall continue to be paid pursuant to the payment schedule set forth herein.

(b)          Each payment in a series of payments hereunder shall be deemed to be a separate payment for purposes of Section 409A of the Code.

(c)          To the extent that any right to reimbursement of expenses or payment of any benefit in-kind under this Agreement constitutes nonqualified deferred compensation (within the meaning of Section 409A of the Code), (i) any such expense reimbursement shall be made by the Company no later than the last day of the taxable year following the taxable year in which such expense was incurred by Executive, (ii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (iii) the amount of expenses eligible for reimbursement or in-kind benefits provided during any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable year; provided, that the foregoing clause shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect.

(d)          While the payments and benefits provided hereunder are intended to be structured in a manner to avoid the implication of any penalty taxes under Section 409A of the Code, in no event whatsoever shall the Parent or any of its affiliates (including, without limitation, the Company) be liable for any additional tax, interest, or penalties that may be imposed on Executive as a result of Section 409A of the Code or any damages for failing to comply with Section 409A of the Code (other than for withholding obligations or other obligations applicable to employers, if any, under Section 409A of the Code).

Section 14.   Golden Parachute Modified Cutback Provision.

(a)          Modified Cutback.  In the event that any of the payments or benefits described in this Agreement, when added to all other amounts or benefits provided to or on behalf or for the benefit of Executive by the Company or its affiliates in connection with his termination of employment (“Covered Payments”), would constitute parachute payments (“Parachute 

 

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Payments”) within the meaning of Section 280G of the Code and would be subject to the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law or any interest or penalties with respect to such taxes (collectively, the “Excise Tax”), then such Covered Payments shall be either (i) reduced to the minimum extent necessary to ensure that no portion of the Covered Payments is subject to the Excise Tax (that amount, the “Reduced Amount”) or (ii) payable in full if Executive’s receipt on an after-tax basis of the full amount of payments and benefits (after taking into account the applicable federal, state, local and foreign income, employment and excise taxes (including the Excise Tax)) would result in Executive receiving an amount that is at least one dollar greater than the Reduced Amount.  If the Covered Payments are to be reduced pursuant to clause (i) in the immediately preceding sentence, such reduction shall be done in a manner that maximizes Executive’s economic position.  In applying this principle, the reduction shall be made in a manner consistent with the requirements of Section 409A of the Code, and where two economically equivalent amounts are subject to reduction but payable at different times, such amounts shall be reduced on a pro rata basis but not below zero.

(b)          Determinations.

(i)          An initial determination as to whether (1) any of the Parachute Payments received by Executive in connection with the occurrence of a change in the ownership or control of the Company or in the ownership of a substantial portion of the assets of the Company shall be subject to the Excise Tax, and (2) the amount of any reduction, if any, that may be required pursuant to Section 14(a) above, shall be made by an accounting, consulting or specialty firm selected by the Company (the “Accounting Firm”) prior to the consummation of such change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets of the Company.  Executive shall be furnished with notice of all determinations made as to the Excise Tax payable with respect to Executive’s Parachute Payments, together with the related calculations of the Accounting Firm, promptly after such determinations and calculations have been received by the Company.

(ii)          For purposes of this provision, (1) no portion of the Parachute Payments the receipt or enjoyment of which Executive shall have effectively waived in writing prior to the date of payment of the Parachute Payments shall be taken into account; (2) no portion of the Parachute Payments shall be taken into account which in the opinion of the Accounting Firm does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code and the Accounting Firm shall be required to value any restrictive covenants (including, without limitation, any covenants not to compete with the Company or solicit employees or customers of the Company) in forming such opinion; (3) the Parachute Payments shall be reduced only to the extent necessary so that the Parachute Payments (other than those referred to in the immediately preceding clause (1) or (2)) in their entirety constitute reasonable compensation for services actually rendered within the meaning of Section 280G(b)(4) of the Code or are otherwise not subject to disallowance as deductions, in the opinion of the auditor or tax counsel referred to in such clause (2); and (4) the value of any non-cash benefit or any deferred payment or benefit included in the Parachute Payments shall be determined by the Company’s independent auditors based on Sections 280G and 4999 of the Code and the regulations for applying those Code sections, or on substantial authority within the meaning of Section 6662 of the Code.

 

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(iii)          Executive shall not be required to mitigate the amount of any payment provided for in this Section 14 by seeking other employment or otherwise.  Unless otherwise agreed to in writing, the amount of payment or the benefit provided for in this Agreement shall not be reduced by any compensation earned by Executive as the result of employment by another employer or by reason of Executive’s receipt of or right to receive any retirement or other benefits after the date of termination of employment or otherwise.

(iv)          It is possible that after determinations and selections made pursuant to this Section 14 Executive will receive an amount that is either more or less than the limitation provided above (hereafter referred to as an “Excess Payment” or “Underpayment,” respectively).  If it is established, pursuant to a final determination of a court or an Internal Revenue Service proceeding that has been finally and conclusively resolved, that an Excess Payment has been made, then Executive shall refund the Excess Payment to the Company promptly on demand, together with an additional payment in an amount equal to the product obtained by multiplying the Excess Payment times the rate that is 120% of the applicable annual federal rate (as determined in and under Section 1274(d) of the Code) times a fraction whose numerator is the number of days elapsed from the date of Executive’s receipt of such Excess Payment through the date of such refund and whose denominator is 365.  In the event that it is determined (x) by an arbitration under Section 19 below, (y) by a court of competent jurisdiction, or (z) by an independent auditor upon request by Executive or the Company, that an Underpayment has occurred, the Company shall pay an amount equal to the Underpayment to Executive within ten (10) days of such determination together with an additional payment in an amount equal to the product obtained by multiplying the Underpayment times the rate that is 120% of the applicable annual federal rate (as determined under Section 1274(d) of the Code) times a fraction whose numerator is the number of days elapsed from the date of the Underpayment through the date of such payment and whose denominator is 365.

(v)          The Company and Executive will cooperate in good faith to review, consider and pursue reasonable and customary mitigation strategies to avoid the imposition of the Excise Tax on any amounts due to Executive hereunder or otherwise.

Section 15.   Clawbacks.

All payments made pursuant to this Agreement are subject to the “clawback” obligations of Section 954 of the Dodd-Frank Wall Street Reform and Consumer Act, as may be amended from time to time, and any other “clawback” obligations pursuant to applicable law, rule, regulation.

Section 16.   Successors and Assigns; No Third-Party Beneficiaries.

(a)          The Company.  This Agreement shall inure to the benefit of the Company and its respective successors and assigns.  Neither this Agreement nor any of the rights, obligations, or interests arising hereunder may be assigned by the Company to a Person (other than another member of the Company Group, or its or their respective successors) without Executive’s prior written consent (which shall not be unreasonably withheld, delayed, or conditioned); provided, however, that in the event of a sale of all or substantially all of the assets of the Company or any direct or indirect division or subsidiary thereof to which Executive’s employment primarily 

 

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relates, the Company may provide that this Agreement will be assigned to, and assumed by, the acquiror of such assets, it being agreed that in such circumstances, Executive’s consent will not be required in connection therewith.

(b)          Executive.  Executive’s rights and obligations under this Agreement shall not be transferable by Executive by assignment or otherwise, without the prior written consent of the Company; provided, however, that if Executive shall die, all amounts then payable to Executive hereunder shall be paid in accordance with the terms of this Agreement to Executive’s devisee, legatee, or other designee, or if there be no such designee, to Executive’s estate.

(c)          No Third-Party Beneficiaries.  Except as otherwise set forth in Section 8(b) or Section 16(b) hereof, nothing expressed or referred to in this Agreement will be construed to give any Person other than the Company, the other members of the Company Group, and Executive any legal or equitable right, remedy, or claim under or with respect to this Agreement or any provision of this Agreement.

Section 17.   Waiver and Amendments.

Any waiver, alteration, amendment, or modification of any of the terms of this Agreement shall be valid only if made in writing and signed by each of the parties hereto; provided, however, that any such waiver, alteration, amendment, or modification must be consented to on the Company’s behalf by the Board.  No waiver by either of the parties hereto of their rights hereunder shall be deemed to constitute a waiver with respect to any subsequent occurrences or transactions hereunder unless such waiver specifically states that it is to be construed as a continuing waiver.

Section 18.   Severability.

If any covenants or such other provisions of this Agreement are found to be invalid or unenforceable by a final determination of a court of competent jurisdiction, (a) the remaining terms and provisions hereof shall be unimpaired, and (b) the invalid or unenforceable term or provision hereof shall be deemed replaced by a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision hereof.

Section 19.   Governing Law and Jurisdiction.

(a)          EXCEPT WHERE PREEMPTED BY FEDERAL LAW, THE VALIDITY, INTERPRETATION, CONSTRUCTION, AND PERFORMANCE OF THIS AGREEMENT IS GOVERNED BY AND IS TO BE CONSTRUED UNDER THE LAWS OF THE STATE OF TENNESSEE APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE, WITHOUT REGARD TO CONFLICT OF LAWS RULES.

(b)          Any disputes arising under or in connection with this Agreement, other than an action brought to obtain injunctive relief in order to enforce the provisions of the Restrictive Covenant Agreements, shall be resolved by final and binding arbitration before a single arbitrator as agreed upon between the Company and Executive in Memphis, Tennessee, under the Federal Arbitration Act, using the American Arbitration Association (the “AAA”) and in accordance 

 

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with the commercial arbitration rules of the AAA (the “Rules”) then in effect.  The written decision of the arbitrator, which shall include findings of fact and conclusions of law, shall be final and binding upon the parties and in such form that judgment may be entered in and enforced by any court having jurisdiction over the parties.  Each party shall pay its own attorneys’ fees in any such arbitration; provided, however, that (i) the Company shall pay for any administrative or filing fees, including the arbitrator’s fee, that Executive would not have otherwise incurred if the dispute was adjudicated in a court of law, rather than through arbitration, and (ii) in the event that the arbitration results in a judgment, award or settlement in Executive’s favor in any material respect, the Company shall reimburse Executive for all reasonable fees and costs (including legal fees) incurred by Executive in such successful prosecution or defense.  Nothing in this Agreement shall prevent Executive or the Company from seeking, from a court of competent jurisdiction, temporary restraining orders or preliminary injunctions, without the necessity of posting a bond, to require or prevent certain acts or events (“Temporary Injunctive Relief”) in cases in which such Temporary Injunctive Relief would otherwise be authorized by law, and such court shall be entitled to award reasonable attorneys’ fees to the prevailing party in any such action under this Agreement.  In such cases where Temporary Injunctive Relief is sought, the trial on the merits of the action will occur in front of, and will be decided by, the arbitrator, who will have the same ability to order legal or equitable remedies as could a court of general jurisdiction.  This arbitration provision recognizes the rights and responsibilities of government agencies, including but not limited to, the Equal Employment Opportunity Commission and state agencies, to enforce the statutes which come under their jurisdiction.  This Agreement is not intended to prevent Executive from initiating or participating in any investigation or proceeding conducted by these government agencies.  Nothing in this arbitration provision is intended to limit any right Executive may have to file a charge with or obtain relief from the National Labor Relations Board or to file a claim for workers’ compensation benefits and unemployment compensation benefit with the appropriate government agency.  Executive understands and agrees that any such arbitration shall be conducted on an individual basis only, not a class basis, and Executive hereby waives any right to bring classwide claims before any arbitrator or in any forum.  THE COMPANY AND EXECUTIVE UNDERSTAND THAT BY AGREEING TO ARBITRATE DISPUTES EACH IS WAIVING ANY RIGHT TO A JURY TRIAL.

Section 20.   Notices.

(a)          Place of Delivery.  Every notice or other communication relating to this Agreement shall be in writing, and shall be mailed to or delivered to the party for whom or which it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided; provided, that unless and until some other address be so designated, all notices and communications by Executive to the Company shall be mailed or delivered to the Company at its principal executive office, and all notices and communications by the Company to Executive may be given to Executive personally or may be mailed to Executive at Executive’s last known address, as reflected in the Company’s records.

(b)          Date of Delivery.  Any notice so addressed shall be deemed to be given or received (i) if delivered by hand, on the date of such delivery, (ii) if mailed by courier or by overnight mail, on the first business day following the date of such mailing, and (iii) if mailed by registered or certified mail, on the third business day after the date of such mailing.

 

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Section 21.   Section Headings.

The headings of the sections and subsections of this Agreement are inserted for convenience only and shall not be deemed to constitute a part thereof or affect the meaning or interpretation of this Agreement or of any term or provision hereof.

Section 22.   Entire Agreement.

This Agreement, together with any exhibits attached hereto, constitutes the entire understanding and agreement of the parties hereto regarding the employment of Executive.  This Agreement supersedes all prior negotiations, discussions, correspondence, communications, understandings, and agreements between the parties relating to the subject matter of this Agreement, including, without limitation, the Prior Agreement.

Section 23.   Survival of Operative Sections.

Upon any termination of Executive’s employment, the provisions of Section 8 through Section 24 of this Agreement (together with any related definitions set forth in Section 1 hereof) shall survive to the extent necessary to give effect to the provisions thereof.

Section 24.   Counterparts.

This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.  The execution of this Agreement may be by actual signature or by signature delivered by facsimile or by e-mail as a portable document format (.pdf) file or image file attachment.

*   *   *

[Signatures to appear on the following page(s).]

 

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IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.

 

	 	
MUELLER INDUSTRIES, INC.

	 	 
	 	/s/ Christopher J. Miritello                                           
	 	
By:  Christopher J. Miritello

	 	
Title:  Vice President, General Counsel & Corporate Secretary

	 	 
	 	 
	 	
EXECUTIVE

	 	 
	 	 
	 	
/s/ Gregory L. Christopher                                                

	 	
Gregory L. Christopher

 

 

 

 

 

 

 

 

 

 

[Signature Page to G. Christopher Employment Agreement]

 

Exhibit A

RELEASE OF CLAIMS

As used in this Release of Claims (this “Release”), the term “claims” will include all claims, covenants, warranties, promises, undertakings, actions, suits, causes of action, obligations, debts, accounts, attorneys’ fees, judgments, losses, and liabilities, of whatsoever kind or nature, in law, in equity, or otherwise.

For and in consideration of the Severance Benefits (as defined in my Employment Agreement, dated March 15, 2018, with Mueller Industries, Inc. (such corporation, the “Company” and such agreement, my “Employment Agreement”)), and other good and valuable consideration, I, Gregory L. Christopher, for and on behalf of myself and my heirs, administrators, executors, and assigns, effective as of the date on which this release becomes effective pursuant to its terms, do fully and forever release, remise, and discharge the Company, and each of its direct and indirect subsidiaries and affiliates, and their respective successors and assigns, together with their respective current and former officers, directors, partners, shareholders, employees, and agents (collectively, the “Group”), from any and all claims whatsoever up to the date hereof that I had, may have had, or now have against the Group, whether known or unknown, for or by reason of any matter, cause, or thing whatsoever, including any claim arising out of or attributable to my employment or the termination of my employment with the Company, whether for tort, breach of express or implied employment contract, intentional infliction of emotional distress, wrongful termination, unjust dismissal, defamation, libel, or slander, or under any federal, state, or local law dealing with discrimination based on age, race, sex, national origin, handicap, religion, disability, or sexual orientation.  The release of claims in this Release includes, but is not limited to, all claims arising under the Age Discrimination in Employment Act of 1967 (“ADEA”), Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Civil Rights Act of 1991, the Family and Medical Leave Act of 1993, the Worker Adjustment and Retraining Notification Act of 1988 and the Equal Pay Act of 1963, each as may be amended from time to time, and all other federal, state, and local laws, the common law, and any other purported restriction on an employer’s right to terminate the employment of employees.  The release contained herein is intended to be a general release of any and all claims to the fullest extent permissible by law.

I acknowledge and agree that as of the date I execute this Release, I have no knowledge of any facts or circumstances that give rise or could give rise to any claims under any of the laws listed in the preceding paragraph.

By executing this Release, I specifically release all claims relating to my employment and its termination under ADEA, a United States federal statute that, among other things, prohibits discrimination on the basis of age in employment and employee benefit plans.

Notwithstanding any provision of this Release to the contrary, by executing this Release, I am not releasing (i) any claims relating to my rights under Section 8 of my Employment Agreement, (ii) any claims that cannot be waived by law, or (iii) my right of indemnification as provided by, and in accordance with the terms of, the Company’s by-laws or a Company insurance policy providing such coverage, as any of such may be amended from time to time.

I expressly acknowledge and agree that I –

 

 

§ Am able to read the language, and understand the meaning and effect, of this Release;

§ Have no physical or mental impairment of any kind that has interfered with my ability to read and understand the meaning of this Release or its terms, and that I am not acting under the influence of any medication, drug, or chemical of any type in entering into this Release;

§ Am specifically agreeing to the terms of the release contained in this Release because the Company has agreed to pay me the Severance Benefits in consideration for my agreement to accept it in full settlement of all possible claims I might have or ever have had, and because of my execution of this Release;

§ Acknowledge that, but for my execution of this Release, I would not be entitled to the Severance Benefits;

§ Understand that, by entering into this Release, I do not waive rights or claims under ADEA that may arise after the date I execute this Release;

§ Had or could have had [twenty-one (21)][forty-five (45)]1 calendar days from the date of my termination of employment (the “Release Expiration Date”) in which to review and consider this Release, and that if I execute this Release prior to the Release Expiration Date, I have voluntarily and knowingly waived the remainder of the review period;

§ Have not relied upon any representation or statement not set forth in this Release or my Employment Agreement made by the Company or any of its representatives;

§ Was advised to consult with my attorney regarding the terms and effect of this Release; and

§ Have signed this Release knowingly and voluntarily.

I represent and warrant that I have not previously filed, and to the maximum extent permitted by law agree that I will not file, a complaint, charge, or lawsuit against any member of the Group regarding any of the claims released herein.  If, notwithstanding this representation and warranty, I have filed or file such a complaint, charge, or lawsuit, I agree that I shall cause such complaint, charge, or lawsuit to be dismissed with prejudice and shall pay any and all costs required in obtaining dismissal of such complaint, charge, or lawsuit, including without limitation the attorneys’ fees of any member of the Group against whom I have filed such a complaint, charge, or lawsuit.  This paragraph shall not apply, however, to a claim of age 

 

1    Note to Draft - to be selected based on whether applicable termination was “in connection with an exit incentive or other employment termination program” (as such phrase is defined in the Age Discrimination in Employment Act of 1967).

 

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discrimination under ADEA or to any non-waivable right to file a charge with the United States Equal Employment Opportunity Commission (the “EEOC”); provided, however, that if the EEOC were to pursue any claims relating to my employment with the Company, I agree that I shall not be entitled to recover any monetary damages or any other remedies or benefits as a result and that this Release and Section 8 of my Employment Agreement will control as the exclusive remedy and full settlement of all such claims by me.

I hereby agree to waive any and all claims to re-employment with the Company or any other member of the Group and affirmatively agree not to seek further employment with the Company or any other member of the Group.

Notwithstanding anything contained herein to the contrary, this Release will not become effective or enforceable prior to the expiration of the period of seven (7) calendar days immediately following the date of its execution by me (the “Revocation Period”), during which time I may revoke my acceptance of this Release by notifying the Company and the Board of Directors of the Company, in writing, delivered to the Company at its principal executive office, marked for the attention of its General Counsel.  To be effective, such revocation must be received by the Company no later than 11:59 p.m. on the seventh (7th) calendar day following the execution of this Release.  Provided that the Release is executed and I do not revoke it during the Revocation Period, the eighth (8th) calendar day following the date on which this Release is executed shall be its effective date.  I acknowledge and agree that if I revoke this Release during the Revocation Period, this Release will be null and void and of no effect, and neither the Company nor any other member of the Group will have any obligations to pay me the Severance Benefits.

The provisions of this Release shall be binding upon my heirs, executors, administrators, legal personal representatives, and assigns.  If any provision of this Release shall be held by any court of competent jurisdiction to be illegal, void, or unenforceable, such provision shall be of no force or effect.  The illegality or unenforceability of such provision, however, shall have no effect upon and shall not impair the enforceability of any other provision of this Release.

EXCEPT WHERE PREEMPTED BY FEDERAL LAW, THE VALIDITY, INTERPRETATION, CONSTRUCTION, AND PERFORMANCE OF THIS RELEASE IS GOVERNED BY AND IS TO BE CONSTRUED UNDER THE LAWS OF THE STATE OF TENNESSEE APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE, WITHOUT REGARD TO CONFLICT OF LAWS RULES.  ANY DISPUTE OR CLAIM ARISING OUT OF OR RELATING TO THIS RELEASE OR CLAIM OF BREACH HEREOF SHALL BE BROUGHT EXCLUSIVELY IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TENNESSEE, TO THE EXTENT FEDERAL JURISDICTION EXISTS, AND IN ANY COURT SITTING IN TENNESSEE, BUT ONLY IN THE EVENT FEDERAL JURISDICTION DOES NOT EXIST, AND ANY APPLICABLE APPELLATE COURTS.  BY EXECUTION OF THIS RELEASE, I CONSENT TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS, AND WAIVE ANY RIGHT TO CHALLENGE JURISDICTION OR VENUE IN SUCH COURT WITH REGARD TO ANY SUIT, ACTION, OR PROCEEDING UNDER OR IN CONNECTION WITH THIS RELEASE.  FURTHER, I HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN CONNECTION 

 

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WITH ANY SUIT, ACTION, OR PROCEEDING UNDER OR IN CONNECTION WITH THIS RELEASE.

Capitalized terms used, but not defined herein, shall have the meanings ascribed to such terms in my Employment Agreement.

*   *   *

I, Gregory L. Christopher, have executed this Release of Claims on the date set forth below:

	 	 ___________________________________________
	 	
Gregory L. Christopher

	 	 
	 	
Date:  [To be executed only following a termination of employment]

 

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Exhibit B

EMPLOYEE NON-COMPETITION AGREEMENT

In consideration and as a condition of employment by MUELLER INDUSTRIES, INC. or any of its subsidiaries or divisions the (“Company”), the undersigned (“Employee”) agrees as follows:

1. Recitals & Acknowledgements

Employee acknowledges that he is employed by the Company on an “at-will” basis pursuant to that certain Employment Agreement, by and between Employee and the Company, dated March 15, 2018 (the “Employment Agreement”).

Employee also acknowledges the highly competitive nature of the Company’s business, and that by virtue of the Employee’s role, function and/or status within the Company, Employee is special and unique within the Company’s industry, and will have, among other benefits, (i) the opportunity to develop substantial relationships with existing and prospective customers and suppliers; (ii) access to confidential and proprietary trade secrets, research, sales and marketing plans, pricing methods, financial, commercial, technical, and other information relating to the Company’s business; and/or (iii) certain levels of compensation.

In light of the foregoing, Employee recognizes and acknowledges that the restrictions and limitations set forth in this Agreement are reasonable and valid in all respects, and are essential to protect the Company.  Employee further acknowledges that the restrictions and limitations set forth in this Agreement will not materially interfere with his ability to earn a living following any termination of employment with the Company.

2. Non-Competition Covenants

Unless Employee receives prior written consent from the Company’s Director of Human Resources, Employee agrees that, during the term of his employment with the Company and for the one (1) year period immediately following his termination, for whatever reason and whether that termination is effected by the Employee or the Company:  (a) Employee will not accept employment with or provide services to any company or business that competes with the Company; and (b) Employee will not contact any customer or prospective customer of the Company, or any representative of the same, for the purpose of providing any service or product competitive with any service or product sold or provided by the Company.

3. Intellectual Property

Employee hereby agrees that he will, without additional compensation, (i) promptly make full written disclosure to the Company, (ii) hold in trust for the sole right and benefit of the Company, and (iii) assign to the Company or its designee, all of Employee’s right, title and interest throughout the world in and to any and all developments, original works of authorship, inventions, concepts, know-how, improvements or trade secrets (“IP”), whether or not patentable or registrable under intellectual property laws, which he may solely or jointly cause to be conceived, developed or reduced to practice, during the term of his employment with the Company and for one (1) year immediately thereafter.  Employee so agrees irrespective of whether the IP was conceived, developed or reduced to practice during regular working hours or on the Company’s 

 

premises, so long as the IP relates to the Company’s business or research activities or the scope of Employee’s employment and/or is developed using the Company’s resources or from information obtained through Employee’s employment with the Company or interactions with Company employees.

Employee further acknowledges that all such IP is considered a “work made for hire” (to the fullest extent permitted by applicable law) and for which Employee is, in part, compensated by his or her salary.  Notwithstanding, to the extent any such IP is deemed not a work made for hire, Employee hereby assigns all rights in such IP to the Company.

Employee agrees, during and after the term of his employment with the Company, to furnish information, give testimony and execute and deliver any and all documents requested by the Company to perfect and protect its rights in any such IP.  Further, Employee hereby appoints the Company as his attorney-in-fact to execute, in accordance with applicable law, any patent applications, assignments or other documents considered necessary or desirable by the Company.  The Company, however, is under no obligation to apply for patents or to use or protect any such IP, and such IP shall remain the property of the Company unless released in writing by the Company to the Employee.

4. Other Provisions

The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision or provisions of this Agreement, which shall remain in full force and effect.  If any obligation or covenant contained of this Agreement is held to be invalid, void, excessive or unenforceable in any jurisdiction, it shall be severed and modified only to the minimum extent necessary to render the modified obligation or covenant valid, legal and enforceable.  In such case, all remaining parts of this Agreement shall remain in full force and effect.

Employee acknowledges that a breach or threatened breach of this Agreement could cause irreparable injury to the Company; that damages would not adequately compensate the Company for such breach or threatened breach; and that such damages would be difficult if not impossible to determine.  Therefore, Employee agrees that the Company shall be entitled to such equitable and injunctive relief as may be available to restrain or prevent a breach or contemplated breach of any obligations or covenants contained in this Agreement.  The Company shall have this right in addition to damages and every other remedy available at law or in equity.  Employee acknowledges and agrees that the post-termination restriction periods set forth in Section 2 above, shall be extended for the period of time during which Employee is in violation of any of the covenants herein and for any other period required for litigation during which the Company seeks to enforce such covenants and the Employee is found to be in breach.

Moreover, should Employee violate this Agreement, Employee shall pay back to the company:  (i) all monies forgiven under any type of draw program where the employee did not meet the required levels under the program and the Company forgave those monies during the one (1) year period prior to the Employee’s violation of this Agreement; and (ii) any monies paid by the Company on behalf of the Employee for relocation costs during the one (1) year period prior to the Employee’s violation of this Agreement.

Employee acknowledges and agrees that nothing contained herein shall be construed as granting him any right to continued employment with the Company.  The Company retains the right to terminate Employee’s employment at any time and for any reason, with or without cause, in accordance with the terms and conditions of the Employment Agreement.

This Agreement shall be governed by, and construed in accordance with, the laws of the State of Tennessee.  Employee submits to the exclusive jurisdiction of the federal or state courts sitting in Shelby County, Tennessee in connection with any disputes arising from or related to this Agreement.

 

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This Agreement shall be binding upon Employee’s heirs, executors, administrators and other legal representatives, and will be for the benefit of the Company, its successors or assigns.  Employee expressly acknowledges and agrees that this Agreement may be assigned by the Company, without the Employee’s consent, to any affiliate, as well as any purchaser of all or substantially all of the Company’s assets or stock, whether by purchase, merger or similar corporate transaction.  The provisions of this Agreement shall survive the Employee’s employment with the Company and/or any assignment by the Company.

As of the date of execution by Employee, this Agreement shall expressly supersede and replace, in whole, any non-competition covenants contained in any employee confidentiality, non-solicitation, or non-competition agreement(s) between Employee and the Company, which were executed by Employee prior to the date of this Agreement (“Prior Non-Competition Obligations”).  Notwithstanding, to the extent the Company becomes aware of any violations of those Prior Non-Competition Obligations by the Employee which pre-date the date of execution of this Agreement, the Company retains its rights to enforce those Prior Non-Competition Obligations.  Any and all other agreements between Employee and the Company, including any stock option or restricted stock award agreements, shall remain in full force and effect.

CERTIFICATION

I acknowledge that I have received a copy of Mueller Industries, Inc.’s Employee Non-Competition Agreement and certify that I have read, understand and will fully comply with the policies and procedures set forth therein.  I understand that this Agreement applies to me and agree to comply fully with each of the provisions of this Agreement, including such changes to the Agreement as the Company may announce from time to time.

	
Date:  March 15, 2018

	
Print Name:  Gregory L. Christopher                             

	 	 
	 	
Signature:  /s/ Gregory L. Christopher                            

 

 

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Exhibit C

EMPLOYEE CONFIDENTIALITY AND

NON-SOLICITATION AGREEMENT

In consideration and as a condition of employment by MUELLER INDUSTRIES, INC. or any of its subsidiaries or divisions the (“Company”), the undersigned (“Employee”) agrees as follows:

1. Recitals & Acknowledgements

Employee acknowledges that he is employed by the Company on an “at-will” basis pursuant to that certain Employment Agreement, by and between Employee and the Company, dated March 15, 2018 (the “Employment Agreement”).

Employee acknowledges that the Company has developed, and will continue to develop, the considerable goodwill of its customers and employees, and that Employee has and/or will continue to participate in and benefit from that goodwill during the course of his employment.  Employee has or will also benefit from the Company’s training.

2. Best Efforts

Subject to the terms and conditions of Section 3(a) of the Employment Agreement, Employee agrees that during the term of his employment by the Company, he will devote whatever time, attention, effort and energy is necessary to faithfully complete the duties and responsibilities of his position.  Employee further agrees that he will not engage in any outside activity or employment that will interfere with or prevent his performance and completion of his assigned duties.

3. Confidentiality Obligations

Employee acknowledges that, as an employee of the Company, he will acquire confidential and proprietary information relating to the business of the Company including, but not limited to, trade secrets, pricing methods, marketing plans, customer lists, special customer service methods and requirements, operational information such as processes or machinery, confidential research projects, product development plans, matters of a technical nature, or similar information unavailable to the public (“Confidential Information”).

During and after his employment by the Company, the Employee agrees he will treat and preserve as confidential all Confidential Information related to the Company’s business, and Employee agrees not to use or disclose to any third party at any time (except for purposes of fulfilling the Employee’s duties and responsibilities during the course of his employment with the Company), any such Confidential Information without the Company’s prior express written approval.

Upon termination of employment, Employee agrees to deliver to the Company any and all Confidential Information in his possession or control, including any and all originals, copies, and reproductions of drawings, records and files, correspondence, emails, notes, notebooks and memoranda relating to the Company, its business, customers or suppliers, or anything produced by him/her during the course of his

 

employment.  Employee acknowledges and agrees that all such papers and information are and will remain the sole property of the Company.

Employee also represents that his performance of duties and responsibilities on behalf of the Company has not breached, and will not breach, any confidentiality obligation owed to any prior employer.  Employee agrees that he has and/or will not disclose to any employee of the Company, or induce any employee of the Company, to use any confidential or proprietary information obtained in connection with prior employment or in violation of any agreement between Employee and any prior employers.

This Agreement requires Employee to maintain the confidentiality of, and not to disclose to third parties, any Confidential Information related to the Company’s business.  However, Employee may not be held legally liable for disclosing such Confidential Information in in confidence to a government official, directly or indirectly, or to an attorney solely for the purpose of reporting or investigating a suspected violation of law.  Nor may Employee be held legally liable for using or disclosing such Confidential Information to an attorney in connection with a lawsuit, or including such information in a court filing in a legal proceeding, so long as the filing is made under seal or is otherwise made to comply with a court order.

4. Non-Solicitation Covenant

Employee agrees that, for a period of one (1) year immediately after the termination of his employment with the Company for whatever reason, Employee shall not, directly or indirectly, hire, solicit, recruit, or induce any Company employee or prospective employee to work for the Employee or any other person or business.

5. Additional Provisions

The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision or provisions of this Agreement, which shall remain in full force and effect.  If any obligation or covenant contained of this Agreement is held to be invalid, void, excessive or unenforceable in any jurisdiction, it shall be severed and modified only to the minimum extent necessary to render the modified obligation or covenant valid, legal and enforceable.  In such case, all remaining parts of this Agreement shall remain in full force and effect.

Employee acknowledges that a breach or threatened breach of this Agreement could cause irreparable injury to the Company; that damages would not adequately compensate the Company for such breach or threatened breach; and that such damages would be difficult if not impossible to determine.  Therefore, Employee agrees that the Company shall be entitled to such equitable and injunctive relief as may be available to restrain or prevent a breach or contemplated breach of any obligations or covenants contained in this Agreement.  The Company shall have this right in addition to damages and every other remedy available at law or in equity.

Employee acknowledges and agrees that nothing contained herein shall be construed as granting him any right to continued employment with the Company.  The Company retains the right to terminate Employee’s employment at any time and for any reason, with or without cause, in accordance with the terms and conditions of the Employment Agreement.

This Agreement shall be governed by, and construed in accordance with, the laws of the State of Tennessee.  Employee submits to the exclusive jurisdiction of the federal or state courts sitting in Shelby County, Tennessee in connection with any disputes arising from or related to this Agreement.

 

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This Agreement shall be binding upon Employee’s heirs, executors, administrators and other legal representatives, and will be for the benefit of the Company, its successors or assigns.  Employee expressly acknowledges and agrees that this Agreement may be assigned by the Company, without the Employee’s consent, to any affiliate, as well as any purchaser of all or substantially all of the Company’s assets or stock, whether by purchase, merger or similar corporate transaction.  The provisions of this Agreement shall survive the Employee’s employment with the Company and/or any assignment by the Company.

The execution of this Agreement may be by actual or facsimile signature.

As of the date of execution by Employee, this Agreement shall expressly supersede and replace, in whole, any employee confidentiality, non-solicitation, or non-competition agreement(s) between Employee and the Company, which were executed prior to the date of this Agreement (“Prior Agreements”).  Notwithstanding, to the extent the Company becomes aware of any violations of those Prior Agreements by the Employee which pre-date the date of execution of this Agreement, the Company retains its enforcement rights under those Prior Agreements.  Any and all other agreements between Employee and the Company shall remain in full force and effect.

CERTIFICATION

I acknowledge that I have received a copy of Mueller Industries, Inc.’s Employee Confidentiality and Non-Solicitation Agreement and certify that I have read, understand and will fully comply with the policies and procedures set forth therein.  I understand that this Agreement applies to me and agree to comply fully with each of the provisions of this Agreement, including such changes to the Agreement as the Company may announce from time to time.

 

	
Date:  March 15, 2018

	
Print Name:  Gregory L. Christopher                             

	 	 
	 	
Signature:  /s/ Gregory L. Christopher                            

 

 

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