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Exhibit 4.10  

 
 

REGISTRATION RIGHTS AGREEMENT    
    

Dated as of December 17, 2003  

 among  

 MAGNUM HUNTER RESOURCES, INC.,  

 THE GUARANTORS NAMED HEREIN  

 and  

 DEUTSCHE BANK, SECURITIES INC.

and

BANC OF AMERICA SECURITIES LLC,

as Representatives of the Initial Purchasers  

 Floating Rate Convertible Senior Notes Due 2023  

   TABLE OF CONTENTS  

	1.	 	Definitions	 	1
	

2.	
 	

Shelf Registration	
 	

3
	

3.	
 	

Liquidated Damages	
 	

5
	

4.	
 	

Registration Procedures	
 	

6
	

4A.	
 	

Holders' Obligations	
 	

10
	

5.	
 	

Registration Expenses	
 	

10
	

6.	
 	

Indemnification	
 	

11
	

7.	
 	

Rules 144 and 144A	
 	

14
	

8.	
 	

Underwritten Registrations	
 	

15
	

9.	
 	

Miscellaneous	
 	

15

i

REGISTRATION RIGHTS AGREEMENT  

        This Registration Rights Agreement (this "Agreement") is dated as of December 17, 2003, among MAGNUM HUNTER
RESOURCES, INC., a Nevada corporation (the "Company"), the GUARANTORS listed on the signature pages hereof (subject to Section 9(m), the
"Guarantors") and DEUTSCHE BANK SECURITIES INC. and BANC OF AMERICA SECURITIES LLC, as representatives of the Initial Purchasers (collectively,
the "Initial Purchasers") under the Purchase Agreement (as defined below). 

        This
Agreement is entered into in connection with that certain Purchase Agreement, dated December 11, 2003 (the "Purchase
Agreement"), among the Company, the Guarantors and Deutsche Bank Securities Inc. and Banc of America Securities LLC, as representatives of the Initial Purchasers, which
provides for the sale by the Company to the Initial Purchasers of $100,000,000 aggregate principal amount of the Company's Floating Rate Convertible Senior Notes Due 2023 (the
"Firm Notes"), guaranteed by the Guarantors, plus up to an additional $25,000,000 aggregate principal amount of the same which Deutsche Bank
Securities Inc. may subsequently elect to purchase pursuant to the terms of the Purchase Agreement (the "Option Notes", and together with the
Firm Notes, the "Notes"), which are convertible into common stock, par value $.002 per share, of the Company (the "Underlying
Shares"), together with the rights evidenced by such Common Stock to the extent provided for in the Rights Agreement dated as of January 6, 1998 between the Company and
Securities Transfer Corporation, as Rights Agent. The Notes are being issued pursuant to an Indenture dated as of the date hereof (the "Indenture"),
among the Company, the Guarantors and Deutsche Bank Trust Company Americas, as Trustee. 

        In
order to induce the Initial Purchasers to enter into the Purchase Agreement, the Company has agreed to provide the registration rights set forth in this Agreement for the benefit of
the Initial Purchasers and subsequent holders of the Notes or Underlying Shares as provided herein. The execution and delivery of this Agreement is a condition to the Initial Purchasers' obligation to
purchase the Firm Notes under the Purchase Agreement. 

        The
parties hereto hereby agree as follows: 

        1.     Definitions.
As used in this Agreement, the following terms shall have the following meanings: 

        "Agreement": See the first introductory paragraph hereto. 

        "Amendment Effectiveness Deadline Date": See Section 2(d)(i) hereof. 

        "Amount": (a) With respect to Notes, the aggregate principal amount of such Notes, (b) with respect to Underlying Shares
constituting Registrable Securities, the aggregate number of such Underlying Shares outstanding multiplied by the Conversion Price (as defined in the Indenture) in effect at the time of computing the
Amount of Underlying Shares or, if no Notes are then outstanding, the Conversion Price shall be calculated as if the Notes were continuously outstanding to the date of calculation, giving effect to
any adjustments to the Conversion Price set forth in the Indenture as if the Indenture continued to be in effect, and (c) with respect to combinations thereof, the sum of (a) and
(b) for the relevant Securities. 

        "Application": See Section 6 hereof. 

        "Business Day": Any day that is not a Saturday, Sunday or a day on which banking institutions in New York are authorized or required by
law to be closed. 

        "Closing Date": December 17, 2003. 

        "Company": See the first introductory paragraph hereto. 

        "Damages Payment Date": See Section 3(c) hereof. 

        "Deferral Period": See Section 3(b) hereof. 

        "Depositary": The Depository Trust Company, until a successor is appointed by the Company. 

 

        "Designated Counsel": One firm of counsel chosen by the Holders of a majority in Amount of Registrable Securities to be included in a
Registration Statement for a Shelf Registration and identified to the Company in writing prior to the filing of such Registration Statement. 

        "Effectiveness Date": The 210th day after the Closing Date. 

        "Effectiveness Period": See Section 2(a) hereof. 

        "Exchange Act": The Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder. 

        "Filing Date": The 120th day after the Closing Date. 

        "Firm Notes": See the second introductory paragraph hereto. 

        "Guarantors": See the first introductory paragraph hereto. 

        "Holder": Any holder of Securities or, as the context requires, of Registrable Securities. 

        "Indenture": See the second introductory paragraph hereto. 

        "Initial Purchasers": See the first introductory paragraph hereto. 

        "Initial Shelf Registration": See Section 2(a) hereof. 

        "Inspectors": See Section 4(k) hereof. 

        "Liquidated Damages": See Section 3(a) hereof. 

        "Notes": See the second introductory paragraph hereto. 

        "Notice and Questionnaire": means a written notice delivered to the Company containing substantially the information called for by the
Form of Selling Securityholder Notice and Questionnaire attached as Appendix A to the Offering Memorandum of the Company relating to the Notes. 

        "Option Notes": See the second introductory paragraph hereto. 

        "Person": An individual, partnership, corporation, limited liability company, unincorporated association, trust or joint venture, or a
governmental agency or political subdivision thereof. 

        "Prospectus": The prospectus included in any Registration Statement (including, without limitation, any prospectus subject to completion
and a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material
incorporated by reference or deemed to be incorporated by reference in such Prospectus. 

        "Purchase Agreement": See the second introductory paragraph hereto. 

        "Records": See Section 4(k) hereof. 

        "Registrable Securities": All Underlying Shares issued or issuable upon conversion of the Notes;  provided that an Underlying Share shall cease being a Registrable
Security when (i) a Registration Statement covering the Underlying Share has
been declared effective by the SEC and the Underlying Share has been disposed of in accordance with such effective Registration Statement, (ii) the Underlying Share has been sold to the public
in accordance with Rule 144 under the Securities Act (or any similar provision then in effect other than Rule 144A under the Securities Act) or (iii) the Underlying Share may be
transferred by the Holder thereof under Rule 144(k) under the Securities Act. 

2

 

        "Registration Default": See Section 3(a) hereof. 

        "Registration Statement": Any registration statement of the Company filed with the SEC pursuant to the provisions of this Agreement,
including the Prospectus, amendments and supplements to such registration statement, including post-effective amendments, all exhibits and all documents incorporated by reference or deemed
to be incorporated by reference in such registration statement. 

        "Rule 144": Rule 144 promulgated under the Securities Act, as such Rule may be amended from time to time, or any
similar rule (other than Rule 144A) or regulation hereafter adopted by the SEC providing for offers and sales of securities made in compliance therewith resulting in offers and sales by
subsequent holders that are not affiliates of an issuer of such securities being free of the registration and prospectus delivery requirements of the Securities Act. 

        "Rule 144A": Rule 144A promulgated under the Securities Act, as such Rule may be amended from time to time, or any
similar rule (other than Rule 144) or regulation hereafter adopted by the SEC. 

        "Rule 415": Rule 415 promulgated under the Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the SEC. 

        "SEC": The Securities and Exchange Commission. 

        "Securities": The Notes and the Underlying Shares. 

        "Securities Act": The Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder. 

        "Selling Holder": On any date, any Holder that has delivered a Notice and Questionnaire to the Company on or prior to such date. 

        "Shelf Registration": See Section 2(b) hereof. 

        "Shelf Registration Statement": See Section 2(b) hereof. 

        "Subsequent Shelf Registration": See Section 2(b) hereof. 

        "Trustee": The Trustee under the Indenture. 

        "Underlying Shares": See the second introductory paragraph hereto. 

        "Underwritten Registration" or "Underwritten Offering": A registration in which
Registrable Securities are sold to an underwriter for reoffering to the public. 

        2.     Shelf
Registration. 

        (a)   Shelf Registration. The Company shall file with the SEC a Registration Statement for an offering to be made on a
continuous basis pursuant to Rule 415 covering all of the Registrable Securities (the "Initial Shelf Registration") on or prior to the Filing
Date. 

        The
Initial Shelf Registration shall be on Form S-3 or another appropriate form permitting registration of the Registrable Securities for resale by Holders in the
manner or manners designated by them (excluding Underwritten Offerings). The Company shall not permit any securities other than the Registrable Securities to be included in the Initial Shelf
Registration or any Subsequent Shelf Registration (as defined below). 

        The
Company shall use commercially reasonable efforts to cause the Initial Shelf Registration to be declared effective under the Securities Act on or prior to the Effectiveness Date and
to keep the Initial Shelf Registration continuously effective under the Securities Act until the earlier of (i) the expiration of the holding period under Rule 144(k) under the
Securities Act applicable to 

3

 

the
last Underlying Shares issued or issuable upon conversion of Securities or (ii) the date there are no longer any Registrable Securities (the "Effectiveness
Period"). 

        (b)   Subsequent Shelf Registrations. If the Initial Shelf Registration or any Subsequent Shelf Registration (as defined below)
ceases to be effective for any reason at any time during the Effectiveness Period (other than because of the sale of all of the Registrable Securities registered thereunder), the Company shall use
commercially reasonable efforts to obtain the prompt withdrawal of any order suspending the effectiveness thereof, and in any event shall within 45 days of such cessation of effectiveness amend
such
Shelf Registration in a manner to obtain the withdrawal of the order suspending the effectiveness thereof, or file an additional "shelf" Registration Statement pursuant to Rule 415 covering all
of the Registrable Securities (a "Subsequent Shelf Registration"). If a Subsequent Shelf Registration is filed, the Company shall use commercially
reasonable efforts to cause the Subsequent Shelf Registration to be declared effective under the Securities Act as soon as practicable after such filing and to keep such Registration Statement
continuously effective for the balance of the Effectiveness Period. As used herein, the term "Shelf Registration" means the Initial Shelf Registration
and any Subsequent Shelf Registration and the term "Shelf Registration Statement" means any Registration Statement filed in connection with a Shelf
Registration. 

        (c)   Supplements and Amendments. The Company shall promptly supplement and amend the Shelf Registration if required by the
rules, regulations or instructions applicable to the registration form used for such Shelf Registration, if required by the Securities Act, or if reasonably requested by the Holders of a majority in
Amount of Registrable Securities covered by such Registration Statement. 

        (d)   Notice and Questionnaire. Each Holder agrees that if such Holder wishes to sell Registrable Securities pursuant to a
Shelf Registration Statement and related Prospectus, it will do so only in accordance with this Section 2(d). Each Holder wishing to sell Registrable Securities pursuant to a Shelf Registration
Statement and related Prospectus agrees to deliver a Notice and Questionnaire to the Company at least five (5) Business Days prior to any intended distribution of Registrable Securities under
the Shelf Registration Statement. From and after the date the Initial Shelf Registration Statement is declared effective, the Company shall, as promptly as practicable after the date a Notice and
Questionnaire is delivered, and in any event upon the later of (x) five (5) Business Days after such date or (y) five (5) Business Days after the expiration of any Deferral
Period in effect when the Notice and Questionnaire is delivered: 

        (i)    if
required by applicable law, file with the SEC a post-effective amendment to the Shelf Registration Statement or prepare and, if required by applicable
law, file a supplement to the related Prospectus or a supplement or amendment to any document incorporated therein by reference or file any other required document so that the Holder delivering
such Notice and Questionnaire is named as a selling securityholder in the Shelf Registration Statement and the related Prospectus in such a manner as to permit such Holder to deliver such Prospectus
to purchasers of the Registrable Securities in accordance with applicable law and, if the Company shall file a post-effective amendment to the Shelf Registration Statement, use
commercially reasonable efforts to cause such post-effective amendment to be declared effective under the Securities Act as promptly as practicable, but in any event by the date (the
"Amendment Effectiveness Deadline Date") that is forty-five (45) days after the date such post-effective amendment is
required by this clause to be filed; 

        (ii)   provide
such Holder copies of any documents filed pursuant to Section 2(d)(i); and 

        (iii)  notify
such Holder as promptly as practicable after the effectiveness under the Securities Act of any post-effective amendment filed pursuant to
Section 2(d)(i); providedthat if such Notice and Questionnaire is delivered during a Deferral Period (as defined in 

4

 

Section 3(b)),
the Company shall so inform the Holder delivering such Notice and Questionnaire and shall take the actions set forth in clauses (i), (ii) and (iii) above upon
expiration of the Deferral Period. 

Notwithstanding
anything contained herein to the contrary, (i) the Company shall he under no obligation to name any Holder that has not delivered a Notice and Questionnaire to the Company in
accordance with this Section 2(d) and (ii) the Amendment Effectiveness Deadline Date shall he extended by up to ten (10) Business Days from the expiration of a Deferral
Period (and the Company shall incur no obligation to pay Liquidated Damages during such extension) if such Deferral Period shall be in effect on the Amendment Effectiveness Deadline Date. 

        3.     Liquidated
Damages. 

        (a)   The
Company, the Guarantors and the Initial Purchasers agree that the Holders of Securities will suffer damages if the Company fails to fulfill its obligations under
Section 2 hereof and that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, the Company and each Guarantor, jointly and severally, agrees to pay
liquidated damages on the Securities ("Liquidated Damages") under the circumstances and to the extent set forth below (each of which shall be given
independent effect; each a "Registration Default"). 

        (i)    if
the Initial Shelf Registration is not filed on or prior to the Filing Date, then commencing on the day after the Filing Date, Liquidated Damages shall accrue on the
Securities at a rate of 0.50% per annum on the Amount of Securities; 

        (ii)   if
a Shelf Registration is not declared effective by the SEC on or prior to the Effectiveness Date, then commencing on the day after the Effectiveness Date, Liquidated
Damages shall accrue on the Securities at a rate of 0.50% per annum on the Amount of Securities; and 

        (iii)  if
a Shelf Registration has been declared effective and such Shelf Registration ceases to be effective at any time during the Effectiveness Period (other than as
permitted under Section 3(b)), then commencing on the day after the date such Shelf Registration ceases to be effective, Liquidated Damages shall accrue on the Securities at a rate of 0.50% per
annum on the Amount of Securities; 

        (iv)  if
any post-effective amendment filed pursuant to Section 2(d)(i) has not become effective under the Securities Act on or prior to the
Amendment Effectiveness Deadline Date, then commencing on the day after the Amendment Effectiveness Deadline Date, Liquidated Damages shall accrue on the Securities at a rate of 0.50% per annum on the
Amount of Securities; and 

        (v)   if
the aggregate duration of Deferral Periods in any period exceeds the number of days permitted in respect of such period pursuant to Section 3(b), then
commencing on the day that caused the limit on the aggregate duration of Deferral Periods to be exceeded, Liquidated Damages shall accrue on the Securities at a rate of 0.50% per annum on the Amount
of Securities; 

provided that Liquidated Damages on the Securities may not accrue under more than one of the foregoing clauses (i), (ii), (iii), (iv) and
(v) at any one time; and provided further, that (1) upon the filing of the Initial Shelf Registration as required hereunder (in the case
of clause (a)(i) of this Section 3), (2) upon the effectiveness of a Shelf Registration as required hereunder (in the case of clause (a)(ii) of this
Section 3), (3) upon the effectiveness of a Shelf Registration which had ceased to remain effective (in the case of clause (a)(iii) of this Section 3),
(4) upon the effectiveness of a post-effective amendment as required hereunder (in the case of clause (a)(iv) of this Section 3), or (5) upon the
termination of the Deferral Period that caused the limit on the aggregate duration of 

5

 

Deferral
Periods to be exceeded (in the case of clause (a)(v) of this Section 3), Liquidated Damages on the Securities as a result of such clause, shall cease to accrue. It is
understood and agreed that, notwithstanding any provision to the contrary, no Liquidated Damages shall accrue on any Registrable Securities that are then covered by, and may be sold under, an
effective Shelf Registration Statement or on any Underlying Shares that are no longer Registrable Securities. 

        (b)   Notwithstanding
paragraph (a) of this Section 3, the Company, upon written notice to the Holders, shall be permitted to suspend the effectiveness of
a Registration Statement covering the Registrable Securities for any bona fide reason whatsoever for up to 45 consecutive days (the "Deferral
Period") in any 90-day period without paying Liquidated Damages; provided that in the event the suspension relates
to a previously undisclosed proposed or pending material business transaction, the disclosure of which the Company determines in good faith would be reasonably likely to impede the Company's ability
to consummate such transaction, the Company may extend a Deferral Period from 45 days to 60 days without the Company and the Guarantors being obligated to pay Liquidated Damages;  provided further, that Deferral Periods may not total more than 90 days in the aggregate in any twelve-month period. The Company shall not be
required to specify in the written notice to the Holders the nature of the event giving rise to the Deferral Period. 

        (c)   So
long as Notes remain outstanding, the Company shall notify the Trustee within five Business Days after each and every date on which an event occurs in respect of
which Liquidated Damages are required to be paid. Any amounts of Liquidated Damages due pursuant to clause (a)(i), (a)(ii), (a)(iii),
(a)(iv) or (a)(v) of this Section 3 will be payable in cash quarterly on March 15, June 15, September 15 and December 15 of each year (each, a
"Damages Payment Date"), commencing with the first such date occurring after any such Liquidated Damages commences to accrue, to Holders to whom regular
interest is payable on such Damages Payment Date, with respect to Notes, and to Persons that are registered Holders on March 1, June 1, September 1 or December 1
immediately prior to a Damages Payment Date with respect to Underlying Shares that are Registrable Securities, provided that any Liquidated Damages
accrued with respect to any Note or portion thereof redeemed by the Company on a redemption date or converted into Underlying Shares on a conversion date prior to the Damages Payment Date,
shall, in any such event, be paid instead to the Holder who submitted such Note or portion thereof for redemption or conversion on the applicable redemption date or conversion date, as the case may
be, on such date (or promptly following the conversion date, in the case of conversion). The amount of Liquidated Damages for Securities will be determined by multiplying the rate of Liquidated
Damages by the Amount of Securities outstanding on the first Damages Payment Date following such Registration Default in the case of the first such payment of Liquidated Damages with respect to a
Registration Default (and thereafter at the next succeeding Damages Payment Date until the cure of such Registration Default), multiplied by a fraction, the numerator of which is the number
of days such Liquidated Damages rate was applicable during such period (determined on the basis of a 360-day year comprised of twelve 30-day months and, in the
case of a partial month, the actual number of days elapsed), and the denominator of which is 360. 

        4.     Registration
Procedures. 

        In
connection with its registration obligations pursuant to Section 2 hereof, the Company shall: 

        (a)   Prepare
and file with the SEC, on or prior to the Filing Date, a Registration Statement or Registration Statements as prescribed by Section 2 hereof, and use
commercially reasonable efforts to cause each such Registration Statement to become effective and remain effective as provided herein; provided that
before filing any Registration Statement or Prospectus or any amendments or supplements thereto, the Company shall furnish to and afford the Holders of the Registrable Securities covered by such
Registration Statement a reasonable opportunity to review 

6

 

copies
of all such documents proposed to be filed (in each case, where possible, at least three Business Days prior to such filing, or such later date as is reasonable under the circumstances). The
Company shall not file any Registration Statement or Prospectus or any amendments or supplements thereto if the Holders of a majority in Amount of Securities shall reasonably object in writing within
such period. The Company shall be deemed not to have used commercially reasonable efforts to keep a Registration Statement effective during the Effectiveness Period if the Company voluntarily takes
any action that would result in Selling Holders of the Registrable Securities covered thereby not being able to sell such Registrable Securities during that period unless such action is required by
applicable law or stock exchange requirements or unless the Company complies with this Agreement, including without limitation the provisions of Section 4(i) hereof. 

        (b)   Prepare
and file with the SEC such amendments and post-effective amendments to each Shelf Registration as may be necessary to keep such Registration
Statement continuously effective for the Effectiveness Period; cause the related Prospectus to be supplemented by any prospectus supplement required by applicable law, and as so supplemented to be
filed pursuant to Rule 424 (or any similar provisions then in force) promulgated under the Securities Act; and comply with the provisions of the Securities Act applicable to it with respect to
the disposition of all Registrable Securities covered by such Registration Statement as so amended or in such Prospectus as so supplemented. 

        (c)   Notify
the Selling Holders and Designated Counsel, if any, promptly (but in any event within two Business Days), (i) when a Prospectus or any prospectus
supplement or post-effective amendment has been filed, and, with respect to a Registration Statement or any post-effective amendment, when the same has become effective under
the Securities Act (including in such notice a written statement that any Holder may, upon request, obtain, at the sole expense of the Company, one conformed copy of such Registration Statement or
post-effective amendment including financial statements and schedules, documents incorporated or deemed to be incorporated by reference and exhibits), (ii) of the issuance by the
SEC of any stop order suspending the effectiveness of a Registration Statement or of any order preventing or suspending the use of any Prospectus or the initiation of any proceedings for that purpose,
(iii) of the happening of any event, the existence of any condition or any information becoming known that makes any statement made in such Registration Statement or related Prospectus or any
document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in or amendments or supplements to such Registration
Statement, Prospectus or documents so that, in the case of the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading, and that in the case of the Prospectus, it will not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading and (iv) of the Company's
determination that a post-effective amendment to a Registration Statement would be appropriate. 

        (d)   Use
commercially reasonable efforts to prevent the issuance of any order suspending the effectiveness of a Registration Statement or of any order preventing or
suspending the use of a Prospectus and, if any such order is issued, to use commercially reasonable efforts to obtain the withdrawal of any such order at the earliest possible moment, and provide
immediate notice to the Selling Holders of the withdrawal of any such order. 

        (e)   Furnish
to each Selling Holder and Designated Counsel, if any, at the sole expense of the Company, one conformed copy of the Registration Statement or Registration
Statements and each post-effective amendment thereto, including financial statements and schedules, and, if requested, all documents incorporated or deemed to be incorporated therein by
reference and all exhibits. 

7

 

        (f)    Deliver
to each Selling Holder and Designated Counsel, if any, at the sole expense of the Company, as many copies of the Prospectus (including each form of preliminary
prospectus) and each amendment or supplement thereto and any documents incorporated by reference therein as such Persons may reasonably request; and, subject to Sections 4A(a) and
4A(c) hereof, the Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the Selling Holders of Registrable Securities and dealers, if any, in
connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto. 

        (g)   Cause
the Company's counsel to perform Blue Sky law investigations and file registrations and qualifications required to be filed in connection with the registration or
qualification (or exemption from such registration or qualification) of such Registrable Securities or offer and sale under the securities or Blue Sky laws of such jurisdictions within the United
States as any Selling Holder reasonably requests, keep each such registration or qualification (or exemption therefrom) effective during the period such Registration Statement is required to he kept
effective and do any and all other acts or things reasonably necessary or advisable under Blue Sky laws to enable the disposition in such jurisdictions of the Registrable Securities covered by the
applicable Registration Statement; provided that the Company shall not be required to (i) qualify generally to do business in any jurisdiction
where it is not then so qualified, (ii) take any action that would subject it to general service of process in any such jurisdiction where it is not then so subject or (iii) subject
itself to taxation in any such jurisdiction where it is not then so subject. 

        (h)   Cooperate
with the Selling Holders and their respective counsel to facilitate the timely preparation and delivery of certificates representing shares of Registrable
Securities to be sold, which certificates shall not bear any restrictive legends and shall be in a form eligible for deposit with The Depository Trust Company; and enable such shares of Registrable
Securities to be in such denominations and registered in such names as the Selling Holders may reasonably request. 

        (i)    Upon
the occurrence of any event contemplated by Section 4(c)(ii), 4(c)(iii) or 4(c)(iv) hereof, as promptly as practicable prepare and (subject to
Section 4(a) hereof) file with the SEC, at the sole expense of the Company, a supplement or post-effective amendment to the Registration Statement or a supplement to the
related Prospectus or any document incorporated or deemed to be incorporated therein by reference, or file any other required document so that, as thereafter delivered to the purchasers of the
Registrable Securities being sold thereunder, any such Prospectus will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they were made, not misleading. 

        (j)    Prior
to the effective date of the first Registration Statement relating to the Registrable Securities, (i) provide the transfer agent for the Registrable
Securities with certificates for the Registrable Securities in a form eligible for deposit with The Depository Trust Company and (ii) provide a CUSIP number for the Registrable Securities. 

        (k)   During
the Effectiveness Period, make available at reasonable times for inspection by one or more representatives of the Selling Holders and any attorney or accountant
retained by any such Selling Holders (collectively, the "Inspectors"), at the offices where normally kept, during reasonable business hours, at
such time or times as shall be mutually convenient for the Company and the Inspectors as a group, all financial and other records, pertinent corporate documents and instruments of the Company and its
subsidiaries (collectively, the "Records") as shall be reasonably necessary to enable them to exercise any applicable due diligence responsibilities,
and cause the officers, directors and employees of the Company and its subsidiaries to supply all information reasonably requested by any such Inspector in connection with such Registration Statement;  provided that the Company shall have no obligation to provide any such information prior to the 

8

 

execution
by the party receiving such information of a confidentiality agreement in a form reasonably acceptable to the Company. Records that the Company determines, in good faith, to be confidential
and any Records that it notifies the Inspectors are confidential shall not be disclosed by any Inspector unless (i) the disclosure of such Records is necessary to avoid or correct a material
misstatement or material omission in such Registration Statement, (ii) the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction,
(iii) disclosure of such information is, in the opinion of counsel for any Inspector, necessary or advisable in connection with any action, claim, suit or proceeding, directly involving or
potentially involving such Inspector and arising out of, based upon, relating to, or involving this Agreement or any transactions contemplated hereby or arising hereunder or (iv) the
information in such Records has been made generally available to the public other than through the acts of such Inspector; provided that prior notice
shall be provided as soon as practicable to the Company of the potential disclosure of any information by such Inspector pursuant to clauses (ii) or (iii) of this sentence to permit the
Company to obtain a protective order (or waive the provisions of this paragraph (k)). Each Inspector shall take such actions as are reasonably necessary to protect the confidentiality of such
information (if practicable) to the extent such actions are otherwise not inconsistent with, an impairment of or in derogation of the rights and interests of the Holder or any Inspector, unless and
until such information in such Records has been made generally available to the public other than as a result of a breach of this Agreement. 

        (l)    Provide
(i) the Holders of the Registrable Securities to be included in such Registration Statement and Designated Counsel, if any, (ii) the sales or
placement agent, if any, thereof, and (iii) one counsel for such agents, reasonable opportunity to participate in the preparation of such Registration Statement, each prospectus included
therein or filed with the SEC, and each amendment or supplement thereto. 

        (m)  During
the Effectiveness Period, comply with all applicable rules and regulations of the SEC and make generally available to its security holders earning statements
satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the Securities Act) no later than 45 days
after the end of any 12-month period (or 90 days after the end of any 12-month period if such period is a fiscal year) commencing on the first day of the first fiscal
quarter of the Company after the effective date of a Registration Statement, which statements shall cover said 12-month periods. 

        (n)   Use
commercially reasonable efforts to cause the Registrable Securities covered by any Shelf Registration Statement to be registered with or approved by such other
governmental agencies or authorities as may be reasonably necessary to enable the Selling Holder or Holders thereof to consummate the disposition of such Registrable Securities, except as may be
required solely as a consequence of the nature of such Selling Holder's business, in which case the Company will cooperate in all reasonable respects with the filing of such Registration Statement and
the granting of such approvals. 

        (o)   If
requested by Designated Counsel, if any, or the Holders of a majority in Amount of Registrable Securities, (i) promptly incorporate in a prospectus supplement
or post-effective amendment such information as the Designated Counsel, if any, or such Holders reasonably determine is necessary to be included therein, (ii) make all required
filings of such prospectus supplement or such post-effective amendment as soon as reasonably practicable after the Company has received notification of the matters to be incorporated in
such prospectus supplement or post-effective amendment and (iii) supplement or make amendments to such Registration Statement. 

9

  

        (p)   Use
commercially reasonable efforts to take all other steps necessary or advisable to effect the registration of the Registrable Securities covered by a Registration
Statement contemplated hereby. 

        4A.  Holders'
Obligations. 

        (a)   Each
Holder agrees, by acquisition of the Registrable Securities, that no Holder shall be entitled to sell any of such Registrable Securities pursuant to a Registration
Statement or to receive a Prospectus relating thereto, unless such Holder has furnished the Company with a Notice and Questionnaire as required pursuant to Section 2(d) hereof (including
the information required to be included in such Notice and Questionnaire) and the information set forth in the next sentence. Each Selling Holder agrees promptly to furnish to the Company all
information required to be disclosed in order to make the information previously furnished to the Company by such Selling Holder not misleading and any other information regarding such Selling Holder
and the distribution of such Registrable Securities as the Company may from time to time reasonably request. Any sale of any Registrable Securities by any Holder shall constitute a representation and
warranty by such Holder that the information relating to such Holder and its plan of distribution is as set forth in the Prospectus delivered by such Holder in connection with such disposition, that
such Prospectus does not as of the time of such sale contain any untrue statement of a material fact relating to or provided by such Holder or its plan of distribution and that such Prospectus does
not as of the time of such sale omit to state any material fact relating to or provided by such Holder or its plan of distribution necessary to make the statements in such Prospectus, in the light of
the circumstances under which they were made, not misleading. 

        (b)   The
Company may require each Selling Holder of Registrable Securities as to which any registration is being effected to furnish to the Company such additional
information regarding such Holder and its plan of distribution of such Registrable Securities as the Company may, from time to time, reasonably request to the extent necessary or advisable to comply
with the Securities Act. The Company may exclude from such registration the Registrable Securities of any Selling Holder if such Holder fails to furnish such additional information within 20 Business
Days after receiving such request. Each Selling Holder as to which any Shelf Registration is being effected agrees to furnish promptly to the Company all information required to be disclosed so that
the information previously furnished to the Company by such Holder is not materially misleading and does not omit to state any material fact required to he stated therein or necessary to make the
statements therein not misleading in light of the circumstances under which they were made. 

        (c)   Each
Holder of Registrable Securities agrees by acquisition of such Registrable Securities that, upon actual receipt of any notice from the Company suspending the
effectiveness of the Registration Statement pursuant to Section 3(b) hereof, or upon the happening of any event of the kind described in Section 4(c)(ii), 4(c)(iii) or
4(c)(iv) hereof, such Holder will forthwith discontinue disposition of such
Registrable Securities covered by such Registration Statement or Prospectus until such Holder's receipt of the copies of the supplemented or amended Prospectus contemplated by
Section 4(i) hereof, or until it is advised in writing by the Company that the use of the applicable Prospectus maybe resumed, and it has received copies of any amendments or supplements
thereto. Each Holder agrees to keep any such notice confidential. 

        5.     Registration
Expenses. 

        (a)   All
fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be borne by the Company, including, without limitation,
(i) all registration and filing fees (including, without limitation, fees and expenses of compliance with state securities or Blue Sky laws, including, without limitation, reasonable fees and
disbursements of counsel in connection with Blue Sky qualifications of the Registrable Securities and determination of the eligibility of the Registrable Securities for investment under the laws of
such jurisdictions as 

10

 

provided
in Section 4(g) hereof), (ii) printing expenses, including, without limitation, expenses of printing certificates for Registrable Securities in a form eligible for
deposit with The Depository Trust Company and of printing prospectuses if the printing of prospectuses is requested by the Holders of a majority in Amount of Registrable Securities included in any
Registration Statement, (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the
Company desires such insurance, (vi) fees and expenses of all other Persons retained by the Company, (vii) internal expenses of the Company (including, without limitation, all salaries
and expenses of officers and employees of the Company performing legal or accounting duties), (viii) the expense of any annual audit, (ix) the fees and expenses incurred in connection
with the listing of the securities to be registered on any securities exchange, if applicable, and (x) the expenses relating to printing, word processing and distributing all Registration
Statements and any other documents necessary in order to comply with this Agreement. Notwithstanding anything in this Agreement to the contrary, each Holder shall pay all brokerage commissions with
respect to any Registrable Securities sold by it and, except as set forth in Section 5(b) below, the Company shall not be responsible for the fees and expenses of any counsel, accountant
or advisor for the Holders. 

        (b)   The
Company shall reimburse the Holders of the Registrable Securities being registered in a Shelf Registration for the reasonable fees and disbursements of Designated
Counsel. 

        6.     Indemnification.

        (a)   Each
of the Company and the Guarantors agrees, jointly and severally, to indemnify and hold harmless each Holder (which, for the absence of doubt, for purposes of this
Section 6 shall include the Initial Purchasers) and the affiliates, directors, officers, agents, representatives and employees of any Holder (including any predecessor holder) and each other
Person, if any, who controls any Holder
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities, joint or several, to which any Holder or any
such affiliate, director, officer, agent, representative, employee or controlling person may become subject under the Securities Act, the Exchange Act or otherwise, insofar as any such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon: 

        (i)    any
untrue statement or alleged untrue statement of any material fact contained in (A) any Registration Statement or Prospectus, or any amendment or supplement
thereto or any related preliminary prospectus or (B) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information
furnished by or on behalf of the Company filed in any jurisdiction in order to qualify the Registrable Securities under the securities or "Blue Sky" laws thereof or filed with any securities
association or securities exchange (each, an "Application"); or 

        (ii)   the
omission or alleged omission to state, in any Registration Statement or Prospectus, or any amendment or supplement thereto or any related preliminary prospectus, or
any Application, a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, 

and
will reimburse, as incurred, each such Holder and each such affiliate, director, officer, agent, representative and employee and each such controlling person for any legal or other expenses
reasonably incurred by each such Holder, such affiliate, director, officer, agent, representative or employee or each such controlling person in connection with investigating, defending against or
appearing as a third-party witness in connection with any such loss, claim, damage, liability or action; provided that the Company and the Guarantors
will not be liable (i) in any such case to the extent that any such loss, claim, damage, or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission
or alleged omission made in any Registration 

11

 

Statement
or Prospectus, or any amendment or supplement thereto or any related preliminary prospectus, or any Application, in reliance upon and in conformity with written information furnished to the
Company by any Holder specifically for use therein or (ii) with respect to any untrue statement or alleged untrue statement or omission or alleged omission made in any preliminary prospectus,
to the extent that any such loss, claim, damage or liability arises solely from the fact that any Holder sold Registrable Securities to a person to whom there was not sent or given a copy of the
Prospectus (or of the preliminary prospectus as then amended or supplemented if the Company shall have furnished such Holder with such amendment or supplement thereto on a timely basis) at or prior to
the written confirmation of such sale, if the Company shall have previously furnished copies thereof to such Holder and the Prospectus (or the preliminary prospectus as then amended or supplemented if
the Company shall have furnished such Holder with such amendment or supplement thereto on a timely basis) would have corrected any such untrue statement or omission. The indemnity agreement provided
for in this Section 6 will be in addition to any liability that the Company and the Guarantors may otherwise have to the indemnified parties. The Company and the Guarantors shall not be liable
under this paragraph (a) for any settlement of any claim or action effected without their consent, which consent shall not he unreasonably withheld or delayed. 

        No
Holder shall, without the prior written consent of the Company, effect any settlement or compromise of any pending or threatened proceeding in respect of which the Company is or could
have been a party, or indemnity could have been sought hereunder by the Company, unless such settlement (A) includes an unconditional written release of the Company and the Guarantors, in form
and substance reasonably satisfactory to the Company, from all liability on claims that are the subject matter of such proceeding and (B) does not include any statement as to an admission of
fault, culpability or failure to act by or on behalf of the Company. 

        (b)   Each
Holder agrees, severally and not jointly, to indemnify and hold harmless the Company, its affiliates, directors, officers, agents, representatives and employees and
each other Person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act against any losses, claims, damages or liabilities to
which the Company or any such affiliate, director, officer, agent, representative, employees or controlling person may become subject under the Securities Act, the Exchange Act or otherwise, insofar
as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of any material fact contained
in any Registration Statement or Prospectus, or any amendment or supplement thereto or any related preliminary prospectus, or any Application or (ii) the omission or the alleged omission to
state therein a material fact required to be stated in any Registration Statement or Prospectus, or any amendment or supplement thereto or any related preliminary prospectus, or any Application, or
necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was
made in reliance upon and in conformity with written information concerning such Holder furnished to the Company by such Holder specifically for use therein; and, subject to the limitation set forth
immediately preceding this clause, will reimburse, as incurred, any legal or other expenses reasonably incurred by the Company, any Guarantor or any such affiliate, director, officer, agent,
representative, employee or controlling person in connection with investigating or defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or
action in respect thereof. This indemnity agreement will be in addition to any liability that the Holders may otherwise have to the indemnified parties. No Holder shall be liable under this
Section 6 for any settlement of any claim or action effected without its consent, which consent shall not be unreasonably withheld or delayed. 

12

 

        The
Company and the Guarantors shall not, without the prior written consent of such Holder, effect any settlement or compromise of any pending or threatened proceeding in respect of
which any Holder is or could have been a party, or indemnity could have been sought hereunder by any Holder, unless such settlement (A) includes an unconditional written release of such Holder,
in form and substance reasonably satisfactory to the Holder, from all liability on claims that are the subject matter of such proceeding and (B) does not include any statement as to an
admission of fault, culpability or failure to act by or on behalf of such Holder. 

        (c)   Promptly
after receipt by an indemnified party under this Section 6 of notice of the commencement of any action for which such indemnified party is entitled to
indemnification under this Section 6, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 6, notify the
indemnifying party of the commencement thereof in writing; but the omission to so notify the indemnifying party (i) will not relieve it from any liability under paragraph (a) or
(b) above unless and to the extent such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any event, relieve the
indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraphs (a) and (b) above. In case any such action is brought
against any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent that it may wish,
jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party;  provided that if (i) the use of counsel
chosen by the indemnifying party to represent the indemnified party would present such counsel with a
conflict of interest, (ii) the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have been advised by counsel that
there may be one or more legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party, or (iii) the
indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after receipt by the indemnifying party
of notice of the institution of such action, then, in each such case, the indemnifying party shall not have the right to direct the defense of such action on behalf of such indemnified party or
parties and such indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of such indemnified party or parties. After notice from the indemnifying
party to such indemnified party of its election so to assume the defense thereof and approval by such indemnified party of counsel appointed to defend such action, the indemnifying party will not be
liable to such indemnified party under this Section 6 for any legal or other expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in
connection with the defense thereof, unless (i) the indemnified party shall have employed separate counsel in accordance with the proviso to the immediately preceding sentence (it being
understood, however, that in connection with such action the indemnifying party shall not be liable for the expenses of more than one separate counsel (in addition to local counsel) in any one action
or separate but substantially similar actions in the same jurisdiction arising out of the same general allegations or circumstances, designated by the applicable Holder in the case of
paragraph (a) of this Section 6 or the Company in the case of paragraph (b) of this Section 6, representing the indemnified parties under such
paragraph (a) or paragraph (b), as the case may be, who are parties to such action or actions) or (ii) the indemnifying party has authorized in writing the employment of
counsel for the indemnified party at the expense of the indemnifying party. After such notice from the indemnifying party to such indemnified party, the indemnifying party will not be liable for the
costs and expenses of any settlement of such action effected by such indemnified party without the prior written consent of the indemnifying party (which consent shall not be unreasonably withheld),
unless such indemnified party waived in 

13

 

writing
its rights under this Section 6, in which case the indemnified party may effect such a settlement without such consent. 

        (d)   In
circumstances in which the indemnity agreement provided for in the preceding paragraphs of this Section 6 is unavailable to, or insufficient to hold harmless,
an indemnified party in respect of any losses, claims, damages or liabilities (or actions in respect thereof), each indemnifying party, in order to provide for just and equitable contribution, shall
contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect (i) the relative benefits received
by the indemnifying party or parties on the one hand and the indemnified party on the other from the offering of the Registrable Securities or (ii) if the allocation provided by the foregoing
clause (i) is not permitted by applicable law, not only such relative benefits but also the relative fault of the indemnifying party or parties on the one hand and the indemnified party
on the other in connection with the statements or omissions or alleged statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof). The
relative benefits received by the Company shall be deemed to he equal to the total net proceeds (before deducting expenses) received by the Company under the Purchase Agreement from the offering and
sale of the Registrable Securities giving rise to such obligations. The relative benefits received by any Holder shall be deemed to be equal to the value of receiving registration rights for the
Registrable Securities under this Agreement. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand, or such Holder on the other, the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or omission or alleged statement or omission, and any other equitable considerations appropriate in the circumstances. The
Company, the Guarantors and the Initial Purchasers agree that it would not be just and equitable if the amount of such contribution were determined by pro rata or per capita allocation or by any other
method of allocation that does not take into account the equitable considerations referred to in the first sentence of this paragraph (d). Notwithstanding any other provision of this
paragraph (d), in no event shall any Holder be required to contribute any amount in excess of the amount by which the net proceeds received by such Holder from the offering or sale of the
Registrable Securities pursuant to a Shelf Registration Statement exceeds the amount of damages which such Holder would have otherwise been required to pay by reason of such untrue or alleged untrue
statements or omissions or alleged omissions to state a material fact, and no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this paragraph (d), each affiliate, director, officer, agent,
representative and employee of any Holder and each Person, if any, who controls any Holder within the meaning of Section 15 of the Act or Section 20 of the Exchange Act shall have the
same rights to contribution as any Holder, and each affiliate, director, officer, agent, representative and employee of the Company or any Guarantor and each Person, if any, who controls the Company
or any Guarantor within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, shall have the same rights to contribution as the Company or any Guarantor. 

        7.     Rules 144
and 144A. 

        The
Company covenants that it will file the reports required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the SEC thereunder
in a timely manner in accordance with the requirements of the Securities Act and the Exchange Act and, for so long as any Registrable Securities remain outstanding, if at any time the Company is not
required to file such reports, the Company will, upon the request of any Holder or beneficial owner of Registrable 

14

 

Securities,
make available such information necessary to permit sales pursuant to Rule 144A under the Securities Act. The Company further covenants that, for so long as any Registrable
Securities remain outstanding, it will use commercially reasonable efforts to take such further action as any Holder of Registrable Securities may reasonably request, all to the extent required from
time to time to enable such holder to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by (a) Rule 144 and
Rule 144A under the Securities Act, as such rules may be amended from time to time, or (b) any similar rule or regulation hereafter adopted by the SEC. The Company will provide a copy of
this Agreement to prospective purchasers of the Notes or Registrable Securities identified to the Company by the Initial Purchasers upon request. Upon the request of any Holder, the Company shall
deliver to such Holder a written statement as to whether the Company has complied with such requirements. Notwithstanding the foregoing, nothing in this Section 7 shall be deemed to require the
Company to register any of its securities pursuant to the Exchange Act. 

        8.     Underwritten
Registrations. 

        No
Holder of Registrable Securities may participate in any Underwritten Registration hereunder. 

        9.     Miscellaneous.

        (a)   No Inconsistent Agreements. Neither the Company nor any Guarantor has, as of the date hereof, and neither the Company nor
any Guarantor shall, after the date of this Agreement, enter into any agreement with respect to any of its securities that is inconsistent with the rights granted to the Holders of Registrable
Securities in this Agreement or otherwise conflicts with the provisions hereof. 

        (b)   Adjustments Affecting Registrable Securities. The Company shall not, directly or indirectly, take any action with respect
to the Registrable Securities as a class that would adversely affect the ability of the Holders of Registrable Securities to include such Registrable Securities in a registration undertaken pursuant
to this Agreement. 

        (c)   Amendments and Waivers. The provisions of this Agreement may not be amended, modified or supplemented, and waivers or
consents to departures from the provisions hereof may not be given,
otherwise than with the prior written consent of the Company and the Holders of not less than a majority in Amount of Securities; provided that
Section 6 and this Section 9(c) may not be amended, modified or supplemented without the prior written consent of the Company and each Holder (including, in the case of an
amendment, modification or supplement of Section 6, any Person who was a Holder of Registrable Securities disposed of pursuant to any Registration Statement). Notwithstanding the foregoing, a
waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders of Registrable Securities whose securities are being sold pursuant to
a Registration Statement and that does not directly or indirectly affect, impair, limit or compromise the rights of other Holders of Registrable Securities may be given by the Holders of at least a
majority in Amount of the Registrable Securities being sold by such Holders pursuant to such Registration Statement. 

        (d)   Notices. All notices and other communications (including without limitation any notices or other communications to the
Trustee) provided for or permitted hereunder shall be made in writing by hand delivery, registered first-class mail, next-day air courier or facsimile: 

        (1)   if
to a Holder of Notes or Registrable Securities, at the most current address of such Holder set forth on (x) the records of the registrar under the Indenture,
in the case of Holders of Notes, and (y) the stock ledger of the Company, in the case of Holders of common stock of the Company, unless, in either such case, any Holder shall have provided
notice information in a Notice and Questionnaire or any amendment thereto, in which case such information shall control. 

15

 

        (2)   if
to the Initial Purchasers: 

c/o
Deutsche Bank Securities Inc.

60 Wall Street

New York, New York 10005

Facsimile No.: (212) 797-8974

Attention: Equity Capital Markets

        with a copy to the General Counsel

        Facsimile No.: (212) 797-4564 

and 

c/o
Banc of America Securities LLC

9 West 57th Street

New York, New York 10019

Facsimile No.: (212) 933-2217

Attention: Equity Capital Markets

        with a copy to Eric Hambleton

        Facsimile No.: (212) 847-5124 

with
copies to: 

Davis
Polk & Wardwell

450 Lexington Avenue

New York, New York 10017

Facsimile No.: (212) 450-3800

Attention: Alan Dean 

        (3)   if
to the Company: 

Magnum
Hunter Resources, Inc.

600 East Las Colinas Blvd.

Suite 1100

Irving, Texas 75039

Facsimile No.: (972) 401-3110

Attention: Morgan F. Johnston

        Senior Vice President, General Counsel and Secretary 

with
a copy to: 

Fulbright &
Jaworski L.L.P.

2200 Ross Avenue, Suite 2800

Dallas, Texas 75201

Facsimile No.: (214) 855-8200

Attention: David E. Morrison 

        All
such notices and communications shall be deemed to have been duly given: when delivered by hand, if personally delivered; five (5) Business Days after being deposited in the
mail, postage prepaid, if mailed; one Business Day after being timely delivered to a next-day air courier; and when the addressor receives facsimile confirmation, if sent by facsimile
during normal business hours, and otherwise on the next Business Day during normal business hours. 

        (e)   Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of
each of the parties hereto, including the Holders; provided that this Agreement shall not inure to the benefit of or be binding upon a successor or
assign of a Holder unless and except to the extent such successor or assign holds Registrable Securities. 

16

 

        (f)    Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate
counterparts, including via facsimile, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 

        (g)   Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect
the meaning hereof. 

        (h)   Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS
APPLIED TO CONTRACTS MADE AND PERFORMED WHOLLY WITHIN THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE FEDERAL AND NEW YORK STATE COURTS SITTING IN
MANHATTAN, NEW YORK CITY, THE STATE OF NEW YORK, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT. 

        (i)    Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent
jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no
way be affected, impaired or invalidated, and the parties hereto shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same result as that
contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions,
covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 

        (j)    Securities Held by the Company or Its Affiliates. Whenever the consent or approval of Holders of a specified percentage
in Amount of Securities is required hereunder, Securities held by the Company or its affiliates (as such term is defined in Rule 405 under the Securities Act) shall not be counted in
determining whether such consent or approval was given by the Holders of such required percentage. 

        (k)   Third-Party Beneficiaries. Holders of Notes and Registrable Securities are intended third party beneficiaries of this
Agreement and this Agreement may be enforced by such Persons. 

        (l)    Entire Agreement. This Agreement, together with the Purchase Agreement and the Indenture, is intended by the parties as a
final and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein and therein and any and all prior oral or written agreements,
representations, or warranties, contracts, understandings, correspondence, conversations and memoranda between the Initial Purchasers on the one hand and the Company and the Guarantors on the other,
or between or among any agents, representatives, parents, subsidiaries, affiliates, predecessors in interest or successors in interest with respect to the subject matter hereof and thereof are merged
herein and replaced hereby. 

        (m)  Changes in Guarantors. In the event and to the extent that any subsidiary of the Company becomes a guarantor of the
Company's obligations under the Indenture, (i) such subsidiary shall be deemed to be a Guarantor for purposes of this Agreement and (ii) such subsidiary shall execute a joinder to this
Agreement. In the event and to the extent that any subsidiary of the Company is released as a guarantor of the Company's obligations under the Indenture, such subsidiary shall be simultaneously
released from its obligations under this Agreement. 

[Signature
pages follow] 

17

 

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

	

 	
 	

MAGNUM HUNTER RESOURCES, INC.
	

 	
 	

By:	
 	

/s/  GARY C. EVANS      

	 	 	Name:	 	Gary C. Evans
	 	 	Title:	 	Chairman, President and Chief Executive Officer
	

 	
 	
Guarantors:
	
 	
 	

MAGNUM HUNTER PRODUCTION, INC., as Guarantor
	

 	
 	

By:	
 	

/s/  MORGAN F. JOHNSTON      

	 	 	Name:	 	Morgan F. Johnston
	 	 	Title:	 	Senior Vice President, General Counsel and Secretary
	

 	
 	

GRUY PETROLEUM MANAGEMENT CO., as Guarantor
	

 	
 	

By:	
 	

/s/  MORGAN F. JOHNSTON      

	 	 	Name:	 	Morgan F. Johnston
	 	 	Title:	 	Senior Vice President, General Counsel and Secretary
	

 	
 	

HUNTER GAS GATHERING, INC., as Guarantor
	

 	
 	

By:	
 	

/s/  MORGAN F. JOHNSTON      

	 	 	Name:	 	Morgan F. Johnston
	 	 	Title:	 	Senior Vice President, General Counsel and Secretary
	

 	
 	

TRAPMAR PROPERTIES, INC., as Guarantor
	

 	
 	

By:	
 	

/s/  MORGAN F. JOHNSTON      

	 	 	Name:	 	Morgan F. Johnston
	 	 	Title:	 	Senior Vice President, General Counsel and Secretary
	 	 	 	 	 

18

 

	

 	
 	

CONMAG ENERGY CORPORATION, as Guarantor
	

 	
 	

By:	
 	

/s/  MORGAN F. JOHNSTON      

	 	 	Name:	 	Morgan F. Johnston
	 	 	Title:	 	Senior Vice President, General Counsel and Secretary
	

 	
 	

PINTAIL ENERGY, INC., as Guarantor
	

 	
 	

By:	
 	

/s/  MORGAN F. JOHNSTON      

	 	 	Name:	 	Morgan F. Johnston
	 	 	Title:	 	Senior Vice President, General Counsel and Secretary
	

 	
 	

PRIZE OPERATING COMPANY, as Guarantor
	

 	
 	

By:	
 	

/s/  MORGAN F. JOHNSTON      

	 	 	Name:	 	Morgan F. Johnston
	 	 	Title:	 	Senior Vice President, General Counsel and Secretary
	

 	
 	

PEC (DELAWARE), INC., as Guarantor
	

 	
 	

By:	
 	

/s/  MORGAN F. JOHNSTON      

	 	 	Name:	 	Morgan F. Johnston
	 	 	Title:	 	Senior Vice President, General Counsel and Secretary
	

 	
 	

OKLAHOMA GAS PROCESSING, INC., as Guarantor
	

 	
 	

By:	
 	

/s/  MORGAN F. JOHNSTON      

	 	 	Name:	 	Morgan F. Johnston
	 	 	Title:	 	Senior Vice President, General Counsel and Secretary
	 	 	 	 	 

19

 

	

 	
 	

PRIZE ENERGY RESOURCES L.P., as Guarantor
	

 	
 	

By:	
 	

Prize Operating Company, its General Partner
	

 	
 	

By:	
 	

/s/  MORGAN F. JOHNSTON      

	 	 	Name:	 	Morgan F. Johnston
	 	 	Title:	 	Senior Vice President, General Counsel and Secretary
	

 	
 	

DEUTSCHE BANK SECURITIES INC., as Representative of the Initial Purchasers
	

 	
 	

By:	
 	

/s/  SANDRA E. BELL      

	 	 	Name:	 	Sandra E. Bell
	 	 	Title:	 	Managing Director
	

 	
 	

By:	
 	

/s/  JON R. MARINELLI      

	 	 	Name:	 	Jon R. Marinelli
	 	 	Title:	 	Vice President
	

 	
 	

BANC OF AMERICA SECURITIES LLC, as Representative of the Initial Purchasers
	

 	
 	

By:	
 	

/s/  TREVOR GANSHAW      

	 	 	Name:	 	Trevor Ganshaw
	 	 	Title:	 	Managing Partner

20

QuickLinks

REGISTRATION RIGHTS AGREEMENTExhibit
4.7

 

REGISTRATION RIGHTS
AGREEMENT

REGISTRATION RIGHTS AGREEMENT, dated as of June              , 2005
(this “Agreement”), by and between Back to School Acquisition, L.L.C., a
limited liability company formed under the laws of the State of Delaware
(“Stonington”), and Lincoln Educational Services Corporation, a New Jersey
corporation (the “Company”).

WHEREAS, Stonington has agreed that it is in the best
interests of the Company to have the Company issue shares of its common stock
(the “Common Stock”), no par value per share, to the public in an
initial public offering (the “IPO”) as soon as practicable following the
date of this Agreement.

WHEREAS, the Company has agreed to provide certain
registration rights to Stonington with respect to any Registrable Securities
(as defined below) held by Stonington upon completion of the IPO upon the terms
and subject to the conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the premises and
the covenants hereinafter contained and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
and intending to be legally bound hereby, it is agreed as follows:

1.  Definitions.  (a) 
Unless otherwise defined herein, the terms below shall have the following
meanings (such meanings being equally applicable to both the singular and
plural form of the terms defined):

“Agreement” shall mean this Registration Rights
Agreement, including all amendments, modifications and supplements and any
exhibits or schedules to any of the foregoing.

“Business Day” shall mean any day that is not a
Saturday, a Sunday or a day on which commercial banks are required or permitted
by law to be closed in the City of New York in the State of New York.

“Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended, and all rules and regulations promulgated
thereunder.

“Holder” shall mean Stonington, and any
transferee of Stonington to whom Registrable Securities are permitted to be
transferred in accordance with the terms of this Agreement, and, in each case,
who continues to be entitled to the rights of a Holder hereunder.

“NASD” shall mean the National Association of
Securities Dealers, Inc., or any successor entity thereof.

 

“Person” shall mean any individual, corporation,
partnership, joint venture, firm, trust, unincorporated organization,
government or any agency or political subdivision thereof or other entity.

“Registrable Securities” shall mean (a) Common
Stock held by a Holder and (b) any securities issuable or issued or distributed
in respect of any of the Common Stock identified in clause (a) by way of a
dividend or a stock split or in connection with a combination recapitalization,
reorganization, merger, consolidation or otherwise.  For purposes of this Agreement Registrable
Securities shall cease to be Registrable Securities when (i) a Registration
Statement covering such Registrable Securities has been declared effective
under the Securities Act by the SEC and such Registrable Securities have been
disposed of pursuant to such effective Registration Statement, (ii) the entire
amount of such Registrable Securities proposed to be sold by a Holder in a
single sale constitute less than 1% of the then outstanding Common Stock and,
in the opinion of counsel to such Holder, such Registrable Securities may be
distributed to the public pursuant to Rule 144 (or any successor provision then
in effect) under the Securities Act or (iii) any such Registrable Securities
have been sold in a sale made pursuant to Rule 144 under the Securities Act.

“Registration Statement” shall mean a Demand
Registration Statement, a Piggy-Back Registration Statement and/or a Shelf
Registration Statement, as the case may be.

“Securities Act” shall mean the Securities Act
of 1933, as amended, and all rules and regulations promulgated thereunder.

“SEC” shall mean the Securities and Exchange
Commission, or any successor thereto.

(b)           The following terms have the meanings
set forth in the Section set forth opposite such term:

	
  Term

  	
   

  	
   

  	
  Section

  	
   

  
	
  Blackout Period

  	
   

  	
  6 

  
	
  Common Stock

  	
   

  	
  Recitals

  
	
  Demand for
  Registration

  	
   

  	
  2(c)

  
	
  Demand
  Registration

  	
   

  	
  2(a)

  
	
  Demand
  Registration Statement

  	
   

  	
  2(a)

  
	
  Indemnified
  Party

  	
   

  	
  8(d)

  
	
  Indemnifying
  Party

  	
   

  	
  8(d )

  
	
  IPO

  	
   

  	
  Recitals

  
	
  Participating
  Demand Holders

  	
   

  	
  2(a)

  
	
  Participating
  Piggy-Back Holders

  	
   

  	
  3(b)

  
	
  Piggy-Back
  Registration

  	
   

  	
  3(a)

  
	
  Piggy-Back
  Registration Statement

  	
   

  	
  3(a)

  
	
  Shelf
  Registration

  	
   

  	
  2(b)

  
	
  Shelf
  Registration Statement

  	
   

  	
  2(b)

  

 

2.  Demand Registration.

 

2

(a)           At any time after the completion of
the IPO, after receipt of a written request from a Holder requesting that the
Company effect a registration (a “Demand Registration”) under the
Securities Act covering all or part of the Registrable Securities that
specifies the intended method or methods of disposition thereof, the Company
shall, as expeditiously as is possible, but in any event no later than thirty
(30) days (excluding any days which occur during a permitted Blackout Period
under Section 4 below) after receipt of a written request for a Demand
Registration, file with the SEC a registration statement (a “Demand
Registration Statement”) relating to all Registrable Securities which the
Company has been so requested to register by such Holder (“Participating
Demand Holders”) for sale, to the extent required to permit the disposition
(in accordance with the intended method or methods thereof, as aforesaid) of
the Registrable Securities so registered, and shall use its reasonable best
efforts to cause to be declared effective such Demand Registration Statement, provided,
however, that (i) the aggregate value of the Registrable Securities
requested to be registered shall be greater than $25 million, based on the
closing trading price of the Common Stock on the date the demand to file such
Demand Registration Statement is made, (ii) the number of the Registrable
Securities requested to be registered shall be at least equal to 10% of the
number of shares of the Company’s outstanding Common Stock on the date the
demand to file such Demand Registration Statement is made or (iii) the
Registrable Securities proposed to be included in such Demand Registration
Statement constitutes all Registrable Securities which remain outstanding at
such time.

(b)           Any Demand Registration Statement may
be required by Participating Demand Holders constituting a majority of the
Registrable Securities to be in an appropriate form under the Securities Act (a
“Shelf Registration Statement”) relating to any or all of the
Registrable Securities in accordance with the methods of distribution set forth
in the Shelf Registration Statement and Rule 415 under the Securities Act (a “Shelf
Registration”).

(c)           Holders shall be entitled to an
aggregate of four (4) registrations of Registrable Securities pursuant to this
Section 2 (each, a “Demand Registration”); provided, that a
registration requested pursuant to this Section 2 shall not be deemed to have
been effected for purposes of this Section 2(c) unless (i) it has been declared
effective by the Commission, (ii) it has remained effective for the period set
forth in Section 5(a), (iii) Holders of Registrable Securities included in such
registration have not withdrawn sufficient Common Stock from such registration
such that the remaining Holders requesting registration would not have been
able to request registration under the provisions of Section 2 (iv) the Company
has not included any other securities in such Demand Registration Statement and
(v) the offering of Registrable Securities pursuant to such registration is not
subject to any stop order, injunction or other order or requirement of the
Commission (other than any such stop order, injunction, or other requirement of
the Commission prompted by act or omission of Holders of Registrable
Securities).

(d)           Notwithstanding anything to the
contrary contained herein, the Company shall not be required to prepare and
file a Demand Registration Statement pursuant to this Section 2 if (i) the
demand to prepare and file such Demand Registration Statement is made at any
time up to 180 days following the effective date for any registration statement
filed in connection with any offering of Common Stock by the Company to the
general pubic, other than the IPO, in which Holders shall have been able to
register all Registrable Securities that are the

 

3

 

subject of
such demand, or (ii) the Company has effected a Demand Registration with
respect to a Holder’s Registrable Securities and such Demand Registration
Statement is still effective.

3.  Piggy-Back Registration.

(a)           At any time after completion of the
IPO, if the Company proposes to file on its behalf and/or on behalf of any
holder of its securities a registration statement under the Securities Act on
any form (other than a registration statement on Form S-4 or S-8 or
any successor form for securities to be offered in a transaction of the type
referred to in Rule 145 under the Securities Act or to employees of the Company
pursuant to any employee benefit plan, respectively) for the registration of
Common Stock (a “Piggy-Back Registration”), it will give written notice
to all Holders at least twenty (20) days before the initial filing with the SEC
of such piggy-back registration statement (a “Piggy-Back Registration
Statement”), which notice shall set forth the intended method of
disposition of the securities proposed to be registered by the Company.  The notice shall offer to include in such
filing such aggregate number of Registrable Securities as the Holders may
request.

(b)           Each Holder desiring to have
Registrable Securities registered under this Section 3 (“Participating
Piggy-Back Holders”) shall advise the Company in writing within ten (10)
days after the date of receipt of such offer from the Company, setting forth
the number of such Registrable Securities for which registration is
requested.  The Company shall thereupon
include in such Piggy-Back Registration Statement the number of Registrable
Securities for which registration is so requested and shall use its reasonable
best efforts to effect registration of such Registrable Securities under the
Securities Act.

4.  Blackout Periods.  The Company shall have the right to delay the
filing or effectiveness of a Registration Statement required pursuant to
Sections 2 or 3 hereof  (a “Blackout
Period”) in the event that (i) the Company would, in accordance with the
reasonable advice of its outside legal counsel, be required to disclose either
in the prospectus or on a continuing basis information the disclosure of which
is not in the best interests of the Company’s shareholders or (ii) in the good
faith judgment of the Company’s board of directors, there is a reasonable
likelihood that such disclosure, or any other action to be taken in connection
with the prospectus, would materially and adversely affect or interfere with
any financing, acquisition, merger, disposition of assets (not in the ordinary
course of business), corporate reorganization or other similar transaction
involving the Company which is material to the Company.  The Company shall promptly give the Holders
written notice of such determination containing a general statement of the
reasons for such postponement and an approximation of the anticipated delay.

5.  Registration Procedures.  If the Company is required by the provisions
of Section 2 or 3 to use its reasonable best efforts to effect the registration
of any of its securities under the Securities Act, the Company will, as
expeditiously as possible:

(a)           prepare
and file with the SEC the applicable Registration Statement with respect to
such securities and use its reasonable best efforts to cause such Registration
Statement promptly to become and remain effective for a period of time required
for the disposition of such Securities by the Holders thereof (except with
respect to a Shelf

 

4

 

Registration
Statement which shall remain effective for a period not to exceed two years); provided,
however, that before filing such Registration Statement or any
amendments thereto (for purposes of this subsection, amendments shall not be
deemed to include any filing that the Company is required to make pursuant to
the Exchange Act), the Company shall furnish the representatives of the Holders
referred to in Section 5(m) copies of all documents proposed to be filed,
which documents will be subject to the review of the attorneys retained by such
representative or any such underwriter. 
The Company shall not be deemed to have used its reasonable best efforts
to keep a Registration Statement effective during the applicable period if it
voluntarily takes any action that would result in the Holders of such
Registrable Securities not being able to sell such Registrable Securities
during that period, unless such action is required under applicable law;

(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 and to comply with the provisions
of the Securities Act with respect to the sale or other disposition of all
securities covered by such Registration Statement until the earlier of such
time as all of such securities have been disposed of in a public offering or,
with respect to the Shelf Registration Statement, the expiration of the two
year period referred to in subsection (a) above;

(c)           furnish
to such selling Holders such number of conformed copies of the applicable
Registration Statement and each such amendment and supplement thereto
(including in each case all exhibits), and of a prospectus, including a
preliminary prospectus, in conformity with the requirements of the Securities
Act, and such other documents, as such selling Holders may reasonably request;

(d)           use
its reasonable best efforts to register or qualify the Registrable Securities
covered by such Registration Statement under such other securities or blue sky
laws of such jurisdictions within the United States and Puerto Rico as each
Holder of such securities shall reasonably request, to keep such registration
or qualification in effect for so long as such Registration Statement remains
in effect, and to take any other action which may be reasonably necessary to
enable such seller to consummate the disposition in such jurisdictions of the securities
owned by such Holder (provided, however, that the Company shall
not be required in connection therewith or as a condition thereto to qualify to
do business, subject itself to taxation in or to file a general consent to
service of process in any jurisdiction wherein it would not but for the
requirements of this paragraph (d) be obligated to do so; and provided,
further, that the Company shall not be required to qualify such
Registrable Securities in any jurisdiction in which the securities regulatory
authority requires that any Holder submit any of its Registrable Securities to
the terms, provisions and restrictions of any escrow, lockup or similar
agreement(s) for consent to sell Registrable Securities in such jurisdiction
unless such Holder agrees to do so), and do such other reasonable acts and
things as may be required of it to enable such Holder to consummate the
disposition in such jurisdiction of the securities covered by such Registration
Statement;

 

5

(e)           furnish,
at the request of any Holder requesting registration of Registrable Securities
pursuant to Section 2 or 3, if the method of distribution is by means of
an underwriting, on the date that the Registrable Securities are delivered to
the underwriters for sale pursuant to such registration, or if such Registrable
Securities are not being sold through underwriters, on the date that the
registration statement with respect to such Registrable Securities becomes
effective, (1) a signed opinion, dated such date, of the independent legal
counsel representing the Company for the purpose of such registration,
addressed to the underwriters, if any, and if such Registrable Securities are
not being sold through underwriters, then to the Holders making such request,
as to such matters as such underwriters or the Holders holding a majority of
the Registrable Securities included in such registration, as the case may be,
may reasonably request; and (2) letters dated such date and the date the
offering is priced from the independent registered public accountants of the
Company, addressed to the underwriters, if any, and if such Registrable
Securities are not being sold through underwriters, then to the Holders making
such request and, if such accountants refuse to deliver such letters to such
Holders, then to the Company (i) stating that they are independent
registered public accountants within the meaning of the 1933 Act and that, in
the opinion of such accountants, the financial statements and other financial
data of the Company included in the Registration Statement or the prospectus,
or any amendment or supplement thereto, comply as to form in all material
respects with the applicable accounting requirements of the 1933 Act and
(ii) covering such other financial matters (including information as to
the period ending not more than three (3) Business Days prior to the date
of such letters) with respect to the registration in respect of which such
letter is being given as such underwriters or the Holders holding a majority of
the Registrable Securities included in such registration, as the case may be,
may reasonably request and as would be customary in such a transaction;

(f)            enter
into customary agreements (including if the method of distribution is by means
of an underwriting, an underwriting agreement in customary form) and take such
other actions as are reasonably required in order to expedite or facilitate the
disposition of such Registrable Securities;

(g)           otherwise
use its reasonable best efforts to comply with all applicable rules and
regulations of the SEC, and make earnings statements satisfying the provisions
of Section 11(a) of the Securities Act generally available to the Holders no
later than 45 days after the end of any twelve-month period (or, if such period
is a fiscal year, 90 days (or such shorter time as may be specified in General
Instruction A(2) to Form 10-K under the Securities Exchange Act, or its
successor form, as the period within which the Company is required to file its
annual reports on such form)) (i) commencing at the end of any fiscal quarter
in which Registrable Securities are sold to underwriters in an underwritten
public offering, or (ii) if not sold to underwriters in such an offering,
beginning with the first month of the Company’s first fiscal quarter commencing
after the effective date of the Registration Statement, which statements shall
cover said twelve-month periods;

 

6

(h)           use
its reasonable efforts to cause all such Registrable Securities to be listed on
each securities exchange or quotation system on which similar securities issued
by the Company are listed or traded;

(i)            give
written notice to the Holders:

(i)            when such Registration Statement or
any amendment thereto has been filed with the SEC and when such Registration
Statement or any post-effective amendment thereto has become effective;

(ii)           of any request by the SEC for
amendments or supplements to such Registration Statement or the prospectus
included therein or for additional information;

(iii)          of the issuance by the SEC of any stop
order suspending the effectiveness of such Registration Statement or the
initiation of any proceedings for that purpose;

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

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

(j)            use
its reasonable efforts to prevent the issuance or obtain the withdrawal of any
order suspending the effectiveness of such Registration Statement at the
earliest possible time;

(k)           furnish
to each Holder, without charge, at least one copy of such Registration Statement
and any post-effective amendment thereto, including financial statements and
schedules, and, if the Holder so requests in writing, all exhibits (including
those, if any, incorporated by reference);

(l)            upon
the occurrence of any event contemplated by Section 5(i)(v) above, promptly
prepare a post-effective amendment to such Registration Statement or a
supplement to the related prospectus or file any other required document so
that, as thereafter delivered to the Holders, the prospectus will not contain
an untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.  If
the Company notifies the Holders in accordance with Section 5(i)(v) above to
suspend the use of the prospectus until the requisite changes to the prospectus
have been made, then the Holders shall suspend use of such prospectus and use
their reasonable efforts to return to the Company all copies of such prospectus
(at the Company’s expense) other than

 

7

permanent
file copies then in such Holder’s possession, and the period of effectiveness
of such Registration Statement provided for above shall be extended by the number
of days from and including the date of the giving of such notice to the date
Holders shall have received such amended or supplemented prospectus pursuant to
this Section 5(l);

(m)          make
reasonably available for inspection by the representatives of the Holders, any
underwriter participating in any disposition pursuant to such Registration
Statement and any attorney, accountant or other agent retained by such
representative or any such underwriter all relevant financial and other
records, pertinent corporate documents and properties of the Company and cause
the Company’s employees to supply all relevant information reasonably requested
by such representative or any such underwriter, attorney, accountant or agent
in connection with the registration;

(n)           in
connection with any underwritten offering, make the senior executives of the
Company available to the selling Holders for meetings with prospective
purchasers of the Registrable Securities and prepare and present to potential
investors customary “road show” material in each case in accordance with the
recommendations of the underwriters and in all respects in a manner consistent
with other new issuances of securities in an offering of a similar size to such
offering of the Registrable Securities; and

(o)           use
reasonable best efforts to procure the cooperation of the Company’s transfer
agent in settling any offering or sale of Registrable Securities, including
with respect to the transfer of physical certificates representing limited
partner interests into book-entry form in accordance with any procedures
reasonably requested by the Holders or the underwriters.

It shall be a condition precedent to the obligation of
the Company to take any action pursuant to this Agreement in respect of the
Registrable Securities which are to be registered at the request of any Holder
that such Holder shall furnish to the Company such information regarding the
Registrable Securities held by such Holder and the intended method of
disposition thereof as the Company shall reasonably request and as shall be
required in connection with the action taken by the Company.

6.  Expenses.  All expenses incurred in connection with each
registration pursuant to Sections 2 and 3 of this Agreement, excluding
underwriters’ discounts and commissions, but including without limitation all
registration, filing and qualification fees, word processing, duplicating,
printers’ and accounting fees (including the expenses of any special audits or
“comfort” letters required by or incident to such performance and compliance),
fees of the NASD or listing fees, messenger and delivery expenses, all fees and
expenses of complying with state securities or blue sky laws, fees and
disbursements of counsel for the Company, fees and expenses of the Company and
the underwriters relating to “road show” investor presentations, including the
cost of any aircraft chartered for such purpose, and the fees and disbursements
of one counsel for the selling Holders (which counsel shall be selected by the
Holders holding a majority in interest of the Registrable Securities being
registered), shall be paid by the Company, except that the Holders shall bear
and pay the underwriting commissions

 

8

and discounts applicable to securities offered for
their account in connection with any registrations, filings and qualifications
made pursuant to this Agreement.

7.  Rule 144 and Rule 144A
Information.  (a)  With a view to making available the benefits
of certain rules and regulations of the Commission which may at any time permit
the sale of the Registrable Securities to the public without registration,
(a) at all times after ninety (90) days after any Registration Statement
covering securities of the Company shall have become effective, the Company
agrees to:

(i)            make and keep public information
available, as those terms are understood and defined in Rule 144 under the
Securities Act;

(ii)           use its best efforts to file with the
Commission in a timely manner all reports and other documents required of the
Company under the Securities Act and the Exchange Act; and

(iii)          furnish to each Holder of Registrable
Securities forthwith upon request a written statement by the Company as to its
compliance with the reporting requirements of Rule 144 and of the
Securities Act and the Exchange Act, a copy of the most recent annual or
quarterly report of the Company, and such other reports and documents so filed
by the Company as such Holder may reasonably request in availing itself of any
rule or regulation of the Commission allowing such Holder to sell any
Registrable Securities without registration.

(b)           At all times during which the Company
is neither subject to the reporting requirements of Section 13 or 15(d) of
the Exchange Act, nor exempt from reporting pursuant to Rule 12g3-2(b)
under the Exchange Act, it will provide, upon the written request of any holder
of Registrable Securities in written form (as promptly as practicable and in
any event within 15 Business Days), to any prospective buyer of such Common Stock
designated by such holder, all information required by Rule 144A(d)(4)(i)
of the General Regulations promulgated by the Commission under the Securities
Act.

8.  Indemnification and Contribution.

(a)           The Company shall indemnify and hold
harmless each Holder, such Holder’s members, directors and officers, each
person who participates in the offering of such Registrable Securities,
including underwriters (as defined in the Securities Act), and each person, if
any, who controls such Holder or participating person within the meaning of the
Securities Act, against any losses, claims, damages or liabilities, joint or
several, to which they may become subject under the Securities Act or
otherwise, insofar as such losses, claims, damages or liabilities (or proceedings
in respect thereof) arise out of or are based on any untrue or alleged untrue
statement of any material fact contained in such registration statement on the
effective date thereof (including any prospectus filed under Rule 424
under the Securities Act or any amendments or supplements thereto) or arise out
of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, and shall reimburse each such Holder, such Holder’s
members, directors and officers, such participating person or controlling
person for any legal or

 

9

other
expenses reasonably incurred by them  in
connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the Company shall
not be liable to any Holder, such Holder’s members, directors and officers,
participating person or controlling person in any such case for any such loss,
claim, damage, liability or action to the extent that it arises out of or is
based upon an untrue statement or alleged untrue statement or omission or
alleged omission made in connection with such registration statement,
preliminary prospectus, final prospectus or amendments or supplements thereto,
in reliance upon and in conformity with written information furnished expressly
for use in connection with such registration by any such Holder, such Holder’s
members, directors and officers, participating person or controlling
person.  Such indemnity shall remain in
full force and effect regardless of any investigation made by or on behalf of
any such Holder, such Holder’s members, directors and officers, participating
person or controlling person, and shall survive the transfer of such securities
by such Holder.

(b)           Each Holder requesting or joining in
a registration severally and not jointly shall indemnify and hold harmless the
Company, its directors and officers, and each person, if any, who controls the
Company within the meaning of the Securities Act, and each agent and any
underwriter for the Company (within the meaning of the Securities Act) against
any losses, claims, damages or liabilities, joint or several, to which the
Company or any such director, officer, controlling person, agent or underwriter
may become subject, under the Securities Act or otherwise, insofar as such
losses, claims, damages or liabilities (or proceedings in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement
of any material fact contained in such registration statement on the effective
date thereof (including any prospectus filed under Rule 424 under the
Securities Act or any amendments or supplements thereto) or arise out of or are
based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, in each case to the extent, but only to the extent, that such
untrue statement or alleged untrue statement or omission or alleged omission
was made in such registration statement, preliminary or final prospectus, or
amendments or supplements thereto, in reliance upon and in conformity with
written information furnished by or on behalf of such Holder expressly for use
in connection with such registration; and each such Holder shall reimburse any
legal or other expenses reasonably incurred by the Company or any such
director, officer, controlling person, agent or underwriter in connection with investigating
or defending any such loss, claim, damage, liability or action; provided,
however, that the indemnity agreement contained in this
Section 8(b) shall not apply to amounts paid in settlement of any such
loss, claim, damage, liability or action if such settlement is effected without
the prior written consent of such Holder, and provided, further,
that the liability of each Holder hereunder shall be limited to the proportion
of any such loss, claim, damage, liability or expense which is equal to the
proportion that the net proceeds from the sale of the Common Stock sold by such
Holder under such registration statement bears to the total net proceeds from
the sale of all securities sold thereunder, but not in any event to exceed the
net proceeds received by such Holder from the sale of Registrable Securities
covered by such Registration Statement.

(c)           If the indemnification provided for
in this Section 8 from the indemnifying party is unavailable to an indemnified
party hereunder in respect of any losses, claims, damages, liabilities or
expenses referred to therein, then the indemnifying party, in lieu of
indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified party

 

10

as a result
of such losses, claims, damages, liabilities or expenses in such proportion as
is appropriate to reflect the relative fault of the indemnifying party and
indemnified parties in connection with the actions which resulted in such losses,
claims, damages, liabilities or expenses, as well as any other relevant
equitable considerations.  The relative
fault of such indemnifying party and indemnified parties shall be determined by
reference to, among other things, whether any action in question, including any
untrue or alleged untrue statement of a material fact or omission or alleged
omission to state a material fact, has been made by, or relates to information
supplied by, such indemnifying party or indemnified parties, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such action.  The amount paid or payable
by a party as a result of the losses, claims, damages, liabilities and expenses
referred to above shall be deemed to include any legal or other fees or
expenses reasonably incurred by such party in connection with any investigation
or proceeding.  If the allocation
provided in this paragraph (c) is not permitted by applicable law, the parties
shall contribute based upon the relevant benefits received by the Company from
the IPO on the one hand and the net proceeds received by the Holders from the
sale of Securities on the other.

The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 8(c) were determined by pro
rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred
to in the immediately preceding paragraph. 
No Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any
Person who was not guilty of such fraudulent misrepresentation.

(d)           Any Person entitled to
indemnification under this Section 8 (the “Indemnified
Party”) agrees to give prompt written notice to the indemnifying party (the
“Indemnifying Party”) after the receipt by the Indemnified Party of any
written notice of the commencement of any action, suit, proceeding or
investigation or threat thereof made in writing for which the Indemnified Party
intends to claim indemnification or contribution pursuant to this Agreement; provided,
that the failure so to notify the Indemnified Party shall not relieve the
Indemnifying Party of any liability that it may have to the Indemnifying Party
hereunder unless such failure is materially prejudicial to the Indemnifying
Party.  If notice of commencement of any
such action is given to the Indemnifying Party as above provided, the
Indemnifying Party shall be entitled to participate in and, to the extent it
may wish, to assume the defense of such action at its own expense, with counsel
chosen by it and reasonably satisfactory to such Indemnified Party.  The Indemnified Party shall have the right to
employ separate counsel in any such action and participate in the defense
thereof, but the fees and expenses of such counsel shall be paid by the
Indemnified Party unless (i) the Indemnifying Party agrees to pay the
same, (ii) the Indemnifying Party fails to assume the defense of such
action, or (iii) the named parties to any such action (including any
impleaded parties) have been advised by such counsel that either
(A) representation of such Indemnified Party and the Indemnifying Party by
the same counsel would be inappropriate under applicable standards of
professional conduct or (B) there are one or more legal defenses available
to it which are substantially different from or additional to those available
to the Indemnifying Party.  No
Indemnifying Party shall be liable for any settlement entered into without its
written consent, which consent shall not be unreasonably withheld.

(e)           The agreements contained in this
Section 8 shall survive the transfer of the Registrable Securities by any
Holder and sale of all the Registrable Securities pursuant to any

 

11

registration
statement and shall remain in full force and effect, regardless of any
investigation made by or on behalf of any Holder or such general partner or
participating or controlling Person.

9.  Certain Additional Limitations on
Registration Rights.  Notwithstanding
the other provisions of this Agreement, the Company shall not be obligated to
register the Registrable Securities of any Holder (i) if such Holder or
any underwriter of such Registrable Securities shall fail to furnish to the
Company necessary information requested in writing by the Company in respect of
the distribution of such Registrable Securities, or (ii) if such
registration involves an underwritten offering, such Registrable Securities are
not included in such underwritten offering on the same terms and conditions as
shall be applicable to the other Securities being sold through underwriters in
the registration or such Holder fails to enter into an underwriting agreement
in customary form with the underwriter or underwriters selected for such
underwritten offering.  In addition, each
Holder agrees not to effect any public sale or distribution of any Registrable
Securities or of any securities convertible into or exchangeable or exercisable
for such Registrable Securities, including a sale pursuant to Rule 144
under the Securities Act and to enter into a customary lock-up agreement with
the managing underwriter for an offering, during the 90-day period beginning on
the effective date of any Demand Registration Statement (initiated by such
Holder) or Piggy-Back Registration Statement or other underwritten offering
(initiated by the Company) (except as part of such registration), and the
Company agrees to use its reasonable best efforts to cause its directors and
executive officers to enter into a lock-up agreement of the same term, in each
case if and to the extent requested by the managing underwriter for such
offering and if the Company enters into a similar agreement.

10.  No Inconsistent Agreements.  The Company will not hereafter enter into any
agreement with respect to its securities, which is inconsistent in any material
respects with the rights granted to the Holders in this Agreement.

11.  Selection of Managing Underwriters.  In the event the Participating Demand Holders
have requested an underwritten offering, the underwriter or underwriters shall
be selected by the Company and shall be approved by the Holders of a majority
of the shares of Common Stock being so registered, which approval shall not be
unreasonably withheld or delayed, provided, (i) that all of the
representations and warranties by, and the other agreements on the part of, the
Company to and for the benefit of such underwriters shall also be made to and
for the benefit of such Holders of Registrable Securities, (ii) that any
or all of the conditions precedent to the obligations of such underwriters
under such underwriting agreement shall be conditions precedent to the
obligations of such Holders of Registrable Securities, and (iii) that no
Holder shall be required to make any representations or warranties to or
agreements with the Company or the underwriters other than representations,
warranties or agreements regarding such Holder, the Registrable Securities of
such Holder and such Holder’s intended method of distribution and any other
representations required by law or reasonably required by the underwriter.  Subject to the foregoing, all Holders
proposing to distribute Registrable Securities through such underwritten
offering shall enter into an underwriting agreement in customary form with the
underwriter or underwriters.  If any
Holder of Registrable Securities disapproves of the terms of the underwriting,
such Holder may elect to withdraw all its Registrable Securities by written
notice to the Company, the managing underwriter and the other Holders
participating in such registration.  The
securities so withdrawn shall also be withdrawn from registration.

12

12.  Miscellaneous.

(a)           Specific Performance.  The parties hereto agree that irreparable
damage would occur in the event any provision of the Agreement was not
performed in accordance with the terms hereof and that the parties hereto shall
be entitled to specific performance of the terms hereof, in addition to any
other remedy at law or in equity.

(b)           Amendments and Waivers; Assignment.  (i) 
Any provision of this Agreement may be amended or waived if, and only
if, such amendment or waiver is in writing and signed, in the case of an
amendment, by the Company and Holders of a majority of the aggregate number of
shares of Common Stock held by the Holders (a “majority in interest”), in the
case of a waiver, by the party or parties against whom the waiver is to be
effective; provided, however, that waiver by the Holders shall
require the consent of a majority in interest of the Holders.

(ii)           No failure or delay by any party in exercising any right,
power or privilege hereunder (other than a failure or delay beyond a period of
time specified herein) shall operate as a waiver thereof and no single or
partial exercise thereof shall preclude any other or further exercise thereof
or the exercise of any other right, power or privilege.  The rights and remedies herein provided shall
be cumulative and not exclusive of any rights or remedies provided by law.

(c)           Notice Generally.  All notices, request, claims, demands and
other communications hereunder shall be in writing and shall be given (and
shall be deemed to have been duly given upon receipt) by delivery in person, by
courier service, by fax or by registered or certified mail (postage prepaid,
return receipt requested) to the respective parties at the following addresses
(or at such other address for a party as shall be specified by notice given in
accordance with this Section 12(c):

(i)            If to any Holder, at its last known
address appearing on the books of the Company maintained for such purpose.

(ii)           If
to the Company, at

Lincoln Educational
Services Corporation

200 Executive Drive, Suite 540

West Orange, New Jersey 07052

Attention:  General Counsel

Facsimile:  (973) 736-1750

with a copy to:

Shearman & Sterling
LLP

599 Lexington Avenue

New York, NY 10022

Attention:  Rohan S. Weerasinghe, Esq. 

Facsimile:  (646) 848-7088

or at such other address as may be substituted by
notice given as herein provided.

 

13

(d)           Successors and Assigns; Third
Party Beneficiaries.  This Agreement
shall inure to the benefit of and be binding upon the successors and permitted
assigns of the parties hereto as hereinafter provided.  The registration rights of any Holder with
respect to any Registrable Securities shall be transferred to any Person who is
the transferee of such Registrable Securities, which transferee shall be and
become a Holder for all purposes hereof. 
All of the obligations of the Company hereunder shall survive any such
transfer.  Except as provided in Section
8, no Person other than the parties hereto and their successors and
permitted assigns is intended to be a beneficiary of this Agreement.

(e)           Headings.  The headings and subheadings in this
Agreement are included for convenience and identification only and are in no
way intended to describe, interpret, define or limit the scope, extent or
intent of this Agreement or any provision hereof.

(f)            Governing Law; Jurisdiction.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York.

(i)            Any claim, action, suit or
proceeding seeking to enforce any provision of, or based on any matter arising
out of or in connection with, this Agreement or the transactions contemplated
hereby may be heard and determined in any New York state or federal court
sitting in The City of New York, County of Manhattan, and each of the parties
hereto hereby consents to the exclusive jurisdiction of such courts (and of the
appropriate appellate courts therefrom in any such claim, action, suit or
proceeding) and irrevocably waives, to the fullest extent permitted by law, any
objection that it may now or hereafter have to the laying of venue of any such
claim, action, suit or proceeding in any such court or that any such claim,
action, suit or proceeding that is brought in any such court has been brought
in an inconvenient forum.

(ii)           Subject to applicable law, process in
any such claim, action, suit or proceeding may be served on any party anywhere
in the world, whether within or without the jurisdiction of any such
court.  Without limiting the foregoing
and subject to applicable law, each party agrees that service of process on
such party as provided in Section 12(c) shall be deemed effective service
of process on such party.  Nothing herein
shall affect the right of any party to serve legal process in any other manner
permitted by law or at equity.  WITH
RESPECT TO ANY SUCH CLAIM, ACTION, SUIT OR PROCEEDING IN ANY SUCH COURT, EACH
OF THE PARTIES IRREVOCABLY WAIVES AND RELEASES TO THE OTHER ITS RIGHT TO A
TRIAL BY JURY, AND AGREES THAT IT WILL NOT SEEK A TRIAL BY JURY IN ANY SUCH PROCEEDING.

(g)           Severability.  If any term or other provision of this
Agreement is held to be invalid, illegal or incapable of being enforced by any
rule of law, or public policy, all other conditions and provisions of this
Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions is not affected in any manner
materially adverse to any party.  Upon a
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 in a

 

14

mutually
acceptable manner in order that the transactions contemplated hereby be
consummated as originally contemplated to the fullest extent possible.

(h)           Entire Agreement.  This Agreement constitutes the entire
agreement among the parties hereto pertaining to the subject matter hereof and
supersedes all prior agreements and understandings pertaining thereto.

(i)            Cumulative Remedies.  The rights and remedies provided by this
Agreement are cumulative and the use of any one right or remedy by any party
shall not preclude or waive its right to use any or all other remedies.  Said rights and remedies are given in
addition to any other rights the parties may have by law, statute, ordinance or
otherwise.

(j)            Construction.  Each party hereto acknowledges and agrees it
has had the opportunity to draft, review and edit the language of this
Agreement and that no presumption for or against any party arising out of
drafting all or any part of this Agreement will be applied in any claim,
action, allegation of liability, arbitration, litigation or, without limitation,
any other dispute, relating to, in connection with or involving this
Agreement.  Accordingly, the parties
hereto hereby waive the benefit of any rule of law or any legal decision that
would require, in cases of uncertainty, that the language of a contract should
be interpreted most strongly against the party who drafted such language.

 

15

 

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

	
   

  	
   

  	
   

  
	
   

  	
  BACK TO SCHOOL ACQUISITION, L.L.C.

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  its Managing Member

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LINCOLN EDUCATIONAL SERVICES CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
						

 

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