Document:

exv4w2

Exhibit 4.2

DEPOSIT AGREEMENT

Dated

July 28, 2010

APACHE CORPORATION

AS ISSUER

and

WELLS FARGO BANK, N.A.

AS DEPOSITARY, REGISTRAR AND TRANSFER AGENT

RELATING TO RECEIPTS, DEPOSITARY SHARES AND RELATED

6.00% MANDATORY CONVERTIBLE PREFERRED STOCK, SERIES D

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE 1 DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE 2 FORM OF RECEIPTS, DEPOSIT OF CONVERTIBLE PREFERRED STOCK, EXECUTION AND DELIVERY, TRANSFER, SURRENDER OF
RECEIPTS
	 	 	3	 
	SECTION 2.01
	 	Rights, Privileges and Preferences; Form and Transferability of Receipts	 	 	4	 
	 
	 	Deposit of Convertible Preferred Stock; Execution and Delivery of Receipts in Respect	 	 	 	 
	SECTION 2.02
	 	Thereof	 	 	6	 
	SECTION 2.03
	 	No Redemption of Convertible Preferred Stock for Cash	 	 	7	 
	SECTION 2.04
	 	Registration and Transfer of Receipts	 	 	7	 
	SECTION 2.05
	 	Combinations and Split-ups of Receipts	 	 	8	 
	SECTION 2.06
	 	Surrender of Receipts and Withdrawal of Convertible Preferred Stock	 	 	8	 
	 
	 	Limitations on Execution and Delivery, Transfer, Split-up.  Combination, Surrender and	 	 	 	 
	SECTION 2.07
	 	Exchange of Receipts	 	 	9	 
	SECTION 2.08
	 	Lost Receipts, etc.	 	 	9	 
	SECTION 2.09
	 	Cancellation and Destruction of Surrendered Receipts	 	 	10	 
	SECTION 2.10
	 	Conversion after Satisfaction of Authorized Share Condition	 	 	10	 
	SECTION 2.11
	 	Conversion prior to Satisfaction of Authorized Share Condition	 	 	12	 
	SECTION 2.12
	 	Fractional Shares	 	 	13	 
	SECTION 2.13
	 	No Pre-Release	 	 	14	 
	 
	 	 	 	 	 	 
	ARTICLE 3 CERTAIN OBLIGATIONS OF HOLDERS OF RECEIPTS AND THE COMPANY	 	 	14	 
	SECTION 3.01
	 	Filing Proofs, Certificates and Other Information	 	 	14	 
	SECTION 3.02
	 	Payment of Fees and Expenses	 	 	15	 
	SECTION 3.03
	 	Representations and Warranties as to Convertible Preferred Stock	 	 	15	 
	SECTION 3.04
	 	Representation and Warranty as to Receipts and Depositary Shares	 	 	15	 
	SECTION 3.05
	 	Taxes	 	 	15	 
	SECTION 3.06
	 	Listing	 	 	16	 

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Table of Contents

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE 4 THE CONVERTIBLE PREFERRED STOCK; NOTICES	 	 	16	 
	SECTION 4.01
	 	Cash Distributions	 	 	16	 
	SECTION 4.02
	 	Distributions Other Than Cash	 	 	17	 
	SECTION 4.03
	 	Subscription Rights, Preferences or Privileges	 	 	17	 
	SECTION 4.04
	 	Notice of Dividends; Fixing of Record Date for Holders of Receipts	 	 	19	 
	SECTION 4.05
	 	Voting Rights	 	 	19	 
	SECTION 4.06
	 	Changes Affecting Convertible Preferred Stock and Reorganization Events	 	 	20	 
	SECTION 4.07
	 	Inspection of Reports	 	 	20	 
	SECTION 4.08
	 	Lists of Receipt Holders	 	 	20	 
	SECTION 4.09
	 	Withholding	 	 	20	 
	 
	 	 	 	 	 	 
	ARTICLE 5 THE DEPOSITARY AND THE COMPANY	 	 	21	 
	SECTION 5.01
	 	Maintenance of Offices, Agencies and Transfer Books by the Depositary and the Registrar	 	 	21	 
	SECTION 5.02 
	 	Prevention or Delay in Performance by the Depositary, the Depositary’s Agents, the	 	 	 	 
	 
	 	Registrar or the Company	 	 	22	 
	SECTION 5.03
	 	Obligations of the Depositary, the Depositary’s Agents and the Registrar	 	 	22	 
	SECTION 5.04
	 	Resignation and Removal of the Depositary; Appointment of Successor Depositary	 	 	26	 
	SECTION 5.05
	 	Notices, Reports and Documents	 	 	26	 
	SECTION 5.06
	 	Indemnification by the Company	 	 	27	 
	SECTION 5.07
	 	Fees, Charges and Expenses	 	 	27	 
	 
	 	 	 	 	 	 
	ARTICLE 6 AMENDMENT AND TERMINATION	 	 	28	 
	SECTION 6.01
	 	Amendment	 	 	28	 
	SECTION 6.02
	 	Termination	 	 	28	 
	 
	 	 	 	 	 	 
	ARTICLE 7 MISCELLANEOUS	 	 	29	 
	SECTION 7.01
	 	Counterparts	 	 	29	 
	SECTION 7.02
	 	Exclusive Benefits of Parties	 	 	29	 
	SECTION 7.03
	 	Invalidity of Provisions	 	 	29	 
	SECTION 7.04
	 	Notices	 	 	29	 
	SECTION 7.05
	 	Depositary’s Agents	 	 	30	 

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Table of Contents

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 7.06
	 	Holders of Receipts Are Parties	 	 	30	 
	SECTION 7.07
	 	Governing Law	 	 	30	 
	SECTION 7.08
	 	Inspection of Deposit Agreement and Certificate of Designations	 	 	31	 
	SECTION 7.09
	 	Headings	 	 	31	 

Exhibit A — Form of Face of Receipt; Form of Reverse of Receipt

Exhibit B — Certificate of Designations

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DEPOSIT AGREEMENT

     DEPOSIT AGREEMENT, dated July 28, 2010, among APACHE CORPORATION, a Delaware corporation,
WELLS FARGO BANK, N.A., a national banking association, as Depositary, and all holders from time to
time of Receipts (as hereinafter defined) issued hereunder.

WITNESSETH:

     WHEREAS, it is desired to provide, as hereinafter set forth in this Deposit Agreement, for the
deposit of shares from time to time of the Convertible Preferred Stock (as hereinafter defined)
with the Depositary for the purposes set forth in this Deposit Agreement and for the issuance
hereunder of Depositary Shares representing a fractional interest in the Convertible Preferred
Stock deposited and for the execution and delivery of Receipts evidencing Depositary Shares;

     WHEREAS, the Receipts are to be substantially in the form of Exhibit A annexed to this Deposit
Agreement, with appropriate insertions, modifications and omissions, as hereinafter provided in
this Deposit Agreement;

     WHEREAS, the terms, conditions, and pricing mechanisms upon conversion of the Convertible
Preferred Stock are set forth in the Certificate of Designations attached hereto as Exhibit B; and

     NOW, THEREFORE, in consideration of the premises contained herein, it is agreed by and among
the parties hereto as follows:

ARTICLE 1

DEFINITIONS

     The following definitions shall apply to the respective terms (in the singular and plural
forms of such terms) used in this Deposit Agreement and the Receipts:

     “Authorized Share Condition” shall have the meaning set forth in the Certificate of
Designations and is satisfied as of the date hereof.

     “Board of Directors” shall have the meaning set forth in the Certificate of Designations.

     “Certificate of Designations” shall mean the Certificate of Designations, Preferences and
Rights of 6.00% Mandatory Convertible Preferred Stock, Series D that amends the Certificate of
Incorporation, adopted by the Board of Directors, establishing and setting forth the rights,
preferences and privileges of the Convertible Preferred Stock, as filed with the Secretary of State
of the State of Delaware on July 28, 2010 and attached hereto as Exhibit B, and as such certificate
may be amended or restated from time to time.

     “Certificate of Incorporation” shall mean the Company’s Restated Certificate of Incorporation,
including any certificates of designation, as it may be amended from time to time.

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     “close of business” shall mean 5:00 p.m. (New York City time).

     “Common Stock” shall mean the common stock, par value $0.625, of the Company.

     “Company” shall mean Apache Corporation, a Delaware corporation, and its successors.

     “Conversion Date” shall have the meaning set forth in the Certificate of Designations.

     “Conversion Number” shall have the meaning set forth in Section 2.10.

     “Convertible Preferred Stock” shall mean the Company’s 6.00% Mandatory Convertible Preferred
Stock, Series D, with no par value, heretofore validly issued, fully paid and nonassessable.

     “Definitive Receipts” has the meaning set forth in SECTION 2.01.

     “Deposit Agreement” shall mean this agreement, as the same may be amended, modified or
supplemented from time to time.

     “Depositary” shall mean Wells Fargo Bank, N.A., or any successor appointed as depositary
pursuant to Section 5.04.

     “Depositary Office” shall mean the designated office of the Depositary at which at any
particular time its business in respect of matters governed by this Deposit Agreement shall be
administered, which at the date of this Deposit Agreement is located at 161 North Concord Exchange,
South St. Paul MN 55075.

     “Depositary Share” shall mean the security representing a 1/20th fractional
interest in a share of Convertible Preferred Stock deposited with the Depositary hereunder, as
evidenced by the Receipts issued hereunder.

     “Depositary’s Agent” shall mean an agent appointed by the Depositary as provided, and for the
purposes specified, in Section 7.05.

     “Designated Shares” shall have the meaning set forth in the Certificate of Designations.

     “Dividend Payment Date” shall have the meaning set forth in the Certificate of Designations.

     “Dividend Period” shall have the meaning set forth in the Certificate of Designations.

     “DTC” means The Depository Trust Company.

     “Exchange Property” shall have the meaning set forth in the Certificate of Designations.

     “Fundamental Change Conversion” shall have the meaning set forth in the Certificate of
Designations.

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     “Fundamental Change Preferred Stock” shall have the meaning set forth in the Certificate of
Designations.

     “Global Receipt” has the meaning set forth in Section 2.01.

     “Mandatory Conversion” shall have the meaning set forth in the Certificate of Designations.

     “Mandatory Conversion Date” shall have the meaning set forth in the Certificate of
Designations.

     “open of business” shall mean 9:00 a.m. (New York City time).

     “Optional Conversion” shall have the meaning set forth in the Certificate of Designations.

     “Person” shall mean any natural person, partnership, joint venture, firm, corporation,
limited liability company, limited liability partnership, unincorporated association, trust or
other entity, and shall include any successor (by merger or otherwise) of the foregoing.

     “Receipt” shall mean a receipt issued hereunder to evidence one or more Depositary Shares,
whether in definitive or temporary form, substantially in the form set forth as Exhibit A hereto.

     “record date” as applied to a Receipt shall mean the date fixed pursuant to Section 4.04.

     “Record holder” or “holder” as applied to a Receipt shall mean the Person in whose name such
Receipt is registered on the books maintained by the Depositary for such purpose.

     “Registrar” shall mean Wells Fargo Bank, N.A., or any bank or trust company appointed as
successor thereto pursuant to Section 5.04 to register ownership and transfers of Receipts and the
deposited Convertible Preferred Stock.

     “Regular Record Date” shall have the meaning set forth in the Certificate of Designations.

     “Reorganization Event” shall have the meaning set forth in the Certificate of Designations.

     “Securities Act” shall mean the Securities Act of 1933, as amended.

     “Transfer Agent” shall mean Wells Fargo Bank, N.A., or any bank or trust company appointed as
successor thereto pursuant to Sections 2.02 and 5.04 to transfer the Receipts and the deposited
Convertible Preferred Stock.

     “unit of Exchange Property” shall have the meaning set forth in the Certificate of
Designations.

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ARTICLE 2

FORM OF RECEIPTS, DEPOSIT OF CONVERTIBLE PREFERRED

STOCK, EXECUTION AND DELIVERY, TRANSFER, SURRENDER

OF RECEIPTS

     SECTION 2.01 Rights, Privileges and Preferences; Form and Transferability of Receipts.

     Subject to the terms of this Deposit Agreement, each holder of a Receipt is entitled,
proportionately, to all the rights, preferences and privileges of the Convertible Preferred Stock
represented by the Depositary Shares evidenced by such Receipt (including the conversion, dividend,
voting, and liquidation rights contained in the Certificate of Designations) and the same
proportionate interest in any and all other property received by the Depositary in respect of such
Convertible Preferred Stock and held under this Deposit Agreement.

     Except as provided herein, if requested by any holder, definitive Receipts (the “Definitive
Receipts”) shall be printed and shall be substantially in the form set forth in Exhibit A annexed
to this Deposit Agreement, in each case with appropriate insertions, modifications and omissions,
as hereinafter provided. Pending the preparation of Definitive Receipts, the Depositary, upon, and
pursuant to, the written order of the Company delivered in compliance with Section 2.02 shall be
authorized and instructed to, and shall, execute and deliver temporary Receipts which shall be
substantially of the tenor of the Definitive Receipts in lieu of which they are issued and in each
case with such appropriate insertions, omissions, substitutions and other variations as the Persons
executing such Receipts may determine (but which do not affect the rights or duties of the
Depositary), as evidenced by their execution of such Receipts. If temporary Receipts are issued,
the Company and the Depositary will cause Definitive Receipts to be prepared without unreasonable
delay. After the preparation of Definitive Receipts, the temporary Receipts shall be exchangeable
for Definitive Receipts upon surrender of the temporary Receipts at the Depositary Office without
charge to the holder. Upon surrender for cancellation of any one or more temporary Receipts, the
Depositary is hereby authorized and instructed to, and shall, execute and deliver in exchange
therefor Definitive Receipts representing the same number of Depositary Shares as represented by
the surrendered temporary Receipt or Receipts. Such exchange shall be made at the Company’s expense
and without any charge therefor. Until so exchanged, the temporary Receipts shall in all respects
be entitled to the same benefits under this Deposit Agreement, and with respect to the Convertible
Preferred Stock deposited, as Definitive Receipts.

     Receipts shall be executed by the Depositary by the manual or facsimile signature of a duly
authorized signatory of the Depositary; provided, that if a Registrar for the Receipts
(other than the Depositary) shall have been appointed then such Receipts shall also be
countersigned by manual or facsimile signature of a duly authorized signatory of the Registrar. No
Receipt shall be entitled to any benefits under this Deposit Agreement or be valid or obligatory
for any purpose unless it shall have been executed as provided in the preceding sentence. The
Depositary shall record on its books each Receipt executed as provided above and delivered as
hereinafter provided. Receipts bearing the manual or facsimile signature of a duly authorized
signatory of the Depositary who was at any time a proper signatory of the Depositary shall bind the
Depositary, notwithstanding that such signatory ceased to hold such office prior to the execution

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and delivery of such Receipts by the Registrar or did not hold such office on the date of issuance
of such Receipts.

     Receipts shall be in denominations of any number of whole Depositary Shares. All Receipts
shall be dated the date of their issuance.

     Receipts may be endorsed with or have incorporated in the text thereof such legends or
recitals or changes not inconsistent with the provisions of this Deposit Agreement as may be
required by the Depositary and approved by the Company, or which the Company has determined are
required to comply with any applicable law or regulation or with the rules and regulations of any
securities exchange upon which the Depositary Shares may be listed for trading or to conform with
any usage with respect thereto, or to indicate any special limitations or restrictions to which any
particular Receipts are subject, in each case as directed by the Company.

     Title to any Receipt (and to the Depositary Shares evidenced by such Receipt) that is properly
endorsed, or accompanied by a properly executed instrument of transfer, or endorsement shall be
transferable by delivery with the same effect as in the case of a negotiable instrument;
provided, however, that until transfer of a Receipt shall be registered on the
books of the Depositary as provided in Section 2.04, the Depositary may, notwithstanding any notice
to the contrary, treat the record holder thereof at such time as the absolute owner thereof for the
purpose of determining the Person entitled to distributions of dividends or other distributions or
payments with respect to the Convertible Preferred Stock, to exercise any voting, or conversion
rights or to receive any notice provided for in this Deposit Agreement and for all other purposes.

     Notwithstanding the foregoing, all Receipts shall initially be issued in global form for
book-entry settlement through DTC. The Company hereby appoints the Depositary acting through any
authorized officer thereof as its attorney-in-fact, with full power to delegate, for purposes of
executing any agreements, certifications or other instruments or documents necessary or desirable
in order to effect and maintain such Receipts for DTC eligibility. So long as the Receipts are
eligible for book-entry settlement with DTC, unless otherwise required by law, all Depositary
Shares shall be represented by a single receipt (the “Global Receipt”), which shall be deposited
with DTC (or its custodian) evidencing all such Depositary Shares and registered in the name of the
nominee of DTC (initially expected to be Cede & Co.). The Global Receipt shall be in such form and
shall bear such legend or legends as may be appropriate or required by DTC in order for it to
accept the Depositary Shares for its book-entry settlement system. Wells Fargo Bank, N.A. or such
other entity as is agreed to by DTC may hold the Global Receipt as custodian for DTC. Ownership of
beneficial interests in the Global Receipt shall be shown on, and the transfer of such ownership
shall be effected through, records maintained by (i) DTC or its nominee for such Global Receipt, or
(ii) institutions that have accounts with DTC.

     The Global Receipt shall be exchangeable for Definitive Receipts only if (i) DTC notifies the
Company at any time that it is unwilling or unable to continue to make its book-entry settlement
system available for the Receipts and a successor to DTC is not appointed by the Company within 90
days of the date the Company is so informed in writing or (ii) DTC notifies the Company at any time
that it has ceased to be a clearing agency registered under applicable law and

5

 

a successor to DTC is not appointed by the Company within 90 days of the date the Company is so informed in writing.
The Company shall provide written notice to the Depositary upon receipt of a notice described in
cause (i) or (ii) of the preceding sentence. Until such written notice is received by the
Depositary, the Depositary may presume conclusively for all purposes that the events
described in clause (i) and (ii) of the first sentence of this paragraph have not occurred.
If the beneficial owners of interests in Depositary Shares are entitled to exchange such interests
for Definitive Receipts as the result of an event described in clause (i), or (ii) of the first
sentence of this paragraph, then without unnecessary delay, the Depositary is hereby directed to
and shall provide written instructions to DTC to deliver to the Depositary for cancellation the
Global Receipt, and the Company shall instruct the Depositary in writing to execute and deliver to
the beneficial owners of the Depositary Shares previously evidenced by the Global Receipt
Definitive Receipts in physical form evidencing such Depositary Shares.

     Notwithstanding any other provision herein to the contrary, delivery of shares of Convertible
Preferred Stock and other property in connection with the withdrawal or conversion of Depositary
Shares will be made through DTC and in accordance with its procedures, unless the holder of the
relevant Receipt otherwise requests and such request is reasonably acceptable to the Depositary and
the Company. Upon any such withdrawal or conversion, if requested by the holder of the relevant
Receipt, the Company shall take any action reasonably requested by DTC in order for the securities
issuable upon conversion or the withdrawn shares of Convertible Preferred Stock, as the case may
be, to be eligible for settlement in DTC’s book-entry system.

     SECTION 2.02 Deposit of Convertible Preferred Stock; Execution and Delivery of Receipts in
Respect Thereof.

     Concurrently with the execution of this Deposit Agreement, the Company is delivering to the
Depositary a certificate or certificates, registered in the name of the Depositary and evidencing
1,265,000 shares of Convertible Preferred Stock, and from time to time the Company may deposit
additional certificates registered in the name of the Depositary evidencing shares of Convertible
Preferred Stock, in each case properly endorsed or accompanied, if required by the Depositary, by a
duly executed instrument of transfer or endorsement, in form satisfactory to the Depositary,
together with (i) all such certifications as may be required by the Depositary in accordance with
the provisions of this Deposit Agreement and (ii) a written order of the Company directing the
Depositary to execute and deliver to, or upon the written order of, the Person or Persons stated in
such order a Receipt or Receipts for the Depositary Shares representing such deposited Convertible
Preferred Stock registered in such names specified in such written order. Upon receipt of the
aforementioned 1,265,000 shares of Convertible Preferred Stock (together with any other shares of
Convertible Preferred Stock the Company may deliver) and related documentation the Depositary
agrees to hold such deposited Convertible Preferred Stock in an account to be established by the
Depositary at the Depositary Office or at such other office as the Depositary shall determine.

     If required by the Depositary, Convertible Preferred Stock presented for deposit by the
Company at any time, whether or not the register of stockholders of the Company is closed, shall
also be accompanied by an agreement or assignment, or other instrument satisfactory to the
Depositary, that will provide for the prompt transfer to the Depositary or its nominee of any

6

 

dividend or right to subscribe for additional Convertible Preferred Stock or to receive other
property that any Person in whose name the Convertible Preferred Stock is or has been registered
may thereafter receive upon or in respect of such deposited Convertible Preferred Stock, or in lieu
thereof such agreement of indemnity or other agreement as shall be satisfactory to the Depositary.

     Upon receipt by the Depositary of a certificate or certificates for Convertible Preferred
Stock deposited hereunder, together with the other documents specified above, and upon registering
such Convertible Preferred Stock in the name of the Depositary, the Depositary, subject to the
terms and conditions of this Deposit Agreement, shall execute and deliver to, or upon the order of,
the Person or Persons named in the written order delivered to the Depositary referred to in the
first paragraph of this Section 2.02, a Receipt or Receipts for the number of whole Depositary
Shares representing the Convertible Preferred Stock so deposited and registered in such name or
names as may be requested by such Person or Persons.

     The Depositary shall execute and deliver such Receipt or Receipts at the Depositary Office,
except that, at the request, risk and expense of any Person requesting such delivery, such delivery
may be made at such other place as may be designated by such Person. Other than in the case of
splits, combinations or other reclassifications affecting the Convertible Preferred Stock, or in
the case of dividends or other distributions of Convertible Preferred Stock, if any, there shall be
deposited hereunder not more than the number of shares constituting the Convertible Preferred Stock
as set forth in the Certificate of Designations, as such may be amended. To the extent that the
Company issues shares of Convertible Preferred Stock in excess of the amount set forth in the
Certificate of Designations as of the date hereof (which shares have been validly authorized by the
Company), the Company shall notify the Depositary of such issuance in writing. Unless and until
such notice is received by the Depositary, the Depositary may presume conclusively for all purposes
that the number of shares of Convertible Preferred Stock issued by the Company is not in excess of
the amount set forth in the Certificate of Designations as of the date hereof.

     The Company shall deliver to the Depositary from time to time such quantities of Receipts as
the Depositary may request to enable the Depositary to perform its obligations under this Deposit
Agreement.

     SECTION 2.03 No Redemption of Convertible Preferred Stock for Cash.

     The Convertible Preferred Stock shall not be subject to redemption by the Company or at the
option of any holder of Convertible Preferred Stock.

     SECTION 2.04 Registration and Transfer of Receipts.

     The Company hereby appoints the Registrar as the registrar and the Transfer Agent as the
transfer agent for the Receipts and the Registrar and Transfer Agent hereby accept such
appointments and, as such, each shall register on its books from time to time transfers of Receipts
upon any surrender thereof by a holder in person or by a duly authorized attorney, agent or
representative properly endorsed or accompanied by a properly executed instrument of transfer or
endorsement, together with evidence of the payment by the applicable party of any taxes or charges
as may be required by law. Upon such surrender, the Depositary shall execute a

7

 

new Receipt or Receipts and deliver the same to or upon the order of the Person entitled thereto evidencing the
same aggregate number of Depositary Shares evidenced by the Receipt or Receipts surrendered.
Notwithstanding anything contained in this Deposit Agreement to the contrary, neither the
Depositary, the Transfer Agent nor the Registrar shall have any duty or obligation under any
section of this Deposit Agreement which requires the payment of taxes or charges unless and until
it is satisfied that all such taxes and/or charges have been paid.

     SECTION 2.05 Combinations and Split-ups of Receipts.

     Upon surrender of a Receipt or Receipts at the Depositary Office or such other office as the
Depositary may designate for the purpose of effecting a split-up or combination of Receipts, and
the receipt by it of all necessary information and documents, subject to the terms and conditions
of this Deposit Agreement, the Depositary shall execute and deliver a new Receipt or Receipts in
the authorized denominations requested evidencing the same aggregate number of Depositary Shares
evidenced by the Receipt or Receipts surrendered.

     SECTION 2.06 Surrender of Receipts and Withdrawal of Convertible Preferred Stock.

     Any holder of a Receipt or Receipts may withdraw any number of whole shares of deposited
Convertible Preferred Stock represented by the Depositary Shares evidenced by such Receipt or
Receipts and all money and other property, if any, represented by such Depositary Shares at any
time by surrendering such Receipt or Receipts at the Depositary Office or at such other office as
the Depositary may designate for such withdrawals. Upon such surrender, upon payment of all taxes
and charges in connection with such surrender and withdrawal of Convertible Preferred Stock that
are not payable by the Company pursuant to Section 3.05 or 5.07, and subject to the terms and
conditions of this Deposit Agreement, without unreasonable delay, the Depositary shall deliver to
such holder, or to the Person or Persons designated by such holder as hereinafter provided, the
number of whole shares of such Convertible Preferred Stock and all such money and other property,
if any, represented by the Depositary Shares evidenced by the Receipt or Receipts so surrendered
for withdrawal, but holders of such whole shares of Convertible Preferred Stock will not thereafter
be entitled to deposit such Convertible Preferred Stock hereunder or to receive Depositary Shares
therefor. If the Receipt or Receipts delivered by the holder to the Depositary in connection with
such withdrawal shall evidence a number of Depositary Shares in excess of the number of Depositary
Shares representing the number of whole shares of deposited Convertible Preferred Stock to be
withdrawn, the Depositary shall at the same time, in addition to such number of whole shares of
Convertible Preferred Stock and such money and other property, if any, to be withdrawn, deliver to
such holder, or upon his order, a new Receipt or Receipts evidencing such excess number of
Depositary Shares. Delivery of such Convertible Preferred Stock and such money and other property
being withdrawn may be made by the delivery of such certificates, documents of title and other
instruments as the Depositary may deem appropriate, which, if required by the Depositary, shall be
properly endorsed or accompanied by proper instruments of transfer. If the deposited Convertible
Preferred Stock and the money and other property being withdrawn are to be delivered to a Person or
Persons other than the record holder of the Receipt or Receipts being surrendered for withdrawal of
Convertible Preferred Stock, such holder shall execute and deliver to the Depositary a written

8

 

order so directing the Depositary and the Depositary may require that the Receipt or Receipts
surrendered by such holder for withdrawal of such shares of Convertible Preferred Stock be properly
endorsed in blank or accompanied by a properly executed instrument of transfer or endorsement in
blank.

     The Depositary shall deliver the deposited Convertible Preferred Stock and the money and other
property, if any, represented by the Depositary Shares evidenced by Receipts surrendered for
withdrawal at the Depositary Office, except that, at the request, risk and expense of the holder
surrendering such Receipt or Receipts and for the account of the holder thereof, such delivery
may be made at such other place as may be designated by such holder.

     SECTION 2.07 Limitations on Execution and Delivery, Transfer, Split-up. Combination,
Surrender and Exchange of Receipts.

     As a condition precedent to the execution and delivery, transfer, split-up, combination,
surrender or exchange of any Receipt, the Depositary, any of the Depositary’s Agents or the Company
may require any or all of the following: (i) payment to it of a sum sufficient for the payment (or,
in the event that the Company shall have made such payment, the reimbursement to it) of any tax or
other charge and stock transfer or registration fee with respect thereto (including any such tax or
charge with respect to the Convertible Preferred Stock being deposited or withdrawn); (ii) the
production of proof satisfactory to it as to the identity and genuineness of any signature (or the
authority of any signature); and (iii) compliance with such regulations, if any, as the Depositary
or the Company may establish consistent with the provisions of this Deposit Agreement as may be
required by any securities exchange on which the deposited Convertible Preferred Stock, the
Depositary Shares or the Receipts may be included for quotation or listing.

     The deposit of Convertible Preferred Stock may be refused, the delivery of Receipts against
Convertible Preferred Stock may be suspended, the transfer of Receipts may be refused, and the
transfer, split-up, combination, surrender or exchange of outstanding Receipts may be suspended (i)
during any period when the register of stockholders of the Company is closed or (ii) if any such
action is deemed reasonably necessary or advisable by the Depositary, any of the Depositary’s
Agents or the Company at any time or from time to time because of any requirement of law or of any
government or governmental body or commission, or under any other provision of this Deposit
Agreement.

     SECTION 2.08 Lost Receipts, etc.

     In case any Receipt shall be mutilated and surrendered to the Depositary or destroyed or lost
or stolen, the Depositary shall execute and deliver a Receipt of like form and tenor in exchange
and substitution for such mutilated Receipt or in lieu of and in substitution for such destroyed,
lost or stolen Receipt; provided, that the holder thereof shall have (a) filed with the
Depositary a request for such execution and delivery before the Depositary has notice that the
Receipt has been acquired by a protected purchaser and (b) provided an indemnity bond to the
Depositary and (c) satisfied any other reasonable requirements imposed by the Depositary.

9

 

     SECTION 2.09 Cancellation and Destruction of Surrendered Receipts.

     All Receipts surrendered to the Depositary or any of the Depositary’s Agents shall be
cancelled by the Depositary, including Receipts surrendered in connection with any conversion of
the Convertible Preferred Stock in accordance with the Certificate of Designations, subject, in the
case of conversion, to the right of record holders of such Receipts to receive (a) the
distributions in respect of such conversion under Section 4.01 or 4.02 and (b) new Receipts
evidencing the Depositary Shares as to which such conversion was not effected under SECTION 2.10 or
SECTION 2.11. Except as prohibited by applicable law or regulation, the Depositary is
authorized, but not required, to destroy such Receipts so cancelled. In addition, following
the Mandatory Conversion of outstanding Convertible Preferred Stock pursuant to Section 6 of the
Certificate of Designations, all Receipts evidencing Depositary Shares corresponding to the
Convertible Preferred Stock so converted shall be deemed cancelled on the relevant Conversion Date,
subject to the right of record holders of such Receipts to receive (a) the distributions in respect
of such conversion under Section 4.01 or 4.02 and (b) new Receipts evidencing the Depositary Shares
as to which such Mandatory Conversion was not effected under SECTION 2.11.

     SECTION 2.10 Conversion at the Option of Holders after Satisfaction of Authorized Share
Condition.

     Subject to the terms and conditions of this Deposit Agreement, provided that the Authorized
Share Condition is satisfied, the record holder of any Receipt may, at any time that Convertible
Preferred Stock may be converted pursuant to Section 7 or 8 of the Certificate of Designations,
surrender such Receipt at the Depositary Office or such other office as the Depositary may from
time to time designate for such purpose together with a notice of conversion properly completed and
duly executed and a proper assignment of such Receipt to the Company or the Transfer Agent or in
blank to the Depositary or any of the Depositary’s Agents, thereby instructing the Depositary to
cause the conversion of a specified number (the “Conversion Number”) of whole shares of Convertible
Preferred Stock represented by the Depositary Shares evidenced by such Receipt in accordance with
the applicable provisions in the Certificate of Designations, (as confirmed in writing by the
Company) and specifying the name in which such holder desires the shares of Common Stock or units
of Exchange Property issuable upon conversion to be registered and specifying payment instructions.

     The Depositary shall be deemed to have no knowledge of the Conversion Number unless and until
it shall have actually received written notice thereof from the Company, and shall have no duty or
obligation to investigate or inquire as to whether any Conversion Number contained in any such
written notice is accurate, or whether it complies with the Certificate of Designations. If
specified by the holder in such notice of conversion that shares of Common Stock or other
securities issuable upon conversion of the Depositary Shares shall be issued to a Person other than
the holder surrendering the Receipt for the Depositary Shares being converted, then the holder
shall pay or cause to be paid any transfer or similar taxes payable in connection with the shares
of Common Stock or other securities so issued that are not payable by the Company pursuant to the
Certificate of Designations or Section 3.05. In addition, the holder shall provide any other
transfer forms, tax forms or other relevant documentation required and

10

 

specified by the Transfer Agent for the Convertible Preferred Stock, if necessary, to effect the conversion.

     Upon fulfillment of the requirements in the foregoing paragraph, the Depositary is hereby
authorized and instructed to, and shall, as promptly as practicable, (a) give written notice to the
Transfer Agent for the Convertible Preferred Stock of (i) the Conversion Number (as specified in
writing by the Company), (ii) the number of shares of Common Stock or units of Exchange Property to
be delivered upon conversion of such Conversion Number of shares of Convertible Preferred Stock
(each as specified in writing by the Company), (iii) the amount of immediately available funds (as
specified in writing by the Company), if any, to be delivered to the holder of
such Receipts in payment of any fractional shares of Common Stock or other securities
otherwise issuable and (iv) the amount of cash or other property (as specified in writing by the
Company), if any, to be delivered to the holder of such Receipts in respect of accrued and unpaid
dividends payable by the Company upon conversion of such shares of Convertible Preferred Stock
pursuant to the Certificate of Designations, (b) cancel Receipts or, if a Registrar for Receipts
(other than the Depositary) shall have been appointed, cause such Registrar to cancel such Receipt,
and (c) surrender to the Transfer Agent for the Convertible Preferred Stock or any other authorized
agent of the Company for conversion in accordance with the Certificate of Designations (as
specified in writing by the Company) certificates for the Convertible Preferred Stock represented
by Depositary Shares as evidenced by such Receipt, together with delivery to the Company or the
appropriate agent of the Company (pursuant to written instructions from the Company) any other
information or payment required by the Certificate of Designations (as specified in writing by the
Company) for such conversion, and such certificates shall thereupon be canceled by the Transfer
Agent or other authorized agent. The Depositary shall have no duty or obligation to investigate or
inquire as to whether the Company provided it with the correct number of shares of Common Stock or
units of Exchange Property to be delivered upon any conversion, or the correct amount of funds,
cash or other property to be delivered in payment of any fractional shares of Common Stock or other
securities otherwise issuable or in respect of accrued and unpaid dividends payable by the Company
upon any conversion, and the Depositary may rely conclusively on any such information provided by
the Company.

     As promptly as practicable after the Transfer Agent or other authorized agent of the Company
has received such certificates from the Depositary, (a) the Company shall cause to be furnished to
the Depositary (i) a certificate or certificates evidencing such number of shares of Common Stock
or securities included in the Exchange Property, as the case may be, to be delivered upon
conversion of the Conversion Number of shares of Convertible Preferred Stock and to be delivered in
respect of accrued and unpaid dividends payable by the Company upon conversion of such shares of
Convertible Preferred Stock pursuant to the Certificate of Designations, if any, (ii) such amount
of immediately available funds, if any, to be delivered in respect of accrued and unpaid dividends
payable by the Company upon conversion of such shares of Convertible Preferred Stock
pursuant to the Certificate of Designations, and (iii) such amount of immediately available funds, if any, to
be delivered in lieu of receiving fractional shares and any other property included in the Exchange
Property, in each case as specified in a written notice from the Company and (b) the Depositary is
hereby authorized and instructed to, and shall, deliver at the Depositary Office, (i) a certificate
or certificates evidencing the sum of (x) the number of shares of Common Stock into which the
Convertible Preferred Stock

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represented by Depositary Shares as evidenced by such Receipt has been
converted and (y) the number of shares of Common Stock or securities included in the Exchange
Property, as the case may be, payable by the Company upon such conversion on account of accrued and
unpaid dividends pursuant to the Certificate of Designations to the extent (if any) that the
Company has elected to pay such accrued and unpaid dividends in shares of Common Stock, in each
case as specified in writing by the Company and which has been provided by the Company, (ii) any
other property included in the Exchange Property (as specified in writing by the Company and which
has been provided by the Company) and (iii) an amount of cash equal to the sum of (x) the amount of
cash payable by the Company upon such conversion on account of accrued and unpaid dividends
pursuant to the Certificate of Designations to the extent (if any) that the Company has elected to
pay such dividends in cash and (y) the amount of cash payable by the
Company in lieu of delivering fractional shares of Common Stock or other securities pursuant
to Section 10 of the Certificate of Designations, in each case as specified in writing by the
Company and which has been provided by the Company.

     If the holder surrenders a Receipt in connection with a conversion of Convertible Preferred
Stock pursuant to Section 7 of the Certificate of Designations and the applicable Conversion Date
occurs during the period from the close of business on a Regular Record Date for any declared
dividend to the open of business on the immediately following Dividend Payment Date, such holder
shall remit to the Depositary with such Receipt, for payment to the Company, an amount of funds
equal to the dividend for the then-current Dividend Period with respect to such shares of
Convertible Preferred Stock computed and paid as set forth in the Certificate of Designations, to
the extent required thereunder. The Depositary shall have no duty or obligation to investigate or
inquire whether Receipts representing shares of Convertible Preferred Stock are surrendered for
conversion between the close of business on a Regular Record Date and the open of business on the
immediately following Dividend Payment Date, or whether the amount of funds, if any, submitted by
the holder of the Receipts is equal to the dividend payable on the related Convertible Preferred
Stock on such Dividend Payment Date or whether such amount was computed and paid as set forth in
the Certificate of Designations.

     In the event that a holder of a surrendered Receipt elects to convert less than all Depositary
Shares evidenced by such Receipt under this Section 2.10, upon such conversion, the Depositary
shall, if requested in writing and provided with all necessary information and documents,
authenticate, countersign and deliver to such holder thereof, at the expense of the Company, a new
Receipt evidencing the Depositary Shares as to which such conversion was not effected.

     Delivery of shares of Common Stock and other property following a conversion pursuant to this
Section 2.10 may be made by the delivery of such certificates, documents of title and other
instruments as the Depositary may deem appropriate, which, if required by the Depositary, shall be
properly endorsed or accompanied by proper instruments of transfer. If such delivery is to be made
otherwise than at the Depositary Office, such delivery shall be made, as hereinafter provided,
without unreasonable delay, at the risk of any holder surrendering Receipts, and for the account of
such holder, to such place designated in writing by such holder.

     SECTION 2.11 Conversion prior to Satisfaction of Authorized Share Condition.

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     Subject to the terms and conditions of this Deposit Agreement, if the Authorized Share
Condition has not been satisfied on the relevant Conversion Date but the Company has sufficient
Designated Shares to convert all shares of Convertible Preferred Stock tendered for conversion on
such date in accordance with the applicable provisions in the Certificate of Designations, then any
conversion of Convertible Preferred Stock represented by the Depositary Shares shall be effected in
accordance with SECTION 2.09 and SECTION 2.10, as applicable.

     If the Authorized Share Condition has not been satisfied on the relevant Conversion Date and
the Company does not have sufficient Designated Shares to convert all shares of Convertible
Preferred Stock tendered for conversion on such date in accordance with the applicable provisions
in the Certificate of Designations, then notwithstanding the forgoing, the Depositary,
at the instruction of the Company, shall select, for each record holder of a Receipt,
Depositary Shares to be converted in such amounts as are, as nearly as practicable, in proportion
to the Conversion Number specified by each such holder (or in the case of a Mandatory Conversion,
the number of outstanding Depositary Shares held by each such holder). If such conversion on a pro
rata basis is not practical or cannot be implemented under DTC’s then-existing procedures, the
Depositary, at the instruction of the Company, shall select the Depositary Shares to be converted
(in whole shares) by lot or by another method it considers fair and appropriate so long as such
method is not prohibited by the rules of any stock exchange or quotation system on which the
Depositary Shares may then be traded or quoted. Any conversion of Depositary Shares selected by the
Depository shall be effected, as closely as practicable, in accordance with the procedures set
forth in SECTION 2.09 and SECTION 2.10, as applicable.

     In the event that less than all Depositary Shares evidenced by such Receipt are selected for
conversion by the Depositary upon a Mandatory Conversion or Optional Conversion, upon such
conversion, the Depositary shall, if requested in writing and provided with all necessary
information and documents, authenticate, countersign and deliver to such holder thereof, at the
expense of the Company, a new Receipt evidencing the Depositary Shares as to which such conversion
was not effected.

     In the event that less than all Depositary Shares evidenced by such Receipt are selected for
conversion by the Depositary upon a Fundamental Change Conversion, the Depositary shall, if
requested in writing and provided with all necessary information and documents, authenticate,
countersign and deliver to such holder thereof, at the expense of the Company, either a certificate
representing shares of Fundamental Change Preferred Stock in proportion to the liquidation
preference of the Depositary Shares as to which such conversion was not effected or a new Receipt
evidencing a new series of depositary shares representing such shares of Fundamental Change
Preferred Stock.

     SECTION 2.12 Fractional Shares.

     No fractional shares of Common Stock or any other security will be issued to a holder of the
Depositary Shares upon conversion or as a result of any distribution pursuant to SECTION 2.10,
SECTION 2.11 or Section 4.02. If more than one share of Convertible Preferred Stock represented by
Depositary Shares as evidenced by Receipts held by the same holder shall be surrendered for
conversion or entitled to a distribution pursuant to Section 4.02 at one time, the

13

 

number of full shares of Common Stock or other security issuable upon conversion thereof or upon the relevant
distribution, as applicable, shall be computed on the basis of the aggregate number of shares of
Convertible Preferred Stock so surrendered or entitled to such distribution. Whenever a payment in
lieu of fractional shares is to be made by the Depositary, the Company shall (i) promptly prepare
and deliver to the Depositary a certificate setting forth in reasonable detail the facts related to
such payments and the prices and/or formulas utilized in calculating such payments, and (ii)
provide sufficient cash to the Depositary in the form of fully collected funds to make such
payments. The Depositary shall be fully protected in relying upon such a certificate and shall
have no duty with respect to, and shall not be deemed to have knowledge of, any payment in lieu of
fractional shares under any Section of this Deposit Agreement relating to the payment of fractional
shares unless and until the Depositary shall have received such a certificate and sufficient cash.
If the amount of cash required to be distributed by the Depositary in lieu of fractional shares exceeds the amount of cash received by the Depositary in lieu of
fractional shares pursuant to Section 11 of the Certificate of Designations, then the Depositary,
any of the Depositary’s Agents or any other entity as so instructed in writing by the Company, on
behalf of all holders of Receipts entitled to fractional shares shall, as soon as practicable after
the distribution date, sell the minimum number of such shares on the open market such that each
such record holder will be entitled to receive, in lieu of a fractional share, an amount in cash,
rounded to the nearest cent, equal to such record holder’s proportionate interest in the net
proceeds from such sale. The Depositary shall have no duty or obligation to investigate or inquire
whether the amounts of funds paid by the Company to the Depositary for the benefit of any holder in
connection with such a conversion are correct.

     SECTION 2.13 No Pre-Release.

     The Depositary shall not deliver any deposited Convertible Preferred Stock represented by
Depositary Shares evidenced by Receipts prior to the receipt and cancellation of such Receipts or
other similar method used with respect to Receipts held by DTC. The Depositary shall not issue any
Receipts prior to the receipt by the Depositary of the Convertible Preferred Stock corresponding to
Depositary Shares evidenced by such Receipts. At no time will any Receipts be outstanding if such
Receipts do not evidence Depositary Shares representing Convertible Preferred Stock deposited with
the Depositary, subject to the rights of holders to receive distributions upon conversion of the
deposited Convertible Preferred Stock pursuant to Section 4.01 or 4.02.

ARTICLE 3

CERTAIN OBLIGATIONS OF HOLDERS OF RECEIPTS AND THE COMPANY

     SECTION 3.01 Filing Proofs, Certificates and Other Information.

     Any Person presenting Convertible Preferred Stock for deposit or any holder of a Receipt may
be required from time to time to file with the Depositary such proof of residence, guarantee of
signature or other information and to execute such certificates as the Depositary may reasonably
deem necessary or proper or the Company may reasonably require by written request to the
Depositary. The Depositary or the Company may withhold or delay the delivery of any Receipt, the
transfer or exchange of any Receipt, the withdrawal of the deposited Convertible

14

 

Preferred Stock represented by the Depositary Shares evidenced by any Receipt, the distribution of any dividend or
other distribution or the sale of any rights or of the proceeds thereof, until such proof or other
information is filed, or such certificates are executed.

     SECTION 3.02 Payment of Fees and Expenses.

     Holders of Receipts shall be obligated upon any transfer of Receipts or withdrawal of
deposited Convertible Preferred Stock to provide evidence satisfactory to the Depositary that any
applicable taxes or other charges not payable by the Company pursuant to Section 3.05 have been
paid. Until such payment is made, transfer of any Receipt or any withdrawal of the Convertible
Preferred Stock or money or other property, if any, represented by the Depositary Shares evidenced
by such Receipt may be refused, any dividend or other distribution may be withheld, and any part or
all of the Convertible Preferred Stock or other property represented by the Depositary Shares evidenced by such Receipt may be sold for the account of the holder
thereof (after attempting by reasonable means to notify such holder a reasonable number of days
prior to such sale). Any dividend or other distribution so withheld and the proceeds of any such
sale may be applied to any payment of such taxes or other charges, the holders remaining liable for
any deficiency.

     SECTION 3.03 Representations and Warranties as to Convertible Preferred Stock.

     In the case of the initial deposit of the Convertible Preferred Stock hereunder, the Company
represents and warrants that such Convertible Preferred Stock and each certificate therefor are
validly issued, fully paid and nonassessable. Such representations and warranties shall survive
the deposit of the Convertible Preferred Stock and the issuance of Receipts.

     SECTION 3.04 Representation and Warranty as to Receipts and Depositary Shares.

     The Company hereby represents and warrants that the Receipts, when issued, will evidence legal
and valid interests in the Depositary Shares and each Depositary Share will represent a legal and
valid 1/20th fractional interest in a share of deposited Convertible Preferred Stock.
Such representation and warranty shall survive the deposit of the Convertible Preferred Stock and
the issuance of Receipts evidencing the Depositary Shares.

     SECTION 3.05 Taxes.

     The Company will pay any and all stock transfer, documentary, stamp and similar taxes and
charges that may be payable in respect of any issuance or delivery of Depositary Shares or shares
of Convertible Preferred Stock, Common Stock or other securities issued on account of Depositary
Shares or certificates representing such shares or securities. The Company will not, however, be
required to pay any such tax or charge that may be payable in respect of any transfer involved in
the issuance or delivery of shares of Convertible Preferred Stock, Depositary Shares, shares of
Common Stock or other securities in a name other than that in which the Depositary Shares with
respect to which such shares or other securities are issued or delivered were registered, or in
respect of any payment to any Person other than a payment to the registered holder thereof, and
will not be required to make any such issuance, delivery or payment unless

15

 

and until the Person otherwise entitled to such issuance, delivery or payment has paid to the Company the amount of any
such tax or charge or has established, to the satisfaction of the Company and the Depositary , that
such tax or charge has been paid or is not payable.

     SECTION 3.06 Listing.

     The Company hereby covenants and agrees that it will apply to list the Depositary Shares on
the New York Stock Exchange and it expects the trading on the New York Stock Exchange to begin
within five days of the date hereof. In addition, upon such listing, the Company hereby covenants
and agrees that it will use reasonable best efforts to keep the Depositary Shares listed on the New
York Stock Exchange.

ARTICLE 4

THE CONVERTIBLE PREFERRED STOCK; NOTICES

     SECTION 4.01 Cash Distributions.

     Whenever the Depositary shall receive (i) any cash dividend or other cash distribution on the
deposited Convertible Preferred Stock (other than any cash distribution in respect of accrued and
unpaid dividends on account of any conversion of the Convertible Preferred Stock pursuant to
Section 6, 7 or 8 of the Certificate of Designations), (as specified in writing by the Company) the
Depositary shall, subject to Section 3.02, distribute on the date it receives such dividend or
distribution or as soon as practicable thereafter to record holders of Receipts as of the record
date fixed pursuant to Section 4.04 such amounts of such dividend or distribution as are, as nearly
as practicable, in proportion to the respective numbers of Depositary Shares evidenced by the
Receipts held by such holders or (ii) any cash distribution in respect of accrued and unpaid
dividends on account any conversion of the deposited Convertible Preferred Stock pursuant to
Section 6, 7 or 8 of the Certificate of Designations, (as specified in writing by the Company), the
Depositary shall, subject to Section 3.02, distribute on the date that it receives such
distribution or as soon as practicable thereafter to holders of Receipts as of the applicable
Conversion Date such amounts of such cash distribution as are, as nearly as practicable, in
proportion to the respective numbers of Depositary Shares entitled to receive such distribution
evidenced by the Receipts held by such holders; provided, however, in either case,
that in case the Company or the Depositary shall be required by law to and shall withhold from any
cash dividend or other cash distribution in respect of the Convertible Preferred Stock represented
by the Receipts held by any holder an amount on account of taxes or as otherwise required by law,
regulation or court process, the amount made available for distribution or distributed in respect
of Depositary Shares represented by such Receipts subject to such withholding shall be reduced
accordingly. The Depositary, however, shall distribute or make available for distribution, as the
case may be, only such amount as can be distributed without attributing to any holder of Receipts a
fraction of one cent. Any such fractional amounts shall be rounded down to the nearest whole cent
and so distributed to registered holders entitled thereto and any balance not so distributable
shall be held by the Depositary (without liability for interest thereon) and shall be added to and
be treated as part of the next succeeding distribution to record holders of such Receipts. Each
holder of a Receipt shall provide the Depositary with a properly completed Form W-8 (i.e., Form
W-8BEN, Form W-8EXP, Form W-8IMY, Form W8ECI or another applicable Form W-8) or Form W-9

16

 

(which form shall set forth such holder’s certified taxpayer identification number if requested on such
form), as may be applicable. Each holder of a Receipt acknowledges that, in the event of
non-compliance with the preceding sentence the Internal Revenue Code of 1986 as amended, may
require withholding by the Depositary of a portion of any of the distribution to be made hereunder.

     SECTION 4.02 Distributions Other Than Cash.

     Whenever the Depositary shall receive any distribution other than cash on the deposited
Convertible Preferred Stock (other than any such distribution in connection with any conversion of
the Convertible Preferred Stock pursuant to Section 6, 7 or 8 of the Certificate of Designations,
as specified in writing by the Company, including on account of accrued and unpaid dividends), the
Depositary shall, subject to Section 3.02, distribute on the date it receives such distribution or
as soon as practicable thereafter to record holders of Receipts as of the record date fixed
pursuant to Section 4.04 such amounts of the securities or property received by it as are, as
nearly as practicable, in proportion to the respective numbers of Depositary Shares
evidenced by the Receipts held by such holders, in any manner that the Depositary and the
Company may deem equitable and practicable for accomplishing such distribution. Whenever the
Depositary shall receive any distribution other than cash on the deposited Convertible Preferred
Stock in connection with any conversion of the Convertible Preferred Stock pursuant to Section 6, 7
or 8 of the Certificate of Designations (as specified in writing by the Company), including on
account of accrued and unpaid dividends, the Depositary shall, subject to Section 3.02, distribute
on the date it receives such distribution or as soon as practicable thereafter, to record holders
of Receipts as of the applicable Conversion Date such amounts of the securities or property
received by it as are, as nearly as practicable, in proportion to the respective numbers of
Depositary Shares entitled to receive such distribution evidenced by the Receipts held by such
holders, in any manner that the Depositary and the Company may deem equitable and practicable for
accomplishing such distribution. The Person or Persons entitled to receive any Common Stock
issuable upon any conversion shall be treated for all purposes as the record holder(s) of such
shares of Common Stock as of the close of business on the applicable Conversion Date.

     Delivery of shares of Common Stock and other property pursuant to this Section 4.02 may be
made by the delivery of such certificates, documents of title and other instruments as the
Depositary may deem appropriate, which, if required by the Depositary, shall be properly endorsed
or accompanied by proper instruments of transfer. If such delivery is to be made otherwise than at
the Depositary Office, such delivery shall be made, as hereinafter provided, without unreasonable
delay, at the risk of any holder surrendering Receipts, and for the account of such holder, to such
place designated in writing by such holder.

     SECTION 4.03 Subscription Rights, Preferences or Privileges.

     If the Company shall at any time offer or cause to be offered to the Persons in whose names
deposited Convertible Preferred Stock is registered on the books of the Company any rights,
preferences or privileges to subscribe for or to purchase any securities or any rights, preferences
or privileges of any other nature, such rights, preferences or privileges shall in each such
instance be made available by the Depositary to the record holders of Receipts in such

17

 

manner as the Company shall instruct (including by the issue to such record holders of warrants representing
such rights, preferences or privileges); provided, however, that (a) if at the time
of issue or offer of any such rights, preferences or privileges the Company determines upon advice
of its legal counsel that it is not lawful or feasible to make such rights, preferences or
privileges available to the holders of Receipts (by the issue of warrants or otherwise) or (b) if
and to the extent instructed by holders of Receipts who do not desire to exercise such rights,
preferences or privileges, the Depositary shall then, if so directed by the Company and provided
with an opinion of counsel that such rights, preferences or privileges have been registered under
the Securities Act or do not need to be registered and that if Depositary undertakes such actions
it will not be deemed an “issuer” under the Securities Act or an “investment company” under the
Investment Company Act of 1940, as amended, and if applicable laws or the terms of such rights,
preferences or privileges so permit, sell such rights, preferences or privileges of such holders at
public or private sale, at such place or places and upon such terms as it may deem proper. The
Company covenants that it will not offer or cause to be offered any such rights, preferences or
privileges unless it is able to provide such an opinion of counsel; provided that this
provision is solely for the benefit of the holders and does not constitute a waiver of any rights
that the holders may have under the Certificate of Incorporation, applicable law or
otherwise. The net proceeds of any such sale shall, subject to Section 3.01 and Section 3.02,
be distributed by the Depositary to the record holders of Receipts entitled thereto as provided by
Section 4.01 in the case of a distribution received in cash. The Depositary shall not make any
distribution of such rights, preferences or privileges, unless the Company shall have provided to
the Depositary an opinion of counsel stating that such rights, preferences or privileges have been
registered under the Securities Act or do not need to be registered.

     If registration under the Securities Act of the securities to which any rights, preferences or
privileges relate is required in order for holders of Receipts to be offered or sold the securities
to which such rights, preferences or privileges relate, the Company agrees that it will promptly
notify the Depositary of such requirement that it will promptly file a registration statement
pursuant to the Securities Act with respect to such rights, preferences or privileges and
securities and use its commercially reasonable efforts and take all steps available to it to cause
such registration statement to become effective sufficiently in advance of the expiration of such
rights, preferences or privileges to enable such holders to exercise such rights, preferences or
privileges. In no event shall the Depositary make available to the holders of Receipts any right,
preference or privilege to subscribe for or to purchase any securities unless and until such a
registration statement shall have become effective or unless the offering and sale of such
securities to such holders are exempt from registration under the provisions of the Securities Act
and the Company shall have provided to the Depositary an opinion of counsel to such effect.

     If any other action under the law of any jurisdiction or any governmental or administrative
authorization, consent or permit is required in order for such rights, preferences or privileges to
be made available to holders of Receipts, the Company agrees that it will promptly notify the
Depositary of such requirement and to use its commercially reasonable efforts to take such action
or obtain such authorization, consent or permit sufficiently in advance of the expiration of such
rights, preferences or privileges to enable such holders to exercise such rights, preferences or
privileges.

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     The Depositary will not be deemed to have any knowledge of any item for which it is
supposed to receive notification under any Section of this Deposit Agreement unless and until it
has received such notification.

     SECTION 4.04 Notice of Dividends; Fixing of Record Date for Holders of Receipts.

     Whenever any cash dividend or other cash distribution shall become payable, any distribution
other than cash shall be made, or any rights, preferences or privileges shall at any time be
offered, with respect to the deposited Convertible Preferred Stock, or whenever the Depositary
shall receive notice of any meeting at which holders of such Convertible Preferred Stock are
entitled to vote or of which holders of such Convertible Preferred Stock are entitled to notice,
the Depositary shall in each such instance fix a record date (which shall be the same date as the
record date fixed by the Company with respect to the Convertible Preferred Stock) for the
determination of the holders of Receipts who shall be entitled to receive such dividend,
distribution, rights, preferences or privileges or the net proceeds of the sale thereof, or to vote
at such meeting.

     SECTION 4.05 Voting Rights.

     Upon receipt from the Company of notice of any meeting at which the holders of deposited
Convertible Preferred Stock are entitled to vote (including matters submitted to holders of the
Common Stock as set forth in the Certificate of Designations), the Depositary shall, if requested
in writing and provided with all necessary information and documents, as soon as practicable
thereafter, mail to the record holders of Receipts a notice, which shall be provided by the Company
and which shall contain (i) such information as is contained in such notice of meeting, (ii) a
statement that the holders of Receipts at the close of business on a specified record date fixed
pursuant to Section 4.04 will be entitled, subject to any applicable provision of law, to instruct
the Depositary as to the exercise of the voting rights pertaining to the amount of Convertible
Preferred Stock represented by their respective Depositary Shares and (iii) a brief statement as to
the manner in which such instructions may be given. Upon the written request of the holders of
Receipts on such record date, (which shall be the same date as the record date fixed by the Company
with respect to the Convertible Preferred Stock), the Depositary shall insofar as practicable vote
or cause to be voted, in accordance with the instructions set forth in such requests, the maximum
number of whole shares of Convertible Preferred Stock represented by the Depositary Shares
evidenced by all Receipts as to which any particular voting instructions are received. To the
extent any such instructions request the voting of a fractional interest of a share of deposited
Convertible Preferred Stock, the Depositary shall aggregate such interest with all other fractional
interests resulting from requests with the same voting instructions and shall vote the number of
whole votes resulting from such aggregation in accordance with the instructions received in such
requests. The Company hereby agrees to take all reasonable action that may be deemed necessary by
the Depositary in order to enable the Depositary to vote such Convertible Preferred Stock or cause
such Convertible Preferred Stock to be voted in accordance with the instructions received by the
Depositary. In the absence of specific instructions from the holder of a Receipt, the Depositary
will not vote the shares of Convertible Preferred Stock that are represented by the Depositary
Shares evidenced by such Receipt.

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     SECTION 4.06 Changes Affecting Convertible Preferred Stock and Reorganization Events.

     Upon any change in liquidation preference, par or stated value, split-up, combination or any
other reclassification of the Convertible Preferred Stock, any Reorganization Event or any exchange
of the Convertible Preferred Stock for cash, securities or other property, the Depositary shall,
upon the written instructions of the Company setting forth any of the following adjustments, (i)
reflect such adjustments in the Depositary’s books and records in (a) the fraction of an interest
represented by one Depositary Share in one share of Convertible Preferred Stock and (b) the ratio
of the conversion rate per Depositary Share to the conversion rate of a share of Convertible
Preferred Stock as may be required by or as is consistent with the provisions of the Certificate of
Designations to fully reflect the effects of such change in liquidation preference, par or stated
value, split-up, combination or other reclassification of Convertible Preferred Stock, of such
Reorganization Event or of such exchange and (ii) subject to the last sentence of this Section
4.06, treat any shares of stock or other securities or property (including cash) that shall be
received by the Depositary in exchange for or in respect of the Convertible Preferred Stock as new
deposited property under this Deposit Agreement, and Receipts then outstanding shall thenceforth
represent the proportionate interests of holders thereof in the new deposited property so received
in exchange for or in respect of such Convertible Preferred Stock. In any such case the Depositary
may, upon the receipt of written request of the Company, execute and deliver additional Receipts,
or may call for the surrender of all outstanding Receipts to be exchanged for new Receipts
specifically describing such new deposited property. Notwithstanding the foregoing, the Common
Stock or other Exchange Property issuable upon conversion of the Convertible Preferred Stock
pursuant to Section 5, 6 or 7 of the Certification of Designations (or their successors) shall not
be treated as new deposited property under this Deposit Agreement and instead the provisions in
Section 2.10 and Section 4.02 shall apply.

     SECTION 4.07 Inspection of Reports.

     The Depositary shall make available for inspection by holders of Receipts at the Depositary
Office and at such other places as it may from time to time deem advisable during normal business
hours any reports and communications received from the Company that are both received by the
Depositary as the holder of deposited Convertible Preferred Stock and made generally available to
the holders of the Convertible Preferred Stock. In addition, the Depositary shall transmit, upon
written request by the Company, certain notices and reports to the holders of Receipts as provided
in Section 5.05.

     SECTION 4.08 Lists of Receipt Holders.

     Promptly upon request from time to time by the Company, the Registrar shall furnish to the
Company a list, as of a recent date specified by the Company, of the names, addresses and holdings
of Depositary Shares of all Persons in whose names Receipts are registered on the books of the
Registrar.

     SECTION 4.09 Withholding.

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     Notwithstanding any other provision of this Deposit Agreement, in the event that the
Depositary determines that any distribution in property is subject to any tax or other charge which
the Depositary is obligated by law to withhold, the Depositary may dispose of, by public or private
sale, all or a portion of such property in such amounts and in such manner as the Depositary deems
necessary and practicable to pay such taxes, and the Depositary shall distribute the net proceeds
of any such sale or the balance of any such property after deduction of such taxes to the holders
of Receipts entitled thereto in proportion to the number of Depositary Shares held by them,
respectively; provided, however, that in the event the Depositary determines that
such distribution of property is subject to withholding tax only with respect to some but not all
holders of Receipts, the Depositary will use its best efforts (i) to sell only that portion of such
property distributable to such holders that is required to generate sufficient proceeds to pay such
withholding tax and (ii) to effect any such sale in such a manner so as to avoid affecting the
rights of any other holders of Receipts to receive such distribution in property.

ARTICLE 5

THE DEPOSITARY AND THE COMPANY

     SECTION 5.01 Maintenance of Offices, Agencies and Transfer Books by the Depositary and the
Registrar.

     The Depositary shall maintain at the Depositary Office facilities for the execution and
delivery, transfer, surrender and exchange, split-up and combination of Receipts and deposit and
withdrawal of Convertible Preferred Stock and at the offices of any of the Depositary’s Agents, if
any, facilities for the delivery, transfer, surrender and exchange, split-up and combination of
Receipts and deposit and withdrawal of Convertible Preferred Stock, all in accordance with the
provisions of this Deposit Agreement.

     The Registrar shall keep books at the Depositary Office for the registration and transfer of
Receipts, which books at all reasonable times shall be open for inspection by the record holders of
Receipts as provided by applicable law. The Company may cause the Registrar to close such books,
at any time or from time to time, when deemed expedient by it in connection with the performance of
its duties hereunder.

     If the Receipts or the Depositary Shares evidenced thereby or the Convertible Preferred Stock
represented by such Depositary Shares shall be listed on the New York Stock Exchange, Inc. or any
other stock exchange, the Depositary may, with the written approval of the Company, appoint a
registrar (acceptable to the Company) for registration of such Receipts or Depositary Shares in
accordance with the requirements of such exchange. Such registrar (which may be the Registrar if
so permitted by the requirements of such exchange) may be removed and a substitute registrar
appointed by the Registrar upon the request or with the written approval of the Company. If the
Receipts, such Depositary Shares or such Convertible Preferred Stock are listed on one or more
other stock exchanges, the Registrar will, at the request and expense of the Company, arrange such
facilities for the delivery, transfer, surrender and exchange of such Receipts, such Depositary
Shares or such Convertible Preferred Stock as may be required by law or applicable stock exchange
regulations.

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     SECTION 5.02 Prevention or Delay in Performance by the Depositary, the Depositary’s Agents,
the Registrar or the Company.

     None of the Depositary, any of the Depositary’s Agents, the Registrar, the Transfer Agent or
the Company shall incur any liability to any holder of any Receipt, if by reason of any provision
of any present or future law or regulation thereunder of the United States of America or of any
other governmental authority or, in the case of the Depositary, any of the Depositary’s Agents, the
Registrar or Transfer Agent, by reason of any provision, present or future, of the Certificate of
Incorporation or, in the case of the Company, the Depositary, any of the Depositary’s Agents, the
Transfer Agent or the Registrar, by reason of any acts of God, fire, war, terrorism, floods,
strikes, civil or military disorder, work stoppage, accident, electrical outages, equipment or
transmission failure, failure or malfunction of any utilities, means of communication or computer
(software or hardware) services, the unavailability of the Federal Reserve Bank, or other
circumstance beyond the control of the relevant party, the Depositary, any of the Depositary’s
Agents, the Transfer Agent, the Registrar or the Company shall be prevented or forbidden from doing
or performing any act or thing that the terms of this Deposit Agreement provide shall be done or
performed; nor shall the Depositary, any of the Depositary’s Agents, the Transfer Agent, the
Registrar or the Company incur any liability to any holder of a Receipt by reason of any
nonperformance or delay, caused as aforesaid, in the performance of any act or thing that the terms
of this Deposit Agreement provide shall or may be done or performed, or by reason of any exercise
of, or failure to exercise, any discretion provided for in this Deposit Agreement.

     SECTION 5.03 Obligations of the Depositary, the Depositary’s Agents and the Registrar.

     Neither the Depositary nor any of the Depositary’s Agents nor the Transfer Agent or the
Registrar assumes any obligation or shall be subject to any liability under this Deposit Agreement
to holders of Receipts, the Company or any other Person or entity other than for its bad faith,
gross negligence or willful misconduct (which bad faith, gross negligence or willful misconduct
must be determined by a final, non-appealable order, judgment, decree or ruling of a court of
competent jurisdiction). Notwithstanding anything to the contrary contained herein, neither the
Depositary, nor any of the Depositary’s Agents nor the Transfer Agent or the Registrar shall be
liable for any special, indirect, incidental, consequential, punitive or exemplary losses or
damages, of any kind whatsoever, to any Person, including but not limited to, lost profits, even if
such Person alleged to be liable has knowledge of the possibility of such damages or been advised
of the likelihood of such loss or damage and regardless of the form of action. Any liability of
the Depositary, any of the Depositary’s Agents, the Transfer Agent or the Registrar under this
Deposit Agreement shall be limited to the amount of annual fees paid by the Company to such Person.

     None of the Depositary, any of the Depositary’s Agents, the Registrar or Transfer Agent shall
be under any obligation to appear in, prosecute or defend any action, suit or other proceeding with
respect to the deposited Convertible Preferred Stock, Depositary Shares or Receipts that in its
opinion may involve it in expense or liability, unless indemnity satisfactory to it against all
expense and liability be furnished as often as may be required.

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     None of the Depositary, any of Depositary’s Agents, the Registrar or Transfer Agent shall be
liable for any action or any failure to act by it in reliance upon the advice of legal counsel or
accountants, or information provided by any Person presenting Convertible Preferred Stock for
deposit or any holder of a Receipt. The Depositary, any of the Depositary’s Agents, the Registrar
and the Transfer Agent may each rely and shall each be protected in acting upon any written notice,
request, direction or other document believed by it to be genuine and to have been signed or
presented by the proper party or parties.

     In the event the Depositary shall receive conflicting claims, requests or instructions from
any holders of Receipts, on the one hand, and the Company, on the other hand, the Depositary shall
be entitled to act on such claims, requests or instructions received from the Company, and shall
incur no liability and shall be entitled to the full indemnification set forth in Section 5.06 in
connection with any action so taken.

     The Depositary shall not be responsible for any failure to carry out any instruction to vote
any of the deposited Convertible Preferred Stock or for the manner or effect of any such vote made,
as long as any such action or non-action does not result from bad faith, gross negligence or
willful misconduct of the Depositary (which bad faith, gross negligence or willful misconduct must
be determined by a final, non-appealable order, judgment, decree or ruling of a court of competent
jurisdiction). The Depositary undertakes, and the Registrar and the Transfer Agent shall be
required to undertake, to perform such duties and only such duties as are specifically set forth in
this Deposit Agreement, and no implied covenants or obligations shall be read into this Deposit
Agreement against the Depositary or the Registrar or the Transfer Agent.

     The Depositary, its parents, affiliates or subsidiaries, any of the Depositary’s Agents, the
Registrar or the Transfer Agent may own, buy, sell or deal in any class of securities of the
Company and its affiliates and in Receipts or Depositary Shares or become pecuniarily interested in
any transaction in which the Company or its affiliates may be interested or contract with or lend
money to or otherwise act as fully or as freely as if it were not the Depositary, the Depositary’s
Agent, the Registrar or the Transfer Agent hereunder. The Depositary, any of the Depositary’s
Agents, the Registrar or the Transfer Agent may also act as transfer agent or registrar of any of
the securities of the Company and its affiliates or act in any other capacity for the Company or
its affiliates.

     It is intended that neither the Depositary nor any of the Depositary’s Agents shall be deemed
to be an “issuer” of the securities under the federal securities laws or applicable state
securities laws, it being expressly understood and agreed that the Depositary and any of the
Depositary’s Agents are acting only in a ministerial capacity as Depositary for the deposited
Convertible Preferred Stock; provided, however, that the Depositary agrees to
comply with all information reporting and withholding requirements applicable to it under law or
this Deposit Agreement in its capacity as Depositary.

     Neither the Depositary (or its officers, directors, employees, agents or affiliates) nor any
of the Depositary’s Agents makes any representation or has any responsibility as to the validity of
the registration statement pursuant to which the Depositary Shares are registered under the
Securities Act, the deposited Convertible Preferred Stock, the Depositary Shares, the Receipts

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(except its countersignature thereon) or any instruments referred to therein or herein, or as
to the correctness of any statement made therein or herein; provided, however, that
the Depositary is responsible for its representations in this Deposit Agreement.

     The Company agrees that it has registered the deposited Convertible Preferred Stock and the
Depositary Shares in accordance with the applicable securities laws.

     In the event the Depositary, any of the Depositary’s Agents, the Registrar or the Transfer
Agent believes any ambiguity or uncertainty exists in any notice, instruction, direction, request
or other communication, paper or document received by it pursuant to this Deposit Agreement, such
Person shall promptly notify the Company of the details of such alleged ambiguity or uncertainty,
and may, in its sole discretion, refrain from taking any action, and such Person shall be fully
protected and shall incur no liability to any Person from refraining from or for taking such
action, absent bad faith, gross negligence or willful misconduct (which bad faith, gross negligence
or willful misconduct must be determined by a final, non-appealable order, judgment, decree or
ruling of a court of competent jurisdiction), unless and until (i) the rights of all parties have
been fully and finally adjudicated by a court of appropriate jurisdiction or (ii) such Person
receives written instructions with respect to such matter signed by the Company that eliminates
such ambiguity or uncertainty to the satisfaction of such Person.

     Whenever in the performance of its duties under this Deposit Agreement, the Depositary, any of
the Depositary’s Agents, the Transfer Agent or the Registrar shall deem it necessary or desirable
that any fact or matter be proved or established by the Company prior to taking, suffering or
omitting to take any action hereunder, such fact or matter (unless other evidence in respect
thereof be herein specifically prescribed) may be deemed to be conclusively provided and
established by a certificate signed by any one of the President, any Vice President, the Treasurer,
any Assistant Treasurer, the Secretary or Assistant Secretary of the Company and delivered to the
Depositary, any of the Depositary’s Agents, the Transfer Agent or the Registrar; and such
certificate shall be full and complete authorization and protection to the Depositary, any of the
Depositary’s Agents, the Transfer Agent or the Registrar and the Depositary, any of the
Depositary’s Agents, the Transfer Agent or the Registrar shall incur no liability for or in respect
of any action taken, suffered or omitted to be taken by it under the provisions of this Deposit
Agreement in reliance upon such certificate. The Depositary, any of the Depositary’s Agents, the
Transfer Agent or the Registrar shall not be liable for or by reason of any of the statements of
fact or recitals contained in this Deposit Agreement or in the Receipts (except its
countersignature thereof) or be required to verify the same, but all such statements and recitals
are and shall be deemed to have been made by the Company only.

     Neither the Depositary, any of the Depositary’s Agents, the Transfer Agent nor the Registrar
will be under any duty or responsibility to ensure compliance with any applicable federal or state
securities laws in connection with the issuance, transfer or exchange of the Receipts, Convertible
Preferred Stock or Depositary Shares.

     Notwithstanding anything herein to the contrary, no amendment to the Certificate of
Designations shall affect the rights, duties, obligations or immunities of the Depositary, any of
the Depositary’s Agents, the Transfer Agent or the Registrar hereunder.

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     The Depositary, the Transfer Agent and the Registrar hereunder:

          (i) shall have no duties or obligations other than those specifically set forth herein (and no
implied duties or obligations), or as may subsequently be agreed to in writing by the parties;

          (ii) shall have no obligation to make payment hereunder unless the Company shall have provided
the necessary federal or other immediately available funds or securities or property, as the case
may be, to pay in full amounts due and payable with respect thereto;

          (iii) shall not be obligated to take any legal or other action hereunder; if, however, the
Depositary, the Transfer Agent or the Registrar determines to take any legal or other action
hereunder, and, where the taking of such action might in such Person’s judgment subject or expose
it to any expense or liability, it shall not be required to act unless it shall have been furnished
with an indemnity satisfactory to it;

          (iv) may rely on and shall be authorized and protected in acting or omitting to act upon any
certificate, instrument, opinion, notice, letter, facsimile transmission or other document or
security delivered to it and believed by it to be genuine and to have been signed by the proper
party or parties, and shall have no responsibility for determining the accuracy thereof;

          (v) may rely on and shall be authorized and protected in acting or omitting to act upon the
written, telephonic, electronic and oral instructions, with respect to any matter relating to the
Depositary’s, the Transfer Agent’s or the Registrar’s actions as depositary, transfer agent or
registrar covered by this Deposit Agreement (or supplementing or qualifying any such actions), of
officers of the Company;

          (vi) may consult counsel satisfactory to it (who may be an employee of the Depositary, the
Transfer Agent or the Registrar), and the advice of such counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted to be taken by it
hereunder in accordance with the advice of such counsel;

          (vii) shall not be called upon at any time to advise any Person with respect to the Depositary
Shares or Receipts;

          (viii) shall not be liable or responsible for any recital or statement contained in any
documents relating hereto or the Depositary Shares or Receipts; and

          (ix) shall not be liable in any respect on account of the identity, authority or rights of the
parties (other than with respect to its own) executing or delivering or purporting to execute or
deliver this Deposit Agreement or any documents or papers deposited or called for under this
Deposit Agreement.

     The obligations of the Company set forth in this Section 5.03 shall survive the replacement,
removal or resignation of any Depositary, Registrar, Transfer Agent or any of the Depositary’s
Agents or the termination of this Deposit Agreement.

25

 

     SECTION 5.04 Resignation and Removal of the Depositary; Appointment of Successor Depositary.

     The Depositary may at any time resign as Depositary hereunder by notice of its election to do
so delivered to the Company, such resignation to take effect upon the appointment of a successor
depositary and its acceptance of such appointment as hereinafter provided.

     The Depositary may at any time be removed by the Company by notice of such removal delivered
to the Depositary, such removal to take effect upon the appointment of a successor depositary and
its acceptance of such appointment as hereinafter provided. Upon any such removal or appointment,
the Company shall send notice thereof by first-class mail, postage prepaid, to the holders of
Receipts.

     In case at any time the Depositary acting hereunder shall resign or be removed, the Company
shall, within 60 days after the delivery of the notice of resignation or removal, as the case may
be, appoint a successor depositary, which shall be (i) a Person having its principal office in the
United States of America and having a combined capital and surplus of at least $50,000,000 and that
is not an affiliate of the Company, or (ii) an affiliate of such a Person. If a successor
depositary shall not have been appointed and have accepted appointment in 60 days, the resigning
Depositary may petition a court of competent jurisdiction to appoint a successor depositary. Every
successor depositary shall execute and deliver to its predecessor and to the Company an instrument
in writing accepting its appointment hereunder, and thereupon such successor depositary, without
any further act or deed, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor and for all purposes shall be the Depositary under this Deposit
Agreement, and such predecessor, upon payment of all sums due it and on the written request of the
Company, shall promptly execute and deliver an instrument transferring to such successor all rights
and powers of such predecessor hereunder, shall duly assign, transfer and deliver all rights, title
and interest in the deposited Convertible Preferred Stock and any moneys or property held hereunder
to such successor and shall deliver to such successor a list of the record holders of all
outstanding Receipts. Any successor Depositary shall promptly mail notice of its appointment to
the record holders of all outstanding Receipts.

     Any corporation or other entity into or with which the Depositary may be merged, consolidated
or converted, or any corporation or other entity to which all or a substantial part of the assets
of the Depositary may be transferred, shall be the successor Depositary without the execution or
filing of any document or any further act. Such successor Depositary may execute the Receipts
either in the name of the predecessor Depositary or in the name of the successor Depositary.

     The provisions of this Section 5.04 as they apply to the Depositary apply to the Registrar and
the Transfer Agent, as if specifically enumerated herein.

     SECTION 5.05 Notices, Reports and Documents.

     The Company agrees that it will deliver to the Depositary, and the Depositary, if requested in
writing by the Company and provided with all necessary information and

26

 

documents, agrees that it will, promptly after receipt of such notice, transmit to the record
holders of Receipts, in each case at the address recorded in the books of the Depositary, the
Transfer Agent or the Registrar, copies of all notices and reports generally made available by the
Company to holders of the Convertible Preferred Stock and not otherwise made publicly available.
Such transmission will be at the Company’s expense and the Company will provide the Depositary with
such number of copies of such documents as the Depositary may reasonably request. In addition, the
Depositary will transmit to the record holders of Receipts at the Company’s expense such other
documents as may be requested by the Company.

     SECTION 5.06 Indemnification by the Company.

     The Company shall indemnify the Depositary, any of the Depositary’s Agents, the Transfer Agent
and the Registrar against, and hold each of them harmless from, any loss, liability, damage, cost
or expense (including the costs and expenses of defending itself) which may arise out of (i) acts
performed, suffered or omitted to be taken in connection with this Deposit Agreement and the
Receipts (a) by the Depositary, the Transfer Agent or the Registrar or any of their respective
agents (including any of the Depositary’s Agents), except for any liability arising out of bad
faith, gross negligence or willful misconduct (which bad faith, gross negligence or willful
misconduct must be determined by a final, non-appealable order, judgment, decree or ruling of a
court of competent jurisdiction) on the respective parts of any such Person or Persons, or (b) by
the Company or any of its agents, or (ii) the offer, sale or registration of the Receipts or shares
of Stock pursuant to the provisions hereof. The obligations of the Company set forth in this
Section 5.06 shall survive the replacement, removal or resignation of any Depositary, Registrar,
Transfer Agent or Agent of Depositary or termination of this Deposit Agreement. In no event shall
the Depositary have any right of set off or counterclaim against the Depositary Shares or the
Convertible Preferred Stock.

     SECTION 5.07 Fees, Charges and Expenses.

     No charges and expenses of the Depositary or any of the Depositary’s Agents hereunder shall be
payable by any Person, except as provided in this Section 5.07. The Company shall pay all transfer
and other taxes and charges arising solely from the existence of this Deposit Agreement. The
Company shall also pay all fees and expenses of the Depositary in connection with the initial
deposit of the Convertible Preferred Stock and the initial issuance of the Depositary Shares
evidenced by the Receipts and all withdrawals of the Convertible Preferred Stock by holders of
Receipts. All other fees and expenses of the Depositary and any of the Depositary’s Agents
hereunder and of the Registrar or the Transfer Agent (including, in each case, fees and expenses of
counsel) incurred in the preparation, negotiation, delivery, amendment, administration,
modification, waiver, performance, enforcement and execution of this Deposit Agreement and incident
to the performance of their respective obligations hereunder will be paid by the Company as
previously agreed between the Depositary and the Company. The Depositary (and if applicable, the
Transfer Agent and the Registrar) shall present its statement for fees and expenses to the Company
once every three months or at such other intervals as the Company and the Depositary may agree.

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ARTICLE 6

AMENDMENT AND TERMINATION

     SECTION 6.01 Amendment.

     The form of the Receipts and any provision of this Deposit Agreement may at any time and from
time to time be amended by agreement between the Company and the Depositary without the consent of
holders of Receipts in any respect that the Company and the Depositary may deem necessary or
desirable; provided, however, that no such amendment (other than any change in the
fees of the Depositary, the Registrar or the Transfer Agent that are payable by the Company) which
(i) shall materially and adversely alter the rights of the holders of Receipts or (ii) would be
materially and adversely inconsistent with the rights granted to the holders of the Convertible
Preferred Stock pursuant to the Certificate of Incorporation shall be effective unless such
amendment shall have been approved by the holders of Receipts evidencing at least 66 2/3% in voting
power of the Depositary Shares then outstanding. In no event shall any amendment impair the right,
subject to the provisions of Section 2.06 and Section 2.07 and Article III, of any holder of any
Receipts evidencing such Depositary Shares to surrender any Receipt with instructions to the
Depositary to deliver to the holder the deposited Convertible Preferred Stock and all money and
other property, if any, represented thereby, except in order to comply with mandatory provisions of
applicable law. Every holder of an outstanding Receipt at the time any such amendment becomes
effective shall be deemed, by continuing to hold such Receipt, to consent and agree to such
amendment and to be bound by this Deposit Agreement as amended thereby.

     SECTION 6.02 Termination.

     This Deposit Agreement may be terminated by the Company upon not less than 30 days’ prior
written notice to the Depositary if the holders of Receipts evidencing a majority of the Depositary
Shares then outstanding consent to such termination, whereupon the Depositary shall deliver or make
available to each holder of a Receipt, upon surrender of the Receipt held by such holder, such
number of whole or fractional shares of deposited Convertible Preferred Stock as are represented by
the Depositary Shares evidenced by such Receipt, together with any other property held by the
Depositary in respect of such Receipt. This Deposit Agreement will automatically terminate if (i)
all outstanding Depositary Shares shall have been converted in accordance with the provisions
hereof (including the distribution pursuant to Section 4.01 or Section 4.02 of all Common Stock,
Exchange Property or cash received by the Depositary in respect of the related conversion of
Convertible Preferred Stock to which the holders of Receipts are entitled) or (ii) there shall have
been made a final distribution in respect of the deposited Convertible Preferred Stock in
connection with any liquidation, dissolution or winding up of the Company and such distribution
shall have been distributed to the holders of Receipts entitled thereto.

     Upon the termination of this Deposit Agreement, the Company shall be discharged from all
obligations under this Deposit Agreement except for its obligations to the Depositary, any of the
Depositary’s Agents, the Transfer Agent or the Registrar under Section 5.06 and Section 5.07.

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ARTICLE 7

MISCELLANEOUS

     SECTION 7.01 Counterparts.

     This Deposit Agreement may be executed in any number of counterparts, and by each of the
parties hereto on separate counterparts, each of which counterparts, when so executed and
delivered, shall be deemed an original, but all such counterparts taken together shall constitute
one and the same instrument. Delivery of an executed counterpart of a signature page to this
Deposit Agreement by facsimile shall be effective as delivery of a manually executed counterpart of
this Deposit Agreement.

     SECTION 7.02 Exclusive Benefits of Parties.

     This Deposit Agreement is for the exclusive benefit of the parties hereto, and their
respective successors hereunder, and shall not be deemed to give any legal or equitable right,
remedy or claim to any other Person whatsoever.

     SECTION 7.03 Invalidity of Provisions.

     In case any one or more of the provisions contained in this Deposit Agreement or in the
Receipts should be or become invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein or therein shall in no way
be affected, prejudiced or disturbed thereby; provided, however, that if such
provision affects the rights, duties, liabilities or obligations of the Depositary, the Transfer
Agent or the Registrar, such Person shall be entitled to resign immediately.

     SECTION 7.04 Notices.

     Any and all notices to be given to the Company hereunder or under the Receipts shall be in
writing and shall be deemed to have been duly given if personally delivered or sent by mail, or by
facsimile transmission confirmed by letter, addressed to the Company at:

Apache Corporation

2000 Post Oak Blvd., Suite 100

Houston, TX 77056

Attention: Matthew W. Dundrea

Facscimile: 713-296-6458

email: matt.dundrea@apachecorp.com

with a copy to :

Bracewell & Giuliani LLP

711 Louisiana Street, Suite 2300

Houston, TX 77002

Attention: John R. Brantley

Facsimile: 713-221-2112

email: john.brantley@bgllp.com

29

 

or at any other address of which the Company shall have notified the Depositary in writing.

     Any notices to be given to the Depositary, Transfer Agent or Registrar hereunder or under the
Receipts shall be in writing and shall be deemed to have been duly given if personally delivered or
sent by mail, or telecopier confirmed by letter, addressed to the Depositary:

Wells Fargo Bank, N.A.

161 North Concord Exchange

South St. Paul MN 55075

Facsimile: 651-450-4078

Attention: Apache Account Manager

     Any notices given to any record holder of a Receipt hereunder or under the Receipts shall be
in writing and shall be deemed to have been duly given if transmitted through the facilities of DTC
in accordance with DTC’s procedures or personally delivered or sent by mail, recognized next-day
courier service or telecopier confirmed by letter, addressed to such record holder at the address
of such record holder as it appears on the books of the Depositary provided that any record holder
may direct the Depositary to deliver notices to such record holder at an alternate address or in a
specific manner that is reasonably requested by such record holder in a written request timely
filed with the Depositary and that is reasonably acceptable to the Depositary.

     Delivery of a notice sent by mail shall be deemed to be effected at the time when a duly
addressed letter containing the same (or a confirmation thereof in the case of a facsimile message)
is deposited, postage prepaid, in a post office letter box, or in the case of a next-day courier
service, when deposited with such courier, courier fees prepaid. The Depositary or the Company
may, however, act upon any facsimile message received by it from the other or from any holder of a
Receipt, notwithstanding that such facsimile message shall not subsequently be confirmed by letter
as aforesaid.

     SECTION 7.05 Depositary’s Agents.

     The Depositary may from time to time appoint Depositary’s Agents to act in any respect for the
Depositary for the purposes of this Deposit Agreement and may at any time appoint additional
Depositary’s Agents and vary or terminate the appointment of such Depositary’s Agents. The
Depositary will notify the Company of any such action.

     SECTION 7.06 Holders of Receipts Are Parties.

     The holders of Receipts from time to time shall be deemed to be parties to this Deposit
Agreement and shall be bound by all of the terms and conditions hereof and of the Receipts by
acceptance of delivery thereof to the same extent as though such Person executed this Deposit
Agreement.

     SECTION 7.07 Governing Law.

30

 

     This Deposit Agreement and the Receipts and all rights, claims, controversies and disputes
arising under or relating to this Deposit Agreement or the Receipts shall be governed by, and
construed in accordance with, the law of the State of New York applicable to agreements made and to
be performed in said State, without regard to conflicts of laws principles thereof.

     SECTION 7.08 Inspection of Deposit Agreement and Certificate of Designations.

     Copies of this Deposit Agreement and the Certificate of Designations shall be filed with the
Depositary and any of the Depositary’s Agents and shall be open to inspection during business hours
at the Depositary Office by any holder of any Receipt.

     SECTION 7.09 Headings.

     The headings of articles and sections in this Deposit Agreement and in the form of the Receipt
set forth in Exhibit A hereto have been inserted for convenience only and are not to be regarded as
a part of this Deposit Agreement or to have any bearing upon the meaning or interpretation of any
provision contained herein or in the Receipts.

31

 

     IN WITNESS WHEREOF, Apache Corporation and Wells Fargo Bank, N.A. have duly executed this
Deposit Agreement as of the day and year first above set forth and all holders of Receipts shall
become parties hereto by and upon acceptance by them of delivery of Receipts issued in accordance
with the terms hereof.

	 	 	 	 	 
	 	APACHE CORPORATION

 	 
	 	By:  	/s/ Roger B. Plank
 	 
	 	 	Name:  	Roger B. Plank 	 
	 	 	Title:  	President (Principal Financial Officer) 	 
	 
	 	WELLS FARGO BANK, N.A.,

as Depositary, Registrar and Transfer Agent

 	 
	 	By:  	/s/ Jennifer L. Leno
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

[Signature Page to Deposit Agreement]

 

 

Exhibit A

FORM OF FACE OF RECEIPT

     [THE SECURITIES REPRESENTED BY THIS INSTRUMENT AND THE SHARES OF COMMON STOCK ISSUABLE UPON
CONVERSION OF SUCH SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR
OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER THE
SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT OR SUCH LAWS.]

     [IF GLOBAL RECEIPT IS ISSUED: UNLESS THIS RECEIPT IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK,
TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY RECEIPT
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO. HAS AN INTEREST HEREIN.

     TRANSFERS OF THIS GLOBAL RECEIPT SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF
THIS GLOBAL RECEIPT SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN THE CERTIFICATE OF DESIGNATIONS REFERRED TO BELOW.]

     IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT
SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH REGISTRAR AND TRANSFER AGENT MAY REQUIRE TO CONFIRM
THAT THE TRANSFER COMPLIES WITH THE RESTRICTIONS ON TRANSFER AND OTHER PROVISIONS OF SAID
AGREEMENT. ANY SALE OR OTHER TRANSFER NOT IN COMPLIANCE WITH SAID AGREEMENT WILL BE VOID.

1

 

	 	 	 

	Certificate Number_______

	 	[Initial] Number of Depositary Shares_______

APACHE CORPORATION

RECEIPT FOR DEPOSITARY SHARES

Each Representing 1/20th of a Share of

6.00% Mandatory Convertible Preferred Stock, Series D

(with no par value)

(liquidation preference $1,000 per share)

     Wells Fargo Bank, N.A., as
Depositary (the “Depositary”), hereby certifies
that___________________is the registered
 owner of [_______] [the number shown on
Schedule I hereto of] Depositary Shares (“Depositary Shares”), each Depositary Share representing
1/20th of one share of 6.00% Mandatory Convertible Preferred Stock, Series D, with no
par value and liquidation preference of $1,000 per share (the “Stock”), of Apache Corporation, a
Delaware corporation (the “Company”), on deposit with the Depositary, subject to the terms and
entitled to the benefits of the Deposit Agreement dated July 28, 2010 (the “Deposit Agreement”),
among the Company, the Depositary and the holders from time to time of Receipts for Depositary
Shares. By accepting this Receipt, the holder hereof becomes a party to and agrees to be bound by
all the terms and conditions of the Deposit Agreement. This Receipt shall not be valid or
obligatory for any purpose or entitled to any benefits under the Deposit Agreement unless it shall
have been executed by the Depositary by the manual or facsimile signature of a duly authorized
officer or, if a Registrar in respect of the Receipts (other than the Depositary) shall have been
appointed, by the manual signature of a duly authorized officer of such Registrar.

	 	 	 	 	 	 	 	 	 	 	 

	Dated:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	[Countersigned:  	 	Wells Fargo Bank, N.A., as Depositary	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 
	]	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	Authorized Signatory	 	 

2

 

[FORM OF REVERSE OF RECEIPT]

     The following abbreviations when used in the instructions on the face of this receipt shall be
construed as though they were written out in full according to applicable laws or regulations.

	 	 	 

	TEN COM - as tenant in common

	 	UNIF GIFT MIN ACT — _________
	 

	 	Custodian _________
	 

	 	                     (Cust)           (Minor)
	 
	 	 
	TEN ENT - as tenants by the entireties

	 	Under Uniform Gifts to Minors Act
	 
	 	 
	JT TEN - as joint tenants with right
of survivorship and not as tenants in
common

	 	(State)

Additional abbreviations may also be used though not in the above list.

ASSIGNMENT

For value received,                                          hereby sell(s), assign(s) and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE, AS APPLICABLE

 

 

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS

INCLUDING POSTAL ZIP CODE OF ASSIGNEE

 

_______________
Depositary Shares represented by the within Receipt, and do hereby
irrevocably constitute and appoint

_______________
Attorney to transfer the said Depositary Shares on the books of the
within named Depositary with full power of substitution in the premises.

	 	 	 

	Dated                           
	 	 
	 

	 	 
	 
	 	 
	 

	 	NOTICE: The signature to the assignment must correspond with the
name as written upon the face of this Receipt in every particular,
without alteration or enlargement or any change whatever.

SIGNATURE GUARANTEED

NOTICE: The signature(s) must be guaranteed by a participant in a Medallion Signature Guarantee
Program at a guarantee level acceptable to the Company’s transfer agent.

3

 

Schedule I1

Apache Corporation

Receipt for Depositary Shares,

Each Representing a 1/20th Interest in

6.00% Mandatory Convertible Preferred Stock, Series D

Certificate Number: [          ]

The number of Depositary Shares initially represented by this
 Global Receipt shall be [      ].
Thereafter the Transfer Agent and Registrar shall note changes in the number of Depositary Shares
evidenced by this Global Receipt in the table set forth below:

	 	 	 	 	 	 	 
	 	 	 	 	Number of	 	 
	Amount of Decrease	 	Amount of Increase	 	Depositary Shares	 	 
	in Number of	 	in Number of	 	Represented by this	 	Signature of
	Depositary Shares	 	Depositary Shares	 	Global Receipt	 	Authorized Officer
	Evidenced by this	 	Evidenced by this	 	following Decrease	 	of Transfer Agent
	Global Receipt	 	Global Receipt	 	or Increase	 	and Registrar
	 	 	 	 	 	 	 

 

			
	1	 	Attach Schedule I only to Global Receipt.

4

 

Exhibit B

Certificate of Designations

[ATTACHED]

5Exhibit 10.1

Exhibit 10.1

TENDER AND SUPPORT AGREEMENT

TENDER AND SUPPORT AGREEMENT (this “Agreement”), dated as of July 27, 2010, is by and
among MOUNTAIN ACQUISITION CORP., a Delaware corporation (“Parent”), MOUNTAIN MERGER SUB
CORP., a Delaware corporation and a direct, wholly-owned Subsidiary of Parent (“Merger
Sub”), HEALTH GRADES, INC., a Delaware corporation (the “Company”), and [     ]
(“Stockholder”). The Company shall only be a party to this Agreement for purposes of
Section 4(e)-(j) and Section 13 of this Agreement.

WHEREAS, Stockholder is, as of the date hereof, the record and beneficial owner (as defined in
Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
which meaning will apply for all purposes of this Agreement) of the number of shares of Common
Stock, par value $0.001 (the “Company Common Stock”) of the Company, set forth opposite the
name of Stockholder on Schedule I hereto;

WHEREAS, Parent, Merger Sub, and the Company have entered into the Agreement and Plan of
Merger, dated as of the date hereof, attached hereto as Exhibit A and as may be amended from time
to time (the “Merger Agreement”), which provides, among other things, for Merger Sub to
commence a tender offer for all of the outstanding shares of Company Common Stock (the
“Offer”) and, following the completion of the Offer, the merger of Merger Sub with and into
the Company (the “Merger”) upon the terms and subject to the conditions set forth in the
Merger Agreement (capitalized terms used herein without definition shall have the respective
meanings specified in the Merger Agreement); and

WHEREAS, as a condition to the willingness of Parent and Merger Sub to enter into the Merger
Agreement and as an inducement and in consideration therefor, Stockholder has agreed to enter into
this Agreement.

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

SECTION 1. Representations and Warranties of Stockholder. Stockholder hereby
represents and warrants to Parent and Merger Sub as follows:

(a) Stockholder (i) is the record and beneficial owner of the shares of Company Common Stock
(together with any shares of Company Common Stock which such Stockholder may acquire at any time in
the future during the term of this Agreement, including pursuant to any exercise of Company
Options, the RS Shares (defined below) [and NC Shares (defined below),] the “Shares”) set
forth opposite Stockholder’s name on Schedule I to this Agreement and (ii) except as set forth in
Schedule I to this Agreement, neither holds nor has any beneficial ownership interest in any other
shares of Company Common Stock or any other Equity Interest in the Company.

(b) Stockholder has the legal capacity to execute and deliver this Agreement and to consummate
the transactions contemplated hereby.

 

 

 

(c) This Agreement has been duly executed and delivered by Stockholder and, assuming the due
and valid execution and delivery of this Agreement by Parent and Merger Sub, this Agreement
constitutes a legal, valid and binding obligation of Stockholder, enforceable against such
Stockholder in accordance with its terms, subject the Bankruptcy Exception.

(d) Neither the execution and delivery of this Agreement nor the consummation by Stockholder
of the transactions contemplated hereby will result in a violation of, or a default under, or
conflict with, any contract, trust, commitment, agreement, understanding, arrangement or
restriction of any kind to which Stockholder is a party or by which Stockholder or Stockholder’s
assets are bound. The consummation by Stockholder of the transactions contemplated hereby will not
(i) violate any provision of any Order applicable to Stockholder or (ii) require any consent,
approval, or notice under any Law applicable to Stockholder other than (x) as required under the
Exchange Act and the rules and regulations promulgated thereunder, or (y) where the failure to
obtain such consents or approvals or to make such notifications, would not, individually, or in the
aggregate, prevent or materially delay the performance by Stockholder of any of its obligations
under this Agreement.

(e) The Shares and the certificates, if any, representing the Shares owned by Stockholder are
now, and at all times during the term hereof will be, held by Stockholder, by a nominee or
custodian for the benefit of Stockholder or by the depository under the Offer, free and clear of
all Liens, claims, proxies, voting trusts or agreements, options, rights (other than community
property interests), understandings or arrangements or any other encumbrances or restrictions
whatsoever on title, transfer, or exercise of any rights of a stockholder in respect of such Shares
(collectively, “Encumbrances”), except for (i) any such Encumbrances arising hereunder,
(ii) any rights, agreements, understandings or arrangements which represent solely a financial
interest in cash received upon a sale of the Shares, and (iii) any Encumbrances imposed by federal
or state securities laws (collectively, “Permitted Encumbrances”).

(f) Stockholder has full voting power, with respect to the Shares, and full power of
disposition, full power to issue instructions with respect to the matters set forth herein, and
full power to agree to all of the matters set forth in this Agreement, in each case with respect to
all of the Shares.

(g) There is no Action, investigation or proceeding pending or, to the knowledge of
Stockholder, threatened against Stockholder at Law or equity before or by any Governmental Entity
that could reasonably be expected to impair or materially delay the performance by Stockholder of
its obligations under this Agreement.

(h) Stockholder understands and acknowledges that Parent and Merger Sub are entering into the
Merger Agreement in reliance upon the Stockholder’s execution, delivery and performance of this
Agreement.

(i) No broker, investment bank, financial advisor or other person is entitled to any broker’s,
finder’s, financial adviser’s or similar fee or commission in connection with the transactions
contemplated by this Agreement based upon arrangements made by or on behalf of the Stockholder.

 

2

 

SECTION 2. Representations and Warranties of Parent and Merger Sub. Each of Parent
and Merger Sub hereby, jointly and severally, represents and warrants to Stockholder as follows:

(a) Each of Parent and Merger Sub is a corporation duly organized, validly existing and in
good standing under the laws of the State of Delaware, and each of Parent and the Merger Sub has
all requisite corporate power and authority to execute and deliver this Agreement and the Merger
Agreement and to consummate the transactions contemplated hereby and thereby, and has taken all
necessary corporate action to authorize the execution, delivery and performance of this Agreement
and the Merger Agreement.

(b) This Agreement and the Merger Agreement have been duly authorized, executed and delivered
by each of Parent and Merger Sub, and constitute the valid and binding obligations of each of
Parent and Merger Sub, enforceable against each of them in accordance with their terms, subject to
the Bankruptcy Exception.

(c) Neither the execution and delivery of this Agreement or the Merger Agreement by each of
Parent and Merger Sub nor the consummation by Parent and Merger Sub of the transactions
contemplated hereby or thereby will result in a violation of, or a default under, any contract,
trust, commitment, agreement, understanding, arrangement or restriction of any kind to which either
Parent or Merger Sub is a party or by which either Parent or Merger Sub or their respective assets
are bound. The consummation by Parent and Merger Sub of the transactions contemplated by this
Agreement or the Merger Agreement will not (i) violate any provision of any Order applicable to
Parent or Merger Sub or (ii) require any consent, approval or notice under any Law applicable to
either Parent or Merger Sub, other than (x) applicable requirements, if any, of (A) the Exchange
Act, including, without limitation, the filing with the SEC of the Schedule TO, (B) state
securities or “blue sky” Laws, (C) the DGCL to file the Certificate of Merger or other appropriate
documentation and (D) Nasdaq, and (y) those required by applicable Antitrust Laws, including the
HSR Act, and (z) where the failure to obtain such consents or approvals or to make such
notifications, would not, individually or in the aggregate, prevent or materially delay the
performance by either Parent or Merger Sub of any of their obligations under this Agreement and the
Merger Agreement.

SECTION 3. Tender of the Shares.

(a) Stockholder hereby agrees that it shall validly tender (and deliver any certificates
evidencing) its Shares other than the RS Shares [and NC Shares] (the “Tender Shares”), or
cause the Tender Shares to be tendered, pursuant to and in accordance with the terms of the Offer
promptly following, and in any event no later than ten (10) Business Days following Stockholder’s
receipt of a letter of transmittal with respect to the Offer, in accordance with the procedures set
forth in the Offer Documents, free and clear of all Encumbrances (other than Permitted
Encumbrances); provided that Parent and Merger Sub agree that Stockholder may withdraw the Tender
Shares from the Offer at any time following the termination of this Agreement or as otherwise
provided pursuant to Section 9 hereof.

(b) Stockholder agrees that once the Tender Shares are tendered into the Offer, Stockholder
will not withdraw any Tender Shares from the Offer unless and until (i) the Offer
shall have been terminated in accordance with the terms of the Merger Agreement or (ii) this
Agreement shall have been terminated in accordance with Section 9.

 

3

 

(c) Stockholder hereby (i) waives and agrees not to exercise any rights of appraisal or rights
to dissent from the Merger that Stockholder may have, and (ii) except with respect to claims based
on fraud, agrees not to commence or join in, and agrees to take all actions necessary to opt out of
any class in any class action with respect to, any claim, derivative or otherwise, against Parent,
Merger Sub, the Company or any of the their respective successors (x) challenging the validity of,
or seeking to enjoin the operation of, any provision of this Agreement or (y) alleging a breach of
any fiduciary duty of any Person in connection with the negotiation and entry into the Merger
Agreement.

(d) If the Offer is terminated or withdrawn by Merger Sub, or the Merger Agreement is
terminated prior to the purchase of Tender Shares in the Offer, Parent and Merger Sub shall
promptly return, and shall cause any depository or paying agent acting on behalf of Parent and
Merger Sub, to return all tendered Shares to the Stockholder.

SECTION 4. Transfer of the Shares; Other Actions.

(a) Prior to the termination of this Agreement, except as otherwise provided herein (including
pursuant to Section 3 or Section 5) or in the Merger Agreement, Stockholder shall not, and shall
cause each of its subsidiaries, if any, not to: (i) transfer, assign, sell, gift-over, hedge,
pledge or otherwise dispose (whether by sale, liquidation, dissolution, dividend or distribution)
of, enter into any derivative arrangement with respect to, create or suffer to exist any
Encumbrances (other than Permitted Encumbrances) on or consent to any of the foregoing
(“Transfer”), any or all of the Stockholder’s Equity Interests in the Company, including
any Shares, or any right or interest therein; (ii) enter into any contract, option or other
agreement, arrangement or understanding with respect to any Transfer; (iii) grant any proxy,
power-of-attorney or other authorization or consent with respect to any of the Shares with respect
to any matter that is, or that is reasonably likely to be exercised in a manner, inconsistent with
the transactions contemplated by the Merger Agreement or the provisions thereof; (iv) deposit any
of the Stockholder’s Equity Interests, including the Shares, into a voting trust, or enter into a
voting agreement or arrangement with respect to any of such Equity Interests, including the Shares;
or (v) knowingly, directly or indirectly, take or cause the taking of any other action that would
restrict, limit or interfere with the performance of such Stockholder’s obligations hereunder or
the transactions contemplated hereby, excluding any bankruptcy filing. Any action taken in
violation of the foregoing sentence shall be null and void ab initio. If any involuntary Transfer
of any of the Shares shall occur (including, but not limited to, a sale by Stockholder’s trustee in
any bankruptcy, or a sale to a purchaser at any creditor’s or court sale), the transferee (which
term, as used herein, shall include any and all transferees and subsequent transferees of the
initial transferee) shall take and hold such Shares subject to all of the restrictions, liabilities
and rights under this Agreement, which shall continue in full force and effect until valid
termination of this Agreement.

(b) Stockholder agrees that it shall not, and shall cause each of his Affiliates not to,
become a member of a “group” (as that term is used in Section 13(d) of the Exchange Act) with
respect to any shares of Company Common Stock, Company Options, Company Restricted
Stock or any other voting securities of the Company for the purpose of opposing or competing
with or taking any actions inconsistent with the transactions contemplated by the Merger Agreement;
provided, however, that this Section 4(b) shall not apply if (i) the Offer shall
have been terminated in accordance with the terms of the Merger Agreement or (ii) this Agreement
shall have been terminated in accordance with Section 9.

 

4

 

(c) Notwithstanding the foregoing, Stockholder may make (i) Transfers of Shares by will or by
operation of law or other transfers for estate planning purposes, in which case any such transferee
shall agree in writing to be bound by this Agreement prior to the consummation of any such
Transfer, (ii) with respect to such Stockholder’s Company Options and Company Restricted Stock to
the extent permitted by the Company Stock Plans, Transfers of Shares to the Company as payment for
the (x) exercise price of such Stockholder’s Company Options and (y) taxes applicable to the
exercise of such Stockholder’s Company Options and Company Restricted Stock, (iii) Transfers of up
to [       ] Shares as charitable contributions, and (iv) Transfers as Parent may otherwise agree in
writing in its sole discretion.

(d) If so requested by Parent, Stockholder agrees that the Shares shall bear a legend stating
that they are subject to this Agreement, provided such legend shall be removed upon the valid
termination of this Agreement.

(e) The Stockholder hereby irrevocably elects to exercise his Company Options, conditioned
solely upon the occurrence of the Acceptance Time and the Wire Initiation, in a cashless exercise
such that the Stockholder will be entitled to receive immediately after the Wire Initiation in full
satisfaction of the Company’s obligations with respect to the Company Options the number of shares
of Company Common Stock equal to the aggregate number of shares of Company Common Stock underlying
the Company Options, less the number of shares of Company Common Stock (valued at $8.20 per share
for this purpose) withheld by the Company (i) in payment of the exercise price of the Company
Options and (ii) in order to satisfy all required withholding taxes due on account of the exercise
of the Company Options (the net shares so delivered, the “Option Shares”). The Company
covenants that it shall issue, or cause to be issued, duly and validly executed physical stock
certificates representing the Option Shares in the name of the Stockholder immediately after the
Wire Initiation in full satisfaction of the Company’s obligations under the Company Options.

(f) The Company covenants that immediately after the Acceptance Time and the Wire Initiation
the Company shall issue, or cause to be issued, a duly and validly executed physical stock
certificate in the name of the Stockholder representing the aggregate number of shares of Company
Common Stock subject to any award of Company Restricted Stock held by the Stockholder immediately
prior to the Wire Initiation, less the number of shares of Company Common Stock (valued at $8.20
per share for this purpose) withheld by the Company in order to satisfy all required withholding
taxes due on account of the vesting of the Company Restricted Stock (the net shares so delivered,
the “RS Shares”).

 

5

 

(g) [The Company covenants that immediately after the Acceptance Time and the Wire Initiation
the Company shall issue, or cause to be issued, a duly and validly executed physical stock
certificate in the name of the Stockholder representing the aggregate number of shares (not to
exceed 1,700,000) required to be delivered pursuant to the terms of the Amended
and Restated Confidentiality and Non-Competition Agreement dated July 27, 2010, by and between
the Company and Stockholder (the “NC Shares”).]1

(h) The Stockholder hereby irrevocably directs the Company, on his behalf, to transfer the
share certificates issued pursuant to Sections 4(e), (f) [and (g)] with respect to the Option
Shares, the RS Shares [and the NC Shares] to Merger Sub immediately upon the Wire Initiation, and
the Company covenants to so transfer and deliver such share certificates to Merger Sub.

(i) Merger Sub shall pay to Stockholder an amount equal to $8.20 per share for the Option
Shares, RS Shares [and NC Shares]. The “Wire Initiation” means the initiation by or on
behalf of Merger Sub of a wire of immediately available funds to an account designated by
Stockholder in writing within ten (10) Business Days after the date hereof, in an amount equal to
the aggregate consideration for Stockholder’s Option Shares, RS Shares [and NC Shares].

(j) The Stockholder and the Company acknowledge and agree that (i) no changes may be made to
the Stockholder’s directives to exercise the Company Options, issue the applicable shares of
Company Common Stock to the Stockholder and transfer all of the share certificates with respect to
the shares pursuant to Sections 4(e)-[(h)] without the express written consent of Parent, (ii) Parent
is an intended third party beneficiary of Sections 4(e)-[(h)] and (iii) all Stockholder directives
pursuant to Sections 4(e), [(g)and (h)] shall be binding upon Stockholder’s estate, beneficiaries,
heirs, successors, assigns and any other person who may acquire beneficial ownership of, or any
other interest in, the Company Options, the Option Shares, and RS Shares [and/or the NC Shares],
except for any such person who may acquire beneficial ownership of, or any other interest in, the
Company Options, the Option Shares, and RS Shares [and/or the NC Shares] pursuant to Section
4(c)(iii) hereof.

SECTION 5. Voting of Shares; Grant of Irrevocable Proxy; Appointment of Proxy.

(a) Without in any way limiting Stockholder’s right to vote the Shares in its sole discretion
on any other matters that may be submitted to a stockholder vote, consent or other approval, at
every meeting of Company Stockholders called, and at every adjournment or postponement thereof,
Stockholder shall, or shall cause the holder of record on any applicable record date to, vote all
Shares beneficially owned or controlled by Stockholder (the “Vote Shares”) (i) in favor of
the Merger or any other transaction pursuant to which Parent proposes to acquire the Company,
whether by tender offer or merger, in which stockholders of the Company would receive aggregate
consideration per share of Company Common Stock equal to or greater than the consideration to be
received by such stockholders in the Offer and the Merger and/or (ii) against (A) any action or
agreement which would in any material respect impede, interfere with or prevent the Offer or the
Merger, including, but not limited to, any other extraordinary corporate transaction, including, a
merger, acquisition, sale, consolidation, reorganization, recapitalization, extraordinary dividend
or liquidation involving the Company and any Person (other than Parent, Merger Sub or their
Affiliates), or any other proposal of any Person (other than Parent, Merger Sub or their
Affiliates) to acquire the Company or all or substantially all of the assets thereof, (B) any
Acquisition Proposal and any action in furtherance of any Acquisition
Proposal and (C) any action, proposal, transaction or agreement that would reasonably be
expected to result in a breach of any covenant, representation or warranty or any other obligation
or agreement of Stockholder under this Agreement.

 

	 	 	 
	1	 	Applicable to Kerry Hicks only.

 

6

 

(b) Stockholder hereby irrevocably grants to, and appoints, Parent and any designee thereof,
Stockholder’s proxy and attorney-in-fact (with full power of substitution), for and in the name,
place and stead of such Stockholder, to attend any meeting of the stockholders of the Company on
behalf of such Stockholder with respect to the matters set forth in Section 5(a), to include such
Shares in any computation for purposes of establishing a quorum at any such meeting of stockholders
of the Company, and to vote all Vote Shares, or to grant a consent or approval in respect of the
Vote Shares, in connection with any meeting of the stockholders of the Company or any action by
written consent in lieu of a meeting of stockholders of the Company in a manner consistent with the
provisions of Section 5(a). Stockholder hereby affirms that the irrevocable proxy set forth in
this Section 5(b) is given in connection with the execution of the Merger Agreement, and that such
irrevocable proxy is given to secure the performance of the duties of Stockholder under this
Agreement. Stockholder hereby further affirms that the irrevocable proxy is coupled with an
interest and, except as set forth in this Section or in Section 9 hereof, is intended to be
irrevocable in accordance with the provisions of Section 212 of the DGCL.

(c) Stockholder hereby represents that any proxies heretofore given in respect of the Shares,
if any, are revocable, and hereby revokes such proxies.

SECTION 6. No Solicitation. Stockholder shall not, nor shall it authorize or permit
any of his or her Representatives to, directly or indirectly, (i) initiate, solicit, propose,
encourage or take any other action to facilitate (including by providing information) any
proposals or offers that constitute, or would reasonably be expected to lead to an Acquisition
Proposal, (ii) enter into any agreement with respect to any Acquisition Proposal, or (iii) engage
in, continue or otherwise participate in any discussions or negotiations regarding, or provide any
non-public information or data concerning the Company or any Company Subsidiary to any Person
relating to any Acquisition Proposal or any proposal or offer that would reasonably be expected to
lead to an Acquisition Proposal. The Stockholder shall, and shall cause its Representatives to,
immediately cease all discussions and negotiations with any Person that may be ongoing with respect
to any proposal that constitutes, or is reasonably expected to result in, any Acquisition Proposal
and request the prompt return or destruction of all confidential information previously furnished.

SECTION 7. Directors and Officers. This Agreement shall apply to Stockholder solely
in Stockholder’s capacity as a holder of Company Common Stock, Company Options, Company Restricted
Stock and/or other Equity Interests in the Company and not in such Stockholder’s capacity as a
director, officer or employee of the Company or in such Stockholder’s capacity as a trustee or
fiduciary of any employee benefit plan or trust. Notwithstanding any provision of this Agreement to
the contrary, nothing in this Agreement shall (or require Stockholder to attempt to) limit or
restrict a director and/or officer of the Company in the exercise of his or her fiduciary duties as
a director and/or officer of the Company or in his or her capacity as a trustee or fiduciary of any
employee benefit plan or trust or prevent or be construed to create any obligation on the part of
any director and/or officer of the Company or any trustee or fiduciary of
any employee benefit plan or trust from taking any action in his or her capacity as such
director, officer, trustee and/or fiduciary.

 

7

 

SECTION 8. Further Assurances. Each party shall execute and deliver any additional
documents and take such further actions as may be reasonably necessary or desirable to carry out
all of the provisions hereof, including all of the parties’ obligations under this Agreement,
including without limitation to vest in Parent the power to vote the Shares to the extent
contemplated by Section 5 hereof.

SECTION 9. Termination.

(a) This Agreement, and all rights and obligations of the parties hereunder, shall
terminate immediately upon the earliest to occur of the following:

	 	(i)	 	termination of the Merger Agreement in accordance with its terms;
	 
	 	(ii)	 	the Effective Time; or
	 
	 	(iii)	 	the mutual written consent of Parent and Stockholder.

(b) Upon termination of this Agreement, except in the case of liability for any intentional
breach by any party to this Agreement prior to termination from which liability termination shall
not relieve any such party, (i) all obligations of the parties under this Agreement will terminate,
without any liability or other obligation on the part of any party hereto to any Person in respect
hereof or the transactions contemplated hereby, and no party shall have any claim against another
(and no Person shall have any rights against such party), whether under contract, tort or
otherwise, and (ii) Stockholder shall be permitted to withdraw, and shall be deemed to have validly
and timely withdrawn, their Shares pursuant to the Offer.

(c) Sections 10 and 13(e) hereof shall survive the termination of this Agreement.

SECTION 10. Expenses. All fees and expenses incurred in connection this Agreement and
the transactions contemplated hereby shall be paid by the party incurring such fees or expenses,
whether or not the Offer or the Merger is consummated.

SECTION 11. Public Announcements. Parent, Merger Sub, and Stockholder (in his capacity
as a stockholder of the Company and/or signatory to this Agreement) shall only make public
announcements regarding this Agreement and the transactions contemplated hereby that are consistent
with the public statements made by the Company and Parent pursuant to the Merger Agreement, without
the prior written consent of Parent. Stockholder (i) consents to and authorizes the publication
and disclosure by Parent and its Affiliates of its identity and holding of the Shares and the
nature of its commitments and obligations under this Agreement in any announcement or disclosure
required by the SEC or other Governmental Entity, provided that, Parent shall
provide Stockholder and his counsel reasonable opportunity to review and comment thereon, and
Parent shall give reasonable consideration to any such comments, and (ii) agrees promptly to give
to Parent any information it may reasonably require for the preparation of any such disclosure
documents. Stockholder agrees to promptly notify Parent of any required corrections with respect
to any written information supplied by it specifically for use in any such
disclosure document, if and to the extent that any shall have become false or misleading in
any material respect.

 

8

 

SECTION 12. Adjustments. In the event of (a) any stock split, stock dividend, merger,
reorganization, recapitalization, reclassification, combination, exchange of shares or the like of
the capital stock of the Company on, of or affecting the Shares or (b) that Stockholder shall
become the beneficial owner of any additional shares of Company Common Stock, then the terms of
this Agreement shall apply to the shares of Company Common Stock held by Stockholder immediately
following the effectiveness of the events described in clause (a) or Stockholder becoming the
beneficial owner thereof as described in clause (b), as though, in either case, they were Shares
hereunder. In the event that Stockholder shall become the beneficial owner of any other securities
entitling the holder thereof to vote or give consent with respect to the matters set forth in
Section 5 hereof, then the terms of Section 5 hereof shall apply to such other securities as though
they were Shares hereunder.

SECTION 13. Miscellaneous.

(a) Notices. Any notices or other communications required or permitted under, or
otherwise in connection with this Agreement, shall be in writing and shall be deemed to have been
duly given when delivered in person or upon confirmation of receipt when transmitted by facsimile
transmission or by electronic mail (but only if followed by transmittal by national overnight
courier or hand delivery on the next Business Day) or on receipt after dispatch by registered or
certified mail, postage prepaid, addressed, or on the next Business Day if transmitted by national
overnight courier, in each case as follows:

If to Stockholder, to:

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	[                          ]
	 	 	 	 
	 

	 	[                          ]
	 	 	 	 
	 

	 	[                          ]
	 	 	 	 
	 

	 	Attention:
	 	[                          ]
	 	 
	 

	 	Facsimile:
	 	[                          ]
	 	 
	 

	 	E-mail:
	 	[                          ]
	 	 

	 	 	 	 	 	 	 
	 	 	If to the Company, to:

Health Grades, Inc.

500 Golden Ridge Road, Suite 100

Golden, CO 80401	 	 
	 

	 	Attention:
	 	Chief Financial Officer	 	 
	 

	 	Telephone:
	 	(303) 716-0041	 	 
	 

	 	Facsimile:
	 	(303) 716-6635	 	 
	 	 	E-mail: adodge@healthgrades.com	 	 

 

9

 

with copies (which shall not constitute notice)(for Stockholder and the Company) to:

	 	 	 	 	 	 	 
	 	 	Shearman & Sterling LLP

599 Lexington Avenue

New York, New York 10022
	 	 
	 

	 	Attention:
	 	Christa A. D’Alimonte	 	 
	 

	 	Facsimile:
	 	(212) 848-7179	 	 
	 

	 	E-mail:
	 	cdalimonte@shearman.com	 	 

	 	 	 	 	 	 	 
	 	 	Faegre & Benson LLP

3200 Wells Fargo Center

1700 Lincoln Street

Denver, CO 80203-4532
	 	 
	 

	 	Attention:
	 	 Douglas R. Wright	 	 
	 

	 	Facsimile:
	 	 (303) 607-3600	 	 
	 

	 	E-mail:
	 	dwright@faegre.com	 	 

If to Parent or Merger Sub, to:

	 	 	 	 	 	 	 
	 	 	Mountain Acquisition Corp.

c/o Vestar Capital Partners V, L.P.

245 Park Avenue, 41st Floor

New York, New York 10167
	 	 
	 

	 	Attention:
	 	Norman Alpert and General Counsel	 	 
	 

	 	Telephone:
	 	(212) 351 1600	 	 
	 

	 	Facsimile:
	 	(212) 808 4922	 	 
	 

	 	Email:
	 	nalpert@vestarcapital.com	 	 
	 

	 	 	 	sdellarocca@vestarcapital.com	 	 

with a copy to:

	 	 	 	 	 	 	 
	 	 	Kirkland & Ellis LLP

601 Lexington Avenue

New York, New York 10022
	 	 
	 

	 	Attention:
	 	Michael Movsovich	 	 
	 

	 	 	 	Kester Spindler	 	 
	 

	 	Facsimile:
	 	(212) 446-4900	 	 
	 

	 	E-mail:
	 	michael.movsovich@kirkland.com	 	 
	 

	 	 	 	kester.spindler@kirkland.com	 	 

 

10

 

(b) Headings. The headings contained in this Agreement are for reference purposes
only and shall not affect in any way the meaning or interpretation of this Agreement.

(c) Counterparts. This Agreement may be executed by facsimile and in counterparts,
and by the different parties in separate counterparts, each of which when executed shall be deemed
to be an original but all of which taken together shall constitute one and the same agreement.

(d) Entire Agreement. This Agreement (together with the schedules hereto) constitutes
the entire agreement of the parties hereto with respect to the subject matter hereof and supersede
all prior agreements and undertakings, both written and oral, among the parties hereto, or any of
them, with respect to the subject matter hereof and thereof. EACH PARTY HERETO AGREES THAT, EXCEPT
FOR THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS AGREEMENT, NEITHER STOCKHOLDER, PARENT NOR
MERGER SUB MAKES ANY REPRESENTATIONS OR WARRANTIES TO THE OTHER, AND EACH PARTY HEREBY DISCLAIMS
ANY OTHER REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, OR AS TO THE ACCURACY OR COMPLETENESS
OF ANY OTHER INFORMATION, MADE (OR MADE AVAILABLE BY) BY ITSELF OR ANY OF ITS REPRESENTATIVES, WITH
RESPECT TO, OR IN CONNECTION WITH, THE NEGOTIATION, EXECUTION OR DELIVERY OF THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY, NOTWITHSTANDING THE DELIVERY OR DISCLOSURE TO THE OTHER OR THE
OTHER’S REPRESENTATIVES OF ANY DOCUMENTATION OR OTHER INFORMATION WITH RESPECT TO ANY ONE OR MORE
OF THE FOREGOING.

(e) No Third Party Beneficiaries. Each party hereby agrees that their respective
representations, warranties and covenants set forth herein are solely for the benefit of the other
party hereto, in accordance with and subject to the terms of this Agreement, and this Agreement is
not intended to, and does not, confer upon any Person other than the parties hereto any rights or
remedies hereunder, including the right to rely upon the representations and warranties set forth
herein.

(f) Governing Law, Jurisdiction. THIS AGREEMENT, AND ALL CLAIMS OR CAUSES OF ACTION
(WHETHER AT LAW, IN CONTRACT OR IN TORT) THAT MAY BE BASED UPON, ARISE OUT OF OR RELATE TO THIS
AGREEMENT OR THE NEGOTIATION, EXECUTION OR PERFORMANCE HEREOF SHALL BE CONSTRUED, PERFORMED AND
ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT GIVING EFFECT TO ITS
PRINCIPLES OR RULES OF CONFLICT OF LAWS TO THE EXTENT SUCH PRINCIPLES OR RULES WOULD REQUIRE OR
PERMIT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION. Any Action against, arising out of or
relating to this Agreement or the transactions contemplated hereby, including any Action against
any member of the Parent Group, shall be brought solely and exclusively in the Court of Chancery of
the State of Delaware; provided that if (and only after) such courts determine that they lack
subject matter jurisdiction over any such legal Action, such legal Action shall be brought solely
and exclusively in the federal courts of the United States located in the State of Delaware;

 

11

 

provided, further, that if (and only after) both the Court of
Chancery of the State of Delaware and
the federal courts of the United States located in the State of Delaware determine that they lack subject matter
jurisdiction over any such legal Action, such legal Action shall be brought in the United States
District Court for the Southern District of New York. Each of the parties agrees that a final
judgment (subject to any appeals therefrom) in any such Action shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner provided by
applicable Law. Each party hereby irrevocably submits to the exclusive jurisdiction of such
courts, in accordance with the foregoing order of priority, in respect of any Action arising out of
or relating to this Agreement or the transactions contemplated hereby, and hereby irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do so, any objection
which it may now or hereafter have to the laying of venue of any Action arising out of or relating
to this Agreement or the transactions contemplated hereby in any such court in accordance with the
provisions of this Section 13(f). Each of the parties hereby irrevocably waives, to the fullest
extent permitted by applicable Law, the defense of an inconvenient forum to the maintenance of such
action or proceeding in any such court. Each of the parties hereby irrevocably and unconditionally
consents to service of process in the manner provided for notices in Section 13(a). Nothing in
this Agreement will affect the right of any party to serve process in any other manner permitted by
applicable Law.

(g) Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY
WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND
THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY
HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, INCLUDING ANY CONTROVERSY
INVOLVING ANY MEMBER OR REPRESENTATIVE OF THE PARENT GROUP UNDER THIS AGREEMENT. EACH PARTY
CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE
IMPLICATIONS OF THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (iv) EACH PARTY
HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 13(G).

(h) Assignment. Neither this Agreement nor any of the rights, interests or
obligations hereunder shall be assigned by any of the parties hereto (whether by operation of Law
or otherwise) without the prior written consent of the other party hereto. No assignment by any
party hereto shall relieve such party of any of its obligations hereunder. Subject to the
foregoing, this Agreement will be binding upon, inure to the benefit of and be enforceable by the
parties hereto and their respective successors and permitted assigns.

(i) Severability of Provisions. If any term or other provision of this Agreement is
invalid, illegal or incapable of being enforced by any rule of Law or public policy, all other
terms and provisions of this Agreement shall nevertheless remain in full force and effect, insofar
as the economic or legal substance of the transactions contemplated by this Agreement is not
affected
in any manner materially adverse to any party. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in
good faith to modify this Agreement so as to effect the original intent of the parties as closely
as possible to the fullest extent permitted by applicable Law in a mutually acceptable manner so
that the transactions contemplated by this Agreement are fulfilled to the greatest extent possible.

 

12

 

(j) Specific Performance. The parties hereto agree that irreparable damage would occur
in the event that any of the provisions of this Agreement were not performed in accordance with
their specific terms or were otherwise breached, and that money damages or other legal remedies
would not be an adequate remedy for such damages. It is accordingly agreed that prior to any valid
termination of this Agreement, the parties hereto shall be entitled to an injunction or injunctions
to prevent breaches of this Agreement or to enforce specifically the performance of the terms and
provisions hereof, in addition to any other remedy at law or equity. Notwithstanding anything to
the contrary contained in this Agreement, Stockholder agrees and acknowledges that Stockholder is
not a third party beneficiary under the Merger Agreement or the Equity Commitment Letter.

(k) Amendment. No amendment or modification of this Agreement shall be effective
unless it shall be in writing and signed by each of the parties hereto, and no waiver or consent
hereunder shall be effective against any party unless it shall be in writing and signed by such
party.

(l) Binding Nature. This Agreement is binding upon and is solely for the benefit of
the parties hereto and their respective successors, legal representatives and assigns.

(m) No Recourse. Parent and Merger Sub agree that Stockholder (in his capacity as a
stockholder of the Company) will not be liable for claims, losses, damages, liabilities or other
obligations resulting from the Company’s breach of the Merger Agreement.

(n) No Presumption. Each party hereto has participated in the drafting of this
Agreement, which each party hereto acknowledges is the result of extensive negotiations between the
parties; accordingly, in the event an ambiguity or question of intent or interpretation arises,
this Agreement shall be construed as if drafted jointly by the parties, and no presumption or
burden of proof shall arise favoring or disfavoring any party hereto by virtue of the authorship of
any provisions of this Agreement.

(o) No Ownership Interest. Except as otherwise provided herein, nothing contained in
this Agreement shall be deemed to vest in Parent any direct or indirect ownership or incidence of
ownership of or with respect to the Shares. All rights, ownership and economic benefits of and
relating to the Shares shall remain vested in and belong to the Stockholder, and Parent shall have
no authority to manage, direct, restrict, regulate, govern, or administer any of the policies or
operations of the Company or exercise any power or authority to direct the Stockholder in the
voting of any of the Shares, except as otherwise provided herein.

[Signature Page Follows]

 

13

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered as of the date first written above.

	 	 	 	 	 
	 	MOUNTAIN ACQUISITION CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MOUNTAIN MERGER SUB CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[STOCKHOLDER], in his individual capacity

 	 
	 	 	 
	 	[Name]  	 	 
	 	 	 	 
	 
	 	HEALTH GRADES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to the Tender and Support Agreement]

 

 

 

SCHEDULE I

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Name and Address	 	Company Common Stock 	 	 	Restricted Stock	 	 	Vested Options	 	 	Unvested Options	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL

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