Document:

exv4w2

EXHIBIT 4.2

SUPPLEMENTAL INDENTURE NO. 4

by and between

HEALTH CARE REIT, INC.

and

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

As of November 16, 2010

SUPPLEMENTAL TO THE INDENTURE DATED AS OF MARCH 15, 2010

 

HEALTH CARE REIT, INC.

4.950% Senior Notes due 2021

 

 

     This SUPPLEMENTAL INDENTURE NO. 4 (this “Supplemental Indenture”) is made and entered into as
of November 16, 2010 between HEALTH CARE REIT, INC., a Delaware corporation (the “Company”), and
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association duly organized and
existing under the laws of the United States of America, as Trustee (the “Trustee”).

WITNESSETH THAT:

     WHEREAS, the Company and the Trustee have executed and delivered an Indenture, dated as of
March 15, 2010 (as amended, supplemented or otherwise modified from time to time, the “Base
Indenture” and, together with this Supplemental Indenture, as amended, supplemented or otherwise
modified from time to time, the “Indenture”) to provide for the future issuance of the Company’s
senior debt securities (the “Securities”) to be issued from time to time in one or more series; and

     WHEREAS, pursuant to the terms of the Base Indenture, the Company desires to provide for the
establishment of a series of its Securities, to be known as its 4.950% Senior Notes due 2021, the
form and substance of such Securities and the terms, provisions and conditions thereof to be set
forth as provided in the Indenture;

     NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:

ARTICLE 1

DEFINED TERMS

     Section 1.1 The following definitions supplement, and, to the extent inconsistent
with, replace the definitions in Section 101 of the Base Indenture:

     “Business Day” means any day other than a Saturday or Sunday or a day on which banking
institutions in the City of New York are required or authorized to close.

     “Capital Lease” means at any time any lease of property, real or personal, which, in
accordance with GAAP, would at such time be required to be capitalized on a balance sheet of the
lessee.

     “Capitalized Lease Obligations” means, as to any Person, the obligations of such Person to pay
rent or other amounts under a lease of (or other agreement conveying the right to use) real and/or
personal property which obligations are required to be classified and accounted for as a Capital
Lease on a balance sheet of such Person under GAAP.

     “Cash” means as to any Person, such Person’s cash and cash equivalents, as defined in
accordance with GAAP consistently applied.

     “DTC” means The Depository Trust Company located at 55 Water Street, 1SL, New York, New York,
10041-0099.

 

 

     “EBITDA” means for any period, with respect to the Company and its subsidiaries on a
consolidated basis, determined in accordance with GAAP, the sum of net income (or net loss) for
such period PLUS, the sum of all amounts treated as expenses for: (a) interest, (b) depreciation,
(c) amortization and (d) all accrued taxes on or measured by income to the extent included in the
determination of such net income (or net loss); provided, however, that net income (or net loss)
shall be computed without giving effect to extraordinary losses or gains.

     “Funded Indebtedness” means as of any date of determination thereof, (i) all Indebtedness of
any Person, determined in accordance with GAAP, which by its terms matures more than one year after
the date of calculation, and any such Indebtedness maturing within one year from such date which is
renewable or extendable at the option of the obligor to a date more than one year from such date,
and (ii) the current portion of all such Indebtedness.

     “GAAP” means generally accepted accounting principles.

     “Global Notes” has the meaning specified in Section 2.1(a) of this Supplemental Indenture.

     “Indebtedness” means, with respect to any Person, all: (a) liabilities or obligations, direct
and contingent, which in accordance with GAAP would be included in determining total liabilities as
shown on the liability side of a balance sheet of such Person at the date as of which Indebtedness
is to be determined, including, without limitation, contingent liabilities that in accordance with
such principles, would be set forth in a specific dollar amount on the liability side of such
balance sheet, and Capitalized Lease Obligations of such Person; (b) liabilities or obligations of
others for which such Person is directly or indirectly liable, by way of guaranty (whether by
direct guaranty, suretyship, discount, endorsement, take-or-pay agreement, agreement to purchase or
advance or keep in funds or other agreement having the effect of a guaranty) or otherwise; (c)
liabilities or obligations secured by Liens on any assets of such Person, whether or not such
liabilities or obligations shall have been assumed by it; and (d) liabilities or obligations of
such Person, direct or contingent, with respect to letters of credit issued for the account of such
Person and bankers acceptances created for such Person.

     “Interest Coverage” means as of the last day of any fiscal quarter, the quotient, expressed as
a percentage (which may be in excess of 100%), determined by dividing EBITDA by Interest Expense;
all of the foregoing calculated by reference to the immediately preceding four fiscal quarters of
the Company ending on such date of determination.

     “Interest Expense” means for any period, on a combined basis, the sum of all interest paid or
payable (excluding unamortized debt issuance costs) on all items of Indebtedness of the Company
outstanding at any time during such period.

     “Interest Payment Date” with respect to the Notes is defined in Section 101 of the Base
Indenture and Section 2.1(b) of this Supplemental Indenture.

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     “Lien” means any mortgage, deed of trust, pledge, security interest, encumbrance, lien, claim
or charge of any kind (including any agreement to give any of the foregoing), any conditional sale
or other title retention agreement, any lease in the nature of any of the foregoing, and the filing
of or agreement to give any financing statement under the Uniform Commercial Code of any
jurisdiction.

     “Make-Whole Amount” means, in connection with any optional redemption or accelerated payment
of any Notes, the excess, if any, of (i) the aggregate present value as of the date of such
redemption or accelerated payment of each dollar of principal being redeemed or paid and the amount
of interest (exclusive of interest accrued to the date of redemption or accelerated payment) that
would have been payable in respect of each such dollar if such redemption or accelerated payment
had not been made, determined by discounting, on a semi-annual basis, such principal and interest
at the Reinvestment Rate (determined on the third Business Day preceding the date such notice of
redemption is given or declaration of acceleration is made) from the respective dates on which such
principal and interest would have been payable if such redemption or accelerated payment had not
been made, over (ii) the aggregate principal amount of the Notes being redeemed or paid.

     “Notes” means the Company’s 4.950% Senior Notes due 2021, issued under the Indenture.

     “Regular Record Date” with respect to the Notes is defined in Section 101 of the Base
Indenture and Section 2.1(b) of this Supplemental Indenture.

     “Reinvestment Rate” means 0.35% plus the arithmetic mean of the yields under the respective
heading “Week Ending” published in the most recent Statistical Release under the caption “Treasury
Constant Maturities” for the maturity (rounded to the nearest month) corresponding to the remaining
life to maturity, as of the payment date of the principal being redeemed or paid. If no maturity
exactly corresponds to such maturity, yields for the two published maturities most closely
corresponding to such maturity shall be calculated pursuant to the immediately preceding sentence
and the Reinvestment Rate shall be interpolated or extrapolated from such yields on a straight-line
basis, rounding in each of such relevant periods to the nearest month. For the purpose of
calculating the Reinvestment Rate, the most recent Statistical Release published prior to the date
of determination of the Make-Whole Amount shall be used.

     “Senior Debt” means all Indebtedness other than Subordinated Debt.

     “Statistical Release” means that statistical release designated “H.15(519)” or any successor
publication that is published weekly by the Federal Reserve System and that establishes yields on
actively traded United States government securities adjusted to constant maturities, or, if such
statistical release is not published at the time of any determination under the Indenture, then
such other reasonably comparable index that shall be designated by the Company.

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     “Subordinated Debt” means any unsecured Indebtedness of the Company which is issued or assumed
pursuant to, or evidenced by, an indenture or other instrument which contains provisions for the
subordination of such other Indebtedness (to which appropriate reference shall be made in the
instruments evidencing such other Indebtedness if not contained therein) to the Notes (and, at the
option of the Company, if so provided, to other Indebtedness of the Company, either generally or as
specifically designated).

     “Subsidiary” means any corporation or other entity of which a majority of (i) the voting power
of the voting equity securities or (ii) the outstanding equity interests of which are owned,
directly or indirectly, by the Company or one or more other Subsidiaries of the Company. For the
purposes of this definition, “voting equity securities” means equity securities having voting power
for the election of directors or similar functionaries, whether at all times or only so long as no
senior class of security has such voting power by reason of any contingency.

     “Total Assets” means on any date, the consolidated total assets of the Company and its
Subsidiaries, as such amount would appear on a consolidated balance sheet of the Company prepared
as of such date in accordance with GAAP.

     “Total Unencumbered Assets” means on any date, net real estate investments (valued on a book
basis) of the Company and its Subsidiaries that are not subject to any Lien which secures
indebtedness for borrowed money of any of the Company and its Subsidiaries plus, without
duplication, loan loss reserves relating thereto, accumulated depreciation thereon plus Cash, as
all such amounts would appear on a consolidated balance sheet of the Company prepared as of such
date in accordance with GAAP; provided, however, that “Total Unencumbered Assets” does not include
net real estate investments under unconsolidated joint ventures of the Company and its
Subsidiaries.

     “Unsecured Debt” means Funded Indebtedness less Indebtedness secured by Liens on the property
or assets of the Company and its Subsidiaries.

ARTICLE 2

TERMS OF THE NOTES

     Section 2.1 Pursuant to Section 301 of the Indenture, the Notes shall have the
following terms and conditions:

     (a) Title; Aggregate Principal Amount; Form of Notes. The Notes shall be Registered
Securities under the Indenture and shall be known as the Company’s “4.950% Senior Notes due 2021.”
The Notes will be limited to an aggregate principal amount of $450,000,000, subject to the right of
the Company to reopen such series for issuances of additional securities of such series and except
(i) as provided in this Section and (ii) for Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Securities of the series
pursuant to Section 304, 305, 306, 906 or 1107 of the Indenture and except for any Securities
which, pursuant to Section 303 of the Indenture, are deemed never to have been authenticated and
delivered hereunder. The Notes (together with the Trustee’s certificate of authentication)

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shall be substantially in the form of Exhibit A hereto, which is hereby incorporated in and made a
part of this Supplemental Indenture.

     The Notes will be issued in the form of one or more registered global securities without
coupons (“Global Notes”) that will be deposited with, or on behalf of, The Depository Trust Company
(“DTC”), and registered in the name of DTC’s nominee, Cede & Co. Except under the circumstance
described below, the Notes will not be issuable in definitive form. Unless and until it is
exchanged in whole or in part for the individual notes represented thereby, a Global Note may not
be transferred except as a whole by DTC to a nominee of DTC or by a nominee of DTC to DTC or
another nominee of DTC or by DTC or any nominee of DTC to a successor depositary or any nominee of
such successor.

     So long as DTC or its nominee is the registered owner of a Global Note, DTC or such nominee,
as the case may be, will be considered the sole owner or holder of the Notes represented by such
Global Note for all purposes under this Supplemental Indenture. Except as described below, owners
of beneficial interest in Notes evidenced by a Global Note will not be entitled to have any of the
individual Notes represented by such Global Note registered in their names, will not receive or be
entitled to receive physical delivery of any such Notes in definitive form and will not be
considered the owners or holders thereof under the Indenture or this Supplemental Indenture.

     If DTC is at any time unwilling, unable or ineligible to continue as depositary and a
successor depositary is not appointed by the Company within 90 days, the Company will issue
individual Notes in exchange for the Global Note or Global Notes representing such Notes. In
addition, the Company may at any time and in its sole discretion, subject to certain limitations
set forth in the Indenture, determine not to have any of such Notes represented by one or more
Global Notes and, in such event, will issue individual Notes in exchange for the Global Note or
Global Notes representing the Notes. Individual Notes so issued will be issued in minimum
denominations of $2,000 and integral multiples of $1,000.

     (b) Interest and Interest Rate. The Notes will bear interest at a rate of 4.950% per
annum, from November 16, 2010 (or, in the case of Notes issued upon the reopening of this series of
Notes, from the date designated by the Company in connection with such reopening) or from the
immediately preceding Interest Payment Date to which interest has been paid or duly provided for,
payable semiannually in arrears on each January 15 and July 15, commencing July 15, 2011 (each of
which shall be an “Interest Payment Date”), to the Persons in whose names the Notes are registered
in the Security Register at the close of business on January 1 or July 1, as the case may be
(whether or not a Business Day), next preceding such Interest Payment Date (each, a “Regular Record
Date”).

     (c) Principal Repayment; Currency. The stated maturity of the Notes is January 15,
2021, provided, however, the Notes may be earlier redeemed at the option of the Company as provided
in paragraph (d) below. The principal of each Note payable on its maturity date shall be paid
against presentation and surrender thereof to Corporate Trust Operations of the Trustee, located at
111 Sanders Creek Parkway, East Syracuse, NY 13057, in such coin or currency of

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the United States of America as at the time of payment is legal tender for the payment of public or
private debts.

     (d) Redemption at the Option of the Company. The Notes will be subject to redemption
at any time at the option of the Company, in whole or in part, upon not less than 30 nor more than
60 days’ notice to each Holder of Notes to be redeemed at its address appearing in the Security
Register. If the Notes are redeemed more than 90 days prior to maturity, the redemption price will
equal the sum of (i) the principal amount of the Notes (or portion of such Notes) being redeemed,
plus accrued and unpaid interest thereon to but excluding the applicable Redemption Date, plus (ii)
the Make-Whole Amount, if any. If the Notes are redeemed 90 days or fewer prior to the maturity
date, the redemption price will equal the principal amount of the Notes (or portion of such Notes)
being redeemed plus accrued and unpaid interest thereon to but excluding the Redemption Date.

     (e) Notices. All notices and other communications hereunder shall be in writing and
shall be deemed to have been duly given if mailed or transmitted by facsimile. Notices to the
Company shall be directed to it at 4500 Dorr Street, Toledo, Ohio 43615, Attention: General
Counsel; notices to the Trustee shall be directed to it at The Bank of New York Mellon Trust
Company, N.A., 525 Vine St., Suite 900, Cincinnati, Ohio 45202, Attention: Corporate Trust
Administration, Re: Health Care REIT, Inc. 4.950% Senior Notes due 2021; or as to either party, at
such other address as shall be designated by such party in a written notice to the other party.

     (f) Global Note Legend. Each Global Note shall bear the following legend on the face
thereof:

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE
& CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY
OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

     (g) Applicability of Discharge, Defeasance and Covenant Defeasance Provisions. The
Discharge, Defeasance and Covenant Defeasance provisions in Article Thirteen of the Indenture will
apply to the Notes.

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ARTICLE 3

ADDITIONAL COVENANTS

     Section 3.1 Holders of the Notes shall have the benefit of the following covenants, in
addition to the covenants of the Company set forth in Articles Eight and Ten of the Indenture:

     (a) The Company will not pledge or otherwise subject to any Lien, any property or assets of
the Company or its Subsidiaries unless the Notes are secured by such pledge or Lien equally and
ratably with all other obligations secured thereby so long as such obligations shall be so secured;
provided, however, that such restriction shall not apply to the following:

     (i) Liens securing obligations that do not in the aggregate at any one time
outstanding exceed 40% of the sum of (i) the Total Assets of the Company and its
consolidated subsidiaries as of the end of the calendar year or quarter covered in the
Company’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be,
most recently filed with the Commission (or, if such filing is not permitted under the
Exchange Act, with the Trustee) prior to the incurrence of such additional Liens and (ii)
the purchase price of any real estate assets or mortgages receivable acquired, and the
amount of any securities offering proceeds received (to the extent that such proceeds were
not used to acquire real estate assets or mortgages receivable or used to reduce
Indebtedness), by the Company or any Subsidiary since the end of such calendar quarter,
including those proceeds obtained in connection with the incurrence of such additional
Liens;

     (ii) Pledges or deposits by the Company or its Subsidiaries under workers’
compensation laws, unemployment insurance laws, social security laws, or similar
legislation, or good faith deposits in connection with bids, tenders, contracts (other than
for the payment of Indebtedness of the Company or its Subsidiaries), or leases to which the
Company or any of its Subsidiaries is a party, or deposits to secure public or statutory
obligations of the Company or its Subsidiaries or deposits of cash or United States
Government Bonds to secure surety, appeal, performance or other similar bonds to which the
Company or any of its Subsidiaries is a party, or deposits as security for contested taxes
or import duties or for the payment of rent;

     (iii) Liens imposed by law, such as carriers’, warehousemen’s, materialmen’s and
mechanics’ liens, or Liens arising out of judgments or awards against the Company or any of
its Subsidiaries which the Company or such Subsidiary at the time shall be currently
prosecuting an appeal or proceeding for review;

     (iv) Liens for taxes not yet subject to penalties for non-payment and Liens for taxes
the payment of which is being contested in good faith and by appropriate proceedings;

     (v) Minor survey exceptions, minor encumbrances, easements or reservations of, or
rights of, others for rights of way, highways and railroad crossings, sewers, electric

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lines, telegraph and telephone lines and other similar purposes, or zoning or other
restrictions as to the use of real properties;

     (vi) Liens incidental to the conduct of the business of the Company or any Subsidiary
or to the ownership of their respective properties that were not incurred in connection with
Indebtedness of the Company or such Subsidiary, all of which Liens referred to in this
clause (vi) do not in the aggregate materially impair the value of the properties to which
they relate or materially impair their use in the operation of the business taken as a whole
of the Company and its Subsidiaries, and as to all of the foregoing referenced in clauses
(ii) through (vi), only to the extent arising and continuing in the ordinary course of
business;

     (vii) Purchase money Liens on property acquired or held by the Company or its
Subsidiaries in the ordinary course of business, securing Indebtedness incurred or assumed
for the purpose of financing all or any part of the cost of such property; provided,
however, that (A) any such Lien attaches concurrently with or within 20 days after the
acquisition thereof, (B) such Lien attaches solely to the property so acquired in such
transaction, (C) the principal amount of the Indebtedness secured thereby does not exceed
100% of the cost of such property and (D) the aggregate amount of all such Indebtedness on a
consolidated basis for the Company and its Subsidiaries shall not at any time exceed
$1,000,000;

     (viii) Liens existing on the Company’s balance sheet as of December 31, 2001; and

     (ix) Any extension, renewal or replacement (or successive extensions, renewals or
replacements), as a whole or in part, of any Lien referred to in the foregoing clauses (ii)
through (viii) inclusive; provided, however, that the amount of any and all obligations and
Indebtedness secured thereby shall not exceed the amount thereof so secured immediately
prior to the time of such extension, renewal or replacement and that such extension, renewal
or replacement shall be limited to all or a part of the property which secured the Lien so
extended, renewed or replaced (plus improvements on such property).

     (b) The Company will not create, assume, incur, or otherwise become liable in respect of, any
Indebtedness if the aggregate outstanding principal amount of Indebtedness of the Company and its
consolidated subsidiaries is, at the time of such creation, assumption or incurrence and after
giving effect thereto and to any concurrent transactions, greater than 60% of the sum of (i) the
Total Assets of the Company and its consolidated subsidiaries as of the end of the calendar year or
quarter covered in the Company’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as
the case may be, most recently filed with the Commission (or, if such filing is not permitted under
the Exchange Act, with the Trustee) prior to the incurrence of such additional Indebtedness and
(ii) the purchase price of any real estate assets or mortgages receivable acquired, and the amount
of any securities offering proceeds received (to the extent that such proceeds were not used to
acquire real estate assets or mortgages receivable or used to reduce Indebtedness), by the Company
or any Subsidiary since the end of such

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calendar quarter, including those proceeds obtained in connection with the incurrence of such
additional Indebtedness.

     (c) The Company will have or maintain, on a consolidated basis, as of the last day of each of
the Company’s fiscal quarters, Interest Coverage of not less than 150%.

     (d) The Company will maintain, as of the last day of each of the Company’s fiscal quarters
and at all times, Total Unencumbered Assets of not less than 150% of the aggregate outstanding
principal amount of the Unsecured Debt of the Company and its Subsidiaries on a consolidated basis.

     (e) For purposes of this Section 3, Indebtedness and Debt shall be deemed to be “incurred” by
the Company or a Subsidiary whenever the Company or such Subsidiary shall create, assume, guarantee
or otherwise become liable in respect thereof.

ARTICLE 4

ADDITIONAL EVENTS OF DEFAULT

     Section 4.1 For purposes of this Supplemental Indenture and the Notes, in addition to
the Events of Default set forth in Section 501 of the Indenture, each of the following also shall
constitute an “Event of Default:”

     (a) default in the payment of the principal of or any premium on the Notes at Maturity;

     (b) there shall occur a default under any bond, debenture, note or other evidence of
indebtedness of the Company, or under any mortgage, indenture or other instrument of the Company
(including a default with respect to Securities of any series other than that series) under which
there may be issued or by which there may be secured any indebtedness of the Company (or by any
Subsidiary, the repayment of which the Company has guaranteed or for which the Company is directly
responsible or liable as obligor or guarantor), whether such indebtedness now exists or shall
hereafter be created, which default shall constitute a failure to pay an aggregate principal amount
exceeding $10,000,000 of such indebtedness when due and payable after the expiration of any
applicable grace period with respect thereto and shall have resulted in such indebtedness in an
aggregate principal amount exceeding $10,000,000 becoming or being declared due and payable prior
to the date on which it would otherwise have become due and payable, without such indebtedness
having been discharged, or such acceleration having been rescinded or annulled, within a period of
10 days after there shall have been given, by first class mail, to the Company by the Trustee or to
the Company and the Trustee by the Holders of at least a majority in principal amount of the
Outstanding Notes a written notice specifying such default and requiring the Company to cause such
indebtedness to be discharged or cause such acceleration to be rescinded or annulled and stating
that such notice is a “Notice of Default” under the Indenture; and

     (c) the entry by a court of competent jurisdiction of one or more judgments, orders or
decrees against the Company or any of its Subsidiaries in an aggregate amount (excluding

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amounts covered by insurance) in excess of $10,000,000 and such judgments, orders or decrees
remain undischarged, unstayed and unsatisfied in an aggregate amount (excluding amounts covered by
insurance) in excess of $10,000,000 for a period of 30 consecutive days.

     Section 4.2 Notwithstanding any provisions to the contrary in the Indenture, upon the
acceleration of the Notes in accordance with Section 502 of the Indenture, the amount immediately
due and payable in respect of the Notes shall equal the Outstanding principal amount thereof, plus
accrued and unpaid interest, plus the Make-Whole Amount.

ARTICLE 5

EFFECTIVENESS

     Section 5.1 This Supplemental Indenture shall be effective for all purposes as of the
date and time this Supplemental Indenture has been executed and delivered by the Company and the
Trustee in accordance with Article Nine of the Indenture. As supplemented hereby, the Indenture is
hereby confirmed as being in full force and effect.

ARTICLE 6

NOTICE TO TRUSTEE

     Section 6.1 Notwithstanding anything to the contrary in the Indenture including,
without limitation, Section 1102 thereof, in connection with the redemption at the election of the
Company of less than all the Notes, the Company shall notify the Trustee of the establishment of a
Redemption Date and the principal amount of Notes to be redeemed at least 60 days prior to such
Redemption Date unless a shorter period shall be satisfactory to the Trustee.

ARTICLE 7

MISCELLANEOUS

     Section 7.1 In the event any provision of this Supplemental Indenture shall be held
invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate
or render unenforceable any other provision hereof or any provision of the Indenture.

     Section 7.2 To the extent that any terms of this Supplemental Indenture or the Notes
are inconsistent with the terms of the Indenture, the terms of this Supplemental Indenture or the
Notes shall govern and supersede such inconsistent terms.

     Section 7.3 This Supplemental Indenture shall be governed by and construed in
accordance with the laws of the State of New York.

     Section 7.4 This Supplemental Indenture may be executed in several counterparts, each
of which shall be an original and all of which shall constitute but one and the same instrument.

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     IN WITNESS WHEREOF, the Company and the Trustee have caused this Supplemental Indenture to be
executed in their respective corporate names as of the date first above written.

	 	 	 	 	 	 	 

	 	 	HEALTH CARE REIT, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ George L. Chapman
 

	 	 
	 

	 	Name:
	 	George L. Chapman	 	 
	 

	 	Title:
	 	Chairman of the Board, Chief Executive Officer and President	 	 
	 
	 	 	 	 	 	 
	 

	 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N. A., as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Christian J. Pastura
 

	 	 
	 

	 	Name:
	 	Christian J. Pastura	 	 
	 

	 	Title:
	 	Senior Associate	 	 

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EXHIBIT A

FORM OF NOTE

[Form of Face of Security]

HEALTH CARE REIT, INC.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

4.950% Senior Notes due 2021

			
	 	 	 
	CUSIP No. 42217K AU0
	 	$450,000,000

     Health Care REIT, Inc., a corporation duly organized and existing under the laws of the State
of Delaware (herein called the “Company,” which term includes any successor Person under the
Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or
registered assigns, the principal sum of Four Hundred Fifty Million Dollars on January 15, 2021,
and to pay interest thereon from November 16, 2010, or from the most recent Interest Payment Date
to which interest has been paid or duly provided for, semi-annually in arrears on January 15 and
July 15 in each year, commencing July 15, 2011 at the rate of 4.950% per annum, until the principal
hereof is paid or made available for payment. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, which shall be the January 1 or
July 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment
Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be
payable to the Holder on such Regular Record Date and may either be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the close of business
on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee,
notice whereof shall be given to Holders of Securities of this series not less than 10 days prior
to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the

A-1

 

Securities of this series may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in said Indenture.

     Payment of the principal of (and premium, if any) and any such interest on this Security will
be made at the office or agency of the Company maintained for that purpose in the City of New York,
New York, or elsewhere as provided in the Indenture, in such coin or currency of the United States
of America as at the time of payment is legal tender for payment of public and private debts;
provided, however, that at the option of the Company payment of interest may be made by check
mailed to the address of the Person entitled thereto as such address shall appear in the Security
Register.

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     No recourse under or upon any obligation, covenant or agreement contained in the Indenture or
in this Security, or because of any indebtedness evidenced hereby or thereby, shall be had against
any promoter, as such, or against any past, present or future shareholder, officer or director, as
such, of the Company or of any successor, either directly or through the Company or any successor,
under any rule of law, statute or constitutional provision or by the enforcement of any assessment
or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and
released by the acceptance of this Security by the Holder thereof and as part of the consideration
for the issue of the Securities of this series.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

     In Witness Whereof, the Company has caused this instrument to be duly executed under its
corporate seal.

	 	 	 	 	 	 	 

	 	 	HEALTH CARE REIT, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

CERTIFICATE OF AUTHENTICATION

Dated:                                        

     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

A-2

 

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N. A., as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

A-3

 

	 	 	 	 	 

[Form of Reverse of Security]

     1. General. This Security is one of a duly authorized issue of securities of the
Company (herein called the “Securities”), issued and to be issued in one or more series under an
Indenture, dated as of March 15, 2010 (as amended, supplemented or otherwise modified from time to
time, the “Base Indenture”), as supplemented by Supplemental Indenture No. 4, dated as of November
16, 2010, (as amended, supplemented or otherwise modified from time to time, the “Supplemental
Indenture” and the Base Indenture, as supplemented by such Supplemental Indenture, the
“Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A., as Trustee
(herein called the “Trustee,” which term includes any successor trustee under the Indenture), and
reference is hereby made to the Indenture for a statement of the respective rights, limitations of
rights, duties and immunities thereunder of the Company, the Trustee, the holders of Senior Debt
and the Holders of the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the series designated on the face hereof.

     2. Optional Redemption. The Securities of this series are subject to redemption upon
not less than 30 nor more than 60 days’ notice by mail, at any time or from time to time, as a
whole or in part, at the election of the Company. If the Securities are redeemed more than 90 days
prior to maturity, the redemption price will equal the sum of (i) the principal amount of the
Securities (or portion of such Securities) being redeemed, (ii) accrued and unpaid interest thereon
to but excluding the applicable Redemption Date and (iii) the Make-Whole Amount, if any. If the
Securities are redeemed 90 days or fewer prior to the maturity date, the redemption price will
equal the principal amount of the Securities (or portion of such Securities) being redeemed plus
accrued and unpaid interest thereon to but excluding the Redemption Date.

     In the event of redemption of this Security in part only, a new Security or Securities of this
series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder
hereof upon the cancellation hereof.

     3. Defeasance. The Indenture contains provisions for defeasance at any time of the
entire indebtedness of this Security or certain restrictive covenants and Events of Default with
respect to this Security, in each case upon compliance with certain conditions set forth in the
Indenture.

     4. Defaults and Remedies. If an Event of Default with respect to Securities of this
series shall occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the Indenture.

     5. Actions of Holders. The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and obligations of the Company
and the rights of the Holders of the Securities of each series to be affected under the Indenture
at any time by the Company and the Trustee with the consent of the Holders of a majority in
principal amount of the Securities at the time Outstanding of each series to be affected. The
Indenture also contains provisions permitting the Holders of specified percentages

A-4

 

in principal amount of the Securities of each series at the time Outstanding, on behalf of the
Holders of all Securities of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation
of such consent or waiver is made upon this Security.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than a majority in principal amount of the
Securities of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and offered the Trustee
reasonable indemnity, and the Trustee shall not have received from the Holders of a majority in
principal amount of Securities of this series at the time Outstanding a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60 days after receipt of
such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted
by the Holder of this Security for the enforcement of any payment of principal hereof or any
premium or interest hereon on or after the respective due dates expressed herein.

     6. Payments Not Impaired. No reference herein to the Indenture and no provision of
this Security or of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and any premium and interest on this Security
at the times, place and rate, and in the coin or currency, herein prescribed.

     7. Denominations, Transfer, Exchange. As provided in the Indenture and subject to
certain limitations therein set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the office or agency of
the Company in any place where the principal of and any premium and interest on this Security are
payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory
to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Securities of this series and of like tenor,
of authorized denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees.

     The Securities of this series are issuable only in registered form without coupons in minimum
denominations of $2,000 and any integral multiple of $1,000. As provided in the Indenture and
subject to certain limitations therein set forth, Securities of this series are exchangeable for a
like aggregate principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

A-5

 

     8. Persons Deemed Owners. Prior to due presentment of this Security for registration
of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Security is registered as the owner hereof for all purposes, whether or
not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be
affected by notice to the contrary.

     9. Defined Terms. All terms used in this Security which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.

     10. Governing Law. The Indenture and the Note shall be deemed to be a contract made
under the laws of the State of New York, and for all purposes shall be construed in accordance with
the laws of said state.

     11. CUSIP Number. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the
Securities as a convenience to the Holders of the Securities. No representation is made as to the
correctness or accuracy of such CUSIP numbers as printed on the Securities, and reliance may be
placed only on the other identification numbers printed hereon.

A-6

 

[ASSIGNMENT FORM]

ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to applicable laws or
regulations:

	 	 	 	 	 	 	 	 	 	 	 	 

	TEN COM —

	 	as tenants in common
	 	 	UNIF GIFT MIN ACT —
	 	 

	 	Custodian
	 	 

	TEN ENT —

	 	as tenants by the entireties
	 	 	 	 	(Cust)
	 	 	 	(Minor)
	JT TEN —

	 	as joint tenants with right of survivorship and not as tenants in common
	 	 	 	 	Under Uniform Gifts to Minors Act
	 

	 	 	 	 	 	                    	 	 	 	 
	 

	 	 	 	 	 	(State)	 	 	 	 

Additional abbreviations may also be used though not in the above list.

                    

FOR VALUE RECEIVED, the undersigned registered holder hereby sell(s), assign(s)

and transfer(s) unto

 

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

 

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE

the within security and all rights thereunder, hereby irrevocably constituting and appointing
                                                             Attorney to transfer said security on the books of the Company with full
power of substitution in the premises.

	 	 	 	 	 	 	 	 	 	 	 

	Dated:

	 	 	 	 	 	Signed:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	 	 	 	 	 	 	Notice: The signature to this assignment
must correspond with the name as it appears
upon the face of the within security in
every particular, without alteration or
enlargement or any change whatever.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Signature Guarantee*:                                                            	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	* Participant in a recognized Signature
Guarantee Medallion Program (or other
signature guarantor acceptable to the
Trustee).	 	 

A-7exv10w1

Exhibit 10.1

REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT, dated as of November 10, 2010 (this “Agreement”),
is made between Primo Water Corporation, a Delaware corporation (the “Company”), and
Culligan International Company, a Delaware corporation (“Culligan”). Certain capitalized
terms used in this Agreement are defined in Section 8. All other capitalized terms used in this
Agreement without definition shall have the meanings ascribed to such terms in the Purchase
Agreement (as defined below).

     A. On June 1, 2010, the Company, Culligan Store Solutions, LLC (“CSS”) and Culligan of
Canada, Ltd. entered into an Asset Purchase Agreement (the “Purchase Agreement”) pursuant
to which two of the Company’s subsidiaries agreed to acquire certain assets in exchange for cash
and Registrable Securities, all as more fully described in the Purchase Agreement.

     B. CSS has designated that the Registrable Securities to be issued to CSS pursuant to the
Purchase Agreement shall instead be issued directly to Culligan.

     C. Culligan and CSS have entered into the Lock-Up Agreement, restricting the resale of
Registrable Securities as therein provided.

     D. It is a condition to the Closing under the Purchase Agreement that this Agreement be
executed by the parties and delivered to Culligan on the Closing Date.

     Now, therefore, the parties hereto agree as follows:

     1. Registration of Registrable Securities.

     (a) Registration. The Company will use its commercially reasonable efforts to
register, in accordance with the provisions of this Agreement, all the Registrable Securities and
to have the Registration Statement declared effective within 181 days of the Closing Date. The
Company will pay all Registration Expenses incurred in connection with the Registration.

     (b) Postponement of Registration or Use of Registration Statement. The Company may
postpone for a reasonable period of time, not to exceed 30 days each time it exercises its rights
under this clause (b), (i) the filing of a prospectus or the effectiveness of the Registration
Statement or (ii) Culligan’s use of and ability to make sales pursuant to the Registration
Statement, if, in either such case, the Company furnishes to Culligan a certificate signed by the
Chief Executive Officer of the Company stating that the Company believes that either the
Registration or Culligan’s use of or making sales pursuant to the Registration Statement would be
reasonably likely to have a material adverse effect on any proposal or plan by the Company to
engage in any acquisition of stock or assets (other than in the ordinary course of business) or any
merger, amalgamation, consolidation, tender offer or similar transaction, or otherwise would
require disclosure of material nonpublic information that would not be in the best interests of the
Company and its shareholders; provided that the Company may not effect such a postponement
more than two times in any 12-month period. If the Company so postpones the filing of a prospectus
or the effectiveness of the Registration Statement, the Company will pay all Registration Expenses
incurred in connection with any such postponement.

     (c) Selection of Underwriters. If Culligan intends to distribute any or all of the
Registrable Securities by means of an underwritten offering, it will so advise the Company. In
such event, Culligan will have the right to select the investment banker(s) and manager(s) to
administer the offering, subject to the Company’s approval which will not be unreasonably withheld
or delayed.

 

 

     2. Registration Procedures. The Company will use its commercially reasonable efforts
to effect the registration and sale of the Registrable Securities in accordance with Culligan’s
intended method of disposition thereof. Without limiting the generality of the foregoing, the
Company will:

     (a) prepare and file the Registration Statement with the Commission, make all required filings
with FINRA and thereafter use its commercially reasonable efforts to cause the Registration
Statement to become effective within 181 days after the Closing Date; provided that
(i) before filing the Registration Statement or any amendments or supplements thereto, the
Company will furnish to one firm of counsel selected by Culligan copies of all such documents
proposed to be filed; (ii) unless such counsel earlier informs the Company that it has no
objections to the filing of such Registration Statement, amendment or supplement, the Company will
not file such Registration Statement, amendment or supplement prior to the date that is two
Business Days from the date that such counsel received such document; and (iii) the Company
will not file any Registration Statement or amendment or post-effective amendment or supplement to
such Registration Statement if such counsel has reasonably objected in writing on the grounds that
(and explaining why) such amendment or supplement does not comply in all material respects with the
requirements of the Securities Act or of the rules or regulations thereunder;

     (b) prepare and file with the Commission such amendments and supplements to the Registration
Statement and such free writing prospectuses under Rule 433 (each, a “Free Writing
Prospectus”) as may be necessary to keep the Registration Statement effective until the
earliest of (i) three years from the Closing Date, (ii) such time as (A)
Culligan owns less than 5% of the Company’s outstanding common stock, $0.01 par value per share
(“Common Stock”), and (B) all of the Registrable Securities held by Culligan at
such time could be sold without restriction in a single transaction under Rule 144, and
(iii) such time as all of the Registrable Securities have been disposed of by Culligan in
accordance with the intended methods of disposition set forth in the Registration Statement (but in
any event not before the expiration of any longer period required under the Securities Act);
provided that, at any time after the Company becomes eligible to register Common Stock on
Form S-3, the Company shall, if either (1) so requested by Culligan or (2) the
Company so chooses, convert the then effective Registration Statement into a shelf Registration
Statement on Form S-3 so as to enable Culligan to sell its Common Stock pursuant thereto from time
to time in accordance with Rule 415;

     (c) comply with the provisions of the Securities Act with respect to the disposition of the
Registrable Securities until such time as all of the Registrable Securities have been disposed of
by Culligan in accordance with the intended methods of disposition set forth in such Registration
Statement;

     (d) furnish to Culligan such number of copies, without charge, of the Registration Statement,
each amendment and supplement thereto, including each preliminary prospectus, final prospectus, any
Free Writing Prospectus, all exhibits and other documents filed therewith and such other documents
as Culligan may reasonably request in order to facilitate the disposition of the Registrable
Securities;

     (e) use its commercially reasonable efforts to register or qualify the Registrable Securities
under such other securities or blue sky laws of such United States jurisdictions as Culligan
reasonably requests and do any and all other acts and things that may be reasonably necessary or
reasonably advisable to enable Culligan to consummate the disposition in such jurisdictions of the
Registrable Securities; provided that the Company will not be required to (i)
qualify generally to do business in any jurisdiction where it would not otherwise be required to
qualify but for this subsection, (ii) subject itself to taxation in any such jurisdiction
or (iii) consent to general service of process in any such jurisdiction;

     (f) use its commercially reasonable efforts to cause the Registrable Securities to be
registered with or approved by such other United States governmental agencies, authorities or
self-regulatory bodies as may be necessary or reasonably advisable in light of the business and
operations of

2

 

the Company to enable Culligan to consummate the disposition of such Registrable Securities in
accordance with the intended method or methods of disposition thereof;

     (g) promptly notify Culligan, at any time when a prospectus relating to the Registration
Statement is required to be delivered under the Securities Act, upon discovery that, or upon the
discovery of the happening of any event as a result of which, the prospectus contains an untrue
statement of a material fact or omits any fact necessary to make the statements therein not
misleading in the light of the circumstances under which they were made, and, as promptly as
practicable but subject to Section 1(b) hereof, prepare and furnish to Culligan a reasonable number
of copies of a supplement or amendment to such prospectus so that, as thereafter delivered to the
purchasers of such Registrable Securities, such prospectus will not contain an untrue statement of
a material fact or omit to state any fact necessary to make the statements therein not misleading
in the light of the circumstances under which they were made;

     (h) promptly notify Culligan (i) when the prospectus or any prospectus supplement or
post-effective amendment or any Free Writing Prospectus has been filed and, with respect to the
Registration Statement or any post-effective amendment, when the same has become effective,
(ii) of any request by the Commission for amendments or supplements to the Registration
Statement or to amend or to supplement such prospectus or for additional information, and
(iii) of the issuance by the Commission of any stop order suspending the effectiveness of
the Registration Statement or the initiation of any proceedings for any of such purposes;

     (i) use its commercially reasonable efforts to cause the Registrable Securities to be listed,
within 181 days after the Closing Date, on each securities exchange or automated quotation system
on which shares of Common Stock are then listed;

     (j) provide a transfer agent and registrar for the Registrable Securities not later than the
effective date of, or date of the final receipt issued for, the Registration Statement;

     (k) enter into such customary agreements (including underwriting agreements with customary
provisions) on terms reasonably satisfactory to the Company and take all such other actions as
Culligan or the underwriters, if any, reasonably request in order to facilitate the disposition of
the Registrable Securities;

     (l) upon reasonable advance notice by Culligan, make available for inspection by Culligan, any
underwriter participating in any disposition pursuant to the Registration Statement and any
attorney, accountant or other agent retained by Culligan or any such underwriter, all relevant
financial and other records, pertinent corporate documents and documents relating to the business
of the Company, and cause the Company’s officers, directors, employees and independent accountants
to supply all information reasonably requested by any such seller, underwriter, attorney,
accountant or agent in connection with the Registration Statement; provided that Culligan
will, and will cause each such underwriter, accountant or other agent to, (i) enter into a
confidentiality agreement in form and substance reasonably satisfactory to the Company and
(ii) minimize the disruption to the Company’s business in connection with the foregoing;

     (m) otherwise use its commercially reasonable efforts to comply with all applicable rules and
regulations of the Commission, and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering the period of at least twelve months beginning with the
first day of the Company’s first full calendar quarter after the effective date of the Registration
Statement, which earnings statement will satisfy the provisions of Section 11(a) of the Securities
Act and Rule 158 thereunder;

3

 

     (n) in the event of the issuance of any stop order suspending the effectiveness of the
Registration Statement, or of any order suspending or preventing the use of any related prospectus
or ceasing trading of any securities included in the Registration Statement for sale in any
jurisdiction, subject to Section 1(b) hereof, use its commercially reasonable efforts promptly to
obtain the withdrawal of such order;

     (o) enter into such agreements and take such other actions as Culligan or the underwriters, if
any, reasonably request in order to facilitate the disposition of the Registrable Securities,
including, without limitation, preparing for and participating in such number of “road shows” and
such other customary selling efforts as the underwriters reasonably request in order to facilitate
such disposition; provided that, for any underwritten public offering, (i) Culligan
shall provide the Company with at least 10 Business Days notice prior to any such “road show”,
(ii) the Company shall not be obligated to participate in any “road show” that extends more
than 4 Business Days and (iii) the Company shall have no obligation to participate in more
than two “road shows”.

     (p) for so long as Culligan holds at least 10% of the Company’s outstanding Common Stock or if
such registration includes an underwritten public offering, upon reasonable notice, obtain one or
more comfort letters addressed to Culligan dated the effective date of the Registration Statement,
each amendment and supplement thereto (and if such registration includes an underwritten public
offering, dated the date of the underwriting agreement for such offering and the date of the
closing under the underwriting agreement for such offering), signed by the Company’s independent
public accountants in customary form and covering such matters of the type customarily covered by
comfort letters;

     (q) for so long as Culligan holds at least 10% of the Company’s outstanding Common Stock or if
such registration includes an underwritten public offering, upon reasonable notice, provide legal
opinions of the Company’s outside counsel addressed to Culligated dated the effective date of the
Registration Statement, each amendment and supplement thereto (and if such registration includes an
underwritten public offering, dated the date of the closing under the underwriting agreement for
such offering), with respect to the Registration Statement, each amendment and supplement thereto
(including the preliminary prospectus) and such other documents relating thereto in customary form
and covering such matters of the type customarily covered by legal opinions of such nature;

     (r) furnish to Culligan such information and assistance as Culligan may reasonably request in
connection with any “due diligence” effort which Culligan may reasonably deem appropriate, provided
that Culligan shall enter into a confidentiality agreement in form and substance reasonably
satisfactory to the Company; and

     (s) use its commercially reasonable efforts to take or cause to be taken all other actions,
and do and cause to be done all other things, necessary or reasonably advisable in the opinion of
Culligan to effect the registration of the Registrable Securities contemplated hereby.

The Company agrees not to file or make any amendment to the Registration Statement, or any
amendment of or supplement to the prospectus or any Free Writing Prospectus used in connection
therewith, that refers to Culligan as a selling stockholder without the consent of Culligan, such
consent not to be unreasonably withheld or delayed, unless and to the extent such disclosure is
required by law.

The Company may require Culligan to furnish the Company with such information regarding Culligan
and pertinent to the disclosure requirements relating to the registration and the distribution of
such securities as the Company may from time to time reasonably request in writing.

4

 

     3. Shelf Take-Downs. At any time after the Registration Statement is converted into a
shelf Registration Statement pursuant to the proviso in Section 2(b), if Culligan delivers a
notice to the Company (a “Take-Down Notice”) stating that it intends to effect a
disposition of all or part of the Registrable Securities (a “Shelf Disposition”) and
stating the number of the Registrable Securities to be included in the Shelf Disposition, then the
Company shall amend or supplement the shelf Registration Statement or related prospectus as may be
necessary in order to enable such Registrable Securities to be disposed of pursuant to the Shelf
Disposition, provided that Culligan shall not be entitled to deliver (i) an
aggregate of more than three Take-Down Notices in any twelve month period, (ii) any
Take-Down Notice within 30 days after the effective date of any registration statement of the
Company hereunder, or (iii) any Take-Down Notice unless it relates to the anticipated sale
of Registrable Securities with a market value of at least $5.0 million (based upon the market value
of the Company’s Common Stock on the date of the delivery of such Take-Down Notice).

     4. Registration Expenses. All expenses incidental to the Company’s performance of or
compliance with this Agreement, including, without limitation, all registration and filing fees,
fees and expenses of compliance with United States securities or blue sky laws, word processing,
duplicating and printing expenses, messenger and delivery expenses, and fees and disbursements of
counsel for the Company and all independent certified public accountants, underwriters and other
Persons retained by the Company in accordance with this Agreement, and all of the Company’s
internal expenses (including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties), the expenses of any annual audit or quarterly
review, the expenses of any liability insurance and the expenses and fees for listing the
securities to be registered on each securities exchange on which similar securities issued by the
Company are then listed or on the NASDAQ (all such expenses, “Registration Expenses”), will
be borne by the Company; provided that (i) all Selling Expenses and (ii) fees and
disbursements of counsel for Culligan will be borne by Culligan. Notwithstanding the foregoing,
the Company shall bear all of the expenses incurred in connection with the first request by
Culligan (other than in connection with an underwritten public offering) pursuant to Section 2(p)
and Section 2(q) for a comfort letter addressed to Culligan and a legal opinion of the Company’s
outside counsel addressed to Culligan, respectively, with the expenses for each subsequent comfort
letter or legal opinion (other than in connection with an underwritten public offering) to be borne
50% by the Company and 50% by Culligan.

     5. Indemnification.

     (a) The Company agrees to indemnify and hold harmless, and hereby does indemnify and hold
harmless, Culligan, its affiliates and their respective officers, directors and partners and each
Person who directly or indirectly controls Culligan (within the meaning of the Securities Act)
(each, a “Culligan Indemnitee”) against, and pay and reimburse such Culligan Indemnitee for
any losses, claims, damages, liabilities, joint or several, or actions or proceedings, whether
commenced or threatened, in respect thereof, (collectively, “Losses”) to which such
Culligan Indemnitee may become subject under the Securities Act or otherwise, insofar as such
Losses arise out of or are based upon (i) any untrue or alleged untrue statement of
material fact contained in any Registration Statement, prospectus, preliminary prospectus or Free
Writing Prospectus or any amendment thereof or supplement thereto, (ii) any omission or
alleged omission of a material fact required to be stated therein or necessary to make the
statements therein not misleading, or (iii) any violation by the Company of any rule or
regulation promulgated under the Securities Act or any state securities laws applicable to the
Company and relating to action or inaction required of the Company in connection with the
Registration, and the Company will pay and reimburse each such Culligan Indemnitee for any legal or
any other expenses actually and reasonably incurred by them in connection with investigating,
defending or settling any such Losses, provided that the Company will not be liable in any
such case to the extent that any such Losses or expenses arise out of (i) or are based upon an
untrue statement or alleged untrue statement, or omission or alleged omission, made in such
Registration Statement, any such prospectus, preliminary prospectus or Free Writing Prospectus or

5

 

any amendment or supplement thereto, or in any application, in reliance upon, and in
conformity with, written information prepared and furnished to the Company by Culligan expressly
for use therein or (ii) facts or circumstances that resulted in a breach of any representation or
warranty of Culligan, CSS or Culligan of Canada Ltd. in the Purchase Agreement or any document or
certificate delivered pursuant thereto (without regard to any baskets, caps, survival periods or
other limitations on the Company’s (or its subsidiaries’) ability to make an indemnification claim
with respect to any such breach under the Purchase Agreement. In connection with an underwritten
offering, the Company, if requested, will indemnify such underwriters, their officers and directors
and each Person who controls such underwriters (within the meaning of the Securities Act) to the
same extent as provided above with respect to the indemnification of the Culligan Indemnitees.

     (b) Culligan will furnish to the Company in writing such information with respect to itself as
the Company reasonably requests for use in connection with any such Registration Statement or
prospectus and, will indemnify and hold harmless the Company, its directors and officers, and each
other Person who controls the Company (within the meaning of the Securities Act but excluding any
Culligan Indemnitee to the extent it may be deemed to control the Company) (each, a “Company
Indemnitee”) against any Losses to which any such Company Indemnitee may become subject under
the Securities Act or otherwise, insofar as such Losses arise out of or are based upon (i)
any untrue or alleged untrue statement of material fact contained in the Registration Statement,
prospectus, preliminary prospectus or Free Writing Prospectus or any amendment thereof or
supplement thereto or in any application or (ii) any omission or alleged omission of a
material fact required to be stated therein or necessary to make the statements therein not
misleading, but, in each case, only to the extent that such untrue statement or omission is made in
such Registration Statement, any such prospectus, preliminary prospectus or Free Writing Prospectus
or any amendment or supplement thereto, or in any application, in reliance upon and in conformity
with written information prepared and furnished to the Company by Culligan expressly for use
therein, and Culligan will reimburse the Company and each such Company Indemnitee for any legal or
any other expenses actually and reasonably incurred by it in connection with investigating,
defending or settling any such Loss; provided that the obligation to indemnify and hold
harmless will be limited in the aggregate to the net amount of proceeds received by Culligan from
the sale of Registrable Securities pursuant to the Registration Statement.

     (c) Any Person entitled to indemnification hereunder will (i) give prompt written
notice to the indemnifying party of any claim with respect to which it seeks indemnification and
(ii) unless in such indemnified party’s reasonable judgment a conflict of interest between
such indemnified and indemnifying parties may exist with respect to such claim, permit such
indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the
indemnified party. If such defense is assumed, the indemnifying party will not be subject to any
liability for any settlement made by the indemnified party without its consent (but such consent
will not be unreasonably withheld). An indemnifying party who is not entitled to, or elects not
to, assume the defense of a claim will not be obligated to pay the fees and expenses of more than
one counsel for all parties indemnified by such indemnifying party with respect to such claim (to
the extent such fees and expenses are otherwise indemnifiable hereunder), unless in the reasonable
judgment of any indemnified party a conflict of interest may exist between such indemnified party
and any other of such indemnified parties with respect to such claim.

     (d) The indemnification provided for under this Agreement will remain in full force and effect
regardless of any investigation made by or on behalf of the indemnified party or any officer,
director or controlling Person of such indemnified party and will survive the registration and sale
of any securities by any Person entitled to any indemnification hereunder and the expiration or
termination of this Agreement.

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     (e) If the indemnification provided for in this Section 5 is unavailable or insufficient for
any reason whatsoever to hold harmless an indemnified party with respect to any Losses or expenses
referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party
thereunder, will contribute to the amount paid or payable by such indemnified party as a result of
such Losses or expenses in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the indemnified party on the other hand in connection
with the statements or omissions which resulted in such loss, liability, claim, damage or expense
as well as any other relevant equitable considerations. The relevant fault of the indemnifying
party and the indemnified party will be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission to state a material fact
relates to information supplied by the indemnifying party or by the indemnified party and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. Notwithstanding the foregoing, the amount Culligan will be obligated to
contribute pursuant to this Section 5(e) will be limited to the net amount of proceeds received by
Culligan from the sale of Registrable Securities pursuant to the Registration Statement (less the
aggregate amount of any damages which Culligan has otherwise been required to pay in respect of
such Losses or any substantially similar Losses arising from the sale of such Registrable
Securities).

     6. Ticking Fee.

     (a) If either (i) the Registration Statement is not effective on the date which is 181
days after the Closing Date (the “Target Effective Date”) or (ii) the Registrable
Securities are not listed on the securities exchanges provided for in Section 2(i) on the Target
Effective Date, the Company agrees to pay to Culligan the Ticking Fee, during the period from and
including the Target Effective Date to and including the date on which both the Registration
Statement is effective and the Registrable Securities are so listed (the “Ticking Period”).
Any such Ticking Fee shall accrue daily and be payable on the first business day of each month
during the Ticking Period and on the effective date of the Registration Statement. No Ticking Fee
shall accrue or be payable (A) during any extension of the 180-day initial Lock-Up Period
(as such term is used in the Lock-Up Agreement) pursuant to the terms of the Lock-Up Agreement or
(B) to the extent that the Registration Statement is not effective due to Culligan’s
(1) failure to furnish the Company information regarding itself as a selling shareholder ,
the Registrable Securities held by it or its intended method of distribution thereof or (2)
breach of any of its covenants or agreements contained hereunder.

     (b) Culligan agrees that, upon receipt of any notice from the Company of the happening of any
event of the kind described in Section 1(b) or 2(g), Culligan will forthwith discontinue the
disposition of its Registrable Securities pursuant to the Registration Statement until Culligan
receives copies of a supplemented or amended prospectus as contemplated by such section. In the
event the Company gives any such notice, (i) the applicable time period mentioned in
Section 2(b) during which the Registration Statement is to remain effective will be extended by the
number of days during the period from and including the date of the giving of such notice pursuant
to this Section 6(b) to and including the date when Culligan will have received the copies of the
supplemented or amended prospectus contemplated by Section 2(g) and (ii) the Company shall
pay to Culligan the Ticking Fee during the period described in clause (i) of this sentence.

     7. Term. This Agreement will be effective as of the Closing Date and will continue in
effect, subject to the terms of Section 5, thereafter until the earliest of (a) its
termination by the consent of the parties hereto or their respective successors in interest,
(b) the date on which the Company is no longer required to keep the Registration Statement
effective pursuant to Section 2(b) and (c) the dissolution, liquidation or winding up of
the Company.

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     8. Defined Terms. Capitalized terms when used in this Agreement have the following
meanings:

“Commission” means the Securities and Exchange Commission or any other federal
agency administering the Securities Act.

“Closing” has the meaning given to such term in the Purchase Agreement.

“Closing Date” has the meaning given to such term in the Purchase Agreement.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any similar
federal statute and the rules and regulations thereunder, as in effect from time to time.

“IPO” has the meaning given to such term in the Purchase Agreement.

“Lock-Up Agreement” has the meaning given to such term in the Purchase Agreement.

“Person” means an individual, a partnership, a joint venture, a corporation, a
limited liability company, a trust, an unincorporated organization or a government or
department or agency thereof.

“Registrable Securities” means (i) any equity securities of the Company
issued to Culligan as consideration under the Purchase Agreement, and (ii) any
equity securities issued or issuable directly or indirectly with respect to the securities
referred to in the foregoing clause (i) by way of conversion or exchange thereof or
share dividend or share split or in connection with a combination of shares,
recapitalization, reclassification, merger, amalgamation, arrangement, consolidation or
other reorganization. As to any particular securities constituting Registrable Securities,
such securities will cease to be Registrable Securities when (x) they have been
effectively registered or qualified for sale by prospectus filed under the Securities Act
and disposed of in accordance with the Registration Statement, or (y) they are no
longer owned by Culligan.

“Register,” “registered” and “registration” refers to a registration
effected by preparing and filing a Registration Statement in compliance with the Securities
Act, and the declaration or ordering of the effectiveness of such Registration Statement,
and compliance with applicable state securities laws of such states in which Culligan
notifies the Company of its intention to offer Registrable Securities.

“Registration” means the registration of Registrable Securities required by Section
1.

“Registration Expenses” has the meaning set forth in Section 4(a).

“Registration Statement” means the prospectus and other documents filed with the
Commission to effect the Registration under the Securities Act.

“Rule 144” means Rule 144 under the Securities Act or any successor or similar rule
as may be enacted by the Commission from time to time, as in effect from time to time.

“Rule 415” means Rule 415 under the Securities Act or any successor or similar rule
as may be enacted by the Commission from time to time, as in effect from time to time.

8

 

“Securities Act” means the Securities Act of 1933, as amended, or any similar
federal statute and the rules and regulations thereunder, as in effect from time to time.

“Selling Expenses” means all underwriting discounts, selling commissions and
transfer taxes applicable to the sale of Registrable Securities hereunder.

“Shelf Disposition” has the meaning set forth in Section 3.

“Take-Down Notice” has the meaning set forth in Section 3.

“Ticking Fee” means a fee, payable pursuant to Section 6, which shall accrue daily
at the variable rate equal to Culligan’s cost of capital at the time such Ticking Fee is
incurred (not to exceed 12.0% per annum), and be applied to the value of the Registrable
Securities held by Culligan at such time, with such value to be determined by multiplying
the number of Registrable Securities held by Culligan by the price per share at which shares
of Common Stock were first offered to the public in the IPO; provided,
however, that during any period of time with respect to which the Company has
exercised its rights under Section 1(b) the Ticking Fee shall accrue daily at the rate of
9.0% per annum.

     9. Miscellaneous.

     (a) No Inconsistent Agreements. The Company will not hereafter enter into any
agreement with respect to its securities which is inconsistent with or violates the rights granted
to Culligan in this Agreement.

     (b) Remedies. The parties hereto agree and acknowledge that money damages may not be
an adequate remedy for any breach of the provisions of this Agreement and that any party hereto
will have the right to injunctive relief, in addition to all of its other rights and remedies at
law or in equity, to enforce the provisions of this Agreement.

     (c) Amendments and Waivers. Except as otherwise provided herein, the provisions of
this Agreement may be amended or waived only upon the prior written consent of the parties hereto.

     (d) Successors and Assigns. This Agreement will be binding upon and inure to the
benefit of and be enforceable by the parties hereto and their respective successors and assigns.
Notwithstanding the foregoing, no transferee or assignee of Culligan shall be entitled to have
shares of Common Stock held by it included in the Registration Statement.

     (e) Severability. Whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will
not affect any other provision or the effectiveness or validity of any provision in any other
jurisdiction, and this Agreement will be reformed, construed and enforced in such jurisdiction as
if such invalid, illegal or unenforceable provision had never been contained herein.

     (f) Counterparts. This Agreement may be executed simultaneously in two counterparts,
any one of which need not contain the signatures of more than one party, but all such counterparts
taken together will constitute one and the same Agreement.

9

 

     (g) Descriptive Headings. The descriptive headings of this Agreement are inserted for
convenience only and do not constitute a part of this Agreement.

     (h) Governing Law. This Agreement and the rights and duties of the parties hereto
hereunder shall be governed by and construed in accordance with laws of the State of New York,
without giving effect to its principles or rules of conflict of laws to the extent such principles
or rules are not mandatorily applicable by statute and would require or permit the application of
the laws of another jurisdiction.

     (i) Notices. All notices, demands or other communications to be given or delivered
under or by reason of the provisions of this Agreement will be in writing and will be deemed to
have been given when personally delivered or received by certified mail, return receipt requested,
or sent by guaranteed overnight courier service. Such notices, demands and other communications
will be sent to the Company and Culligan in the manner and at the addresses set forth in the
Purchase Agreement.

[the remainder of this page intentionally left blank]

10

 

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

	 	 	 	 	 
	 	PRIMO WATER CORPORATION

 	 
	 	By:  	/s/
Mark Castaneda 	 
	 	 	Name: Mark Castaneda	 
	 	 	Title:   Chief Financial Officer	 
	 

	 	CULLIGAN INTERNATIONAL COMPANY

 	 
	 	By:  	/s/
Susan E. Bennett 	 
	 	 	Name: Susan E. Bennett	 
	 	 	Title:   Senior Vice
President, General Counsel &

            Secretary	 

[Registration Rights Agreement]

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