Document:

Exhibit 10.15

Execution Copy

 

MXENERGY INC.

 

THIRD AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT

 

This
Third Amended and Restated Stockholders’ Agreement is made and entered into as
of June 25, 2004, by and among MxEnergy Inc., a Delaware corporation (the “Company”),
Charter Mx LLC, a Delaware limited liability company (“Charter Mx”), the
parties listed on Exhibit A annexed hereto (the “Investors,” and
together with the Charter Mx, the “Series A Investors”), Lathi LLC, a
Delaware limited liability company (“Lathi”), Jeffrey A. Mayer, Carol R.
Artman-Hodge and Daniel P. Burke, Sr. (each an “Original Stockholder”
and collectively, the “Original Stockholders”) and the individuals and
entities listed on Exhibit B annexed hereto (collectively the “Other
Stockholders” and individually an “Other Stockholder”). The Series A
Investors, Lathi, the Original Stockholders and the Other Stockholders are
referred to herein collectively as the “Stockholders” and individually
as a “Stockholder.”

 

WITNESSETH:

 

WHEREAS,
following the execution and delivery of this Agreement, the Company will issue
and sell to the Series A Investors, and the Series A Investors will purchase
from the Company, shares of Series A Convertible Preferred Stock, par value
$0.01 of the Company (the “Series A Stock”), pursuant to the terms and
conditions set forth in that certain Series A Convertible Preferred Stock
Purchase Agreement, dated June 25, 2004 (the “Purchase Agreement”), by
and among the Company and the Series A Investors; and

 

WHEREAS,
it is a condition precedent to the obligations of the Series A Investors under
the Purchase Agreement that parties to that certain Second Amended and Restated
Shareholders Agreement dated as of March 5, 2001 by and among the Company,
Lathi, the Original Stockholders and the Other Stockholders, as amended on May
31, 2002 and November 14, 2003 (the “Existing Shareholders Agreement”)
terminate such agreement as of the date hereof; and

 

WHEREAS,
it is a condition precedent to the obligations of the Series A Investors under
the Purchase Agreement that the Company, Lathi, the Original Stockholders, the
Other Stockholders and the Series A Investors enter into this Agreement; and

 

WHEREAS,
the Company, Lathi, the Original Stockholders, the Other Stockholders and the
Series A Investors desire to enter into this Agreement for the purpose of
regulating certain aspects of the relationship of the Original Stockholders,
the Other Stockholders, Lathi and the Series A Investors as stockholders of the
Company; and

 

WHEREAS,
it is in the best interests of the Company and the Stockholders that such
aspects of their relationship be so regulated.

 

 

NOW,
THEREFORE, in consideration of the foregoing, the mutual covenants and
agreements contained herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

1.             Definitions. As used in this
Agreement, the following terms shall have the following respective meaning
(such meanings being equally applicable to both the singular and plural form of
the terms defined):

 

“10%
Owner” means any Person who, immediately prior to the contemplated
transaction, owns in excess of 10% of the Stock on a Fully Diluted Basis, such
percentage subject to appropriate adjustment for stock splits, reverse stock
splits, combinations and other recapitalizations.

 

“15%
Owner” means any Person who, immediately prior to the contemplated
transaction, owns in excess of 15% of the Stock on a Fully Diluted Basis, such
percentage subject to appropriate adjustment for stock splits, reverse stock
splits, combinations and other recapitalizations.

 

“Affiliate”
means, with respect to any Person, any other Person that directly or indirectly
through one or more intermediaries Controls, is controlled by or is under
common control with such Person and, as to any Person that is an individual,
such individual’s Family Members and any trust for the benefit of any such
Persons.

 

“Agreement”
means this Third Amended and Restated Stockholders’ Agreement, including all
amendments, modifications and supplements hereto and any exhibits or schedules
to any of the foregoing, and shall refer to this Agreement as the same may be
in effect at the time such reference becomes operative.

 

“Approved
Sale” has the meaning ascribed thereto in Section 3.7 hereof.

 

“Auction”
has the meaning ascribed thereto in Section 3.5(c) hereof.

 

“Auction
Offeree(s)” has the meaning ascribed thereto in Section 3.5(c)(i)
hereof.

 

“Audit
Committee” means the Audit Committee of the Board of Directors.

 

“Bankruptcy
Code” has the meaning ascribed thereto in Section 9.7 hereof.

 

“Bid
Price” has the meaning ascribed thereto in Section 3.5(c)(i) hereof.

 

“Board
of Directors” means the Board of Directors of the Company.

 

“Business
Day” has the meaning ascribed thereto in Section 3.5(c)(i) hereof.

 

“Bylaws”
means the Amended and Restated Bylaws of the Company in the form attached as Exhibit
D to the Purchase Agreement.

 

2

 

“Certificate
of Incorporation” means the Certificate of Incorporation of the Company, as
amended.

 

“Charter
Mx” has the meaning ascribed thereto in the introduction hereof.

 

“Claims”
has the meaning ascribed thereto in Section 8.2 hereof.

 

“Committees”
has the meaning ascribed thereto in Section 2.2 hereof.

 

“Common
Share Equivalents,” at any time, means Common Stock at the time outstanding
or issuable upon conversion or exercise of the Series A Stock or any other
securities convertible into or exercisable for Common Stock.

 

“Common
Stock” means the shares of Common Stock, par value $0.01, of the Company.

 

“Company”
has the meaning ascribed thereto in the introduction hereof.

 

“Company
Notice” has the meaning ascribed thereto in Section 3.5(c)(ii) hereof.

 

“Company
Securities” means (i) any shares of its Common Stock, (ii) any other
capital stock or other equity securities of the Company or equity-linked
securities, including, without limitation, shares of Series A Stock, (iii) any
option, warrant or other right to subscribe for, purchase or otherwise acquire
any capital stock or other equity securities of the Company, or (iv) any debt
or other securities directly or indirectly convertible into capital stock or
other equity securities of the Company. “Company Securities” shall not include
(x) those options, warrants, convertible securities or shares of Common Stock
excluded from the definition of Additional Common Stock pursuant to
Section (B)4(d)(i)(4) of the Series A Certificate of Designation; or (y)
any securities issued upon exercise or conversion of any other securities, provided
that the preemptive rights provided herein applied with respect to the
initial sale or issuance of such other securities or such other securities are
specifically excluded from the definition of Company Securities pursuant to
this clause (x) of this sentence.

 

“Compensation
Committee” means the Compensation Committee of the Board of Directors.

 

“Consent
Right Holders” has the meaning ascribed thereto in Section 6.1 hereof.

 

“Controls”
including, with correlative meanings, the terms “controlled by” and “under
common control with,” means, as to any Person, the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities, by
contract or otherwise.

 

“Conversion
Price” has the meaning set forth in the Series A Certificate of
Designation.

 

“Equivalent
Price” shall be determined as follows: 
with respect to (A) any share of Series A Stock proposed to be sold, the
Equivalent Price for a share of Common Stock shall be the lesser of (i) the
amount determined by dividing the amount payable in respect of such share of

 

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Series A Stock by the number of Common Share
Equivalents represented by such share of Series A Stock and (ii) the fair
market value of a share of Common Stock (as determined in good faith by the
Board of Directors, taking into account the liquidation preference of the
Series A Stock) and (B) any share of Common Stock proposed to be sold, the
Equivalent Price for a share of Series A Stock shall be equal to the product of
(x) the amount payable in respect of such share of Common Stock and (y) the
number of Common Share Equivalents represented by such share of Series A Stock.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Executive
Committee” means the Executive Committee of the Board of Directors.

 

“Existing
Other Stockholders” has the meaning ascribed thereto in Section 5.1.

 

“Existing
Shareholders Agreement” has the meaning ascribed thereto in the recitals
hereof.

 

“Family
Member” means a spouse (or domestic partner), lineal descendant (by birth
or adoption), father, mother, brother, sister, niece, nephew or lineal descendant
of father or mother (by birth or adoption) of a Stockholder.

 

“Follow-up
Offer” has the meaning ascribed thereto in Section 4.3 hereof.

 

“Fully
Diluted Basis” means the amount of Common Stock outstanding calculated as
if all securities convertible into or exchangeable for Common Stock at such
time has been fully converted into or exchanged for shares of Common Stock, and
any outstanding vested warrants, options or other rights for the purchase of
Common Stock or securities convertible into Common Stock had been fully
exercised as of such time, in each case, without regard to whether such
instruments are then exercisable or convertible.

 

“Future
Issuance” has the meaning ascribed thereto in Section 5.1 hereof.

 

“Greenhill
Funds” means Greenhill Capital Partners, L.P., a Delaware limited
partnership, Greenhill Capital Partners (Cayman), L.P., a Cayman Islands
limited partnership, Greenhill Capital Partners (Executives), L.P., a Delaware
limited partnership and Greenhill Capital, L.P., a Delaware limited
partnership.

 

“Governmental
Authority” means any nation or government, any state or other political
subdivision thereof and any Person exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government.

 

“Independent
Third Party” means any Person who is not a 15% Owner, who is not
controlling, controlled by or under common control with any such 15% Owner and
who is not a Family Member of any such 15% Owner or a trust for the benefit of
such 15% Owner or such other Person.

 

“Investors”
has the meaning ascribed thereto in the introduction hereof.

 

4

 

“Joining
Price” has the meaning ascribed thereto in Section 3.6(b) hereof.

 

“Joining
Terms” has the meaning ascribed thereto in Section 3.6(b) hereof.

 

“Key
Employees” has the meaning ascribed thereto in Section 7.3 hereof.

 

“Knowledge”
of a particular fact or other matter means, in the case of an individual that a
prudent individual could be expected to discover or otherwise become aware of
such fact or other matter in the course of conducting a reasonably
comprehensive investigation concerning the existence of such fact or other
matter and, in the case of a Person other than an individual, that any
individual who is serving, or who has at any time served, as a director,
officer, partner, member, manager, executor, or trustee of such Person (or in
any similar capacity) has, or at any time had, Knowledge of such fact or other
matter.

 

“Lathi”
has the meaning ascribed thereto in the introduction hereof.

 

“Lathi
Dilutive Sale” has the meaning ascribed thereto in Section 5.1 hereof.

 

“Lathi
Loan Agreement” means that certain Loan Agreement dated as of September 1,
2001 between Lathi and the Company, as amended on July 2, 2002, as amended and
restated by that certain Amended and Restated Loan Agreement dated as of
November 14, 2003 between Lathi and the Company, as amended on March 25, 2004
and as the same may be amended from time to time.

 

“Liquidation
Event” has the meaning set forth in the Series A Certificate of
Designation.

 

“Lowest-Bid-Price
Offeree” has the meaning ascribed thereto in Section 3.5(c)(iii)(2)
hereof.

 

“Minimum
Acceptable Price” has the meaning ascribed thereto in Section 3.5(c)
hereof.

 

“Notice
of Acceptance” has the meaning ascribed thereto in Section 4.2 hereof.

 

“Notice
of Auction Commencement” has the meaning ascribed thereto in
Section 3.5(c)(ii)(2) hereof.

 

“Notice
of Offer” has the meaning ascribed thereto in Section 3.5(b) hereof.

 

“Offer”
has the meaning ascribed thereto in Section 4.1 hereof.

 

“Offer
Price” has the meaning ascribed thereto in Section 3.5(b) hereof.

 

“Offered
Shares” has the meaning ascribed thereto in Section 3.5(b) hereof.

 

“Original
Issue Date” means the date on which the Series A Stock was first issued.

 

“Original
Series A Stock Issue Price” has the meaning set forth in the Series A
Certificate of Designation.

 

5

 

“Original
Stockholder(s)” has the meaning ascribed thereto in the introduction
hereof.

 

“Other
Stockholder(s)” has the meaning ascribed thereto in the introduction
hereof.

 

“Other
Stockholders Dilutive Sale” has the meaning ascribed thereto in
Section 5.1 hereof.

 

“Permitted
Transferees” has the meaning ascribed thereto in Section 3.4 hereof.

 

“Person”
means an individual or a corporation, limited liability company, partnership,
trust, incorporated or unincorporated association, joint venture, joint stock
company, Governmental Authority or other entity of any kind.

 

“Preemptive
Right Holder(s)” has the meaning ascribed thereto in Section 4.1
hereof.

 

“Proportionate
Percentage” has the meaning ascribed thereto in Section 4.1 hereof.

 

“Purchase
Agreement” has the meaning ascribed thereto in the recitals hereof.

 

“Purchase
Offer” has the meaning ascribed thereto in Section 3.6(b) hereof.

 

“Qualified
Public Offering” means the Company’s sale of shares of its Common Stock in
a bona fide firm commitment underwritten public offering pursuant to a
registration statement on Form S-1 (or a successor form) under the Securities
Act, which results in an aggregate offering price of not less than $75,000,000
and a per share offering price of not less than (x) one and one-half (1.5)
times the Conversion Price (appropriately adjusted to reflect the occurrence of
any stock split, dividend, combination or similar event) for offerings
occurring on or prior to the first anniversary of the Original Issue Date and
(y) two (2) times the Conversion Price (appropriately adjusted to reflect the
occurrence of any stock split, dividend, combination or similar event) for
offerings occurring after the first anniversary of the Original Issue Date.

 

“Qualifying
Bid” has the meaning ascribed thereto in Section 3.5(c)(i) hereof.

 

“Remaining
Company Securities” has the meaning ascribed thereto in Section 4.3
hereof.

 

“RFR
Acceptance Notice” has the meaning ascribed thereto in Section 3.5(c)
hereof.

 

“RFR
Option Period” has the meaning ascribed thereto in Section 3.5(c)
hereof.

 

“RFR
Participant(s)” has the meaning ascribed thereto in Section 3.5(c)
hereof.

 

“Rule
144 Sales” means open market sales pursuant to Rule 144 under the
Securities Act (or any successor rule or regulation) and in compliance with the
requirements of paragraphs (c), (e) and (f) of such Rule, without giving effect
to paragraph (k) of such Rule.

 

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

 

“Selling
Party” has the meaning ascribed thereto in Section 3.6(a) hereof.

 

6

 

“Selling
Stockholder” has the meaning ascribed thereto in Section 3.5(b)
hereof.

 

“Series
A Certificate of Designation” means the Certificate of Designation of
Series A Stock of the Company attached as Exhibit A to the Purchase Agreement,
as the same may be amended from time to time.

 

“Series
A Director” means the director(s) appointed by the Series A Investors.

 

“Series
A Investors” has the meaning ascribed thereto in the introduction hereof.

 

“Series
A Share Equivalents” means the Series A Stock and any Common Stock issued
and outstanding as a result of the conversion or exercise of the Series A
Stock.

 

“Series
A Stock” has the meaning ascribed thereto in the recitals hereof.

 

“Stock”
means, collectively, the Common Stock and the Series A Stock whenever or
however acquired.

 

“Stockholder(s)”
has the meaning ascribed thereto in the introduction hereof.

 

“Tag-Along
Right Holders” has the meaning ascribed thereto in Section 3.6 hereof.

 

“Third-Party
Transferee” has the meaning ascribed thereto in Section 3.5(e) hereof.

 

“Tier”
has the meaning ascribed thereto in Section 3.5(c)(i) hereof.

 

“Voting
Stock” means capital stock of any class or classes of the Company, the
holders of which are entitled to participate generally in the election of the
members of the Board of Directors, and shall include, without limitation, the
Common Stock and the Series A Stock.

 

2.             Voting Rights.

 

2.1           Board of Directors. Each
Stockholder shall vote (or shall cause to be voted) all shares of Voting Stock
owned or controlled by such Stockholder (including any shares of Voting Stock
hereafter acquired), at any regular or special meeting of stockholders of the
Company, shall take all action by written consent in lieu of such meeting of
stockholders, and shall take all other actions necessary, to ensure that:

 

(a)           the Board of Directors of the Company
and each of its subsidiaries shall consist of at least six (6) members but no
more than fifteen (15) members;

 

(b)           members of the Board of Directors of
the Company and each of its subsidiaries shall be elected as follows:

 

(i)            for so long as the outstanding
Series A Stock represents 10% or more of the Common Stock, on a Fully Diluted
Basis, the holders of the outstanding shares of Series A Stock, voting as a
separate class, shall be entitled, as provided in Section (B)5(b) of the Series
A Certificate of Designation, to elect a number of directors equal to the

 

7

 

largest whole number that is less than or equal
to the number of directors comprising the entire Board of Directors divided by
five, but in no event less than one (1) director;

 

(ii)           for so long as Lathi holds 10% or
more of the Common Stock, on a Fully Diluted Basis, the holders of the Series A
Stock and the Common Stock, voting together as a single class, one (1) director
designated by Lathi; and

 

(iii)          the holders of the Series A Stock and
the Common Stock, voting together as a single class, shall elect the remaining
number of directors authorized; provided, however, that these
rights may be modified pursuant to Section (B)5(c) of the Series A
Certificate of Designation.

 

2.2           Committees of the Board. The
Company shall establish the following committees (collectively, the “Committees”)
of the Board of Directors:  an Executive
Committee, a Compensation Committee and an Audit Committee. Such Committees
shall have the powers and duties set forth in the resolutions of the Board of
Directors authorizing the establishment of such Committees. The Board of
Directors may establish any other committees if it determines that the creation
of any such committees is in the best interests of the Company. The Board of
Directors shall delegate to any such committees those duties and powers as are
customarily performed by committees of such type. No Committee shall have more
than three (3) members. At least one (1) director appointed by the holders of
the Series A Stock shall serve on each Committee.

 

2.3           Removal. The Bylaws shall
provide that: (a) a director designated and elected pursuant to
Section 2.1 may be removed from the Board of Directors during such
director’s term of office, either for or without cause by, and only by, the
affirmative vote of the holders of a majority of the shares of such class or
classes, as applicable, given at a special meeting of the stockholders duly
called or by an action by written consent for that purpose; and (b) any
director (regardless of how designated) may be removed for cause. Each holder
of shares of such Voting Stock hereby agrees to vote all such shares then owned
or held of record by him, or to take action by written consent, to effect the
removal described in clause (a) of this Section 2.3.

 

2.4           Vacancies. In the event that a
vacancy is created on the Board of Directors or the respective boards of
directors of the Company’s subsidiaries by the death, disability, retirement,
resignation or removal (with or without cause) of a director or otherwise there
shall exist or occur any vacancy on the Board of Directors or the respective
boards of directors of the Company’s subsidiaries, each Stockholder hereby
agrees to vote or take action by written consent, in each case, to the extent
such Stockholder shall be entitled to do so, to cause the vacancy to be filled
by a designee of the particular class or classes of stock who had designated or
was entitled to designate the director whose position has become vacant, provided
that such designee was not previously a director of the Company or any of
its subsidiaries who was removed for cause from the Board of Directors or the
respective boards of directors of the Company’s subsidiaries.

 

8

 

2.5           Observer Rights. For so long
as the Greenhill Funds owns no less than all of the Series A Stock owned by the
Greenhill Funds on the Original Issue Date, the Company shall invite and permit
a representative of the Greenhill Funds to attend all meetings of the Board of
Directors (and all committees thereof) in a nonvoting observer capacity and, in
this respect, shall give such representative copies of all notices, minutes,
consents and other material that is provided to its directors; provided,
however, that the Company reserves the right to exclude such
representative from access to any material, meeting or portion thereof if the
Company believes upon advice of counsel that such exclusion is reasonably
necessary to preserve the attorney-client privilege. Such representative may
participate in discussion of matters brought to the Board of Directors and may
address the Board of Directors.

 

2.6           No Proxies. Each Stockholder
covenants and agrees that, except (i) as a result of transfers permitted by,
and pursuant to and in accordance with, this Agreement, (ii) as otherwise
provided in the last sentence of Section 2.8 hereof, or (iii) as provided
pursuant to a duly called stockholders meeting where such Stockholder grants
its proxy to a Board designated proxy holder for the purposes of such meeting
(which such proxy permits such designee to vote solely in accordance with the
terms of this Agreement), such Stockholder will have sole voting power with
respect to such Stockholder’s Voting Stock and will not grant any proxy with
respect to such Voting Stock, enter into any voting trust or other voting
agreement or arrangement with respect to such Voting Stock or grant any other
rights to vote such Voting Stock other than the agreement to vote such Voting
Stock set forth herein.

 

2.7           Director Expenses. The Company
shall bear all reasonable out-of-pocket travel and related expenses incurred in
accordance with the Company’s written policies regarding employees by each
non-employee member of the Board of Directors or the respective boards of
directors of any of the Company’s subsidiaries associated with attending board
meetings and any Committees thereof.

 

2.8           Further Assurances. In order
to effectuate the provisions of this Section 2, the Stockholders hereby
agree that when any action or vote is required to be taken by such Stockholders
pursuant to this Agreement, such Stockholders shall use their respective
commercially reasonable efforts to call, or cause the appropriate officers and
directors of the Company to call, a special or annual meeting of stockholders
of the Company, as the case may be, or execute or cause to be executed a
consent in writing in lieu of any such meetings pursuant to the Delaware
General Corporation Law, to effectuate such stockholder action. In addition, if
any Stockholder shall fail to vote as required by the specific terms of this
Section 2, such Stockholder shall be deemed to have irrevocably
constituted and appointed the other Stockholders as his proxy coupled with an
interest to vote such Stockholder’s Voting Stock on a pro rata basis in
accordance with the terms of this Section 2.

 

3.             Restrictions on Transfer.

 

3.1           General Restrictions.

 

(a)           In addition to each other restriction
on transfer contained in this Agreement, except for (i) Rule 144 Sales, (ii) a
sale of shares in a registered public offering and

 

9

 

(iii) a transfer to the Company, no Stockholder
shall sell, assign, transfer, pledge, or otherwise encumber or dispose of any
Stock or any interest therein to any Person (regardless of the manner in which
such Stockholder initially acquired such Stock), unless (a) the certificates
representing the securities issued to the transferee bear appropriate legends
reflecting the restrictions on transfer contained in this Agreement
substantially to the following effect:

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE PROVISIONS OF A
STOCKHOLDERS’ AGREEMENT DATED AS OF JUNE 25, 2004 (A COPY OF WHICH IS ON FILE
WITH THE SECRETARY OF THE COMPANY) AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED,
PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE
PROVISIONS OF SUCH STOCKHOLDERS’ AGREEMENT.

 

and (b) the transferee (if not already a party to
this Agreement) shall have executed and delivered to the Company, as a
condition to its acquisition of any such securities, an executed signature page
in the form of Exhibit C to this Agreement and such additional
documentation as reasonably requested by the Company, confirming that such
transferee takes such securities subject to all the terms and conditions of
this Agreement. During the term of this Agreement, each certificate
representing securities of the Company held by a Stockholder or any Permitted
Transferee shall bear the foregoing legend upon its face.

 

3.2           In addition to each other restriction
on transfer contained in this Agreement, no Stockholder shall sell, assign,
transfer, pledge or otherwise encumber or dispose of any shares of Stock, or
any interest therein, to any Person unless such sale, assignment, transfer,
pledge or other encumbrance or disposition is pursuant to an effective
registration statement under the Securities Act and under applicable state
securities laws or an exemption from such registration is available.

 

3.3                           (a)           The restrictions on transfer
contained in this Agreement are in addition to, and not in limitation of, each
other restriction on transfer contained in any other agreement between the
Company and any Stockholder.

 

(b)           Any transfer of any shares of Stock
pursuant to this Agreement shall be subject in all cases to the receipt of any
required regulatory approvals.

 

3.4           Certain Permitted Transfers. Notwithstanding
anything in this Agreement to the contrary, the restrictions contained in
Sections 3.5 through 3.7 of this Agreement with respect to transfers of Stock
shall not apply to any one or more transfers:

 

(a)           pursuant to a registered public
offering;

 

(b)           without consideration by a
Stockholder who is a natural person to a Family Member of such Stockholder or
to a trust, corporation, partnership, limited liability

 

10

 

company or other entity of which there are no
principal beneficiaries, shareholders, partners or equity holders other than
the Family Members of such Stockholder;

 

(c)           to a legal representative in the
event any Stockholder who is a natural person becomes mentally incompetent;

 

(d)           by a Stockholder to an Affiliate of
such Stockholder (including, without limitation, any transfer by Charter Mx or
any of the Greenhill Funds to any of their respective members or partners or to
the partners of their Affiliates and by Lathi to Sowood Commodity Partners LP
or any of its Affiliates); and

 

(e)           by a Stockholder to the Company
pursuant to any agreement between the Company and that Stockholder.

 

provided that in each of cases (b),
(c) and (d), it shall be a condition to any such transfer that each transferee execute
the signature page attached as Exhibit C hereto and any other agreement
in form and substance reasonably satisfactory to the Company pursuant to which
such transferee agrees in writing to take such Stock subject to, and to comply
with, all terms and conditions contained in this Agreement. In addition, none
of the restrictions on transfers of Stock contained in this Agreement shall
apply to a transfer by a Stockholder who is a natural person upon his or her
death, by will, by the laws of descent or by operation of law, except that it
shall be a condition to any such transfer that each transferee execute the
signature page attached as Exhibit C hereto and any other agreement in
form and substance reasonably satisfactory to the Company pursuant to which
such transferee agrees in writing to take such Stock subject to, and to comply
with, all terms and conditions contained in this Agreement. Any transfer of
Stock, or any interest therein, pursuant to and in compliance with this
Section 3.4 shall be a permitted transfer under this Agreement, any
transferee of Stock, or any interest therein, pursuant to and in compliance
with this Section 3.4 (other than the Company) is herein referred to as a “Permitted
Transferee,” and if not previously a Stockholder, shall, upon consummation
of the transfer, be deemed a Stockholder and shall be included in the class of
Stockholders in which the transferring Stockholder was included under this
Agreement (for example, the Series A Investors).

 

3.5           Right of First Refusal. Except
as otherwise permitted under Section 3.4 of this Agreement, and except for
Rule 144 Sales and sales of shares in registered public offerings, a
Stockholder may sell or otherwise transfer shares of Stock, or any interest
therein, only in compliance with the provisions of this Section 3.5.

 

(a)           No Stock, or any interest therein
(including, without limitation, any equity-linked security), shall be sold,
assigned, transferred, pledged or otherwise encumbered or disposed of, directly
or indirectly, by any Stockholder except in accordance with the provisions of
this Agreement, the Bylaws, the Certificate of Incorporation and the Series A
Certificate of Designation, as applicable. The Company shall not transfer upon
its books and records any Stock purported to be transferred to any Person in
violation of this Section 3.5.

 

(b)           If any one or more Stockholders
(each, a “Selling Stockholder”) wishes to transfer any of its Stock in
compliance with this Section 3.5, the Selling Stockholder

 

11

 

shall first deliver written notice to the Company
(the “Notice of Offer”), which Notice of Offer shall specify (i) the
number of shares of Stock owned by the Selling Stockholder which it wishes to
sell (the “Offered Shares”); (ii) the proposed consideration per share
for the Offered Shares (the “Offer Price”); and (iii) all other terms
and conditions of the offer.

 

(c)           If a Selling Stockholder desires to
sell Offered Shares pursuant to Section 3.5 hereof, it may, in its sole
discretion, elect in its Notice of Offer delivered pursuant to
Section 3.5(b) hereof to authorize the Company to conduct a
declining-clock Dutch auction in accordance with the procedures set forth in
this Section 3.5(c) (an “Auction”). Any Selling Stockholder making
such an election shall be deemed irrevocably to have agreed, for the benefit of
the Auction Offerees (as defined below) to whom Offered Shares are allocated
pursuant to the Auction procedures set forth in this Section 3.5(c), to
sell the Offered Shares that are so allocated to such Auction Offerees at the
prices (which shall not be less than the Minimum Acceptable Price (as defined
below)) determined by the Auction procedures. The Offer Price indicated in the
Notice of Offer shall be considered the “Minimum Acceptable Price” for
purposes of this Section 3.5(c). Notwithstanding the Selling Stockholder’s
election, the Board of Directors (with the consent of the Series A Director)
may in its sole discretion determine that the Company should decline to conduct
an Auction, in which case the provisions of Section 3.5(d) through (g)
hereof shall apply to the sale of such Selling Stockholder’s Offered Shares. No
Auction Offeree shall be precluded from communicating with any other potential
Auction Offeree concerning an Auction conducted pursuant to this
Section 3.5(c).

 

(i)            Certain defined terms:

 

(1)           “Qualifying Bid” within any
Tier (as defined below) means a bid submitted by an Auction Offeree in that
Tier that:

 

a.     is timely submitted under the provisions of
this Section 3.5(c).

 

b.     offers a bid price (the “Bid Price”)
at or above the Minimum Acceptable Price.

 

c.     states a number of Offered Shares that such
Auction Offeree wishes to purchase, which shall not be in excess of the total
number of Offered Shares offered to Auction Offerees in that Tier.

 

d.     irrevocably offers to purchase all Offered
Shares allocated to such Auction Offeree in accordance with the Auction
procedures set forth in this Section 3.5(c).

 

(2)           “Tier” refers to any of the
successive stages of an Auction conducted in accordance with this
Section 3.5(c) involving offers to successive groups of Auction Offerees
as provided under the definition of Auction Offeree (as defined below).

 

(3)           “Auction Offeree” means any of
the holders of capital stock of the Company who may be offered the opportunity
to purchase Offered Shares

 

12

 

under the provisions of this Section 3.5(c)
who, if offered the opportunity to purchase Offered Shares under the provisions
of this Section 3.5(c), will be offered such opportunity in the following
order (in all cases, other than the Selling Stockholders):

 

a.     if the Offered Shares are shares of Common
Stock:

 

i.          First-Tier Auction Offeree:  the Company.

 

ii.         Second-Tier Auction Offerees:  the holders of shares of Series A Stock and
Lathi.

 

iii.        Third-Tier Auction Offerees:  the Original Stockholders.

 

iv.        Fourth-Tier Auction Offerees:  the Other Stockholders.

 

b.     if the Offered Shares are shares of Series
A Stock:

 

i.          First-Tier Auction Offeree:  the Company.

 

ii.         Second-Tier Auction Offerees:  the holders of shares of Series A Stock.

 

iii.        Third-Tier Auction Offerees:  Lathi.

 

iv.        Fourth-Tier Auction Offerees:  the Original Stockholders.

 

v.         Fifth -Tier Auction Offerees:  the Other Stockholders.

 

(4)           “Business Day” means any day
other than a Saturday, Sunday or day on which national banks in New York City
are authorized to close.

 

(ii)           Within five Business Days of receipt
by the Company of a Notice of Offer from a Selling Stockholder pursuant to
Section 3.5(b) hereof containing an election to authorize the Company to
conduct an Auction, the Company shall provide written notice (the “Company
Notice”) to the Selling Stockholder to the effect that the Board of
Directors (with the consent of the Series A Director) has determined that the
Company either (a) elects to proceed with an Auction pursuant to this
Section 3.5(c), or (b) declines to proceed with an Auction pursuant to
this Section 3.5(c). If the Board of Directors determines that the Company
elects to proceed with an Auction:

 

(1)           If the Company, as the First Tier
Auction Offeree, wishes to purchase any Offered Shares (as determined by the
Board of Directors, with the consent of the Series A Director), it shall
allocate to itself the number of Offered Shares it wishes

 

13

 

to purchase and shall provide written notice to
the Selling Stockholder within five Business Days of the date of the Company
Notice. Such notice shall set forth the number of Offered Shares the Company
has allocated to itself and the price per share that the Company will pay for
such Offered Shares, which shall not be less than the Minimum Acceptable Price.

 

(2)           If the Company, as the First Tier
Auction Offeree, does not wish to purchase any or all of the Offered Shares,
the Company shall provide written notice to each Second Tier Auction Offeree of
the commencement of the Auction for such Tier (“Notice of Auction
Commencement”) within five Business Days of the date of the Company Notice.
The Notice of Auction Commencement delivered to each Second Tier Auction
Offeree (and to the Auction Offerees of each subsequent Tier) shall set forth
the number and class of Offered Shares being offered to Auction Offerees in
such Tier, the amount of the Minimum Acceptable Price and the deadline for
submission of a Qualifying Bid. Any Second Tier Auction Offeree who wishes to
purchase Offered Shares must submit a Qualifying Bid to the Company within five
Business Days of the date of the Notice of Auction Commencement. In the event
all Offered Shares are not allocated to Second Tier Auction Offerees who have
submitted Qualifying Bids within three Business Days of the conclusion of the
five Business-Day period referred to above for Second Tier Auction Offerees
(and within three Business Days of the conclusion of a similar five
Business-Day period for successive Auction Tiers), the Company shall send
successive Notices of Auction Commencement to Auction Offerees in each
successive Tier, provided that no further Notices shall be sent
following the allocation hereunder of all of the Offered Shares.

 

(iii)          Offered Shares shall be allocated
among each Tier’s Auction Offerees 
submitting Qualified Bids in the following  manner:

 

(1)           If Qualifying Bids are submitted by
Auction Offerees in any Tier that offer to take up fewer than, or exactly, the
number of Offered Shares offered to the Auction Offerees in that Tier, such
Offered Shares will be allocated to the Auction Offerees who submitted such Qualifying
Bids. All Offered Shares allocated within a Tier shall be sold at the lowest
Bid Price submitted in such Tier.

 

(2)           If Qualifying Bids are submitted by
Auction Offerees in any Tier that offer to take up more than the number of
Offered Shares offered to the Auction Offerees in that Tier, such Offered
Shares will be allocated to the Auction Offerees who submitted such Qualifying
Bids beginning with those who submitted Qualifying Bids with the highest Bid
Prices and continuing with those who submitted Qualifying Bids with the next
highest Bid Prices and so on until all Offered Shares have been allocated to
Qualifying Bids. When the allocation process reaches the level of the lowest
Bid Prices to which Offered Shares will be allocated (the Auction Offerees
submitting such Qualifying Bids being hereinafter referred to as the “Lowest-Bid-Price
Offerees”), if there are two or more Lowest-Bid-Price Offerees who submit
Qualifying Bids having identical Bid Prices and the number of Offered Shares
remaining unallocated at that point in the allocation process exceeds the
number of Offered Shares offered to be purchased by such Lowest-Bid-Price
Offerees, such unallocated Offered Shares shall be allocated to each
Lowest-Bid-Price Offeree in proportion to the ratio of the number of shares
contained in its Qualifying Bid over the total number of shares in the

 

14

 

Qualifying Bids of all Lowest-Bid-Price Offerees.
All Offered Shares allocated within a Tier pursuant to this subsection shall be
sold at the Lowest Bid Price submitted by Auction Offerees in that Tier to
which Offered Shares are allocated hereunder.

 

(3)           If the Qualifying Bids submitted by
all Auction Offerees in all Tiers offer to take up fewer than the total number
of Offered Shares, the Company shall provide written notice to the Selling
Stockholder and:

 

a.     If the Offered Shares are shares of Series
A Stock, then the Selling Stockholder may, within a period of one month
following receipt of written notice to that effect from the Company, sell the
remaining unallocated Offered Shares to a Third-Party Transferee at a price per
share not less than the Minimum Acceptable Price. Upon any such sale, the
Third-Party Transferee of such Offered Shares shall execute the signature page
attached as Exhibit C hereto and any other agreement in form and
substance reasonably satisfactory to the Company pursuant to which such
Third-Party Transferee agrees that the Offered Shares it acquired from the
Selling Stockholder are subject to the provisions of this Agreement. Any
Third-Party Transferee to whom Offered Shares are transferred pursuant to and
in compliance with Section 3.5 (c) shall, with respect to such Offered
Shares upon consummation of such transfer, be deemed a Stockholder and shall be
included in the class of Stockholders in which the transferring Stockholder was
included under this Agreement. If the Selling Stockholder does not complete the
sale of the portion of the Offered Shares not allocated to Auction Offerees as
provided above within such one-month period, no sale of such Offered Shares by
the Selling Stockholder shall be made otherwise than in accordance with the
terms of this Agreement.

 

b.     If the Offered Shares are not shares of
Series A Stock, the Company shall so advise the Selling Stockholder, who shall
in turn advise the Company whether it wishes to reduce its Minimum Offer Price.
If the Selling Stockholder advises the Company that it wishes to reduce its
Minimum Offer Price, it shall send the Company a Notice of Offer covering such
unallocated Offered Shares, which shall then be subject to another Auction
conducted as provided herein.

 

(iv)          Following conclusion of the Auction
process hereunder, the Company shall advise the Selling Stockholder of the
identities of the Auction Offerees to which Offered Shares were allocated, the
number and class of Offered Shares so allocated, the prices at which Offered
Shares will be sold and the proposed closing date established as provided in
Section 3.5(g).

 

(v)           When Offered Shares have been
allocated as provided above, the closing will take place on a date determined
by the Company in its discretion but no less than ten (10) Business Days and no
more than thirty (30) Business Days following delivery of the notice referred
to in subsection (c)(iv) hereof.

 

(vi)          The closing of all sales of Offered
Shares pursuant to the Auction procedure described in this Section 3.5(c)
shall be conducted as provided in Section 3.5(g) hereof.

 

15

 

(d)           Within a period of ten (10) days
following (i) receipt of a Notice of Offer from the Selling Stockholders that
does not request that the Company to conduct an Auction or (ii) the delivery of
the Company Notice to the Selling Stockholders declining to proceed with an
Auction, as the case may be, the Company shall send the Notice of Offer to the
Series A Investors, Lathi, the Original Stockholders and the Other Stockholders
(each an “RFR Participant” and collectively, the “RFR Participants”)
offering to sell the Offered Shares to the RFR Participants in the manner set
forth in subsection (e) below. Within ten (10) days following the date of the
mailing of the Notice of Offer to the RFR Participants (the “RFR Option
Period”), each RFR Participant shall notify the Company as to the number of
Offered Shares, if any, it is electing to purchase (such notification is
hereinafter referred to as the “RFR Acceptance Notice”). If an RFR
Participant does not provide an RFR Acceptance Notice to the Company within the
RFR Option Period, such RFR Participant shall be deemed to have declined to
purchase any of the Offered Shares. An RFR Acceptance Notice shall be deemed to
be an irrevocable commitment to purchase from the Selling Stockholder the
number of Offered Shares which such RFR Participant has elected to purchase
pursuant to its RFR Acceptance Notice, subject to allocation of the Offered
Shares among the RFR Participants accepting the Notice of Offer, as hereinafter
provided.

 

(e)           The Offered Shares shall be allocated
for purchase among the accepting RFR Participants in the following priority:

 

(i)            if the Offered Shares are shares of
Common Stock:

 

(1)           first,
such number of Offered Shares requested to be purchased by the Company;

 

(2)           second,
such number of Offered Shares requested to be purchased by the Series A
Investors and Lathi, allocated (if necessary) pro rata on the basis of the
number of shares of Common Stock that the Series A Investors and Lathi hold on
a Fully Diluted Basis;

 

(3)           third,
such number of Offered Shares requested to be purchased by the Original
Stockholders, allocated (if necessary) pro rata on the basis of the number of
shares of Common Stock that the Original Stockholders hold on a Fully Diluted
Basis;

 

(4)           fourth,
such number of Offered Shares requested to be purchased by the Other
Stockholders, allocated (if necessary) pro rata on the basis of the number of
shares of Common Stock that the Other Stockholders hold on a Fully Diluted
Basis;

 

(ii)           if the Offered Shares are shares of
Series A Stock:

 

(1)           first,
such number of Offered Shares requested to be purchased by the Company;

 

(2)           second,
such number of Offered Shares requested to be purchased by the Series A
Investors, allocated (if necessary) pro rata on the basis of the number of shares
of Series A Stock that the Series A Investors hold on a Fully Diluted Basis;

 

16

 

(3)           third,
such number of Offered Shares requested to be purchased by Lathi;

 

(4)           fourth,
such number of Offered Shares requested to be purchased by the Original
Stockholders, allocated (if necessary) pro rata on the basis of the number of
shares of Series A Stock that the Original Stockholders hold on a Fully Diluted
Basis; and

 

(5)           fifth,
such number of Offered Shares requested to be purchased by the Other
Stockholders, allocated (if necessary) pro rata on the basis of the number of
shares of Series A Stock that the Other Stockholders hold on a Fully Diluted
Basis;

 

(f)            If the RFR Participants have not, in
the aggregate, elected to purchase all of the Offered Shares that are available
for purchase under this Section 3.5, then the Selling Stockholder may,
within a period of  forty-five (45) days
following the RFR Option Period, subject to the provisions of Section 3.6,
sell the Offered Shares to one or more Persons (a “Third-Party Transferee”)
at a price per share not less than the Offer Price. Upon any such sale, the
Third-Party Transferee of such Offered Shares shall execute the signature page
attached as Exhibit C hereto and any other agreement in form and
substance reasonably satisfactory to the Company pursuant to which such
Third-Party Transferee agrees that the Offered Shares it acquired from the
Selling Stockholder are subject to the provisions of this Agreement. Any Third-Party
Transferee to whom Offered Shares are transferred pursuant to and in compliance
with Sections 3.5(d), (e) and (f) shall, with respect to such shares upon
consummation of such transfer, be deemed a Stockholder and shall be included in
the class of Stockholders in which the transferring Stockholder was included
under this Agreement. If the Selling Stockholder does not complete the sale of
the Offered Shares within such forty-five (45) day period, the provisions of
this Section 3.5 shall again apply, and no sale of such Offered Shares by
the Selling Stockholder shall be made otherwise than in accordance with the
terms of this Agreement.

 

(g)           The closing of purchases of Offered
Shares: (i) by the Auction Offerees pursuant to Section 3.5(c) shall take
place no later than one hundred (100) days after the date of the Notice of
Offer or (ii) by the Company and the RFR Participants pursuant to Sections
3.5(d) through (f) shall take place no later than sixty (60) days after the
date of the Notice of Offer, at 10:00 A.M. local time at the principal offices
of the Company, or at such other date, time or place as the parties to the sale
may agree. At least five (5) business days prior to such closing, the Company
shall notify the Selling Stockholder(s) in writing of the names of purchasers
and the portion of the Offered Shares to be purchased by each. At such closing,
the Selling Stockholder(s) shall sell, transfer and deliver to each purchaser
full right, title and interest in and to the Offered Shares so purchased by
such purchaser, free and clear of all liens, security interests, adverse claims
or restrictions of any kind and nature (except as otherwise set forth in this
Agreement), and shall deliver to each purchaser a certificate or certificates
representing the Offered Shares sold to such purchaser, in each case duly
endorsed for transfer or accompanied by appropriate stock transfer powers duly
endorsed with signatures guaranteed by a commercial bank, trust company or
registered broker dealer and any other documents necessary for transfer. Simultaneously
with delivery of such certificates, except as otherwise agreed to in writing
between the purchaser(s) of the Offered Shares and the Selling Stockholder,
each purchaser of

 

17

 

the Offered Shares shall deliver to the Selling
Stockholder(s), by wire transfer of immediately available funds to such bank
account as the Selling Stockholder(s) shall designate, a cash amount equal to
the product of the Offer Price and the number of Offered Shares being acquired
by such purchaser, in full payment of the purchase price of the Offered Shares
purchased.

 

3.6           Tag Along Rights.

 

(a)           If, after complying with
Section 3.5 above (in the case of a Selling Stockholder), any one or more 15%
Owners, the Greenhill Funds or Jeffrey A. Mayer (each, a “Tag-Along Right
Holder”) (each, a “Selling Party”) proposes to transfer any Stock,
Common Share Equivalents or an interest therein (including, without limitation,
any equity-linked securities) to a Third-Party Transferee, then such Selling
Parties shall refrain from effecting such transfer unless, prior to the
consummation thereof, each Tag-Along Right Holder shall have been afforded the
opportunity to join in such transfer on a pro rata basis, as hereinafter
provided.

 

(b)           Prior to the consummation of any
transfer, the Selling Parties shall cause each Third-Party Transferee to offer
(the “Purchase Offer”) in writing to each Tag-Along Right Holder to
purchase that number of Stock or Common Share Equivalents (the type of which
shall be chosen by the Tag-Along Right Holder) from each such Tag-Along Right
Holder that constitutes the same percentage of the aggregate Common Stock and
Common Share Equivalents held by such Tag-Along Right Holder as the percentage
determined by dividing the number of Stock or Common Share Equivalents to be
purchased from the Selling Parties by the aggregate number of Common Stock and
Common Share Equivalents held by the Selling Parties, at the same price per
share of Common Stock (the “Joining Price”), and on such other terms and
conditions (the “Joining Terms”), as the Third-Party Transferee has
offered to purchase Offered Shares to be sold by the Selling Parties. Notwithstanding
the foregoing, if the Third-Party Transferees are acquiring Offered Shares in a
series of related transactions, or in a single transaction or series of related
transactions from multiple Selling Parties, (i) the Joining Price shall be the
highest of the prices offered by the Third-Party Transferees to any Selling
Party in any one of such transactions, and (ii) the Joining Terms shall be
those terms offered by any Third-Party Transferee to any Selling Party in any
one of such transactions which are most favorable to the offeree. Each
Tag-Along Right Holder shall have 10 days from the receipt of the Purchase
Offer in which to accept the Purchase Offer and, to the extent any such
Tag-Along Right Holder accepts such Purchase Offer in accordance with the terms
hereof and the Third-Party Transferees are unwilling to purchase all shares
requested to be purchased, the number of Offered Shares to be sold by the
Selling Parties shall be reduced pro rata based upon the number of shares each
Tag-Along Right Holder electing to sell is entitled to include in such sale
pursuant to this Section 3.6. If a Tag-Along Right Holder elects to sell
any class of Stock which is different from the class of Stock specified in the
Purchase Offer, then the Selling Party will use commercially reasonable efforts
to cause the Third-Party Transferee to permit the inclusion of such different
class of Stock on the terms specified herein (including the Equivalent Price). The
form of consideration paid in respect of such different classes of stock shall
be identical.

 

(c)           The provisions of Sections 3.5 and
3.6 shall not apply (A) to transfers to Permitted Transferees in accordance
with Section 3.4 or (B) to the repurchase of Common Stock or Common Share
Equivalents by the Company from a terminated employee or

 

18

 

consultant which purchase has been approved by
the Board of Directors, including the approval of the Series A Director and
shall terminate (i) upon the closing of a registered public offering of
the Common Stock, (ii) in the event of a Liquidation Event or (iii) upon the
termination of this Agreement as provided in Section 9.7 below. In the
event that a transfer subject to Sections 3.5 and 3.6 is proposed to be made to
a Person other than a Stockholder or the Company, the Selling Stockholders or
Selling Parties, as the case may be, shall notify such Person that the transfer
is subject to this Agreement and shall ensure that no transfer is consummated
without compliance with this Section 3.

 

(d)           Any purported transfer subject to
this Section 3.6 not made in compliance with this Section 3.6 shall
be void and shall not be consummated upon the books and records of the Company.

 

3.7           Drag Along Rights. Subject to
the rights of the Series A Investors set forth in Section (B)6 of the
Series A Certificate of Designation, if at any time after the second
anniversary of the date hereof, (i) the Board of Directors, (ii) Stockholders
holding a majority of the then outstanding shares of Voting Stock (on a Fully
Diluted Basis) and (iii) Series A Investors holding a majority of the
outstanding Series A Share Equivalents approve a sale of all or substantially
all of the Company’s assets determined on a consolidated basis or a sale of all
or substantially all of the Company’s outstanding capital stock (whether by
merger, recapitalization, consolidation, reorganization, combination or
otherwise) to an Independent Third Party or group of Independent Third Parties
(collectively, an “Approved Sale”), each Stockholder will vote for,
consent to and raise no objections to and execute all necessary documentation
with respect to such Approved Sale. If the Approved Sale is structured as (i) a
merger or consolidation, each Stockholder will waive any dissenter’s rights,
appraisal rights or similar rights in connection with such merger or
consolidation, or (ii) a sale of Stock, each Stockholder will agree to sell all
of his, her or its shares of Stock and rights to acquire shares of stock on the
terms and conditions approved by the Board of Directors. Each Stockholder will
take all necessary or desirable actions in connection with the consummation of
the Approved Sale as reasonably requested by the Company. The obligations of
the Stockholders with respect to the Approved Sale of the Company are subject
to the satisfaction of the following conditions:  (i) upon the consummation of the Approved
Sale, each Stockholder will receive the same form of consideration and the same
portion of the aggregate consideration that such Stockholder would have
received if such aggregate consideration had been distributed by the Company in
complete liquidation pursuant to the rights and preferences set forth in the
Certificate of Incorporation as in effect immediately prior to such Approved
Sale; (ii) if any holders of Common Stock are given an option as to the form
and amount of consideration to be received, each holder of Common Share
Equivalents will be given the same option; and (iii) each 15% Owner will be
given an opportunity to convert any Series A Stock held by it into Common Stock
prior to the consummation of the Approved Sale and to include shares of Common
Stock so acquired in the Approved Sale.

 

4.             Preemptive Rights.

 

4.1           Before the Company shall issue, sell
or exchange, agree to issue, sell or exchange 
any Company Securities (other than the sale of Series A Stock pursuant
to the Purchase Agreement), the Company shall have first complied with this
Section 4. The Company

 

19

 

shall offer to sell to each 15% Owner, Series A
Investor and Original Stockholder (each a “Preemptive Right Holder” and
collectively, the “Preemptive Right Holders”), Company Securities in an
amount equal to such Preemptive Right Holder’s Proportionate Percentage, at a
price and on such other material terms and conditions as shall have been
specified by the Company in writing and delivered to each Preemptive Right
Holder (the “Offer”), which Offer by its terms shall remain open and
irrevocable for a period of twenty (20) days from the date it is delivered by
the Company to each Preemptive Right Holder. “Proportionate Percentage”
means the percentage figure which expresses the ratio between the number of
shares of Common Stock and Common Share Equivalents owned by such Preemptive
Right Holder and the aggregate number of shares of Common Stock outstanding on
a Fully Diluted Basis, at the date of determination.

 

4.2           Notice of each Preemptive Right
Holder’s intention to accept, in whole or in part, an Offer shall not be
effective unless evidenced by a writing signed by such Preemptive Right Holder
and delivered to the Company prior to the end of the 20-day period of such
Offer, setting forth such portion of the Company Securities as such Preemptive
Right Holder elects to purchase (the “Notice of Acceptance”). Each
Preemptive Right Holder that shall have delivered a Notice of Acceptance to the
Company shall make full payment of the purchase price with respect to the
relevant Company Securities, in immediately available funds, simultaneously
with  the delivery of such Company Securities
to such Preemptive Right Holder.

 

4.3           In the event that a Preemptive Right
Holder does not provide a Notice of Acceptance for its entire Proportionate
Percentage of Company Securities (the “Remaining Company Securities”),
the Company shall notify the other Preemptive Right Holders and offer them
their Proportionate Percentage of the Remaining Company Securities (the “Follow-up
Offer”). The Follow-up Offer shall remain open and irrevocable for a period
of ten (10) days after the date on which notice is delivered by the Company to
such other Preemptive Right Holders. If the other Preemptive Right Holders have
elected to purchase a number of Remaining Company Securities that in the
aggregate exceeds the total number of such Preemptive Right Holder’s Proportionate
Percentage of Company Securities, the Remaining Company Securities shall be
allocated among the other Preemptive Right Holders as nearly as possible in
proportion to the number of Common Stock and Common Share Equivalents then held
by such other Preemptive Right Holders. This Section 4.3 shall be
construed and given effect in such manner that no Preemptive Right Holder shall
be required to purchase a number of Company Securities greater than such
Preemptive Right Holder’s Proportionate Percentage of Company Securities.

 

4.4           The Company shall promptly notify
each Preemptive Right Holder, if any, of the number of shares allocated to it,
and each such Preemptive Right Holder shall be obligated to purchase such
Company Securities upon the terms set forth in this Section 4.

 

4.5           Neither Lathi nor the Existing Other
Stockholders shall be entitled to receive an Offer if the issuance, sale or
exchange of Company Securities would entitle Lathi or the Existing Other
Stockholders to receive securities as a result of an Other Stockholders
Dilutive Sale or a Lathi Dilutive Sale, as the case may be, pursuant to Section
5 hereof. In addition, none of the Series A Investors shall be entitled to
receive an Offer if the issuance, sale or exchange of

 

20

 

Company Securities would cause an adjustment in
the Conversion Price in the Series A Stock under the Series A Certificate of
Designation.

 

5.             Antidilution Protection.

 

5.1           If at any time after the date hereof
and prior to the effective date of a registration statement filed with the SEC
relating to an initial public offering of equity securities by the Company, the
Company issues or sells Common Stock (or securities convertible into Common
Stock) at a per share price which is less than (i) $3.60 per share (subject to
adjustment for stock splits, stock dividends, stock combinations,
recapitalizations and similar transactions) with respect to the Other
Stockholders listed on Exhibit D (the “Existing Other
Stockholders”) (any such sale being referred to herein as an “Other
Stockholders Dilutive Sale”) and (ii) $3.87 per share (subject to
adjustment for stock splits, stock dividends, stock combinations,
recapitalizations, and similar transactions) with respect to Lathi (any such sale
being referred to herein as an “Lathi Dilutive Sale”), then:

 

(a)           In the event of an Other Stockholders
Dilutive Sale, the Company shall offer to sell to each of the Existing Other
Stockholders a number of additional shares of Common Stock (or securities
convertible into Common Stock), for a purchase price per share equal to the par
value of the Common Stock, equal to the number obtained by subtracting (A) the
number of shares of Common Stock held by the Existing Other Stockholder
immediately prior to the Other Stockholders Dilutive Sale from (B) the number
obtained by dividing (x) the number of shares of Common Stock held by the
Existing Other Stockholder immediately prior to the Other Stockholders Dilutive
Sale by (y) a fraction, the numerator of which shall be the sum of (i) the
number of shares of Common Stock issued and outstanding, immediately prior to
the Other Stockholders Dilutive Sale, plus (ii) the number of shares of Common
Stock which the consideration actually received or receivable (assuming the
receipt of all consideration payable in connection with the exercise,
conversion or exchange of all Common Stock sold) by the Company pursuant to the
Other Stockholders Dilutive Sale would purchase at a price of $3.60 per share
(subject to equitable adjustment for stock splits, stock dividends,
recapitalizations, reclassifications, reorganizations and other similar
transactions); and the denominator of which shall be the sum of (a) the number
of shares of Common Stock issued and outstanding immediately prior to such
Other Stockholders Dilutive Sale, plus (b) the number of shares of Common Stock
issued pursuant to such Other Stockholders Dilutive Sale.

 

(b)           In the event of a Lathi Dilutive
Sale, the Company shall offer to sell to Lathi a number of additional shares of
Common Stock (or securities convertible into Common Stock), for a purchase
price per share equal to the par value of the Common Stock, equal to the number
obtained by subtracting (A) the number of shares of Common Stock held by Lathi
immediately prior to the Lathi Dilutive Sale from (B) the number obtained by
dividing (x) the number of shares of Common Stock held by  Lathi immediately prior to the Lathi Dilutive
Sale by (y) a fraction, the numerator of which shall be the sum of (i) the number
of shares of Common Stock issued and outstanding, immediately prior to the
Lathi Dilutive Sale, plus (ii) the number of shares of Common Stock which the
consideration actually received or receivable (assuming the receipt of all
consideration payable in connection with the exercise, conversion or exchange
of all Common Stock sold) by the Company pursuant to the Lathi Dilutive Sale
would

 

21

 

purchase at a price of $3.87 per share (subject
to adjustment for stock splits, stock dividends, stock combinations,
recapitalizations and similar transactions); and the denominator of which shall
be the sum of (a) the number of shares of Common Stock issued and outstanding
immediately prior to such Lathi Dilutive Sale, plus (b) the number of shares of
Common Stock issued pursuant to such Lathi Dilutive Sale.

 

(i)            All calculations under this
Section 5.1 shall be made by the Company in good faith and shall be
binding upon Lathi and the Other Stockholders provided that the Company shall
make such calculations in a manner consistent with the treatment of all other
investors who are given the foregoing antidilution protection.

 

(c)           For purposes of this
Section 5.1, the consideration received by the Company for the issue of
any Common Stock or convertible securities shall be computed as follows:

 

(i)            Cash and Property. Such
consideration shall:

 

(1)           insofar as it consists of cash, be
computed at the aggregate amount of cash received by the Company;

 

(2)           insofar as it consists of property
other than cash, be computed at the fair market value thereof at the time of
such issue, as reasonably determined in good faith by the Board of Directors;
and

 

(3)           in the event Common Stock and/or
convertible securities are issued together with other shares or securities or
other assets of the Company for consideration which covers both, be the
proportion of such consideration so received for the Common Stock and/or
convertible securities, computed as provided in clauses (A) and (B) above, as
reasonably determined in good faith by the Board of Directors.

 

(ii)           Options and Convertible Securities.
The consideration per share received by the Company, relating to options and
convertible securities, shall be determined by dividing:

 

(1)           the total amount, if any, received or
receivable by the Company as consideration for the issue of such options or
convertible securities, plus the minimum aggregate amount of additional
consideration (as set forth in the instruments relating thereto, without regard
to any provision contained therein designed to protect against dilution)
payable to the Company upon the exercise in full of such options or the
conversion or exchange of all such convertible securities, or in the case of
options for convertible securities, the exercise in full of such options for
convertible securities and the conversion or exchange of all such convertible
securities, by

 

(2)           the maximum number of shares of
Common Stock (as set forth in the instruments relating thereto, without regard
to any provision contained therein designed to protect against dilution)
issuable upon the exercise of such options or conversion or exchange of such
convertible securities.

 

22

 

(d)           The provisions of this
Section 5.1 shall not apply to the issuance of (x) those options,
warrants, convertible securities or shares of Common Stock excluded from the
definition of Additional Common Stock pursuant to Section (B)4(d)(i)(4) of
the Series A Certificate of Designation or (y) any securities issued
upon the exercise or conversion of any other securities, provided that
the antidilution rights provided herein applied with respect to the initial
sale or issuance of such other securities or such other securities are
specifically excluded pursuant to clause (x) of this subsection (d).

 

(e)           Notwithstanding anything contained in
this Section 5.1 to the contrary, in the event of any issuance or sale of
Common Stock (or securities convertible into Common Stock) by the Company to
Lathi after the date hereof (a “Future Issuance”), the antidilution
protection set forth in this Section 5.1 for the benefit of Lathi shall
apply to the shares issued pursuant to such Future Issuance; provided, however,
that in the event that Lathi is granted antidilution protection with respect to
the shares issued pursuant to a Future Issuance that is (i) more favorable than
the antidilution protection set forth in Section 5.1 hereof, then the
antidilution protection granted with respect to the Future Issuance shall apply,
and the antidilution protection contained in this Section 5.1 shall be of
no effect with respect to such Future Issuance, (ii) less favorable than the
antidilution protection set forth in Section 5.1 hereof, then the
antidilution protection contained in this Section 5.1 shall apply, and the
antidilution protection granted with respect to the Future Issuance shall be of
no effect with respect to such Future Issuance or (iii) the same as the
antidilution protection set forth in Section 5.1 hereof, then the
antidilution protection granted with respect to the Future Issuance shall
apply, and the antidilution protection contained in this Section 5.1 shall
be of no effect with respect to such Future Issuance.

 

(f)            Notwithstanding the foregoing, no
adjustments shall be made pursuant to this Section 5.1 in connection with
the sale of options, warrants or other securities convertible into Common Stock
(other than any shares of capital stock, including, without limitation,
preferred stock) until such time as such option, warrant or convertible
security (other than any shares of capital stock, including, without
limitation, preferred stock) is exercised or converted into Common Stock

 

6.             Consent Requirements.

 

6.1           Consent of 10% Owners and Jeffrey
A. Mayer. Notwithstanding any other provision of this Agreement, for the
period of time during which a 10% Owner continues to own at least ten percent
(10%) of the Common Stock calculated on a Fully Diluted Basis and (y) Jeffrey
A. Mayer continues to own at least 5% of the Common Stock on a Fully Diluted
Basis (the persons described in (x) and (y) hereof shall be referred to as the “Consent
Right Holders”), the Company shall not take any of the following actions
without the prior written consent of each of the Consent Right Holders:

 

(a)           Any liquidation or dissolution of the
Company;

 

(b)           Any merger or consolidation of the
Company with any other entity;

 

23

 

(c)           Any sale of all or substantially all
of the assets of the Company;

 

(d)           Any reclassification or
recapitalization of any securities of the Company except for stock splits and
stock dividends, which shall not be subject to this Section 5.1;

 

(e)           Any amendment of the Company’s
charter or Bylaws if such amendment would materially adversely affect the
rights of the Consent Right Holders;

 

(f)            Any redemption or repurchase of
Common Stock issued or issuable to officers, directors or employees of, or
consultants to, the Corporation pursuant to (i) stock options or warrants
outstanding on the Original Issue Date, or (ii) stock agreements, purchase
plans, employee incentive programs or stock options granted after the Original
Issue Date on terms approved by the Board of Directors, except the repurchase
of Common Stock or Common Share Equivalents by the Company from a terminated
employee or consultant which purchase has been approved by the Board of
Directors and the holders of a majority of the Series A Stock; and

 

(g)           Any issuance of securities by the
Company or any Affiliate of the Company (i) in connection with the acquisitions
by the Company or any Affiliate of the Company of stock or assets of any other
entity after which, in the case of the acquisition of stock, the Company or
such Affiliate owns more than 50% of the voting power of the issuer of such
stock or (ii) in connection with a strategic joint venture or alliance between
the Company and the party to which the securities are being issued or an
Affiliate of such party thereof.

 

6.2           Consent of Board of Directors.
Subject to the rights of the Series A Investors set forth in Section (B)6
of the Series A Certificate of Designation and notwithstanding any other
provision of this Agreement, the Company may not take any of the following
actions without the prior written consent of the Board of Directors, which
consent shall include the consent of the Series A Director: 

 

(a)           Any sale by the Company or any
subsidiary of the Company of any of the securities of any subsidiary of the
Company to any entity other than the Company or another wholly-owned subsidiary
of the Company;

 

(b)           Any creation of any subsidiary other
than a wholly owned subsidiary; and

 

(c)           Any incurrence of indebtedness by the
Company in excess of $2,000,000.00 in the aggregate, other than pursuant to
(i)  any supplier financing arrangement;
(ii) loans from any bank or other institutional lender; (iii) debt
incurred in the ordinary course of the Company’s business and (iv) the Lathi
Loan Agreement.

 

7.             Covenants.

 

7.1           The Company shall not engage in any
transaction between the Company (or any subsidiary thereof) and any Affiliate
thereof without the prior approval of a majority of

 

24

 

all disinterested members of the Board of
Directors, including the Series A Director (unless all such directors shall not
be disinterested), other than (i) purchases by the Company of Stock pursuant to
Section 3.5 or (ii) transactions between the Company and Lathi pursuant to
the Lathi Loan Agreement.

 

7.2           The consent of a majority of the members
of the Board of Directors, including the Series A Director, shall be required
to approve (i) the Company’s budget and (ii) any expenditure, individually or
collectively, in excess of $250,000 in any twelve month period which is not
part of such budget, other than purchases by the Company of (i) Series A Share
Equivalents from any or all of the Series A Investors or (ii) Common Stock from
Lathi, in each case pursuant to Section 3.5(b) hereof.

 

7.3           The consent of a majority of the
members of the Compensation Committee shall be required to approve executive
compensation for Key Employees. “Key Employees” means officers of the
Company who are Vice Presidents or higher and employees of the Company with a
base salary in excess of $175,000 annually.

 

7.4           As soon as practicable, but in no
event later than 30 days from the date hereof, the Company shall use
commercially reasonable efforts and take all action necessary to obtain
directors’ and officers’ liability insurance providing coverage in such amount
that the Board of Directors determines is appropriate for companies of
established reputation engaged in the same or similar business and similarly
situated.

 

7.5           The Company (or any subsidiary
thereof) shall not purchase or hold beneficially any stock, other securities or
evidences of indebtedness in, or make any investment in any other Person,
excluding a subsidiary of the Company, without the approval of the Board of
Directors, which approval shall include the approval of the Series A Director.

 

7.6           Any decision to change the nature of
the business of the Company (or any subsidiary thereof) to any business which
is fundamentally separate and distinct from the business currently conducted by
the Company shall require the consent of the Board of Directors, which approval
shall include the approval of the Series A Director.

 

8.             Representations and Warranties.

 

8.1           Each of the parties hereto severally,
as to itself only, and not jointly, hereby represents and warrants to each of
the other parties to this Agreement that:

 

(a)           such party is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
formation and has the full right, power and authority to execute, deliver and
perform this Agreement and to bind all Persons or entities, if any, for which
it is acting pursuant to this Agreement;

 

(b)           this Agreement has been duly
authorized, executed and delivered by or on behalf of such party and
constitutes a legal, valid and binding obligation of such party and all Persons
or entities, if any, for which such party is acting, enforceable against such
party, and all such Persons or entities, if any, for which it is acting, in
accordance with its terms except

 

25

 

(i) as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of
general application affecting enforcement of creditors’ rights generally and
(ii) as enforceability may be limited by laws relating to the availability of
specific performance, injunctive relief or other equitable remedies;

 

(c)           no consent, approval, authorization
or order of any Person is required for the execution, delivery or performance
of this Agreement by such party or any such Persons or entities, if any, for which
it is acting, except for such consents, approvals, authorizations or orders,
the failure of which to obtain could not have a material adverse effect on the
Investor’s ability to consummate the transactions contemplated hereby or as
might be required in connection with the performance hereof in the course of an
extraordinary transaction contemplated hereby; and

 

(d)           neither the execution, delivery nor
performance of this Agreement by such party or any such Persons or entities, if
any, for which it is acting will (A) conflict with, or result in a breach of,
or constitute a default under, or result in a violation of, any organizational
document of such party (if applicable) or any agreement or instrument to which
such party or any such Persons or entities, if any, for which it is acting is a
party or by which such party or any such Persons or entities, if any, for which
it is acting or their property is bound, or (B) result in the violation of any
applicable law or order, judgment, writ, injunction, decree or award of any
Governmental Authority, except for such violations which could not have a
material adverse effect on the Investor’s ability to consummate the
transactions contemplated hereby.

 

8.2           Each of the Original Stockholders and
the Other Stockholders severally, as to itself only, and not jointly, hereby
represents and warrants to each of the Series A Investors that it has no
actions, causes of action, suits, claims (including, without limitation, claims
for contribution and indemnification), demands, liabilities, obligations,
promises, damages and judgments (“Claims”) against the Company and
hereby absolutely and irrevocably releases, waives, relinquishes, renounces and
discharges forever the Company from all Claims whatsoever, in law, admiralty or
equity, in the United States of America or any other jurisdiction, whether the
same be known or unknown, suspected or unsuspected, material or immaterial,
absolute or contingent. Lathi hereby represents and warrants to each of the
Series A Investors that it has no actual knowledge of any Claims that it has or
may have against the Company solely in its capacity as a stockholder of the
Company and Lathi hereby absolutely and irrevocably releases, waives,
relinquishes, renounces and discharges forever the Company from all such Claims
of which Lathi has actual knowledge whether in law, admiralty or equity, in the
United States of America or any other jurisdiction and whether such Claims be
material or immaterial, absolute or contingent. For the avoidance of doubt, the
foregoing sentence shall not constitute a release by Lathi of any Claims Lathi
has or may have against the Company in Lathi’s capacity as a lender under the
Lathi Loan Agreement whether, in law, admiralty or equity, in the United States
of America or any other jurisdiction, whether the same be known or unknown,
suspected or unsuspected, material or immaterial, absolute or contingent.

 

8.3           Each of the parties hereto agrees
that the representations and warranties set forth in this Section 8 shall
survive the execution and delivery of this Agreement.

 

26

 

8.4           Each of the Stockholders agrees that
any and all rights that a Stockholder may have been entitled to pursuant to any
written or oral agreement with the Company that pertain to tag-alongs,
drag-alongs, antidilution adjustments, preemptive rights, rights to participate
in a sale or other similar type of rights shall be superceded by this
Agreement.

 

9.             Miscellaneous.

 

9.1           “Market Stand-Off” Agreement. Each
Stockholder hereby agrees that, during the period of ninety (90) days following
the effective date of a registration statement of the Company filed under the
Securities Act in connection with an underwritten offering (and, in the case of
the initial public offering of the Company’s securities, one hundred eighty
(180) days or such shorter period as the underwriter may specify), it shall
not, if requested by the Company and such underwriter, directly or indirectly
sell, offer to sell (including, without limitation, any short sale), grant any
option to purchase, or otherwise transfer or dispose of (other than to donees,
affiliates or partners who agree to be similarly bound) any Common Stock or any
securities of the Company convertible into Common Stock held by it.

 

9.2           Injunctive Relief. Each party
hereto acknowledges that it will be impossible to measure in money the damages
that would be suffered if any party fails to comply with any of the obligations
herein imposed on such party and that in the event of any such failure, an
aggrieved Person will be irreparably damaged and will not have an adequate
remedy at law. Any such Person shall, therefore, be entitled to injunctive
relief and/or specific performance to enforce such obligations, 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.

 

9.3           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.

 

9.4           Governing Law.

 

(a)           This Agreement shall be governed by
and construed under the laws of the State of Delaware as applied to agreements
among New York residents entered into and to be performed entirely within New
York.

 

(b)           The jurisdiction and venue in any
action brought by any party hereto pursuant to this Agreement shall properly
lie in any federal or state court located in the City and State of New York. By
execution and delivery of this Agreement, each party hereto irrevocably submits
to the jurisdiction of such courts for himself or itself and in respect of his
or its property with respect to such action. The parties irrevocably agree that
venue would be proper in such court, and hereby waive any objection that such
court is an improper or inconvenient forum for the resolution of such action. The
parties further agree that the mailing by certified or registered mail, return
receipt requested, of any process required by any such court shall

 

27

 

constitute valid and lawful service of process
against them, without necessity for service by any other means provided by
statute or rule of court.

 

(c)           WAIVER
OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY KNOWINGLY,
VOLUNTARILY, INTENTIONALLY, UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY RIGHTS
IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON OR
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, ANY OF THE OTHER
AGREEMENTS OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
ORAL OR WRITTEN) OR ACTIONS OF THE INVESTORS.

 

9.5           Entire Agreement; Amendment;
Waiver. This Agreement:  (a) contains
the entire agreement among the parties hereto with respect to the subject
matter hereof, (b) supersedes all prior written agreements and negotiations and
oral understandings, if any, with respect thereto, (c) may not be amended or
supplemented except by an instrument or counterparts thereof in writing signed
by the Company, Lathi, Charter Mx and by Stockholders holding a majority of the
then outstanding shares of Voting Stock, provided, however, that
any amendment which would affect any Stockholder materially and adversely in a
manner that is disproportionate to other similarly situated Stockholders shall
require the consent of such Stockholder, and (d) amends and restates the
Existing Shareholders Agreement in its entirety and as a result such Existing
Shareholder Agreement is terminated and of no force and effect. The observance
of any term of this Agreement may be waived (either generally or in a
particular instance and either retroactively or prospectively), only with the
written consent of the Company, Lathi, Charter Mx and Stockholders holding a
majority of the then outstanding shares of Voting Stock. Any amendment or
waiver effected in accordance with this paragraph shall be binding upon each
holder of any securities outstanding (including securities into which such
securities are convertible), each future holder of all such securities, and the
Company. The waiver by any party of a breach of any term or provision of this
Agreement shall not be construed as a waiver of any subsequent breach.

 

9.6           Binding Effect; Assignment. This
Agreement shall be binding on and inure to the benefit of the parties hereto
and their respective legal representatives, successors and assigns. The rights
and obligations arising from this Agreement shall be transferred in connection
with the transfer by a Stockholder to any Person of any Common Stock or Common
Share Equivalents in compliance with this Agreement, other than in a registered
public offering or in Rule 144 Sales, and any such Person shall conclusively be
deemed to have agreed to be bound by this Agreement. Notwithstanding the
foregoing, each Stockholder and each assignee of each Stockholder may, without
the Company’s consent, assign its rights under this Agreement, in whole or in
part, to any other Stockholder or any affiliate or Permitted Transferee of any
Stockholder, and the terms and conditions of this Agreement shall inure to the
benefit of and be binding upon their respective successors and assigns.

 

9.7           Termination. This Agreement
shall terminate upon the occurrence of any of the following events: (a) the
entry of an order for relief in a proceeding involving the Company as debtor
under Title 11 of the United States Code entitled “Bankruptcy,” as now or

 

28

 

hereafter in effect, or any successor thereto
(the “Bankruptcy Code”); (b) the appointment of a receiver, trustee or
custodian (as defined in the Bankruptcy Code) in respect of the Company; (c) a
Qualified Public Offering; or (d) the sale of the Company or its business,
regardless of the form of such transaction.

 

9.8           Invalidity of Provision. The
invalidity or unenforceability of any provision of this Agreement in any
jurisdiction shall not affect the validity or enforceability of the remainder
of this Agreement in that jurisdiction or the validity or enforceability of
this Agreement, including that provision, in any other jurisdiction.

 

9.9           Notice. All notices and other
communications provided for herein shall be dated and in writing and shall be
deemed to have been duly given (x) on the date of delivery, if delivered personally
or by telecopier, receipt confirmed, (y) on the first following business day,
if delivered by a recognized overnight courier service, or (z) three days after
mailing, if sent by registered or certified mail, return receipt requested,
postage prepaid, in each case, to the party to whom it is directed at the
address set forth opposite his or its name on the signature pages hereto (or at
such other address as any party hereto shall hereafter specify by notice in
writing to the other parties hereto).

 

9.10         Headings; Execution in Counterparts.
The headings and captions contained herein are for convenience of reference
only and shall not control or affect the meaning or construction of any
provision hereof. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. Facsimile counterpart signatures to
this Agreement are valid.

 

9.11         Pronouns. Whenever the context
may require, any pronouns used in this Agreement shall include the
corresponding masculine, feminine or neuter forms, and the singular form of
nouns and pronouns shall include the plural, and vice versa.

 

9.12         Attorneys’ Fees. If any action
at law or in equity is necessary to enforce or interpret the terms of this
Agreement, the prevailing party shall be entitled to reasonable attorneys’
fees, costs and necessary disbursements in addition to any other relief to
which such party may be entitled.

 

9.13         Certain Stockholders. Each
Stockholder that is an entity that was formed for the sole purpose of acquiring
Preferred Stock, Common Stock and/or Common Share Equivalents or that has no
substantial assets other than Preferred Stock, Common Stock and/or Common Share
Equivalents or interests in such securities agrees that (a) shares of its
capital stock or other instruments, certificates or documents reflecting equity
interests in such entity (and the shares of capital stock or other equity
interests in any similar entities controlling such entity) will note the
restrictions contained in this Agreement on the transfer of securities as if
such common stock or other equity interests were Preferred Stock, Common Stock
or Common Share Equivalents, as applicable, and (b) no shares of such capital
stock or other equity interests may be transferred to any person or entity
other than in accordance with the terms and provisions of this Agreement as if
such capital stock or other equity interests were Preferred Stock, Common Stock

 

29

 

or Common Share Equivalents, as applicable. Any
transfer or attempted transfer in contravention of the foregoing shall be void
ab initio.

 

9.14         Additional Stockholders. As a
condition precedent to the future grant of any stock option and/or stock award
by the Company to any Person who is not then a party to this Agreement, such
Person shall execute a counterpart of this Agreement and thereafter shall be
deemed to be a “Stockholder” for all purposes of this Agreement; provided, however,
that such Person shall not be entitled to the rights set forth in Sections 3.6,
4, 5 and 6.1.

 

9.15         Effectiveness.       This Agreement shall be effective for all
Stockholders, other than the Series A Investors, immediately upon the execution
of this Agreement by holders holding the requisite percentage of Stock (as
defined in the Existing Shareholders Agreement) of the Company necessary to
amend the Existing Shareholders Agreement. This Agreement shall be effective
for the Series A Investors upon the issuance of the Series A Stock pursuant to
the Purchase Agreement.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

30

 

IN
WITNESS WHEREOF, the undersigned have executed this Third Amended and Restated
Stockholders’ Agreement as of the date first written above.

 

	
   

  	
  MXENERGY INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Jeffrey A. Mayer

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jeffrey A. Mayer

  
	
   

  	
   

  	
  Title:

  	
  Its President

  
					

 

	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  20 Summer Street

  
	
   

  	
  Stamford, CT 06901

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CHARTER MX LLC

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  Charterhouse Equity Partners IV, L.P.,

  
	
   

  	
   

  	
  Its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  CHUSA Equity Investors IV, L.P.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Charterhouse Equity IV, LLC,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jen Guzman

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jen Guzman

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
  1105 Market Street

  
	
   

  	
  Suite 1300

  
	
   

  	
  Wilmington, DE 19899

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Proskauer Rose LLP

  
	
   

  	
  1585 Broadway

  
	
   

  	
  New York, NY 02215

  
	
   

  	
  Attn: Lauren K. Boglivi

  

 

31

 

	
   

  	
  LATHI LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Harvard Management Company, Inc.,

  
	
   

  	
   

  	
  pursuant to delegated authority

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  600 Atlantic Avenue

  
	
   

  	
  Boston, MA 02210

  
	
   

  	
  Attn: Megan Kelleher

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Ropes & Gray LLP

  
	
   

  	
  One International Place

  
	
   

  	
  Boston, MA 02215

  
	
   

  	
  Attn: Leigh Fraser

  

 

32

 

	
   

  	
  INVESTORS:

  
	
   

  	
   

  
	
   

  	
  GREENHILL CAPITAL PARTNERS,
  L.P.

  
	
   

  	
   

  
	
   

  	
  GREENHILL CAPITAL PARTNERS

  (CAYMAN), L.P.

  
	
   

  	
   

  
	
   

  	
  GREENHILL CAPITAL PARTNERS

  (EXECUTIVES), L.P.

  
	
   

  	
   

  
	
   

  	
  GREENHILL CAPITAL, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  GCP Managing Partner, L.P., as managing

  general partner of each of the foregoing

  partnerships

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  Greenhill Capital Partners, LLC, its general

  partner

  
	
   

  	
   

  	
   

  

 

	
   

  	
  By: 

  	
  /s/ V. Frank
  Pottow

  	
   

  
	
   

  	
   

  	
  Name:

  	
  V. Frank Pottow

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
					

 

	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  c/o Greenhill Capital Partners

  
	
   

  	
  300 Park Avenue, 23rd floor,

  
	
   

  	
  New York, New York 10022

  
	
   

  	
  Attn:

  

 

	
   

  	
  ORIGINAL STOCKHOLDERS:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
    /s/ Jeffrey A. Mayer

  
	
   

  	
  Jeffrey A. Mayer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
    /s/ Carole R. Artman-Hodge

  
	
   

  	
  Carole R. Artman-Hodge

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
    /s/ Daniel P. Burke, Sr.

  
	
   

  	
  Daniel P. Burke, Sr.

  

 

 

33

 

	
   

  	
  OTHER STOCKHOLDERS:

  

 

	
   

  	
  By

  	
  /s/ Robert Gould

  
	
   

  	
   

  	
  Robert Gould

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JED Communications Associates, Inc.

  
	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  By

  	
  /s/ Daniel Bergstein

  
	
   

  	
   

  	
   

  	
  Name: Daniel Bergstein

  
	
   

  	
   

  	
   

  	
  Title: President

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Seymour Mayer

  
	
   

  	
   

  	
  Seymour Mayer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Matthew D. Stewart UGMA

  
	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  By

  	
  /s/ John A. Stewart

  
	
   

  	
   

  	
   

  	
  John A. Stewart, Trustee

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Susan Fast

  
	
   

  	
   

  	
  Susan Fast

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ David Diesenhouse

  
	
   

  	
   

  	
  David Diesenhouse

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Arlene Diesenhouse

  
	
   

  	
   

  	
  Arlene Diesenhouse

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Augustus J. Costaldo

  
	
   

  	
   

  	
  Augustus J. Costaldo

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Karen L. Costaldo

  
	
   

  	
   

  	
  Karen L. Costaldo

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Brandt Zembach

  
	
   

  	
   

  	
  Brandt Zembach

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Stewart Family Trust

  
	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  By

  	
  /s/ Jacalyn Diesenhouse

  
	
   

  	
   

  	
   

  	
  Jacalyn Diesenhouse, Trustee

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Gary L. Seevers

  
	
   

  	
   

  	
  Gary L. Seevers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Shelly Kassen

  
	
   

  	
   

  	
  Shelly Kassen

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Doug Bowen

  
	
   

  	
   

  	
  Doug Bowen

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Ellen Bowen

  
	
   

  	
   

  	
  Ellen Bowen

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Vogel Partners LP

  
	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  By

  	
  /s/
  Stephen A. Vogel

  
	
   

  	
   

  	
   

  	
  Name:
  Stephen A. Vogel

  
	
   

  	
   

  	
   

  	
  Title:
  General Partner

  

 

	
   

  	
  By

  	
  /s/
  Michael Bergstein

  
	
   

  	
   

  	
  Michael
  Bergstein

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  Kelvin Westbrook

  
	
   

  	
   

  	
  Kelvin
  Westbrook

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Donald Marshall

  
	
   

  	
   

  	
  Donald Marshall

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ William F. Schwitter

  
	
   

  	
   

  	
  William F. Schwitter

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Seth M. Zachary

  
	
   

  	
   

  	
  Seth M. Zachary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ John S. McGeeney

  
	
   

  	
   

  	
  John S. McGeeney

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Thomas M. Cunningham

  
	
   

  	
   

  	
  Thomas M. Cunningham

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ E. Buckley Griswold

  
	
   

  	
   

  	
  E. Buckley Griwold

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  L&L Capital Partners

  
	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  By

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
   

  	
   

  	
  Title: Member Manager

  

 

	
   

  	
  Nakoma Investments, LLC

  
	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  By

  	
  /s/ Irwin F. Smith

  
	
   

  	
   

  	
   

  	
  Name: Irwin F. Smith

  
	
   

  	
   

  	
   

  	
  Title: Senior Managing Director

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ William L. Jaffe, M.D.

  
	
   

  	
  William L. Jaffe, M.D.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Robert H. Steele

  
	
   

  	
  Robert H. Steele

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Bob Blake

  
	
   

  	
  Bob Blake

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Emmett Capanna

  
	
   

  	
  Emmett Capanna

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Chaitu Parikh

  
	
   

  	
  Chaitu Parikh

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Greg Taffet

  
	
   

  	
  Greg Taffet

  
	
   

  	
   

  	
   

  
	
   

  	
  Advest Inc. Custodian FBO Jacalyn Diesenhouse IRA
  A/C#WPR-810903

  
	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  By

  	
  /s/ Jacalyn Diesenhouse

  
	
   

  	
   

  	
   

  	
  Jacalyn Diesenhouse

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Brian Mayer

  
	
   

  	
  Brian Mayer, by Jeffrey Mayer, Guardian

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Marshall Mayer

  
	
   

  	
  Marshall Mayer, by Jeffrey Mayer, Guardian

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Citigroup Global Market as IRA Custodian FBO John
  Stewart

  
	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  By

  	
  /s/ John Stewart

  
	
   

  	
   

  	
   

  	
  John Stewart

  

 

 

34Exhibit 10.16

Execution Copy

 

REGISTRATION RIGHTS AGREEMENT

 

This
REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made as of June 25, 2004 by
and among MxEnergy Inc., a Delaware corporation (the “Company”), Lathi LLC, a
Delaware limited liability company (“Lathi”), Charter Mx LLC, a Delaware
limited liability company (“Charter Mx”), Greenhill Capital Partners,
L.P., Delaware limited partnership, Greenhill Capital Partners (Cayman), L.P.,
a Cayman Islands limited partnership, Greenhill Capital Partners (Executives),
L.P., a Delaware limited partnership, Greenhill Capital, L.P., a Delaware
limited partnership (and together with Charter Mx, the “Series A Investors”),
and Jeffrey A. Mayer, Carol R. Artman-Hodge and Daniel P. Burke, Sr. (each, an “Original
Stockholder” and collectively, the “Original Stockholders”).

 

RECITALS:

 

A.            Concurrently with the execution of
this Agreement, the Series A Investors are acquiring from the Company shares of
the Company’s Series A Convertible Preferred Stock, par value $0.01 per
share (“Series A Stock”), pursuant to the Series A Convertible
Preferred Stock Purchase Agreement of even date herewith (the “Purchase
Agreement”).

 

B.            By entering into this Agreement, the
Company wishes to provide a further inducement to the Series A Investors to
purchase the Series A Stock pursuant to the Purchase Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing, the parties agree as follows:

 

1.             Definitions. For purposes of
this Agreement:

 

(a)           “Common Stock” means shares of common stock, par
value $0.01 per share, of the Company.

 

(b)           “Exchange Act” means the Securities Exchange Act of
1934, as amended.

 

(c)           “Form S-1” means such form under the Securities Act
as in effect on the date hereof or any registration form under the Securities Act
subsequently adopted by the SEC used for the initial public offering of
securities.

 

(d)           “Form S-3” means such form under the Securities Act
as in effect on the date hereof or any registration form under the Securities
Act subsequently adopted by the SEC which permits inclusion or incorporation of
substantial information by reference to other documents filed by the Company
with the SEC.

 

(e)           “Holder” means any Person owning or having the
right to acquire Registrable Securities, or any assignee thereof in accordance
with Section 11 hereof.

 

(f)            “Initiating Holders” means the Holder(s)
initiating a registration request under Sections 2(a) or 2(b) below.

 

 

(g)           “Lathi Request” means a request from Lathi that the
Company file a registration statement under the Securities Act covering the
registration of fifty percent (50%) or more of the Registrable Securities owned
by Lathi as of the date of such request, provided that the anticipated
aggregate offering price, net of underwriting discounts and commissions, shall
be for an amount not less than $10,000,000.

 

(h)           “majority in interest of the Initiating Holders”
means Initiating Holders holding a majority of the Registrable Securities held
by all Initiating Holders.

 

(i)            “Person” means any individual, partnership,
limited liability company, joint venture, corporation, association, trust or
any other entity or organization.

 

(j)            “Register,” “registered,” and “registration”
refer to a registration effected by preparing and filing a registration
statement or similar document in compliance with the Securities Act, and the
declaration or ordering of effectiveness of such registration statement or
document.

 

(k)           “Registrable Securities” means, collectively, (i)
any Common Stock directly or indirectly issuable or issued upon conversion of
the Series A Stock owned by the Series A Investors; (ii) the shares of Common
Stock owned by the Series A Investors, Lathi or the Original Stockholders on
the date hereof; (iii) any shares of Common Stock hereafter acquired by any
Series A Investor, Lathi or any Original Stockholder; and (iv) any shares of
Common Stock hereafter distributed to any Series A Investors, Lathi or any
Original Stockholder by the Company as a stock dividend or otherwise; provided,
however, that any such securities shall cease to be Registrable
Securities when (a) such securities shall have been registered under the
Securities Act, the registration statement with respect to the sale of such
securities shall have become effective under the Securities Act and such securities
shall have been disposed of pursuant to such effective registration statement;
(b) such securities shall have been otherwise transferred, if new certificates
or other evidences of ownership for them not bearing a legend restricting
further transfer and not subject to any stop transfer order or other
restrictions on transfer shall have been delivered by the Company and
subsequent disposition of such securities shall not require registration or
qualification of such securities under the Securities Act or any state
securities law then in force; or (c) such securities shall cease to be
outstanding.

 

(l)            “SEC” means the Securities and Exchange
Commission.

 

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

 

(n)           “Series A Request” means a request from Series A
Investors that the Company file a registration statement under the Securities
Act covering the registration of fifty percent (50%) or more of the Registrable
Securities owned by the Series A Investors as of the date of such request, provided
that the anticipated aggregate offering price, net of underwriting
discounts and commissions, shall be for an amount not less than $10,000,000.

 

(o)           “Series A Stock” means the Series A Convertible
Preferred Stock of the Company.

 

2

 

(p)           “Violation” means any of the following statements,
omissions or violations:  (i) any untrue
statement or alleged untrue statement of a material fact contained in a
registration statement filed under or referred to in this Agreement, including
any preliminary prospectus or final prospectus contained therein or any
amendments or supplements thereto or any documents filed under state securities
or “blue sky” laws in connection therewith, (ii) 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, or (iii) any violation or alleged
violation by the Company of the Securities Act, the Exchange Act, any state
securities law or any rule or regulation promulgated under the Securities Act,
the Exchange Act or any state securities law arising from, relating to or in
connection with the offer and sale of Registrable Securities pursuant to this
Agreement.

 

2.             Demand Registration.

 

(a)           Lathi Request. If at any time after one hundred
eighty (180) days after the effective date of the initial public offering of
the Company’s securities, the Company shall receive a written Lathi Request
that the Company file a registration statement under the Securities Act, then
the Company shall, within ten (10) days of the receipt thereof, give written
notice of such request to all Holders and, subject to the limitations of
Section 2(c) below, shall file (as expeditiously as practicable, and in any event
within ninety (90) days of the receipt of such request) and use commercially
reasonable efforts to effect, a registration statement under the Securities Act
with respect to all Registrable Securities which the Holders request to be
registered within twenty (20) days of the mailing of such notice by the Company
in accordance with Section 19 below.

 

(b)           Series A Request. If at any time after one hundred
eighty (180) days after the effective date of the initial public offering of
the Company’s securities, the Company shall receive a written Series A Request
that the Company file a registration statement under the Securities Act, then
the Company shall, within ten (10) days of the receipt thereof, give written
notice of such request to all Holders and, subject to the limitations of
Section 2(c) below, shall file (as expeditiously as practicable, and in any
event within ninety (90) days of the receipt of such request) and use
commercially reasonable efforts to effect, a registration statement under the
Securities Act with respect to all Registrable Securities which the Holders
request to be registered within twenty (20) days of the mailing of such notice
by the Company in accordance with Section 19 below.

 

(c)           If the Initiating Holders intend to distribute the Registrable
Securities covered by their request pursuant to Section 2(a) or 2(b), as the
case may be, by means of an underwriting, they shall so advise the Company as a
part of their request made pursuant to this Section 2 and the Company shall
include such information in the written notice referred to in Section 2(a) or
2(b), as the case may be. In such event, the right of any Holder to include
such Holder’s Registrable Securities in such registration shall be conditioned
upon such Holder’s participation in such underwriting and the inclusion of such
Holder’s Registrable Securities in the underwriting (unless otherwise mutually
agreed by a majority in interest of the Initiating Holders and such Holder) to
the extent provided herein. A majority in interest of the Initiating Holders of
Registrable Securities participating in the underwriting, subject to the
consent of the Company, which consent shall not be unreasonably withheld, shall
select the managing

 

3

 

underwriter or underwriters in such underwriting. All Holders proposing
to distribute their securities through such underwriting shall (together with
the Company as provided in Section 4(f)) enter into an underwriting agreement
(and related custody agreements and powers of attorney) in customary form with
the underwriter or underwriters selected for such underwriting by a majority in
interest of such Initiating Holders; provided, however, that no
Holder (or any of their assignees) shall be required to make any
representations, warranties or indemnities except as they relate to such Holder’s
ownership of shares and authority to enter into the underwriting agreement and
to such Holder’s intended method of distribution, and the liability of such
Holder shall be limited to an amount equal to the net proceeds from the
offering received by such Holder. Notwithstanding any other provision of this
Section 2, if the underwriter advises the Initiating Holder that marketing
factors require a limitation of the number of shares to be underwritten, then
the Initiating Holder shall so advise the Company and the Company shall so
advise all Holders of Registrable Securities which would otherwise be
underwritten pursuant hereto, and the number of shares of Registrable
Securities that may be included in the underwriting shall be allocated as
follows:  (i) first, among the Initiating Holders requesting
registration pursuant to Sections 2(a) or 2(b) as the case may be, until such
Holders have included in the underwriting all shares requested by such holders
to be included and allocated (if necessary) pro rata on the basis of the number
of Registrable Securities that each Initiating Holder has requested to be
included in such registration, (ii) second, among Holders of Registrable Securities
that have elected to participate in such underwritten offering, in proportion
(as nearly as practicable) to the aggregate amount of Registrable Securities
held by all such Holders, until such Holders have included in the underwriting
all shares requested by such Holders to be included, and (iii) thereafter, among all other holders of Common Stock, if
any, that have the right and have elected to participate in such underwritten
offering, in proportion (as nearly as practicable) to the amount of shares of
Common Stock owned by such holders. Without the consent of a majority in
interest of the Holders of Registrable Securities participating in a
registration referred to in Section 2(a), no securities other than Registrable
Securities shall be covered by such registration if the inclusion of such other
securities would result in a reduction of the number of Registrable Securities
covered by such registration or included in any underwriting or if, in the
opinion of the managing underwriter, the inclusion of such other securities
would adversely impact the marketing of such offering.

 

(d)           The Company shall not be obligated to effect: (i) in the
case of a Lathi Request pursuant to Section 2(a), more than two (2)
registrations and (ii) in the case of a Series A Request pursuant to Section
2(b), more than (x) one registration on Form S-1 and (y) two (2) registrations
on Form S-3. In order to count as an “effected” registration statement, such
registration statement shall not have been withdrawn and all shares registered
pursuant to it (excluding any overallotment shares) shall have been sold.

 

(e)           Notwithstanding the foregoing, if the Company shall
furnish to the Initiating Holders requesting a registration statement pursuant
to this Section 2, a certificate signed by the Chief Executive Officer of the
Company stating that in the good faith judgment of the Board of Directors of
the Company, it would be seriously detrimental to the Company and its
stockholders for such registration statement to be filed and it is therefore
essential to defer the filing of such registration statement, the Company shall
have the right to defer such filing for a period of not more than ninety (90)
days after receipt of the request of the Initiating Holders; provided, however,
that the Company may not utilize this right more than once in any twelve

 

4

 

(12) month period; provided further, that the Company shall have
no obligation to effect any registration pursuant to Section 2(a) or 2(b) during
the period starting with the sixty (60) days prior to the Company’s good faith
estimate of the date of filing of, and ending on a date ninety (90) days after
the effective date of, a registration statement filed by the Company under the
Securities Act, provided that the Company is actively employing in good faith
all reasonable efforts to cause such registration to become effective.

 

3.             Piggyback Registration. If
(but without any obligation to do so) the Company proposes to register
(including for this purpose a registration effected by the Company for
stockholders other than the Series A Investors or Lathi) any of its stock or
other securities under the Securities Act in connection with the public
offering of such securities solely for cash (other than a registration on Form
S-8 (or similar or successor form) relating solely to the sale of securities to
participants in a Company stock option, stock purchase or other stock-based
compensation arrangements to the extent includable on Form S-8 (or similar or
successor form), or a registration relating solely to an transaction under Rule
145 of Securities Act on Form S-4 (or similar or successor form) or a
registration in which the only Common Stock being registered is Common Stock
issuable upon conversion of debt securities which are also being registered)
(each such registration not withdrawn or abandoned prior to the effective date
thereof being herein called a “Piggyback Registration”), the Company
shall, at such time, promptly give each Holder written notice of such
registration not later than thirty (30) days prior to the anticipated filing
date of such Piggyback Registration. Upon the written request of each Holder
given within twenty (20) days after mailing of such notice by the Company in
accordance with Section 19, the Company shall, subject to the provisions of
Section 8, use commercially reasonable efforts to cause to be registered under
the Securities Act all of the Registrable Securities that each such Holder has
requested to be registered. The Company shall have no obligation under this
Section 3 to make any offering of its securities, or to complete an offering of
its securities that it proposes to make. Any selling Holder shall be permitted
to withdraw all or any part of its Registrable Securities from any Piggyback
Registration at any time prior to the effective date of such Piggyback
Registration.

 

4.             Obligations of the Company.
Whenever required under this Agreement to effect the registration of any
Registrable Securities, the Company shall, as expeditiously as reasonably
possible:

 

(a)           Prepare and file with the SEC a registration statement
with respect to such Registrable Securities and use commercially reasonable
efforts to cause such registration statement to become effective, keep such
registration statement effective for up to one hundred twenty (120) days or
until the Holders have completed the distribution referred to in such
registration statement, whichever occurs first (but in any event for at least
any period required under the Securities Act); provided
that before filing such registration statement or any amendments thereto,
the Company will furnish to the Holders copies of all such documents proposed
to be filed.

 

(b)           Prepare and file with the SEC such amendments and
supplements to such registration statement and the prospectus used in
connection with such registration statement as may be necessary to comply with
the provisions of the Securities Act with respect to the disposition of all
securities covered by such registration statement.

 

5

 

(c)           Furnish to the Holders such number of copies of such
registration statement and of each amendment and supplement thereto (in each
case including all exhibits), such number of copies of the prospectus contained
in such registration statement (including each preliminary prospectus and any
summary prospectus) and any other prospectus filed under Rule 424 under the
Securities Act, in conformity with the requirements of the Securities Act, and
such other documents as Holders may reasonably request in order to facilitate
the disposition of Registrable Securities owned by them.

 

(d)           Use commercially reasonable efforts to register and
qualify the securities covered by such registration statement for offer and
sale under such other securities or “blue sky” laws of such states or
jurisdictions as shall be reasonably requested by the Holders, provided that
the Company shall not be required in connection therewith or as a condition
thereto (i) to qualify to do business in any state or jurisdiction where it
would not otherwise be required to qualify but for the requirements of this
clause (d), or (ii) to take any action which would subject it to general
service of process or taxation.

 

(e)           Use diligent efforts to cause all Registrable Securities
covered by such registration statement to be registered with or approved by
such other governmental agencies or authorities as may be necessary by virtue
of the Company’s business or operations to enable the seller or sellers thereof
to consummate the disposition of such Registrable Securities.

 

(f)            In the event of any underwritten public offering, enter
into and perform its obligations under an underwriting agreement, in usual and
customary form, with the managing underwriter of such offering. Each Holder
participating in such registration shall also enter into and perform its
obligations under such an agreement.

 

(g)           Notify each Holder of Registrable Securities covered by
such registration statement at any time when a prospectus relating thereto is
required to be delivered under the Securities Act of the happening of any event
of which it has knowledge as a result of which the prospectus included in such
registration statement, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein
or necessary to make the statements therein not misleading in the light of the
circumstances then existing.

 

(h)           Notify each Holder of Registrable Securities covered by
such registration statement and such Holder’s underwriters, if any, and confirm
such advice in writing:  (i) when the
registration statement has become effective, (ii) when any post-effective
amendment to the registration statement becomes effective and (iii) of any
request by the SEC for any amendment or supplement to the registration
statement or prospectus or for additional information.

 

(i)            Notify each Holder of Registrable Securities if at any
time the SEC should institute or threaten to institute any proceedings for the
purpose of issuing, or should issue, a stop order suspending the effectiveness
of the Registration Statement. Upon the occurrence of any of the events
mentioned in the preceding sentence, the Company will use commercially
reasonable efforts to prevent the issuance of any such stop order or to obtain
the withdrawal thereof as soon as possible. The Company will advise each Holder
of Registrable

 

6

 

Securities promptly of any order or communication of any public board
or body addressed to the Company suspending or threatening to suspend the
qualification of any Registrable Securities for sale in any jurisdiction.

 

(j)            Furnish, at the request of any Holder requesting
registration of Registrable Securities pursuant to this Agreement, (i) on the
date that such Registrable Securities are delivered to the underwriters for
sale in connection with a registration pursuant to this Agreement, if such
securities are being sold through underwriters, or, if such securities are not
being sold through underwriters, on the date that the registration statement
with respect to such securities becomes effective, an opinion, dated such date,
of the counsel representing the Company for the purposes of such registration,
in form and substance as is customarily given to underwriters in an
underwritten public offering, addressed to the underwriters, if any, and to the
Holders requesting registration of Registrable Securities and (ii) on the date
that the registration statement with respect to such securities becomes
effective, a “comfort” letter dated such date, from the independent certified
public accountants of the Company, in form and substance as is customarily
given by independent certified public accountants to underwriters in an
underwritten public offering, addressed to the underwriters, if any, and to the
Holders requesting registration of Registrable Securities (the Company shall
use commercially reasonably efforts to achieve this), and, if such securities
are being sold through underwriters, a reaffirmation of such letter on the date
that such Registrable Securities are delivered to the underwriters for sale.

 

(k)           As soon as practicable after the effective date of the
registration statement, and in any event within sixteen (16) months thereafter,
have “made generally available to its security holders” (within the meaning of
Rule 158 under the Securities Act) an earning statement (which need not be
audited) covering a period of at least twelve (12) months beginning after the
effective date of the registration statement and otherwise complying with
Section 11(a) of the Securities Act.

 

(l)            Cause all such Registrable Securities registered pursuant
hereunder to be listed on each securities exchange or quotation system on which
similar securities issued by the Company are then listed or quoted.

 

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

 

(n)           take all actions necessary to comply with the provisions
of the Sarbanes-Oxley Act of 2002, as amended, and the rules of the applicable
securities exchange or quotation system on which the Company’s securities are
listed or quoted including, but not limited to, establishing internal
disclosure controls and procedures (including internal control over financial
reporting), establishing or changing committees of the Board of Directors and
electing independent directors, including a “qualified financial expert”; and

 

5.             Furnish Information. It
shall be a condition precedent to the obligations of the Company to take any
action pursuant to this Agreement with respect to the Registrable Securities of
any selling Holder that such Holder shall furnish to the Company such
information regarding itself, the Registrable Securities held by it, and the
intended method of disposition of

 

7

 

such securities as shall be required to effect the
registration of such Holder’s Registrable Securities. If any registration
statement or comparable statement under the Securities Act refers to a Series A
Investor, Lathi or any of their respective affiliates, by name or otherwise, as
the holder of any securities of the Company then, unless counsel to the Company
advises the Company that such reference be included in any such statement
pursuant to any applicable law, rule or regulation, each such holder shall have
the right to require the deletion of such reference to itself and its
affiliates.

 

6.             Expenses of Demand Registration.
All expenses, other than underwriting discounts and commissions relating to
Registrable Securities, incurred in connection with registrations, filings or
qualifications pursuant to Section 2, including without limitation all
registration, filing and qualification fees, printers’ and accounting fees,
fees and disbursements of counsel for the Company, and the reasonable fees and
disbursements of one counsel (selected by the Initiating Holders) for the
selling Holders shall be borne by the Company, provided however, that
such fees shall be borne pro rata by the selling Holders based on the number of
shares of Common Stock sold for all subsequent registrations filed pursuant to
a Lathi Request or a Series A Request after the first request made by each of
Lathi and the Series A Investors.

 

7.             Expenses of Company Registration.
The Company shall bear and pay all expenses incurred in connection with any
registration, filing or qualification of Registrable Securities with respect to
the registrations pursuant to Section 3 for each Holder, including without
limitation all registration, filing and qualification fees, printers’ and
accounting fees relating or apportionable thereto and the reasonable fees and
disbursements of one counsel for the selling Holders (selected by the Holders
of a majority of the Registrable Securities being registered), but excluding
underwriting discounts and commissions relating to Registrable Securities.

 

8.             Underwriting Requirements.
In connection with any offering initiated by the Company involving an
underwriting of shares being issued by the Company, the Company shall not be
required under Section 3 to include any Holder’s securities in such underwriting
unless such Holder accepts the terms of the underwriting as agreed upon between
the Company and the underwriters selected by it, and then only in such quantity
as will not, in the opinion of the underwriters, exceed the largest number of
securities requested to be included in such offering which can be sold without
having an adverse effect on such offering by the Company; provided, however, that the
liability of such Holder shall be limited to an amount equal to the net
proceeds from the offering received by such Holder. If the total number of
securities, including Registrable Securities, requested by stockholders to be
included in such offering (or in any other offering in which Holders shall have
the right to include Registrable Securities pursuant to Section 3) exceeds the
largest number of securities that the underwriters reasonably believe can be
sold without having an adverse effect on such offering, then the Company shall
be required to include in the offering only that number of such securities, including
Registrable Securities, which the underwriters believe will not have an adverse
effect on such offering, in the following priority:

 

(a)           if initiated by the Company: (i) first, securities of the Company to be sold for
the account of the Company; (ii) second, the Registrable Securities requested to be
included by Lathi and the Series A Investors, allocated (if necessary) pro rata
on the basis of the

 

8

 

number of Registrable Securities that each such party has requested to
be included in such registration; (iii) third, the
Registrable Securities requested to be included by the Original Stockholders,
allocated (if necessary) pro rata on the basis of the number of Registrable
Securities that each such Original Stockholder has requested to be included in
such registration; and (iv) fourth, securities of the Company to be sold for
the account of other Persons, with such priorities among them as the Company
shall determine; or

 

(b)           if initiated by a Person other than the Company, Lathi or
the Series A Investors: (i) first, the securities of the Company requested to
be included by such initiating Person and the Registrable Securities requested
to be included by Lathi and the Series A Investors, allocated (if necessary)
pro rata on the basis of the number of securities of the Company that each such
party has requested to be included in such registration; (ii) second, securities of the Company to be sold for
the account of the Company; (iii) third, the Registrable Securities requested to be
included by the Original Stockholders, allocated (if necessary) pro rata on the
basis of the number of Registrable Securities that each such Original
Stockholder has requested to be included in such registration; and (iv) fourth, securities of the Company to be sold for
the account of other Persons, with such priorities among them as the Company
shall determine.

 

For purposes of this Section 8 for any selling
stockholder which is a Holder of Registrable Securities and which is a partnership
or corporation, the partners, retired partners and shareholders of such Holder,
or the estates and family members of any such partners and retired partners and
any trusts for the benefit of any of the foregoing persons shall be deemed to
be a single “selling Holder,” and any pro rata reduction with respect to such “selling
Holder” shall be based upon the aggregate amount of shares carrying
registration rights owned by all entities and individuals included in such “selling
Holder,” as defined in this sentence.

 

9.             Indemnification. In the
event any Registrable Securities are included in a registration statement under
this Agreement:

 

(a)           The Company will indemnify and hold harmless each Holder,
its heirs, personal representatives and assigns, each of such Holder’s
partners, officers, directors, members, employees and affiliates, 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 the Exchange Act against any losses, claims, damages or
liabilities (joint or several) to which they may become subject under the
Securities Act, the Exchange Act or other federal or state law, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise
out of or are based upon a Violation; and the Company will pay to each such
indemnified party, as incurred, any legal or other expenses reasonably incurred
by them in connection with investigating or defending any such loss, claim,
damage, liability, or action; provided, however, that the
indemnity agreement contained in this Section 9(a) 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 Company (which consent shall
not be unreasonably withheld), nor shall the Company be liable in any such case
to a particular indemnified party for any such loss, claim, damage, liability
or action to the extent that it arises out of or is based upon a Violation
which occurs in reliance upon and in conformity with written information
furnished expressly for use in connection with such registration by such
indemnified party.

 

9

 

(b)           To the extent permitted by law, each selling Holder
(severally and not jointly) will indemnify and hold harmless the Company, each
of its directors, each of its officers who has signed the registration
statement, each Person, if any, who controls the Company within the meaning of
the Securities Act, any underwriter, any other Person selling securities in
such registration statement and any controlling Person of any such underwriter
or other Person, against any losses, claims, damages or liabilities (joint or
several) to which any of the foregoing Persons may become subject, under the
Securities Act, the Exchange Act or other federal or state law, insofar as such
losses, claims, damages or liabilities (or actions in respect thereto) arise
out of or are based upon any Violation, in each case to the extent (and only to
the extent) that such Violation occurs in reliance upon and in conformity with
written information furnished by such Holder expressly for use in connection
with such registration; and each such Holder will pay, as incurred, any legal
or other expenses reasonably incurred by any Person intended to be indemnified
pursuant to this Section 9(b), in connection with investigating or defending
any such loss, claim, damage, liability, or action; provided, however,
that the indemnity agreement contained in this Section 9(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 Holder, which consent
shall not be unreasonably withheld; and provided further, that, in no event
shall the liability of any Holder under this Section 9(b) exceed the net
proceeds from the offering received by such Holder.

 

(c)           Promptly after receipt by an indemnified party under this
Section 9 of notice of the commencement of any action (including any
governmental action), such indemnified party will, if a claim in respect
thereof is to be made against any indemnifying party under this Section 9,
deliver to the indemnifying party a written notice of the commencement thereof
and the indemnifying party shall have the right to participate in, and, to the
extent the indemnifying party so desires, jointly with any other indemnifying
party similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties, acting reasonably; provided, however, that an indemnified party shall have
the right to retain its own counsel, with the fees and expenses to be paid by
the indemnifying party, if representation of such indemnified party by the
counsel retained by the indemnifying party would be inappropriate due to actual
or potential differing interests between such indemnified party and any other
party represented by such counsel in such proceeding. The failure to deliver
written notice to the indemnifying party within a reasonable time of the
commencement of any such action shall not relieve such indemnifying party of
any liability to the indemnified party under this Section 9 except if, and only
to the extent that, the indemnifying party is actually prejudiced thereby; and
such failure to deliver written notice to the indemnifying party will not
relieve it of any liability that it may have to any indemnified party otherwise
than under this Section 9. An indemnifying party may settle any action or claim
under this Section 9 at any time without the consent of the indemnified party
so long as such settlement involves no cost or liability to the indemnified
party and includes an unconditional release of the indemnified party from all
liability with respect to such claim or action.

 

(d)           The obligations of the Company and Holders under this
Section 9 shall survive the completion of any offering of Registrable
Securities in a registration statement under this Agreement, and otherwise.

 

10

 

(e)           Any indemnity 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 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.

 

(f)            If a court of competent jurisdiction holds that the
foregoing indemnity is unavailable, then the indemnifying party shall contribute
to the amount paid or payable by the indemnified party as a result of such
losses, claims, damages, liabilities or expenses (i) in such proportion as is
appropriate to reflect the relative benefits received by the indemnifying party
on the one hand and the indemnified party on the other (taking into
consideration, among other things, the fact that the provision of the
registration rights and indemnification hereunder was a material inducement to
the Series A Investors and Lathi to purchase Registrable Securities) or (ii) if
the allocation provided by clause (i) above is not permitted by applicable law
or provides a lesser sum to the indemnified party than the amount hereinafter
calculated, in such proportion as is appropriate to reflect not only the relative
benefits received by the indemnifying party on the one hand and the indemnified
party on the other (taking into consideration, among other things, the fact
that the provision of the registration rights and indemnification hereunder is
a material inducement to the Series A Investors and Lathi to purchase
Registrable Securities) but also the relative fault of the indemnifying party
and the indemnified party as well as any other relevant equitable
considerations. The relative fault shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to
information supplied by or on behalf of the 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. 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 to the contrary in this Section 9, no Holder shall be
required, pursuant to this Section 9, to contribute any amount in excess of the
net proceeds received by such indemnifying party from the sale of securities in
the offering to which the losses, claims, damages, liabilities or expenses of
the indemnified party relate.

 

10.           Reports Under the Exchange Act.
With a view to making available to the Holders the benefits of Rule 144 under
the Securities Act and any other rule or regulation of the SEC that may at any
time permit a Holder to sell securities of the Company to the public without
registration or pursuant to a registration on Form S-3, the Company agrees at
all times after 90 days after any registration statement covering a public
offering of securities of the Company under the Securities Act shall have
become effective, to:

 

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

 

(b)           use commercially reasonable efforts (without unreasonable
expense) to enable the Holders to utilize Form S-3 for the sale of their
Registrable Securities;

 

(c)           file with the SEC in a timely manner all reports,
certifications and other documents required of the Company under the Securities
Act and the Exchange Act;

 

11

 

(d)           furnish to any Holder, so long as the Holder owns any Registrable
Securities, forthwith upon request (i) a written statement by the Company that
it has complied with the reporting requirements of Rule 144 under the
Securities Act (at any time after the effective date of the first registration
statement filed by the Company) and the Securities Act and Exchange Act (at any
time after it has become subject to such reporting requirements) or that it
qualifies as a registrant whose securities may be resold pursuant to Form S-3
(at any time it so qualifies), (ii) a copy of the most recent annual or
quarterly report of the Company and such other reports and documents so filed
by the Company, and (iii) such other information as may be reasonably requested
in availing any Holder of any rule or regulation of the SEC which permits the
selling of any such securities without registration or pursuant to such form.

 

11.           Assignment of Registration Rights.
The rights to cause the Company to register Registrable Securities pursuant to
this Agreement may be assigned in whole or in part by  a Holder to one or more of its affiliates
(including, without limitation, in the case of the Series A Investors and
Lathi, transfers between them and to their respective members and partners and
any members or partners thereof and transfers by Lathi to Sowood Commodity
Partners LP or any of its affiliates) or to one or more transferees or
assignees of the Registrable Securities owned by such Holder, provided that
(in each case) such transferee or assignee delivers to the Company a written
instrument by which such transferee or assignee agrees to be bound by the
obligations imposed on Holders under this Agreement to the same extent as if
such transferee or assignee was a party hereto. Except as specifically
permitted in the preceding sentence, neither this Agreement nor any Holder’s
rights or privileges under this Agreement can be assigned or transferred in
whole or in part without the prior written consent of the other parties.

 

12.           No Other Registration Rights;
Limitations on Subsequent Registration Rights. The Company, represents and
warrants to each Holder that, upon the execution of this Agreement by all of
the parties hereto, no “registration rights” relating to securities of the
Company and granted by the Company will exist on the date hereof other than
pursuant to this Agreement. From and after the date of this Agreement, the
Company shall not, without the prior written consent of Lathi and Charter Mx,
enter into any agreement with any holder or prospective holder of any
securities of the Company which would allow such holder or prospective holder
(a) to include such securities in any registration filed under this Agreement,
unless under the terms of such agreement, such holder or prospective holder may
include such securities in any such registration only to the extent that the
inclusion of such holder’s securities will not reduce the amount of the
Registrable Securities of any Holder which is included therein or (b) to
request a registration.

 

13.           “Market Stand-Off” Agreement.
Each Holder hereby agrees that, during the period of ninety (90) days following
the effective date of a registration statement of the Company filed under the
Securities Act in connection with an underwritten offering (and, in the case of
the initial public offering of the Company’s securities, one hundred eighty
(180) days or such shorter period as the underwriter may specify), it shall
not, if requested by the Company and such underwriter, directly or indirectly
sell, offer to sell, contract to sell (including, without limitation, any short
sale), grant an option to purchase or otherwise transfer or dispose of (other
than to donees, affiliates or partners who agree to be similarly bound) any
Common Stock or any securities of the Company convertible into Common Stock
held by it except Common Stock included in such registration. No Holder shall
be bound by this Section 13 unless each officer,

 

12

 

director and other stockholder of the Company
holding in excess of 1% of the then outstanding common share equivalents of the
Company shall have complied with this Section 13.

 

In
order to enforce the foregoing covenant, the Company may impose stop-transfer
instructions with respect to the Registrable Securities of the Holders (and the
shares or securities of every other person subject to the foregoing
restriction) until the end of such period.

 

Notwithstanding
the foregoing, the obligations described in this Section 13 shall not apply to
a registration relating solely to employee benefit plans on Form S-1 or Form
S-8 or similar forms which may be promulgated in the future, or a registration
relating solely to a transaction under Rule 145 of Securities Act on Form S-4
or similar forms which may be promulgated in the future.

 

14.           Amendment; Waiver. The
provision of this Agreement may not be amended or supplemented except by an
instrument or counterparts thereof in writing signed by the Company, Lathi,
Charter Mx and by Holders holding a majority of the then outstanding
Registrable Securities, provided, however, that any amendment
which would affect any Holder materially and adversely in a manner that is
disproportionate to other similarly situated Holders shall require the consent
of such Holder. The observance of any provision of this Agreement may be waived
(either generally or in a particular instance and either retroactively or
prospectively) only with the written consent of the party to be charged,
provided that the Holders of a majority of the Registrable Securities then
outstanding may act on behalf of all Holders of Registrable Securities. Any
amendment or waiver effected in accordance with this Section 14 shall be
binding upon each Holder of Registrable Securities at the time outstanding,
each future Holder of all such securities, and the Company.

 

15.           Changes in Registrable Securities.
If, and as often as, there are any changes in the Registrable Securities by way
of stock split, stock dividend, combination or reclassification, or through
merger, consolidation, reorganization or recapitalization, or by any other
means, appropriate adjustment shall be made in the provisions of this
Agreement, as may be required, so that the rights and privileges granted hereby
shall continue with respect to the Registrable Securities as so changed.
Without limiting the generality of the foregoing, the Company will require any
successor by merger or consolidation to assume and agree to be bound by the
terms of this Agreement, as a condition to any such merger or consolidation.

 

16.           Entire Agreement. This Agreement
constitutes the full and entire understanding and agreement among the parties
with regard to the subject matter hereof. Nothing in this Agreement, express or
implied, is intended to confer upon any Person, other than the parties hereto
and their respective successors and assigns, any rights, remedies, obligations,
or liabilities under or by reason of this Agreement, except as expressly
provided herein.

 

17.           Governing Law.

 

(a)           This Agreement shall be governed by and construed under
the laws of the State of New York as applied to agreements among New York
residents entered into and to be performed entirely within New York.

 

13

 

(b)           The jurisdiction and venue in any action brought by any
party hereto pursuant to this Agreement shall properly lie in any federal or
state court located in the Borough of New York in the State of New York. By
execution and delivery of this Agreement, each party hereto irrevocably submits
to the jurisdiction of such courts for himself or itself and in respect of his
or its property with respect to such action. The parties irrevocably agree that
venue would be proper in such court, and hereby waive any objection that such
court is an improper or inconvenient forum for the resolution of such action.
The parties further agree that the mailing by certified or registered mail,
return receipt requested, of any process required by any such court shall
constitute valid and lawful service of process against them, without necessity
for service by any other means provided by statute or rule of court.

 

(c)           WAIVER
OF JURY TRIAL.
EACH OF THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY
WAIVES ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, ANY
OF THE OTHER AGREEMENTS OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE INVESTORS.

 

18.           Successors and Assigns. The
provisions hereof shall inure to the benefit of, and be binding upon, the
successors, permitted assigns (as provided in Section 11), heirs, executors and
administrators of the parties hereto.

 

19.           Notices. Unless otherwise
provided, any notice required or permitted under this Agreement shall be given
in writing and shall be deemed effectively given upon receipt by the party to
be notified (including by telecopier, receipt confirmed) or three (3) days
after deposit with the United States Post Office, by registered or certified
mail, postage prepaid and addressed to the party to be notified (a) if to a
party other than the Company, at such party’s address set forth at the end of
this Agreement or at such other address as such party shall have furnished the
Company in writing, or, until any such party so furnishes an address to the
Company, then to and at the address of the last holder of the shares covered by
this Agreement who has so furnished an address to the Company, or (b) if to the
Company, at its address set forth at the end of this Agreement, or at such
other address as the Company shall have furnished to the parties in writing.

 

20.           Severability. Any invalidity,
illegality or limitation on the enforceability of this Agreement or any part
thereof, by any party whether arising by reason of the law of the respective
party’s domicile or otherwise, shall in no way affect or impair the validity,
legality or enforceability of this Agreement with respect to other parties. If
any provision of this Agreement shall be judicially determined to be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

 

21.           Titles and Subtitles. The
titles of the Sections of this Agreement are for convenience of reference only
and are not to be considered in construing this Agreement.

 

22.           Delays or Omissions; Remedies
Cumulative. It is agreed that no delay or omission to exercise any right,
power or remedy accruing to the parties shall impair any such

 

14

 

right, power or remedy, nor shall it be construed
to be a waiver of any such breach or default, or any acquiescence therein, or
of any similar breach or default thereafter occurring; nor shall any waiver of
any single breach or default be deemed a waiver of any other breach or default
theretofore or thereafter occurring. It is further agreed that any waiver,
permit, consent or approval of any kind or character by a party of any breach
or default under this Agreement, or any waiver by a party of any provisions or
conditions of this Agreement must be in writing and shall be effective only to
the extent specifically set forth in writing and that all remedies, either
under this Agreement, or by law or otherwise afforded to a party, shall be
cumulative and not alternative.

 

23.           Attorneys’ Fees. If any action
at law or in equity is necessary to enforce or interpret the terms of this
Agreement, the prevailing party shall be entitled to reasonable attorney’s
fees, costs and necessary disbursements in addition to any other relief to
which such party may be entitled.

 

24.           Counterparts. This Agreement
may be executed in any number of counterparts, each of which shall be an
original, but all of which together shall constitute one instrument. Facsimile
counterpart signatures shall be acceptable.

 

25.           Effectiveness.       This Agreement shall be effective for all
Holders other than the Series A Investors immediately upon the execution of
this Agreement by Holders holding the requisite percentage of Stock (as defined
in that certain Second Amended and Restated Shareholders Agreement dated as of
March 5, 2001 by and among the Company, Lathi, the Original Stockholders and
the Other Stockholders, as amended on May 31, 2002 and November 14, 2003 (the “Existing
Shareholders Agreement”)) of the Company necessary to amend the Existing
Shareholders Agreement. This Agreement shall be effective for the Series A
Investors upon the issuance of the Series A Stock pursuant to the Purchase
Agreement.

 

 

[END OF TEXT. SIGNATURE PAGES FOLLOW.]

 

15

 

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

 

	
   

  	
  MxENERGY INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey Mayer

  	
   

  
	
   

  	
   

  	
  Name:
  Jeffrey Mayer

  
	
   

  	
   

  	
  Title:
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  LATHI LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Harvard
  Management Company, Inc.,

  
	
   

  	
   

  	
  pursuant
  to delegated authority

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  [ILLEGIBLE]

  
	
   

  	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  CHARTER MX LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Charterhouse
  Equity Partners IV, L.P.,

  
	
   

  	
   

  	
  Its
  Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  CHUSA
  Equity Investors IV, L.P.,

  
	
   

  	
   

  	
  its
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Charterhouse
  Equity IV, LLC,

  
	
   

  	
   

  	
  its
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Jen Guzman

  	
   

  
	
   

  	
   

  	
  Name:
  Jen Guzman

  
	
   

  	
   

  	
  Title:
  Vice President

  
										

 

16

 

	
   

  	
  GREENHILL CAPITAL PARTNERS, L.P.

  
	
   

  	
   

  
	
   

  	
  GREENHILL CAPITAL PARTNERS (CAYMAN), L.P.

  
	
   

  	
   

  
	
   

  	
  GREENHILL CAPITAL PARTNERS (EXECUTIVES),

  L.P.

  
	
   

  	
   

  
	
   

  	
  GREENHILL CAPITAL, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GCP
  Managing Partner, L.P.,

  
	
   

  	
   

  	
  as
  managing general partner of each of the foregoing partnerships

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Greenhill
  Capital Partners, LLC,

  
	
   

  	
   

  	
  its
  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  V. Frank Pottow

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  V. Frank Pottow

  
	
   

  	
   

  	
   

  	
  Title:
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ORIGINAL STOCKHOLDERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    /s/
  Jeffrey A. Mayer

  	
   

  
	
   

  	
  Jeffrey
  A. Mayer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    /s/
  Carole R. Artman-Hodge

  	
   

  
	
   

  	
  Carole
  R. Artman-Hodge

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    /s/
  Daniel P. Burke, Sr.

  	
   

  
	
   

  	
  Daniel
  P. Burke, Sr.

  
						

 

17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}]]