Document:

firstwatch-registrationr

Exhibit 4.2                                REGISTRATION RIGHTS AGREEMENT      by and among      First Watch Restaurant Group, Inc.  and  the other parties hereto        October 1, 2021                                                  WEIL:\98072649\4\72198.0009  

 

TABLE OF CONTENTS  Section 1. Certain Definitions ........................................................................................... 1  Section 2. Registration Rights............................................................................................ 5  2.1. Demand Registrations ........................................................................... 5  2.2. Piggyback Registrations......................................................................... 9  2.3. Holdback Agreements ..........................................................................10  2.4. Registration Procedures ........................................................................11  2.5. Registration Expenses ..........................................................................16  2.6. No Required Sale .................................................................................16  2.7. Indemnification....................................................................................16  2.8. Participation in Underwritten Registrations ...........................................20  2.9. No Inconsistent Agreements .................................................................20  2.10. Adjustments Affecting Registrable Securities ........................................20  Section 3. General ...........................................................................................................20  3.1. Rule 144 and Rule 144A ......................................................................20  3.2. Nominees for Beneficial Owners ..........................................................21  3.3. Amendments and Waivers ....................................................................21  3.4. Notices.................................................................................................21  3.5. Successors and Assigns ........................................................................22  3.6. Entire Agreement .................................................................................22  3.7. Governing   Law;   Submission   to   Jurisdiction;    Waiver    of    Jury  Trial .....................................................................................................22  3.8. Interpretation; Construction ..................................................................23  3.9. Counterparts ........................................................................................23  3.10. Severability ..........................................................................................23  3.11. Remedies .............................................................................................24  3.12. Further Assurances...............................................................................24  3.13. Confidentiality .....................................................................................24  3.14. Termination and Effect of Termination .................................................25  Exhibit A - Joinder                      i  

 

This REGISTRATION RIGHTS AGREEMENT (this “Agreement”), is made as of  October 1, 2021, by and among (i) First Watch Restaurant Group, Inc., a Delaware  corporation (the “Company”), and (iii) each of the Persons listed on the signature pages hereto   (each a “Holder”, and collectively the “Holders”).    W I T N E S S E T H:    WHEREAS, the Holders own Registrable Securities;    WHEREAS, as of the date hereof, payment has been made by certain underwriters for the  initial public offering of shares of Common Stock (“IPO”); and    WHEREAS, in connection with the IPO, the parties desire to set forth certain registration  rights applicable to the Registrable Securities.    NOW, THEREFORE, in consideration of the premises and of the mutual covenants and  obligations hereinafter set forth, and for other good and valuable consideration the receipt and   sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:    Section 1. Certain Definitions. As used herein, the following terms shall have the  following meanings:    “Affiliate” means with respect to any Person, any other Person directly or indirectly  controlling or controlled by or under direct or indirect common control with such specified  Person, where “control” means the possession, directly or indirectly, of the power to  direct the  management and policies of a Person whether through the ownership of voting securities,  contract or otherwise. For the avoidance of doubt, neither the Company nor any Person  controlled by the Company shall be deemed to be an Affiliate of any Holder.    “Agreement” means this Registration Rights Agreement, as this agreement may be  amended, modified, supplemented or restated from time to time after the date hereof.    “Beneficial Ownership” shall mean, with respect to a specified Person, the ownership of  securities as determined in accordance with Rule 13d-3 of the Exchange Act, as such Rule is in   effect from time to time. The terms “Beneficially Own” and “Beneficial Owner” shall have a  correlative meaning.    “Block Trade” means an offering and/or sale of Registrable Securities by one or more of  the Holders on a block trade or underwritten basis (whether firm commitment or otherwise)  without substantial marketing efforts prior to pricing, including, without limitation, a same day  trade, overnight trade or similar transaction.    “Business Day” shall mean a day other than a Saturday, Sunday, or federal holiday or  other day on which commercial banks in the City of New York are authorized or required by law  or other governmental action to close.    “Claims” has the meaning ascribed to such term in Section 2.7(a).  

 

2   “Common Stock” shall mean the shares of Common Stock, $0.01 par value per share, of  the Company, and any and all securities of any kind whatsoever which may be issued after the  date hereof in respect of, or in exchange for, such shares of common stock of the Company  pursuant to a merger, consolidation, stock split, stock dividend or recapitalization of the  Company or otherwise.    “Common Stock Equivalents” means all options, warrants and other securities  convertible into, or exchangeable or exercisable for (at any time or upon the occurrence of any  event or contingency and without regard to any vesting or other conditions to which such  securities may be subject) shares of capital stock or other equity securities of such Person  (including, without limitation, any note or debt security convertible into or exchangeable for  shares of capital stock or other equity securities of such Person).  “Demand Exercise Notice” has the meaning ascribed to such term in Section 2.1(a).  “Demand Registration” has the meaning ascribed to such term in Section 2.1(a).  “Demand Registration Request” has the meaning ascribed to such term in Section 2.1(a).  “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules  and regulations of the SEC issued under such Act, as they may from time to time be in effect.    “Expenses” means any and all fees and expenses incident to the Company’s performance  of or compliance with Article 2, including, without limitation: (i) SEC, stock exchange or  FINRA, and all other registration and filing fees and all listing fees and fees with respect to  the  inclusion of securities on the Nasdaq Global Select Market or on any other securities market on   which the Common Stock is listed or quoted, (ii) fees and expenses of compliance with state  securities or “blue sky” laws of any state or jurisdiction of the United States or compliance with   the securities laws of foreign jurisdictions and in connection with the preparation of a “blue sky”  survey, including, without limitation, reasonable fees and expenses of outside “blue sky” counsel  and securities counsel in foreign jurisdictions, (iii) word processing, printing and copying  expenses, (iv) messenger and delivery expenses, (v) expenses incurred in connection with any  road show, (vi) fees and disbursements of counsel for the Company, (vii) with respect to  each  registration or underwritten offering, the reasonable fees and disbursements of one counsel for  the Participating Holder(s) (selected by the Majority Participating Holders), (viii) fees and  disbursements of all independent public accountants (including the expenses of any audit and/or  comfort letter and updates thereof) and fees and expenses of other Persons, including special  experts, retained by the Company, (ix) fees and expenses payable to any Qualified Independent  Underwriter, (x) any other fees and disbursements of underwriters, if any, customarily paid by   issuers or sellers of securities, including reasonable fees and expenses of counsel for the  underwriters in connection with any filing with or review by FINRA (excluding, for the  avoidance of doubt, any underwriting discount, commissions, or spread), (xi) fees and expenses  of any transfer agent or custodian and (xii) expenses for securities law liability insurance and any  rating agency fees.    “Family Member” means, with respect to any Person who is an individual, any spouse,  parent, siblings or lineal descendants of such Person (including adoptive relationships) and any  

 

3   trust or other estate planning vehicle over which such Person has Control established for the  benefit of such Person and/or such Person’s spouse and/or such Person’s descendants (by birth or  adoption), parents, siblings or dependents.    “FINRA” means the Financial Industry Regulatory Authority, Inc.    “Holder(s)” means (1) any Person who is a signatory to this Agreement, or (2) any  Permitted Transferee to whom any Person who is a signatory to this Agreement shall assign or  transfer any rights hereunder; provided that in the case of clause (2), such Person or such  transferee, as applicable, has executed and delivered to the Company a joinder agreement in  the  form of Exhibit A hereto, and has thereby agreed in writing to be bound by this Agreement in  respect of such Registrable Securities.    “Incidental Registration Notice” has the meaning ascribed to such term in Section 2.2(a).  “Initiating Holder(s)” has the meaning ascribed to such term in Section 2.1(a).  “IPO” has the meaning ascribed to such term in the Preamble.    “Law” means any law (including common law), statute, code, ordinance rule or  regulation of any governmental entity.    “Litigation” means any action, proceeding or investigation in any court or before any  governmental authority.    “Lock-Up Agreement” means any agreement entered into by a Holder that provides for  restrictions on the transfer of Registrable Securities held by such Holder.  “Long Form Registrations” has the meaning ascribed to such term in Section 2.1(a).  “Majority Participating Holders” means Participating Holders holding more than 50% of  the Registrable Securities proposed to be included in any offering of Registrable Securities by  such Participating Holders pursuant to Section 2.1 or Section 2.2.    “Market Standoff Period” has the meaning ascribed to such term in Section 2.3(a).  “Opt-Out Request” has the meaning ascribed to such term in Section 3.13(c).  “Participating Holders” means all Holders of Registrable Securities which are proposed  to be included in any offering of Registrable Securities pursuant to Section 2.1 or Section 2.2.    “Permitted Transferee” (a) in the case of a Holder who is an individual, (i) any executor,   administrator or testamentary trustee of such Holder’s estate if such Holder dies, (ii) any Person  receiving Registerable Securities of such Holder by will, intestacy laws or the laws of descent or  survivorship, or (iii) any trustee of a trust (including an inter vivos trust) of which there are no  principal beneficiaries other than such Holder or one or more Family Members of such Limited   Partner over which such Limited Partner has Control and (b) in the case of a Holder that is not an  individual, its Affiliates, its limited partners, and its limited liability company members.  

 

4   “Person” means any individual, corporation (including not for profit), general or limited   partnership, limited liability company, joint venture, estate, trust, association, joint-stock  company, unincorporated organization, governmental entity or agency or other entity of any kind  or nature.    “Piggyback Registration” has the meaning ascribed to such term in Section 2.2(a).  “Policies” has the meaning ascribed to such term in Section 3.13(b).  “Qualified Independent Underwriter” means a “qualified independent underwriter”  within the meaning of FINRA Rule 5121.    “Registrable Securities” means (a) any shares of Common Stock held by the Holders at  any time (including those held as a result of, or issuable upon, the conversion or exercise of  Common Stock Equivalents), whether now owned or acquired by the Holders at a later time, (b)  any shares of Common Stock issued or issuable, directly or indirectly, in exchange f or or with  respect to the Common Stock referenced in clause (a) above by way of stock dividend, stock  split or combination of shares in connection with a reclassification, recapitalization, merger,  share exchange, consolidation or other reorganization and (c) any securities issued in  replacement of or exchange for any securities described in clause (a) or (b) above. As to any  particular Registrable Securities, such securities shall cease to be Registrable Securities when  (A) a registration statement with respect to the sale of such securities shall have been declared  effective under the Securities Act and such securities shall have been disposed of in accordance  with such registration statement, (B) such securities are able to be immediately sold pursuant to   Rule 144 without restrictions as to volume limitations and (C) such securities are otherwise  transferred or sold, the Company has delivered a new certificate or other evidence of ownership  for such securities not bearing a legend and such securities may be resold without subsequent  registration under the Securities Act.  “Rule 144” and “Rule 144A” have the meaning ascribed to such term in Section 3.1.  “SEC” means the Securities and Exchange Commission or such other federal agency  which at such time administers the Securities Act.  “Section 3.13 Representatives” has the meaning ascribed to such term in Section 3.13(b).  “Securities Act” means the Securities Act of 1933, as amended, and the rules and  regulations of the SEC issued under such Act, as they may from time to time be in effect.  “Shelf Offering” has the meaning ascribed to such term in Section 2.1(c)(ii).  “Shelf Registration Statement” means a shelf registration statement filed under Rule 415  of the Securities Act.  “Short Form Registrations” has the meaning ascribed to such term in Section 2.1(a).  “Subsidiary” means any direct or indirect subsidiary of the Company on the date hereof  and any direct or indirect subsidiary of the Company organized or acquired after the date hereof.  

 

5   “Sponsor Stockholders” means the entities set forth on Schedule I hereto and any of their  respective Affiliates or any related fund entities or employees and any of their respective  Permitted Transferees (in each case, who own, from time to time, Common Stock).    “Take-Down Notice” has the meaning ascribed to such term in Section 2.1(c)(ii).  Section 2. Registration Rights.  2.1. Demand Registrations.    (a) Demand Registrations Generally. This Section 2.1 sets forth the terms pursuant to   which a Sponsor Stockholder may request registration under the Securities Act of all or any  portion of the Registrable Securities held by such Sponsor Stockholder on Form S-1 or any  similar long form registration (“Long Form Registration”), and on Form S-3 or any similar short  form registration (“Short Form Registration”), if available. All registrations requested pursuant  to this Section 2.1 are referred to herein as “Demand Registrations.” If the Company shall  receive from (i) a Sponsor Stockholder at any time after the closing of the IPO or (ii) any other  Holder or group of Holders holding Registrable Securities at any time beginning on the first (1st)  anniversary of the closing of the IPO, a written request that the Company file a registration  statement with respect to all or a portion of the Registrable Securities (a “Demand Registration  Request,”) and the sender(s) of such request pursuant to this Agreement shall be known as the  “Initiating Holder(s)”), then the Company shall, within ten (10) Business Days of the receipt  thereof, give written notice (the “Demand Exercise Notice”) of such request to all other Holders,  and, subject to the limitations of this Section 2.1, use its reasonable best efforts to effect, as soon  as practicable, the registration under the Securities Act (including, without limitation, by means  of a Shelf Registration Statement thereunder if so requested and if the Company is then eligible  to use such a registration) of all Registrable Securities that the Holders request to be registered.  Each request for a Demand Registration shall specify the approximate number of Registrable  Securities requested to be registered.    (b) Long Form Registrations. At any time that the Company is not legally eligible to   file a registration statement with the SEC on Form S-3 or any similar short form registration  statement, each Sponsor Stockholder or a group of Sponsor Stockholders shall be entitled to  request an unlimited amount of Long Form Registrations subject to Section 2.1(e), the Company  shall effect such Long Form Registrations pursuant to Section 2.4 and the Company shall pay all  Expenses in connection with such Long Form Registrations.    (c) Short Form Registrations.    (i) In addition to the Long Form Registrations provided pursuant to Section  2.1(b), each Sponsor Stockholder or a group of Sponsor Stockholders shall be entitled to request  an unlimited number of Short Form Registrations, the Company shall effect such Short Form  Registrations pursuant to Section 2.4 and the Company shall pay all Expenses in connection with  any such Short Form Registration that covers Registrable Securities with a value of at least  $5,000,000. The Company shall use its best efforts to make Short Form Registrations on Form S- 3 available for the sale of Registrable Securities and if Short Form Registrations on Form S-3  

 

6   are available for the sale of Registerable Securities, each Sponsor Stockholder may only request  registration on Form S-3.    (ii) At any time that any Short Form Registration is effective, if any Holder or  group of Holders holding Registrable Securities delivers a notice to the Company (a “Take-  Down Notice”) stating that it intends to effect an underwritten offering or distribution of all or  part of its Registrable Securities included by it on any Short Form Registration (a “Shelf  Offering”) and stating the number of the Registrable Securities to be included in the Shelf  Offering, then the Company shall amend or supplement the Short Form Registration as may be  necessary in order to enable such Registrable Securities to be distributed pursuant to the Shelf  Offering (taking into account the inclusion of Registrable Securities by any other Holders thereof  pursuant to this Section 2.1(c)(ii)). In connection with any Shelf Offering, the Company shall,   promptly after receipt of a Take-Down Notice, deliver such notice to all other Holders of  Registrable Securities included in any Short Form Registration and permit each Holder to  include its Registrable Securities included on a Short Form Registration in the Shelf Of f ering if   such Holder notifies the proposing Holders and the Company within 2 Business Days after  delivery of the Take-Down Notice to such Holder, and in the event that the managing  underwriter advises the Holders of such securities in writing that in its or their view the total  number or dollar amount of Registrable Securities proposed to be sold in such offering is such as  to adversely affect the success of such offering (including, without limitation, securities proposed  to be included by other Holders of securities entitled to include securities in such offering  pursuant to piggyback registration rights described in Section 2.2 hereof), the managing  underwriter may limit the number of shares which would otherwise be included in such Shelf  Offering in the same manner as is described in Section 2.1(d).    (iii) Notwithstanding the foregoing, if any Sponsor Stockholder wishes to engage  in a Block Trade off of a Shelf Registration Statement on Form S-3 (either through filing an  automatic shelf registration statement or through a take-down from an already existing Shelf  Registration Statement), then notwithstanding the foregoing time periods, the Initiating Holder  only needs to notify the Company of the Block Trade on the day such offering is to  commence  and the Company shall notify the other Holders that did not initiate the Block Trade. The  Holders must elect whether or not to participate in such Block Trade on the day such offering is  to commence, and the Company shall as expeditiously as possible use its reasonable best ef forts  (including co-operating with such Holders with respect to the provision of necessary  information) to facilitate such Block Trade (which may close as early as two (2) Business Days  after the date it commences), provided, that in the case of such Block Trade, only Sponsor  Stockholders shall have a right to notice and to participate, and provided, further, that the  Sponsor Stockholder requesting such Block Trade shall use commercially reasonable ef forts to   work with the Company and the underwriters prior to making such request in order to  f acilitate   preparation of offering documents related to the Block Trade. For the avoidance of doubt,  Holders other than the Sponsor Stockholders shall not be entitled to receive notice of, or to elect  to participate in, a Block Trade or any Shelf Registration Statement or prospectus to  be used in   connection with such Block Trade.    (d) Demand Registration Priority. The Company shall not include in any Demand  Registration any securities which are not Registrable Securities without the prior written consent  of the Majority Participating Holders included in such registration. If a Demand Registration is  

 

7   an underwritten offering and the managing underwriters advise the Company in writing that,  in   their opinion, the number of Registrable Securities and, if permitted hereunder, other securities  requested to be included in such offering exceeds the number of Registrable Securities and other  securities, if any, which can be sold in an orderly manner in such offering within a price range  acceptable to the Majority Participating Holders to be included in such registration therein,  without adversely affecting the marketability of the offering, the Company shall include in  such  registration prior to the inclusion of any securities which are not Registrable Securities (i) f irst,  the number of Registrable Securities requested to be included which in the opinion of such  underwriters can be sold in an orderly manner within the price range of such offering, pro rata   among the respective Holders thereof on the basis of the number of Registrable Securities  requested to be included therein by each such Holder, and (ii) second, any other securities with   respect to which the Company has granted registration rights in accordance with Section 2.1(g)  hereof requested to be included in such registration, pro rata among the respective Holders  thereof on the basis of the amount of such securities requested to be included therein by each  such Holder. Without the consent of the Company and the Majority Participating Holders  included in such registration, any Persons other than Holders of Registrable Securities who  participate in Demand Registrations which are not at the Company’s expense must pay their  share of the Expenses as provided in Section 2.5 hereof.    (e) Restrictions on Demand Registrations. The Company shall not be obligated to  effect any Demand Registration (i) within thirty (30) days after a Demand Registration pursuant  to this Section 2.1 that has been declared or ordered effective, (ii) during the period any  applicable restrictions are still in effect pursuant to any Lock-Up Agreement that has not been  waived (or is not reasonably expected to be waived) by the underwriters party thereto, (iii) if  the  Company shall furnish to such Holders a certificate signed by the Chief Executive Officer of the  Company stating that in the good faith judgment of the Board (after consultation with external  legal counsel), any registration of Registrable Securities should not be made or continued (or  sales under a Shelf Registration Statement should be suspended) because (i) such registration (or  continued sales under a Shelf Registration Statement) would materially and adversely interfere  with any existing or potential material financing, acquisition, corporate reorganization or merger  or other material transaction or event involving the Company or any of its subsidiaries or (ii) the  Company is in possession of material non-public information, the premature disclosure of which  has been determined by the Board to not be in the Company’s best interests (in either case, a  “Valid Business Reason”) then (x) the Company may postpone filing a registration statement  relating to a Demand Registration Request or suspend sales under an existing Shelf Registration   Statement until five Business Days after such Valid Business Reason no longer exists, but in  no   event for more than 60 days after the date the Board determines a Valid Business Reason exists  and (y) in the case a registration statement has been filed relating to a Demand Registration  Request, if the Valid Business Reason has not resulted from actions taken by the Company, the  Company may cause such registration statement to be withdrawn and its effectiveness terminated  or may postpone amending or supplementing such registration statement until five Business  Days after such Valid Business Reason no longer exists, but in no event for more than 60 days  after the date the Board determines a Valid Business Reason exists; and the Company shall give  written notice to the Participating Holders of its determination to postpone or withdraw a  registration statement or suspend sales under a Shelf Registration Statement and of the f act that  the Valid Business Reason for such postponement, withdrawal or suspension no longer exists, in   each case, promptly after the occurrence thereof; provided, however, that the Company shall not  

 

8   defer its obligation in this manner for more than (A) 60 days in any 90 day period or (B) for  periods exceeding, in the aggregate, 90 days in any 12 month period, or (z) in the case of a  Demand Registration, consisting of a Long Form Registration, within 180 days after the effective  date of a previous Long Form Registration or a previous registration in which the Holders of  Registrable Securities were given piggyback rights pursuant to Section 2.2 and in which at least  75% of the number of Registrable Securities requested to be included by the Holders were  included in such registration. In the event the Company gives written notice of a Valid Business  Reason, the Holders of Registrable Securities initially requesting such Demand Registration shall  be entitled to withdraw such request and, if such request is withdrawn, such Demand  Registration shall not be treated as one of the permitted Demand Registrations hereunder and the  Company shall pay all Expenses in connection with such registration. Notwithstanding the  foregoing, the Company may postpone a Demand Registration hereunder only twice in any  twelve-month period.    If the Company shall give any notice of postponement, withdrawal or suspension of any  registration statement pursuant to clause (iv) of this Section 2.1(e), the Company shall not,   during the period of postponement, withdrawal or suspension, register any Common Stock, other  than pursuant to a registration statement on Form S-4 or S-8 (or an equivalent registration f orm  then in effect). Each Holder of Registrable Securities agrees that, upon receipt of any notice from  the Company that the Company has determined to withdraw any registration statement pursuant  to clause (iv) of this Section 2.1(e), such Holder will discontinue its disposition of Registrable  Securities pursuant to such registration statement and, if so directed by the Company, will deliver  to the Company (at the Company’s expense) all copies, other than permanent file copies, then in   such Holder’s possession of the prospectus covering such Registrable Securities that was in   effect at the time of receipt of such notice. If the Company shall have withdrawn or prematurely  terminated a registration statement filed pursuant to a Demand Registration (whether pursuant to  clause (iv) of this Section 2.1(e) or as a result of any stop order, injunction or other order or  requirement of the SEC or any other governmental agency or court), the Company shall not be  considered to have effected an effective registration for the purposes of this Agreement until the  Company shall have filed a new registration statement covering the Registrable Securities  covered by the withdrawn registration statement and such registration statement shall have been  declared effective and shall not have been withdrawn. If the Company shall give any notice of  withdrawal or postponement of a registration statement, the Company shall, not later than f ive  Business Days after the Valid Business Reason that caused such withdrawal or postponement no  longer exists (but in no event later than 60 days after the date of the postponement or  withdrawal), use its reasonable best efforts to effect the registration under the Securities Act of   the Registrable Securities covered by the withdrawn or postponed registration statement in  accordance with Section 2.1 (unless the Initiating Holders shall have withdrawn such request,  in   which case the Company shall not be considered to have effected an effective registration for the  purposes of this Agreement), and such registration shall not be withdrawn or postponed pursuant  to clause (iv) of this Section 2.1(c).    (f) Selection of Underwriters.   The Majority Participating Holders shall have the  right to, in consultation with the Company, select the investment banker(s), manager(s) and legal  counsel to administer the offering.  

 

9   (g) Other Registration Rights. From and after the date of this Agreement, the  Company shall not, without the prior written consent of Holders that hold or Beneficially  Own  more than 50% of the Registrable Securities, enter into any agreement with any holder or  prospective holder of any securities of the Company giving such holder or prospective holder  any registration rights the terms of which are more favorable taken as a whole than the  registration rights granted to the Holders hereunder unless the Company shall also give such  rights to such Holders.    2.2. Piggyback Registrations.    (a) Piggyback Rights. If the Company at any time proposes to file a registration  statement with respect to any offering of its securities for its own account or for the account of   any Person who holds its securities (other than (i) a registration on Form S-4 or S-8 or any  successor form to such forms, (ii) a registration of securities solely relating to an offering and  sale to employees, directors or consultants of the Company pursuant to any employee stock plan   or other employee benefit plan arrangement, (iii) a registration of non-convertible debt securities,  or (iv) any Demand Registration made pursuant to Section 2.1(a) or Section 2.1(b) herein) (a  “Piggyback Registration”) then, as expeditiously as reasonably possible (but in no event less than  ten (10) days following the date of filing such registration statement), the Company shall give  written notice (the “Incidental Registration Notice”) of such proposed filing to all Holders of  Registrable Securities, and such notice shall offer the Holder the opportunity to register such  number of Registrable Securities as each such Holder may request in writing. Subject to Section  2.2(c) and Section 2.2(d), the Company shall include in such registration statement all such  Registrable Securities which are requested to be included therein within fifteen (15) days after  the Incidental Registration Notice is given to such Holders.    (b) Priority on Primary Registrations. If a Piggyback Registration is an underwritten  primary registration on behalf of the Company, and the managing underwriters advise the  Company in writing that in their opinion the number of securities requested to be included in  such registration exceeds the number which can be sold in an orderly manner in  such offering  within a price range acceptable to the Company, the Company shall include, after including all of  the primary securities the Company desires to include in such registration, (i) first, the number of  Registrable Securities requested to be included which in the opinion of such underwriters can be  sold in an orderly manner within the price range of such offering, pro rata among the respective  Holders thereof on the basis of the number of Registrable Securities requested to be included  therein by each such Holder, and (ii) second, other securities with respect to which the Company  has granted registration rights in accordance with Section 2.1(g) hereof requested to be included  in such registration, pro rata among the respective Holders thereof on the basis of the amount of  such securities requested to be included therein by each such Holder.    (c) Priority on Secondary Registrations. If a Piggyback Registration is an  underwritten secondary registration on behalf of Holders of the Company’s securities, and the  managing underwriters advise the Company in writing that in their opinion the number of  securities requested to be included in such registration exceeds the number which can be sold in  an orderly manner in such offering within a price range acceptable to the consent of the Majority   Participating Holders to be included in such registration, the Company shall include in such  registration (i) first, the securities requested to be included therein by the Holders requesting  

 

10   such registration and the Registrable Securities requested to be included in such registration, pro   rata among the Holders of such securities and such Registrable Securities on the basis of the  number of shares requested to be included therein by each such Holder, and (ii) second, other  securities with respect to which the Company has granted registration rights in accordance with   Section 2.1(g) hereof requested to be included in such registration, pro rata among the respective  Holders thereof on the basis of the amount of such securities requested to be included therein by  each such Holder.    (d) Selection of Underwriters. If any Piggyback Registration is an underwritten  secondary offering on behalf of the Holders of the Company’s securities, the selection of  investment banker(s) and manager(s) for the offering must be approved in writing by the Sponsor  Stockholders.    (e) Other Registrations. If the Company has previously filed a registration statement  with respect to Registrable Securities pursuant to Section 2.1 or pursuant to this Section 2.2, and  if such previous registration has not been withdrawn or abandoned or all shares offered  thereunder have been sold, the Company shall not file or cause to be effected any other  registration of any of its equity securities or securities convertible or exchangeable into or  exercisable for its equity securities under the Securities Act (except on Form S-8 or any  successor form), whether on its own behalf or at the request of any Holder or Holders of such  securities, until a period of at least 180 days has elapsed from the effective date of such previous  registration.    2.3. Holdback Agreements.    (a) Each Holder agrees not to offer, sell, contract to sell, pledge or otherwise dispose  of, directly or indirectly, any equity securities of the Company, or any securities convertible into   or exchangeable or exercisable for such securities, enter into a transaction which would have the  same effect or would otherwise effect a public sale or distribution (including sales pursuant to   Rule 144), or enter into any swap, hedge or other arrangement that transfers, in whole or in part,   any of the economic consequences of ownership of such securities, whether any such  aforementioned transaction is to be settled by delivery of such securities or other securities, in   cash or otherwise, or publicly disclose the intention to make any such offer, sale, pledge or  disposition, or to enter into any such transaction, swap, hedge or other arrangement, in each case  during the period beginning seven days before and ending 90 days after the effective date of any  underwritten public offering of any equity securities of the Company (including Demand and  Piggyback Registrations) (or such longer or shorter period (but not ending later than 180 days  after effectiveness) as may be requested in writing by the managing underwriter and agreed to in  writing by the Company) (the “Market Standoff Period”), except as part of such underwritten  registration if otherwise permitted, unless the underwriters managing the underwritten public  offering otherwise agree and such agreement permits all Holders of Registrable Securities to sell  such securities on a pro rata basis. In addition, each Holder of Registrable Securities agrees to  execute any further letters, agreements and/or other documents reasonably requested by the  Company or its underwriters which are consistent with the terms of this Section 2.3(a). The  Company may impose stop-transfer instructions with respect to securities subject to the  foregoing restrictions until the end of such Market Standoff Period.  

 

11   (b) The Company (i) shall not effect any public sale or distribution of its equity  securities, or any securities convertible into or exchangeable or exercisable for such equity  securities, during the period beginning seven days before and ending 180 days after the effective  date of any underwritten public offering of the Company’s equity securities (including Demand  and Piggyback Registrations) (except as part of such underwritten registration or pursuant to  registrations on Form S-4 or S-8 or any successor form), unless the underwriters managing the  registered public offering otherwise agree, and (ii) shall cause each Holder of its equity  securities, or any securities convertible into or exchangeable or exercisable for equity securities,  purchased or otherwise acquired from the Company at any time after the date of this Agreement  (other than in a registered public offering) to agree not to effect any public sale or distribution  (including sales pursuant to Rule 144) of any such securities during any such period (except as  part of such underwritten registration, if otherwise permitted), unless the underwriters managing  the registered public offering otherwise agree and such agreement permits all Holders of  Registrable Securities to sell such securities on a pro rata basis.    2.4. Registration Procedures. If and whenever the Company is required by the  provisions of this Agreement to effect or cause the registration of any Registrable Securities  under the Securities Act as provided in this Agreement, the Company shall use its reasonable  best efforts to effect the registration and the widely disseminated sale of such Registrable  Securities in accordance with the intended method of disposition thereof, and pursuant thereto  the Company shall, as expeditiously as possible:    (a) prepare and file with the SEC and FINRA all filings required for the  consummation of the offering, including preparing and filing with the SEC a registration  statement on than appropriate form of the SEC for the disposition of such Registrable Securities  in accordance with the intended method of disposition thereof, which registration form (i) shall  be selected by the Company and (ii) shall, in the case of a shelf registration, be available for the  sale of the Registrable Securities by the selling Holders thereof and such registration statement  shall comply as to form in all material respects with the requirements of the applicable  registration form and include all financial statements required by the SEC to be filed therewith,  and the Company shall use its reasonable best efforts to cause such registration statement to  become effective and remain continuously effective from the date such registration statement is  declared effective until the earliest to occur (A) the first date as of which all of  the Registrable  Securities included in the registration statement have been sold or (B) a period of 90 days in  the  case of an underwritten offering effected pursuant to a registration statement other than a Shelf   Registration Statement and a period of three years in the case of a Shelf Registration Statement  (provided that before filing a registration statement or prospectus or any amendments or  supplements thereto, the Company shall furnish to the counsel selected by the Majority  Participating Holders covered by such registration statement copies of all such documents  proposed to be filed, which documents shall be subject to the review and comment of such  counsel);    (b) notify each Holder of Registrable Securities of the effectiveness of each  registration statement filed hereunder and prepare and file with the SEC such amendments and  supplements to such registration statement and the prospectus used in connection therewith and  such free writing prospectuses and Exchange Act reports as may be necessary to keep such  registration statement continuously effective for the period set forth in Section 2.4(a) and to  

 

12   comply with the provisions of the Securities Act with respect to the sale or other disposition of  all Registrable Securities covered by such registration statement in accordance with the intended  methods of disposition by the seller or sellers thereof set forth in such registration statement  (and, in connection with any Shelf Registration Statement, file one or more prospectus  supplements pursuant to Rule 424 under the Securities Act covering Registrable Securities upon  the request of one or more Holders wishing to offer or sell Registrable Securities whether in  an   underwritten offering or otherwise);    (c) furnish to each seller of Registrable Securities such number of copies of such  registration statement, each amendment and supplement thereto, the prospectus included in such  registration statement (including each preliminary prospectus) and such other documents as such  seller may reasonably request in order to facilitate the disposition of the Registrable Securities  owned by such seller;    (d) use its reasonable best efforts to register or qualify such Registrable Securities  under such other securities or blue sky laws of such jurisdictions as any seller reasonably  requests and do any and all other acts and things which may be reasonably necessary or  advisable to enable such seller to consummate the disposition in such jurisdictions of the  Registrable Securities owned by such seller (provided that the Company shall not be required to  (i) qualify generally to do business in any jurisdiction where it would not otherwise be required  to qualify but for this subparagraph, (ii) subject itself to taxation in any such jurisdiction or (iii)  consent to general service of process in any such jurisdiction);    (e) promptly notify each seller of such Registrable Securities, at any time when a  prospectus relating thereto is required to be delivered under the Securities Act, of the happening  of any event as a result of which the prospectus included in such registration statement contains  an untrue statement of a material fact or omits any fact necessary to make the statements therein  not misleading, and, at the request of any such seller, the Company shall prepare a supplement or  amendment to such prospectus so that, as thereafter delivered to the purchasers of such  Registrable Securities, such prospectus shall not contain an untrue statement of a material fact or  omit to state any fact necessary to make the statements therein not misleading;    (f) promptly notify each Participating Holder and each managing underwriter, if any:  (i) when the registration statement, any pre-effective amendment, the prospectus or any  prospectus supplement related thereto, any post-effective amendment to the registration  statement or any free writing prospectus has been filed and, with respect to the registration  statement or any post-effective amendment, when the same has become effective; (ii) of any  request by the SEC or state securities authority for amendments or supplements to the  registration statement or the prospectus related thereto or for additional information; (iii) of  the  issuance by the SEC of any stop order suspending the effectiveness of the registration statement  or the initiation of any proceedings for that purpose; (iv) of the receipt by the Company of  any  notification with respect to the suspension of the qualification of any Registrable Securities f or  sale under the securities or state “blue sky” laws of any jurisdiction or the initiation of any  proceeding for such purpose; (v) of the existence of any fact of which the Company becomes  aware which results in the registration statement or any amendment thereto, the prospectus  related thereto or any supplement thereto, any document incorporated therein by reference, any   free writing prospectus or the information conveyed to any purchaser at the time of sale to such  

 

13   purchaser containing an untrue statement of a material fact or omitting to state a material fact  required to be stated therein or necessary to make any statement therein not misleading; and (vi)  if at any time the representations and warranties contemplated by any underwriting agreement,   securities sale agreement, or other similar agreement, relating to the offering shall cease to be  true and correct in all material respects; and, if the notification relates to an event described in  clause (v), the Company shall promptly prepare and furnish to each such seller and each  underwriter, if any, a reasonable number of copies of a prospectus supplemented or amended so  that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus  shall not include an untrue statement of a material fact or omit to state a material fact required to  be stated therein or necessary to make the statements therein in the light of the circumstances  under which they were made not misleading;    (g) cause all such Registrable Securities to be listed on each securities exchange on  which similar securities issued by the Company are then listed and, if not so listed, cause all such  Registrable Securities to be listed on a national securities exchange and, without limiting the  generality of the foregoing, to arrange for at least two market makers to register as such with  respect to such Registrable Securities with FINRA;    (h) cause its senior management, officers and employees to participate in, and to  otherwise facilitate and cooperate with the preparation of the registration statement and  prospectus and any amendments or supplements thereto (including participating in meetings,  drafting sessions, due diligence sessions and rating agency presentations) taking into account the  Company’s reasonable business needs;    (i) provide a transfer agent and registrar for all such Registrable Securities not later  than the effective date of such registration statement;    (j) enter into such customary agreements (including underwriting agreements in  customary form) and take all such other actions as the Majority Participating Holders being sold   or the underwriters, if any, reasonably request in order to expedite or facilitate the disposition of  such Registrable Securities (including effecting a stock split or a combination of shares);    (k) in any transaction involving the use of an underwriter or underwriters, use its  reasonable best efforts (i) to obtain an opinion from the Company’s counsel, including local  and/or regulatory counsel, and a comfort letter and updates thereof from the Company’s  independent public accountants who have certified the Company’s financial statements included  or incorporated by reference in such registration statement, in each case, in customary form and  covering such matters as are customarily covered by such opinions and comfort letters  (including, in the case of such comfort letter, events subsequent to the date of such financial  statements) delivered to underwriters in underwritten public offerings, which opinion and letter  shall be dated the dates such opinions and comfort letters are customarily dated and otherwise  reasonably satisfactory to the underwriters, if any, and (ii) furnish to each Holder participating in   the offering and to each underwriter, if any, a copy of such opinion and letter addressed to  such   underwriter;    (l) make available for inspection by any seller of Registrable Securities, any  underwriter participating in any disposition pursuant to such registration statement and any  

 

14   attorney, accountant or other agent retained by any such seller or underwriter, all f inancial and  other records, pertinent corporate documents and properties of the Company, and cause the  Company’s officers, directors, employees and independent accountants to supply all information   reasonably requested by any such seller, underwriter, attorney, accountant or agent in connection  with such registration statement;    (m) deliver promptly to counsel for each Participating Holder and to each managing  underwriter, if any, copies of all correspondence between the SEC and the Company, its counsel  or auditors and all memoranda relating to discussions with the SEC or its staff with respect to the  registration statement, and, upon receipt of such confidentiality agreements as the Company may  reasonably request, make reasonably available for inspection by counsel for each Participating  Holder, by counsel for any underwriter, participating in any disposition to be effected pursuant to  such registration statement and by any accountant or other agent retained by any Participating  Holder or any such underwriter, all pertinent financial and other records, pertinent corporate  documents and properties of the Company, and cause all of the Company’s officers, directors  and employees to supply all information reasonably requested by any such counsel for a  Participating Holder, counsel for an underwriter, accountant or agent in connection with such  registration statement;    (n) use its reasonable best efforts to obtain the prompt withdrawal of any order  suspending the effectiveness of the registration statement, or the prompt lifting of any suspension  of the qualification of any of the Registrable Securities for sale in any jurisdiction, in each case,  as promptly as reasonably practicable;    (o) provide a CUSIP number for all Registrable Securities, not later than the effective  date of the registration statement;    (p) use its best efforts to make available its senior management, employees and  personnel for participation in “road shows” and other marketing efforts and otherwise provide  reasonable assistance to the underwriters (taking into account the needs of the Company’s  businesses and the requirements of the marketing process) in marketing the Registrable  Securities in any underwritten offering;    (q) promptly prior to the filing of any document which is to be incorporated by  reference into the registration statement or the prospectus (after the initial filing of such  registration statement), and prior to the filing of any free writing prospectus, provide copies of   such document to counsel for each Participating Holder and to each managing underwriter, if  any, and make the Company’s representatives reasonably available for discussion of such  document and make such changes in such document concerning the Participating Holders prior  to the filing thereof as counsel for the Participating Holders or underwriters may reasonably  request;    (r) furnish to counsel for each Participating Holder and to each managing  underwriter, without charge, at least one signed copy of the registration statement and any post-  effective amendments or supplements thereto, including financial statements and schedules, all  documents incorporated therein by reference, the prospectus contained in such registration  statement (including each preliminary prospectus and any summary prospectus), any other  

 

15   prospectus filed under Rule 424 under the Securities Act and all exhibits (including those  incorporated by reference) and any free writing prospectus utilized in connection therewith;    (s) cooperate with the Participating Holders and the managing underwriter, if any, to   facilitate the timely preparation and delivery of certificates not bearing any restrictive legends  representing the Registrable Securities to be sold, and cause such Registrable Securities to be  issued in such denominations and registered in such names in accordance with the underwriting  agreement at least two Business Days prior to any sale of Registrable Securities to the  underwriters or, if not an underwritten offering, in accordance with the instructions of the  Participating Holders at least two Business Days prior to any sale of Registrable Securities and  instruct any transfer agent and registrar of Registrable Securities to release any stop transfer  orders in respect thereof;    (t) cooperate with any due diligence investigation by any manager, underwriter or  Participating Holder and make available such documents and records of    (u) the Company and its Subsidiaries that they reasonably request (which, in the case  of the Participating Holder, may be subject to the execution by the Participating Holder of a  customary confidentiality agreement in a form which is reasonably satisfactory to the Company);    (v) take no direct or indirect action prohibited by Regulation M under the Exchange  Act;    (w) use its best efforts to comply with all applicable rules and regulations of the SEC,  and make available to its security Holders, as soon as reasonably practicable, an earnings  statement covering the period of at least twelve months beginning with the first day of the  Company’s first full calendar quarter after the effective date of the registration statement, which  earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule  158 thereunder;    (x) permit any Holder of Registrable Securities which Holder, in its sole and  exclusive judgment, might be deemed to be an underwriter or a controlling person of the  Company, to participate in the preparation of such registration or comparable statement and to   require the insertion therein of material, furnished to the Company in writing, which in the  reasonable judgment of such Holder and its counsel should be included;    (y) in the event of the issuance of any stop order suspending the ef fectiveness of a   registration statement, or of any order suspending or preventing the use of any related prospectus  or suspending the qualification of any of the Company’s equity securities included in such  registration statement for sale in any jurisdiction, the Company shall use its best efforts promptly  to obtain the withdrawal of such order;    (z) use its best efforts to cause such Registrable Securities covered by such  registration statement to be registered with or approved by such other governmental agencies or  authorities as may be necessary to enable the sellers thereof to consummate the disposition of   such Registrable Securities;  

 

16   (aa)      obtain a cold comfort letter from the Company’s independent public accountants  in customary form and covering such matters of the type customarily covered by cold comfort  letters as the Majority Participating Holders reasonably request; provided, that such Registrable  Securities constitute at least 10% of the securities covered by such registration statement; and    (bb)     take all such other commercially reasonable actions as are necessary or advisable  in order to expedite or facilitate the disposition of such Registrable Securities;    (cc) take all reasonable action to ensure that any free writing prospectus utilized in  connection with any registration covered by Section 2.1 or 2.2 complies in all material respects  with the Securities Act, is filed in accordance with the Securities Act to the extent required  thereby, is retained in accordance with the Securities Act to the extent required thereby and,  when taken together with the related prospectus, will not contain any untrue statement of a  material fact or omit to state a material fact necessary to make the statements therein, in light of   the circumstances under which they were made, not misleading; and    (dd) in connection with any underwritten offering, if at any time the information  conveyed to a purchaser at the time of sale includes any untrue statement of a material f act or  omits to state any material fact necessary in order to make the statements therein, in light of  the  circumstances under which they were made, not misleading, promptly file with the SEC such  amendments or supplements to such information as may be necessary so that the statements as so  amended or supplemented will not, in light of the circumstances, be misleading.    2.5. Registration Expenses. All Expenses incurred in connection with any registration,  filing, qualification or compliance pursuant to Article 2 shall be borne by the Company, whether  or not a registration statement becomes effective. All underwriting discounts and all selling  commissions relating to securities registered by the Holders shall be borne by the holders or such  securities pro rata in accordance with the number of shares sold in the offering by such  Participating Holder.    2.6. No Required Sale. Nothing in this Agreement shall be deemed to create an  independent obligation on the part of any Holder to sell any Registrable Securities pursuant to   any effective registration statement.    2.7. Indemnification.    (a) In the event of any registration and/or offering of any securities of the Company  under the Securities Act pursuant to this Article 2, the Company will, and hereby agrees to , and  hereby does, indemnify and hold harmless, to the fullest extent permitted by law, each Holder, its  directors, officers, fiduciaries, trustees, employees, shareholders, members or general and limited  partners (and the directors, officers, fiduciaries, employees, shareholders, members, beneficiaries  or general and limited partners thereof), any underwriter (as defined in the Securities Act) for  such Holder and each Person, if any, who controls such Holder or underwriter within the  meaning of the Securities Act or Exchange Act, from and against any and all losses, claims,  damages or liabilities, joint or several, actions or proceedings (whether commenced or  threatened) and expenses (including reasonable fees of counsel and any amounts paid in any  settlement effected with the Company’s consent, which consent shall not be unreasonably  

 

17   withheld or delayed) to which each such indemnified party may become subject under the  Securities Act or otherwise in respect thereof (collectively, “Claims”), insofar as such Claims  arise out of or are based upon (i) any untrue statement or alleged untrue statement of  a material  fact contained in any registration statement under which such securities were registered under the  Securities Act or the omission or alleged omission to state therein a material fact required to  be  stated therein or necessary to make the statements therein not misleading, (ii) any untrue  statement or alleged untrue statement of a material fact contained in any preliminary or final  prospectus or any amendment or supplement thereto, together with the documents incorporated   by reference therein, or any free writing prospectus utilized in connection therewith, or the  omission or alleged omission to state therein a material fact required to be stated therein or  necessary in order to make the statements therein, in the light of the circumstances under which  they were made, not misleading, or (iii) any untrue statement or alleged untrue statement of a  material fact in the information conveyed by the Company to any purchaser at the time of the  sale to such purchaser, or the omission or alleged omission to state therein a material fact  required to be stated therein, or (iv) any violation by the Company of any federal, state or  common law rule or regulation applicable to the Company and relating to action required of or  inaction by the Company in connection with any such registration, and the Company will  reimburse any such indemnified party for any legal or other expenses reasonably incurred by  such indemnified party in connection with investigating or defending any such Claim as such  expenses are incurred; provided, however, that the Company shall not be liable to any such  indemnified party in any such case to the extent such Claim arises out of or is based upon any  untrue statement or alleged untrue statement of a material fact or omission or alleged omission of  a material fact made in such registration statement or amendment thereof or supplement thereto  or in any such prospectus or any preliminary or final prospectus or free writing prospectus in  reliance upon and in conformity with written information furnished to the Company by or on  behalf of such indemnified party specifically for use therein. Such indemnity and reimbursement  of expenses shall remain in full force and effect regardless of any investigation made by or on  behalf of such indemnified party and shall survive the transfer of such securities by such seller.    (b) Each Participating Holder shall, severally and not jointly, indemnify and hold  harmless (in the same manner and to the same extent as set forth in paragraph (a) of this Section  2.7) to the extent permitted by law the Company, its officers and directors, each Person  controlling the Company within the meaning of the Securities Act, each underwriter (within the  meaning of the Securities Act) of the Company’s securities covered by such a registration  statement, any Person who controls such underwriter, and any other Holder selling securities in   such registration statement and each of its directors, officers, partners or agents or any Person  who controls such Holder with respect to any untrue statement or alleged untrue statement of any  material fact in, or omission or alleged omission of any material fact from, such registration  statement, any preliminary or final prospectus contained therein, or any amendment or  supplement thereto, or any free writing prospectus utilized in connection therewith, if such  statement or alleged statement or omission or alleged omission was made in reliance upon and in  conformity with written information furnished to the Company or its representatives by or on  behalf of such Participating Holder, specifically for use therein and reimburse such indemnified  party for any legal or other expenses reasonably incurred in connection with investigating or  defending any such Claim as such expenses are incurred; provided, however, that the aggregate  amount which any such Participating Holder shall be required to pay pursuant to this Section  2.7(b) and 2.7(d) shall in no case be greater than the amount of the net proceeds actually received  

 

18   by such Participating Holder upon the sale of the Registrable Securities pursuant to the  registration statement giving rise to such Claim. The Company and each Participating Holder  hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such  Participating Holders to the contrary, for all purposes of this Agreement, the only information  furnished or to be furnished to the Company for use in any such registration statement,  preliminary or final prospectus or amendment or supplement thereto or any free writing  prospectus are statements specifically relating to (a) the Beneficial Ownership of Common Stock  by such Participating Holder and its Affiliates and (b) the name and address of such Participating  Holder. Such indemnity and reimbursement of expenses shall remain in full force and effect  regardless of any investigation made by or on behalf of such indemnified party and shall survive  the transfer of such securities by such Holder.    (c) Any Person entitled to indemnification under this Agreement shall notify  promptly the indemnifying party in writing of the commencement of any action or proceeding  with respect to which a claim for indemnification may be made pursuant to this Section 2.7, but  the failure of any indemnified party to provide such notice shall not relieve the indemnifying  party of its obligations under the preceding paragraphs of this Section 2.7, except to the extent  the indemnifying party is materially and actually prejudiced thereby and shall not relieve the  indemnifying party from any liability which it may have to any indemnified party otherwise than  under this Article 2. In case any action or proceeding is brought against an indemnified party, the  indemnifying party shall be entitled to (x) participate in such action or proceeding and (y) unless,  in the reasonable opinion of outside counsel to the indemnified party, a conflict of interest  between such indemnified and indemnifying parties may exist in respect of such claim, assume  the defense thereof jointly with any other indemnifying party similarly notified, with counsel  reasonably satisfactory to such indemnified party. The indemnifying party shall promptly notify   the indemnified party of its decision to assume the defense of such action or proceeding. If ,  and  after, the indemnified party has received such notice from the indemnifying party, the  indemnifying party shall not be liable to such indemnified party for any legal or other expenses  subsequently incurred by such indemnified party in connection with the defense of such action or  proceeding other than reasonable costs of investigation; provided, however, that (i) if the  indemnifying party fails to take reasonable steps necessary to defend diligently the action or  proceeding within 10 days after receiving notice from such indemnified party that the  indemnified party believes it has failed to do so; or (ii) if such indemnified party who is a  defendant in any action or proceeding which is also brought against the indemnifying party  reasonably shall have concluded that there may be one or more legal or equitable defenses  available to such indemnified party which are not available to the indemnifying party  or which   may conflict with those available to another indemnified party with respect to such Claim; or (iii)  if representation of both parties by the same counsel is otherwise inappropriate under applicable  standards of professional conduct, then, in any such case, the indemnified party  shall have the  right to assume or continue its own defense as set forth above (but with no more than one firm of  counsel for all indemnified parties in each jurisdiction, except to the extent any indemnified  party or parties reasonably shall have made a conclusion described in clause (ii) or (iii) above)  and the indemnifying party shall be liable for any expenses therefor. No indemnifying party  shall, without the written consent of the indemnified party, effect the settlement or compromise  of, or consent to the entry of any judgment with respect to, any pending or threatened action or  claim in respect of which indemnification or contribution may be sought hereunder (whether or  not the indemnified party is an actual or potential party to such action or claim), unless such  

 

19   settlement or compromise (i) includes an unconditional release of such indemnified party from  all liability on any claims that are the subject matter of such action or claim and (ii) does not  include a statement as to, or an admission of, fault, culpability or a failure to act by or on behalf  of an indemnified party. The indemnity obligations contained in Sections 2.7(a) and 2.7(b) shall  not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if   such settlement is effected without the consent of the indemnified party which consent shall not  be unreasonably withheld.    (d) If for any reason the foregoing indemnity is held by a court of competent  jurisdiction to be unavailable to an indemnified party under Section 2.7(a) or (b), then each  applicable indemnifying party shall contribute to the amount paid or payable to such indemnified  party as a result of any Claim in such proportion as is appropriate to reflect the relative fault of  the indemnifying party, on the one hand, and the indemnified party, on the other hand, with  respect to such Claim as well as any other relevant equitable considerations. The relative f ault  shall be determined by a court of law by reference to, among other things, whether the untrue or  alleged untrue statement of a material fact or the omission or alleged omission to state a material  fact relates to information supplied by the indemnifying party or the indemnified party  and the  parties’ relative intent, knowledge, access to information and opportunity to correct or prevent  such untrue statement or omission. If, however, the allocation provided in the second preceding  sentence is not permitted by applicable law, then each indemnifying party shall contribute to  the  amount paid or payable by such indemnified party in such proportion as is appropriate to ref lect  not only such relative faults but also the relative benefits of the indemnifying party and the  indemnified party as well as any other relevant equitable considerations. The parties hereto agree  that it would not be just and equitable if any contribution pursuant to this Section 2.7(d) were to   be determined by pro rata allocation or by any other method of allocation which does not take  account of the equitable considerations referred to in the preceding sentences of this Section  2.7(d). The amount paid or payable in respect of any Claim shall be deemed to include any legal  or other expenses reasonably incurred by such indemnified party in connection with investigating  or defending any such Claim. No Person guilty of fraudulent misrepresentation (within the  meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person  who was not guilty of such fraudulent misrepresentation. Notwithstanding anything in this  Section 2.7(d) to the contrary, no indemnifying party (other than the Company) shall be required   pursuant to this Section 2.7(d) to contribute any amount greater than the amount of the net  proceeds actually received by such indemnifying party upon the sale of the Registrable Securities  pursuant to the registration statement giving rise to such Claim, less the amount of any  indemnification payment made by such indemnifying party pursuant to Section 2.7(b).    (e) The indemnity and contribution agreements contained herein shall be in addition   to any other rights to indemnification or contribution which any indemnified party may have  pursuant to law or contract (except as set forth in subsection (f) below) and shall remain  operative and in full force and effect regardless of any investigation made or omitted by or on  behalf of any indemnified party and shall survive the transfer of the Registrable Securities by any  such party and the completion of any offering of Registrable Securities in a registration  statement.    (f) If a customary underwriting agreement shall be entered into in connection with  any registration pursuant to Section 2.1 or 2.2 and certain indemnity, contribution and related  

 

20   provisions between the Company and the Participating Holder, the indemnity, contribution and  related provisions set forth therein shall supersede the indemnification and contribution  provisions set forth in this Section 2.7.    2.8. Participation in Underwritten Registrations. No Person may participate in any  registration hereunder which is underwritten unless such Person (i) agrees to sell such Person’s  Registrable Securities on the basis provided in any underwriting arrangements approved by the  Person or Persons entitled hereunder to approve such arrangements and (ii) completes and  executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other  documents required under the terms of such underwriting arrangements; provided, that no Holder  of Registrable Securities included in any underwritten registration shall be required to make any  representations or warranties to the Company or the underwriters (other than representations and  warranties regarding such Holder and such Holder’s intended method of distribution) or to  undertake any indemnification obligations, or provide any information, to the Company or the  underwriters with respect thereto, except as otherwise provided in Section 2.8 hereof.    2.9. No Inconsistent Agreements. The Company shall not hereafter enter into any  agreement with respect to its securities that is inconsistent with or violates the rights granted to  the Holders in this Agreement.    2.10. Adjustments Affecting Registrable Securities. The Company shall not take any  action, or permit any change to occur, with respect to its securities which would adversely affect  the ability of the Holders of Registrable Securities to include such Registrable Securities in a  registration undertaken pursuant to this Agreement or which would adversely affect the  marketability of such Registrable Securities in any such registration (including, without  limitation, effecting a stock split or a combination of shares).    Section 3. General    3.1. Rule 144 and Rule 144A. If the Company shall have filed a registration statement  pursuant to the requirements of Section 12 of the Exchange Act or a registration statement  pursuant to the requirements of the Securities Act in respect of the Common Stock or Common  Stock Equivalents, the Company covenants that (i) so long as it remains subject to the reporting  provisions of the Exchange Act, it will timely file the reports required to be filed by it under the  Securities Act or the Exchange Act (including, but not limited to, the reports under Sections 13  and 15(d) of the Exchange Act referred to in subparagraph (c)(1)(i) of Rule 144 promulgated by  the SEC under the Securities Act, as such Rule may be amended (“Rule 144”)) or, if the  Company is not required to file such reports, it will, upon the request of any Holder, make  publicly available other information so long as necessary to permit sales by such Holder under  Rule 144, Rule 144A promulgated by the SEC under the Securities Act, as such Rule may be  amended (“Rule 144A”), or any similar rules or regulations hereafter adopted by the SEC, and  (ii) it will take such further action as any Holder may reasonably request, all to the extent  required from time to time to enable such Holder to sell Registrable Securities without  registration under the Securities Act within the limitation of the exemptions provided by (A)  Rule 144, (B) Rule 144A or (C) any similar rule or regulation hereafter adopted by the SEC.  Upon the request of any Holder of Registrable Securities, the Company will deliver to such  Holder a written statement as to whether it has complied with such requirements.  

 

21   3.2. Nominees for Beneficial Owners. If Registrable Securities are held by a nominee  for the Beneficial Owner thereof the Beneficial Owner thereof may, at its option, be treated as  the Holder of such Registrable Securities for purposes of any request or other action by any  Holder or Holders of Registrable Securities pursuant to this Agreement (or any determination of  any number or percentage of shares constituting Registrable Securities held by any Holder or  Holders of Registrable Securities contemplated by this Agreement), provided that the Company  shall have received assurances reasonably satisfactory to it of such Beneficial Ownership.    3.3. Amendments and Waivers. Except as otherwise provided herein, no  modification, amendment or waiver of any provision of this Agreement shall be effective against  the Company or any Holder unless such modification, amendment or waiver is approved in  writing by (i) the Company and (ii) the Holders holding or Beneficially Owning more than 50%  of the Registrable Securities then held by all Holders; provided that any amendment,  modification, supplement or waiver of any of the provisions of this Agreement which  disproportionately and materially adversely affects any Holder shall not be effective without the  written approval of such Holder. For purposes of the foregoing proviso, each Sponsor  Stockholder shall be deemed to be disproportionately materially adversely affected if any  material right specifically granted to any such Person herein (even if such right is granted to  one  or more other Sponsor Stockholder), is amended, modified, supplemented or waived. No waiver  of any of the provisions of this Agreement shall be deemed to or shall constitute a waiver of any  other provision hereof (whether or not similar). No failure or delay on the part of any party in   exercising any right, power or privilege hereunder shall operate as a waiver thereof or of any  other or future exercise of any such right, power or privilege.    3.4. Notices.    (a) All notices and other communications under this Agreement shall be in writing  and shall be deemed given (i) when delivered personally by hand (with written confirmation of  receipt), (ii) when sent by e-mail, (iii) when received or rejected by the addressee if sent by  registered or certified mail, postage prepaid, return receipt requested, or (iv) one Business Day  following the day sent by reputable overnight courier (with written confirmation of  receipt),  in   each case at the following addresses (or to such other address as a party may have specif ied by  notice given to the other party pursuant to this provision):    (i) if to the Company, to:    First Watch Restaurant Group, Inc.  8725 Pendery Place, Suite 201  Bradenton, FL 34201  Attention: Jay Wolszczak  E-mail: JWolszczak@FIRSTWATCH.com  

 

22   with a copy, which shall not constitute notice, to:    Weil, Gotshal & Manges LLP  767 Fifth Avenue  New York, NY 10153  Attention: Alexander D. Lynch and Ashley Butler  Email: alex.lynch@weil.com; ashley.butler@weil.com    (ii) if to the Holders, to the address indicated in the records of the Company.    (b) Whenever any notice is required to be given by law or this Agreement, a written   waiver thereof, signed by the Person entitled to notice, whether before or after the time stated  therein, shall be deemed equivalent to the giving of such notice.    3.5. Successors and Assigns. Except as otherwise provided herein, this Agreement  shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and the  respective successors, permitted assigns, heirs and personal representatives of the parties hereto,  whether so expressed or not. This Agreement may not be assigned by the Company without the  prior written consent of the Sponsor Stockholders. Each Holder shall have the right to assign all  or part of its or his rights and obligations under this Agreement only in accordance with transfers  of Registrable Securities to such Holder’s Permitted Transferees. Upon any such assignment,  such assignee shall have and be able to exercise and enforce all rights of the assigning Holder  which are assigned to it and, to the extent such rights are assigned, any reference to the assigning  Holder shall be treated as a reference to the assignee. If any Holder shall acquire additional  Registrable Securities, such Registrable Securities shall be subject to all of the terms, and entitled  to all the benefits, of this Agreement.    3.6. Entire Agreement. This Agreement and the other documents referred to herein or  delivered pursuant hereto which form part hereof constitute the entire agreement and  understanding between the parties hereto and supersedes all prior agreements and understandings  relating to the subject matter hereof.    3.7. Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.    (a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND  CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS AND JUDICIAL  DECISIONS OF THE STATE OF DELAWARE APPLICABLE TO AGREEMENTS  EXECUTED AND PERFORMED ENTIRELY WITHIN SUCH STATE, REGARDLESS OF  THE LAWS THAT MIGHT OTHERWISE GOVERN UNDER APPLICABLE PRINCIPLES  OF CONFLICTS OF LAWS THEREOF.    (b) Jurisdiction. Each of the parties hereto irrevocably submits to the exclusive  jurisdiction of (i) the Court of Chancery of the State of Delaware and (ii) the United States  District Court located in the State of Delaware for the purposes of any suit, action or other  proceeding arising out of or relating to this Agreement or the transactions contemplated by this  Agreement. Each of the parties hereto irrevocably and unconditionally waives any objection to   the laying of venue of any action, suit or proceeding arising out of or relating to this Agreement  or the transactions contemplated by this Agreement in (I) the Court of Chancery of the State of  

 

23   Delaware or (II) the United States District Court located in the State of Delaware and waives any  claim that such suit or proceeding has been brought in an inconvenient forum.   Each of the  parties hereto agrees that a final and unappealable judgment in any action or proceeding so  brought shall be conclusive and may be enforced by suit on the judgment in any jurisdiction  within or outside the United States or in any other manner provided in law or in equity    (c) WAIVER OF JURY TRIAL. EACH PARTY ACKNOWLEDGES AND  AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT  IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE  IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST  EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL  BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING  OUT OF OR RELATING TO THIS AGREEMENT AND ANY OF THE AGREEMENTS  DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS  CONTEMPLATED HEREBY OR THEREBY. EACH PARTY CERTIFIES AND  ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY  OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH  OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE  THE FOREGOING WAIVER, (II) IT UNDERSTANDS AND HAS CONSIDERED THE  IMPLICATIONS OF SUCH WAIVER, (III) IT MAKES SUCH WAIVER VOLUNTARILY  AND (IV) IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG  OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS IN THIS 3.7.    3.8. Interpretation; Construction.    (a) The table of contents and headings in this Agreement are for convenience of  reference only, do not constitute part of this Agreement and shall not be deemed to limit or  otherwise affect any of the provisions hereof. Where a reference in this Agreement is made to  a  Section, such reference shall be to a Section of this Agreement unless otherwise indicated.  Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall  be deemed to be followed by the words “without limitation.”    (b) The parties have participated jointly in negotiating and drafting this Agreement.  In the event that an ambiguity or a question of intent or interpretation arises, this Agreement  shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall  arise favoring or disfavoring any party by virtue of the authorship of any provision of this  Agreement.    3.9. Counterparts. This Agreement may be executed and delivered in any number of  separate counterparts (including by facsimile or electronic mail), each of which shall be an  original, but all of which together shall constitute one and the same agreement.    3.10. Severability. The provisions of this Agreement shall be deemed severable and the  invalidity or unenforceability of any provision shall not affect the validity or enforceability of the  other provisions hereof. If any provision of this Agreement, or the application thereof to any  person or any circumstance, is invalid or unenforceable, (a) a suitable and equitable provision   shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the  

 

24   intent and purpose of such invalid or unenforceable provision and (b) the remainder of this  Agreement and the application of such provision to other persons or circumstances shall not be  affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability  affect the validity or enforceability of such provision, or the application thereof, in any other  jurisdiction.    3.11. Remedies. The parties hereto agree that irreparable damage would occur in the  event that any of the provisions of this Agreement were not performed in accordance with their  specific terms or were otherwise breached.   It is accordingly agreed that each party hereto shall  be entitled to an injunction or injunctions to prevent breaches of this Agreement and to  enf orce  specifically the terms and provisions of this Agreement, without the posting of any bond, and, if   any action should be brought in equity to enforce any of the provisions of this Agreement, none  of the parties hereto shall raise the defense that there is an adequate remedy at law. All remedies,  either under this Agreement, by law, or otherwise afforded to any party, shall be cumulative and  not alternative.    3.12. Further Assurances. Each party hereto shall do and perform or cause to  be done  and performed all such further acts and things and shall execute and deliver all such other  agreements, certificates, instruments, and documents as any other party hereto reasonably may  request in order to carry out the intent and accomplish the purposes of this Agreement and the  consummation of the transactions contemplated hereby.    3.13. Confidentiality.    (a) Each Holder acknowledges that the provisions of this Agreement that require  communications by the Company or other Holders to such Holder may result in such Holder and  its Section 3.13 Representatives acquiring material non-public information (which may include,  solely by way of illustration, the fact that an offering of the Company’s securities is pending or  the number of Company securities or the identity of the selling Holders).    (b) Each Holder agrees that it will maintain the confidentiality of such material non-  public information and, to the extent such Holder is not a natural person, such confidential  treatment shall be in accordance with procedures adopted by it in good faith to protect  confidential information of third parties delivered to such Holder (“Policies”); provided that a  Holder may deliver or disclose material non-public information to (i) its directors, officers,  employees, agents, attorneys, affiliates and financial and other advisors, in each case, who  reasonably need to know such information (collectively, the “Section 3.13 Representatives”), (ii)  any federal or state regulatory authority having jurisdiction over such Holder, (iii) any Person if   necessary to effect compliance with any law, rule, regulation or order applicable to such Holder,  (iv) in response to any subpoena or other legal process, or (v) in connection with any litigation to   which such Holder is a party and such Holder is advised by counsel that such information  reasonably needs to be disclosed in connection with such litigation; provided further, that in  the  case of clause (i), the recipients of such material non-public information are subject to the  Policies or are directed to hold confidential the material non-public information in a manner  substantially consistent with the terms of this Section 3.13.  

 

25   (c) Each Holder shall have the right, at any time and from time to time (including  after receiving information regarding any potential sale or distribution to the public of Common  Stock of the Company pursuant to an offering registered under the Securities Act, whether by the  Company, by Holders and/or by any other Holders of the Company’s Common Stock), to elect to  not receive any notice that the Company or any other Holders otherwise are required to  deliver  pursuant to this Agreement by delivering to the Company a written statement signed by such  Holder that it does not want to receive any notices hereunder (an “Opt-Out Request”); in  which  case and notwithstanding anything to the contrary in this Agreement the Company and other  Holders shall not be required to, and shall not, deliver any notice or other information required to  be provided to Holders hereunder to the extent that the Company or such other Holders  reasonably expect would result in a Holder acquiring material non-public information. An Opt-  Out Request may state a date on which it expires or, if no such date is specified, shall remain in   effect indefinitely. A Holder who previously has given the Company an Opt-Out Request may  revoke such request at any time, and there shall be no limit on the ability of a Holder to issue and  revoke subsequent Opt-Out Requests; provided that each Holder shall use commercially  reasonable efforts to minimize the administrative burden on the Company arising in connection  with any such Opt-Out Requests.    3.14. Termination and Effect of Termination. This Agreement shall terminate with  respect to each Holder when such Holder no longer holds any Registrable Securities and will  terminate in full when no Holder holds any Registrable Securities, except for the provisions of  Sections 2.9, which shall survive any such termination. No termination under this Agreement  shall relieve any Person of liability for breach or Expenses incurred prior to termination. In  the  event this Agreement is terminated, each Person entitled to indemnification rights pursuant to  Section 2.9 shall retain such indemnification rights with respect to any matter that (i) may be an  indemnified liability thereunder and (ii) occurred prior to such termination.      [Remainder of Page Intentionally Left Blank]  

 

            IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of  the date first above written.      COMPANY:    First Watch Restaurant Group, Inc.    By:  /s/ Christopher A. Tomasso  Name: Christopher A. Tomasso  Title: President, Chief Executive Officer and Director  (Principal Executive Officer)                                                                                  [SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]   HOLDERS:    ADVENT INTERNATIONAL GPE VIII LIMITED PARTNERSHIP  ADVENT INTERNATIONAL GPE VIII-B LIMITED PARTNERSHIP  ADVENT INTERNATIONAL GPE VIII-B-1 LIMITED PARTNERSHIP  ADVENT INTERNATIONAL GPE VIII-B-2 LIMITED PARTNERSHIP  ADVENT INTERNATIONAL GPE VIII-B-3 LIMITED PARTNERSHIP  ADVENT INTERNATIONAL GPE VIII-C LIMITED PARTNERSHIP  ADVENT INTERNATIONAL GPE VIII-D LIMITED PARTNERSHIP  ADVENT INTERNATIONAL GPE VIII-F LIMITED PARTNERSHIP  ADVENT INTERNATIONAL GPE VIII-H LIMITED PARTNERSHIP  ADVENT INTERNATIONAL GPE VIII-I LIMITED PARTNERSHIP  ADVENT INTERNATIONAL GPE VIII-J LIMITED PARTNERSHIP        By: GPE VIII GP S.à r.l., its general partner        By: Advent International GPE VIII, LLC, its /s/ Justin Nuccio   manager  Justin Nuccio, manager  By: Advent International Corporation, its manager  By:  /s/ James Westra  Name: James Westra  Title: Chief Legal Officer, General Counsel, and Managing Partner  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]   ADVENT INTERNATIONAL GPE VIII-A LIMITED PARTNERSHIP  ADVENT INTERNATIONAL GPE VIII-E LIMITED PARTNERSHIP  ADVENT INTERNATIONAL GPE VIII-G LIMITED PARTNERSHIP  ADVENT INTERNATIONAL GPE VIII-K LIMITED PARTNERSHIP  ADVENT INTERNATIONAL GPE VIII-L LIMITED PARTNERSHIP      By: GPE VIII GP Limited Partnership,  General Partner  By: Advent International GPE VIII, LLC,  General Partner  By: Advent International Corporation,  Manager  By: /s/ James Westra   Name: James Westra   Title: Chief Legal Officer, General Counsel, and Managing Partner  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]   ADVENT PARTNERS GPE VIII LIMITED PARTNERSHIP  ADVENT PARTNERS GPE VIII-A LIMITED PARTNERSHIP  ADVENT PARTNERS GPE VIII CAYMAN LIMITED PARTNERSHIP  ADVENT PARTNERS GPE VIII-A CAYMAN LIMITED  PARTNERSHIP  ADVENT PARTNERS GPE VIII-B CAYMAN LIMITED  PARTNERSHIP          By: AP GPE VIII GP Limited Partnership,  General Partner  By: Advent International GPE VIII, LLC,  General Partner  By: Advent International Corporation,  Manager  By:  /s/ James Westra   Name: James Westra  Title: Chief Legal Officer, General Counsel, and Managing Partner  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              Christopher A. Tomasso  By: /s/ Christopher A. Tomasso  Name: Christopher A. Tomasso  Title: President, Chief Executive Officer and Director  (Principal Executive Officer)  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              Kenneth L. Pendery, Jr.  By: /s/ Kenneth L. Pendery, Jr.  Name: Kenneth L. Pendery, Jr.  Title: Chairman Emeritus  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              Kenneth L. Pendery, Jr., and his successors, as  Trustee U/A with Kenneth L. Pendery, Jr. Dated  February 15, 2017, as Amended    By: /s/ Kenneth L. Pendery, Jr.  Name: Kenneth L. Pendery, Jr.  Title: Owner  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              Ralph Alvarez  By: /s/ Ralph Alvarez  Name: Ralph Alvarez  Title: Director and Chairman of the Board  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              Julie M.B. Bradley  By: /s/ Julie M.B. Bradley  Name: Julie M.B. Bradley  Title: Director  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              William Kussell  By: /s/ William Kussell  Name: William Kussell  Title: Director  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              David Kussell Irrevocable Trust of 2014    By: /s/ Robert Allen  Name: Robert Allen  Title: Trustee  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              Melanie Kussell Irrevocable Trust of 2014    By: /s/ Robert Allen  Name: Robert Allen  Title: Trustee  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              Lisa Price  By: /s/ Lisa Price  Name: Lisa Price  Title: Director  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              Mel Hope  By: /s/ Mel Hope  Name: Mel Hope  Title: Chief Financial Officer (Principal Financial  Officer and Principal Accounting Officer)  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              Jay Wolszczak  By: /s/ Jay Wolszczak  Name: Jay Wolszczak  Title: General Counsel and Secretary  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              Eric Hartman  By: /s/ Eric Hartman  Name: Eric Hartman  Title: Chief Development Officer  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              Laura Sorensen  By: /s/ Laura Sorensen  Name: Laura Sorensen  Title: Chief People Officer  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              Calum Middleton  By: /s/ Calum Middleton  Name: Calum Middleton  Title: Chief Strategy Officer  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              Shane Schaibly  By: /s/ Shane Schaibly  Name: Shane Schaibly  Title: Senior Vice President, Culinary Strategy  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              Matt Eisenacher  By: /s/ Matt Eishenacher  Name: Matt Eisenacher  Title: Senior Vice President, Brand Strategy and  Innovation  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              Brian Fisher  By: /s/ Brian Fisher  Name: Brian Fisher  Title: Senior Vice President, Operations  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              Rania Khouri  By: /s/ Rania Khouri  Name: Rania Khouri  Title: Senior Vice President, Accounting and  Financial Reporting  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              Lilah Rippett    By: /s/ Lilah Rippett  Name: Lilah Rippett  Title: Senior Vice President, Supply Chain  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              Rob Conti  By: /s/ Rob Conti  Name: Rob Conti  Title: Senior Vice President, Technology  

 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]              John Zimmermann  By: /s/ John Zimmermann  Name: John Zimmermann  Title: Vice President, Quality Assurance and Food  Safety  

 

  [SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]        Tricia Glynn    By: /s/ Tricia Glynn  Name: Tricia Glynn  Title: Director  

 

  [SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]          Michael White  By: /s/ Michael White  Name: Michael White  Title: DirectorDocument

Exhibit 4.3

DESCRIPTION OF REGISTRANT’S SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

The following is a brief description of the common stock, par value $0.01 per share (the “common stock”) of First Watch Restaurant Group, Inc. (the “Company”), which is the only security of the Company registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
The following description does not purport to be complete and is qualified in its entirety by reference to the Company’s amended and restated certificate of incorporation (our “certificate of incorporation”), our amended and restated bylaws (our “bylaws”) and the General Corporation Law of the State of Delaware (the “DGCL”).
References in this exhibit to “we,” “us” and “our” refer to the Company and not to any of its subsidiaries.
General

Our authorized capital stock consists of 300,000,000 shares of common stock, par value $0.01 per share and 10,000,000 shares of preferred stock, par value $0.01 per share. Shares of preferred stock have not been issued.  Unless our board of directors (our “Board”) determines otherwise, we will issue all shares of our capital stock in uncertificated form.

Common Stock

Holders of our common stock are entitled to the rights set forth below.

Voting Rights

At any meeting of stockholders at which directors are to be elected, directors will be elected by a plurality of the votes cast by the holders of shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors. Our stockholders do not have cumulative voting rights. Except as otherwise provided in our certificate of incorporation, our bylaws or as required by law, all matters to be voted on by our stockholders other than matters relating to the election and removal of directors must be approved by a majority of the shares present in person or represented by proxy at the meeting and voting on the subject matter.

Dividend Rights

Holders of common stock share equally in any dividend declared by our Board, subject to the rights of the holders of any outstanding preferred stock.

Liquidation Rights

In the event of any voluntary or involuntary liquidation, dissolution, distribution of assets or winding up of our affairs, holders of our common stock would be entitled to share ratably in our assets that are legally available for distribution to stockholders after payment of liabilities. If we have any preferred stock outstanding at such time, holders of the preferred stock may be entitled to distribution and/or liquidation preferences. In either such case, we must pay the applicable distribution to the holders of our preferred stock before we may pay distributions to the holders of our common stock.

Other Rights

Our stockholders have no preemptive or other rights to subscribe for additional shares. There are no redemption, conversion or sinking fund provisions applicable to our common stock. All holders of our common stock are entitled to share equally on a share-for-share basis in any assets available for distribution to common 

stockholders upon our liquidation, dissolution or winding up. All outstanding shares are validly issued, fully paid and non-assessable.

Preferred Stock

No shares of preferred stock have been issued. Our Board is authorized to provide for the issuance of preferred stock in one or more series and to fix the preferences, powers and relative, participating, optional or other special rights and qualifications, limitations or restrictions thereof, including the dividend rate, conversion rights, voting rights, redemption rights and liquidation preference and to fix the number of shares to be included in any such series without any further vote or action by our stockholders. Any preferred stock so issued may rank senior to our common stock with respect to the payment of dividends or amounts upon liquidation, dissolution or winding up, or both. In addition, any such shares of preferred stock may have class or series voting rights. The issuance of preferred stock may have the effect of delaying, deferring or preventing a change in control of our company without further action by the stockholders and may adversely affect the voting and other rights of the holders of our common stock. 

Anti-takeover Provisions

Our certificate of incorporation and bylaws contain provisions that delay, defer or discourage transactions involving an actual or potential change in control of us or change in our management. We expect that these provisions, which are summarized below, will discourage coercive takeover practices or inadequate takeover bids. These provisions will be designed to encourage persons seeking to acquire control of us to first negotiate with our Board, which we believe may result in an improvement of the terms of any such acquisition in favor of our stockholders. However, they will also give our Board the power to discourage transactions that some stockholders may favor, including transactions in which stockholders might otherwise receive a premium for their shares or transactions that our stockholders might otherwise deem to be in their best interests. Accordingly, these provisions could adversely affect the price of our common stock.

Classified Board of Directors

Our Board is divided into three classes, Class I, Class II and Class III, with members of each class serving staggered three-year terms. Our certificate of incorporation provides that the authorized number of directors may be changed only by resolution of the Board. Any additional directorships resulting from an increase in the number of directors will be distributed among the three classes so that, as nearly as possible, each class will consist of one-third of the directors. Our certificate of incorporation and our bylaws also provide that a director may be removed by the affirmative vote of the holders of a majority of the voting power of our outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class, and only for cause so long as our Board is classified. Any vacancy on our Board, including a vacancy resulting from an enlargement of our Board, may be filled only by vote of a majority of our directors then in office. Our classified Board could have the effect of delaying or discouraging an acquisition of us or a change in our management. 

Special Meetings of Stockholders and Advance Notice Requirements for Stockholder Meetings, Nominations and Proposals

Our bylaws provide that special meetings of the stockholders may be called only upon the request of a majority of our Board, the Chairperson of our Board or the Chief Executive Officer. Our bylaws prohibit the conduct of any business at an annual or special meeting other than as specified in the notice for such meeting or otherwise brought before the meeting by or at the direction of the Board or a duly authorized committee or authorized officer to whom the Board or committee delegated such authority. These provisions may have the effect of deferring, delaying or discouraging hostile takeovers or changes in control or management of our company.

Our bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of our Board or a committee of our Board. In order for any matter to be “properly brought” before a meeting, a stockholder will have to comply with the advance notice requirements of directors, which may be filled only by a vote of a majority of directors then in office, even though less than a quorum, and not by the stockholders. Our bylaws allow the presiding officer at a meeting of the stockholders to adopt rules and regulations for the conduct of meetings, which may have the effect of 

precluding the conduct of certain business at a meeting if the rules and regulations are not followed. These provisions may also defer, delay or discourage a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of our company.

No Stockholder Action by Written Consent

Our certificate of incorporation and our bylaws provide that after the time that our sponsor, Advent International Corporation (“Advent”), collectively owns less than 50% of our then outstanding common stock, subject to the rights of any holders of preferred stock to act by written consent instead of a meeting, stockholder action may be taken only at an annual meeting or special meeting of stockholders and may not be taken by written consent instead of a meeting. Failure to satisfy any of the requirements for a stockholder meeting could delay, prevent or invalidate stockholder action.

Section 203 of the DGCL

Our certificate of incorporation provides that the provisions of Section 203 of the DGCL, which relate to business combinations with interested stockholders, do not apply to us. Section 203 of the DGCL prohibits a publicly held Delaware corporation from engaging in a business combination transaction with an interested stockholder (a stockholder who owns more than 15% of our common stock) for a period of three years after the interested stockholder became such unless the transaction fits within an applicable exemption, such as Board approval of the business combination or the transaction that resulted in such stockholder becoming an interested stockholder. These provisions apply even if the business combination could be considered beneficial by some stockholders. Our certificate of incorporation contains provisions that have the same effect as Section 203 of the DGCL and provides that Advent, their respective affiliates or successors, their transferees, and any group as to which such persons are party do not constitute interested stockholders for purposes of these provisions for so long as they collectively own, directly or indirectly, 10% or more of the voting power of our then outstanding shares of voting stock. Although we have elected to opt out of the statute’s provisions, we could elect to be subject to Section 203 in the future.

Amendment to Bylaws and Certificate of Incorporation

Any amendment to our certificate of incorporation must first be approved by a majority of our Board and if required by law, thereafter be approved by a majority of the outstanding shares entitled to vote on the amendment. Our bylaws may be amended (x) by the affirmative vote of a majority of the directors then in office, without further stockholder action or (y) by the affirmative vote of at least a majority of the voting power of the then outstanding shares entitled to vote generally in the election of directors, voting together as a single class, without further action by our Board.

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