Document:

Unassociated Document

    ANTHRACITE
      CAPITAL, INC.

     

    RESALE
      REGISTRATION RIGHTS AGREEMENT

     

    RESALE
      REGISTRATION RIGHTS AGREEMENT, dated as of April 4, 2008, between Anthracite
      Capital, Inc., a Maryland
      corporation (together with any successor entity, herein referred to as the
      “Company”),
      and
      RECP IV Cite CMBS Equity, L.P., a Delaware limited partnership and subsidiary
      of
      DLJ Real Estate Capital Partners IV, L.P. (“RECP”),
      as
      the purchaser (the “Purchaser”)
      under
      the Purchase Agreement (as defined below).

     

    Pursuant
      to the Securities Purchase Agreement by and between the Company and the
      Purchaser, dated as of April 4, 2008 (the “Purchase
      Agreement”),
      the
      Company will sell to the Purchaser: (i) 23,375 shares of the Company’s 12%
      Series E-1 Cumulative Redeemable Convertible Preferred Stock (together with
      any
      preferred stock issued in replacement thereof or otherwise with respect thereto
      in accordance with the terms thereof, the “Series
      E-1 Preferred Shares”)
      having
      the rights, preferences and privileges to be set forth in the Articles
      Supplementary to the charter of the Company (the “Series
      E-1 Articles Supplementary”),
      (ii)
      23,375 shares of the Company’s 12% Series E-2 Cumulative Redeemable Convertible
      Preferred Stock (together with any preferred stock issued in replacement thereof
      or otherwise with respect thereto in accordance with the terms thereof, the
      “Series
      E-2 Preferred Shares”)
      having
      the rights, preferences and privileges to be set forth in the Articles
      Supplementary to the charter of the Company (the “Series
      E-2 Articles Supplementary”),
      (iii)
      23,375 shares of the Company’s 12% Series E-3 Cumulative Redeemable Convertible
      Preferred Stock (together with any preferred stock issued in replacement thereof
      or otherwise with respect thereto in accordance with the terms thereof, the
      “Series
      E-3 Preferred Shares”
and,
      together with the Series E-1 Preferred Shares and the Series E-2 Preferred
      Shares, the “Preferred
      Shares”),
      having the rights, preferences and privileges to be set forth in the Articles
      Supplementary to the charter of the Company (the “Series
      E-3 Articles Supplementary”
and,
      together with the Series E-1 Articles Supplementary and the Series E-2 Articles
      Supplementary, the “Articles
      Supplementary”)
      and
      (iv) 3,494,021 shares (the “Common
      Shares”
and,
      together with the Preferred Shares, the “Shares”)
      of the
      Company’s common stock, $0.001 par value per share (“Common
      Stock”).
      The
      Preferred Shares will be convertible, subject to the terms thereof, into shares
      of Common Stock. To induce the Buyer to purchase the Shares, the Company has
      agreed to provide the registration rights set forth in this Agreement pursuant
      to Section 6(A) of the Purchase Agreement.

     

    The
      parties hereby agree as follows:

     

    1. Definitions.
      Capitalized
      terms used in this Agreement without definition shall have their respective
      meanings set forth in the Purchase Agreement. As
      used
      in this Agreement, the following capitalized terms shall have the following
      meanings:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Affiliate”
of
      any
      specified person means any other person which, directly or indirectly, is in
      control of, is controlled by, or is under common control with, such specified
      person. For purposes of this definition, control of a person means the power,
      direct or indirect, to direct or cause the direction of the management and
      policies of such person whether by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative to the
      foregoing.

     

    “Agreement”:
      This
      Resale Registration Rights Agreement.

     

    “Amendment
      Effectiveness Deadline Date”:
      has
      the meaning set forth in Section 2(f) hereof.

     

    “Articles
      Supplementary”:
      has
      the meaning set forth in the preamble hereto.

     

    “Blue
      Sky Application”:
      has
      the meaning set forth in Section 6(a)(i) hereof.

     

    “Business
      Day”:
      has
      the meaning set forth in the Articles Supplementary.

     

    “Closing
      Date”:
      April
      4, 2008.

     

    “Commission”:
      U.S.
      Securities and Exchange Commission.

     

    “Common
      Shares”:
      has
      the meaning set forth in the preamble hereto.

     

    “Common
      Stock”:
      has
      the meaning set forth in the preamble hereto.

     

    “Company”:
      has
      the meaning set forth in the preamble hereto.

     

    “Effectiveness
      Date”:
      has
      the meaning set forth in Section 2(a)(ii) hereof.

     

    “Effectiveness
      Period”:
      has
      the meaning set forth in Section 2(a)(iii) hereof.

     

    “Effectiveness
      Target Date”:
      has
      the meaning set forth in Section 2(a)(ii) hereof.

     

    “Eligible
      Market”
means
      any of the New York Stock Exchange, the American Stock Exchange, the NASDAQ
      Global Select Market, the NASDAQ Global Market, the NASDAQ Capital
      Market.

     

    “Exchange
      Act”:
      Securities Exchange Act of 1934, as amended.

     

    “Excluded
      Events”:
      If the
      Company is engaged in a material merger, acquisition or sale and the Board
      of
      Directors determines in good faith, by appropriate resolutions, that, as a
      result of such activity, (i) it would be materially detrimental to the
      Company (other than as relating solely to the price of the Common Stock) to
      maintain a
      Registration Statement at such time or (ii) it is in the best interests of
      the Company to suspend sales under such Registration Statement at such
      time.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “FINRA”:
      Financial Industry Regulatory Authority, Inc. (successor to the National
      Association of Securities Dealers, Inc.).

     

    “Free
      Writing Prospectus”:
      A free
      writing prospectus, as defined in Rule 405 under the Securities
      Act.

     

    “Holder”:
      The
      Purchaser so long as it owns any Transfer Restricted Securities and any Person
      who holds or beneficially owns any Transfer Restricted Securities as a permitted
      transferee of the Purchaser or another permitted transferee.

     

    “Indemnified
      Holder”:
      has
      the meaning set forth in Section 6(a) hereof.

     

    “Issuer
      Free Writing Prospectus”:
      An
      issuer free writing prospectus, as defined in Rule 433 under the Securities
      Act.

     

    “Losses”:
      has
      the meaning set forth in Section 6(a) hereof.

     

    “Majority
      of Holders”:
      Holders holding over 50% of the Common Shares and the shares of Common Stock
      issued or issuable upon conversion of the Preferred Shares.

     

    “Managing
      Underwriter”:
      The
      investment banker or investment bankers and manager or managers that administer
      an underwritten offering, if any, conducted pursuant to Section 8
      hereof.

     

    “Notice
      and Questionnaire”
means
      a
      written notice executed by the respective Holder and delivered to the Company
      containing substantially the information called for by the Selling
      Securityholder Notice and Questionnaire attached as Appendix A to this
      Agreement.

     

    “Notice
      Holder”:
      On any
      date, any Holder of Transfer Restricted Securities that has properly delivered
      a
      fully completed Notice and Questionnaire to the Company on or prior to such
      date.

     

    “Permitted
      Free Writing Prospectus”:
      has
      the meaning set forth in Section 9(a) hereof.

     

    “Person”:
      An
      individual, partnership, corporation, company, unincorporated organization,
      trust, joint venture or a government or agency or political subdivision
      thereof.

     

    “Preferred
      Shares”:
      has
      the meaning set forth in the preamble hereto.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Prospectus”:
      The
      prospectus included in a Shelf Registration Statement, as amended or
      supplemented by any prospectus supplement and by all other amendments thereto,
      including post-effective amendments, and all material incorporated by reference
      into such prospectus.

     

    “Purchase
      Agreement”:
      has
      the meaning set forth in the preamble hereto.

     

    “Purchaser”:
      has
      the meaning set forth in the preamble hereto.

     

    “Record
      Holder”:
      With
      respect to any Registration Penalties Payment Date, each Person who is a
      registered holder of the Transfer Restricted Securities at the close of business
      on the Business Day before the relevant Penalties Payment Date.

     

    “RECP”:
      has
      the meaning set forth in the preamble hereto.

     

    “Registration
      Default”:
      has
      the meaning set forth in Section 3(a) hereof.

     

    “Registration
      Penalties”:
      has
      the meaning set forth in Section 3(a) hereof.

     

    “Registration
      Penalties Payment Date”:
      Each
      February 1, May1, August 1 and November 1, if applicable.

     

    “Securities
      Act”:
      Securities Act of 1933, as amended.

     

    “Series
      E-1 Articles Supplementary”:
      has
      the meaning set forth in the preamble hereto.

     

    “Series
      E-2 Articles Supplementary”:
      has
      the meaning set forth in the preamble hereto.

     

    “Series
      E-3 Articles Supplementary”:
      has
      the meaning set forth in the preamble hereto.

     

    “Series
      E-1 Preferred Shares”:
      has
      the meaning set forth in the preamble hereto.

     

    “Series
      E-2 Preferred Shares”:
      has
      the meaning set forth in the preamble hereto.

     

    “Series
      E-3 Preferred Shares”:
      has
      the meaning set forth in the preamble hereto.

     

    “Shares”:
      has
      the meaning set forth in the preamble hereto.

     

    “Shelf
      Filing Deadline”:
      has
      the meaning set forth in Section 2(a)(i) hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Shelf
      Registration Statement”:
      has
      the meaning set forth in Section 2(a)(i) hereof.

     

    “Suspension
      Notice”:
      has
      the meaning set forth in Section 4(c) hereof.

     

    “Suspension
      Period”:
      has
      the meaning set forth in Section 4(b)(ii) hereof.

     

    “Transfer
      Restricted Securities”:
      Each
      (i) Preferred Share, (ii) Common Share, (iii) share of Common Stock which may
      be
      issued or distributed to a holder of Preferred Shares by way of conversion
      of
      such holder’s Preferred Shares in accordance with the Articles Supplementary and
      (iv) any
      securities issued or issuable upon any stock split, dividend or other
      distribution, recapitalization or similar event with respect to
      the
      foregoing clauses (i) thru (iii), in each case until the earliest
      of:

     

    (i) the
      date
      on which such Preferred Share or such share of Common Stock has been effectively
      registered under the Securities Act and disposed of in accordance with the
      Shelf
      Registration Statement;

     

    (ii) the
      date
      on which such Preferred Share or such share of Common Stock is eligible to
      be
      sold to the public without volume limitations pursuant to Rule 144 (or any
      other
      similar provision then in force) under the Securities Act or may otherwise
      be
      freely traded;

     

    (iii) the
      date
      on which such Preferred Share or such share of Common Stock ceases to be
      outstanding (whether as a result of redemption, repurchase and cancellation,
      conversion or otherwise); or

     

    (iv) the
      date
      on which such Preferred Share or such share of Common Stock has otherwise been
      transferred and a new Preferred Share or share of Common Stock not subject
      to
      transfer restrictions under the Securities Act has been delivered by or on
      behalf of the Company in accordance with the Articles
      Supplementary.

     

    “underwriter”:
      Any
      underwriter of Transfer Restricted Securities in connection with an offering
      thereof under the Shelf Registration Statement.

     

    “Underwritten
      Registration”:
      A
      registration in which Transfer Restricted Securities of the Company are sold
      to
      an underwriter for reoffering to the public.

     

    Unless
      the context otherwise requires, the singular includes the plural, and words
      in
      the plural include the singular.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2. Shelf
      Registration.

     

    (a) The
      Company shall: 

     

    (i) use
      its
      reasonable best efforts as promptly as possible, and in any event on or prior
      to
      the date which is 60 days after the Closing Date) (the “Shelf
      Filing Deadline”),
      cause
      to be filed, or otherwise designate an existing filing with the Commission
      as,
      a
      registration statement pursuant to Rule 415 under the Securities Act or any
      similar rule that may be adopted by the Commission (the “Shelf
      Registration Statement”),
      which
      Shelf Registration Statement shall provide for the registration and resales,
      on
      a continuous or delayed basis, of all Transfer Restricted Securities subject
      to
      the terms and conditions hereof; 

     

    (ii) use
      reasonable best efforts to cause the Shelf Registration Statement to become
      effective under the Securities Act, or otherwise make available for use by
      Holders a previously filed effective Shelf Registration Statement, as promptly
      as possible after the filing thereof but in any event not later than 120 days
      after the date hereof (the “Effectiveness
      Target Date”,
      and
      the date of such effectiveness or availability, the “Effectiveness
      Date”); provided
      that,
      upon
      notification by the SEC that a Shelf Registration Statement will not be reviewed
      or is no longer subject to further review and comments, the Company shall
      request acceleration of such Shelf Registration Statement within five (5)
      Business Days after receipt of such notice and request that it become effective
      on 4:00 p.m. New York City time on the Effectiveness Date and file a prospectus
      supplement for any Shelf Registration Statement, whether or not required under
      Rule 424 (or otherwise), by 9:00 a.m. New York City time the day after the
      Effectiveness Date;
      and

     

    (iii) use
      reasonable best efforts to keep the Shelf Registration Statement continuously
      effective, supplemented and amended as required by the Securities Act and by
      the
      provisions of Section 4(b) hereof to the extent necessary to ensure that (A)
      it
      is available for resales by the Holders of Transfer Restricted Securities
      entitled, subject to the terms and conditions hereof, to the benefit of this
      Agreement and (B) conforms with the requirements of this Agreement and the
      Securities Act and the rules and regulations of the Commission promulgated
      thereunder as announced from time to time, for a period (the “Effectiveness
      Period”)
      from
      the date the Shelf Registration Statement becomes effective until the date
      that
      the Shares and the shares of Common Stock issuable upon exchange thereof or
      in
      connection therewith have ceased to be Transfer Restricted
      Securities.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) The
      Company shall notify the Holders promptly (and in any event within two Business
      Days) after receiving notification from the SEC that the Shelf Registration
      Statement has been declared effective.

     

    (c) The
      Company shall promptly mail or otherwise provide the Notice and Questionnaire
      to
      the Holders.

     

    (d) If
      the
      Shelf Registration Statement ceases to be effective for any reason at any time
      during the Effectiveness Period (other than because all Transfer Restricted
      Securities registered thereunder shall have been resold pursuant thereto or
      shall have otherwise ceased to be Transfer Restricted Securities), the Company
      shall use reasonable best efforts to obtain the prompt withdrawal of any order
      suspending the effectiveness thereof or file or designate a subsequent Shelf
      Registration Statement covering all of the securities that as of the date of
      such filing or designation are Transfer Restricted Securities. If such a
      subsequent Shelf Registration Statement is filed or designated (and is not
      already effective), the Company shall use reasonable efforts to cause the
      subsequent Shelf Registration Statement to become effective as promptly as
      is
      practicable after such filing or designation and to keep such subsequent Shelf
      Registration Statement continuously effective until the end of the Effectiveness
      Period.

     

    (e) The
      Company shall use reasonable best efforts to supplement and amend the Shelf
      Registration Statement if required by the rules, regulations or instructions
      applicable to the registration form used by the Company for such Shelf
      Registration Statement, if required by the Securities Act or as reasonable
      requested by the Majority of Holders.

     

    (f) The
      Company shall cause the Shelf Registration Statement and the related Prospectus
      and any amendment or supplement thereto, as of the effective date of the Shelf
      Registration Statement or such amendment or supplement, and any Issuer Free
      Writing Prospectus, as of the date thereof, (i) to comply in all material
      respects with the applicable requirements of the Securities Act, and (ii) not
      to
      contain any untrue statement of a material fact or omit to state a material
      fact
      required to be stated therein or necessary in order to make the statements
      therein (in the case of the Prospectus and any Issuer Free Writing Prospectus,
      in light of the circumstances under which they were made) not
      misleading.

     

    (g) Each
      Holder agrees that if such Holder wishes to sell Transfer Restricted Securities
      pursuant to a Shelf Registration Statement and related Prospectus, it will
      do so
      only in accordance with the terms and conditions of this Agreement. Each Holder
      wishing to sell Transfer Restricted Securities pursuant to a Shelf Registration
      Statement and related Prospectus from and after the Effectiveness Date agrees
      to
      deliver a Notice and Questionnaire to the Company at least 5 Business Days
      prior
      to any intended distribution of Transfer Restricted Securities under the Shelf
      Registration Statement; provided
      that,
      such
      Holder shall not be required to deliver such a Notice and Questionnaire if
      it
      would have no material changes from the Notice and Questionnaire most recently
      delivered by such Holder. From and after the Effectiveness Date, the Company
      shall, as promptly as practicable after the date a Notice and Questionnaire
      is
      delivered to it:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    (ii) provide
      such Holder a copy of each document filed pursuant to Section 2(f)(i);
      and

     

    (iii) notify
      such Holder as promptly as practicable after the effectiveness under the
      Securities Act of any post-effective amendment filed pursuant to Section
      2(f)(i); 

     

    provided
      that if
      such Notice and Questionnaire is delivered during a Suspension Period, the
      Company shall so inform the Holder delivering such Notice and Questionnaire
      and
      shall take the actions set forth in clauses (i), (ii) and (iii) above upon
      expiration of the Suspension Period in accordance with Section 4(b); provided,
      however, that if a post-effective amendment to the Shelf Registration Statement
      is required, the Company will not be obligated to file more than one such
      amendment for all such Holders during any fiscal quarter unless the amount
      of
      the Transfer Restricted Securities to be included in such amendment is more
      than
      $5 million. Notwithstanding the preceding sentence, the Company will not be
      obligated to file more than two such supplements to the related Prospectus
      during any fiscal quarter.
      Notwithstanding anything contained herein to the contrary, (i) the Company
      shall
      be under no obligation to name any Holder that is not a Notice Holder as a
      selling securityholder in any Registration Statement or related Prospectus
      and
      (ii) the Amendment Effectiveness Deadline Date shall be extended by up to 10
      Business Days from the Expiration of a Suspension Period (and the Company shall
      incur no obligation to pay Registration Penalties during such extension) if
      such
      Suspension Period shall be in effect on the Amendment Effectiveness Deadline
      Date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (h) The
      Company shall not, from the date hereof until the Effectiveness Date, prepare
      and file with the SEC a registration statement relating to an offering for
      its
      own account or the account of others under the Securities Act of any of its
      equity securities, other
      than any registration statement or post-effective amendment to a registration
      statement (or supplement thereto) relating to (i) the Company’s employee benefit
      plans registered on Form S-8 and (ii) the Company's registration statements
      on
      Form S-3 (Registration Nos. 333-69848 and 333-149915).

     

    3. Registration
      Penalties.
      

     

    (a) If:

     

    (i) the
      Shelf
      Registration Statement is not filed, or on file, with the Commission prior
      to or
      on the Shelf Filing Deadline; 

     

    (ii) the
      Shelf
      Registration Statement has not become effective, or a previously effective
      Shelf
      Registration Statement has not been made available, prior to or on the
      Effectiveness Target Date; 

     

    (iii) the
      Company has failed to perform its obligations set forth in Section 2(g) within
      the time periods required therein; 

     

    (iv) any
      post-effective amendment to a Shelf Registration filed pursuant to Section
      2(g)(i) has not become effective under the Securities Act on or prior to the
      Amendment Effectiveness Deadline Date; 

     

    (v) except
      as
      provided in Section 4(b)(ii) hereof, the Shelf Registration Statement is filed
      and has become effective but, during the Effectiveness Period, shall thereafter
      cease to be effective or fail to be usable by the Holders for its intended
      purpose for more than 10 Business Days (whether or not
      consecutive);

     

    (vi) except
      as
      a result of the Excluded Events, the Common Stock is not listed or quoted,
      or is
      suspended from trading, on an Eligible Market for a period of three Business
      Days (which need not be consecutive Business Days) during the Effectiveness
      Period;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (vii) during
      the Effectiveness Period, except as a result of the Excluded Events, the Company
      fails to have any Shares listed or quoted on an Eligible Market; or

     

    (viii) Suspension
      Periods (as defined below) exceed an aggregate of 60 days in any 360-day
      period;

     

    (each
      such event referred to in foregoing clauses (i) through (viii), a “Registration
      Default”),
      the
      Company hereby agrees to pay to each Holder cash penalties (the “Registration
      Penalties”)
      with
      respect to their Transfer Restricted Securities from and including the day
      following the Registration Default to but excluding the earlier of (1) the
      day
      on which the Registration Default has been cured and (2) the date the Shelf
      Registration Statement is no longer required to be kept effective, at the
      rate
      of (x)
      0.25% per annum of the aggregate purchase price of the Shares held by such
      Holder to and including the ninetieth day following such Registration Default
      and (y) 0.50% per annum of the aggregate purchase price of the Shares held
      by
      such Holder from and including the ninety-first day following such Registration
      Default. For the purposes of this Section 3, the purchase price for each share
      of Preferred Stock shall be $1,000 per share and the purchase price for each
      share of Common Stock shall be $6.69 per share. The Registration Penalties
      shall
      only be deemed to be penalties and not liquidated damages and shall be in
      addition to any other rights and remedies the Holders may have with respect
      to a
      Registration Default.

     

    (b) All
      accrued Registration Penalties shall be paid in arrears to Record Holders by
      the
      Company on each Registration Penatlies Payment Date. Upon the cure of all
      Registration Defaults relating to any particular Transfer Restricted Security,
      the accrual of applicable Registration Penalties will cease.

     

    All
      obligations of the Company set forth in this Section 3 that are outstanding
      with
      respect to any Transfer Restricted Security at the time such security ceases
      to
      be a Transfer Restricted Security shall survive until such time as all such
      obligations with respect to such Transfer Restricted Security shall have been
      satisfied in full.

     

    4. Registration
      Procedures.
      

     

    (a) In
      connection with the Shelf Registration Statement, the Company shall comply
      with
      all the provisions of Section 4(b) hereof and shall use reasonable best efforts
      to effect such registration to permit the sale of the Transfer Restricted
      Securities, and pursuant thereto, shall as expeditiously as possible prepare
      and
      file with the Commission a Shelf Registration Statement relating to the
      registration on any appropriate form under the Securities Act, or otherwise
      make
      available for use by Holders a previously filed Shelf Registration
      Statement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) In
      connection with the Shelf Registration Statement and any Prospectus required
      by
      this Agreement to permit the sale or resale of Transfer Restricted Securities,
      the Company shall:

     

    (i) Subject
      to any notice by the Company in accordance with this Section 4(b) of the
      existence of any fact or event of the kind described in Section 4(b)(iv)(D),
      use
      reasonable best efforts to keep the Shelf Registration Statement continuously
      effective during the Effectiveness Period; upon the occurrence of any event
      that
      would cause the Shelf Registration Statement or the Prospectus contained therein
      (A) to contain a material misstatement or omission or (B) not to be effective
      and usable for resale of Transfer Restricted Securities during the Effectiveness
      Period, the Company shall file promptly a post-effective amendment to the Shelf
      Registration Statement or an amendment or supplement to the related Prospectus
      or file any other required document, in the case of clause (A), correcting
      any
      such misstatement or omission, and, in the case of either clause (A) or (B),
      use
      reasonable best efforts to cause any such amendment to become effective and
      the
      Shelf Registration Statement and the related Prospectus to become usable for
      their intended purposes as soon as practicable thereafter;

     

    (ii) Notwithstanding
      Section 4(b)(i) hereof, the Company may suspend the effectiveness of the Shelf
      Registration Statement (each such period, a “Suspension
      Period”):

     

    (x)
      if an
      event occurs and is continuing as a result of which the Shelf Registration
      Statement, the Prospectus, any amendment or supplement thereto, or any document
      incorporated by reference therein would, in the Company’s judgment, contain an
      untrue statement of a material fact or omit to state a material fact required
      to
      be stated therein or necessary to make the statements therein not misleading;
      and

     

    (y)
      upon
      the occurrence of an Excluded Event.

     

    Upon
      the
      occurrence of any event described in clauses (x) and (y) of this Section
      4(b)(ii), the Company shall give notice to the Holders that the availability
      of
      the Shelf Registration is suspended and, upon actual receipt of any such notice,
      each Holder agrees not to sell any Transfer Restricted Securities pursuant
      to
      the Shelf Registration until such Holder’s receipt of copies of the supplemented
      or amended Prospectus provided for in Section 4(b) hereof. The Suspension Period
      shall not exceed 30 days at a time or an aggregate of 60 days in any 360-day
      period. The Company shall not be required to specify in the written notice
      to
      the Holders the nature of the event giving rise to the Suspension
      Period.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (iii) Prepare
      and file with the Commission such amendments and post-effective amendments
      to
      the Shelf Registration Statement as may be necessary to keep the Shelf
      Registration Statement effective during the Effectiveness Period; cause the
      Prospectus to be supplemented by any required Prospectus supplement, and as
      so
      supplemented to be filed pursuant to Rule 424 under the Securities Act, and
      to
      comply fully with the applicable provisions of Rule 424 under the Securities
      Act
      in a timely manner; and comply with the provisions of the Securities Act with
      respect to the disposition of all Transfer Restricted Securities covered by
      the
      Shelf Registration Statement during the applicable period in accordance with
      the
      intended method or methods of distribution by the sellers thereof set forth
      or
      to be set forth in the Shelf Registration Statement or supplement to the
      Prospectus;

     

    (iv)
      Advise the selling Holders promptly and, if requested by such selling Holders,
      to confirm such advice in writing (which notice pursuant to clauses (B) through
      (E) below shall be accompanied by an instruction to suspend the use of the
      Prospectus until the Company shall have remedied the basis for such
      suspension):

     

    (A) when
      the
      Prospectus, any Prospectus supplement, any post-effective amendment or any
      Issuer Free Writing Prospectus has been filed, and, with respect to the Shelf
      Registration Statement or any post-effective amendment thereto, when the same
      has become effective,

     

    (B) of
      any
      request by the Commission for amendments or supplements to the Shelf
      Registration Statement, the Prospectus or any Issuer Free Writing Prospectus
      or
      for additional information relating thereto,

     

    (C) of
      the
      issuance by the Commission of any stop order suspending the effectiveness of
      the
      Shelf Registration Statement under the Securities Act or of any notice that
      would prevent its use, or of the suspension by any state securities commission
      of the qualification of the Transfer Restricted Securities for offering or
      sale
      in any jurisdiction, or the threatening or initiation of any proceeding for
      any
      of the preceding purposes,

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (D) of
      the
      existence of any fact or the happening of any event, during the Effectiveness
      Period, that makes any statement of a material fact made in the Shelf
      Registration Statement, the Prospectus, any amendment or supplement thereto,
      or
      any document incorporated by reference therein untrue, or that requires the
      making of any additions to or changes in the Shelf Registration Statement or
      the
      Prospectus in order to make the statements therein (in the case of the
      Prospectus, in the light of the circumstances under which they were made) not
      misleading, or

     

    (E) when
      any
      Issuer Free Writing Prospectus includes information that may conflict with
      the
      information contained in the Registration Statement.

     

    (v) If
      at any
      time the Commission shall issue any stop order suspending the effectiveness
      of
      the Shelf Registration Statement or any notice that would prevent its use,
      or
      any state securities commission or other regulatory authority shall issue an
      order suspending the qualification or exemption from qualification of the
      Transfer Restricted Securities under state securities or Blue Sky laws, the
      Company shall use reasonable best efforts promptly to obtain the withdrawal
      or
      lifting of such order at the earliest possible time, including, if necessary,
      by
      filing an amendment to the Shelf Registration Statement or a new Shelf
      Registration Statement and using reasonable best efforts to have such amendment
      or new Shelf Registration Statement declared effective, and will provide to
      each
      Holder who is named in the Shelf Registration Statement prompt notice of the
      withdrawal of any such order or of the filing or effectiveness of any such
      amendment or new registration statement;

     

    (vi) Make
      available at reasonable times for inspection by one or more representatives
      of
      the selling Holders, designated in writing by a Majority of Holders whose
      Transfer Restricted Securities are included in the Shelf Registration Statement,
      and any attorney or accountant retained by such selling Holders and any
      underwriter participating in any disposition pursuant to the Shelf Registration
      Statement, all financial and other records, pertinent corporate documents and
      properties of the Company as shall be reasonable necessary to enable them to
      conduct a reasonable investigation within the meaning of Section 11 of the
      Securities Act, and cause the Company’s officers, directors, managers and
      employees to supply all information reasonable requested by any such
      representative or representatives of the selling Holders, attorney or accountant
      in connection therewith; 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (vii) If
      requested by any selling Holders or the Representatives, promptly incorporate
      in
      the Shelf Registration Statement or Prospectus, pursuant to a supplement or
      post-effective amendment if necessary, such information as such selling Holders
      may reasonable request to have included therein, including, without limitation,
      information relating to the “Plan of Distribution” of the Transfer Restricted
      Securities;

     

    (viii) Deliver
      to each selling Holder, without charge, as many copies of the Prospectus
      (including each preliminary Prospectus) and any amendment or supplement thereto,
      and any Issuer Free Writing Prospectus, as such Persons reasonable may request;
      subject to Section 4(b)(ii) and subject to any notice by the Company in
      accordance with this Section 4(b) of the existence of any fact or event of
      the
      kind described in Section 4(b)(iv)(B) through (E), the Company hereby consents
      to the use of such Prospectus and any such amendment or supplement thereto,
      and
      any such Issuer Free Writing Prospectus, by each of the selling Holders in
      connection with the offering and the sale of the Transfer Restricted Securities
      covered by the Prospectus or any amendment or supplement thereto;

     

    (ix) Before
      any public offering of Transfer Restricted Securities, cooperate with the
      selling Holders and their counsel in connection with the registration and
      qualification of the Transfer Restricted Securities under the securities or
      Blue
      Sky laws of such jurisdictions in the United States as the selling Holders
      may
      reasonable request and use its reasonable best efforts to do any and all other
      acts or things necessary or advisable to enable the disposition in such
      jurisdictions of the Transfer Restricted Securities covered by the Shelf
      Registration Statement; provided,
      however,
      that the Company shall not be required (A) to register or qualify as a foreign
      corporation or a dealer of securities where it is not now so qualified or to
      take any action that would subject it to the service of process in any
      jurisdiction where it is not now so subject, other than service of process
      for
      suits arising out of any offering pursuant to the Shelf Registration Statement,
      or (B) to subject itself to general or unlimited service of process or to
      taxation in any such jurisdiction if they are not now so subject;

     

    (x) Unless
      any Transfer Restricted Securities shall be in book-entry form only, cooperate
      with the selling Holders to facilitate the timely preparation and delivery
      of
      certificates representing Transfer Restricted Securities to be sold and not
      bearing any restrictive legends (unless required by applicable securities laws);
      and enable such Transfer Restricted Securities to be in such denominations
      and
      registered in such names as the Holders may request at least two Business Days
      before any sale of Transfer Restricted Securities;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (xi) Use
      reasonable best efforts to cause the Transfer Restricted Securities covered
      by
      the Shelf Registration Statement to be registered with or approved by such
      other
      U.S. governmental agencies or authorities as may be necessary to enable the
      seller or sellers thereof to consummate the disposition of such Transfer
      Restricted Securities;

     

    (xii) Subject
      to Section 4(b)(ii) hereof, if any fact or event contemplated by Section
      4(b)(iv)(B) through (D) hereof shall exist or have occurred, use commercially
      reasonable best efforts to promptly prepare a supplement or post-effective
      amendment to the Shelf Registration Statement, related Prospectus (including
      by
      means of an Issuer Free Writing Prospectus), relevant Issuer Free Writing
      Prospectus or any document incorporated therein by reference or to file any
      other required document so that, as thereafter delivered to the purchasers
      of
      Transfer Restricted Securities, none of the Registration Statement, the
      Prospectus or any Issuer Free Writing Prospectus will contain an untrue
      statement of a material fact or omit to state any material fact required to
      be
      stated therein or necessary to make the statements therein (in the case of
      the
      Prospectus and any such Issuer Free Writing Prospectus, in the light of the
      circumstances in which they are made) not misleading;

     

    (xiii) Provide
      CUSIP numbers for all Transfer Restricted Securities not later than the
      effective date of the Shelf Registration Statement;

     

    (xiv) Cooperate
      and assist in any filings required to be made with the FINRA and in the
      performance of any due diligence investigation by any underwriter that is
      required to be undertaken in accordance with the rules and regulations of the
      FINRA;

     

    (xv) Otherwise
      use reasonable best efforts to comply with all applicable rules and regulations
      of the Commission and all reporting requirements under the rules and regulations
      of the Exchange Act;

     

    (xvi) Make
      generally available to its security holders an earnings statement satisfying
      the
      provisions of Section 11(a) of the Securities Act as soon as practicable after
      the effective date of the Shelf Registration Statement and in any event no
      later
      than 40 days after the end of the 12-month period (or 75 days,
      if such
      period is a fiscal year) beginning with the first month of the Company’s first
      fiscal quarter commencing after the effective date of the Shelf Registration
      Statement;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (xvii) Cause
      all
      Common Stock covered by the Shelf Registration Statement to be listed or quoted,
      as the case may be, on the primary securities exchange or automated quotation
      system on which Common Stock is then listed or quoted;

     

    (xviii) Provide
      to each Holder upon written request each document filed with the Commission
      pursuant to the requirements of Section 13 and Section 15 of the Exchange Act
      after the effective date of the Shelf Registration Statement, unless such
      document is available through the Commission’s EDGAR system;

     

    (xix) In
      connection with any underwritten offering conducted pursuant to Section 8
      hereof, make such representations and warranties to the Holders of Securities
      registered thereunder and the underwriters, in form, substance and scope as
      are
      customarily made by issuers to underwriters in primary underwritten offerings
      and covering matters including, but not limited to, those set forth in the
      Purchase Agreement;

     

    (xx) In
      connection with any underwritten offering conducted pursuant to Section 8
      hereof, obtain opinions of counsel to the Company and updates thereof (which
      counsel and opinions (in form, scope and substance) shall be reasonable
      satisfactory to the Managing Underwriters) addressed to each selling Holder
      and
      the underwriters, if any, covering such matters as are customarily covered
      in
      opinions requested in underwritten offerings and such other matters as may
      be
      reasonable requested by such Holders and underwriters (including, without
      limitation, a customary “10b-5 statement”);

     

    (xxi) In
      connection with any underwritten offering conducted pursuant to Section 8,
      hereof, obtain “comfort” letters and updates thereof from the independent
      registered public accountants of the Company (and, if necessary, any other
      independent registered public accountants of any subsidiary of the Company
      or of
      any business acquired by the Company for which financial statements and
      financial data are, or are required to be, included in the Shelf Registration
      Statement), addressed to the underwriters, in customary form and covering
      matters of the type customarily covered in “comfort” letters in connection with
      primary underwritten offerings; and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (xxii) In
      connection with any underwritten offering conducted pursuant to Section 8
      hereof, deliver such documents and certificates as may be reasonable requested
      by the Majority Holders and the Managing Underwriters, including those to
      evidence compliance with Section 4(b)(iii) hereof and with any customary
      conditions contained in the Purchase Agreement or other agreement entered into
      by the Company.

     

    (xxiii) In
      connection with underwritten offering conducted pursuant to Section 8 hereof,
      the Company shall, if requested, promptly include or incorporate in a Prospectus
      supplement or post-effective amendment to the Shelf Registration Statement
      such
      information as the Managing Underwriters reasonable agree should be included
      therein and to which the Company does not reasonable object and shall make
      all
      required filings of such Prospectus supplement or post-effective amendment
      as
      soon as practicable after it is notified of the matters to be included or
      incorporated in such Prospectus supplement or post-effective
      amendment.

     

    (xxiv) Use
      reasonable best efforts to take all other steps necessary to effect the
      registration of the Transfer Restricted Securities covered by the Shelf
      Registration Statement.

     

    (xxv) Enter
      into customary agreements (including, if requested, an underwriting agreement
      in
      customary form) and take all other appropriate actions in order to expedite
      or
      facilitate the registration or the disposition of the Transfer Restricted
      Securities, and in connection therewith, if an underwriting agreement is entered
      into, cause the same to contain indemnification provisions and procedures no
      less favorable than those set forth in Section 6 hereof.

     

    The
      actions set forth in clauses (xx), (xxi), (xxii) and (xxiii) of this Section
      4(b) shall be performed at (A) the effectiveness of the Shelf Registration
      Statement and each post-effective amendment thereto; and (b) each closing under
      any underwriting or similar agreement as and to the extent required
      thereunder.

     

    (c) Each
      Holder agrees by acquisition of a Transfer Restricted Security that, upon
      receipt of any notice (a “Suspension
      Notice”)
      from
      the Company of the existence of any fact of the kind described in Section
      4(b)(iv)(B) through (E) hereof, such Holder will forthwith discontinue
      disposition of Transfer Restricted Securities pursuant to the Shelf Registration
      Statement and use of the Prospectus and any related Free Writing Prospectuses
      until:

     

    (i) such
      Holder has received copies of the supplemented or amended Prospectus or
      applicable Issuer Free Writing Prospectus contemplated by Section 4(b)(xi)
      hereof; or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (ii) such
      Holder is advised in writing by the Company that the use of the Prospectus
      and
      any applicable Issuer Free Writing Prospectus may be resumed, and has received
      copies of any additional or supplemental filings that are incorporated by
      reference in the Prospectus. 

     

    If
      so
      directed by the Company, each Holder will deliver to the Company (at the
      Company’s expense) all copies, other than permanent file copies then in such
      Holder’s possession, of the Prospectus covering such Transfer Restricted
      Securities and any Issuer Free Writing Prospectus that was current at the time
      of receipt of such Suspension Notice.

     

    (d) Each
      Holder agrees by acquisition of a Transfer Restricted Security, that no Holder
      shall be entitled to sell any of such Transfer Restricted Securities pursuant
      to
      a Registration Statement, or to receive a Prospectus relating thereto, unless
      such Holder has furnished the Company with a fully completed Notice and
      Questionnaire as required pursuant to Section 2(b) or Section 2(f) hereof
      (including the information required to be included in such Notice and
      Questionnaire) and the information set forth in the next sentence. The Company
      may require each Notice Holder of Shares to be sold pursuant to the Shelf
      Registration Statement to furnish to the Company such information regarding
      the
      Holder and the distribution of such Shares as the Company may from time to
      time
      reasonable require for inclusion in such Registration Statement in order to
      comply with the Securities Act and the rules and regulations of the Commission
      promulgated thereunder.. Each Notice Holder agrees promptly to furnish to the
      Company all information required to be disclosed in order to make the
      information previously furnished to the Company by such Notice Holder not
      misleading and any other information regarding such Notice Holder and the
      distribution of such Transfer Restricted Securities as the Company may from
      time
      to time reasonable request in writing. Any
      sale
      of any Transfer Restricted Securities by any Holder shall constitute a
      representation and warranty by such Holder that the information relating to
      such
      Holder and its plan of distribution is as set forth in the Prospectus delivered
      in writing by such Holder in connection with such disposition, that such
      Prospectus does not as of the time of such sale contain any untrue statement
      of
      a material fact relating to or provided in writing by such Holder or its plan
      of
      distribution and that such Prospectus does not as of the time of such sale
      omit
      to state any material fact relating to or provided in writing by such Holder
      or
      its plan of distribution necessary to make the statements in such Prospectus,
      in
      light of the circumstances under which they were made not misleading.
The
      Company may exclude from such Shelf Registration Statement the Shares of any
      Holder that unreasonable fails to furnish such information within a reasonable
      time after receiving such request.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e) No
      Piggyback on Registrations. Neither the Company nor any of its security holders
      (other than the Holders in such capacity pursuant hereto) may include securities
      of the Company in the Shelf Registration Statement other than the Transfer
      Restricted Securities.

     

    (f) Piggy-Back
      Registrations. If at any time during the Effectiveness Period there is not
      an
      effective Shelf Registration Statement covering all of the Transfer Restricted
      Securities and the Company shall determine to prepare and file with the SEC
      a
      registration statement relating to an offering for its own account or the
      account of others under the Securities Act of any of its equity securities,
      other than on Form S-4 or Form S-8 (each as promulgated under the Securities
      Act) or their then equivalents relating to equity securities to be issued solely
      in connection with any acquisition of any entity or business or equity
      securities issuable in connection with stock option or other employee benefit
      plans, then the Company shall send to each Holder not then eligible to sell
      all
      of their Transfer Restricted Securities under Rule 144 in a three-month period,
      written notice of such determination and if, within ten days after receipt
      of
      such notice, any such Holder shall so request in writing, the Company shall
      include in such registration statement all or any part of such Transfer
      Restricted Securities such Holder requests to be registered. Notwithstanding
      the
      foregoing, in the event that, in connection with any underwritten public
      offering, the managing underwriter(s) thereof shall impose a limitation on
      the
      number of shares of Common Stock which may be included in the Registration
      Statement because, in such underwriter(s)’ judgment, marketing or other factors
      dictate such limitation is necessary to facilitate public distribution, then
      the
      Company shall be obligated to include in such Registration Statement only such
      limited portion of the Transfer Restricted Securities with respect to which
      such
      Holder has requested inclusion hereunder as the underwriter shall permit;
provided,
      however,
      that
      (i) the Company shall not exclude any Transfer Restricted Securities unless
      the
      Company has first excluded all outstanding securities, the holders of which
      are
      not contractually entitled to inclusion of such securities in such Registration
      Statement or are not contractually entitled to pro rata inclusion with the
      Transfer Restricted Securities and (ii) after giving effect to the immediately
      preceding proviso, any such exclusion of Transfer Restricted Securities shall
      be
      made pro rata among the Holders seeking to include Transfer Restricted
      Securities and the holders of other securities having the contractual right
      to
      inclusion of their securities in such Registration Statement by reason of demand
      registration rights, in proportion to the number of Transfer Restricted
      Securities or other securities, as applicable, sought to be included by each
      such Investor or other holder. If an offering in connection with which an
      Investor is entitled to registration under this Section 4(e) is an underwritten
      offering, then each Holder whose Transfer Restricted Securities are included
      in
      such Registration Statement shall, unless otherwise agreed by the Company,
      offer
      and sell such Transfer Restricted Securities in an underwritten offering using
      the same underwriter or underwriters and, subject to the provisions of this
      Agreement, on the same terms and conditions as other shares of Common Stock
      included in such underwritten offering and shall enter into an underwriting
      agreement in a form and substance reasonable satisfactory to the Company and
      the
      underwriter or underwriters. Upon the effectiveness the registration statement
      for which piggy-back registration has been provided in this Section 4(e), any
      Registration Penalties payable to a Holder whose Transfer Restricted Securities
      are included in such registration statement shall terminate and no longer be
      payable.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5. Registration
      Expenses.
      

     

    All
      expenses incident to the Company’s performance of or compliance with this
      Agreement shall be borne by the Company regardless of whether a Shelf
      Registration Statement becomes effective, including, without limitation:

     

    (a) all
      registration and filing fees and expenses (including filings made with the
      FINRA);

     

    (b) all
      fees
      and expenses of compliance with federal securities and state Blue Sky or
      securities laws, if required; 

     

    (c) all
      expenses of printing (including printing of Prospectuses, Issuer Free Writing
      Prospectuses and certificates for the Common Stock to be issued upon conversion
      of or in connection with the Shares) and the Company’s expenses for messenger
      and delivery services and telephone; 

     

    (d) all
      reasonable and documented fees and disbursements of counsel to the
      Company;

     

    (e) all
      application and filing fees in connection with listing (or authorizing for
      quotation) the Common Stock on a national securities exchange or automated
      quotation system pursuant to the requirements hereof; and 

     

    (f) all
      fees
      and disbursements of independent registered public accountants of the Company
      (including, without limitation, expenses relating to any comfort letter required
      to be delivered).

     

    The
      Company shall bear its internal expenses (including, without limitation, all
      salaries and expenses of their officers and employees performing legal,
      accounting or other duties), the expenses of any annual audit and the fees
      and
      expenses of any Person, including special experts, retained by the Company.
      The
      Company shall pay all expenses customarily borne by issuers in an underwritten
      offering as set forth in Section 8(c) hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6. Indemnification
      And Contribution.
      

     

    (a) The
      Company agrees to indemnify and hold harmless each Holder of Transfer Restricted
      Securities, its directors, officers, employees and agents, and each person,
      if
      any, who controls any Holder within the meaning of the Securities Act or the
      Exchange Act (each, an “Indemnified
      Holder”),
      against any loss, claim, damage, liability or expense, as incurred, or any
      action in respect thereof (including, but not limited to, any loss, claim,
      damage, liability or expense relating to resales of the Transfer Restricted
      Securities) (collectively, “Losses”),
      to
      which such Indemnified Holder may become subject, insofar as any such Loss
      arises out of or is based upon:

     

    (i) any
      untrue statement or alleged untrue statement of a material fact contained in
      (A)
the
      Shelf
      Registration Statement as originally filed or in any amendment thereof or
      supplement thereto, or (B) any blue sky application or other document or any
      amendment or supplement thereto prepared or executed by the Company (or based
      upon written information furnished by or on behalf of the Company expressly
      for
      use in such blue sky application or other document or amendment or supplement)
      filed in any jurisdiction specifically for the purpose of qualifying any or
      all
      of the Transfer Restricted Securities under the securities law of any state
      or
      other jurisdiction (such application or document being hereinafter called a
      “Blue
      Sky Application”),
      or,
      in each case, the omission or alleged omission to state therein any material
      fact required to be stated therein or necessary to make the statements therein
      not misleading; or

     

    (ii) any
      untrue statement or alleged untrue statement of a material fact contained in
      any
      Issuer Free Writing Prospectus, any preliminary prospectus or the Prospectus
      (or
      any amendment or supplement thereto), or the omission or alleged omission
      therefrom of a material fact, in each case, necessary in order to make the
      statements therein, in the light of the circumstances under which they were
      made, not misleading, or

     

    (iii) any
      breach of any representation, warranty, covenant, agreement or obligation of
      the
      Company contained in this Agreement,

     

    and
      to
      reimburse each Indemnified Holder for any and all reasonable expenses (including
      the fees and disbursements of counsel) as they are incurred by such Indemnified
      Holder in connection with investigating, defending, settling, compromising
      or
      paying any such Loss; provided,
      however,
      that the
      foregoing indemnity agreement shall not apply to any Loss to the extent, but
      only to the extent, arising out of or based upon any untrue statement or alleged
      untrue statement or omission or alleged omission made in reliance upon and
      in
      conformity with written information furnished to the Company by or on behalf
      of
      such Holder (or its related Indemnified Holder) expressly for use therein
      (including, without limitation, information within such Holder’s Notice and
      Questionnaire). The indemnity agreement set forth in this Section 6(a) shall
      be
      in addition to any liabilities that the Company may otherwise have.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      Company also agrees to indemnify as provided in this Section 6(a) or contribute
      as provided in Section 6(e) hereof to Losses of each underwriter, if any, of
      Transfer Restricted Securities registered under a Shelf Registration Statement,
      their directors, officers, employees or agents and each person who controls
      such
      underwriter on substantially the same basis as that of the indemnification
      of
      the selling Holders provided in this Section 6(a) and shall, if requested by
      any
      Holder, enter into an underwriting agreement reflecting such agreement, as
      provided in Section 4(b)(xxvi) hereof.

     

    (b) Each
      Holder agrees, severally and not jointly, to indemnify and hold harmless the
      Company, each of its directors, each of its officers who sign the Shelf
      Registration Statement and each person, if any, who controls the Company within
      the meaning of the Securities Act or the Exchange Act (i) to the same extent
      as
      the foregoing indemnity from the Company to each such Holder, but only with
      reference to written information relating to such Holder furnished to the
      Company by or on behalf of such Holder specifically for inclusion in the
      documents referred to in the foregoing indemnity and (ii) against any Loss,
      joint or several, including, but not limited to, any Loss relating to resales
      of
      the Transfer Restricted Securities, to which such person may become subject,
      insofar as any such Loss arises out of, or is based upon any Free Writing
      Prospectus used by such Holder without the prior consent of the Issuer, and
      in
      connection with any underwritten offering, the underwriters, provided that
      the
      indemnification obligation in this clause (ii) shall be several, not joint
      and
      several, among the Holders who used such Free Writing Prospectus. This indemnity
      agreement set forth in this Section shall be in addition to any liabilities
      which any such Holder may otherwise have.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) Promptly
      after receipt by an indemnified party under this Section 6 of notice of the
      commencement of any action, such indemnified party will, if a claim in respect
      thereof is to be made against an indemnifying party under this Section 6, notify
      the indemnifying party in writing of the commencement thereof, but the failure
      to notify the indemnifying party (i) will not relieve it from liability under
      paragraph (a) or (b) above unless and to the extent it did not otherwise learn
      of such action and such failure results in the forfeiture by the indemnifying
      party of substantial rights and defenses and (ii) will not, in any event,
      relieve the indemnifying party from any obligations to any indemnified party
      other than the indemnification obligation provided in paragraph (a) or (b)
      above. In case any such action is brought against any indemnified party and
      such
      indemnified party seeks or intends to seek indemnity from an indemnifying party,
      the indemnifying party will be entitled to participate in, and, to the extent
      that it shall elect, jointly with all other indemnifying parties similarly
      notified, by written notice delivered to the indemnified party promptly after
      receiving the aforesaid notice from such indemnified party, to assume the
      defense thereof with counsel satisfactory to such indemnified party;
provided,
      however,
      if the
      defendants in any such action include both the indemnified party and the
      indemnifying party and the indemnified party shall have reasonable concluded
      that a conflict may arise between the positions of the indemnifying party and
      the indemnified party in conducting the defense of any such action or that
      there
      may be legal defenses available to it and/or other indemnified parties that
      are
      different from or additional to those available to the indemnifying party,
      the
      indemnified party or parties shall have the right to select separate counsel
      to
      assume such legal defenses and to otherwise participate in the defense of such
      action on behalf of such indemnified party or parties. Upon receipt of notice
      from the indemnifying party to such indemnified party of such indemnifying
      party’s election so to assume the defense of such action and approval by the
      indemnified party of counsel, the indemnifying party will not be liable to
      such
      indemnified party under this Section 6 for any legal or other expenses
      subsequently incurred by such indemnified party in connection with the defense
      thereof unless (i) the indemnified party shall have employed separate counsel
      in
      accordance with the proviso to the preceding sentence (it being understood,
      however, that the indemnifying party shall not be liable for the expenses of
      more than one separate counsel (other than local counsel), reasonable approved
      by the indemnifying party, representing the indemnified parties who are parties
      to such action) or (ii) the indemnifying party shall not have employed counsel
      satisfactory to the indemnified party to represent the indemnified party within
      a reasonable time after notice of commencement of the action, in each of which
      cases the fees and expenses of counsel shall be at the expense of the
      indemnifying party.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d) The
      indemnifying party under this Section 6 shall not be liable for any settlement
      of any proceeding effected without its written consent, which shall not be
      withheld unreasonable, but if settled with such consent or if there is a final
      judgment for the plaintiff, the indemnifying party agrees to indemnify the
      indemnified party against any Loss by reason of such settlement or judgment.
      Notwithstanding the foregoing sentence, if at any time an indemnified party
      shall have requested an indemnifying party to reimburse the indemnified party
      for fees and expenses of counsel as contemplated by Section 6(c) hereof, the
      indemnifying party agrees that it shall be liable for any settlement of any
      proceeding effected without its written consent if (i) such settlement is
      entered into more than 30 days after receipt by such indemnifying party of
      the
      aforesaid request and (ii) such indemnifying party shall not have reimbursed
      the
      indemnified party in accordance with such request prior to the date of such
      settlement. No indemnifying party shall, without the prior written consent
      of
      the indemnified party, effect any settlement, compromise or consent to the
      entry
      of judgment in any pending or threatened action, suit or proceeding in respect
      of which any indemnified party is or could have been a party and indemnity
      was
      or could have been sought hereunder by such indemnified party, unless such
      settlement, compromise or consent (x) includes an unconditional release of
      such
      indemnified party from all liability on claims that are the subject matter
      of
      such action, suit or proceeding and (y) does not include a statement as to
      or an
      admission of fault, culpability or a failure to act, by or on behalf of any
      indemnified party.

     

    (e) If
      the
      indemnification provided for in this Section 6 is for any reason unavailable
      to
      or otherwise insufficient to hold harmless an indemnified party in respect
      of
      any Loss referred to therein, then each indemnifying party shall contribute
      to
      the aggregate amount paid or payable by such indemnified party, as incurred,
      as
      a result of any Loss referred to therein:

     

    (i) in
      such
      proportion as is appropriate to reflect the relative benefits received by the
      Company, on the one hand, and the Holders, on the other hand, from the offering
      and sale of the Transfer Restricted Securities, on the one hand, and a Holder
      with respect to the sale by such Holder of the Transfer Restricted Securities,
      on the other hand, or

     

    (ii) if
      the
      allocation provided by Section (6)(e)(i) above is not permitted by applicable
      law, in such proportion as is appropriate to reflect not only the relative
      benefits referred to in Section 6(e)(i) above but also the relative fault of
      the
      Company, on the one hand, and the Holders, on the other hand, in connection
      with
      the statements or omissions or alleged statements or omissions that resulted
      in
      such Loss, as well as any other relevant equitable considerations. 

     

    The
      relative benefits received by the Company, on the one hand, and the Holders,
      on
      the other hand, in connection with such offering and such sale of the Transfer
      Restricted Securities pursuant to this Agreement shall be deemed to be in the
      same respective proportions as the total proceeds from the offering of the
      Shares purchased under the Purchase Agreement (before deducting expenses)
      received by the Company and the total proceeds received by the Holders with
      respect to their sale of Transfer Restricted Securities. The relative fault
      of
      the Company, on the one hand, and the Holders, on the other hand, shall be
      determined by reference to, among other things, whether any such untrue or
      alleged untrue statement of a material fact or omission or alleged omission
      to
      state a material fact relates to information supplied by the Company, on the
      one
      hand, or the Holders, on the other hand, and the parties’ relative intent,
      knowledge, access to information and opportunity to timely correct or prevent
      such statement or omission. The Company and the Holders agree that it would
      not
      be just and equitable if contribution pursuant to this Section 6(e) were
      determined by pro
      rata
      allocation (even if the Holders were treated as one entity for such purpose)
      or
      by any other method of allocation that does not take account of the equitable
      considerations referred to in this Section 6(e).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      amount paid or payable by a party as a result of the Loss referred to above
      shall be deemed to include, subject to the limitations set forth in Section
      6(c), any legal or other fees or expenses reasonable incurred by such party
      in
      connection with investigating or defending any action or claim.

     

    Notwithstanding
      the provisions of this Section 6, in no event will (i) any Holder be required
      to
      undertake liability to any person under this Section 6 for any amounts in excess
      of the dollar amount of the net proceeds received by such Holder from the sale
      of such Holder’s Transfer Restricted Securities (after deducting any fees,
      discounts and commissions applicable thereto) pursuant to any Shelf Registration
      Statement under which such Transfer Restricted Securities are to be registered
      under the Securities Act and (ii) any underwriter be required to undertake
      liability to any person hereunder for any amounts in excess of the discount
      or
      commission payable to such underwriter with respect to the Transfer Restricted
      Securities underwritten by it and distributed to the public. 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. The Holders’ obligations to
      contribute as provided in this Section 6(e) are several and not
      joint.

     

    (f) The
      provisions of this Section 6 shall remain in full force and effect, regardless
      of any investigation made by or on behalf of any Holder or the Company or any
      of
      the officers, directors, employees, agents or controlling persons referred
      to in
      Section 6 hereof, and will survive the sale by a Holder of Transfer Restricted
      Securities.

     

    7. Rule
      144A and Rule 144. The
      Company agrees with each Holder, for so long as any Transfer Restricted
      Securities remain outstanding and during any period in which the Company (i)
      is
      not subject to Section 13 or 15(d) of the Exchange Act, to make available,
      upon
      request of any Holder, to such Holder of Transfer Restricted Securities in
      connection with any sale thereof and any prospective purchaser of such Transfer
      Restricted Securities designated by such Holder, the information required by
      Rule 144A(d)(4) under the Securities Act in order to permit resales of such
      Transfer Restricted Securities pursuant to Rule 144A, and (ii) is subject to
      Section 13 or 15(d) of the Exchange Act, to make all filings required thereby
      in
      a timely manner in order to permit resales of such Transfer Restricted
      Securities pursuant to Rule 144.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    8. Underwritten
      Registrations. 

     

    (a) Any
      Holder of Transfer Restricted Securities may sell Transfer Restricted Securities
      (in whole or in part) in an underwritten offering; provided
      that at
      least $15 million of such Transfer Restricted Securities shall be included
      in
      such offering; and provided
      further
      that the
      Company shall not be obligated to participate in more than one underwritten
      offering during any twelve-month period. If any of the Transfer Restricted
      Securities covered by the Shelf Registration Statement are to be sold in an
      underwritten offering, the Managing Underwriters shall be selected by the
      Purchaser.

     

    (b) No
      person
      may participate in any underwritten offering pursuant to the Shelf Registration
      Statement unless such person (i) agrees to sell such person’s Transfer
      Restricted Securities on the basis reasonable provided in any underwriting
      arrangements approved by the persons entitled hereunder to approve such
      arrangements; (ii) completes and executes all questionnaires, powers of
      attorney, indemnities, underwriting agreements and other documents reasonable
      required under the terms of such underwriting arrangements; and (iii) if such
      Holder is not then a Notice Holder, such Holder returns a completed and signed
      Notice and Questionnaire to the Company in accordance with Section 2(b) or
      Section 2(f) hereof within a reasonable amount of time before such underwritten
      offering.

     

    (c) The
      Holders participating in any underwritten offering shall be responsible for
      any
      underwriting discounts and commissions and fees and, subject to Section 5
      hereof, expenses of their own counsel. The Company shall pay all expenses
      customarily borne by issuers in an underwritten offering, including but not
      limited to filing fees, the fees and disbursements of its counsel and
      independent public accountants and any printing expenses incurred in connection
      with such underwritten offering. Notwithstanding the foregoing or the provisions
      of Section 4(b)(xxiv) hereof, upon receipt of a request from the Managing
      Underwriter or a representative of holders of a majority of the Transfer
      Restricted Securities to be included in an underwritten offering to prepare
      and
      file an amendment or supplement to the Shelf Registration Statement and
      Prospectus in connection with an underwritten offering, the Company may delay
      the filing of any such amendment or supplement for up to 30 days if the Board
      of
      Directors of the Company shall have determined in good faith that an Excluded
      Event has occurred and is continuing.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d) In
      the
      event of a firm commitment underwriting of the Purchaser’s shares conducted
      pursuant to Section 8 hereof, the Company will deliver an undertaking to the
      Managing Underwriter (if requested) to evidence that it will not effect any
      public sale or distribution (including any sales pursuant to Rule 144) of equity
      securities of the Company, or any securities convertible into or exchangeable
      or
      exercisable for such securities, during the seven (7) days prior to and the
      90-day period beginning on the effective date of any underwritten registered
      public offering; provided, that the restrictions in this Section 8(d) shall
      not
      prevent the Company from issuing securities pursuant to the Company Stock Plans
      (as defined in the Purchase Agreement).

     

    9. Miscellaneous.
      

     

    (a) Free
      Writing Prospectuses.
      Each
      Holder represents that it has not prepared or had prepared on its behalf or
      used
      or referred to, and agrees that it will not prepare or have prepared on its
      behalf or use or refer to, any Free Writing Prospectus, and has not distributed
      and will not distribute any written materials in connection with the offer
      or
      sale of the Transfer Restricted Securities without the prior express written
      consent of the Company and, in connection with any underwritten offering, the
      underwriters. Any such Free Writing Prospectus consented to by the Company
      and,
      if applicable, the underwriters, as the case may be, is hereinafter referred
      to
      as a “Permitted
      Free Writing Prospectus.”
      The
      Company represents and agrees that it has treated and will treat, as the case
      may be, each Permitted Free Writing Prospectus as an Issuer Free Writing
      Prospectus, including in respect of timely filing with the Commission, legending
      and recordkeeping.

     

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

     

    (c) No
      Inconsistent Agreements.
      The
      Company has not, as of the date hereof, entered into, nor shall it, on or after
      the date hereof, enter into, any agreement with respect to its securities that
      is inconsistent with the rights granted to the Holders in this Agreement or
      otherwise conflicts with the provisions hereof. In addition, the Company shall
      not grant to any of its securityholders (other than the Holders of Transfer
      Restricted Securities in such capacity) the right to include any of its
      securities in the Shelf Registration Statement provided for in this Agreement
      other than the Transfer Restricted Securities.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d) Amendments
      and Waivers.
      This
      Agreement may not be amended, modified or supplemented, and waivers or consents
      to or departures from the provisions hereof may not be given, unless the Company
      has obtained the written consent of a Majority of Holders. Notwithstanding
      the
      foregoing (except the foregoing proviso), a waiver or consent to depart from
      the
      provisions hereof with respect to a matter that relates exclusively to the
      rights of Holders whose securities are being sold pursuant to a Shelf
      Registration Statement and does not directly or indirectly adversely affect
      the
      rights of other Holders, may be given by the Majority Holders, determined on
      the
      basis of Transfer Restricted Securities being sold rather than registered under
      such Shelf Registration Statement.

     

    (e) Notices.
      All
      notices and other communications provided for or permitted hereunder shall
      be
      made in writing by hand delivery, first class mail (registered or certified,
      return receipt requested), facsimile transmission, or air courier guaranteeing
      overnight delivery:

     

    (i) if
      to a
      Holder, at the address set forth on the records of the transfer agent of the
      Preferred Shares and the Common Stock, as the case may be; and

     

    (ii) if
      to the
      Company, initially at its address set forth in the Purchase
      Agreement,

     

    With
      a
      copy to:

     

    Matthew
      J. Mallow, Esq.

    Skadden,
      Arps, Slate, Meagher & Flom LLP

    Four
      Times Square

    New
      York,
      New York 10036

    

    All
      such
      notices and communications shall be deemed to have been duly given: at the
      time
      delivered by hand, if personally delivered; four Business Days after being
      deposited in the mail, postage prepaid, if mailed; when receipt acknowledged,
      if
      transmitted by facsimile; and on the next Business Day, if timely delivered
      to
      an air courier guaranteeing overnight delivery.

     

    Any
      party
      hereto may change the address for receipt of communications by giving written
      notice to the others.

     

    (f) Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      assigns of each of the parties, including without limitation and without the
      need for an express assignment, subsequent Holders of Transfer Restricted
      Securities. The Company hereby agrees to extend the benefit of this Agreement
      to
      any Holder and any such Holder may specifically enforce the provisions of this
      Agreement as if an original party hereto.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    (h) Shares
      Held by the Company or Their Affiliates.
      Whenever
      the consent or approval of Holders of a specified percentage of Transfer
      Restricted Securities is required hereunder, Transfer Restricted Securities
      held
      by the Company or its Affiliates (other than subsequent Holders if such
      subsequent Holders are deemed to be Affiliates solely by reason of their holding
      of such Transfer Restricted Securities) shall not be counted in determining
      whether such consent or approval was given by the Holders of such required
      percentage.

     

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

     

    (j) GOVERNING
      LAW.
      THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF
      THE
      STATE OF NEW YORK.

     

    (k) Severability.
      If any
      one or more of the provisions contained herein, or the application thereof
      in
      any circumstance, is held invalid, illegal or unenforceable, the validity,
      legality and enforceability of any such provision in every other respect and
      of
      the remaining provisions contained herein shall not be affected or impaired
      thereby, it being intended that all of the rights and privileges of the parties
      shall be enforceable to the fullest extent permitted by law.

     

    (l) Entire
      Agreement.
      This
      Agreement is intended by the parties as a final expression of their agreement
      and intended to be a complete and exclusive statement of the agreement and
      understanding of the parties hereto in respect of the subject matter contained
      herein. There are no restrictions, promises, warranties or undertakings, other
      than those set forth or referred to herein with respect to the registration
      rights granted by the Company with respect to the Transfer Restricted
      Securities. This Agreement supersedes all prior agreements and understandings
      between the parties with respect to such subject matter.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

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

     

    
      	
              ANTHRACITE
                CAPITAL, INC.

            
	 	 	 
	
              By
                

            	
              /s/
                Christpher A. Milner

            	 
	 	
              Name:   
                Christopher A. Milner

            
	 	
              Title:    
                Chief Executive Officer

            

    

     

    
      [Signature
        Page to Registration Rights Agreement]

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              RECP
                IV CITE CMBS EQUITY, L.P.

            
	 	 	 
	
              By

            	
              /s/
                James D. Allen

            	 
	 	
              Name:   
                James D. Allen    

            
	 	
              Title:     
                Vice President 

            

    

    

      [Signature
        Page to Registration Rights Agreement]Unassociated Document

     

    THE
      GYMBOREE CORPORATION

    

    MANAGEMENT
      CHANGE OF CONTROL PLAN

    

    Amended
      and Restated

    Effective
      April 1, 2008

     

    ARTICLE
      I

    

    PURPOSE,
      ESTABLISHMENT AND APPLICABILITY OF PLAN

    

    1. Purposes.
      It is
      expected that the Company from time to time will consider the possibility of
      a
      Change of Control. The Board recognizes that such consideration can be a
      distraction to key Employees and can cause such Employees to consider
      alternative employment opportunities. The Board has determined that it is in
      the
      best interests of the Company and its stockholders to assure that the Company
      will have the continuous dedication and objectivity of these Employees,
      notwithstanding the possibility, threat or occurrence of a Change of Control.
      The Board believes that it is in the best interests of the Company and its
      stockholders to provide these Employees with certain severance benefits upon
      termination of employment following a Change of Control. Such benefits provide
      these Employees an incentive to remain with the Company, notwithstanding the
      possibility or occurrence of a Change of Control, and to maximize the value
      of
      the Company upon a Change of Control for the benefit of its
      stockholders.

    

    2. Establishment
      of Plan.
      As of
      the Effective Date, the Company hereby establishes the Plan, as set forth in
      this document.

    

    3. Applicability
      of Plan.
      Subject
      to the terms of this Plan, the benefits provided by this Plan shall be available
      to those Employees who, on or after the Effective Date, receive a Notice of
      Participation.

    

    4. Contractual
      Right to Benefits.
      This
      Plan and the Notice of Participation establish and vest in each Participant
      a
      contractual right to the benefits to which he or she is entitled pursuant to
      the
      terms and conditions thereof, enforceable by the Participant against the
      Company.

     

    ARTICLE
      II

     

    DEFINITIONS
      AND CONSTRUCTION

    

    Whenever
      used in this Plan, the following terms shall have the meanings set forth
      below.

    

    1. Annual
      Compensation.
“Annual
      Compensation” shall mean an amount equal to the sum of (i) the Participant’s
      gross annual base salary, exclusive of bonuses, other incentive pay, commissions
      and all other pay or expense types, as in effect immediately preceding the
      Change of Control, and (ii) the Participant’s Average Annual Bonus.

    

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

     

    2. Average
      Annual Bonus.
      “Average Annual Bonus" shall mean the average bonus payments received by the
      Participant under the Company’s incentive cash bonus and variable cash
      compensation programs as in effect on the date of a Change of Control (or any
      predecessor or successor programs) for the three most recent consecutive and
      complete fiscal years of the Company prior to the fiscal year in which the
      Change of Control occurs. For purposes of calculating a Participant’s Average
      Annual Bonus, the following rules shall apply:

    

    (i) In
      the
      event a Participant was not eligible to participate in such bonus and variable
      compensation programs for the entire three year period, the Average Annual
      Bonus
      shall be calculated based upon the Participant’s actual period of eligibility;
      and 

    

    (ii) In
      the
      event a Participant first became eligible to participate in such bonus and
      variable compensation programs in the fiscal year in which the Change of Control
      occurs, the Participant’s Average Annual Bonus shall be based on his or her
      targeted bonus and variable compensation amounts as in effect immediately prior
      to such Change of Control.

    

    3. Board.
“Board”
      shall mean the Board of Directors of the Company.

    

    4. Cause.
“Cause”
      shall mean (i) any act of personal dishonesty taken by the Participant in
      connection with his or her responsibilities as an Employee and intended to
      result in substantial personal enrichment of the Participant, (ii) the
      Participant’s conviction of a felony that is injurious to the Company, (iii) a
      willful act by the Participant which constitutes gross misconduct and which
      is
      injurious to the Company, (iv) continued substantial violations by the
      Participant of the Participant’s employment duties which are demonstrably
      willful and deliberate on the Participant’s part after there has been delivered
      to the Participant a written demand for performance from the Company which
      specifically sets forth the factual basis for the Company’s belief that the
      Participant has not substantially performed his duties or (v) any act that
      would constitute a material violation of the standards set forth in this Plan,
      including, without limitation, the standards of Article VI.

    

    5. Change
      of Control.
“Change
      of Control” shall mean the occurrence of any of the following
      events.

    

    (i) Any
      “person” (as such term is used in Sections 13(d) and 14(d) of the Securities
      Exchange Act of 1934, as amended) becomes the “beneficial owner” (as defined in
      Rule 13d-3 under said Act), directly or indirectly, of securities of the Company
      representing fifty percent (50%) or more of the total voting power represented
      by the Company’s then outstanding voting securities; or

    

    (ii)
       A
      change
      in the composition of the Board occurring within a two-year period, as a result
      of which fewer than a majority of the directors are Incumbent Directors.
“Incumbent Directors” shall mean directors who either (A) are directors of the
      Company as of the date hereof, or (B) are elected, or nominated for election,
      to
      the Board with the affirmative votes of at least a majority of the Incumbent
      Directors at the time of such election or nomination (but shall not include
      an
      individual whose election or nomination is in connection with an actual or
      threatened proxy contest relating to the election of directors to the Company);
      or

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    (iii)
       The
      consummation of a merger or consolidation of the Company with any other
      corporation, other than a merger or consolidation which would result in the
      voting securities of the Company outstanding immediately prior thereto
      continuing to represent (either by remaining outstanding or by being converted
      into voting securities of the surviving entity) more than fifty percent (50%)
      of
      the total voting power represented by the voting securities of the Company
      or
      such surviving entity outstanding immediately after such merger or
      consolidation; or

    

    (iv)
       The
      consummation of the sale or disposition by the Company of all or substantially
      all of the Company’s assets.

    

    6. COBRA
      Premiums Continuation Period.
“COBRA
      Premiums
      Continuation
      Period”
shall mean the period set forth in a Participant’s Notice of Participation,
      which period immediately follows the Participant's Involuntary
      Termination.

    

    7. Code.
“Code”
      shall mean the Internal Revenue Code of 1986, as amended.

    

    8. Company.
      “Company” shall mean The Gymboree Corporation, any subsidiary corporations, any
      successor entities as provided in Article VIII hereof, and any parent or
      subsidiaries of such successor entities.

    

    9. Company-Paid
      Coverage.
      “Company-Paid Coverage” shall mean the benefits coverage described in
      Article IV hereof.

    

    10. Disability.
      “Disability” shall mean that the Participant has been unable to perform his or
      her duties as an Employee as the result of incapacity due to physical or mental
      illness, and the Participant is found to be disabled within the meaning of
      the
      Company’s long-term disability plan.

    

    11. Effective
      Date.
      “Effective Date” for purposes of this most recent amendment and restatement of
      this Plan shall mean April 1, 2008.

    

    
      
        12.
          Employee.
          “Employee” shall mean an employee of the Company.

      

    

    

    13. ERISA.
“ERISA”
      shall mean the Employee Retirement Income Security Act of 1974, as
      amended.

    

    14. "Good
      Reason"
      means
      any of the following which occur without the Participant’s express written
      consent: (i) the material reduction of the Participant’s authority, duties or
      responsibilities relative to the Participant’s authority, duties or
      responsibilities in effect immediately prior to such reduction; provided,
      however, that a significant reduction in authority, duties or responsibilities
      solely by virtue of the Company being acquired and made part of a larger entity
      (as example, when the Chief Financial Officer of The Gymboree Corporation
      remains as such following a Change of Control and is not made the Chief
      Financial Officer of the acquiring corporation) shall not constitute Good
      Reason, (ii) a material reduction by the Company in the annual base salary
      relative to the annual base salary in effect immediately prior to such
      reduction; or (iii) a material change in Participant's geographic work location
      from the location of Participant’s then current position.

    

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    15. Involuntary
      Termination.
      “Involuntary Termination” shall mean (i) a termination of a Participant's
      employment by the Company other than for Cause, (ii) a termination of a
      Participant's employment by the Participant for Good Reason.

    

    16. Notice
      of Participation.
“Notice
      of Participation” shall mean an individualized written notice of participation
      in this Plan from an authorized officer of the Company.

    

    17. Participant.
      “Participant” shall mean an individual who meets the eligibility requirements of
      Article III.

    

    18. Plan.
“Plan”
      shall mean this The Gymboree Corporation Management Change of Control
      Plan.

    

    19. Plan
      Administrator.
“Plan
      Administrator” shall mean the Board of Directors of the Company, or its
      committee or designee, as shall be responsible for administering this
      Plan.

    

    20. Pro-Rated
      Bonus Amount.
      “Pro-Rated Bonus Amount” shall mean a pro-rated portion of the Participant’s
      quarterly and annual bonus and variable compensation calculated as of the Change
      of Control date, as follows:

    

    (i) In
      the
      case of quarterly bonus or variable compensation paid or payable to the
      Participant with respect to the fiscal quarter of the Company completed
      immediately prior to the fiscal quarter in which the Change of Control occurs,
      pro-rated by multiplying such amount by a fraction, the numerator of which
      is
      the number of days during the fiscal quarter in which the Change of Control
      occurs prior to the occurrence of the Change of Control, and the denominator
      of
      which shall be ninety-one and one quarter; and

    

    (ii) In
      the
      case of annual bonus or variable compensation, the portion shall be the amount
      of annual bonus or variable compensation payable to the Participant under the
      Company’s annual bonus or variable compensation program in effect as of the
      Change of Control date, based on year-to-date financial performance of the
      Company for the period ended immediately prior to the Change of Control. For
      this purpose, the performance measures for such fiscal year shall be adjusted,
      as appropriate, to take into account the shortened performance period. The
      amount so determined shall be pro-rated by multiplying such amount by a
      fraction, the numerator of which is the number of days during such fiscal year
      prior to the occurrence of the Change of Control, and the denominator of which
      shall be three hundred and sixty-five.

    

    21. Severance
      Payment.
      “Severance Payment” shall mean the payment of severance compensation as provided
      in Article IV hereof.

    

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    22. Severance
      Payment Percentage.
      “Severance Payment Percentage’ shall mean for each Participant, the Severance
      Payment Percentage set forth in such Participant’s Notice of
      Participation.

     

    ARTICLE
      III

     

    ELIGIBILITY

    

    
      
        1.
          Waiver. As a condition of receiving benefits under this Plan, an Employee
          must sign a general waiver and release on a form provided by the
          Company.

      

    

    

    2. Participation
      in Plan.
      Each
      Employee who is designated by the Board and who signs and returns to the Company
      a Notice of Participation within the time set forth in such Notice shall be
      a
      Participant in this Plan. A Participant shall cease to be a Participant in
      this
      Plan (i) upon ceasing to be an Employee, or (ii) upon receiving written notice
      from this Plan Administrator prior to a Change of Control that the Participant
      is no longer eligible to participate in this Plan, unless in either case such
      Participant is then entitled to benefits hereunder. A Participant entitled
      to
      benefits hereunder shall remain a Participant in this Plan until the full amount
      of the benefits has been delivered to the Participant.

    

    ARTICLE
      IV

    

    SEVERANCE
      BENEFITS

    

    1. Termination
      Following A Change of Control.
      If a
      Participant’s employment terminated during the period following a Change of
      Control that is equal to the same number of months as set forth in the
      Participant's COBRA Premiums Continuation Period, then, subject to Articles
      V
      and VI hereof, the Participant shall be entitled to receive severance benefits
      as follows:

    

    (a) Severance
      Pay Upon an Involuntary Termination.
      If the
      Participant’s employment with the Company terminates as a result of Involuntary
      Termination, the Participant shall be entitled to receive a Severance Payment
      equal to the sum of (i) the product obtained by multiplying the Participant’s
      Severance Payment Percentage times the Participant’s Annual Compensation, plus
      (ii) the Participant’s Pro-Rated Bonus Amount. Any such Severance Payment shall
      be paid in cash by the Company to the Participant in a single lump sum payment,
      less applicable tax withholding, within ten (10) business days of the
      Participant’s termination date, and shall be in lieu of any other severance or
      severance-type benefits to which the Participant may be entitled under any
      other
      Company-sponsored plan, practice or arrangement or agreement between the Company
      and the Participant.

    

    EXAMPLE:
      A
      Change
      of Control is consummated on June 15, 2008. Participant is Involuntarily
      Terminated as of July 1, 2008. Participant’s Annual Compensation is $150,000.
      The Severance Payment Percentage set forth in the Participant’s Notice of
      Participation is 100%. The Participant’s Pro-Rated Bonus Amount for the 2008
      fiscal year is $10,000. The Participant is entitled to a Severance Payment
      equal
      to (i) 100% x $150,000, plus (ii) 10,000, for a total Severance Payment equal
      to
      $160,000.

    

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    (b) Employee
      Benefits Upon an Involuntary Termination.
      The
      Company shall continue to provide the Participant with medical, dental, vision,
      disability and life insurance coverage to the extent provided in the respective
      governing documents for each such employee benefit, including but not limited
      to
      continuation coverage pursuant to Title X of the Consolidated Budget
      Reconciliation Act of 1985 (“COBRA”). To the extent the Participant properly
      elects COBRA continuation coverage, the Company shall reimburse the Participant
      for the full cost of the premiums due for such coverage for a period that ends
      on the earliest to occur of (i) expiration or early termination of COBRA
      continuation coverage in accordance with the requirements of COBRA, and (ii)
      the
      Participant's COBRA Premiums Continuation Period. In the event the Company’s
      payment obligations end based on clause (ii) of the foregoing sentence, the
      Participant shall be responsible for properly paying the full cost of the
      premiums due for any future COBRA continuation coverage to which he or she
      is
      then entitled.

    

    2. Voluntary
      Resignation: Termination For Cause.
      If the
      Participant’s employment terminates by reason of the Participant’s voluntary
      resignation (other than for Good Reason), or if the Company terminates the
      Participant for Cause, then the Participant shall not be entitled to receive
      severance or other benefits under this Plan and shall be entitled only to those
      benefits (if any) as may be available under the Company’s then existing benefits
      plans and policies at the time of such termination.

    

    3. Disability;
      Death.
      If the
      Participant’s employment terminates by reason of the Participant’s death, or in
      the event the Company terminates the Participant’s employment following his or
      her Disability, the Participant shall not be entitled to receive severance
      or
      other benefits under this Plan and shall be entitled only to those benefits
      (if
      any) as may be available under the Company’s then existing benefits plans and
      policies at the time of such termination. 

    

    4. Termination
      Apart from Change of Control.
      In the
      event that a Participant’s employment terminates for any reason prior to the
      occurrence of a Change of Control or after the period following a Change of
      Control that is equal to the same number of months as set forth in the
      Participant's COBRA Premiums Continuation Period, then the Participant shall
      not
      be entitled to receive severance or other benefits under this Plan and shall
      be
      entitled only to those benefits (if any) as may available under the Company’s
      then existing benefits plans and policies at the time of such
      termination.

    

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      V

    

    GOLDEN
      PARACHUTE EXCISE TAX AND NON-DEDUCTIBILITY LIMITATIONS

    

    1. Benefits
      Cap.
      Except
      if specifically otherwise set forth in a Participant’s Notice of Participation,
      in the event that any payment or benefit under this Plan, either alone or when
      aggregated with any other payments or benefits received by a Participant, or
      to
      be received by a Participant, from the Company, or from any person whose actions
      result in a Change of Control of the Company or from any person affiliated
      with
      the Company or such persons (each a "Payment" and, collectively, the "Total
      Payments") would (i) constitute a “parachute payment” within the meaning of
      Section 280G of the Code, and (ii) but for this provision, any portion of which
      would be subject to the excise tax imposed by Section 4999 of the Code or any
      similar or successor provision (the "Excise Tax"), then the Participant’s
      payments and benefits under this Plan shall be reduced to such lesser amount
      or
      degree as would result in no portion of any Payment being subject to the Excise
      Tax or being disallowed as a deduction under Section 280G of the Code. If,
      pursuant to this ArticleV.1, a Participant's payments and benefits are required
      to be reduced, the Company shall first reduce the payments described in Article
      IV.1(a). If, after the Company reduces the amounts otherwise payable to a
      Participant under such section, any of the Participant's remaining Total
      Payments would still be subject to the Excise Tax or would be disallowed as
      a
      deduction under Section 280G of the Code, the Company shall determine the
      manner in which the remaining Total Payments will be reduced.

    

    2. Determination.
      Unless
      the Company and the Participant otherwise agree in writing, any determination
      required under this Article or the Participant’s Notice of Participation shall
      be made in writing by an independent accounting firm appointed by the Company
      (the "Accountants”), whose determination shall be conclusive and binding upon
      the Participant and the Company for all purposes. For purposes of making the
      calculations required by this Article, the Accountants may make reasonable
      assumptions and approximations concerning applicable taxes and may rely on
      reasonable, good faith interpretations concerning the application of Sections
      280G and 4999 of the Code. The Company and the Participant shall furnish to
      the
      Accountants such information and documents as the Accountants may reasonably
      request in order to make a determination under this Article. The Company shall
      bear all costs the Accountants may reasonably incur in connection with any
      calculations pursuant to this Article.

     

    ARTICLE
      VI

    

    FORFEITURE
      OF SEVERANCE BENEFITS

    

    1. Future
      Services with the Company.
      If a
      Participant provides services to the Company (as an employee, independent
      contractor, consultant or otherwise) during his or her COBRA Premiums
      Continuation Period and does so without the prior written approval of the
      Company's General Counsel or his or her delegate, the Participant shall repay
      (or, if the Severance Payment and/or Company-Paid Coverage has not yet been
      paid
      or provided, forfeit) a pro rata amount of the Severance Payment previously
      paid
      by the Company equal to the fraction derived from the number of days remaining
      in the COBRA Premiums Continuation Period divided by the total number of days
      in
      the COBRA Premiums Continuation Period.

    

    2. Violation
      of the Company's Code of Conduct, Code of Ethics or the Participant's
      Restrictive Covenants.
      Notwithstanding any other provision of this Plan to the contrary, if it is
      determined by the Company that a Participant has violated the Company's code
      of
      conduct or code of ethics or violated any restrictive covenants contained in
      the
      Participant's general waiver and release or any other restrictive covenants
      contained in any other Company plan or program or agreement between the Company
      and the Participant, the Participant shall be required to repay to the Company
      an amount equal to the economic value of all Severance Payments and Company-Paid
      Coverage already paid or provided to the Participant under this Plan and the
      Participant shall forfeit all other entitlements under this Plan. Additional
      forfeiture provisions may apply under other agreements between the Participant
      and the Company, and any such forfeiture provisions shall remain in full force
      and effect.

    

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VII

    

    EMPLOYMENT
      STATUS: WITHHOLDING

    

    1. Employment
      Status.
      This
      Plan does not constitute a contract of employment or impose on the Participant
      or the Company any obligations to retain the Participant as an Employee, to
      change the status of the Participant’s employment, or to change the Company’s
      policies regarding termination of employment. The Participant’s employment is
      and shall continue to be at will, as defined under applicable law. If the
      Participant’s employment with the Company or a successor entity terminates for
      any reason, including (without limitation) any termination prior to a Change
      of
      Control, the Participant shall not be entitled to any payments, benefits,
      damages, awards or compensation other than as provided by this Plan, or as
      may
      otherwise be available in accordance with the Company’s established employee
      plans and practices or other agreements with the Company at the time of
      termination.

    

    2. Taxation
      of Plan Payments.
      All
      amounts paid pursuant to this Plan shall be subject to regular payroll and
      withholding taxes.

    

    ARTICLE
      VIII

    

    SUCCESSORS
      TO COMPANY AND PARTICIPANTS

    

    1. Company’s
      Successors.
      Any
      successor to the Company (whether direct or indirect and whether by purchase,
      lease, merger, consolidation, liquidation or otherwise) to all or substantially
      all of the Company’s business and/or assets shall assume the obligations under
      this Plan and agree expressly to perform the obligations under this Plan by
      executing a written agreement. For all purposes under this Plan, the term
“Company” shall include any successor to the Company’s business and/or assets
      which executes and delivers the assumption agreement described in this
      subsection or which becomes bound by the terms of this Plan by operations of
      law.

    

    2. Participant’s
      Successors.
      All
      rights of the Participant hereunder shall inure to the benefit of, and be
      enforceable by, the Participant’s personal or legal representatives, executors,
      administrators, successors, heirs, distributes, devisees, and legatees.

    

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    ARTICLE IX

    

    DURATION,
      AMENDMENT, AND TERMINATION

    

    1.
       Duration.
      This
      Plan shall terminate on April 1, 2013, unless, (a) this Plan is extended by
      the
      Board, (b) a Change of Control occurs prior to April 1, 2013 or (c) the Board
      terminates this Plan in accordance with Article IX.2 below. If a Change of
      Control occurs prior to termination of this Plan pursuant to the preceding
      sentence, then this Plan shall terminate upon the date that all obligations
      of
      the Company hereunder have been satisfied. A termination of this Plan pursuant
      to the preceding sentences shall be effective for all purposes, except that
      such
      termination shall not affect the payment or provision of compensation or
      benefits earned by a Participant prior to the termination of this
      Plan.

     

    2. Amendment
      and Termination.
      The
      Board shall have the discretionary authority to amend this Plan in any respect,
      including as to the removal or addition of Participants, by resolution adopted
      by a majority of the Board, unless a Change of Control has previously occurred.
      This Plan may be terminated by resolution adopted by a majority of the Board,
      unless a Change of Control has previously occurred. If a Change of Control
      occurs, this Plan and the designation of Participants thereto shall no longer
      be
      subject to amendment, change, substitution, deletion, revocation or termination
      in any respect whatsoever without the prior written consent of each Participant
      to whom such action applies.

    

    ARTICLE
      X

    

    ADMINISTRATION

    

    1. Power
      and Authority.
      The Plan Administrator has all power and authority necessary or convenient
      to
      administer this Plan, including, but not limited to, the exclusive authority
      and
      discretion: (a) to construe and interpret this Plan; (b) to decide all
      questions of eligibility for and the amount of benefits under this Plan;
      (c) to prescribe procedures to be followed and the forms to be used by the
      Participants pursuant to this Plan; and (d) to request and receive from all
      Participants such information as the Plan Administrator determines is necessary
      for the proper administration of this Plan.

    

    2. Section
      409A.
      The
      Company intends that this Plan not contain nonqualified deferred compensation
      subject to the requirements of Section 409A of the Code. Accordingly, this
      Plan
      will be interpreted, operated, and administered by the Company to the extent
      the
      Company deems necessary to carry out such intention and to avoid the imposition
      of any additional tax or income recognition pursuant to Section 409A, including
      any temporary or final Treasury regulations and guidance promulgated
      thereunder.

    

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    ARTICLE XI

    

    CLAIMS
      PROCESS

    

    1. Claim
      for Benefits.
      A
      Participant (or any individual authorized by such Participant) has the right
      under ERISA and this Plan to file a written claim for benefits. To file a claim,
      the Participant must send the written claim to the Company's Vice President,
      Human Resources. If
      such
      claim is denied in whole or in part, the Participant shall receive written
      notice of the decision of the Company's Vice President, Human Resources, within
      90 days after the claim is received. Such written notice shall include the
      following information: (i) specific reasons for the denial;
      (ii) specific reference to pertinent Plan provisions on which the denial is
      based; (iii) a description of any additional material or information
      necessary for the perfection of the claim and an explanation of why it is
      needed; and (iv) steps to be taken if the Participant wishes to appeal the
      denial of the claim, including a statement of the Participant's right to bring
      a
      civil action under Section 502(a) of ERISA upon an adverse decision on
      appeal. If the Company's Vice President, Human Resources, needs more than 90
      days to make a decision, he or she shall notify the Participant in writing
      within the initial 90 days and explain why more time is required, and how long
      is needed. If a Participant (or any individual authorized by such Participant)
      submits a claim according to the procedures above and does not hear from the
      Company's Vice President, Human Resources, within the appropriate time, the
      Participant may consider the claim denied.

    

    2. Appeals.
      The
      following appeal procedures give the rules for appealing a denied claim. If
      a
      claim for benefits is denied, in whole or in part, or if the Participant
      believes benefits under this Plan have not been properly provided, the
      Participant (or any individual authorized by such Participant) may appeal this
      denial in writing within 60 days after the denial is received. The Plan
      Administrator shall conduct a review and make a final decision within 60 days
      after receiving the Participant's written request for review. If the Plan
      Administrator needs more than 60 days to make a decision, it shall notify the
      Participant in writing within the initial 60 days and explain why more time
      is
      required. The Plan Administrator may then take 60 more days to make a decision.
      If such appeal is denied in whole or in part, the decision shall be in writing
      and shall include the following information: (i) specific reasons for the
      denial; (ii) specific reference to pertinent Plan provisions on which the
      denial is based; (iii) a statement of the Participant's right to access and
      receive copies, upon request and free of charge, of all documents and other
      information relevant to such claim for benefits; and (iv) a statement of
      the Participant's (or representative's) right to bring a civil action under
      Section 502(a) of ERISA. If the Plan Administrator does not respond within
      the applicable time frame, the Participant may consider the appeal denied.
      If a
      Participant (or any individual authorized by such Participant) submits a written
      request to appeal a denied claim, the Participant has the right to review
      pertinent Plan documents and to send a written statement of the issues and
      any
      other documents to support the claim. 

    

    3. Limitations
      Period.
      A
      Participant must pursue the claim and appeal rights described above before
      seeking any other legal recourse regarding a claim for benefits. The Participant
      may thereafter file an action in a court of competent jurisdiction, but he
      or
      she must do so within 180 days after the date of the notice of decision on
      appeal or such action will be forever barred.

    

    ARTICLE
      XII

    

    NOTICES
      AND ASSIGNMENT

    

    1. General.
      Notices
      and all other communications contemplated by this Plan shall be in writing
      and
      shall be deemed to have been duly given when personally delivered or when mailed
      by U.S. registered or certified mail, return receipt requested and postage
      prepaid. In the case of the Participant, mailed notices shall be addressed
      to
      him or her at the home address which he or she most recently communicated to
      the
      Company in writing. In the case of the Company, mailed notices shall be
      addressed to its corporate headquarters, and all notices shall be directed
      to
      the attention of its Vice President, Human Resources.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    
      
        2.
          Notice of Termination by the Company. Any termination by the Company of
          the Participant’s employment at any time within the period following a Change of
          Control that is equal to the same number of months as set forth in the
          Participant's COBRA Premiums Continuation Period shall be communicated
          by a
          notice of termination to the Participant at least five (5) days prior to
          the
          date of such termination (or at least thirty (30) days prior to the date
          of a
          termination by reason of the Participant's Disability). Such notice shall
          indicate the specific termination provision or provisions in this Plan
          relied
          upon (if any), shall set forth in reasonable detail the facts and circumstances
          claimed to provide a basis for termination under the provision or provisions
          so
          indicated, and shall specify the termination date.

      

    

    

    3. Notice
      by the Participant of Potential Involuntary Termination.
      In the
      event that the Participant (a) determines that circumstances constituting Good
      Reason have occurred at any time within the period following a Change of Control
      that is equal to the same number of months as set forth in the Participant's
      COBRA Premiums Continuation Period and (b) desires to terminate his employment
      with the Company for such Good Reason, the Participant shall give written notice
      to the Company of such circumstances which Participant believes constitute
      Good
      Reason and Participant's intent to terminate his employment. The notice shall
      be
      delivered by the Participant to the Company within ninety (90) calendar days
      following the date on which such circumstances constituting Good Reason
      occurred, shall indicate the specific provisions or provisions in this Plan
      upon
      which the Participant relied to make such determination and shall set forth
      in
      reasonable detail the facts and circumstances claimed to provide a basis for
      such determination. The failure by the Participant to include in the notice
      any
      fact or circumstance which contributes to a showing of Good Reason shall not
      waive any right of the Participant hereunder or preclude the Participant from
      asserting such fact or circumstance in enforcing his or her rights hereunder.
      Following the notice, the Company shall have thirty (30) calendar days to remedy
      the circumstances constituting Good Reason before giving effect to such
      Involuntary Termination for purposes of this Plan.

    

    4. Assignment
      by Company.
      The
      Company may assign its rights under this Plan to an affiliate, and an affiliate
      may assign its rights under this Plan to another affiliate of the Company or
      to
      the Company; provided, however, that no assignment shall be made if the net
      worth of the assignee is less than the net worth of the Company at the time
      of
      assignment; provided, further, that the Company shall guarantee all benefits
      payable hereunder. In the case of any such assignment, the term “Company” when
      used in this Plan shall mean the corporation that actually employs the
      Participant. 

    

    ARTICLE
      XIII

    

    MISCELLANEOUS

    

    1. Governing
      law, Jurisdiction and Venue.
      This
      Plan is intended to be, and shall be interpreted as, an unfunded employee
      welfare benefit plan (within the meaning of Section 3(1) of ERISA) for a select
      group of management or highly compensated employees (within the meaning of
      Section 2520.104-24 of Department of Labor Regulations) and it shall be enforced
      in accordance with ERISA. Any
      Participant or other person filing an action related to this Plan shall be
      subject to the jurisdiction and venue of the federal courts of the State of
      California.

    

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    2. Employment
      Status.
      Except
      as may be provided under any other agreement between a Participant and the
      Company, the employment of the Participant by the Company is “at will” and,
      prior to a Change of Control, may be terminated by either the Participant or
      the
      Company at any time, subject to applicable law. 

    

    3. Severability.
      In the
      event any provision of this Plan shall be held illegal or invalid for any
      reason, the illegality or invalidity shall not affect the remaining parts of
      this Plan, and this Plan shall be construed and enforced as if the illegal
      or
      invalid provision had not been included. Further, the captions of this Plan
      are
      not part of the provisions hereof and shall have no force and
      effect.

    

    4. Effect
      of Plan.
      This
      Plan, as amended, shall completely replace and supersede any prior version
      of
      this Plan and any other verbal or written document or communication concerning
      the Severance Benefits. In addition, Severance Benefits shall not be counted
      as
“compensation,” or any equivalent term, for purposes of determining benefits
      under other plans, programs or practices owing to the Participant from the
      Company, except to the extent expressly provided therein. Except as otherwise
      specifically provided for in this Plan, the Participant’s rights under all such
      agreements, plans, provisions, and practices continue to be subject to the
      respective terms and conditions thereof.

     

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

       

    

    GYMBOREE
      CORPORATION

     

    MANAGEMENT
      CHANGE OF CONTROL PLAN

    

    NOTICE
      OF PARTICIPATION

    

    To:

    Date:  ______,
      200_

     

    The
      Board
      has designated you as a Participant in the Plan, a copy of which is attached
      hereto. The terms and conditions of your participation in the Plan are as set
      forth in the Plan and herein. The terms defined in the Plan shall have the
      same
      defined meanings in this Notice of Participation. As a condition to receiving
      benefits under the Plan, you must sign a general waiver and release in the
      form
      provided by the Company. The variables relating to your Plan participation
      are
      as follows:

    

    
      	
              Severance
                Payment Percentage:

            	
              [100%,
                200%, 300%]

            
	
              COBRA
                Premiums Continuation Period:

            	
              [12,
                18 months]

            

    

    

    Golden
      Parachute Excise Tax:

    

    [Instead
      of the limitation set forth in Article V.1 of the Plan, the following provision
      shall apply: In
      the
      event that any payment or benefit provided for in the Plan, either alone or
      when
      aggregated with any other payments or benefits that you become entitled to
      or
      receive from the Company, or from any person whose actions result in a Change
      of
      Control of the Company or from any person affiliated with the Company or such
      persons (each a "Payment" and, collectively, the "Total Payments"), would (i)
      constitute a “parachute payment” within the meaning of Section 280G of the Code,
      and (ii) any portion of which would be subject to the excise tax imposed by
      Section 4999 of the Code or any similar or successor provision (the “Excise
      Tax”), then the Company shall pay an additional lump sum cash payment to you in
      an amount (the "Gross-Up Payment") such that the net amount retained by you
      from the Total Payments shall be as if the Excise Tax did not apply to you.
      The Gross-Up Payment, if any, shall be made by the Company to you within thirty
      (30) calendar days of the receipt of the written determination by the
      Accountants pursuant to Article V.1; provided,
      however,
      that
      the Gross-Up Payment shall in all events be paid by the end of your taxable
      year
      that immediately follows your taxable year in which the related Excise Tax
      on a Payment is remitted to the relevant taxing authorities.] 

     

    The
      Severance Payment is subject to forfeiture or repayment in certain cases if
      the
      Participant has violated the Company's code of ethics or code of conduct or
      the
      Participant's restrictive covenants with the Company.

     

    If
      you
      agree to participate in the Plan on these terms and conditions, please
      acknowledge your acceptance by signing below. Please return the signed copy
      of
      this Notice of Participation within ten (10) days of the date set forth above
      to:

     

    General
      Counsel

    The
      Gymboree Corporation

    500
      Howard Street

    San
      Francisco, California 94105

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Your
      failure to timely remit this signed Notice of Participation will result in
      your
      immediate removal from the Plan. Please retain a copy of this Notice of
      Participation, along with the Plan, for your records.

    

      
        	
                Date:

              	 	 	
                Signature:

              	 

      

    

     

    
      
        
        

      

      
        -2-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]