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exv10w48

 

EXHIBIT 10.48

FEDERAL HOME LOAN BANK OF CINCINNATI

BLANKET SECURITY AGREEMENT

     This Blanket Security Agreement (the “Blanket Agreement”) is entered this 30th day of June,
2006, by and between NCB, FSB, a federal savings bank organized under the laws of the United States
(“Borrower”), the principle place of business is located at Hillsboro, Ohio, and the FEDERAL HOME
LOAN BANK OF CINCINNATI, a corporation organized under the federal laws of the United States of
America (the “FHLBank”).

     This Blanket Agreement is entered in consideration of (i) the agreement of FHLBank from time
to time to consider making secured Advances to Borrower, and (ii) the agreements of Borrower
contained in this Blanket Agreement. However, neither this Blanket Agreement nor any Addendum,
taken alone or together with any other FHLBank document or FHLBank’s Credit Policy, should be
deemed an absolute, irrevocable or unconditional agreement or commitment by the FHLBank to make,
amend, extend, restate, relend or replace Advances hereunder or otherwise to Borrower. FHLBank
expressly reserves the right and power in its discretion to either grant or deny any such
Advance requested or secured hereunder.

     1. DEFINITIONS. Each term used in this Blanket Agreement is defined in this Section 1
as follows.

          “Act” means the Federal Home Loan Bank Act, codified at 12 United States Code Sections 1421
through 1440, as the same may be modified from time to time, together with the regulations
implementing such act, codified at 12 Code of Federal Regulations Parts 900 through 998, as the
same may be modified from time to time.

          “Advance” means an advance of funds that FHLBank makes, extends or renews from time to time to
Borrower pursuant to the Credit Policy. For purposes of this agreement, the term “Advance” also
includes any other FHLBank extension of credit such as Letters of Credit issued on a Member’s
behalf or collateralized swaps.

          “Affiliate” means an entity that is affiliated with Borrower because (i) Borrower owns or
controls such affiliate in whole or in part, (ii) such affiliate owns or controls Borrower in whole
or in part, or (iii) such entity owns or controls both Borrower and such affiliate in whole or in
part.

          “Agricultural Mortgage Collateral” means any Collateral, whether now or hereafter acquired,
that consists of (i) a loan that the Borrower or the Pledging Affiliate reports to its primary
regulator is a “farm real estate loan,” or (ii) a promissory note that the maker secures with a
mortgage or deed of trust of real property used for agricultural purposes, together with all rights
of the holder of such note under all documents pertaining to such note, mortgage or deed of trust,
and mortgaged or conveyed property, and the proceeds, replacements, and products thereof, whether
now or hereafter acquired.

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          “Applicable Document” means any contract, agreement, lease, instrument, articles or
certificates of organization or incorporation, charter, organizational document, code of
regulations, by-law, or other writing to which FHLBank, Borrower, or any Pledging Affiliate is a
party that imposes obligations on any of them or regulates the conduct of the affairs of any of
them.

          “Applicable Law” means any of the following applicable to Borrower or any Pledging Affiliate:
law, statute, treaty, convention, rule, regulation, code, decree, judgment, ordinance, guide,
manual, order or other obligation other than an Applicable Document, pursuant to which a government
or any agency, subdivision, official, or court or tribunal thereof that regulates FHLBank,
Borrower, or any Pledging Affiliate or the activities of any of them.

          “Blanket Agreement” means this Blanket Security Agreement.

          “Blanket Mortgage Collateral” means all of the Mortgage Collateral in which Borrower and any
applicable Pledging Affiliate has (i) an interest and (ii) granted a security interest to FHLBank,
whether now or hereafter acquired, and the proceeds, replacements, and products thereof, whether
now or hereafter acquired.

          “Borrower” means the Borrower identified in the first sentence of this Blanket Agreement.

          “Collateral” means any Mortgage Collateral or Securities Collateral, or other collateral
security, whether now or hereafter acquired, in which Borrower or a Pledging Affiliate has granted
a security interest, lien or other collateral encumbrance in favor of FHLBank to secure Borrower’s
Obligations pursuant to this Blanket Agreement, any Addendum or amendment to it, or any other
agreement with FHLBank from time to time, whether now or hereafter acquired, and the proceeds,
replacements, and products thereof, whether now or hereafter acquired.

          “Collateral Maintenance Requirement” means the amount of Lendable Collateral Value of
Qualifying Collateral that FHLBank determines from time to time in accordance with the Credit
Policy is necessary to secure the amount of Advances to Borrower then outstanding and unpaid.

          “Commercial Real Estate Mortgage Collateral” means any Collateral, whether now or hereafter
acquired, that consists of a promissory note that the maker secures with a mortgage or deed of
trust on real property and that is used for retail office, industrial, or other commercial use,
together with all rights of the holder of such note under all of the documents pertaining to such
note, and mortgage or deed of trust, and mortgaged or conveyed property, and the proceeds,
replacements, and products thereof, whether now or hereafter acquired.

          “Credit Policy” means the Credit Policy that FHLBank issues to govern the making of Advances
to Members from time to time, including any documents or guides referred to or incorporated in such
policy, as FHLBank may modify such Credit Policy from time to time. Any such modification is
binding on Borrower and any Pledging Affiliate. The Supplemental Real Estate Collateral Guide is a
part of the Credit Policy.

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          “Cross Collateralized Loan” means any loan or interest therein constituting a part of Mortgage
Collateral that is secured by collateral that also secures a loan or loans or interest therein that
are not included in Mortgage Collateral. “Cross Collateralized Loan” also means a loan included in
Specific Mortgage Collateral that is secured by collateral for another loan or loans that are not
so included in Specific Mortgage Collateral or that are not Qualifying Collateral.

          “DDA” means the demand deposit account of Borrower with FHLBank.

          “Deed of Trust” means a deed of trust used to secure the obligations of an obligor on a
secured loan included in Collateral in lieu of a mortgage.

          “Event of Default” means any of the events described in Section 10 hereof.

          “FHLBank” means the Federal Home Loan Bank of Cincinnati, a corporation organized under the
federal laws of the United States of America, and for purposes of any indemnification or similar
provision under the Blanket Agreement, includes all officers, directors, employees and agents of
FHLBank.

          “Hazardous Material” means a material that, if it is released into the environment, Applicable
Laws require the owner or operator of the property at which such release occurred to remedy the
effect on the environment of such release.

          “Home Equity Line of Credit Collateral” means Collateral, whether now or hereafter acquired,
that consists of an agreement between a borrower and a lender for the lender to advance funds to
such borrower and the borrower to repay such advances, pursuant to which the borrower grants a
mortgage or deed of trust of property that is improved with one to four units, each suitable for
the residence of one family, together with all rights of the lender under all documents pertaining
to such agreement, mortgage or deed of trust, and mortgaged or conveyed property, and the proceeds,
replacements, and products thereof, whether now or hereafter acquired.

          “Junior Mortgage Collateral” means any Collateral, whether now or hereafter acquired, that
consists of a promissory note that the maker secures with a mortgage or deed of trust of real
property and that is subject to a lien inferior in priority to one or more mortgages or deeds of
trust, together with all rights of the holder of such note under all documents pertaining to such
note, mortgage or deed of trust, and mortgaged or conveyed property, and the proceeds,
replacements, and products thereof whether now or hereafter acquired.

          “Lendable Collateral Value” means the value that FHLBank determines from time to time that
Qualifying Collateral has.

          “Letter of Credit” means a letter of credit that FHLBank has issued on behalf of Borrower, for
payments of drafts on which Borrower must reimburse FHLBank.

          “Mortgage Collateral” means any Collateral, whether now or hereafter acquired, that consists
of promissory notes that the maker secures with a mortgage or deed of trust of real property that
is improved with one to four units, each suitable for the residence of one family,

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together with all rights of the holders of such notes under all documents pertaining to such
notes, mortgages or deeds of trust, and mortgaged or conveyed property, and if applicable,
Multi-family Mortgage Collateral, Agricultural Mortgage Collateral, Commercial Real Estate Mortgage
Collateral, Home Equity Line of Credit Collateral, and Junior Mortgage Collateral, participations
in any of the foregoing to the extent that the Credit Policy permits from time to time, and the
proceeds, replacements, and products thereof, whether now or hereafter acquired.

          “MPP” means FHLBank’s Mortgage Purchase Program, as FHLBank may modify it from time to time.

          “Multi-family Mortgage Collateral” means any Collateral, whether now or hereafter acquired,
that consists of a promissory note that the maker secures with a mortgage or deed of trust of real
property that is improved with five or more units, each suitable for the residence of one family,
together with all rights of the holders of such note under all documents pertaining to such note,
mortgage or deed of trust, and mortgaged or conveyed property, and if applicable, participations in
any of the foregoing to the extent that the Credit Policy permits from time to time, and the
proceeds, replacements, and products thereof, whether now or hereafter acquired.

          “Obligations” means all indebtedness and liabilities of Borrower and any Pledging Affiliate to
FHLBank, whether direct or indirect, absolute or contingent, due or to become due, now existing or
hereafter arising, including any extensions or renewals, and whether incurred alone or with others,
as maker, guarantor, endorser, or surety, plus interest thereon, and all costs of collection, legal
expenses and attorney fees that FHLBank pays or incurs in administering, collecting, or enforcing
any of such indebtedness or liabilities, or realizing on security granted in this Blanket Agreement
or otherwise. Such Obligations include without limitation the obligations of Borrower to FHLBank
under the MPP Program and the obligation of Borrower to reimburse FHLBank the amount of any drafts
on any Letter of Credit that FHLBank may honor.

          “One to Four Family Mortgage Collateral” means any Collateral, whether now or hereafter
acquired, that consists of promissory notes that the maker secures with a mortgage or deed of trust
of real property that is improved with one to four units, each suitable for the residence of one
family, together with all rights of the holders of such notes under all documents pertaining to
such notes, mortgages or deeds of trust, and mortgaged or conveyed property, participations in any
of the foregoing to the extent that the Credit Policy permits from time to time, and the proceeds,
replacements, and products thereof, whether now or hereafter acquired.

          “Pledging Affiliate” means an entity that is providing Collateral by completing and executing
a Pledging Affiliate Addendum in the form that FHLBank may specify from time to time and that is
affiliated with Borrower because (i) Borrower owns or controls such affiliate in whole or in part,
(ii) such affiliate owns or controls Borrower in whole or in part, or (iii) such entity owns or
controls both Borrower and such affiliate in whole or in part.

          “Qualifying Collateral” means Collateral that FHLBank determines in accordance with the Act
and the Credit Policy, including the underwriting, documentation, and valuation requirements
incorporated therein from time to time, must secure the repayment of Advances.

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Excluded from Qualifying Collateral, without limitation, is Collateral that Borrower or a
Pledging Affiliate has participated or Transferred to the extent that the Credit Policy does not
authorize such participation or Transfer.

          “Scorecard Validation Statistics” means any reports and underlying schedules and statistics
used to validate custom scorecard models, or vendor provided scorecards, including without
limitation, bureau scores, KS statistics, population stability statistics and reports,
characteristic analysis statistics and reports, maximum delinquency reports and distributions,
vintage analyses or other reports showing trends in scorecard predictiveness, or any other reports
or statistics used in validating the initial or ongoing predictiveness or scorecards or scoring
systems used to underwrite or service loans pledged to the FHLBank, including, without limitation,
behavioral or bankruptcy scores and models.

          “Specific Mortgage Collateral” means the Mortgage Collateral, if any, specifically identified
in any Assignment of Mortgage that Borrower or any Pledging Affiliate may have heretofore executed
and delivered or may hereafter execute and deliver to FHLBank from time to time.

          “Securities Collateral” means obligations of the United States of America, or obligations
fully guaranteed by the United States of America, or other securities (whether certificated or
uncertificated), investment property, financial assets, security entitlements, accounts or other
equity or ownership interests in any corporation, partnership, limited liability company, trust or
other entity, association or organization, including without limitation any affiliate which holds
or may hold, directly or indirectly, transferred assets of the Borrower, which obligations or
securities (i) are approved by the FHLBank as Qualifying Collateral, (ii) delivered to the
FHLBank’s possession or (at the FHLBank’s sole discretion) are otherwise in the FHLBank’s control
or subject to an acceptable negative pledge, (iii) are specifically identified in any Assignment of
Securities that Borrower or any Pledging Affiliate may heretofore have executed and delivered or
may hereafter execute and deliver to FHLBank from time to time, and (iv) are to be treated as
Collateral (whether hereunder or pursuant to other agreements with FHLBank), and all replacements
therefor and proceeds thereof (hereinafter called “Securities Collateral”).

          “Status Report” means specific, pledged loan level information that FHLBank may request from
time to time. Such information may include, but is not limited to, information identifying the
borrower, account and loan numbers, servicing information, principal, interest, tax, and insurance
payment status, payment or delinquency histories since loan origination, appraisal or underlying
collateral valuation sources, loan to value, debt to income or housing ratios and the components
used in the calculation thereof, the existence or requirement to maintain single premium credit
life insurance, the existence of prepayment penalties, loan term data including payment amounts,
interest rates, annual percentage rates, margins, caps, floors, balloon amounts, balloon dates,
maturities, amortization periods, HUD-1 Statements or any specific information reflected on those
Statements, FICO scores, bureau scores, or internal credit scoring model scores or results.

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          “Supplemental Collateral” means Agricultural Mortgage Collateral, Commercial Real Estate
Mortgage Collateral, Home Equity Line of Credit Collateral, and Junior Mortgage Collateral.

          “Supplemental Real Estate Collateral Guide” means FHLBank’s Supplemental Real Estate
Collateral Program Policies and Procedures, as FHLBank may modify it from time to time. Any such
modification is binding on Borrower and any Pledging Affiliate.

          “Transfer” means to sell, grant, mortgage, pledge, assign, lease, grant a security interest in
or lien on, participate or otherwise transfer, directly or indirectly, by operation of law, or
otherwise, any interest in any item of property, whether real or personal.

          “UCC” means the Uniform Commercial Code in effect in Ohio from time to time, unless the
Uniform Commercial Code in effect in Ohio directs the application of the law of a different
jurisdiction to the perfection or effect of perfection or non-perfection of a security interest in
personal property. In the latter event, the “UCC” means the Uniform Commercial Code then in effect
in such other jurisdiction.

     2. GRANT OF SECURITY INTEREST. Borrower grants and shall cause each Pledging
Affiliate to grant to FHLBank, its successors and assigns from time to time a security interest in
the Collateral identified in Exhibit A to this Blanket Agreement and/or any Addendum to it, whether
now existing or that Borrower or any Pledging Affiliate hereafter attaches, in order to secure the
performance of the Obligations of Borrower and each Pledging Affiliate from time to time for
purposes of this Blanket Agreement. As to any rights of FHLBank as a secured party hereunder,
FHLBank shall be deemed to act as the exclusive security agent and attorney-in-fact of Borrower and
any Pledging Affiliate, as further specified in Section 14 below. Borrower, any Pledging Affiliate,
and FHLBank may modify from time to time the Collateral in which Borrower and any such Pledging
Affiliate have granted a security interest to FHLBank by completing and executing a Blanket
Security Agreement Amendment, in the form that FHLBank may specify from time to time.

     3. REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants, and shall cause
each Pledging Affiliate to represent and warrant, and each Pledging Affiliate from time to time
represents and warrants, in each case to FHLBank effective as of the Effective Date and each time
that Borrower obtains an Advance, as follows:

          (a) Borrower and each Pledging Affiliate from time to time is duly organized and validly
existing under the law governing its organization.

          (b) No Applicable Law or Applicable Document limits the power of Borrower or any Pledging
Affiliate to enter this Agreement or perform its obligations hereunder, and the execution of this
Agreement by Borrower and/or any Pledging Affiliate, will not violate or result in a default under
any Applicable Law or Applicable Document.

          (c) Borrower and each Pledging Affiliate have full power and authority to enter into this
Blanket Agreement and to perform their respective obligations hereunder.

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          (d) This Blanket Agreement is the legal, valid, and binding obligation of Borrower and each
Pledging Affiliate.

          (e) The execution of this Agreement and the performance of their respective obligations
hereunder by Borrower and each Pledging Affiliate has been duly authorized.

          (f) Neither Borrower nor any Pledging Affiliate need obtain any security exchange’s consent or
approval to enter into this Blanket Agreement or perform any of its obligations hereunder.

          (g) No securities or “blue sky” law requires the registration of any Collateral prior to or in
connection with the sale of such Collateral.

          (h) Borrower is either a member in good standing of FHLBank or a nonmember that the Act
authorizes to obtain or hold advances.

          (i) Borrower and each Pledging Affiliate holds all of the right, title, and interest in, to,
and under the Collateral in which it has granted a security interest to FHLBank, and such interest
is free and clear of all claims, security interests, liens, participation interests, rights of set
off, or any other encumbrances or legal or beneficial interests whatsoever other than (i) full or
partial participations in favor of Pledging Affiliates of Borrower that have granted a security
interest in such participations to FHLBank, and (ii) the rights of other holders of security
interests with which FHLBank has entered into a written agreement governing the relative priorities
of the security interests of FHLBank and such other party in such Collateral. The title to all
such Collateral (other than that participated in whole or in part to an Affiliate) is and remains
marketable.

          (j) Borrower and each Pledging Affiliate has the right and authority to grant a security
interest in the Collateral provided in this Blanket Agreement and otherwise to perform their
respective obligations under this Blanket Agreement.

          (k) Each document that Borrower or any Pledging Affiliate has given or may give FHLBank from
time to time (i) in connection with obtaining Advances, (ii) pertinent to Collateral, or (iii)
otherwise pursuant to this Blanket Agreement, including financial statements, is and remains true
and complete and does not fail to include information that prevents the same from being misleading.

          (l) The information that Borrower and each Pledging Affiliate has or may from time to time
give to (i) FHLBank or (ii) the entity or entities having regulatory authority over FHLBank,
Borrower or any Pledging Affiliate, including (without limitation) in connection with the
Collateral and any financial statement, is true and complete.

          (m) No release of a Hazardous Material has occurred at any property securing any item of
Collateral, the effect of which on the environment Applicable Laws would require the owner or
operator of such property to remedy.

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          (n) The Qualifying Collateral in which either Borrower or any Pledging Affiliate has granted
to FHLBank a security interest has a Lendable Collateral Value equal to or greater than the
Collateral Maintenance Requirement.

          (o) Each document that evidences Mortgage Collateral is genuine and in all respects what it
appears to be.

          (p) The obligations of each borrower under each mortgage loan included in Mortgage Collateral
are valid and enforceable.

          (q) The amount that Borrower or the applicable Pledging Affiliate represents to FHLBank that
the borrower under each mortgage loan owes on such mortgage loan included in Mortgage Collateral is
the correct amount unconditionally due and owing, and such borrower does not dispute that such
borrower owes such amount.

          (r) The lien of each mortgage included in Mortgage Collateral (other than those liens created
under the Home Equity Line of Credit Mortgage Collateral and Junior Mortgage Collateral) is a first
and best lien against the property that it encumbers, except for the lien of nondelinquent taxes.

     4. AFFIRMATIVE COVENANTS. Borrower shall, Borrower shall cause each Pledging
Affiliate to, and each Pledging Affiliate shall, do the following:

          (a) furnish FHLBank from time to time evidence satisfactory to FHLBank of the authority of
representatives of Borrower or any Pledging Affiliate to obtain, amend, or renew Advances or
specify that Collateral in which Borrower or Pledging Affiliate may grant a security interest to
FHLBank;

          (b) deliver to FHLBank such evidence as it may request of Borrower’s eligibility to obtain
Advances, and its interest or the applicable Pledging Affiliate’s interest in the Collateral;

          (c) permit FHLBank to enter facilities at which the Collateral or evidence of the Collateral
is located and afford FHLBank working space in such facilities to inspect the Collateral and all
documents, tangible or electronic, related to or evidencing such Collateral;

          (d) permit FHLBank to copy any document, tangible or electronic, evidencing, relating or
pertaining to the Collateral;

          (e) cooperate in any inspection or audit of any document, electronic or tangible, evidencing
or relating or pertaining to Collateral that FHLBank may deem necessary or appropriate from time to
time;

          (f) cause any other party acquiring an interest in Collateral to satisfy the obligations of
each Pledging Affiliate and Borrower related to such Collateral under this Blanket Agreement;

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          (g) collectively maintain Qualifying Collateral with a Lendable Collateral Value equal to or
greater than the Collateral Maintenance Requirement;

          (h) pay all taxes, assessments and any other governmental charges levied, assessed, or imposed
upon any Collateral and any constituent property thereunder;

          (i) inform FHLBank in writing promptly after any change in the location of Borrower’s or any
Pledging Affiliate’s chief executive office, jurisdiction of organization or charter situs;

          (j) inform FHLBank promptly of any occurrence or pending occurrence that renders or may make
Borrower ineligible for membership in the FHLBank;

          (k) inform FHLBank promptly of any merger, consolidation, or sale of substantially all the
stock or assets of Borrower or any Pledging Affiliate, or the acquisition by Borrower or any
Pledging Affiliate of substantially all of the stock or assets of another entity;

          (l) inform FHLBank promptly of any change in (i) the physical location of any Collateral, (ii)
any servicer of any Mortgage Collateral, or (iii) any securities intermediary holding any
Securities Collateral;

          (m) respond promptly, accurately, and completely to any FHLBank inquiry concerning (i) the
location of the chief executive office, jurisdiction of organization, or charter location of
Borrower or any Pledging Affiliate, (ii) the physical location of any Collateral, (iii) the
identity and other information relating to any servicer of any Mortgage Collateral, or (iv) the
identity and any information relating to any securities intermediary holding Securities Collateral;

          (n) pay the costs that FHLBank incurs from time to time in auditing and verifying or having
third parties verify or audit on its behalf (i) the financial condition of Borrower and each
Pledging Affiliate, and (ii) the existence of sufficient Qualifying Collateral with a Lendable
Collateral Value equal to or greater than the Collateral Maintenance Requirement to secure Advances
to Borrower outstanding from time to time;

          (o) if FHLBank notifies Borrower that the Lendable Collateral Value of Qualifying Collateral
is less than the Collateral Maintenance Requirement, either (i) immediately grant FHLBank a
security interest in additional Qualifying Collateral necessary to increase the Lendable Collateral
Value of Qualifying Collateral to the Collateral Maintenance Requirement, or (ii) repay so much of
the Advances or other extensions of credit or reduce the stated amounts of outstanding Letters of
Credit as may be necessary to thereafter make the Lendable Collateral Value of Qualifying
Collateral equal to or less than the Collateral Maintenance Requirement;

          (p) comply in all respects with the Credit Policy, as FHLBank may amend it from time to time;

          (q) deliver to FHLBank such evidence of Borrower’s or Pledging Affiliate’s interest in the
Collateral and its availability for use as Collateral as FHLBank may from time to time request;

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          (r) provide to FHLBank upon FHLBank’s request, statements and information with respect to the
business and financial status of Borrower and each Pledging Affiliate, including profit and loss
reports, income statements, balance sheets, and other financial information, all prepared in
accordance with generally accepted accounting principles, and with such details and formats as
FHLBank may require from time to time;

          (s) if any mortgage loan included in Mortgage Collateral or in a pool backing any Securities
Collateral has been originated or serviced in violation of any Applicable Law, including any
applicable predatory lending, abusive loan practice, or high interest loan law, notify FHLBank of
such violation promptly upon discovering such violation, and if the Credit Policy requires that any
such Mortgage Collateral must be Qualifying Collateral in order to secure the amount of Advances,
the stated amount of Letters of Credit, or any other extensions of credit then outstanding, and
FHLBank so directs, (i) grant a security interest in or deliver a substitute Collateral that will
constitute Qualifying Collateral to replace the affected security or mortgage loan, or (ii) reduce
the amount of Advances, stated amounts of Letters of Credit, or other extensions of credit then
outstanding;

          (t) if FHLBank requires, make, execute, record, and deliver to FHLBank additional agreements,
financing statements, notices, assignments, listings, powers, and other documents in connection
with all or a part of the Collateral;

          (u) concurrently with the delivery of Collateral to FHLBank that FHLBank requires or within
fourteen (14) days after FHLBank requests, deliver to FHLBank a Status Report specifying and
describing the Collateral with accompanying schedules in a format and with such details that
FHLBank may prescribe from time to time and provide such information that FHLBank requires to value
such Collateral;

          (v) furnish annually and at such other times as FHLBank may request, or cause Borrower’s
external auditor or other third party consulting firm that FHLBank has approved to furnish, an
audit report, in such detail as FHLBank from time to time may specify with respect to Collateral,
Qualifying Collateral, compliance with applicable Collateral Maintenance Requirements, and
compliance with the Credit Policy, that Borrower’s external auditor or such third party has
prepared in accordance with generally accepted auditing standards or generally accepted accounting
principles, as applicable;

          (w) furnish within fourteen (14) days after FHLBank’s request any Scorecard Validation
information that Borrower or any Pledging Affiliate has on file.

          (x) whenever the authority of the persons authorized on behalf of Borrower or any Pledging
Affiliate to obtain Advances, grant a security interest in Collateral, or execute or modify this
Blanket Agreement changes, promptly notify FHLBank of such change and give FHLBank a copy of the
most current resolution or resolutions so authorizing such representatives or a list of the names
and specimen signatures of such authorized representatives that an authorized representative of
Borrower or such Pledging Affiliate certifies to FHLBank is accurate.

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     5. NEGATIVE COVENANTS. Borrower shall not, and Borrower shall not permit any Pledging
Affiliate to:

          (a) except to the extent and in the manner authorized in Section 7 hereof and in the February
26, 2004 Addendum referenced in Section 17 hereof, Transfer any Collateral or any interest therein;

          (b) suffer to exist against Borrower or any Pledging Affiliate or the successors and assigns
of either, including (without limitation) FHLBank, any right of set off that any person or entity
may exercise under or related to any of the Collateral; or

          (c) transfer possession of the Collateral to any party other than a Pledging Affiliate,
FHLBank, or a collateral agent designated by FHLBank.

     6. SECURITIES COLLATERAL.

          (a) If the Collateral includes Securities Collateral, Borrower shall grant or cause one or
more Obligor Entities to grant a security interest in such Securities Collateral having a fair
market value or a principal dollar amount acceptable to FHLBank.

          (b) Borrower shall, and Borrower shall cause each Pledging Affiliate granting FHLBank a
security interest in Securities Collateral to, endorse in favor of FHLBank (in form acceptable to
FHLBank) all Securities Collateral that consists of certificated securities.

          (c) FHLBank shall be an entitlement holder and in sole control of all Securities Collateral
for purposes of Article 8 of the UCC. FHLBank shall have full power under Article 8 of the UCC to
hold and dispose of such Securities Collateral as financial assets, including the full power to
exercise voting rights and receive any proceeds or income resulting from stock splits, stock
dividends, cash dividends, or otherwise.

          (d) Borrower shall, and Borrower shall cause each Pledging Affiliate granting a security
interest in Securities Collateral to, act (and consent to such further acts) as FHLBank may request
to (i) establish and maintain FHLBank’s control over any Securities Collateral as provided in
Section 8-106 of the UCC, and (ii) obtain the agreement of (A) the issuer of any Securities
Collateral to comply with FHLBank’s instructions without any further consent of Borrower, and (B)
any securities intermediary holding Securities Collateral to comply with FHLBank’s entitlement
orders without the further consent of Borrower.

          (e) While any Event of Default is continuing and unless waived by FHLBank, Borrower or
Pledging Affiliate, as the case may be, may (i) collect and retain any interest or principal
payments, dividends, or other distributions that the issuer of such Securities Collateral or any
securities intermediary holding such Securities Collateral may distribute, and (ii) apply any such
principal payments, dividends, and other distributions that FHLBank collects to the principal or
interest or both of the Obligations in whatever manner or order as FHLBank in its sole discretion
may elect.

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     7. MORTGAGE COLLATERAL.

          (a) Except to the extent that FHLBank directs otherwise, Borrower and each Pledging Affiliate
that has granted a security interest in Mortgage Collateral may retain possession of the same for
purposes of servicing, collecting, and enforcing such Mortgage Collateral. Borrower and each
Pledging Affiliate shall hold such Mortgage Collateral and the proceeds of and collections from
such Mortgage Collateral in trust for FHLBank’s security and benefit. Borrower shall, and shall
cause each Pledging Affiliate to, comply with all directions that FHLBank gives pursuant to this
Blanket Agreement. Except to the extent that FHLBank directs otherwise or this Blanket Agreement
otherwise provides, Borrower and each Pledging Affiliate that has granted a security interest in
Mortgage Collateral may in the ordinary course of its business (i) retain all collections from
Mortgage Collateral, (ii) release mortgages included in Mortgage Collateral, (iii) retain all
collections from Mortgage Collateral, and act to collect delinquent payments due under Mortgage
Collateral, including exercising the remedy of foreclosure. Neither Borrower nor any Pledging
Affiliate need disclose the interest of FHLBank in such Mortgage Collateral while so acting.

          (b) FHLBank from time to time may direct Borrower and any Pledging Affiliate that has granted
a Security interest in Mortgage Collateral to (i) segregate the documents evidencing or securing
each mortgage loan that constitutes a part of Mortgage Collateral in file folders, labeled with the
name of the borrower and/or number used to identify the loan, from the documents evidencing or
securing the other mortgage loans that constitute Mortgage Collateral, to mark such folders and
documents as Mortgage Collateral in which FHLBank has a security interest, (ii) segregate
physically all such Mortgage Collateral from mortgage loans that do not constitute Mortgage
Collateral, (iii) segregate physically Mortgage Collateral from any other assets in Borrower’s or
such Pledging Affiliate’s possession, and (iv) segregate Mortgage Collateral physically from loan
documents that are not part of Mortgage Collateral within a collateral vault or in a separate
collateral vault.

          (c) FHLBank from time to time may direct Borrower and any Pledging Affiliate possessing
Mortgage Collateral to produce (i) lists of (A) the mortgage loans included in Mortgage Collateral
and (B) the documents constituting or pertaining to them, whether paper or electronic, and (ii)
reports containing information pertaining to the same in such detail that FHLBank may require.
Such information may include details of loan structure, terms of loans, and underwriting. Such
documents shall include the following: ancillary security agreements, policies and certificates of
insurance or guarantees, rent assignments, FHA mortgage insurance or VA loan guarantee
certificates, title insurance policies, evidence of recordation, applications, underwriting
materials, surveys, appraisals, approvals, permits, notices, opinions of counsel, and loan
servicing data.

          (d) FHLBank may from time to time direct Borrower and any Pledging Affiliate that has granted
a security interest in Mortgage Collateral to endorse in form acceptable to FHLBank, including
endorsement in blank if FHLBank so directs, all promissory notes included in Mortgage Collateral
in favor of FHLBank and any collateral agent that FHLBank may designate.

12

 

          (e) FHLBank may from time to time direct Borrower and any Pledging Affiliate that has granted
a security interest in Mortgage Collateral to deliver physical possession of such Mortgage
Collateral, including any participation certificates or related documents, to FHLBank or a
collateral agent designated by FHLBank.

          (f) FHLBank may from time to time direct Borrower and any Pledging Affiliate that has granted
a security interest in Mortgage Collateral to (i) pay immediately to FHLBank any and all
collections from Mortgage Collateral, (ii) deposit in an account designated by FHLBank from time to
time all collections, including checks, drafts, cash, and other remittances of payment on Mortgage
Collateral, from Mortgage Collateral, and (iii) to direct the obligors on mortgage loans included
in Mortgage Collateral to remit payments due under such Mortgage Collateral to FHLBank or to a
collateral agent or depository designated by FHLBank from time to time. FHLBank may apply all
amounts that it receives as collections or proceeds of Mortgage Collateral to principal and
interest of the Obligations, in whatever manner or order FHLBank in its sole discretion may elect.

          (g) FHLBank may from time to time direct Borrower and any Pledging Affiliate that has granted
a security interest in Mortgage Collateral to assign the mortgages included in such Mortgage
Collateral to FHLBank, a collateral agent designated by FHLBank or MERS, or to notify MERS of the
assignment of such Mortgage Collateral to FHLBank or such collateral agent.

          (h) With regard to Specific Mortgage Collateral and, to the extent that FHLBank shall direct,
Blanket Mortgage Collateral, Borrower shall, and shall cause any Pledging Affiliate that has
granted a security interest in Mortgage Collateral, to promptly notify FHLBank if any of the
following occur:

               (i) payment of the remaining principal balance of a mortgage loan;

               (ii) payment in full of a mortgage loan occurs; or

               (iii) whenever (A) casualty damage to any building encumbered by a mortgage securing a
mortgage loan decreases the appraised value of such building twenty-five percent (25%) or more,
and (B) such damage cannot be repaired promptly.

          (i) Borrower or any Pledging Affiliate that has granted a security interest in Mortgage
Collateral may Transfer Mortgage Collateral to an Affiliate of Borrower that is a Pledging
Affiliate provided that Borrower or such Pledging Affiliate first notifies FHLBank in writing of
such Transfer.

          (j) Borrower and any Pledging Affiliate that has granted a security interest in Mortgage
Collateral may Transfer Mortgage Collateral to any person or entity that is not a Pledging
Affiliate provided that FHLBank (i) first approves such Transfer in writing, (ii) is otherwise
reasonably deemed to have approved such Transfer, or (iii) as further specified below:

If FHLBank has not directed delivery of the physical possession of Mortgage Collateral to FHLBank
or its designee or notified Borrower in writing that Borrower or any Pledging Affiliate must obtain
FHLBank’s written consent prior to effecting a Transfer of any loans included in

13

 

Mortgage Collateral, Borrower or a Pledging Affiliate may Transfer Mortgage Collateral, as long as
following such Transfer, the Qualifying Collateral has a Lendable Collateral Value equal to or
greater than the Collateral Maintenance Requirement. In such event, (A) FHLBank shall be deemed to
have approved such Transfer, and (B) Borrower or a Pledging Affiliate, as the case may be, need not
notify FHLBank prior to effecting such Transfer.

          (k) Borrower shall, and shall cause each Pledging Affiliate to insure that (i) “all risk”
property insurance covers any building or other property securing any obligation included in
Mortgage Collateral in an amount equal to the replacement cost of such building, (ii) such other
insurance as lenders in the vicinity of such building customarily require covers such building,
(iii) all such insurance includes Borrower or the Pledging Affiliate, as the case may be, its
successors and assigns, as loss payee under a standard mortgagee endorsement, and (iv) if FHLBank
so directs, such insurance shall provide that the insurer may not cancel it without at least ten
(10) days prior written notice to FHLBank. Borrower or any Pledging Affiliate may satisfy the
foregoing insurance requirement with a blanket insurance policy containing such deductibles, limits
of liability as FHLBank may approve in writing in advance and issued by an insurer as FHLBank may
approve in writing in advance. Any insurer issuing such insurance must satisfy the standards that
FHLBank may establish from time to time for such insurers. FHLBank may direct from time to time
Borrower and any Pledging Affiliate to physically deliver the originals of such insurance to
FHLBank or a collateral agent designated by FHLBank. If any such insurance required by this
subsection lapses, FHLBank may obtain such insurance in its favor at Borrower’s expense and as an
additional Obligation hereunder.

          (l) Borrower shall, and shall cause each Pledging Affiliate to pay any fees or expenses that
FHLBank incurs in connection with reviewing, acquiring, evidencing, protecting, perfecting,
evaluating or realizing on its security interest in Mortgage Collateral, including (without
limitation) insurance premiums and the fees of attorneys, accountants, evaluation consultants,
recording offices and collateral agents.

          (m) Borrower shall, and shall cause each Pledging Affiliate to originate and service all loans
included in Mortgage Collateral in accordance with all Applicable Laws, including without
limitation those relating to predatory or high cost lending or abusive loan practices.

          (n) Borrower shall, and shall cause each Pledging Affiliate to enforce the payment provisions
of all mortgage loans included in Mortgage Collateral, including collecting all amounts specified
thereunder when due.

     8. PAYMENT. Borrower shall, and shall cause each Pledging Affiliate to, pay FHLBank
any and all costs that FHLBank may incur in exercising its rights under this Agreement or entering
this Agreement, including reasonable attorney fees. Such costs may include those related to the
receipt, holding, redelivery, and reassignment of Collateral, recording fees, and the expenses and
disbursements of any custodian, consultant, or appraiser or otherwise as noted in Section 7 above.
If any payment is due to FHLBank pursuant to this Agreement, (i) FHLBank may debit Borrower’s DDA
to satisfy such payments and (ii) Borrower may set off such amount that is due to FHLBank against
any amount whatsoever that FHLBank may owe

14

 

Borrower or any Pledging Affiliate (including, without limitation, proceeds of the repurchase
of FHLBank stock owned by such Borrower or Pledging Affiliate).

     9. DESTRUCTION OF NOTES; LOST NOTES. (a) If Borrower, any Pledging Affiliate,
or any holder has destroyed any promissory note or other document that constitutes a part of
Mortgage Collateral or does so in the future, Borrower shall, and shall cause each Pledging
Affiliate to, notify FHLBank of such destruction. No Mortgage Collateral with respect to which any
holder of the note or any other document that comprises or represents such Collateral, including
Borrower or any Pledging Affiliate, may constitute Qualifying Collateral unless FHLBank approves
such Mortgage Collateral as Qualifying Collateral. Borrower shall not and shall not permit its
Pledging Affiliates to destroy any notes or other documents included in Mortgage Collateral with a
view to substituting electronic images for such documents unless FHLBank shall have approved the
same in writing in advance. FHLBank may elect to treat any such Mortgage Collateral as Collateral
that is not Qualifying Collateral or impose on such Collateral a higher Collateral Maintenance
Requirement than similar Mortgage Collateral with respect to which such notes or other documents
comprising or representing it have not been destroyed.

     (b) If Borrower or any Pledging Affiliate has lost any note or other document that constitutes
a part of Mortgage Collateral, Borrower or such Pledging Affiliate shall provide FHLBank an
affidavit satisfactory to FHLBank concerning the circumstances of such loss.

     10. INDEMNITY. Borrower shall, and shall cause each Pledging Affiliate, to indemnify
FHLBank, defend with counsel acceptable to FHLBank, and hold FHLBank harmless from and against all
losses, damages, claims, causes of action, liabilities, penalties, fines, costs, and expenses,
including reasonable attorney fees and litigation expenses, that FHLBank suffers, pays, or incurs
as a result of any of the following:

               (i) the origination of any mortgage loan included in Mortgage Collateral that has resulted in
whole or in part from violations of Applicable Laws, including (without limitation) those
governing such origination, any “predatory lending” laws, or any such mortgage loan otherwise does
not comply in any other respect with Applicable Laws;

               (ii) Applicable Laws impose liability on FHLBank as a result of its holding a security
interest on or becoming the owner of any item of Mortgage Collateral, including (without
limitation) any liability related to a release of a Hazardous Material at property that is
security for any part of the Mortgage Collateral;

               (iii) FHLBank’s exercise and/or enforcement of its rights under this Agreement, except in the
event that a court having jurisdiction finally determines that such an exercise and/or enforcement
was in bad faith or in wilful violation of applicable law

               (iv) Borrower’s or any Pledging Affiliate’s failure to perform any of its obligations
hereunder when due;

               (v) Any of Borrower’s or Pledging Affiliate’s representations or warranties are untrue as of
the time made or deemed made; or

15

 

               (vi) Borrower’s or any Pledging Affiliate’s loss or destruction of any document that is a
part of Mortgage Collateral, including without limitation, any promissory note.

     11. DEFAULT. Any one or more of the following shall be an Event of Default under this
Agreement:

               (i) failure of Borrower or any Pledging Affiliate to pay or perform any Obligation when due;

               (ii) Any representation or warranty of Borrower or any Pledging Affiliate to FHLBank is
untrue at the time made or deemed made and FHLBank deems such representation or warranty material;

               (iii) Borrower or any Pledging Affiliate fail to furnish promptly after FHLBank’s request
financial information or information related to the Collateral, to inspect any financial records
or documents pertaining to the Collateral, or to comply promptly with any direction that FHLBank
gives pursuant to this Blanket Agreement,

               (iv) failure of Qualifying Collateral to have a Lendable Collateral Value equal to or more
than the current Collateral Maintenance Requirement that the Credit Policy requires;

               (v) failure of Borrower or any Pledging Affiliate to perform any other obligation under this
Blanket Agreement within ten (10) days after FHLBank gives notice of the need to perform the same;

               (vi) an injunction or attachment issues against any part of the property owned by Borrower or
any Pledging Affiliate which FHLBank considers materially adverse to Borrower or such Pledging
Affiliate’s property;

               (vii) a receiver, conservator, or liquidator is appointed for any part of the property of
Borrower or any Pledging Affiliate, or a supervisory authority, receiver, or conservator assumes
management of any part of the business of Borrower or any Pledging Affiliate;

               (viii) Borrower or any Pledging Affiliate commences any of the following or any of the
following is commenced against Borrower or any Pledging Affiliate: proceedings in bankruptcy,
arrangement, reorganization, receivership, conservatorship, assignment for the benefit of
creditors, composition, or other similar laws or procedures for the relief of debtors;

               (ix) Borrower’s membership in FHLBank or its eligibility to borrow Advances as a nonmember
state housing finance agency ceases for any reason;

               (x) FHLBank notifies Borrower that a change in the condition or business or other affairs of
Borrower or any Pledging Affiliate, financial or otherwise, has

16

 

occurred that FHLBank considers to materially impair Borrower’s financial or business status
or FHLBank’s security or increases its risk; or

               (xi) FHLBank in good faith deems itself insecure and so notifies Borrower.

     12. REMEDIES.

          (a) Upon the occurrence of an Event of Default, FHLBank may exercise all or one or more of the
following remedies:

               (i) without notice to or demand of Borrower or any Pledging Affiliate, declare all
Obligations immediately due and payable, regardless of the other payment provisions applying to
such Obligations;

               (ii) exercise any remedy available to FHLBank provided in this Blanket Agreement, the Credit
Policy, the UCC, at law, or in equity, including those rights described in Sections 6 and 7
hereof;

               (iii) direct Borrower to, and Borrower shall dissolve or cause the dissolution of any
Pledging Affiliate and the distribution of the assets of such Pledging Affiliate to Borrower;

               (iv) sell the Collateral at public or private sale and distribute the proceeds of sale to pay
the Obligations in whatever manner and order of priority FHLBank in its sole discretion may elect;
in connection with any private sale, FHLBank may do those things necessary or appropriate to
comply with applicable securities laws, including (without limitation) a sale or private sale to
the highest of two or more bidders who can qualify as buyers in private placements;

               (v) purchase the Collateral at any such public or private sale and pay such purchase price by
declaring Obligations equal to such purchase price discharged;

               (vi) pending the exercise of any other remedy, FHLBank may liquidate the Collateral or
continue to exercise control over the Collateral as if FHLBank owned it; or

               (vii) as Borrower’s or Pledging Affiliate’s attorney in fact, in Borrower’s name, and on
Borrower’s behalf, sell, assign, collect, compromise, and release all or any part of the
Collateral as fully as Borrower or any Pledging Affiliate could acting on its own behalf; or

               (viii) at FHLBank’s option, advance funds or do any other thing necessary or appropriate to
cure such Event of Default.

          (b) If following the exercise of such remedies, any Obligations remain unsatisfied, Borrower
and Pledging Affiliate shall be liable for any such deficiency. Borrower shall, and shall cause
each Pledging Affiliate to, waive any claims for damages resulting from FHLBank’s exercise of any
such remedy and not to assert any such claims.

17

 

          (c) FHLBank may satisfy any reasonable notice requirement that Applicable Law may impose on
sale of the Collateral by mailing such notice at least ten (10) days prior to such sale.

          (d) FHLBank shall not be liable to Borrower, any Pledging Affiliate, or any third party for
any damages resulting from FHLBank’s exercise or failure to exercise any of its remedies hereunder
or for any liabilities or obligations of Borrower or any Pledging Affiliate in connection
therewith, including any of the same under Borrower’s or any Pledging Affiliate’s contracts.
FHLBank need not do anything to preserve rights under Mortgage Collateral, send notices, perform
services, or take any action to manage any Collateral.

          (e) Each right, power and remedy of FHLBank hereunder shall be cumulative, concurrent, and in
addition to each and every other right, power, and remedy hereunder, at law, or in equity, and
shall be deemed exercised by an irrevocable power of attorney as further specified in Section 15
below. FHLBank’s exercise of any one of such rights, powers, or remedies shall not preclude the
simultaneous or later exercise of any other such right, power, or remedy.

     13. WAIVERS; CONTINUED LIABILITY. FHLBank shall not be deemed to have waived any of
its rights in this Blanket Agreement or to the Collateral unless FHLBank shall have made such
waiver in a writing that FHLBank has signed. No such waiver shall operate as a waiver of any other
default or of the same default on a subsequent occasion. No (i) renewal or extension of time of
payment of the Obligations at any rate of interest, (ii) release, surrender, exchange or
modification of the Collateral, (iii) release of any person primarily or secondarily liable on the
Obligations (including any maker, endorser, guarantor or surety), (iv) delay in enforcement of
payment of the Obligations, (v) delay, omission or forbearance in exercising any right or power
with respect to the Obligations, the Collateral, or this Blanket Agreement shall affect the
liability of the Borrower or any Pledging Affiliate to the FHLBank.

     14. DURATION. The term of this Blanket Agreement shall commence on the date hereof
and end on the date when the Borrower has paid in full all of the Obligations secured hereby, and
either: (i) FHLBank gives written notice to Borrower that FHLBank will make no further Advances to
Borrower, Borrower has no further servicing obligations under the MPP to FHLBank and FHLBank has
redeemed Borrower’s stock in FHLBank, or (ii) the Borrower gives written notice to the FHLBank that
Borrower does not intend to apply for further Advances, Borrower has no further servicing
obligations under the MPP to FHLBank and FHLBank has redeemed Borrower’s stock in FHLBank. Until
such termination, this Agreement shall be a continuing one. After such termination any liabilities
hereunder of the Borrower to FHLBank not satisfied prior to such termination shall survive and
remain in full force and effect until satisfied.

     15. ATTORNEY-IN-FACT. Borrower hereby appoints FHLBank its irrevocable
attorney-in-fact, coupled with an interest, with full power of substitution, in its name or
otherwise, but at the Borrower’s sole cost and expense to (i) transfer any shares of stock or
Securities Collateral in which FHLBank has a security interest into the name of FHLBank or its
designee or assignee, (ii) endorse on behalf of Borrower or any Pledging Affiliate any promissory
notes or other instruments in which Borrower or any Pledging Affiliate granted a

18

 

security interest to FHLBank, (iii) execute and/or record such documents and instruments as
FHLBank, in its sole judgment, deems necessary or appropriate to further evidence, perfect, or
effect a transfer of the security interest granted to the FHLBank herein or otherwise, (iv) notify
obligors on any item of Collateral to make payment directly to FHLBank or its designee, (v) enter
into any extension, compromise, settlement, release, renewal, or other agreement, (vi) take control
of proceeds of Collateral and apply them to the principal or interest of Obligations in such manner
or order as FHLBank in its sole discretion may elect, and (vii) record this Blanket Agreement as a
power of attorney where the FHLBank deems appropriate.

     16. NOTICE. (a) FHLBank shall give any written notice, approval, or direction that
this Blanket Agreement provides that FHLBank shall give to Borrower or any Pledging Affiliate by:
(i) hand delivery, regular first class mail, or any other form of physical delivery, or (ii)
facsimile or e-mail, whether or not receipt of such facsimile or e-mail is confirmed with the
Borrower or a follow-up hard copy is mailed or otherwise physically delivered to the Borrower.

          (b) Borrower and any Pledging Affiliate shall give any written notice that this Blanket
Agreement provides for Borrower or Pledging Affiliate by: (i) registered or certified mail
(postage prepaid, return receipt requested) or some other form of delivery whereby receipt is
confirmed, or (ii) facsimile or e-mail, but only if Borrower or Pledging Affiliate confirms the
delivery of a follow-up hard copy to the FHLBank by the means specified in subsection (b)(i) of
this Section 16.

     17. GENERAL. The Act and the Laws of the State of Ohio shall govern all rights and
liabilities hereunder, except that only the Act shall govern eligibility for Advances and the rate
of interest that FHLBank assesses on Advances or other Obligations. This Agreement shall inure to
the benefit and bind the FHLBank, Borrower, each Pledging Affiliate and their respective successors
and assigns. Neither Borrower nor Pledging Affiliate may assign any of its rights hereunder or
delegate the performance of its duties without FHLBank’s prior written approval. Any provision
that any law or judicial ruling may limit or render unenforceable in whole or in part shall not
affect the validity or enforcement of any other part of such provision or any of the other
provisions of this Blanket Agreement.

     This agreement supersedes and replaces a Blanket Agreement for Advances and Security Agreement
dated November, 2000 and a Commercial Real Estate Addendum dated October 10, 2002 but does not
supersede ore replace an Addendum dated February 26, 2004 relating to the Borrower’s sale of
certain mortgage loans (the “Loan Sale Addendum”), which shall remain in full force and effect;
provided, however, that each reference in the Loan Sale Addendum to the ‘November 2000 Security
Agreement’, the ‘CRE Security Agreement’ or the ‘Original Blanket Agreement’ shall hereafter be
construed as a reference to this Agreement.

     18. FORUM. AS A SPECIFICALLY BARGAINED INDUCEMENT FOR FHLBANK TO ENTER INTO THIS
BLANKET AGREEMENT AND EXTEND CREDIT TO BORROWER, ANY ACTION, SUIT OR PROCEEDING IN RESPECT OF OR
ARISING OUT OF THIS BLANKET AGREEMENT, ITS VALIDITY OR PERFORMANCE, AT THE SOLE OPTION OF FHLBANK,
ITS SUCCESSORS AND ASSIGNS, AND WITHOUT LIMITATION ON THE ABILITY OF FHLBANK, ITS SUCCESSORS AND
ASSIGNS, TO EXERCISE ALL RIGHTS AS TO THE COLLATERAL AND OTHER SECURITY FOR THE

19

 

OBLIGATIONS OR INITIATE AND PROSECUTE IN ANY APPLICABLE JURISDICTION ACTIONS RELATED TO
REPAYMENT OF THE OBLIGATIONS, SHALL BE INITIATED AND PROSECUTED AS TO ALL PARTIES AND THEIR
SUCCESSORS AND ASSIGNS AT CINCINNATI, OHIO. BORROWER, FHLBANK AND EACH PLEDGING AFFILIATE CONSENTS
TO AND SUBMITS TO THE EXERCISE OF JURISDICTION OVER ITS PERSON BY ANY COURT SITUATED AT CINCINNATI,
OHIO HAVING JURISDICTION OVER THE SUBJECT MATTER, WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS
UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY CERTIFIED MAIL DIRECTED TO THE
PARTIES AT THEIR RESPECTIVE ADDRESSES SET FORTH HEREIN OR AS OTHERWISE PROVIDED UNDER THE LAWS OF
THE STATE OF OHIO. BORROWER AND EACH OBLIGOR WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS,
AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER, AND CONSENTS TO THE GRANTING OF SUCH
LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT.

     19. JURY TRIAL WAIVER. AS A SPECIFICALLY BARGAINED INDUCEMENT FOR FHLBANK TO ENTER
INTO THIS AGREEMENT AND EXTEND CREDIT TO BORROWER, BORROWER, EACH PLEDGING AFFILIATE, AND FHLBANK
WAIVES TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING IN RESPECT OF OR ARISING
OUT OF THIS BLANKET AGREEMENT AND/OR THE CONDUCT OF THE RELATIONSHIP BETWEEN FHLBANK AND BORROWER
AND ANY PLEDGING AFFILIATE.

     IN WITNESS WHEREOF, Borrower and FHLBank each has caused the duly authorized representative of
each to execute this Blanket Agreement.

	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	NCB, FSB	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Steven A Brookner	 	 
	 

	 	 	 	 

	 	 
	 	 	     Name: Steven A. Brookner	 	 
	 
	 	 	 	 	 	 
	 	 	     Title: President and Chief Executive
Officer	 	 
	 
	 	 	 	 	 	 
	 

	 	And:
	 	/s/ Richard L. Reed	 	 
	 

	 	 	 	 

	 	 
	 	 	     Name: Richard L. Reed	 	 
	 
	 	 	 	 	 	 
	 	 	     Title: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	FEDERAL HOME LOAN BANK OF CINCINNATI	 	 

20

 

	 	 	 	 	 	 	 
	 

	 	By: /s/ Andrew S. Howell	 	 
	 

	 	 

	 	 
	 

	 	     Name:
	 	Andrew S. Howell	 	 
	 
	 	 	 	 	 	 
	 

	 	     Title:
	 	Senior Vice President, Credit Services	 	 
	 
	 	 	 	 	 	 
	 

	 	And: /s/ David Eastland	 	 
	 

	 	 
	 	 
	 

	 	     Name:
	 	David Eastland	 	 
	 
	 	 	 	 	 	 
	 

	 	     Title:
	 	Vice President, Credit Risk Management	 	 
	 
	 	 	 	 	 	 
	 	 	July 14, 2006	 	 

21

 

[                     DISTRICT OF COLUMBIA                                                              )

     The foregoing instrument was acknowledged before me this            day of June, 2006, by Steven A.
Brookner and Richard L. Reed, as President and Chief Executive Officer and Chief Financial Officer,
respectively, of NCB,FSB, a federal savings bank organized under the laws of the United States, on
behalf of the Federal Savings Bank.

	 	 	 	 	 
	 

	 	/s/ Monica Y. Fisher	 	 
	 

	 	 

Notary Public
	 	 
	 
	 	 	 	 
	 

	 	My Commission expires: January 1, 2009	 	 

22

 

EXHIBIT A

COLLATERAL SCHEDULE

The Collateral that Borrower is pledging and in which it is granting a security interest pursuant
to the foregoing Blanket Agreement is identified below opposite the blank or blanks that Borrower
has checked and initialed:

	 	1.	 	(_X_) All of Borrower’s One to Four Family Mortgage Collateral
	 
	 	2.	 	(_X_) All of Borrower’s Multi-family Mortgage Collateral
	 
	 	3.	 	(_X_) Securities Collateral identified in separate Assignment of Security documents
	 
	 	4.	 	(___) All of Borrower’s Agricultural Mortgage Collateral
	 
	 	5.	 	(_X_) All of Borrower’s Commercial Real Estate Mortgage Collateral
	 
	 	6.	 	(_X_) All of Borrower’s Home Equity Line of Credit Collateral
	 
	 	7.	 	(___) All of Borrower’s Junior Mortgage Collateral
	 
	 	8.	 	(_X_) All of Borrower’s Collateral Identified in separate Assignment of Mortgage
documents

23exv4w2

 

Exhibit 4.2

EXECUTION VERSION

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT is made as of June 23, 2005, by and among EMERGENT
BIOSOLUTIONS INC., a Delaware corporation (together with any successor thereto, the
“Company”), and MICROSCIENCE HOLDINGS PLC, a public limited company organized under the
laws of the United Kingdom (“PLC”). Each of the Company and PLC are referred to herein as
a “Party” and collectively, as the “Parties”.

     WHEREAS, the Company’s wholly-owned indirect subsidiary and PLC are simultaneously entering
into a Share Exchange Agreement (the “Share Exchange Agreement”) pursuant to which PLC is
exchanging all of the issued and outstanding capital stock of its wholly-owned subsidiary
Microscience Limited for 1,264,051 shares of the Company’s Class A Common Stock;

     WHEREAS, the Company and PLC desire to provide for certain arrangements with respect to the
registration of shares of capital stock of the Company under the Securities Act (as defined
herein); and

     WHEREAS, the execution and delivery of this Agreement is a condition precedent to the
transaction contemplated by the Share Exchange Agreement.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this
Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties hereto agree as follows:

     1. Certain Definitions. Capitalized terms used in this Agreement and not
otherwise defined shall have the following respective meanings:

          “Agreement” shall mean this Registration Rights Agreement, as amended, restated,
supplemented or otherwise modified from time to time.

          “Commission” shall mean the United States Securities and Exchange Commission or any other
federal agency at the time administering the Securities Act and the Exchange Act.

          “Common Stock” shall mean the Company’s Class A Common Stock, $0.01 par value per share.

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar
successor federal statute, and the rules and regulations of the Commission thereunder, all as the
same shall be in effect at the time.

          “Holder” shall mean PLC or another holder of Registrable Securities who was assigned
registration rights hereunder in accordance with Section 7 hereof.

          “Initial Public Offering” means the first underwritten public offering of Common Stock for
the account of the Company and offered on a “firm commitment” basis pursuant to an offering
registered under the Securities Act with the Commission on Form S-1 or its then equivalent.

 

 

          “Person” shall mean any individual, sole proprietorship, partnership, joint venture, trust,
unincorporated organization, association, corporation, limited liability company, institution,
public benefit corporation, other entity or government (whether federal, state, county, city,
municipal, local, foreign, or otherwise, including any instrumentality, division, agency, body or
department thereof).

          “Registrable Securities” shall mean (a) the shares of Common Stock issued to PLC pursuant
to the Share Exchange Agreement and (b) any additional shares of Common Stock issued or distributed
by way of a dividend, stock split or other distribution in respect of any share of Class A Common
Stock issued to PLC under the Share Exchange Agreement; provided, however, that
notwithstanding anything to the contrary contained herein, “Registrable Securities” shall not at
any time include any securities (i) registered and sold pursuant to the Securities
Act, (ii) sold pursuant to Rule 144 or (iii) which could then be sold in their entirety pursuant to
Rule 144 without limitation or restriction.

          “Registration Date” means the date upon which the registration statement pursuant to which
the Company shall have initially registered shares of Common Stock under the Securities Act for
sale to the public shall have been declared effective.

          “Rule 144” means Rule 144 promulgated under the Securities Act or any successor regulation.

          “Securities Act” shall mean the Securities Act of 1933, as amended, or any similar
successor federal statute, and the rules and regulations of the Commission thereunder, all as the
same shall be in effect at the time.

     2. Registrations.

          (a) Demand Registration.

          (i) At any time after the expiration of ninety (90) days after the Registration Date,
if the Company shall be requested in writing by Holders of Registrable Securities to file a
registration statement for Registrable Securities having an aggregate offering price to the
public of not less than $25,000,000 under the Securities Act (a “Demand Notice”) in
accordance with this Section 2(a), then the Company shall use commercially
reasonable efforts to effect, as soon as practicable, such a registration statement. Upon
receipt of a Demand Notice, the Company shall give written notice of such proposed
registration to all Holders and shall offer to include in such proposed registration any
Registrable Securities requested to be included in such proposed registration by such
Holders who respond in writing to the Company’s notice within 30 days after delivery of such
notice (which response shall specify the number of Registrable Securities proposed to be
included in such registration). The Company shall use commercially reasonable efforts to
effect, as soon as practicable, such registration on an appropriate form, including Form S-2
or S-3, if available, under the Securities Act of the Registrable Securities which the
Company has been so requested to register; provided, however, that the
Company shall not be obligated to effect any registration under the Securities Act except in
accordance with the following provisions:

- 2 -

 

          (A) The Company shall not be obligated to file more than one registration
statement initiated by the Holders of Registrable Securities pursuant to this
Section 2(a); provided, however, that the Company shall be obligated
to file a second registration statement if at the time of the filing of the first
registration statement referred to above any Registrable Securities remain subject
to the Pledge Agreement (as defined in the Share Exchange Agreement);

          (B) The Company shall not be obligated to file a registration statement during
the period following the Registration Date when the Holders are
subject to any restrictions on disposition of Registrable Securities pursuant
to any agreement described in Section 6(a); and

          (C) The Company shall not be obligated to file any registration statement
during any period in which any other registration statement (other than on Form S-4
or Form S-8 promulgated under the Securities Act or any successor forms thereto)
pursuant to which securities of the Company are to be or were sold has been filed
and not withdrawn or has been declared effective within the prior 90 days.

          (ii) If the Holders requesting to be included in a registration pursuant to this
Section 2(a) so elect, the offering of such Registrable Securities pursuant to such
registration shall be in the form of an underwritten offering. The Holders of a majority of
the Registrable Securities requested to be included in such registration shall select one or
more nationally recognized firms of investment bankers reasonably acceptable to the Company
to act as the lead managing underwriter or underwriters in connection with such offering and
shall select any additional investment bankers and managers to be used in connection with
the offering, which shall also be reasonably acceptable to the Company.

          (iii) With respect to any registration pursuant to this Section 2(a), the
Company may include in such registration any Common Stock; provided,
however, that if a managing underwriter, if any, advises the Company that the
inclusion of all Registrable Securities and Common Stock requested to be included by the
Company in such registration would interfere with the successful marketing (including
pricing) of all such securities, then the number of Registrable Securities and Common Stock
proposed to be included in such registration shall be included in the following order:

     (A) first, the Registrable Securities shall be included, pro rata based
upon the number of Registrable Securities to be included at the time of such
registration; and

     (B) second, Common Stock requested to be included by the Company.

          (iv) At any time before the registration statement covering Registrable Securities
becomes effective, Holders of a majority of the Registrable Securities requested to be
included in such registration may request the Company to withdraw or

- 3 -

 

not to file the
registration statement. In that event, if such request of withdrawal shall have been caused
by, or made in response to, a material adverse effect or change in the Company’s financial
condition, operations, business or prospects, such Holders of Registrable Securities shall
not be deemed to have used their demand registration rights under this Section 2(a).

          (b) Piggyback Registration. If, at any time or times after (but not including) an
Initial Public Offering, the Company shall seek to register any shares of its Common Stock under
the Securities Act for sale to the public for its own account or on the account of others
(except with respect to registration statements on Form S-4, S-8 or another form not available
for registering the Registrable Securities for sale to the public), the Company will give written
notice thereof to all Holders. If within fifteen (15) business days after their receipt of such
notice one or more Holders request in writing the inclusion of some or all of the Registrable
Securities owned by them in such registration, the Company will use commercially reasonable efforts
to effect the registration under the Securities Act of such Registrable Securities. In the case of
the registration of shares of capital stock by the Company in connection with any underwritten
public offering, if the principal underwriter determines that the number of Registrable Securities
to be offered must be limited, the Company shall not be required to register Registrable Securities
of the Holders in excess of the amount, if any, of shares of the capital stock which the principal
underwriter of such underwritten offering shall reasonably and in good faith agree to include in
such offering in addition to any amount to be registered for the account of the Company.

     3. Further Obligations of the Company.

          (a) Whenever the Company is required hereunder
to register any Registrable Securities, it
agrees that it shall also do the following:

               (i) Prepare and file, and use commercially reasonable efforts to cause to become effective,
with the Commission a registration statement and such amendments and supplements to said
registration statement and the prospectus used in connection therewith as may be necessary to keep
said registration statement effective until the Holder or Holders have completed the distribution
described in the registration statement relating thereto (but for no more than one hundred eighty
(180) days or such lesser period until all such Registrable Securities are sold) and to comply with
the provisions of the Securities Act with respect to the sale of securities covered by said
registration statement for such period;

               (ii) Furnish to each selling Holder a draft copy of the registration statement and such copies
of each preliminary and final prospectus as such Holder may reasonably request to facilitate the
public offering of its Registrable Securities;

               (iii) Enter into and perform its obligations under any reasonable underwriting agreement
required by the proposed underwriter, if any, in such form and containing such terms as are
customary;

               (iv) Use its commercially reasonable efforts to register or qualify the securities covered by
said registration statement under the securities or “blue sky” laws of such

- 4 -

 

jurisdictions as any
selling Holder may reasonably request provided the Company shall not be required to qualify to do
business or file a general consent to service of process in connection therewith;

               (v) Cause upon or immediately after the effectiveness of a registration all such Registrable
Securities to be listed on each securities exchange or quotation system on which the Common Stock
of the Company is then listed or quoted;

               (vi) notify each Holder of Registrable Securities covered by a registration statement, at any
time when a prospectus relating thereto is required to be delivered under the Securities Act, of
(A) the issuance of any stop order by the Commission in respect of such registration statement, or
(B) the happening of any event as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing; and

               (vii) provide a transfer agent and registrar for all Registrable Securities registered
pursuant hereunder and a CUSIP number for all such Registrable Securities, in each case not later
than the effective date of such registration.

          (b) With a view to making available to the Holders the benefits of Rule 144, the Company
agrees to:

               (i) make and keep public information available, as those terms are understood and defined in
Rule 144, at all times after the effective date of the Initial Public Offering;

               (ii) 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, if any; and

               (iii) furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith
upon request (A) a written statement by the Company that it has complied with the information and
reporting requirements of Rule 144(c) and (B) a copy of the most recent annual or quarterly report
of the Company and such other reports and documents so filed by the Company.

          (c) From and after the date of this Agreement, the Company shall not, without the prior
written consent of the Holders of a majority of the outstanding Registrable Securities, enter into
any agreement with any holder or prospective holder of any securities of the Company that would
allow such holder or prospective holder to include such securities in any registration statement
filed under Section 2 hereof, unless under the terms of such agreement, such holder or
prospective holder may include such securities in any such registration only to the extent that
the inclusion of such securities will not reduce the amount of the Registrable Securities of the
Holders that are included.

- 5 -

 

	4.	 	Payment of Expenses by; Cooperation by, and Obligations of, Prospective
Sellers.

          (a) Notwithstanding any other provision in this Agreement to the
contrary, the Company and the Holders shall each pay one-half of all expenses
of any registration effected pursuant to Section 2(a) hereof and the
Holders shall pay in full any incremental expenses of including the Holders’
Registrable Securities in a Piggyback Registration pursuant to Section
2(b) hereof, including, without limitation, all
legal and accounting fees, printing costs, listing fees and
miscellaneous expenses, but excluding underwriters’
commissions or discounts attributable to the Registrable
Securities being offered and sold by the Holders, which
shall be borne exclusively by the Holders.

          (b) Each prospective seller of Registrable Securities shall
furnish to the Company in writing such information as the Company may
reasonably request from such seller in connection with any registration
statement with respect to such Registrable Securities.

          (c) The failure of any prospective seller of Registrable
Securities to furnish any information or documents in accordance with any
provision contained in this Agreement shall not affect the obligations of the
Company under this Agreement to any remaining sellers who furnish such
information and documents unless, in the reasonable opinion of counsel to the
Company and/or the underwriters, such failure impairs or adversely affects the
offering or the legality of the registration statement or causes the request
not to meet the requirements of Section 2 of this Agreement.

          (d) Upon receipt of a notice (telephonic or written) from the
Company or the underwriter of the happening of an event which makes any
statement made in a registration statement or related prospectus covering
Registrable Securities untrue or which requires the making of any changes in
such registration statement or prospectus so that they will not contain any
untrue statement of material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein in light of
the circumstances under which they were made not misleading, the Holders of
Registrable Securities included in such registration statement shall
discontinue disposition of such Registrable Securities pursuant to such
registration statement until such Holders’ receipt of copies of the
supplemented or amended prospectus or until advised by the Company or the
underwriters that dispositions may be resumed.

          (e) Each Holder of Registrable Securities included in any
registration statement will effect sales of such securities in accordance with
the plan of distribution given to the Company.

          (f) At the end of any period during which the Company is obligated
to keep any registration statement current and effective as provided in this
Agreement, the Holders of Registrable Securities included in such registration
statement shall discontinue sales of shares pursuant to such registration
statement, unless they receive notice from the Company of its intention to
continue effectiveness of such registration statement with respect to such shares which remain unsold and such Holders shall notify the Company of the
number of shares

- 6 -

 

registered which remain unsold promptly upon expiration of
the period during which the Company is obligated to maintain the effectiveness
of the registration statement.

          (g) No Person may participate in any underwritten registration
pursuant to this Agreement unless such Person (i) agrees to sell such Person’s
securities on the basis provided in any underwriting arrangements made with
respect to such registration and (ii) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents reasonably required by the terms of such underwriting
arrangements.

     5. Indemnification; Contribution.

          (a) Incident to any registration of any Registrable Securities
under the Securities Act pursuant to this Agreement, the Company will
indemnify and hold harmless each Holder who offers or sells any such
Registrable Securities in connection with such registration statement
(including its partners (including partners of partners and stockholders of
any such partners), and directors, officers, employees, representatives and
agents of any of them, and each person who controls any of them within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act), from and against any and all losses, claims, damages, reasonable
expenses and liabilities, joint or several (including any reasonable
investigation, legal and other expenses incurred in connection with, and any
amount paid in settlement of, any action, suit or proceeding or any claim
asserted, as the same are incurred), to which they, or any of them, may become
subject under the Securities Act, the Exchange Act or other federal or state
statutory law or regulation, at common law or otherwise, insofar as such
losses, claims, damages or liabilities arise out of or are based on (i) any
untrue statement or alleged untrue statement of a material fact contained in
such registration
statement (including any related preliminary or definitive
prospectus, or any amendment or supplement to such
registration statement or prospectus) or (ii) any omission
or alleged omission to state in such document a material
fact required to be stated in it or necessary to make the
statements in it not misleading; provided,
however, that the Company will not be liable to the
extent that (1) such loss, claim, damage, expense or
liability arises from and is based on an untrue statement or
omission or alleged untrue statement or omission made in
reliance on and in conformity with information furnished in
writing to the Company by or on behalf of such Holder in
accordance with Section 4(b) of this Agreement for
use in such registration statement, or (2) in the case of a
sale directly by such Holder (including a sale of
Registrable Securities through any underwriter retained by
such Holder to engage in a distribution solely on behalf of
such Holder), such untrue statement or alleged untrue
statement or omission or alleged omission was contained in a
preliminary prospectus and corrected in a final or amended
prospectus, and such Holder failed to deliver a copy of the
final or amended prospectus at or prior to the confirmation
of the sale of the Registrable Securities to the Person
asserting any such loss, claim, damage or liability in any
case where such delivery is required by the Securities Act
or any state securities laws. With respect to such untrue
statement or omission or alleged untrue statement or
omission in the information furnished in writing to the
Company by or on behalf of such Holder in accordance with
Section 4(a) of this Agreement for use in such
registration statement, such Holder, on a several and not
joint basis, will indemnify and hold harmless the Company
(including its directors, officers, employees,
representatives and agents), each other Holder (including
its partners (including partners of partners and
stockholders of such partners) and directors, officers,
employees, representatives and agents of any of them, and
each person who controls any of them

- 7 -

 

within the meaning of
Section 15 of the Securities Act or Section 20 of the
Exchange Act), from and against any and all losses, claims,
damages, reasonable expenses and liabilities, joint or
several (including any reasonable investigation, legal and
other expenses incurred in connection with, and any amount
paid in settlement of, any action, suit or proceeding or any
claim asserted, as the same are incurred), to which they, or
any of them, may become subject under the
Securities Act, the Exchange Act or other federal or state
statutory law or regulation, at common law or otherwise.

          (b) If the indemnification provided for in Section 5(a)
above for any reason is held by a court of competent jurisdiction to be
unavailable to an indemnified party in respect of any losses, claims, damages,
expenses or liabilities referred to therein, then each indemnifying party
under this Section 5, in lieu of indemnifying such indemnified party
thereunder, shall contribute to the amount paid or payable by such indemnified
party as a result of such losses, claims, damages, expenses or liabilities (i)
in such proportion as is appropriate to reflect the relative benefits received
by the Company and the other Holders from the offering of the Registrable
Securities or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect
not only the relative benefits referred to in clause (i) above but also the
relative fault of the Company and the other Holders in connection with the
statements or omissions which resulted in such losses, claims, damages,
expenses or liabilities, as well as any other relevant equitable
considerations. The relative benefits received by the Company and the Holders
shall be deemed to be in the same respective proportions that the net proceeds
from the offering received by the Company and the Holders, in each case as set
forth in the table on the cover page of the applicable prospectus, bear to the
aggregate public offering price of the Registrable Securities. The relative
fault of the Company and the Holders 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 or on behalf of the Company or the Holders
and the Parties’ relative intent, knowledge and access to information.

          The Company and the Holders agree that it would not be just and equitable if contribution pursuant
to this Section 5(b) were determined by pro rata or per capita 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 found 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 found guilty of such fraudulent misrepresentation.

          (c) The amount paid by an indemnifying party or payable to an
indemnified party as a result of the losses, claims, damages and liabilities
referred to in this Section 5 shall be deemed to include, subject to
the limitations set forth above, any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or
defending any such action or claim, payable as the same are incurred. The
indemnification and contribution provided for in this Section 5
will
remain in full force and effect regardless of any investigation made by or on
behalf of the indemnified parties or any officer, director, employee, agent or
controlling person of the indemnified parties. No indemnifying party, in the
defense of any such claim or litigation, shall enter into a consent of entry of
any judgment or enter into a settlement without the consent of the indemnified
party, which consent will not be unreasonably withheld. Any indemnified party
that proposes to assert the right to be indemnified under this Section
5

- 8 -

 

will, promptly after receipt of notice of commencement or threat of any
claim or action against such party in respect of which a claim is to be made
against an indemnifying party under this Section 5 notify the
indemnifying party in writing (such written notice, an “Indemnification
Notice”) of the commencement or threat of such action, enclosing a copy of
all papers served or notices received (if applicable), but the omission so to
notify the indemnifying party will not relieve the indemnifying party from any
liability that the indemnifying party may have to any indemnified party under
the foregoing provisions of this Section 5 unless, and only to the
extent that, such omission results in the forfeiture
of substantive rights or defenses by the indemnifying party.
The indemnified party will have the right to retain its own
counsel in any such action if (i) the employment of counsel
by the indemnified party has been authorized by the
indemnifying party, (ii) the indemnified party’s counsel,
with the concurrence of indemnifying party’s counsel, shall
have reasonably concluded that there is a substantial
likelihood of a conflict of interest between the indemnifying
party and the indemnified party in the conduct of the defense
of such action or (iii) the indemnifying party shall not in
fact have employed counsel to assume the defense of such
action within a reasonable period of time following its
receipt of the Indemnification Notice, in each of which cases
the fees and expenses of the indemnified party’s separate
counsel shall be at the expense of the indemnifying party;
provided, however, that the indemnified party
shall agree to repay any expenses so advanced hereunder if it
is ultimately determined by a court of competent jurisdiction
that the indemnified party to whom such expenses are advanced
is not entitled to be indemnified; and provided,
further, that so long as the indemnified party has
reasonably concluded that no conflict of interest exists, the
indemnifying party may assume the defense of any action
hereunder with counsel reasonably satisfactory to the
indemnified party.

          (d) In the event of an underwritten offering of Registrable
Securities under this Agreement, the Company and the Holders shall enter into
standard indemnification and underwriting agreements with the underwriter
thereof. To the extent that the
provisions on indemnification and contribution contained in
the underwriting agreement entered into in connection with
the underwritten public offering are in conflict with the
provisions of this Section 5, the provisions in the
underwriting agreement shall control.

          (e) The obligation of the Company and Holders under this
Section 5 shall survive the completion of any offering of Registrable
Securities in a registration statement under Section 2, and otherwise.

     6. Market Standoff Agreement.

          (a) In connection with the Initial Public Offering by the Company,
each Holder, if requested by the Company and the managing underwriter of the
Company’s securities, shall agree not to, directly or indirectly, offer, sell,
pledge, contract to sell (including any short sale), grant any option to
purchase or otherwise dispose of any securities of the Company held by it
(except for any securities sold pursuant to such registration statement) for a
period of ninety (90) days (or such longer period, not to exceed one hundred
eighty (180) days, that the managing underwriter specifies is required for
successful completion of the Initial Public Offering) following the effective
date of the registration statement as agreed to by such parties. Such
agreement shall be in writing and in form and substance reasonably satisfactory
to the Holders, the Company and such underwriter and pursuant to customary and
prevailing terms

- 9 -

 

and conditions. The foregoing provisions of this Section
6(a) shall not apply to the sale of any shares to an underwriter pursuant
to an underwriting agreement, and shall only be applicable to the Holders if
all officers and directors and five percent (5%) or greater stockholders of the
Company enter into similar or more restrictive agreements with
respect to any shares of common stock of the Company that are beneficially held by them and
that are not being sold by them in connection with the Company’s Initial Public
Offering.

          (b) Each Holder agrees that in the event the Company proposes to
offer for sale to the public any of its equity securities
after the Initial Public Offering, and if (i) such Holder
holds beneficially or of record five percent (5%) or more of
the outstanding equity securities of the Company, (ii)
requested by the Company and the managing underwriter of
Common Stock or other securities of the Company, and (iii)
all other such five percent (5%) stockholders are requested
by the Company and such underwriter to sign, and actually do
sign, a similar or more restrictive agreement restricting the
sale or other transfer of shares of the Company, then it will
not directly or indirectly, offer, sell, pledge, contract to
sell (including any short sale), grant any option to purchase
or otherwise dispose of any securities of the Company held by
it (except for any securities sold pursuant to such
registration statement) for a period of ninety (90) days (or
such longer period, not to exceed one hundred eighty (180)
days, that the managing underwriter specifies is required for
completion of the offering) following the effective date of
the registration statement as agreed to by such parties. Such
agreement shall be in writing and in form and substance
reasonably satisfactory to the Holders, the Company and such
underwriter and pursuant to customary and prevailing terms
and conditions.

     7. Transferability of Registration Rights. The registration rights set
forth in this Agreement may not be transferred, except to the following Persons and
then, only if such Persons become Holders of Registrable Securities: APAX Funds
Nominees Limited; The Merlin BioSciences Funds; The Merlin Fund L.P.; Advent Private
Equity Funds; JP Morgan Partners LLC; Merlin Equity Limited; or any subsidiary,
affiliate, parent or general partner of any of the foregoing. All transfers of
Registrable Securities are also subject to the transfer restrictions contained in the
Class A Stockholders Agreement, dated June 30, 2004, among the Company and the Class A
Stockholders of the Company. Each subsequent Holder of Registrable Securities must
consent in writing to be bound by the terms and conditions of this Agreement in order
to acquire the rights granted pursuant to this Agreement.

     8. Miscellaneous.

          (a) Notices. Except as otherwise expressly provided
herein, all notices, requests, demands, claims, and other communications
hereunder will be in writing. Any such notice, request, demand, claim, or
other communication hereunder shall be deemed duly given (a) upon confirmation
of facsimile, (b) one (1) business day following the date sent when sent by
overnight delivery
and (c) five (5) business days following the date mailed
when mailed by registered or certified mail return receipt
requested and postage prepaid at the following addresses (or
such other address for a Party as shall be specified by such
Party by like notice):

- 10 -

 

	 	 	 	 	 
	 

	 	If to the Company:
	 	300 Professional Drive
	 
	 	 	 	 
	 

	 	 	 	Suite 250
	 

	 	 	 	Gaithersburg, MD 20879
	 

	 	 	 	Fax: (301) 944-0173
	 

	 	 	 	Attn: Mr. Daniel J. Abdun-Nabi
	 
	 	 	 	 
	 

	 	If to PLC or any Holder:	 	 
	 
	 	 	 	 
	 

	 	 	 	To the address of PLC as set forth on the signature
page hereto.

          (b) Entire Agreement. This Agreement, together with the
instruments and other documents hereby contemplated to be executed and
delivered in connection herewith, contains the entire agreement and
understanding of the parties hereto, and supersedes any prior agreements or
understandings between or among them, with respect to the subject matter
hereof.

          (c) Successors and Assigns. The parties intend that this
Agreement shall not benefit or create any right or cause of action in or on
behalf of any person other than Parties hereto and their respective successors
and permitted assigns.

          (d) Amendments and Waivers. Except as otherwise expressly
set forth in this Agreement, any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either generally or in
a particular instance and either retroactively or prospectively), with the
written consent of the Company and the Holders of at least a majority of the
Registrable Securities. No waivers of or exceptions to any term, condition or
provision of this Agreement, in any one or more instances, shall be deemed to
be, or construed as, a further or continuing waiver of any such term,
condition or provision.

          (e) Counterparts; Facsimile Execution. This Agreement may
be executed in multiple counterparts, each of which shall constitute an
original but all of which shall constitute but one and the same instrument.
One or more counterparts of this Agreement may be delivered via telecopier,
with the intention that they shall have the same effect as an original
counterpart hereof. Facsimile execution and delivery of this Agreement is
legal, valid and
binding for all purposes.

          (f) Captions. The captions of the sections, subsections
and paragraphs of this Agreement have been added for convenience only and
shall not be deemed to be a part of this Agreement.

          (g) Severability. Each provision of this Agreement shall
be interpreted in such manner as to validate and give effect thereto to the
fullest lawful extent, but if any provision of this Agreement is determined by
a court of competent jurisdiction to be invalid or unenforceable under
applicable law, such provision shall be ineffective only to the extent so
determined and such invalidity or unenforceability shall not affect the
remainder of such provision or the remaining provisions of this Agreement;
provided, however, that the Company and a majority of the Holders shall
negotiate in good faith to attempt to implement an equitable

- 11 -

 

adjustment in the
provisions of this Agreement with a view toward effecting the purposes of this
Agreement by replacing the provision that is invalid or unenforceable with a
valid and enforceable provision the economic effect of which comes as close as
possible to that of the provision that has been found to be invalid and
unenforceable.

          (h) Governing Law. This Agreement and the rights and
obligations of the Parties hereunder shall be governed by, and construed in
accordance with, the laws of the State of Delaware.

          (i) Submission to Jurisdiction.

               (iv) The Parties agree that any suit, action or proceeding with respect to any dispute,
controversies or claims or any judgment entered by any court in respect thereof may be brought in
any state or federal court in the state of Delaware and any appellate court thereof and irrevocably
and unconditionally submits to the non-exclusive jurisdiction of such courts for the purpose of any
such suit, action, proceeding or judgment. Each of the Parties hereto agrees that final judgment
in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law. Each of the Parties further submits,
for the purpose of any such suit, action, proceeding or judgment brought or rendered against it, to
the appropriate courts of the jurisdiction of its domicile.

               (v) The Parties agree that any suit, action or proceeding with respect to the Agreement or any
judgment entered by any court in respect thereof may be brought in the competent courts of the
state of Delaware, and irrevocably submits to the non-exclusive jurisdiction of such courts for the
purpose of any such suit, action, proceeding or judgment.

               (vi) Nothing herein shall in any way be deemed to limit the ability of any Party to serve any
such process of summons, complaint and other legal process in any other manner permitted by
applicable law or to obtain jurisdiction over, or bring any suit, action or proceeding against, any
other Party in such other jurisdiction, and in such manner, as may be permitted by applicable law.

               (vii) The Parties also irrevocably consent, if for any reason any of the Party’s authorized
agent for service of process of summons, complaint and other legal process in any action, suit or
proceeding is not present in Delaware, to the service of such papers being made out of those courts
by mailing copies of the papers by registered United States air mail, postage prepaid, to the Party
at its address specified in Section 8(a). In such a case, the relevant Party shall also
send by facsimile, or have sent by facsimile, a copy of the papers to all Parties.

               (viii) Service in the manner provided in Section 8(h) in any action, suit or
proceeding will be deemed personal service, will be accepted by each of the Parties as such and
will be valid and binding upon such Party for all purposes of any such action, suit or proceeding.

          (j) Appointment of Process Agent. The Parties hereby
irrevocably appoint Corporation Service Company (the “Process Agent”),
with an office on the date hereof at 2711 Centerville Road, Wilmington,
Delaware 19808, United States of America as its agent to receive

- 12 -

 

on behalf of
each of the Parties service of copies of the summons and complaint and any
other process which may be served in any suit, action or proceeding. Each
Party agrees that the failure of the Process Agent to give any notice of any
such service of process to such Party shall not impair or affect the validity
of such service or, to the extent permitted by applicable law, the enforcement
of any judgment based thereon. Such appointment shall be irrevocable as long
as any amounts payable under this Agreement or the terms and conditions of
this Agreement are outstanding, except that if for any reason the Process
Agent appointed hereby ceases to be able to act as such, each Party shall, by
an instrument reasonably satisfactory to the other Parties, appoint another
Person in the State of Delaware as such Process Agent subject to the approval
(which approval shall not be unreasonably withheld) of the other Parties. PLC
covenants and agrees that it shall take any and all reasonable action,
including the execution and filing of any and all documents, that may be
necessary to continue the designation of a Process Agent pursuant to this
Section 8(i) in full force and effect and to cause the Process Agent
to act as such.

          (k) Other Methods of Service. Nothing herein shall in any
way be deemed to limit the ability of any Party to serve any such process or
summonses in any other manner permitted by applicable law or to obtain
jurisdiction over, or bring any suit, action or proceeding against, the other
Parties in such other jurisdictions, and in such manner, as may be permitted
by applicable law.

          (l) Waiver of Inconvenient Forum, Etc.. Each of the
Parties hereby irrevocably waives any objection that it may now or hereafter
have to the laying of the venue of any suit, action or proceeding arising out
of or relating to this Agreement brought in any state or federal court in the
State of Delaware, United States of America, and hereby further irrevocably
waives any claim that any such suit, action or proceeding brought in any such
court has been brought in an inconvenient forum. A final judgment (in respect
of which time for all appeals has elapsed) in any such suit, action or
proceeding shall be conclusive and may be enforced in any court to the
jurisdiction of which the Parties are or may be subject, by suit upon
judgment.

          (m) EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT,
TORT OR ANY OTHER THEORY). EACH PARTY HERETO (i) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (ii) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

[Signature page follows]

- 13 -

 

     IN WITNESS WHEREOF, the Parties hereto have caused this Registration Rights Agreement to be duly
executed as of the date first set forth above.

	 	 	 	 	 	 	 
	COMPANY:
	 	EMERGENT BIOSOLUTIONS INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Fuad El-Hibri
 

	 	 
	 	 	Name: Fuad El-Hibri	 	 
	 	 	Title: Chairman, President and CEO	 	 
	 
	 	 	 	 	 	 
	PLC:
	 	MICROSCIENCE HOLDINGS PLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ [Illegible]
 

	 	 
	 	 	Name: [Illegible]	 	 
	 	 	Title: Finance Director	 	 
	 
	 	 	 	 	 	 
	 	 	Address:	 	 
	 
	 	 	 	 	 	 
	 	 	MICROSCIENCE HOLDINGS PLC	 	 
	 	 	c/o Advent Venture Partners	 	 
	 	 	25 Buckingham Gate	 	 
	 	 	London SW1E 6LD	 	 
	 	 	United Kingdom	 	 
	 	 	Fax: 44 20 7828 1474	 	 
	 	 	Attention: Shahzad Malik	 	 
	 
	 	 	 	 	 	 
	 	 	with a copy to:	 	 
	 
	 	 	 	 	 	 
	 	 	Morrison & Foerster	 	 
	 	 	CityPoint	 	 
	 	 	One Ropemaker Street	 	 
	 	 	London EC2Y 9AW	 	 
	 	 	United Kingdom	 	 
	 	 	Fax: 44 20 7496 8500	 	 
	 	 	Attention: James Gubbins	 	 

[Signature Page to Registration Rights Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}]]