Document:

Exhibit
10.10

 

EXECUTION
COPY

 

NON-COMPETE AND COVENANT AGREEMENT

 

This NON-COMPETE AND COVENANT AGREEMENT (this
“Agreement”) is dated as of May 14, 2004 by and among Lazy Days’
R.V. Center, Inc., a Florida corporation (the “Company”), RV Acquisition
Inc., a Delaware corporation (“Buyer”), Donald W. Wallace  (“Wallace”), and Bruckmann, Rosser,
Sherrill & Co. II, L.P., a Delaware limited partnership (“BRS”).  Capitalized terms used but not otherwise
defined herein shall have the meaning ascribed to such terms in Section 5.

 

WHEREAS, Wallace is a seller of certain
securities of LD Holdings, Inc., a Delaware corporation (“Holdings”),
the parent of the Company, to Buyer pursuant to the Stock Purchase Agreement by
and among the Company, Buyer, Holdings, the Employee Stock Ownership Plan and
Trust for the Employees of Lazy Days and the other stockholders of Holdings,
dated as of April 27, 2004 (the “Stock Purchase Agreement”).

 

WHEREAS, pursuant to Section 8.2(t) of
the Stock Purchase Agreement, a condition of the Buyer to consummate the
transactions contemplated under the Stock Purchase Agreement is Wallace’s
agreement to be bound by this Agreement, and accordingly, the parties desire to
enter into this Agreement to fulfill such condition.

 

WHEREAS, Wallace is entering into the
Employment Agreement, dated as of the date hereof by and among the Company,
Wallace, Buyer and BRS (the “Employment Agreement”), which provides for
the employment of Wallace as the President and Chief Executive Officer of the
Company.

 

WHEREAS, a condition of the Company to enter
into the Employment Agreement, is Wallace’s agreement to be bound by this
Agreement, and accordingly, the parties desire to enter into this Agreement to
fulfill such condition.

 

WHEREAS, Buyer owns, directly or indirectly, a
majority of the issued and outstanding shares of the Company.

 

NOW, THEREFORE, in consideration of the
foregoing and the respective representations, warranties, covenants and
agreements set forth herein, the Stock Purchase Agreement and the Employment
Agreement, and other good and valuable consideration, the receipt and
sufficiency are hereby acknowledged, the parties hereto agree as follows:

 

1.                                       Public
Bonds.  As a material inducement for
BRS and Buyer to enter into the transactions contemplated by the Stock Purchase
Agreement, Wallace hereby agrees that he shall not at any time hold, directly
or indirectly, in excess of $15,200,000 (the “Notes Threshold”) of the
aggregate principal amount of 11.75% Senior Notes due 2012 of the Company (the
“Notes”); provided, that in the event that BRS acquires any of the
Notes (the aggregate principal amount of such Notes, the “BRS Notes Amount”),
Wallace shall have the right to exceed the Notes Threshold by an amount bearing
the same ratio to the BRS Notes Amount as Wallace’s ownership of common equity
securities of Buyer bears to BRS’ ownership of common equity securities of
Buyer.

 

 

2.                                       Confidential
Information.  Wallace acknowledges
that he has obtained and will obtain information concerning the business or affairs
of the Company, any of its Subsidiaries or other affiliated entities (“Confidential
Information”).  Therefore, Wallace
agrees that he shall not, directly or indirectly, use for or disclose to any
unauthorized person or use for his own purposes any Confidential Information
unless (i) such Confidential Information becomes generally  known to and available for use by the
public other than as a result of Wallace’s acts or omissions to act;
(ii) such Confidential Information is rightfully received by Wallace from
a party who was not subject to any obligations of confidentiality; or
(iii) Wallace is required by order of a court of competent jurisdiction
(by subpoena or similar process) to disclose or discuss any Confidential
Information; provided, that in
such case, Wallace shall promptly inform the Company of such order, shall
cooperate with any reasonable effort by the Company to obtain a protective
order or to otherwise restrict such disclosure, and shall only disclose
Confidential Information to the minimum extent necessary to comply with any
such court order.  If in the absence of
a protective order or the receipt of a waiver hereunder, Wallace, on the advice
of counsel, is compelled to disclose any Confidential Information to any
tribunal or else stand liable for contempt, Wallace shall promptly inform the
Company of such obligation, shall cooperate with any reasonable effort by the
Company to obtain a protective order or to otherwise restrict such disclosure,
and shall only disclose Confidential Information to the minimum extent
necessary to comply with any such obligation. 
Wallace shall deliver to the Company at the termination of the
Employment Period, or at any other time the Company may request, all memoranda,
notes, plans, records, reports, computer tapes and software and other documents
and data (and copies thereof) relating to the Confidential Information, Work
Product and the business of the Company, any of its Subsidiaries or other
affiliated entities which he may then possess or have under his control.

 

3.                                       Inventions
and Patents.  Wallace agrees that
all inventions, innovations, improvements, developments, methods, designs,
analyses, drawings, reports, and all similar or related information which
relates to the Company’s or any of its Subsidiaries’ actual or anticipated
business, research and development or existing or future products or services
and which are conceived, developed or made by Wallace while employed by the
Company or any of its Subsidiaries (“Work Product”) belong to the
Company or such Subsidiary.  Wallace
will promptly disclose such Work Product to the Board and perform all actions
reasonably requested by the Board (whether during or after the Employment
Period) to establish and confirm such ownership (including, without limitation,
assignments, consents, powers of attorney and other instruments).

 

4.                                       Noncompete,
Nonsolicitation.

 

(a)                                  Wallace
acknowledges that in the course of his employment with the Company and its
Subsidiaries he has become familiar, and he will become familiar, with the
Company’s and its Subsidiaries’ trade secrets and with other Confidential
Information and that his services have been and will be of special, unique and
extraordinary value to the Company and its Subsidiaries.  Therefore, Wallace agrees that during the
period beginning on the date hereof and ending on the later of (i) the
fifth anniversary of the date hereof, and (ii) the third anniversary of
the termination of Wallace’s employment with the Company for any reason, (the

 

2

 

“Noncompete Period”), he shall not
shall not directly or indirectly own, manage, control, participate in, consult
with, render services for, or in any manner engage in any business (including
by himself or through any other entity) competing with the businesses of the
Company or its Subsidiaries in The United States of America, Canada or The
United States of Mexico (the “Territory”) as such businesses exist or
are in process on the date of the termination of Wallace’s employment with the
Company.  Nothing herein shall prohibit
Wallace from being a passive owner of not more than 5% of the outstanding stock
of a corporation which is publicly traded, so long as Wallace has no active
participation in the business of such corporation.

 

(b)                                 During
the Noncompete Period, Wallace shall not directly or indirectly through another
entity (i) influence or attempt to influence any of the customers of the
Company or its Subsidiaries to divert their business or patronage from the
Company or its Subsidiaries to any other person or company engaged in a similar
business, (ii) disclose to any person or entity the names, addresses, or
requirements of, or other confidential information or trade secrets relating to
any customers of the Company or its Subsidiaries, the prices charged to such
customers or the practices used in servicing such customers (other than in the
course of Wallace’s employment and consistent with his duties as the President
and Chief Executive Officer), (iii) make any statement or do any act
intended to cause existing or potential customers of the Company or its
Subsidiaries to make use of the services or purchase the products of any
competitive business, (iv) hire or attempt to hire any person who was
employed by the Company or its Subsidiaries for any type of employment one
hundred eighty days prior to the date of Termination, (v) induce or
attempt to induce any employee of the Company or its Subsidiaries to leave his
or her employ or in any way interfere with the relationship between the Company
or its Subsidiaries and any of their employees, or (vi) in any way
interfere with relationship between the Company or any of its Subsidiaries with
any of their suppliers.

 

(c)                                  The
parties hereto acknowledge and agree that the Company will suffer irreparable
harm from a breach by Wallace of any of the covenants or agreements contained
in Sections 2, 3 and 4.  Wallace further
acknowledges that the restrictive covenants set forth in Sections 2,
3 and 4 are of a special, unique, unusual and extraordinary
character, the loss of which cannot be adequately compensated by damages.  Wallace agrees that the periods of
restriction and geographic area of restriction imposed by the provisions of
this Section 4 are fair and reasonable and are reasonably required
for the protection of the Company in whose favor such restrictions
operate.  The Company acknowledges that,
but for Wallace’s agreements to be bound the restrictive covenants set forth in
Sections 2, 3 and 4, neither the Company, Buyer nor
BRS would not have entered into this Agreement, the Stock Purchase Agreement or
the Employment Agreement.  The
restrictive covenants set forth in this Agreement supersede any restrictive
covenants with respect to the subject matters addressed by the restrictive
covenants set forth in Sections 2, 3 and 4 set forth
in any current agreement between Wallace and the Company.  Wallace agrees that the Company has a

 

3

 

legitimate business interest to protect
justifying the restrictive covenants set forth in Sections 2, 3
and 4.  Such legitimate business
interests include:  (i) trade
secrets, as defined in Florida Statute 688.002(4); (ii) valuable
confidential business information that does not otherwise qualify as a trade
secret; (iii) substantial relationships with prospective or existing
customers; and (iv) customer goodwill. 
In the event of an alleged or threatened breach by Wallace of any of the
provisions of Sections 2, 3 and 4, the Company or its
successor or assign may, in addition to all other rights and remedies existing
in its or their favor, apply to any court of competent jurisdiction for
specific performance and/or injunctive or other equitable relief (without
posting a bond or other security) in order to enforce or prevent any violations
of the provisions hereof (including, without limitation, the extension of the
Noncompete Period by a period equal to the duration of the violation of Sections 4).  In the event of an alleged breach or
violation by Wallace of any of the provisions of Sections 4, the
Noncompete Period shall be tolled until such alleged breach or violation is
resolved.

 

(d)                                 Wallace
and the Company intends that the covenants of Section 4(a) shall be
deemed to be a series of separate covenants, one for each month of the
Noncompete Period.  Additionally,
Wallace and the Company intend that the covenants of Section 4(a)
shall be deemed to be a series of separate covenants, are for each county or
province of each and every state, territory or jurisdiction within the
Territory and one for each month of the Noncompete Period.  If, at the time enforcement is sought of any
of the provisions of Sections 4, a court of competent jurisdiction
holds that the restrictions stated herein are unreasonable under the
circumstances then existing, the parties hereto agree  that the maximum  period,
scope or geographical area reasonable under such circumstances shall be
substituted for the stated period, scope or area.

 

(e)                                  Except
for the Company’s compliance with Section 4(g), the existence of
any claims or cause of action of Wallace against the Company, whether
predicated upon this Agreement or otherwise, shall not constitute a defense to
the enforcement by the Company of the restrictive covenants set forth in Sections 2,
3 and 4.  The refusal or
failure of the Company to enforce any of the restrictive covenants set forth in
Sections 2, 3 and 4 against Wallace, for any reason,
shall not constitute an act of precedent or a defense to the enforcement by the
Company of the restrictive covenants set forth herein, nor shall it give rise
to any claim or cause of action by Wallace against the Company.  If any action should have to be brought by
the Company against Wallace to enforce the provisions of Sections 2,
3 and 4, Wallace recognizes, acknowledges and agrees that the
Company is entitled to all of the civil remedies provided Sections 542.335,
688.003, and 812.035, Florida Statutes, including without limitation
(i) preliminary and permanent injunctive relief restraining Wallace from
unauthorized disclosure or use of any trade secret or confidential information,
in whole or in part, or otherwise violating any of the restrictive covenants
set forth in Sections 2, 3 and 4; (ii) actual
damages; (iii) attorney’s fees in trial and appellate courts; and
(iv) costs and expenses of investigation and litigation, including expert
fees and

 

4

 

other costs and expenses.  Nothing in this Agreement shall be construed
as prohibiting the Company from pursuing any other legal or equity remedies
available for breach or threatened breach to the provisions of Sections 2,
3 and 4, which may otherwise be available.  Wallace expressly acknowledges that the
restrictive covenants set forth in Sections 2, 3 and 4
apply to any successor or permitted assign of the Company, Buyer and BRS as
direct third-party beneficiary and that such restrictive covenants are
expressly intended for the benefit of such successor and assign.

 

(f)                                    Except
for the Company’s compliance with Section 4(g), each of Wallace and
the Company agrees that the covenants made in Section 4(a) and 4(b)
shall be construed as an agreement independent of any other provision of this
Agreement and shall survive any order of a court of competent jurisdiction
terminating any other provision of this Agreement.

 

(g)                                 The
Company shall pay Wallace, in consideration of the covenants made by Wallace in
Sections 2, 3 and 4, and in addition to any other
consideration under the Stock Purchase Agreement and his salary under the
Employment Agreement, as independent and special consideration, $2,000,000 per
annum (payable in accordance with the Company’s payroll practices, but at least
monthly, and in accordance with the terms and conditions of the Employment
Agreement) for so long as Wallace is employed as the President and Chief
Executive Officer by the Company or serves as a member of the board of
directors of Buyer, Holdings or the Company and, if Wallace’s employment is
terminated by the Company without Cause or by Wallace within 90 days of a
Good Reason Event, for a period of twelve months thereafter, if such employment
is terminated prior to the eighteen month anniversary of the date hereof, or
six months thereafter, if such employment is so terminated on or after the
eighteen month anniversary of the date hereof; provided,
that if following such termination Wallace continues to serve as a member of
the board of directors of Buyer, Holdings or the Company, Wallace shall receive
such payment for the longer of (i) the twelve month or six month period,
as applicable, and (ii) the period during which he serves as a member of
the board of directors of Buyer, Holdings or the Company.  Wallace agrees that he shall be entitled to
the payments following the termination of his employment provided for in this Section 4(g)
if and only if he has not breached, as of the date of termination of the
Employment Period, (A) the provisions of Sections 2, 3
and 4(b)(ii) in any material respect, and (B) Section 4
(other than Section 4(b)(ii)), and does not breach such provisions
at any time during the period for which such payments are to be made; provided, that with respect to any breach
of Section 3, Wallace shall be given the opportunity to cure such
breach within 30 days; provided further,
that the Company’s obligation to make the payments following the termination of
his employment provided for in Section 4(g) will terminate upon
Wallace breaching during such severance period (A) the provisions of Sections 2,
3 and 4(b)(ii) in any material respect, or (B) Section 4
(other than Section 4(b)(ii)); provided,
that with respect to any breach of Section 3, Wallace shall be
given the opportunity to cure such breach within 30 days.

 

5

 

(h)                                 Notwithstanding
anything to the contrary set forth in this Agreement, in the event the Company
(A) (i) defaults in the performance of its obligations under that
certain Ground Lease dated July 15, 1999 between the Company and I-4 Land
Holding Limited Company (the “Landlord”), as amended as of the date
hereof (the “Ground Lease”), (ii) the Landlord takes possession of
the “Land” as defined in the Ground Lease, and (iii) the Company ceases
operations, then the provisions of Sections 2, 3 and 4
shall be null and void and Wallace shall not be restricted in any manner
whatsoever with respect to such sections, or (B) (i) defaults in the
performance of its obligations under the Ground Lease, (ii) the Landlord
takes possession of the Land, and (iii) continues to operate at another location,
then the Landlord may lease the Land to any Person, including a competitor to
the Company.

 

5.                                       Definitions:  As used herein, the following terms shall
have the following meanings:

 

(a)                                  “Board”
means the board of directors of the Company.

 

(b)                                 “Cause”
has the meaning ascribed to such term in the Employment Agreement.

 

(c)                                  “Employment
Period” has the meaning ascribed to such term in the Employment Agreement.

 

(d)                                 “Good
Reason Event”  has the meaning
ascribed to such term in the Employment Agreement.

 

(e)                                  “Person”
means an individual, a partnership, a corporation, an association, a joint
stock company, a limited liability company, a trust, a joint venture, an
unincorporated organization or a governmental entity or any department, agency
or political subdivision thereof.

 

(f)                                    “Subsidiary”
means, with respect to any Person, any corporation, partnership, association or
other business entity of which (i) if a corporation, a majority of the total
voting power of shares of stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or trustees
thereof is at the time owned or controlled, directly or indirectly, by that
Person or one or more of the other Subsidiaries of that Person or a combination
thereof, or (ii) if a partnership, limited liability company, association or
other business entity, a majority of the partnership or other similar ownership
interest thereof is at the time owned or controlled, directly or indirectly, by
any Person or one or more Subsidiaries of that Person or a combination
thereof.  For purposes hereof, a Person
or Persons shall be deemed to have a majority ownership interest in a
partnership, limited liability company, association or other business entity if
such Person or Persons shall be allocated a majority of partnership, limited
liability company, association or other business entity gains or losses or
shall be or control the managing director or general partner of such
partnership, limited liability company, association or other business entity.

 

6

 

(g)                                 “Termination”
has the meaning ascribed to such term in the Employment Agreement.

 

6.                                       Notices.  All notices, demands or other communications
to be given or delivered under or by reason of the provisions of this Agreement
will be in writing and will be deemed to have been given when delivered
personally, mailed by certified or registered mail, return receipt requested
and postage prepaid, or sent via a nationally recognized overnight courier, or
sent via facsimile to the recipient (followed by telephone confirmation to the
receiving party).  Such notices, demands
and other communications will be sent to the address indicated below:

 

To Wallace:

 

c/o Lazy Days’ R.V.
Center, Inc.

6130 Lazy Days Boulevard

Seffner, Florida 33584

Facsimile:  (813) 246-5240

 

With a copy, which shall
not constitute notice to Wallace, to:

 

Holland & Knight LLP

701 Brickell Avenue, Suite 3000

Miami, FL 33131

Attention:  Ronald Albert, Jr., Esq.

Facsimile:  (305) 789-7799

 

To the Company:

 

Lazy Days’ R.V. Center,
Inc.

6130 Lazy Days Boulevard

Seffner, Florida 33584

Attention:  General Counsel

Facsimile:  (813) 246-5240

 

With a copy, which shall
not constitute notice to the Company, to:

 

Kirkland & Ellis
LLP

Citigroup Center

153 East 53rd Street

New York, NY 10022-4675

Attention:  Kimberly P. Taylor, Esq.

Facsimile:  (212) 446-4900

 

To BRS and Buyer:

 

c/o Bruckmann, Rosser,
Sherrill & Co., Inc.

126 East 56th Street

New York, NY 10022

Facsimile: (212) 521-3799

Attention:  Thomas J. Baldwin

 

7

 

With a copy, which shall
not constitute notice to either BRS or Buyer, to:

 

Kirkland & Ellis
LLP

Citigroup Center

153 East 53rd Street

New York, NY 10022-4675

Attention:  Kimberly P. Taylor, Esq.

Facsimile:  (212) 446-4900

 

or such other address or to the attention of
such other person as the recipient party shall have specified by prior written
notice to the sending party.

 

7.                                       Miscellaneous.

 

(a)                                  Wallace’s Employment by the Company.  Nothing contained in this Agreement shall be
deemed to obligate the Company, Holdings, Buyer or BRS or any Subsidiary of the
Company to employ Wallace in any capacity whatsoever or to prohibit or restrict
the Company (or any of its Subsidiaries) from terminating the employment of
Wallace at any time or for any reason whatsoever, with or without Cause.

 

(b)                                 Severability.  Whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement is held to be invalid, illegal or
unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision or any other jurisdiction, but this Agreement will be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

 

(c)                                  Complete Agreement.  This Agreement embodies the complete agreement
and understanding among the parties and supersedes and preempts any and all
prior understandings, agreements or representations by or among the parties,
written or oral, which may have related to the subject matter hereof in any
way.

 

(d)                                 Counterparts.  This Agreement may be executed in separate counterparts, each of
which is deemed to be an original and all of which taken together constitute
one and the same agreement.

 

(e)                                  Successors and Assigns.  Except as otherwise provided herein, this
Agreement shall bind and inure to the benefit of and be enforceable by Wallace,
the Company, Buyer, BRS and their respective successors and assigns; provided, that the rights and obligations
of the Wallace under this Agreement shall not be assignable; provided further, that the rights and
obligations of the Company under this Agreement shall not be assignable except
to a purchaser of all or substantially all of the assets of the Company (provided, that such purchaser explicitly
assumes all of the Company’s obligations under this Agreement); provided further, that the rights and
obligations of Buyer and BRS under this Agreement shall not be

 

8

 

assignable except (i) to affiliates of
Buyer or BRS, or (ii) to any purchaser, directly or indirectly, of
(A) more than 50% of the voting securities of Buyer or the Company
(whether by merger, consolidation, sale or transfer of any or all of Buyer’s or
the Company’s outstanding capital stock), or (B) all or substantially all
of the assets of the Company.

 

(f)                                    Governing Law.  The corporate law of the State of Delaware will govern all
questions concerning the relative rights of Buyer and its stockholders.  All other questions concerning the construction,
validity and interpretation of this Agreement will be governed by and construed
in accordance with the domestic laws of the State of Florida, without giving
effect to any choice of law or conflict of law provision or rule (whether of
the State of Florida or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Florida.

 

(g)                                 Remedies. 
Each of the parties to this Agreement will be entitled to enforce its
rights under this Agreement specifically, to recover damages and costs (including
reasonable attorneys’ fees) caused by any breach of any provision of this
Agreement and to exercise all other rights existing in its favor.  The parties hereto agree and acknowledge
that money damages may not be an adequate remedy for any breach of the provisions
of this Agreement and that any party may in its sole discretion apply to any
court of law or equity of competent jurisdiction (without posting any bond or
deposit) for specific performance and/or other injunctive relief in order to
enforce or prevent any violations of the provisions of this Agreement.

 

(h)                                 Amendment and Waiver.  The provisions of this Agreement may be
amended and waived only with the prior written consent of all of the parties
hereto.

 

*  
*   *   *

 

9

 

IN WITNESS WHEREOF, the parties hereto have
executed this Non-Compete and Covenant Agreement as of the date first written
above.

 

 

	
   

  	
  /s/ Donald W. Wallace

  	
   

  
	
   

  	
  Donald
  W. Wallace

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LAZY
  DAYS’ RV CENTER, INC. a Florida corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles L. Thibault

  	
   

  
	
   

  	
   

  	
  Name: Charles L.
  Thibault

  	
   

  
	
   

  	
   

  	
  Title: Chief Financial
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RV
  ACQUISITION INC. a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  John Horton

  	
   

  
	
   

  	
   

  	
  Name: John Horton

  	
   

  
	
   

  	
   

  	
  Title: Chief Operating
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BRUCKMANN,
  ROSSER, SHERRILL & CO. II, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BRSE, L.L.C.

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tom Baldwin

  	
   

  
	
   

  	
   

  	
  Name: Tom Baldwin

  	
   

  
	
   

  	
   

  	
  Title: Managing
  Director

  	
   

  

 

 

[Signature
Page to the Non-Compete and Covenant Agreement]Exhibit 10.11

 

EXECUTION
COPY

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as
of May 14, 2004, is made by and among RV ACQUISITION INC., a Delaware
corporation (the “Company”), BRUCKMANN, ROSSER, SHERRILL & CO. II,
L.P., a Delaware limited partnership (“BRS”), each of the executives of
Lazy Days’ R.V. Center, Inc., a Florida corporation, as set forth on Schedule A
attached hereto or who executes a joinder to this Agreement in the form of Exhibit
1 attached hereto on or after the date hereof (each individually, an “Executive”,
and collectively, the “Executives”). 
Capitalized terms used herein but not otherwise defined herein shall
have the meaning set forth in Section 1 hereof.

 

WHEREAS, BRS each of the Executives hold shares of Common Stock.

 

NOW, THEREFORE, in consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties to this Agreement hereby agree as
follows:

 

1.                                      Definitions.  As used herein, the following terms shall
have the following meanings.

 

“Affiliate” means, when used with reference to a specified
Person, any Person that directly or indirectly controls or is controlled by or
is under common control with the specified Person.  As used in this definition, “control” (including, with its
correlative meanings, “controlled by” and “under common control with”) shall
mean possession, directly or indirectly, of power to direct or cause the
direction of management or policies (whether through ownership of securities or
partnership or other ownership interests, by contract or otherwise).

 

“BRS Registrable Securities” means (i) any shares of Common
Stock acquired by, or issued or issuable to, BRS or any of its respective
Affiliates or permitted transferees on or after the date hereof and (ii) all
equity securities issued or issuable directly or indirectly with respect to any
shares of Common Stock described in clause (i) above by way of a stock dividend
or stock split or in connection with a combination of shares, recapitalization,
merger, consolidation or other reorganization.

 

“Common Stock” means, collectively, (i) the Company’s common
stock, par value $0.01 per share, (ii) any other class of common stock of the
Company and (iii) any capital stock of the Company issued or issuable with
respect to the securities referred to in clauses (i) or (ii) above whether by
way of a stock dividend or stock split or in connection with a combination of
shares, recapitalization, merger, consolidation or other reorganization.

 

“Exchange Act” means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC promulgated thereunder.

 

“Executive Registrable Securities” means (i) any shares of Common
Stock acquired by, or issued or issuable to, any Executive or any of his or her
Affiliates or permitted transferees on or after the date hereof and (ii) all
equity securities issued or issuable directly or

 

 

indirectly with respect to any shares of Common Stock described in
clause (i) above by way of a stock dividend or stock split or in connection
with a combination of shares, recapitalization, merger, consolidation or other
reorganization.

 

“Holder” means, at any applicable time, a holder of Registrable
Securities.

 

“Initial Public Offering” means the initial, underwritten public
offering of the Company’s Common Stock registered under the Securities Act.

 

“NASD” means National Association of Securities Dealers, Inc.

 

“Person” means an individual, a partnership, a corporation, a
limited liability company, an association, a joint stock company, a trust, a
joint venture, an unincorporated organization, a bank, a trust company, a land
trust, a business trust, a governmental entity or any department, agency or
political subdivision thereof or any other entity or organization, whether or
not it is a legal entity.

 

“Registrable Securities” means collectively, the Executive
Registrable Securities and the BRS Registrable Securities.  As to any particular Registrable Securities,
such securities shall cease to be Registrable Securities when they have been
distributed to the public pursuant to an offering registered under the
Securities Act or sold to the public in compliance with Rule 144.  For purposes of this Agreement, a Person
will be deemed to be a holder of Registrable Securities whenever such Person
has the right to acquire directly or indirectly such Registrable Securities
(upon conversion or exercise in connection with a transfer of securities or
otherwise, but disregarding any restrictions or limitations upon the exercise
of such right), whether or not such acquisition has actually been effected.

 

“Registration Expenses” means all expenses incident to the
Company’s performance of or compliance with this Agreement, including without
limitation all registration and filing fees, fees and expenses of compliance
with securities or blue sky laws, printing and distributing expenses, messenger
and delivery expenses, fees and expenses of custodians, internal expenses
(including all salaries and expenses of its officers and employees performing
legal or accounting duties), the expenses and fees for listing the securities
to be registered on any securities exchange or the NASD automated quotation
system, and fees and disbursements of counsel for the Company and all
independent certified public accountants, underwriters (excluding discounts and
commissions) and other Persons retained by the Company.

 

“Rule 144” means Rule 144 under the Securities Act (or any
similar rule then in force).

 

“SEC” means the Securities and Exchange Commission.

 

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

 

“Subsidiary” means, with respect to any Person, any corporation,
partnership, limited liability company, association or other business entity of
which (i) if a corporation, a majority of the total voting power of shares of
stock entitled (without regard to the occurrence of any contingency) to vote in
the election of directors thereof is at the time owned or controlled,

 

2

 

directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof, or (ii) if a partnership,
limited liability company, association or other business entity, a majority of
the partnership or other similar ownership interest thereof is at the time
owned or controlled, directly or indirectly, by that Person or one or more
Subsidiaries of that Person or a combination thereof.  For purposes hereof, a Person or Persons shall be deemed to have
a majority ownership interest in a partnership, limited liability company,
association or other business entity if such Person or Persons shall be
allocated a majority of partnership, limited liability company, association or
other business entity gains or losses or shall be or control the managing
director, managing member, manager or a general partner of such partnership,
limited liability company, association or other business entity.

 

2.                                      Demand
Registrations.

 

(a)                                  Requests
for Registration.  At any time and
from time to time, the holder(s) of at least a majority of the BRS Registrable
Securities may request registration under the Securities Act of all or any
portion of their BRS Registrable Securities on Form S-1 or any similar
long-form registration (a “Long-Form Registration”), or on Form S-2 or
S-3 or any similar short-form registration (a “Short-Form Registration”),
if such a short form is available.  All
registrations requested pursuant to this Section 2(a) are referred
to herein as “Demand Registrations”. 
Each request for a Demand Registration (a “Demand Request”) shall
specify the approximate number of BRS Registrable Securities requested to be
registered, the anticipated method or methods of distribution, and the
anticipated per share price range for such offering.  Within ten days after receipt of any such Demand Request, the
Company will give written notice of such requested registration (which shall
specify the intended method of disposition of such Registrable Securities) to
all other Holders (a “Company Notice”) and the Company will include
(subject to the provisions of this Agreement) in such registration, all
Registrable Securities with respect to which the Company has received written
requests for inclusion therein within 20 days after the delivery of such
Company Notice; provided, that
any such other Holder may withdraw its request for inclusion at any time prior
to executing the underwriting agreement or, if none, prior to the applicable
registration statement becoming effective.

 

(b)                                 Long-Form
Registrations.  The holders of BRS
Registrable Securities will be entitled to  up
to four (4) Long-Form Registrations in the aggregate.  A registration will not count as a permitted Long-Form
Registration for purposes of the preceding sentence unless and until it has
become effective and no Long-Form Registration will count as a Long-Form
Registration for purposes of the preceding sentence unless the applicable
holders of BRS Registrable Securities sell at least 90% of the BRS Registrable
Securities requested to be included by them in such registration.

 

(c)                                  Short-Form
Registrations.  The holders of BRS
Registrable Securities will be entitled to unlimited Short-Form
Registrations.  Demand Registrations by
holders of BRS Registrable Securities will be Short-Form Registrations whenever
the Company is permitted to use any applicable short form.  After the Company has become subject to the
reporting requirements of the Exchange Act, the Company will use its best
efforts to make Short-Form Registrations on Form S-3 available for the sale of
Registrable Securities.

 

3

 

(d)                                 Priority
on Demand Registrations.  The
Company will not include in any Demand Registration any securities which are
not Registrable Securities unless the holder(s) of at least a majority of the
BRS Registrable Securities included in such Demand Registration otherwise
consent.  If a Demand Registration is an
underwritten offering and the managing underwriters advise the Company in
writing that in their opinion the number of Registrable Securities and, if
permitted hereunder, other securities, requested to be included in such
offering exceeds the number of Registrable Securities and other securities, if
any, which can be sold in an orderly manner in such offering within a price
range specified in the Demand Request pursuant to Section 2(a) and
without adversely affecting the marketability of the offering, then the Company
will include in such Demand Registration (A) first, the number of Registrable
Securities requested to be included in such Demand Registration, pro rata among the Holders of such
Registrable Securities based on the number of Registrable Securities requested
by each such Holder to be so included, and (B) second, any other securities of
the Company requested to be included in such registration, in such manner as
the Company may determine.

 

(e)                                  Restrictions
on Demand Registrations.  The
Company will not be obligated to file any registration statement with respect
to any Demand Registration within 180 days after the effective date of a
previous Demand Registration.

 

(f)                                    Selection
of Underwriters.  In the case of a
Demand Registration for an underwritten offering, the holders of a majority of
the BRS Registrable Securities to be included in such Demand Registration will
have the right to select the investment banker(s) and manager(s) to administer
the offering (which investment banker(s) and manager(s) will be nationally
recognized) subject to the Company’s approval, which approval will not be
unreasonably withheld.

 

(g)                                 Other
Registration Rights.  Except as
provided in this Agreement, after the date hereof, the Company will not grant
to any Persons the right to request the Company to register any equity or
similar securities of the Company, or any securities convertible or
exchangeable into or exercisable for such securities, without the prior written
consent of the holders of at least a majority of the BRS Registrable
Securities.

 

3.                                      Piggyback
Registrations.

 

(a)                                  Right
to Piggyback.  Whenever the Company
proposes to register any of its Common Stock under the Securities Act for its
own account or for the account of any holder of the Common Stock (other than
pursuant to a Demand Registration, and other than pursuant to a registration
statement on Form S-8 or S-4 or any successor form or form for similar
registration purposes or in connection with a registration the primary purpose
of which is to register debt securities, i.e.,
in connection with a so-called “equity kicker”) (a “Piggyback Registration”),
the Company will give prompt written notice to all Holders of its intention to
effect such a registration and of such Holders’ rights under this Section 3(a).  Upon the written request of any Holder, the
Company shall include in such registration (subject to the provisions of this
Agreement) all Registrable Securities requested to be registered pursuant to
this Section 3(a), subject to Section 3(b) or 3(c),  below, as applicable, with respect to which
the Company has received written requests for inclusion therein within 20 days
after the receipt of the Company’s notice; provided,
that any such other Holder may withdraw its request for inclusion at any time

 

4

 

prior to executing the underwriting agreement or, if none, prior to the
applicable registration statement becoming effective.  Notwithstanding the foregoing, no Registrable Securities shall be
included in the Initial Public Offering without the prior written consent of
the holders of a majority of the BRS Registrable Securities.  In the event the holders of a majority of
the BRS Registrable Securities consent to the inclusion of Registrable
Securities in the Initial Public Offering, then the Holders shall be entitled
to include securities in such registration as provided in this Section 3.

 

(b)                                 Priority
on Primary Registrations.  If a
Piggyback Registration is in part an underwritten primary registration on
behalf of the Company and the managing underwriters advise the Company in
writing that in their opinion the number of securities requested to be included
in such registration exceeds the number which can be sold in an orderly manner
in such offering within a price range acceptable to the Company and without adversely
affecting the marketability of the offering, then the Company will include in
such registration (i) first, the securities the Company proposes to sell, (ii)
second, the Registrable Securities requested to be included in such
registration, pro rata among the
Holders based on the number of Registrable Securities requested by each such
Holder to be so included, and (iii) third, any other securities requested to be
included in such registration, in such manner as the Company may determine.

 

(c)                                  Priority
on Secondary Registrations.  If a
Piggyback Registration is an underwritten secondary registration on behalf of
holders of the Company’s securities and the managing underwriters advise the
Company in writing that in their opinion the number of securities requested to
be included in such registration exceeds the number which can be sold in an
orderly manner in such offering within a price range acceptable to the holders
initially requesting such registration and without adversely affecting the
marketability of the offering, then the Company will include in such
registration (i) first, the securities requested to be included therein by the
holders of the Company’s securities requesting such registration (so long as
such holders’ registration rights were granted in accordance with Section 2(g)),
(ii) second, the Registrable Securities requested to be included in such
registration, pro rata among such
Holders based on the number of Registrable Securities requested by each such
Holder to be so included, and (iii) third, any other securities requested to be
included in such registration, in such manner as the Company may determine.

 

(d)                                 Selecting
Underwriters.  If any Piggyback
Registration is an underwritten offering, the investment banker(s) and
manager(s) to administer the offering (which investment banker(s) and
manager(s) will be nationally recognized) will be selected by the Company,
subject to the approval by a majority of the BRS Registrable Securities, which
approval will not be unreasonably withheld.

 

(e)                                  Other
Registrations.  If the Company has
previously filed a registration statement with respect to Registrable
Securities pursuant to this Section 3, and if such previous
registration has not been withdrawn or abandoned, then the Company will not
file or cause to be effected any other registration of any of its equity or
similar securities or securities convertible or exchangeable into or
exercisable for its equity or similar securities under the Securities Act
(except on Forms S-4 or S-8, or any successor form or form for similar
registration purposes, or in connection with a Demand Registration or in
connection with a registration the primary purpose of which is to register debt
securities, i.e., in connection
with a so-called “equity

 

5

 

kicker”), whether on its own behalf or at the request of any holder or
holders of such securities, until a period of at least 180 days has elapsed
from the effective date of such previous registration.

 

4.                                      Holdback
Agreements.

 

(a)                                  Each
Holder hereby agrees not to effect any sale or distribution of equity
securities of the Company, or any securities convertible into or exchangeable
or exercisable for such securities, during the seven days prior to and the
180-day period beginning on the effective date of any underwritten Demand
Registration or any underwritten Piggyback Registration (except as part of such
underwritten registration), unless the underwriters managing such underwritten
registration otherwise agree.

 

(b)                                 The
Company (i) will not effect any sale or distribution of its equity securities,
or any securities convertible into or exchangeable or exercisable for such
securities, during the seven days prior to and during the 180-day period
beginning on the effective date of any underwritten Demand Registration or any
underwritten Piggyback Registration (except as part of such underwritten
registration or pursuant to registrations on Forms S-4 or S-8 or any successor
form or form for similar registration purposes), unless the underwriters
managing such underwritten registration otherwise agree, and (ii) will use its
reasonable best efforts to cause each holder of the Common Stock or any
securities convertible into or exchangeable or exercisable for the Common
Stock, purchased from the Company at any time after the date of this Agreement
(other than in a registered public offering) to agree not to effect any sale or
distribution of any such securities during such period (except as part of such
underwritten registration, if otherwise permitted), unless the underwriters
managing such underwritten registration otherwise agree.

 

5.                                      Registration
Procedures.  Whenever the
Holders have requested that any Registrable Securities be registered pursuant
to this Agreement, the Company will use its best efforts to effect the
registration and the sale of such Registrable Securities in accordance with the
intended method of disposition thereof, and pursuant thereto the Company will
as expeditiously as possible:

 

(a)                                  prepare
and file with the SEC a registration statement with respect to such Registrable
Securities and use its best efforts to cause such registration statement to
become effective (provided that before filing a registration statement or
prospectus or any amendments or supplements thereto, the Company will furnish
to the counsel selected pursuant to Section 6 below copies of all
such documents proposed to be filed, which documents will be subject to the
prompt review and reasonable comment of such counsel), and upon filing such
documents, the Company shall promptly notify in writing such counsel of the
receipt by the Company of any written comments by the SEC with respect to such
registration statement or prospectus or any amendment or supplement thereto or
any written request by the SEC for the amending or supplementing thereof or for
additional information with respect thereto;

 

(b)                                 prepare
and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary
to keep such registration statement effective for a period of not less than 180
days and comply with

 

6

 

the provisions of the Securities Act with respect to the disposition of
all Registrable Securities covered by such registration statement during such
period in accordance with the intended methods of disposition by the sellers
thereof set forth in such registration statement and cause the prospectus to be
supplemented by any required prospectus supplement, and as so supplemented to
be filed pursuant to Rule 424 under the Securities Act;

 

(c)                                  furnish
to each seller of Registrable Securities such number of copies of such
registration statement, each amendment and supplement thereto, the prospectus
included in such registration statement (including each preliminary prospectus)
and such other documents as such seller may reasonably request in order to
facilitate the disposition of the Registrable Securities owned by such seller;

 

(d)                                 use
its best efforts to register or qualify such Registrable Securities under such
other securities or blue sky laws of such jurisdictions as any seller of
Registrable Securities reasonably requests and do any and all other acts and
things which may be reasonably necessary or advisable to enable such seller to
consummate the disposition in such jurisdictions of the Registrable Securities
owned by such seller (provided that the Company will not be required to (i)
qualify generally to do business in any jurisdiction where it would not
otherwise be required to qualify but for this subsection, (ii) subject itself
to taxation in any such jurisdiction in any jurisdiction where it is not so
subject, or (iii) consent to general service of process (i.e., service of process which is not limited
solely to securities law violations) in any such jurisdiction where it is not
so subject);

 

(e)                                  promptly
notify each seller of such Registrable Securities, at any time when a
prospectus relating thereto is required to be delivered under the Securities
Act, upon discovery that, or upon the discovery of the happening of any event
as a result of which the prospectus included in such registration statement
contains an untrue statement of a material fact or omits any fact necessary to
make the statements therein not misleading in light of the circumstances under
which they were made, and, at the request of any such seller, the Company will,
as soon as reasonably practicable, file and furnish to all sellers a supplement
or amendment to such prospectus so that, as thereafter delivered to the
purchasers of such Registrable Securities, such prospectus will not contain an
untrue statement of a material fact or omit to state any fact necessary to make
the statements therein not misleading in light of the circumstances under which
they were made;

 

(f)                                    if
requested by the holders of a majority of the BRS Registrable Securities in
connection with any Demand Registration, use its commercially reasonable
efforts to cause to be included in such registration Common Stock having an
aggregate value (based on midpoint of the proposed offering price range
specified in the registration statement used to offer such securities) of up to
$10 million, to be offered in a primary offering of the Company’s securities
contemporaneously with such offering of Registrable Securities;

 

(g)                                 cause
all such Registrable Securities to be listed on each securities exchange on
which similar securities issued by the Company are then listed and, if not so
listed, to be listed on the Nasdaq National Market System (“Nasdaq Market”)
and, if listed on the Nasdaq Market, use its best efforts to secure designation
of all such Registrable Securities covered by such registration statement as a
Nasdaq “National Market System security” within

 

7

 

the meaning of Rule 11Aa2-1 under the Exchange Act or, failing that, to
secure Nasdaq Market authorization for such Registrable Securities and, without
limiting the generality of the foregoing, to arrange for at least two market
makers to register as such with respect to such Registrable Securities with the
NASD;

 

(h)                                 provide
a transfer agent and registrar for all such Registrable Securities not later
than the effective date of such registration statement;

 

(i)                                     enter
into such customary agreements (including underwriting agreements in customary
form) and take all such other actions as the holders of a majority of the
Registrable Securities being sold or the underwriters, if any, reasonably
request in order to expedite or facilitate the disposition of such Registrable
Securities (including, without limitation, effecting a split or a combination
of stock or units); provided,
that no Holder shall have any indemnification or contribution obligations
inconsistent with Section 7 hereof;

 

(j)                                     make
available for inspection by any seller of Registrable Securities, any
underwriter participating in any disposition pursuant to such registration
statement and any attorney, accountant or other agent retained by any such
seller or underwriter, all financial and other records, pertinent corporate
documents and properties of the Company, and cause the Company’s officers,
directors, employees and independent accountants to supply all information and
participate in due diligence sessions reasonably requested by any such seller,
underwriter, attorney, accountant or agent in connection with such registration
statement;

 

(k)                                  otherwise
use its best efforts to comply with all applicable rules and regulations of the
SEC, and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering the period of at least twelve
months beginning with the first day of the Company’s first full calendar
quarter after the effective date of the registration statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities
Act and Rule 158 promulgated thereunder;

 

(l)                                     use
best efforts to prevent the issuance of any stop order suspending the
effectiveness of a registration statement, or of any order suspending or
preventing the use of any related prospectus or suspending the qualification of
any securities included in such registration statement for sale in any
jurisdiction, and, in the event of such issuance, the Company shall immediately
notify the Holders included in such registration statement of the receipt by
the Company of such notification and shall use its best efforts promptly to
obtain the withdrawal of such order;

 

(m)                               use
its best efforts to cause such Registrable Securities covered by such
registration statement to be registered with or approved by such other
governmental agencies or authorities as may be necessary to enable the sellers
thereof to consummate the disposition of such Registrable Securities, and
cooperate and assist with any filings to be made with the NASD;

 

(n)                                 obtain
one or more “cold comfort” letters, dated the effective date of such
registration statement (and, if such registration includes an underwritten
public offering, dated the date of the closing under the underwriting
agreement), signed by the Company’s independent public accountants in customary
form and covering such matters of the type customarily covered

 

8

 

by “cold comfort” letters as the holders of a majority of the
Registrable Securities being sold reasonably request; and

 

(o)                                 provide
a legal opinion of the Company’s outside counsel, dated the effective date of
such registration statement (and, if such registration includes an underwritten
public offering, dated the date of the closing under the underwriting
agreement), with respect to the registration statement, each amendment and
supplement thereto, the prospectus included therein (including the preliminary
prospectus) and such other documents relating thereto in customary form and
covering such matters of the type customarily covered by legal opinions of such
nature.

 

If any such registration or comparable statement refers to any Holder
by name or otherwise as the holder of any securities of the Company and if in
such Holder’s sole and exclusive judgment, such Holder is or might be deemed to
be an underwriter or a controlling person of the Company, such Holder shall
have the right to require (i) the insertion therein of language, in form and
substance satisfactory to such Holder and presented to the Company in writing,
to the effect that the holding by such Holder of such securities is not to be
construed as a recommendation by such Holder of the investment quality of the
Company’s securities covered thereby and that such holding does not imply that
such Holder will assist in meeting any future financial requirements of the
Company, or (ii) in the event that such reference to such Holder by name or
otherwise is not required by the Securities Act or any similar Federal statute
then in force, the deletion of the reference to such Holder; provided, that with respect to this clause
(ii), if requested by the Company, such Holder shall furnish to the Company an
opinion of counsel to such effect, which opinion and counsel shall be
reasonably satisfactory to the Company.

 

6.                                      Registration
Expenses.  The Company will bear
all Registration Expenses whether or not the Demand Registration or Piggyback
Registration pursuant to which such Registration Expenses are incurred have
become effective.  In addition, in
connection with each Demand Registration, the Company will reimburse the
Holders included in such registration for the reasonable fees and disbursements
of one counsel chosen by the holders of a majority of the Registrable
Securities requesting inclusion in such registration (which counsel shall be
retained to represent all such Holders).

 

7.                                      Indemnification.

 

(a)                                  By
the Company.  The Company agrees to,
and will cause each of its Subsidiaries to agree to, indemnify, to the fullest
extent permitted by law, each Holder, its officers, directors, members,
employees, agents, stockholders and general and limited partners and each
Person who controls (within the meaning of the Securities Act and Exchange Act)
such Holder against any and all losses, claims, damages, liabilities and
expenses (or actions or proceedings, whether commenced or threatened, in
respect thereof), joint or several, arising out of or based upon any untrue or
alleged untrue statement of material fact contained in any registration
statement, reports required and other documents filed under the Securities Act,
Exchange Act, prospectus or preliminary prospectus or any amendment thereof or
supplement thereto, together with any documents incorporated therein by reference,
or any omission or alleged omission of a material fact required to be stated
therein or necessary to make the statements therein not misleading, or any
violation or alleged violation by the Company or any of

 

9

 

its
Subsidiaries of any federal, state, foreign or common law rule or regulation
and relating to action or inaction in connection with any such registration,
disclosure document or other document and shall reimburse such Holder, officer,
director, member, employee, agent, stockholder, partner or controlling Person
for any legal or other expenses, including any amounts paid in any settlement
effected with the consent of the Company, which consent will not be
unreasonably withheld or delayed, incurred by such Holder, officer, director,
member, employee, agent, stockholder, partner or controlling Person in
connection with the investigation or defense of such loss, claim, damage,
liability or expense, except insofar as the same are caused by or contained in
any information furnished in writing to the Company by such Holder expressly
for use therein.  In connection with an
underwritten offering, the Company will indemnify such underwriters, their
officers, directors, agents and employees and each Person who controls such
underwriters (within the meaning of the Securities Act) to the same extent as
provided above with respect to the indemnification of the Holders.

 

(b)                                 By
the Holders.  In connection with any
registration statement in which a Holder is participating, each such Holder
will furnish to the Company in writing such information and affidavits about
such Holder as the Company reasonably requests for use in connection with any
such registration statement or prospectus and, to the extent permitted by law,
will indemnify the Company, its directors and officers and each Person who
controls (within the meaning of the Securities Act) the Company and the other
Holders against any losses, claims, damages, liabilities and expenses resulting
from any untrue or alleged untrue statement of material fact contained in the
registration statement, prospectus or preliminary prospectus or any amendment
thereof or supplement thereto or any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein
not misleading, but only to the extent that such untrue statement or omission
is contained in any information or affidavit so furnished in writing by such
Holder which authorizes its use in the applicable document; provided, that the obligation to indemnify
will be individual, not joint and several, for each Holder and will be limited
to the net amount of cash proceeds received by such Holder from the sale of
Registrable Securities pursuant to such registration statement.

 

(c)                                  Claim
Procedures.  Any Person entitled to
indemnification hereunder will (i) give prompt written notice to the
indemnifying party of any claim with respect to which it seeks indemnification
(provided that the failure to give prompt notice will not impair any Person’s
right to indemnification hereunder to the extent such failure has not
prejudiced the indemnifying party) and (ii) unless in such indemnified party’s
reasonable judgment a conflict of interest between such indemnified and indemnifying
parties may exist with respect to such claim, permit the indemnifying party to
assume the defense thereof, jointly with any other indemnifying party similarly
notified to the extent it may wish, with counsel reasonably satisfactory to the
indemnified party.  If such defense is
assumed, the indemnifying party will not be subject to any liability for any
settlement made by the indemnified party without its consent (but such consent
will not be unreasonably withheld or delayed) and the indemnifying party shall
not, without the consent of the indemnified party, consent to entry of any
judgment or enter into any settlement which does not include as an
unconditional term thereof, a release from all liability in respect of such
claim or litigation provided by the claimant or plaintiff to such indemnified
party.  An indemnifying party who is not
entitled to, or elects not to, assume the defense of a claim will not be
obligated to pay (x) the fees and expenses of more than one counsel for all
parties indemnified by such indemnifying party with respect to such claim,
unless in the reasonable judgment of any

 

10

 

indemnified party a conflict of interest may exist between such
indemnified party and any other of such indemnified parties with respect to
such claim or (y) any settlement made by any indemnified party without such
indemnifying party’s consent (but such consent will not be unreasonably
withheld).

 

(d)                                 Survival;
Contribution.  The indemnification
provided for under this Agreement will remain in full force and effect
regardless of any investigation made by or on behalf of the indemnified party
or any officer, agent or employee and each other Person who participates as an
underwriter in the offering or sale of such securities and each other Person,
if any, who controls (within the meaning of the Securities Act) such
indemnified party, and will survive the transfer of securities.  The Company also agrees to make such provisions,
as are reasonably requested by any indemnified party, for contribution to such
party in the event the Company’s indemnification is unavailable for any reason.

 

8.                                      Participation
in Underwritten Registrations. 
No Person may participate in any registration hereunder which is
underwritten unless such Person (a) agrees to sell such Person’s securities on
the basis provided in any underwriting arrangements approved by the Person or
Persons entitled hereunder to approve such arrangements (including, without
limitation, pursuant to the terms of any over-allotment or “green shoe” option
requested by the managing underwriter(s), so long as no Holder will be required
to sell more than the number of Registrable Securities that such Holder has
requested the Company to include in any registration) and (b) completes and
executes all customary questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents required under the terms of such
underwriting arrangements; provided,
that no Holder included in any underwritten registration shall be required to
make any representations or warranties to the Company or the underwriters
(other than representations and warranties regarding such Holder and such
Holder’s intended method of distribution) or to undertake any indemnification
or contribution obligations to the Company or the underwriters with respect
thereto, except as otherwise provided in Section 7.

 

9.                                      Rule
144 Reporting.  With a view to
making available to the Holders the benefits of certain rules and regulations
of the SEC which may permit the sale of the Registrable Securities to the
public without registration, the Company agrees at its expense to use its best
efforts to:

 

(a)                                  make
and keep current public information available, within the meaning of Rule 144
or any similar or analogous rule promulgated under the Securities Act, at all
times after it has become subject to the reporting requirements of the Exchange
Act;

 

(b)                                 file
with the SEC, in a timely manner, all reports and other documents required of
the Company under the Securities Act and Exchange Act (after it has become
subject to such reporting requirements); and

 

(c)                                  so
long as any party hereto owns any Registrable Securities, furnish to such
Person forthwith upon request, a written statement by the Company as to its compliance
with the reporting requirements of said Rule 144 (at any time commencing 90
days after the effective date of the first registration filed by the Company
for an offering of its securities to the general public), the Securities Act
and the Exchange Act

 

11

 

(at any time after it has become subject to such reporting
requirements); a copy of the most recent annual or quarterly report of the
Company; and such other reports and documents as such Person may reasonably
request in availing itself of any rule or regulation of the SEC allowing it to
sell any such securities without registration.

 

10.                               Amendment
and Waiver.  No modification,
amendment or waiver of any provision of this Agreement shall be effective against
the Company or the Holders unless such modification, amendment or waiver is
approved in writing by the Company and the holders of a majority of the
Registrable Securities; provided, that any such modification, amendment or
waiver which adversely affects any Holder and is prejudicial to such Holder
relative to all of the other Holders shall not be effected without the consent
of such Holder.  The failure of any
party to enforce any of the provisions of this Agreement shall in no way be
construed as a waiver of such provisions and shall not affect the right of such
party thereafter to enforce each and every provision of this Agreement in
accordance with its terms.

 

11.                               Severability;
Entire Agreement.  Whenever
possible, each provision of this Agreement shall be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of this
Agreement is held to be invalid, illegal or unenforceable in any respect under
any applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other provision or any other
jurisdiction, but this Agreement shall be reformed, construed and enforced in
such jurisdiction as if such invalid, illegal or unenforceable provision had
never been contained herein.  Except as
otherwise expressly set forth herein, this document embodies the complete
agreement and understanding among the parties hereto with respect to the
subject matter hereof and supersedes and preempts any prior understandings,
agreements or representations by or among the parties, written or oral, which
may have related to the subject matter hereof in any way.

 

12.                               Successors
and Assigns.  Except as
otherwise provided herein, this Agreement shall bind and inure to the benefit
of and be enforceable by the Company and its successors and assigns and the
Holders and any subsequent holders of Registrable Securities and the respective
successors and assigns of each of them, so long as they hold Registrable
Securities (and hold or have received Registrable Securities in accordance with
the terms hereof).

 

13.                               Counterparts.  This Agreement may be executed in separate
counterparts each of which shall be an original and all of which taken together
shall constitute one and the same agreement.

 

14.                               Remedies.  The parties hereto shall be entitled to
enforce their rights under this Agreement specifically to recover damages
caused by any breach of any provision of this Agreement and to exercise all
other rights existing in their favor. 
The parties hereto agree and acknowledge that money damages may not be
an adequate remedy for any breach of the provisions of this Agreement and that
the Company or any Holder may in its sole discretion apply to any court of law
or equity of competent jurisdiction for specific performance and/or injunctive
relief (without posting a bond or other security) in order to enforce or
prevent any violation of the provisions of this Agreement.

 

12

 

15.                               Notices.  All notices, demands or other communications
to be given or delivered under or by reason of the provisions of this Agreement
will be in writing and will only be deemed to have been given when delivered
personally, sent via a nationally recognized overnight courier, or sent via
facsimile to the recipient.  Such
notices, demands and other communications will be sent to the address indicated
below:

 

	
  To
  the Company:

  
	
   

  	
   

  
	
   

  	
  RV
  Acquisition Inc.

  
	
   

  	
  c/o
  Bruckmann, Rosser, Sherrill & Co., Inc.

  
	
   

  	
  126
  East 56th Street

  
	
   

  	
  New
  York, NY 10022

  
	
   

  	
  Attention:

  	
  Thomas
  J. Baldwin

  
	
   

  	
  Facsimile:

  	
  (212)
  521-3703

  
	
   

  	
  Email:

  	
  baldwin@brs.com

  
	
   

  	
   

  
	
  with
  a copy (which shall not constitute notice to the Company) to:

  
	
   

  	
   

  
	
   

  	
  Kirkland
  & Ellis LLP

  
	
   

  	
  Citigroup
  Center

  
	
   

  	
  153
  East 53rd Street

  
	
   

  	
  New
  York, NY 10022

  
	
   

  	
  Attention:

  	
  Kimberly
  P. Taylor

  
	
   

  	
  Facsimile:

  	
  (212)
  446-4900

  
	
   

  	
  Email:

  	
  ktaylor@kirkland.com

  
	
   

  	
   

  
	
  To
  BRS:

  
	
   

  	
   

  
	
   

  	
  Bruckmann,
  Rosser, Sherrill & Co. II, L.P.

  
	
   

  	
  c/o
  Bruckmann, Rosser, Sherrill & Co., Inc.

  
	
   

  	
  126
  East 56th Street

  
	
   

  	
  New
  York, NY 10022

  
	
   

  	
  Attention:

  	
  Thomas
  J. Baldwin

  
	
   

  	
  Facsimile:

  	
  (212)
  521-3703

  
	
   

  	
  Email:

  	
  baldwin@brs.com

  
	
   

  	
   

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

  
	
   

  	
   

  
	
   

  	
  Kirkland
  & Ellis LLP

  
	
   

  	
  Citigroup
  Center

  
	
   

  	
  153
  East 53rd Street

  
	
   

  	
  New
  York, NY 10022

  
	
   

  	
  Attention:

  	
  Kimberly
  P. Taylor

  
	
   

  	
  Facsimile:

  	
  (212)
  446-4900

  
	
   

  	
  Email:

  	
  ktaylor@kirkland.com

  
	
   

  	
   

  
	
  To
  any Executive:

  
	
   

  	
   

  
	
   

  	
  To
  Executive’s address indicated on Schedule A hereto

  

 

13

 

or such other address or to the attention of such other Person as the
recipient party shall have specified by prior written notice to the sending
party.

 

16.                               Governing
Law.  All issues and questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, without giving
effect to any choice of law or conflict of law provision or rule (whether of
the State of Delaware or any other jurisdiction) that would cause the
application of the law of any jurisdiction other than the State of Delaware.

 

17.                               Descriptive
Headings.  The descriptive
headings of this Agreement are inserted for convenience only and do not
constitute a part of this Agreement.

 

18.                               Time
of the Essence; Computation of Time. 
Time is of the essence for each and every provision of this
Agreement.  Whenever the last day for
the exercise of any privilege or the discharge or any duty hereunder shall fall
upon a Saturday, Sunday, or any date on which banks in New York City, New York
are authorized to be closed, the party having such privilege or duty may
exercise such privilege or discharge such duty on the next succeeding day which
is a regular business day.

 

19.                               Waiver
of Jury Trial.  Each of the parties hereto waives any right it may
have to trial by jury in respect of any litigation based on, arising out of,
under or in connection with the Agreement or any course of conduct, course of
dealing, verbal or written statement or action of any party hereto.

 

20.                               Jurisdiction.  Each of the parties hereto submits to the
jurisdiction of any state or federal court sitting in New York, New York, in
any action or proceeding arising out of or relating to this Agreement and
agrees that all claims in respect of the action or proceeding may be heard and
determined in any such court and hereby expressly submits to the personal
jurisdiction and venue of such court for the purposes hereof and expressly
waives any claim of improper venue and any claim that such courts are an
inconvenient forum.  Each of the parties
hereby irrevocably consent to the service of process of any of the
aforementioned courts in any such suit, action or proceeding by the mailing of
copies thereof by registered or certified mail, postage prepaid, to its address
set forth in Section 15, such service to become effective 10 days after
such mailing.

 

21.                               No
Strict Construction.  The
parties hereto have participated jointly in the negotiation and drafting of
this Agreement.  In the event an
ambiguity or question of intent or interpretation arises, this Agreement shall
be construed as if drafted jointly by the parties hereto, and no presumption or
burden of proof shall arise favoring or disfavoring any party hereto by virtue
of the authorship of any of the provisions of this Agreement.

 

22.                               No
Third-Party Beneficiaries.  This
Agreement is for the sole benefit of the parties hereto and their permitted
successors and assigns and nothing herein expressed or implied shall give or be
construed to give any Person, other than the parties hereto and such permitted
successors and assigns, any legal or equitable rights hereunder.

 

*    
*     *     *     *

 

14

 

IN WITNESS WHEREOF,
the parties hereto have executed this Registration Rights Agreement as of the
date first above written.

 

	
   

  	
  RV ACQUISITION INC. a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles L. Thibault

  
	
   

  	
   

  	
  Name: Charles L. Thibault

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BRUCKMANN, ROSSER, SHERRILL & CO. II, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BRSE, LLC

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tom Baldwin

  
	
   

  	
   

  	
  Name: Tom Baldwin

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVES:

  
	
   

  	
   

  
	
   

  	
  /s/ Donald W.
  Wallace

  
	
   

  	
  DONALD W. WALLACE

  

 

 

SCHEDULE A

LIST OF EXECUTIVES AND ADDRESSES

 

1.                                       Donald W.
Wallace

c/o Lazy Days’ R.V. Center, Inc.

6130 Lazy Days Boulevard

Seffner, Florida 33584

Facsimile: (813) 246-5240

 

A1

 

EXHIBIT
1

 

FORM OF JOINDER TO

REGISTRATION RIGHTS AGREEMENT

 

This JOINDER (the “Joinder”) to the Registration Rights
Agreement (the “Agreement”), dated as of May
      , 2004 by and among RV Acquisition Inc., a
Delaware corporation (the “Company”) and certain stockholders of the
Company, is made and entered into as of
                          
by and between the Company and
                            
(“New Holder”).  Capitalized
terms used but not otherwise defined herein shall have the meanings set forth
in the Agreement.

 

WHEREAS, New Holder has acquired certain shares, or options or warrants
to acquire certain shares, of capital stock of the Company (“Holder Stock”),
and the Agreement and the Company requires New Holder, as a holder of such
capital stock, to become a party to the Agreement, and New Holder agrees to do
so in accordance with the terms hereof.

 

NOW, THEREFORE, in consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties to this Joinder hereby agree as
follows:

 

1.  Agreement to be Bound.  New Holder hereby agrees that upon execution
of this Joinder, it shall become a party to the Agreement and shall be fully
bound by, and subject to, all of the covenants, terms and conditions of the
Agreement as though an original party thereto and shall be deemed a Holder for
all purposes thereof.  In addition, New
Holder hereby agrees that all Holder Stock shall be deemed [BRS Registrable Securities/Executive Registrable
Securities] for all purposes of the Agreement.

 

2.  Successors and Assigns.  Except as otherwise provided herein, this Joinder
shall bind and inure to the benefit of and be enforceable by the Company and
its successors and assigns and New Holder and any subsequent holders of Holder
Stock and the respective successors and assigns of each of them, so long as
they hold any shares of Holder Stock.

 

3.  Counterparts.  This Joinder may be executed in separate
counterparts each of which shall be an original and all of which taken together
shall constitute one and the same agreement.

 

4.  Notices.  For purposes of Section 15 of
the Agreement, all notices, demands or other communications to the New Holder
shall be directed to:

 

[Name]

[Address]

[Facsimile Number]

 

5.  Governing
Law.  All issues and questions
concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware, without giving effect to any choice of law or conflict of
law provision or rule (whether of the State of Delaware or any

 

 

other jurisdiction) that would cause the
application of the law of any jurisdiction other than the State of Delaware.

 

6.  Descriptive Headings.  The descriptive headings of this Joinder are
inserted for convenience only and do not constitute a part of this Joinder.

 

7.  Waiver
of Jury Trial.  Each of the parties
hereto waives any right it may have to trial by jury in respect of any
litigation based on, arising out of, under or in connection with the Agreement
or any course of conduct, course of dealing, verbal or written statement or action
of any party hereto.

 

8.  Jurisdiction.  Each of the parties hereto submits to the
jurisdiction of any state or federal court sitting in New York, New York, in
any action or proceeding arising out of or relating to this Agreement and
agrees that all claims in respect of the action or proceedings may be heard and
determined in any such court and hereby expressly submits to the personal
jurisdiction and venue of such court for the purposes hereof and expressly
waives any claim of improper venue and any claim that such courts are an
inconvenient forum.  Each of the parties
hereby irrevocably consent to the service of process of any of the
aforementioned courts in any such suit, action or proceeding by the mailing of
copies thereof by registered or certified mail, postage prepaid, to its address
set forth in Section 4 of this Joinder, such service to become
effective 10 days after such mailing.

 

* * * * *

 

 

IN WITNESS WHEREOF,
the parties hereto have executed this Joinder as of the date first above written.

 

	
   

  	
  RV ACQUISITION INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [HOLDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

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