Document:

Exhibit 10.12

 

REPRESENTATION AND WARRANTY
  INDEMNIFICATION AGREEMENT

 

This REPRESENTATION AND WARRANTY
INDEMNIFICATION AGREEMENT (including all exhibits and schedules hereto, this “Agreement”)
is made and entered into as of October 5, 2010 (the “Effective Date”)
by and among Eola Property Trust (the “Company”) and Eola Property
Trust, L.P. (the “Operating Partnership”), on the one hand, and James R.
Heistand, Rodolfo Prio Touzet, Troy M. Cox, Henry F. Pratt III and Scott
Francis (collectively, the “Indemnitors”), on the other hand.

 

RECITALS

 

A.            For
purposes of this Agreement, all capitalized terms shall have the meanings given
to such terms in Exhibit A, or as otherwise defined in this
Agreement.

 

B.            The
Operating Partnership desires to consolidate the ownership of a portfolio of
properties through a series of transactions (collectively, the “Formation
Transactions”) whereby the Operating Partnership will acquire, directly or
indirectly, some or all of the interests in certain limited partnerships and
limited liability companies; and the Formation Transactions include the
proposed initial public offering (the “Public Offering”) of  common shares of beneficial interest, par value $0.01 per
share, of the Company (the “Common Shares”), which is (either directly or
indirectly) the sole general partner of the Operating Partnership.

 

C.            One
or more of the Indemnitors, directly or indirectly, have an ownership interest
in certain of the properties set forth on Exhibit B (the “Properties”).

 

D.           Concurrently
with the execution and delivery of this Agreement, the Indemnitors (directly or
through one or more affiliates) are entering into a Contribution Agreement (the
“Eola Contribution Agreement”), dated as of  the
date hereof, by and among the Operating Partnership, the Company and certain
contributors party thereto (including the Indemnitors and/or entities
affiliated with the Indemnitors), relating to the contribution of their
respective interests in certain Entities to the Operating Partnership in
exchange for Common Shares and/or limited partnership units of the Operating
Partnership (“OP Units”), in each case, subject to the terms and
conditions of the Eola Contribution Agreement.

 

E.             In
order to induce the Operating Partnership and the Company to enter into the
Formation Transactions and consummate the Public Offering, the Indemnitors have
agreed to provide certain representations, warranties and indemnities with
respect to the Properties and the Entities as set forth in this Agreement.

 

F.             The
Indemnitors have agreed to execute and deliver a Pledge Agreement
(substantially in the form of Exhibit D
attached hereto) pursuant to which the Indemnitors’ indemnification obligations
under this Agreement shall be secured by pledges by the Indemnitors of an
aggregate amount equal to fifteen percent (15%) of the total number of OP Units
and Common Shares received by the Indemnitors under the terms of the Eola
Contribution Agreement.

 

NOW, THEREFORE, in consideration of the
foregoing premises and the mutual undertakings set forth below, and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

 

ARTICLE 1.

REPRESENTATIONS AND WARRANTIES

 

Except as otherwise set forth in the
Registration Statement, the Indemnitors jointly and severally represent and
warrant to the Operating Partnership and the Company as of the Closing Date as
follows (subject, in each case, to qualification by the disclosures in the
disclosure schedule delivered in connection with this Agreement (the “Disclosure Schedule”)):

 

Section 1.1             Leases.  With respect to each Property,
a true, correct and complete copy of all leases, licenses, tenancies,
possession agreements and occupancy agreements with the tenants of such
Property, including all amendments, supplements, and modifications to such
agreements (the “Leases”) have been made available to the Operating
Partnership.  With respect to each
Property, to each Indemnitor’s Knowledge, the Leases are in full force and
effect, except for such failures as would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect on such
Property.  To each Indemnitor’s
Knowledge, (1) no rent or other payment due from the tenant under any Lease is
delinquent for greater than ninety (90) days past its due date or has been paid
more than ninety (90) days in advance of its due date, (2) no monetary or
material non-monetary default (beyond applicable notice and cure periods) by
any Person exists under any such Lease that would reasonably be expected to
have a Material Adverse Effect on the applicable Property, (3) there is no
remaining right in any tenant under any Lease to any “free” rent, rent
abatement (other than upon damage to or destruction or condemnation of the leased
premises) or other rent concession that, in each case, is not documented in the
Lease, (4) there is no remaining obligation on the part of any landlord
under any Lease to construct, install or pay or reimburse the cost of any
tenant improvements, fixtures, furnishings or equipment or otherwise to make
any payments to the tenant that, in each case, is not documented in the Lease,
and (5) none of the tenants under any Lease has provided written notice to
any Indemnitor or any Entity that such tenant is subject to any bankruptcy,
reorganization, insolvency or similar proceedings.

 

Section 1.2             Ground Leases.  With respect to each Property, a
true, correct and complete copy of all ground leases and air space leases (the “Ground
Leases”), if any, have been made available to the Operating
Partnership.  To each Indemnitor’s
Knowledge, such Ground Leases are in full force and effect.  No Indemnitor nor, to any Indemnitor’s
Knowledge, any Entity has received any written notice from any ground lessor
under any of the Ground Leases alleging any material default or material event
of default on the part of an Entity thereunder, in each case, that has not been
cured or otherwise resolved.  Except for
matters that would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect on a Property, (a) to each
Indemnitor’s Knowledge, no ground lessor under any of the Ground Leases is in
default or is the subject of any voluntary or involuntary bankruptcy or
insolvency proceedings, (b) no Entity is in default under any Ground
Lease, and, (c) to each Indemnitor’s Knowledge, no event has occurred
which with the passage of time or the giving of notice (or both) would
constitute a default under any Ground Lease.

 

Section 1.3             Service Contracts.  With respect to the service, equipment,
franchise, operating, management, parking, supply, utility and maintenance
agreements relating to each Property which are for a contract amount greater
than $50,000 per annum (collectively, the “Service Contracts”), to each
Indemnitor’s Knowledge:  (a) no
Entity is in default under any Service Contract, and (b) no event has
occurred which with the passage of time or the giving of notice (or both) would
constitute a default under any Service Contract, except for matters that would
not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect on such Property. 
There are no employees of any Entity. 
True, correct and complete copies of all Service Contracts have been
made available to the Operating Partnership and, to each Indemnitor’s
Knowledge, are in full force and effect. 
Except as set forth on Schedule 1.3 to the Disclosure Schedule,
as of the Effective Date, no Indemnitor nor, to each

 

2

 

Indemnitor’s Knowledge,
any Entity has given or received written notice of any material event of
default (which remains uncured) under any of the Service Contracts.

 

Section 1.4             Existing Loans.  Schedule 1.4(a) to the Disclosure
Schedule lists, as of the Effective Date, (i) all secured loans
presently encumbering each such Property or any direct or indirect interest in
any Entity, and (ii) all unsecured loans relating to such Property or any
direct or indirect interest in any Entity held by Contributor, in each case
which loan will be assumed by the Operating Partnership or any subsidiary of
the Operating Partnership at Closing (the “Disclosed Loans”), and the
approximate outstanding aggregate principal balance of each such Disclosed
Loan.  Except as set forth on Schedule
1.4(b) to the Disclosure Schedule, the Disclosed Loans and the
documents entered into in connection therewith (collectively, the “Disclosed
Loan Documents”) are, to each Indemnitor’s Knowledge, in full force and
effect as of the Effective Date, and:  (a) no
monetary or material non-monetary default (beyond applicable notice and cure
periods) by any Entity shall exist on the Closing Date under any of such
Disclosed Loan Documents, and (b) to each Indemnitor’s Knowledge, no event
has occurred which with the passage of time or the giving of notice (or both)
would constitute a default under any of such Disclosed Loan Documents, except
for matters that would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect on such Property.  True, correct and complete copies of the
existing Disclosed Loan Documents have been made available to the Operating
Partnership.

 

Section 1.5             Zoning.  No Indemnitor nor any Entity has
received (i) any written notice (which remains uncured) from any
Governmental Entity stating that any Property is violating any zoning, land use
or other similar rules or ordinances in any material respect, or (ii) any
written notice of any pending or threatened Proceedings for the rezoning (i.e.,
as opposed to the current zoning) of any Property or any material portion
thereof.

 

Section 1.6             Eminent Domain.  There is no existing or, to any
Indemnitor’s Knowledge, proposed or threatened condemnation, eminent domain or
similar Proceeding, or private purchase in lieu of such a Proceeding, in
respect of all or any material portion of any Property.

 

Section 1.7             Licenses and Permits.
 To each Indemnitor’s Knowledge, all
licenses, permits or other governmental approvals (including certificates of
occupancy) required to be obtained by the owner of any Property in connection
with the construction, use, occupancy, management, leasing and operation of the
Property have been obtained and are in full force and effect and in good
standing, except for those licenses, permits and other governmental approvals,
the failure of which to obtain or maintain in good standing would not
reasonably be expected to have a Material Adverse Effect on such Property.  No Indemnitor nor any Entity has received any
written notice from any Governmental Entity revoking, canceling, denying
renewal of, or threatening any such action with respect to, any material
licenses, permits or other governmental approvals (other than typical delays
that occur in the ordinary course of business in connection with obtaining
renewals or replacement licenses, permits or other governmental approvals that
do not have a Material Adverse Effect on the applicable Property).

 

Section 1.8             Real Property Agreements.  To each Indemnitor’s Knowledge, no monetary
or material non-monetary default (beyond applicable notice and cure periods) by
any party exists under any material agreement to which any Indemnitor or any
Entity is a party and that affects any Property (including any of the
covenants, conditions, restrictions, right-of-way or easements constituting one
or more of the Permitted Liens), which would, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect on such Property, and
no event has occurred or, to any Indemnitor’s Knowledge, is threatened, which
through the passage of time or the giving of notice, or both, would constitute
a material default thereunder or would cause the acceleration of any obligation
of any party thereto or the creation of a Lien upon any Property, except for
Permitted Liens and except for defaults or

 

3

 

other Liens that would
not, individually, or in the aggregate, reasonably be expected to have a
Material Adverse Effect.  To each
Indemnitor’s Knowledge, each such agreement that is for a contract amount
greater than $50,000 per annum is valid and binding and in full force and
effect and has not been materially amended, modified or supplemented since such
time as such agreements were made available to the Operating Partnership.

 

Section 1.9             Compliance with Laws.  Except as set forth in the
Environmental Reports (as defined below), each Property has been maintained,
and no Indemnitor nor any Entity has received any written notice that such
Property is not, in compliance in all material respects with all applicable
laws, ordinances, rules, regulations, codes, orders and statutes (including
those laws currently relating to fire safety, conservation, parking, Americans
with Disabilities Act, zoning and building laws) whether federal, state or
local, in each case, except where the failure to so comply would not reasonably
be expected to have a Material Adverse Effect on such Property.

 

Section 1.10           Environmental Compliance.
 True, correct and complete copies of all
environmental reports with respect to any Property that is in possession of the
Indemnitors or any Entity (the “Environmental Reports”) have been made
available to the Operating Partnership. 
To each Indemnitor’s Knowledge, except as set forth in the Environmental
Reports, each Property is currently in compliance with all Environmental Laws
and Environmental Permits, except where the failure to so comply would not
reasonably be expected to have a Material Adverse Effect on such Property.  No Indemnitor nor any Entity has received any
written notice from the United States Environmental Protection Agency or any
other federal, state, county or municipal entity or agency that regulates
Hazardous Materials or public health risks or other environmental matters or
any other private party or Person claiming any current violation of, or
requiring current compliance with, any Environmental Laws or Environmental
Permits or demanding payment or contribution for any Release or other
environmental damage in, on, under, or upon any Property, in each case, that
has not been cured or otherwise resolved and that would, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect on the
applicable Property.  No litigation in
which any Indemnitor or any Entity is a named party is pending with respect to
Hazardous Materials located in, on, under or upon any Property, and, to the
Indemnitors’ Knowledge, (a) no Proceeding in such respect is pending and (b) no
such Proceeding has been threatened in writing in the last twelve (12) months
by any Governmental Entity or any other Person. Except as may be disclosed in
the Environmental Reports, there are no environmental conditions existing at,
on, under, upon or affecting any Property or any portion thereof that would
reasonably be likely to result in any claim, liability or obligation under any
Environmental Laws or Environmental Permit or any claim by any Person that
would reasonably be expected to have a Material Adverse Effect on such
Property.

 

4

 

Section 1.11           Litigation.  Except as set forth on Schedule
1.11 to the Disclosure Schedule, there are no Proceedings pending or, to
each Indemnitor’s Knowledge, threatened in the last twelve (12)  months, against or with respect to any Property, any
Indemnitor or any of the Entities that would reasonably be expected to have a
Material Adverse Effect on any Property. No Indemnitor is bound by any
outstanding order, writ, injunction or decree of any Governmental Entity
against any Entity which in any such case would reasonably be expected to have
a Material Adverse Effect on the Indemnitors’ ability to enter into and perform
all of its obligations under this Agreement or the Eola Contribution Agreement
or would reasonably be expected to have a Material Adverse Effect on such
Entity.

 

Section 1.12           Exclusive Representations.  Except as expressly set forth in
this Article 1 and in the Eola Contribution Agreement, the Indemnitors
make no representation or warranty of any kind, express or implied, in
connection with the Entities or the Properties, and each of the Operating
Partnership and the Company acknowledges that it has not relied upon any other
such representation or warranty.

 

Section 1.13           Schedules.  At any time prior to the Closing, the Indemnitors
shall be entitled to deliver to the Company and the Operating Partnership
updates to, or substitutions of, the Disclosure Schedules.  If the Closing under the Contribution
Agreement occurs, the updated or substitute Disclosure Schedules shall replace,
in whole or in part as the case may be, the Disclosure Schedules previously
delivered hereunder for all purposes.

 

ARTICLE 2.

INDEMNIFICATION AND PLEDGE

 

Section 2.1             Survival.  It is the express intention and agreement of
the parties hereto that the representations, warranties and covenants of the
Indemnitors set forth in this Agreement shall survive the consummation of the
transactions contemplated hereby for a period of one (1) year following
the Closing (subject to Section 2.3 below).  The provisions of this Agreement that
contemplate performance after the Closing and the obligations of the parties
not fully performed at the Closing shall survive the Closing and shall not be
deemed to be merged into or waived by the instruments of Closing.

 

Section 2.2             Indemnification by the Indemnitors.  Upon the terms and subject to
the conditions of this Article 2, from and after the Closing Date, the
Indemnitors shall jointly and severally indemnify, defend and hold harmless the
Operating Partnership and the Company and their respective affiliates, and
their respective directors, officers, managers, members, partners, employees,
agents, advisors and other representatives (collectively, the “OP
Indemnified Parties”), from and against any and all Damages arising out of,
relating to or resulting from any breach or inaccuracy of any representation or
warranty made by the Indemnitors, pursuant to Article 1 of this Agreement
(the “OP Claims”).

 

Section 2.3             Limitations on Indemnification.

 

(a)           The Indemnitors shall only be required to indemnify the OP
Indemnified Parties under Section 2.2 with respect to OP Claims for which
the OP Indemnified Parties have provided written notice to the Indemnitors,
setting forth therein in reasonable detail the basis for such OP Claims, on or
prior to the one (1)-year anniversary of the Closing; provided, however,
that, in the event that the OP Indemnified Parties notify the Indemnitors with
respect to any OP Claim on or prior to the one (1)-year anniversary of the Closing,
then any such OP Claim shall survive until resolved in accordance with the
terms and conditions of this Agreement (the “Indemnification Period”).

 

(b)           The provisions for indemnification contained in Section 2.2
shall be effective only if the aggregate amount of all Damages for all OP
Claims exceeds one percent (1%) of the

 

5

 

Aggregate
Value (it being understood and agreed that such  one
percent (1%) of the Aggregate Value shall
then be recoverable, together with all other Damages for OP Claims under Section 2.2
in excess thereof, by the OP Indemnified Parties subject to the other
limitations in this Agreement).

 

(c)           In no event shall the
aggregate amount of Damages for which the Indemnitors are liable pursuant to Section 2.2
exceed fifteen percent (15%) of the Aggregate Value.  In addition, in no event shall the amount of
Damages for which any individual Indemnitor is liable pursuant to Section 2.2
exceed fifteen percent (15%) of the Aggregate Value received by such individual
Indemnitor (i) under the Eola Contribution Agreement, or (ii) through
any distribution (directly or indirectly) to such Indemnitor of any OP Units
and/or Common Shares by any Contributor (or direct or indirect owner thereof).
Notwithstanding anything contained herein to the contrary, the OP Indemnified
Parties shall look first to available insurance proceeds (including without
limitation any title insurance proceeds, if applicable), and then to the OP
Units and/or Common Shares pledged by the Indemnitors pursuant to the terms of
the Pledge Agreement for indemnification under this Article 2. Following
the Closing and the issuance of Common Shares and/or OP Units to the applicable
Indemnitors, no OP Indemnified Party shall have recourse to any other assets of
the Indemnitors other than the Common Shares and/or OP Units pledged pursuant
to the Pledge Agreement.  The parties
hereto acknowledge and agree that the Collateral (as defined in the Pledge Agreement)
pledged by each Indemnitor pursuant to the terms of the Pledge Agreement shall
be released to satisfy the obligations under this Agreement on a pro rata basis
from each Indemnitor based on each such Indemnitor’s then-applicable Pro Rata
Share.  For purposes of the foregoing,
each Indemnitor’s “Pro Rata Share” is determined, at the time of each
release of the Collateral, by dividing (i) the then-current value of such
Indemnitor’s Collateral that has not already been released to obligations under
this Agreement, by (ii) the then-current aggregate value of all Collateral
that has not already been released to satisfy obligations under this Agreement.

 

Section 2.4             Pledge by the Indemnitors.  At or prior to the Closing, the Indemnitors
shall execute and deliver a Pledge Agreement (substantially in the form of Exhibit D attached hereto)
pursuant to which the Indemnitors’ indemnification obligations contained in
this Article 2 shall be secured by a pledge, at the Closing, by each
Indemnitor of an amount equal to fifteen percent (15%) of the total number of
OP Units and Common Shares received by each such Indemnitor under the terms of
the Eola Contribution Agreement.

 

Section 2.5             Procedures for Indemnification with Respect to Third Party
Claims. The obligations and liabilities of the
Indemnitors pursuant to Section 2.2 of this Agreement shall be subject to
the following procedures:

 

(a)           Any party seeking indemnification pursuant to Section 2.2
(an “Indemnified Party”) shall give to all Indemnitors (the “Indemnifying
Party”) prompt written notice (a “Claim Notice”) of the assertion of
any claim, or the commencement of any Proceeding for which the Indemnified
Party believes the Indemnifying Party may be liable under Section 2.2.  The failure by any Indemnified Party to
notify the Indemnifying Party shall not relieve the Indemnifying Party from
liability under Section 2.2, except to the extent that the Indemnifying
Party shall have been prejudiced in any material respect as the result of such
failure. A Claim Notice shall describe the nature of the Proceeding and shall
indicate the amount of Damages (estimated to the extent that the Damages in
respect of any Proceeding are reasonably capable of being estimated); provided,
however, that the failure to estimate Damages (or the inaccuracy
thereof) shall not effect the validity of a Claim Notice or the amount of
Damages to which the Indemnified Party may be entitled.

 

(b)           The Indemnifying Party shall have the right to elect to
control the defense of any Proceeding and the right to settle or compromise any
such Proceeding; provided that the prior written consent of the
Indemnified Party shall be required in connection with any settlement or
compromise

 

6

 

unless
such settlement, compromise, discharge or consent to judgment (i) includes
the delivery of a written release from all liability in respect of such
Proceeding, (ii) does not contain any admission or statement suggesting
any wrongdoing or liability on behalf of the Indemnified Party, and (iii) does
not contain any equitable order, judgment or term which in any manner affects,
restrains or interferes with the business of the Indemnified Party or any of
its affiliates. The Indemnifying Party shall exercise such right by delivering
written notice of its intent to undertake the defense of such Proceeding to the
Indemnified Party within twenty (20) days after the receipt of a Claim
Notice.  If the Indemnifying Party elects
to control the defense of the Proceeding, then all expenses and legal fees of
such defense shall be borne by the Indemnifying Party.  If the Indemnifying Party elects to control
the defense of the claim or Proceeding, then the Indemnified Party may
participate therein through counsel of its choice, but the cost of such counsel
shall be borne solely by the Indemnified Party. 
If the Indemnifying Party does not assume such defense within twenty
(20) days after its receipt of a Claim Notice or the Indemnifying Party
notifies the Indemnified Party that it shall not assume such defense, the
Indemnified Party may control the defense of such Proceeding and may settle the
Proceeding on behalf of and for the account and risk of the Indemnifying Party,
who shall be bound by the result and all costs associated therewith shall be
paid by the Indemnifying Party.

 

(c)           The Indemnifying Party or the Indemnified Party, as the case
may be, shall at all times use commercially reasonable efforts to keep the
Indemnifying Party or the Indemnified Party, as the case may be, reasonably
apprised of the status of the defense of any matter the defense of which it is
maintaining and to cooperate in good faith with the Indemnifying Party or the
Indemnified Party, as the case may be, with respect to the defense of any such
matter.

 

ARTICLE 3.

MISCELLANEOUS

 

Section 3.1             Counterparts.
 This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original and it shall not
be necessary in making proof of this Agreement or the terms of this Agreement
to produce or account for more than one of such counterparts.  All counterparts shall constitute one and the
same instrument.  Each party may execute
this Agreement via a facsimile (or transmission of a .pdf file) of this
Agreement.  In addition, facsimile or
..pdf signatures of authorized signatories of the parties shall be valid and
binding and delivery of a facsimile or .pdf signature by any party shall
constitute due execution and delivery of this Agreement.

 

Section 3.2             Governing Law.  This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Delaware,
without regard to the choice of laws provisions thereof.

 

Section 3.3             Amendment; Waiver.  Any amendment hereto shall be in writing and
signed by all parties hereto.  No waiver
of any provisions of this Agreement shall be valid unless in writing and signed
by the party against whom enforcement is sought.  The waiver by any party of the performance of
any act shall not operate as a waiver of the performance of any other act or an
identical act required to be performed at a later time. Except as otherwise
provided herein, no action taken pursuant to this Agreement, including any
investigation by or on behalf of any party, shall be deemed to constitute a
waiver by the party taking such action of compliance with any representations,
warranties, covenants or agreements contained in this Agreement.

 

Section 3.4             Entire Agreement.  This Agreement, the Eola Contribution
Agreement, the exhibits and schedules hereto constitute the entire agreement
and supersede conflicting provisions set forth in all other prior agreements
and understandings, both written and oral, among the parties with respect to
the subject matter hereof and thereof, as the case may be.  In the event of a conflict between

 

7

 

this
Agreement and the Eola Contribution Agreement, the terms of the Eola
Contribution Agreement shall prevail.

 

Section 3.5             Assignment.  This Agreement and all of the provisions
hereof shall be binding upon, and shall be enforceable by and inure to the
benefit of, the parties hereto and their respective heirs, legal
representatives, successors and permitted assigns and any reference to a party
shall also be a reference to an heir, legal representative, successor or
permitted assign; provided, however, that this Agreement may not
be assigned (except by operation of law) by any party without the prior written
consent of the other parties, and any attempted assignment without such consent
shall be void and of no effect, except that each of the Operating Partnership
and the Company, may assign its rights and obligations hereunder to any
affiliate without the consent of any party hereto.

 

Section 3.6             Titles.  The titles and captions of the Articles,
Sections and paragraphs of this Agreement are included for convenience of
reference only and shall have no effect on the construction or meaning of this
Agreement.

 

Section 3.7             Third Party Beneficiary.  Except as may be expressly provided or
incorporated by reference herein, no provision of this Agreement is intended,
nor shall it be interpreted, to provide or create any third party beneficiary
rights or any other rights of any kind in any customer, affiliate, shareholder,
partner, member, director, officer or employee of any party hereto or any other
Person.  All provisions hereof shall be
personal solely among the parties to this Agreement.

 

Section 3.8             Severability.  If any provision of this Agreement, or the
application thereof, is for any reason held to any extent to be invalid or
unenforceable, the remainder of this Agreement and application of such
provision to other Persons or circumstances shall be interpreted so as
reasonably to effect the intent of the parties hereto.  The parties further agree to replace such void
or unenforceable provision of this Agreement with a valid and enforceable
provision that shall achieve, to the extent possible, the economic, business
and other purposes of the void or unenforceable provision and to execute any
amendment, consent or agreement deemed necessary or desirable to effect such
replacement.  To the extent permitted by
applicable law, the parties waive any provision of applicable law which renders
any provision of this Agreement unenforceable in any respect.

 

Section 3.9             Interpretation.  This Agreement shall be read and construed in
the English language.  As used in this
Agreement, any reference to the masculine, feminine or neuter gender shall
include all genders, the plural shall include the singular, and singular shall
include the plural.  References herein to
a party or other Person include their respective successors and assigns.  The words “include,” “includes” and “including”
when used herein shall be deemed to be followed by the phrase “without
limitation” unless such phrase otherwise appears.  Unless the context otherwise requires,
references herein to articles, sections, schedules, exhibits and attachments
shall be deemed references to articles and sections of, and schedules, exhibits
and attachments to, this Agreement.  Unless
the context otherwise requires, the words “hereof,” “hereby” and “herein” and
words of similar meaning when used in this Agreement refer to this Agreement in
its entirety and not to any particular article, section or provision
hereof.  Except when used together with
the word “either” or otherwise for the purpose of identifying mutually
exclusive alternatives, the term “or” has the inclusive meaning represented by
the phrase “and/or.”  Any deadline or
time period set forth in this Agreement that by its terms ends on a day that is
not a Business Day shall be automatically extended to the next succeeding
Business Day.  All references in this
Agreement to “dollars” or “$” shall mean United States dollars.  With regard to each and every term and
condition of this Agreement, the Parties understand and agree that the same
have or has been mutually negotiated, prepared and drafted, and that if at any
time the Parties desire or are required to interpret or construe any such term
or condition or any agreement or instrument subject thereto, no

 

8

 

consideration
shall be given to the issue of which Party actually prepared, drafted or
requested any term or condition of this Agreement.

 

Section 3.10           Notices.  All notices, requests, demands, waivers and
communications required or permitted to be given under this Agreement shall be
in writing signed by or on behalf of the party making such notice, request,
demand, waiver or communication and shall be deemed to be given (i) on the
day delivered (or if that day is not a Business Day, or if delivered after the
close of business on a Business Day, on the next day that is a Business Day)
when delivered by personal delivery or overnight courier, (ii) on the third
Business Day after mailed by registered or certified mail, postage prepaid,
return receipt requested, or (iii) upon transmission when sent by
facsimile transmission or email transmission (provided that such facsimile or
email is followed by an original of such notice by mail or personal delivery as
provided herein).  Mailed notices shall
be addressed as set forth below, but any party may change the address set forth
below by written notice to other parties in accordance with this paragraph.

 

To the Indemnitors:

 

c/o Eola Capital, LLC

390 N. Orange Avenue, Suite 2400

Orlando, Florida 32801        

Phone: (407) 650-0593 

Facsimile:  (407) 650-0597

Email: JHeistand@eolacapital.com and RTouzet@eolacapital.com

Attn:  James R. Heistand and Rodolfo Prio
Touzet

 

To the Operating Partnership or the Company:

 

c/o Eola Capital, LLC

390 N. Orange Avenue, Suite 2400

Orlando, Florida 32801        

Phone: (407) 650-0593 

Facsimile:  (407) 650-0597

Email: DOReilly@eolacapital.com

Attn:  David O’Reilly

 

with a copy to:

 

Hogan Lovells US LLP

555 Thirteenth Street, N.W.

Washington, DC 20004

Phone: (202) 637-5868

Facsimile: (202) 637-5910

Email: david.bonser@hoganlovells.com

Attn: David W. Bonser

 

Section 3.11           Equitable Remedies.  The parties agree that irreparable damage
would occur in the event that any of the provisions of this Agreement were not
performed in accordance with the specific terms hereof or were otherwise
breached.  It is accordingly agreed that
the parties shall be entitled to an injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions
hereof in any federal or state court located in the State of Delaware (as to
which the parties

 

9

 

agree to
submit to jurisdiction for the purpose of such action), this being in addition
to any other remedy to which the parties are entitled under this Agreement.

 

Section 3.12           Enforcement Costs.  Should either party institute any Proceeding
to enforce the terms of this Agreement, the prevailing party shall be entitled
to receive all reasonable costs and expenses (including reasonable attorneys’
fees) incurred by such prevailing party in connection with such
Proceeding.  A party entitled to recover
costs and expenses under this Section shall also be entitled to recover
all costs and expenses (including reasonable attorneys’ fees) incurred in the
enforcement of any judgment or settlement obtained in such Proceeding (and in
any such judgment provision shall be made for the recovery of such
post-judgment costs and expenses).

 

Section 3.13           Term of Agreement.  This Agreement shall automatically terminate
upon the termination of the Eola Contribution Agreement and shall thereafter be
of no further force and effect, and thereafter neither the Operating
Partnership and the Company nor the Indemnitors shall have any further
obligations hereunder.

 

Section 3.14           Indemnitor Representatives.  For purposes of this Agreement and the Pledge
Agreement, each of the Indemnitors hereby designates each of James Heistand and Rodolfo Prio Touzet (the “Representatives”)
as the sole and exclusive representatives of such Indemnitor from and after the
Effective Date with respect to the matters arising under this Agreement, with
full powers of substitution to act in the name, place and stead of such
Indemnitor with respect to the performance on behalf of such Indemnitor under
the terms and provisions of this Agreement, as the same may be from time to
time amended, and to do or refrain from doing all such further acts and things,
and to execute all such documents, as the Representatives shall deem necessary
or appropriate in connection with any of the transactions contemplated by this
Agreement.  The appointment of the
Representatives as the Indemnitor’s representative under this Agreement shall
be deemed coupled with an interest and shall be irrevocable, and any other
Person may conclusively and absolutely rely, without inquiry, upon any actions
of the Representatives as the acts of the Indemnitors in all matters referred
to in this Agreement.  The
Representatives shall act for the Indemnitors on all of the matters set forth
in this Agreement in the manner that he believes to be in the best interest of
the Indemnitors, but the Representatives shall not be responsible to any
Indemnitor for any Damage any Indemnitor may suffer by reason of the
performance by the Representatives of their duties as the representative of any
Indemnitor under this Agreement, other than Damages arising from willful
misconduct in the performance of the Representatives’ duties as the
representatives of the Indemnitors under this Agreement.  Each
Indemnitor hereby agrees that such Indemnitor will be bound by any action taken
by the Representatives as representative of the Indemnitors in accordance with this Agreement
or the Pledge Agreement and that such Indemnitor will, if requested by the Representatives,
confirm in writing to be so bound and to ratify the action so taken. The Representatives shall promptly deliver to each Indemnitor
any notice received by him concerning this Agreement. Any Representative may
resign as a representative hereunder at any time upon written notice to the
Indemnitors, the Company and the Operating Partnership, at which time he shall
immediately cease to be a representative hereunder.

 

[Signature Page Follows]

 

10

 

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

 

	
   

  	
  OPERATING PARTNERSHIP

  
	
   

  	
   

  
	
   

  	
  EOLA PROPERTY TRUST, L.P.,

  
	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
   

  	
  By:    EOLA
  PROPERTY TRUST,

  
	
   

  	
   

  	
  a Maryland  real
  estate investment trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its: General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James R. Heistand

  
	
   

  	
   

  	
  Name: James R. Heistand

  
	
   

  	
   

  	
  Title: Executive Chairman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMPANY

  
	
   

  	
   

  
	
   

  	
  EOLA PROPERTY TRUST, a Maryland
  real estate investment trust

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James R. Heistand

  
	
   

  	
   

  	
  Name: James R. Heistand

  
	
   

  	
   

  	
  Title: Executive Chairman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INDEMNITORS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ James R. Heistand

  
	
   

  	
  James R. Heistand

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Rodolfo Prio Touzet

  
	
   

  	
  Rodolfo Prio Touzet

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Troy M. Cox

  
	
   

  	
  Troy M. Cox

  

 

11

 

	
   

  	
  /s/ Henry F. Pratt III

  
	
   

  	
  Henry F. Pratt III

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Scott Francis

  
	
   

  	
  Scott Francis

  

 

12

 

EXHIBIT A 

TO 

REPRESENTATION AND WARRANTY INDEMNIFICATION AGREEMENT

 

DEFINITIONS

 

For purposes of the Agreement, the following
terms have the meanings set forth below:

 

(a)                                  “Aggregate Value” means the aggregate value of all OP
Units and/or Common Shares received by the Indemnitors (i) under the Eola
Contribution Agreement, or (ii) through any distribution (directly or
indirectly) to the Indemnitors of any OP Units and/or Common Shares by any
Contributor (or direct or indirect owner thereof), with all OP Units and Common
Shares being valued based upon the initial public offering price of the Common
Shares.

 

(b)                                 “Business Day” means any day other than a Saturday, a
Sunday or a day on which banks in the City of New York are authorized or obligated by applicable law to close.

 

(c)                                  “Closing” shall have the meaning given such term in
the Eola Contribution Agreement.

 

(d)                                 “Closing Date” shall have the meaning given such term
in the Eola Contribution Agreement.

 

(e)                                  “Contributor” shall have the meaning given such term
in the Eola Contribution Agreement.

 

(f)                                    “Damages” means all claims, liabilities, Taxes,
demands, obligations, losses, penalties, fines, assessments, levies and
judgments (at equity or at law), damages (including compensatory damages and
amounts paid in settlement), costs and expenses, including reasonable attorneys’,
accountants’, investigators’, and experts fees and expenses (reasonably
sustained or incurred in connection with the defense or investigation of any
Proceedings, including Proceedings to establish insurance coverage and
insolvency proceedings), whenever arising or incurred, but expressly
excluding exemplary, consequential and punitive damages (except to the extent
awarded in any Proceeding initiated by a third party).

 

(g)                                 “Entity” means each partnership, company or other
Person listed on Exhibit C and each partnership, limited liability
company or other legal entity (i) that is a subsidiary thereof, and (ii) that
directly or indirectly owns any interest in, or ground leases on, any Property.

 

(h)                                 “Environmental Law” means all applicable statutes,
regulations, rules, ordinances, codes, licenses, permits, orders, demands,
approvals, authorizations and similar items of any Governmental Entity and all
applicable judicial, administrative and regulatory decrees, judgments and
orders relating to the protection of human health or the environment as in
effect on the Closing Date, including those pertaining to reporting, licensing,
permitting, investigation, removal and remediation of Hazardous Materials,
including:  (x) the Comprehensive
Environmental Response, Compensation and Liability Act (42 U.S.C. Section 9601
et seq.), the Resource Conservation and Recovery Act (42 U.S.C. Section 6901
et seq.), the Clean Air Act (42 U.S.C. Section 7401 et seq.), the Federal
Water Pollution Control Act (33 U.S.C. Section 1251), the Safe Drinking
Water Act (42 U.S.C. 300f et seq.), the Toxic Substances Control Act (15 U.S.C.
2601 et seq.), the Endangered Species Act (16 U.S.C. 1531 et seq.), the
Emergency Planning and Community Right-to-Know Act of 1986 (42 U.S.C.  11001 et seq.), and (y) applicable state
and local statutory and regulatory laws, statutes and regulations pertaining to
Hazardous Materials.

 

1

 

(i)                                     “Environmental Permits” means any and all licenses,
certificates, permits, directives, requirements, registrations, government
approvals, agreements, authorizations, and consents that are required under or
are issued pursuant to any Environmental Laws.

 

(j)                                     “Governmental Entity” means any governmental agency
or quasi-governmental agency, bureau, board, commission, court, department,
official, political subdivision, tribunal or other instrumentality of any
government, whether federal, state or local, domestic or foreign.

 

(k)                                  “Hazardous Material” means any substance:

 

(i)                                     the presence of which requires investigation or remediation under any
Environmental Law action or policy, administrative request or civil complaint
under the foregoing or under common law;

 

(ii)                                  which is controlled, regulated or prohibited under any Environmental Law
as in effect as of the Closing Date, including the Comprehensive Environmental
Response, Compensation and Liability Act (42 U.S.C. Section 9601 et seq.)
and the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et
seq.);

 

(iii)                               which is toxic, explosive, corrosive, flammable, infectious,
radioactive, carcinogenic, mutagenic or otherwise hazardous and as of the
Closing Date is regulated by any Governmental Entity;

 

(iv)                              the presence of which on, under or about, a Property poses a hazard to
the health or safety of persons on or about such Property;

 

(v)                                 which contains gasoline, diesel fuel or other petroleum hydrocarbons,
polychlorinated biphenyls (PCBs) or asbestos or asbestos-containing materials
or urea formaldehyde foam insulation; or

 

(vi)                              radon gas.

 

(l)                                     “Knowledge” means, with respect to each Indemnitor,  all facts actually known by such Indemnitor.

 

(m)                               “Liens” means any mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance, lien (statutory or other), other
charge or security interest or any preferential arrangement of any kind or
nature whatsoever (including any conditional sale or other title retention
agreement), and any obligations under capital leases having substantially the
same economic effect as any of the foregoing.

 

(n)                                 “Material Adverse Effect” means, with respect to any
Person or Property, (i) any material adverse effect, individually or in
the aggregate, on the assets, business, financial condition or results of
operations of such Person or Property, or (ii) any material adverse effect
that could adversely affect or delay the ability of such Person to perform its
respective obligations hereunder or in connection with the transactions contemplated
hereby.

 

(o)                                 “Permitted Liens” means:

 

2

 

(i)                                     Liens securing Taxes, the payment of which (i) is not delinquent or
(ii) is actively being contested in good faith by appropriate proceedings
diligently pursued and is appropriately reserved for in accordance with
generally accepted accounting principles;

 

(i)                                     Zoning laws and ordinances applicable to the Properties which are not
violated by the existing structures or present uses thereof or the transfer of
the Properties;

 

(iii)                               Liens imposed by laws, such as carriers’, warehousemen’s and mechanics’
liens, and other similar liens arising in the ordinary course of business which
secure payment of obligations arising in the ordinary course of business not more
than 60 days past due or which are being contested in good faith by appropriate
proceedings diligently pursued;

 

(iv)                              easements, restrictive covenants, rights of way and similar matters that
are set forth on the existing title insurance policy for a Property none of
which materially adversely affect the marketability or financability of such
Property or the use and operation of such Property as currently used and
operated; and

 

(v)                                 the Liens of all Disclosed Loans.

 

(p)                                 “Person” means any individual, corporation, limited
liability company, partnership, joint venture, association, joint-stock
company, trust, unincorporated organization or Governmental Entity.

 

(q)                                 “Proceeding” shall mean any governmental, judicial,
administrative or adversarial proceeding (public or private), any action,
claim, lawsuit, legal proceeding, whistleblower complaint, charge, accusation,
petition, litigation, arbitration or mediation, any hearing, investigation
(internal or otherwise), probe or inquiry by any Governmental Entity or any
other dispute, including any adversarial proceeding.

 

(r)                                    “Registration Statement” shall mean the registration
statement on Form S-11 filed by the Company in connection with the Public
Offering, including all amendments and supplements thereto and any exhibits and
schedules thereto, and each prospectus used by the Company in connection with
the offering of Common Shares in the Public Offering.

 

(s)                                  “Release” shall have the same meaning as the
definition of “release” in the Comprehensive Environmental Response,
Compensation and Liability Act (CERCLA) at 42 U.S.C. Section 9601(22), but
not including the exclusions identified in that definition at subparts (A) through
(D).

 

(t)                                    “Tax” or “Taxes” means any federal, state,
provincial, local or foreign income, gross receipts, license, payroll,
employment-related, excise, goods and services, harmonized sales, severance,
stamp, occupation, premium, windfall profits, environmental, customs duties,
capital stock, franchise, profits, withholding, social security, unemployment,
disability, real property, personal property, sales, use, transfer,
registration, value added, alternative or add-on minimum, estimated, or other
tax of any kind whatsoever, including any interest, penalty, or addition
thereto, whether disputed or not.

 

(u)                                 Each of the following terms is defined in the section set
forth below opposite such term:

 

3

 

	
  Term

  	
   

  	
  Section

  
	
   

  	
   

  	
   

  
	
  Agreement

  	
   

  	
  Preamble

  
	
  Claim Notice

  	
   

  	
  2.5(a)

  
	
  Common Shares

  	
   

  	
  Recital B

  
	
  Company

  	
   

  	
  Preamble

  
	
  Disclosed Loans

  	
   

  	
  1.4

  
	
  Disclosed Loan Documents

  	
   

  	
  1.4

  
	
  Disclosure Schedule

  	
   

  	
  Article 1

  
	
  Effective Date

  	
   

  	
  Preamble

  
	
  Eola Contribution Agreement

  	
   

  	
  Recital D

  
	
  Environmental Reports

  	
   

  	
  1.10

  
	
  Formation Transactions

  	
   

  	
  Recital B

  
	
  Ground Leases

  	
   

  	
  1.2

  
	
  Indemnification Period

  	
   

  	
  2.3(a)

  
	
  Indemnified Party

  	
   

  	
  2.5(a)

  
	
  Indemnifying Party

  	
   

  	
  2.5(a)

  
	
  Indemnitors

  	
   

  	
  Preamble

  
	
  Leases

  	
   

  	
  1.1

  
	
  Operating Partnership

  	
   

  	
  Preamble

  
	
  OP Claims

  	
   

  	
  2.2

  
	
  OP Indemnified Party

  	
   

  	
  2.2

  
	
  OP Units

  	
   

  	
  Recital D

  
	
  Properties

  	
   

  	
  Recital C

  
	
  Public Offering

  	
   

  	
  Recital B

  
	
  Representatives

  	
   

  	
  3.14

  
	
  Services Contracts

  	
   

  	
  1.3

  

 

4

 

EXHIBIT B

TO 

REPRESENTATION AND WARRANTY INDEMNIFICATION AGREEMENT

 

PROPERTIES

 

PROPERTY

 

	
  1.

  	
   

  	
  Peachtree Center Mall

  
	
  2.

  	
   

  	
  Peachtree Center North

  
	
  3.

  	
   

  	
  Peachtree Center South

  
	
  4.

  	
   

  	
  Peachtree Center Harris

  
	
  5.

  	
   

  	
  Peachtree Center International

  
	
  6.

  	
   

  	
  Peachtree Center Garage

  
	
  7.

  	
   

  	
  International Garage

  
	
  8.

  	
   

  	
  Courtland Garage

  
	
  9.

  	
   

  	
  Peachtree Marquis I

  
	
  10.

  	
   

  	
  Peachtree Marquis II

  
	
  11.

  	
   

  	
  Center Point I

  
	
  12.

  	
   

  	
  Center Point II

  
	
  13.

  	
   

  	
  Independent Square (Modus
  Building)

  
	
  14.

  	
   

  	
  CBD Parking

  
	
  15.

  	
   

  	
  Interstate Northwest Business Park

  
	
  16.

  	
   

  	
  20 Technology Park

  
	
  17.

  	
   

  	
  3720 Davinci Court

  
	
  18.

  	
   

  	
  3740 Davinci Court

  
	
  19.

  	
   

  	
  Buschwood Park I

  
	
  20.

  	
   

  	
  Buschwood Park II

  
	
  21.

  	
   

  	
  Buschwood Park III

  
	
  22.

  	
   

  	
  Cypress IV Land

  
	
  23.

  	
   

  	
  Capital Plaza I

  
	
  24.

  	
   

  	
  Capital Plaza II

  
	
  25.

  	
   

  	
  Capital Plaza III

  
	
  26.

  	
   

  	
  Cypress Center I

  
	
  27.

  	
   

  	
  Cypress Center II

  
	
  28.

  	
   

  	
  Cypress Center III

  
	
  29.

  	
   

  	
  Cypress West

  
	
  30.

  	
   

  	
  One Orlando Centre

  
	
  31.

  	
   

  	
  280 Interstate North

  
	
  32.

  	
   

  	
  5660 New Northside Drive

  

 

1

 

	
  33.

  	
   

  	
  Parkwood Point

  
	
  34.

  	
   

  	
  Deerfield Point I

  
	
  35.

  	
   

  	
  Deerfield Point II

  
	
  36.

  	
   

  	
  Windward Pointe 200

  
	
  37.

  	
   

  	
  100 Windward Plaza

  
	
  38.

  	
   

  	
  300 Windward Plaza

  
	
  39.

  	
   

  	
  Southhall Center

  
	
  40.

  	
   

  	
  Millenia Park One

  
	
  41.

  	
   

  	
  Beckrich One

  
	
  42.

  	
   

  	
  Beckrich Two

  
	
  43.

  	
   

  	
  Westshore 500

  
	
  44.

  	
   

  	
  International Plaza Four

  
	
  45.

  	
   

  	
  Millennium (10 Tenth Street)

  
	
  46.

  	
   

  	
  The Cornerstone Building at
  Peachtree Center

  
	
  47.

  	
   

  	
  Two Ravinia

  
	
  48.

  	
   

  	
  Bank of America Center

  
	
  49.

  	
   

  	
  2400 Maitland Center

  
	
  50.

  	
   

  	
  Interlachan Corporate Center

  
	
  51.

  	
   

  	
  500 Winderley Place

  
	
  52.

  	
   

  	
  Maitland Forum

  
	
  53.

  	
   

  	
  Maitland Park Center

  
	
  54.

  	
   

  	
  Westshore Corporate Center

  
	
  55.

  	
   

  	
  Primera V

  
	
  56.

  	
   

  	
  Southwood One

  

 

2

 

EXHIBIT C

TO 

REPRESENTATION AND WARRANTY INDEMNIFICATION AGREEMENT

 

ENTITIES

 

ENTITY

 

	
  1. 

  	
   

  	
  ACP/DLF Cornerstone Venture LLC

  
	
  2. 

  	
   

  	
  ACP Committee LLC

  
	
  3. 

  	
   

  	
  ACP/Utah VIII LLC

  
	
  4. 

  	
   

  	
  ACP Primera Committee LLC

  
	
  5. 

  	
   

  	
  ACP/DLF Primera LLC

  
	
  6. 

  	
   

  	
  ACP/DLF Peachtree Center LLC

  
	
  7. 

  	
   

  	
  ACP Peachtree Committee LLC

  
	
  8. 

  	
   

  	
  ACP/URS Maitland LLC

  
	
  9. 

  	
   

  	
  ACP Westshore LLC

  
	
  10. 

  	
   

  	
  ACP Westshore Committee LLC

  
	
  11. 

  	
   

  	
  CAT-B Holdings Owner LLC

  
	
  12. 

  	
   

  	
  CAT-B Holdings LLC

  
	
  13. 

  	
   

  	
  JAX-ISQ Manager LLC

  
	
  14. 

  	
   

  	
  INW Holding LLC

  
	
  15. 

  	
   

  	
  DAV Holdings LLC

  
	
  16. 

  	
   

  	
  BSH Capital LLC

  
	
  17. 

  	
   

  	
  CYP4 Owner LLC

  
	
  18. 

  	
   

  	
  Deerwood Manager LLC

  
	
  19. 

  	
   

  	
  CAT-FLA Manager LLC

  
	
  20. 

  	
   

  	
  OOC Holdings Owner LLC

  
	
  21. 

  	
   

  	
  VFG Capital LLC

  
	
  22. 

  	
   

  	
  500 WS Fund III LLC

  
	
  23. 

  	
   

  	
  IP4 Holdings Owner LLC

  
	
  24. 

  	
   

  	
  ACP/Millennium Manager LLC

  
	
  25. 

  	
   

  	
  ACP Ravinia Manager LLC

  
	
  26. 

  	
   

  	
  MAIT Holdings Owner LLC

  
	
  27. 

  	
   

  	
  ACP/Millennium Holdings LLC

  

 

1

 

EXHIBIT D

TO 

REPRESENTATION AND WARRANTY INDEMNIFICATION AGREEMENT

 

PLEDGE AGREEMENT

 

THIS PLEDGE AGREEMENT (this “Agreement”),
dated as of                             ,
20    , is entered into by and among Eola Property Trust
(the “Company”) and Eola Property Trust, L.P. (the “Operating
Partnership”), on the one hand, and James Heistand and Rodolfo Prio Touzet,
on behalf of themselves and as the representatives of the “Indemnitors” under
the Indemnification Agreement (collectively, the “Pledgors”), on the
other hand.

 

A.                                   All capitalized terms used, by not defined, herein shall have the
meanings ascribed such terms in the Indemnification Agreement (as defined
below).

 

B.                                     The Pledgors, the Company and the Operating Partnership have entered
into (i) a Contribution Agreement (the “Contribution Agreement”),
dated as of  October 5, 2010, by and
among the Operating Partnership, the Company and certain contributors party
thereto (including the Pledgors and/or entities affiliated with the Pledgors),
relating to the contribution of their interests in certain entities to the
Operating Partnership in exchange for common shares of beneficial interest, par
value $0.01, of the Company (“Common Shares”) and/or limited partnership
units of the Operating Partnership (“OP Units”), in each case, subject
to the terms and conditions of the Contribution Agreement, and (ii) a
Representation and Warranty Indemnification Agreement, dated as of October 5,
2010, by and among the Pledgors, the Operating Partnership and the Company,
relating to, among other things, certain representations and warranties of the
Pledgors with respect to the Properties and the entities that directly or indirectly
have an ownership interest in such Properties (the “Indemnification
Agreement”).

 

C.                                     As collateral security for the performance of the Pledgors’
indemnification obligations under Article 2 of the Indemnification
Agreement, the Pledgors have agreed to pledge a portion of the OP Units and
Common Shares received by each Pledgor (i) pursuant to the Eola
Contribution Agreement, and/or (ii) through any distribution (directly or
indirectly) to such Pledgor of any OP Units and/or Common Shares by any Contributor
(or direct or indirect owner thereof) (as to each Pledgor, such OP Units and
Common Shares, respectively, are referred to as the “Pledgor OP Units”
and the “Pledgor Common Shares”).

 

NOW, THEREFORE, in consideration of the
foregoing premises and the mutual undertakings set forth below and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

1.                                       Grant of Security Interest.  As collateral security for the payment of all
obligations under the Indemnification Agreement, each of the Pledgors hereby
pledges, assigns and grants to the Operating Partnership and the Company, for
their own benefit and for the benefit of each OP Indemnified Party, a first
priority lien on, and security interest in, (i) fifteen percent (15%) of
the total number of Pledgor OP Units and Pledgor Common Shares received by such
Pledgor as a result of the transactions contemplated by the Eola Contribution
Agreement, (ii) any additional OP Units and/or Common Shares that may be
acquired by such Pledgor in respect of such Pledgor OP Units and the Pledgor
Common Shares, (iii) all rights of such Pledgor in and to all
distributions in kind declared in respect of any or all of the foregoing, and (iv) subject
to Section 4, all proceeds and profits of any or all of the foregoing
(collectively, the “Collateral”).

 

1

 

2.                                       Perfection of Security Interest.

 

(a)                                  For the purpose of perfecting the pledge of the security
interest granted by each of the Pledgors to the Operating Partnership and the
Company pursuant to Section 1, each Pledgor authorizes and directs (i) the
Operating Partnership, acting in its capacity as the issuer of the OP Units, to
register the pledge of the Pledgor OP Units on the books and records of the
Operating Partnership or to register the Operating Partnership as the
registered owner (for UCC perfection purposes only) of the Pledgor OP Units on
the appropriate books and records of the Operating Partnership, and (ii) the
Company, acting in its capacity as the issuer of the Common Shares, to register
the pledge of the Pledgor Common Shares on the books and records of the Company
or to register the Company as the registered owner (for UCC perfection purposes
only) of the Pledgor Common Shares on the appropriate books and records of the
Company.

 

(b)                                 In addition, at the request of the Operating Partnership
and/or the Company, each Pledgor will promptly join with the Operating
Partnership and/or the Company in executing financing statements, continuation
statements, assignments, certificates and other documents with respect to the
Collateral pursuant to the Uniform Commercial Code and otherwise as may be
reasonably requested by the Operating Partnership or the Company to enable the
Operating Partnership and the Company to perfect or from time to time to renew
the security interests granted hereby.

 

(c)                                  Each Pledgor grants the Operating Partnership and the
Company the right, at the Operating Partnership and the Company’s option, to
file any or all such financing statements, continuation statements and other
documents pursuant to the Uniform Commercial Code and otherwise, without such
Pledgor’s signatures, and irrevocably appoints each of the Company and the Operating
Partnership as such Pledgor’s attorneys-in-fact to execute any such statements
and documents in the Operating Partnership’s and/or the Company’s name and to
perform all other acts which the Operating Partnership and/or the Company deem
appropriate to perfect and continue the security interests conferred by this
Agreement.

 

3.                                       Pledgors Remain Liable.  Notwithstanding anything herein to the
contrary: (i) each Pledgor shall remain obligated, to the extent set forth
in the agreements (including, without limitation, the partnership agreement of
the Operating Partnership (the “OP Agreement”) and the Declaration of
Trust of the Company) under which it has received, or has rights or obligations
in respect of its ownership of, the Pledgor OP Units and/or the Pledgor Common
Shares (“Related Agreements”), to perform its duties and obligations
thereunder to the same extent as if this Agreement had not been executed; (b) the
exercise by the Operating Partnership and/or the Company of any of its rights
hereunder shall not release any Pledgor from any of its duties or obligations
under the Related Agreements, except to the extent that such duties and
obligations may have been terminated by reason of a sale, transfer or other
disposition of the Collateral pursuant hereto; and (c) the Operating
Partnership and the Company shall not by reason of this Agreement have any
obligations or liabilities under the Related Agreements, nor shall the
Operating Partnership or the Company be obligated to perform any of the
obligations or duties of any Pledgor under the Related Agreements or to take
any action to collect or enforce any claim for payment assigned hereunder.

 

4.                                       Voting Rights and Distributions.

 

(a)                                  Subject to the provisions of the Indemnification Agreement,
until the Collateral is applied to satisfy any obligation of the Pledgors under
the Indemnification Agreement (a “Secured Obligation”), each Pledgor
shall be entitled to exercise all voting rights with respect to the Collateral
and, for that purpose, the Operating Partnership and the Company shall (if such
Collateral is registered in the name of the Operating Partnership or the
Company) execute or cause to be executed from time to time, at

 

2

 

the expense of the applicable
Pledgor, such proxies or other instruments in favor of the applicable Pledgor
or its nominee in such form and for such purposes as shall be reasonably
required and specified in writing by the applicable Pledgor, to enable the
applicable Pledgor to exercise such voting power with respect to such
Collateral.

 

(b)                                 Until the Operating Partnership and the Company reasonably
determine that the outstanding OP Claims asserted by the OP Indemnified Parties
in one or more Claim Notice may equal or exceed the value of the Collateral
then-available to satisfy such OP Claims, each Pledgor shall be entitled to
receive and retain for its own account any and all regular cash distributions
(but not distributions in the form of any additional OP Units and/or Common
Shares or other securities, distributions in kind or liquidating distributions,
all of which shall be delivered and applied in accordance with Section 5
hereof) and interest at any time and from time to time paid upon any of the
Collateral.

 

5.                                       Extraordinary Payments and Distributions.  In case, upon the
dissolution or liquidation (in whole or in part) of the Operating Partnership
and/or the Company, any sum shall be paid as a liquidating distribution or
otherwise upon or with respect to any of the Collateral, such sum shall be paid
over to the Operating Partnership and/or the Company promptly, and in any event
within 10 days after receipt thereof, to be held by the Operating Partnership
and/or the Company as additional Collateral hereunder.  In case any distribution of any additional OP
Units and/or Common Shares shall be made with respect to the Collateral, or any
additional OP Units and/or Common Shares or fractions thereof shall be issued
pursuant to any split involving any of the Collateral, or any distribution of
capital shall be made on any of the Collateral, or any partnership interests,
shares, obligations or other property shall be distributed upon or with respect
to the Collateral pursuant to a recapitalization or reclassification of the
capital of the Operating Partnership and/or the Company, or pursuant to the
dissolution, liquidation (in whole or in part), bankruptcy or reorganization of
the Operating Partnership and/or the Company, or pursuant to the merger or
consolidation of the Operating Partnership and/or the Company with or into
another entity, a security interest in such partnership interests, shares,
obligations or other property so distributed shall be perfected in accordance
with Section 2 of this Agreement or paid to the Operating Partnership or
the Company as provided in this Section 5, in each case, promptly, and in
any event within 10 days after receipt thereof, to be held by the Operating
Partnership and/or the Company as additional Collateral hereunder, and all of
the same (other than cash) shall constitute Collateral for all purposes hereof.

 

6.                                       Pledgor Obligations Not Affected.  The obligations of
each Pledgor hereunder shall remain in full force and effect and shall not be
impaired by:

 

(a)                                  any bankruptcy, insolvency, reorganization, arrangement,
readjustment, composition, liquidation or the like of such Pledgor;

 

(b)                                 any amendments to or modifications of any instrument (other
than this Agreement) securing any of the Secured Obligations;

 

(c)                                  the taking of additional security for, or any guaranty of,
any of the Secured Obligations or the release or discharge or termination of
any security or guaranty for any of the Secured Obligations; or

 

(d)                                 the lack of enforceability of any of the Secured Obligations against
such Pledgor or any other Person, whether or not such Pledgor shall have notice
or knowledge of any of the foregoing.

 

3

 

7.                                       Voting Rights and Certain Payments After Occurrence of
Secured Obligation and Certain Other Events.

 

(a)                                  At such time that the Operating Partnership and the Company
are entitled under this Agreement to apply any Collateral to satisfy a Secured
Obligation hereunder, all rights of any Pledgor to exercise or refrain from
exercising all voting power with respect to such Collateral and to otherwise
exercise all ownership rights arising from such Collateral shall cease, and
thereupon the Operating Partnership and the Company shall be entitled to
exercise all voting power with respect to such Collateral and otherwise
exercise such ownership rights as though the Operating Partnership and/or the
Company were the outright owner of such Collateral.  In the event that the Operating Partnership
and/or the Company reasonably determines that the outstanding claims asserted
by the OP Indemnified Parties in one or more Claim Notices may equal or exceed
the value of the Collateral then-available to satisfy such claims, each Pledgor
shall no longer be the owner of such Collateral for tax purposes and all rights
of each such Pledgor to receive and retain the distributions and interest which
it would otherwise be authorized to receive and retain pursuant to Section 4
hereof shall cease, and thereupon the Operating Partnership and the Company
shall be entitled to receive and retain, as additional Collateral hereunder,
any and all distributions and interest at any time and from time to time paid
upon any of such Collateral, provided that, concurrent with making such
determination, the Operating Partnership and the Company gives notice thereof
to each such Pledgor.

 

(b)                                 All payments, distributions or other property or assets that
are received by any Pledgor contrary to the provisions of paragraph (a) of
this Section 7 shall be received and held in trust for the benefit of the
Operating Partnership and the Company, shall be segregated from other funds of
such Pledgor and shall be forthwith paid over to the Operating Partnership and
the Company.

 

(c)                                  For purposes of this Agreement, any consent, approval,
waiver, notification or other action required or permitted to be taken by the
Pledgors under this Agreement may be taken by a representative of the Pledgors,
as may be designated by the Pledgors in writing to the Operating Partnership
and the Company, as an authorized representative of the Pledgors for purposes
of this Agreement.

 

8.                                       Application of Cash Collateral.  Any cash received
and retained by the Operating Partnership and/or the Company as additional
Collateral pursuant to Section 5 may at any time and from time to time be
applied (in whole or in part) by the Operating Partnership and/or the Company,
at their option, to the satisfaction of (or as reimbursement of amounts
previously paid with respect to) the Secured Obligations which such Collateral
secures (in such order as the Operating Partnership and/or the Company shall,
in their sole discretion determine), if and to the extent any such payment is
required hereunder.

 

9.                                       Application of Proceeds.  Except as otherwise expressly provided
herein, any cash received and retained pursuant to Section 5 shall be
applied by the Operating Partnership and/or the Company:  first to the satisfaction in full of (or as
reimbursement of amounts previously paid with respect to) the Secured
Obligations in accordance with the terms of this Agreement and the
Indemnification Agreement, if and to the extent any such payment is required
hereunder; and then, to the payment to each Pledgor, or its successors or
assigns or as a court of competent jurisdiction may direct, of any surplus then
remaining.

 

10.                                 Remedies with Respect to Collateral.

 

(a)                                  If any Pledgor fails to pay or perform any Secured
Obligation when due, the Operating Partnership and/or the Company, without
obligation to resort to any other security (other than

 

4

 

insurance
proceeds, if any, as contemplated in Section 2.3(c) of the
Indemnification Agreement), shall have the right at any time and from time to
time to receive all or any part of the Collateral with a value equal to the
amount of such Secured Obligation, and all right, title and interest, claim and
demand therein and right of redemption thereof and to sell the Collateral in
any manner permitted by the Uniform Commercial Code as in effect in the State
of Delaware (the “UCC”).

 

(b)                                 Notwithstanding anything to the contrary in this Agreement,
the sole recourse of the Operating Partnership and the Company against any
Pledgor for the Secured Obligations and the obligations of each such Pledgor
under this Agreement is limited to the rights of such Pledgor in any such
Collateral that is applied to satisfy a Secured Obligation.  The parties hereto acknowledge and agree that
the Pledgor OP Units and/or the Pledgor Common Shares pledged by each Pledgor
pursuant to the terms of this Agreement shall be released to satisfy the
obligations under this Agreement on a pro rata basis from each Pledgor based on
such Pledgor’s Pro Rata Share (as defined in the Indemnification Agreement).

 

(c)                                  No demand, advertisement or notice, all of which are hereby
expressly waived, shall be required in connection with any transfer of
Collateral to the Operating Partnership and/or the Company pursuant to this
Agreement.

 

(d)                                 Each of the Pledgors, the Company and the Operating
Partnership agree to treat, to the extent permitted by applicable law, any
application of the Collateral in discharge of any Secured Obligations as a
non-taxable adjustment to the portion of the consideration received by any such
Pledgor as a result of the transactions contemplated by the Contribution
Agreement in the form of OP Units and/or Common Shares for U.S. federal income
tax purposes.

 

(e)                                  The rights of
the Operating Partnership and the Company under this Agreement shall not be
conditioned or contingent upon the pursuit by the Operating Partnership or the
Company of any right or remedy against the Operating Partnership or the Company
or against any other Person which may be or become liable in respect of all or
any part of the Secured Obligations or against any other security therefor,
guarantee thereof or right of offset with respect thereto.  Neither the Operating Partnership nor the
Company shall be liable for any failure to demand, collect or realize upon all
or any part of the Collateral or for any delay in doing so, nor shall it be
under any obligation to sell or otherwise dispose of any Collateral upon the
request of the Pledgors or any other Person or to take any other action
whatsoever with regard to the Collateral or any part thereof.

 

(f)                                    The Pledgors
recognize that the Operating Partnership and the Company may be unable to
effect a public sale of the Collateral by reason of certain provisions
contained in the Securities Act of 1933, as amended, and applicable state
securities laws and, under the circumstances then existing, may reasonably
resort to a private sale to a registered group of purchasers who will be
obliged to agree, among other things, to acquire the Collateral for their own
account for investment and not with a view to the distribution or resale of the
Collateral.  The Pledgors agree that a
private sale so made may be at a price and on other terms less favorable to the
seller than if the Collateral were sold at public sale and that the Operating
Partnership and the Company shall have no obligation to delay sale of the
Collateral for the period of time necessary to permit the Pledgors, even if the
Pledgors would agree, to register or qualify the Collateral for public sale under
the Securities Act of 1933, as amended, and applicable state securities
laws.  The Pledgors agree that a private
sale made under the foregoing circumstances and otherwise in a commercially
reasonable manner shall be deemed to have been made in a commercially
reasonable manner under the UCC.

 

11.                                 Care of
Collateral.  The Operating Partnership and the Company shall have no duty as to the
collection or protection of the Collateral or any income thereon or as to the
preservation of any rights

 

5

 

pertaining thereto, beyond the safe custody of any
thereof actually in its possession.  With
respect to any maturities, calls, conversions, exchanges, redemptions, offers,
tenders or similar matters relating to any of the Collateral (herein called “events”),
the Operating Partnership’s and the Company’s duties shall be fully satisfied
if (i) the Operating Partnership or the Company, as applicable, exercises
reasonable care to ascertain the occurrence and to give reasonable notice to
each Pledgor of any events applicable to any Collateral which are registered
and held in the name of the Operating Partnership or the Company, or its
nominee, (ii) the Operating Partnership or the Company gives each Pledgor
reasonable notice of the occurrence of any events, of which the Operating
Partnership or the Company, as applicable, has received actual knowledge, as to
any securities which are in bearer form or are not registered and held in the
name of the Operating Partnership or the Company, as applicable, or its nominee
(each such Pledgor agreeing to give the Operating Partnership and the Company
reasonable notice of the occurrence of any events applicable to any securities
in the possession of the Operating Partnership or the Company of which any such
Pledgor has received knowledge), and (iii) (a) the Operating
Partnership and the Company endeavor to take such action with respect to any of
the events as any Pledgor may reasonably and specifically request in writing in
sufficient time for such action to be evaluated and taken, or (b) if the
Operating Partnership and the Company reasonably determine that the action
requested might adversely affect the value of the Collateral, the collection of
the Secured Obligations, or otherwise prejudice the interests of the Operating
Partnership or the Company, the Operating Partnership or the Company gives
reasonable notice to the applicable Pledgor that any such requested action will
not be taken and if the Operating Partnership or the Company makes such
determination or if the applicable Pledgor fails to make such timely request,
the Operating Partnership or the Company takes such other action as it deems
advisable in the circumstances.  Except
as hereinabove specifically set forth, the Operating Partnership and the
Company shall have no further obligation to ascertain the occurrence of, or to
notify any Pledgor with respect to, any events and shall not be deemed to
assume any such further obligation as a result of the establishment by the
Operating Partnership or the Company of any internal procedures with respect to
any Collateral in its possession.  Except
for any claims, causes of action or demands arising out of the Operating
Partnership or the Company’s failure to perform its agreements set forth in
this section, each Pledgor releases the Operating Partnership and the Company
from any claims, causes of action and demands at any time arising out of or
with respect to this Agreement, the Collateral and/or any actions taken or
omitted to be taken by the Operating Partnership or the Company with respect
thereto, and each Pledgor hereby agrees to hold the Operating Partnership and
the Company harmless from and with respect to any and all such claims, causes
of action and demands.

 

12.                                 Power of
Attorney.  Each Pledgor hereby appoints the Operating Partnership and the Company to act
during the Indemnification Period as such Pledgor’s attorneys-in-fact for the
purpose of carrying out the provisions of this Agreement and taking any action
and executing any instrument that the Operating Partnership and/or the Company
reasonably may deem necessary or advisable to accomplish the purposes
hereof.  Without limiting the generality
of the foregoing, during the Indemnification Period, the Operating Partnership
and/or the Company shall have the right and power (a) upon application of
any Collateral to satisfy a Secured Obligation, to receive, endorse and collect
all checks and other orders for the payment of money made payable to any
Pledgor representing any interest or other distribution payable in respect of
such Collateral or any part thereof and to give full discharge for the same,
and (b) to execute endorsements, assignments or other instruments of
conveyance or transfer with respect to all or any of the Collateral; provided,  that the Operating Partnership and/or the Company shall
provide written notice to each applicable Pledgor reasonably prior to taking
any such action under the foregoing clauses (a) and (b).

 

13.                                 Representations and Warranties of Pledgors.  Each Pledgor represents and
warrants that (i) it or he has all requisite power and authority or
capacity, as applicable, to enter into this Agreement and to carry out the
transactions contemplated by this Agreement, (ii) this Agreement has been
duly executed and delivered by such Pledgor and constitutes a legal, valid and
binding obligation of such Pledgor, enforceable in accordance with its terms,
and (iii) except for the security interest granted to the Operating

 

6

 

Partnership and the Company hereunder, such Pledgor
is the owner of all legal and beneficial interests in the Pledgor OP Units
and/or the Pledgor Common Shares set forth on Schedule A hereto, owning
such interests free and clear of any Liens.

 

14.                                 Covenants of Pledgors.  Each Pledgor hereby covenants that, until the
release of the Collateral from the pledge granted hereunder pursuant to the
terms of the Indemnification Agreement, he or it shall (i) defend the
Operating Partnership’s and/or the Company’s, as the case may be, right, title
and security interest in and to the Collateral against the claims of any
Person, (ii) at any time, and from time to time, upon the written request
of the Operating Partnership and/or the Company, execute and deliver such
further documents and do such further acts and things as the Operating
Partnership and/or the Company may reasonably request to effect the purposes of
this Agreement, (iii) not grant or convey any Lien on all or any portion
of the Collateral or any interest therein other than the Lien contemplated by
this Agreement, (iv) not sell, assign, pledge or transfer the Collateral
without the prior written consent of the Operating Partnership and the Company
which the Operating Partnership and the Company may grant or withhold in their
sole and absolute discretion, (v) cooperate fully with the Operating
Partnership and the Company in their efforts to preserve the Collateral and to
take such actions to preserve the Collateral as the Operating Partnership and
the Company may in good faith direct, and (vi) deliver immediately any
certificates that may be issued following the date of this Agreement
representing Pledgor Common Shares and/or Pledgor OP Units or other Collateral,
and to execute and deliver one or more transfer powers, in form and content
reasonably satisfactory to the Operating Partnership or the Company (as
directed) to which the Pledgors assign, in blank, such Pledgor Common Shares
and/or Pledgor OP Units and other Collateral.

 

15.                                 Termination.  This Agreement, and the pledge granted
hereunder, shall terminate at the end of the Indemnification Period in
accordance with the terms of the Indemnification Agreement (the “Termination
Date”).  Upon termination of the
Indemnification Period, each Pledgor shall be entitled to, and the Operating
Partnership and the Company promptly shall effect, the return to the applicable
Pledgor of all of the Collateral (and all other cash held as additional
Collateral hereunder) of such Pledgor that has not been used or applied toward
the satisfaction of the Secured Obligations in accordance with the terms hereof
(it being understood, for the sake of clarity, that all Collateral not so used
or applied shall become subject to the foregoing return obligation on and as of
the day following the Termination Date). 
The Operating Partnership and the Company shall take all reasonable
actions to effect and evidence the return of Collateral under this Section 15,
including, without limitation, the filing of UCC termination statements with respect
to, the removal of the recorded pledge on the books of the Operating
Partnership or the Company, as the case may be, and the return to the
applicable Pledgor of certificates, if any, representing the Pledgor OP Unit or
the Pledgor Common Shares of such Pledgor comprising such Collateral.  The assignment by the Operating Partnership
and/or the Company to each applicable Pledgor of such Collateral shall be
without representation or warranty of any nature whatsoever and wholly without
recourse.  Notwithstanding the foregoing,
each Pledgor’s release of the Operating Partnership and/or the Company and
agreement to hold the Operating Partnership and/or the Company harmless set
forth in the last sentence of Section 11 shall survive any return of
Collateral or termination of this Agreement.

 

16.                                 Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and it shall not be
necessary in making proof of this Agreement or the terms of this Agreement to
produce or account for more than one of such counterparts.  All counterparts shall constitute one and the
same instrument.  Each party may execute
this Agreement via a facsimile (or transmission of a .pdf file) of this
Agreement.  In addition, facsimile or .pdf
signatures of authorized signatories of the parties shall be valid and binding
and delivery of a facsimile or .pdf signature by any party shall constitute due
execution and delivery of this Agreement.

 

7

 

17.                                 Governing Law.  This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Delaware,
without regard to the choice of laws provisions thereof.

 

18.                                 No Waiver.                                   No failure on the part of the Operating Partnership or the Company to
exercise, and no delay on the part of the Operating Partnership or the Company
in exercising, any of its options, powers, rights or remedies hereunder, or
partial or single exercise thereof, shall constitute a waiver thereof or preclude
any other or further exercise thereof or the exercise of any other option,
power, right or remedy.

 

19.                                 Assignment.  This Agreement and all of the provisions
hereof shall be binding upon, and shall be enforceable by and inure to the
benefit of, the parties hereto and their respective heirs, legal
representatives, successors and permitted assigns and any reference to a party
shall also be a reference to an heir, legal representative, successor or
permitted assign; provided, however, that this Agreement may not
be assigned (except by operation of law) by any Pledgor without the prior
written consent of the Operating Partnership and the Company, and any attempted
assignment without such consent shall be void and of no effect.  Notwithstanding anything to the contrary
herein, the Operating Partnership and the Company may assign their rights and
obligations hereunder to any affiliate without the prior written consent of the
other parties hereto.

 

20.                                 Titles.  The titles and captions of the Sections and
paragraphs of this Agreement are included for convenience of reference only and
shall have no effect on the construction or meaning of this Agreement.

 

21.                                 Third Party Beneficiary.  Except as may be expressly provided or
incorporated by reference herein, no provision of this Agreement is intended,
nor shall it be interpreted, to provide or create any third party beneficiary
rights or any other rights of any kind in any customer, affiliate, shareholder,
partner, member, director, officer or employee of any party hereto or any other
Person.  All provisions hereof shall be
personal solely among the parties to this Agreement.

 

22.                                 Severability.  If any provision of this Agreement, or the
application thereof, is for any reason held to any extent to be invalid or
unenforceable, the remainder of this Agreement and application of such
provision to other Persons or circumstances shall be interpreted so as
reasonably to effect the intent of the parties hereto.  The parties further agree to replace such
void or unenforceable provision of this Agreement with a valid and enforceable
provision that shall achieve, to the extent possible, the economic, business
and other purposes of the void or unenforceable provision and to execute any
amendment, consent or agreement deemed necessary or desirable to effect such
replacement.  To the extent permitted by
applicable law, the parties waive any provision of applicable law which renders
any provision of this Agreement unenforceable in any respect.

 

23.                                 Interpretation.  This Agreement shall be read and construed in
the English language.  As used in this
Agreement, any reference to the masculine, feminine or neuter gender shall
include all genders, the plural shall include the singular, and singular shall
include the plural.  References herein to
a party or other Person include their respective successors and assigns.  The words “include,” “includes” and “including”
when used herein shall be deemed to be followed by the phrase “without
limitation” unless such phrase otherwise appears.  Unless the context otherwise requires,
references herein to articles, sections, schedules, exhibits and attachments
shall be deemed references to articles and sections of, and schedules, exhibits
and attachments to, this Agreement. 
Unless the context otherwise requires, the words “hereof,” “hereby” and “herein”
and words of similar meaning when used in this Agreement refer to this
Agreement in its entirety and not to any particular article, section or
provision hereof.  Except when used
together with the word “either” or otherwise for the purpose of identifying
mutually exclusive alternatives, the term “or” has the inclusive meaning
represented by the phrase “and/or.”  Any
deadline or time period

 

8

 

set forth in this Agreement that by its terms ends
on a day that is not a Business Day shall be automatically extended to the next
succeeding Business Day.  All references
in this Agreement to “dollars” or “$” shall mean United States dollars.  With regard to each and every term and
condition of this Agreement, the parties understand and agree that the same
have or has been mutually negotiated, prepared and drafted, and that if at any
time the parties desire or are required to interpret or construe any such term
or condition or any agreement or instrument subject thereto, no consideration
shall be given to the issue of which Party actually prepared, drafted or
requested any term or condition of this Agreement.

 

24.                                 Notices.  All notices, requests, demands, waivers and
communications required or permitted to be given under this Agreement shall be
in writing signed by or on behalf of the party making such notice, request,
demand, waiver or communication and shall be deemed to be given (i) on the
day delivered (or if that day is not a Business Day, or if delivered after the
close of business on a Business Day, on the next day that is a Business Day)
when delivered by personal delivery or overnight courier, (ii) on the
third Business Day after mailed by registered or certified mail, postage
prepaid, return receipt requested, or (iii) upon transmission when sent by
facsimile transmission or email transmission (provided that such facsimile or
email is followed by an original of such notice by mail or personal delivery as
provided herein).  Mailed notices shall
be addressed as set forth below, but any party may change the address set forth
below by written notice to other parties in accordance with this paragraph.

 

To the Pledgors:

 

c/o Eola Capital LLC

390 N. Orange Avenue, Suite 2400

Orlando, Florida 32801

Phone: (407) 650-0593

Facsimile:  (407) 650-0597

Email: JHeistand@eolacapital.com and RTouzet@eolacapital.com

Attn:  James Heistand and Rodolfo Prio
Touzet

 

To the Operating Partnership or the Company:

 

c/o Eola Capital LLC

390 N. Orange Avenue, Suite 2400

Orlando, Florida 32801

Phone: (407) 650-0593

Facsimile:  (407) 650-0597

Email: DOReilly@eolacapital.com

Attn:  David O’Reilly

 

with a copy to:

 

Hogan Lovells US LLP

555 Thirteenth Street, N.W.

Washington, DC 20004

Phone: (202) 637-5868

Facsimile: (202) 637-5910

Email: david.bonser@hoganlovells.com

Attn: David W. Bonser

 

9

 

26.                                 Enforcement Costs.  Should the Operating Partnership and/or the
Company, on the one hand, or one or more Pledgors, on the other hand, institute
any Proceeding to enforce the terms of this Agreement, the prevailing party
shall be entitled to receive all reasonable costs and expenses (including
reasonable attorneys’ fees) incurred by such prevailing party in connection
with such Proceeding.  A party entitled
to recover costs and expenses under this Section shall also be entitled to
recover all costs and expenses (including reasonable attorneys’ fees) incurred
in the enforcement of any judgment or settlement obtained in such Proceeding
(and in any such judgment provision shall be made for the recovery of such
post-judgment costs and expenses).

 

27.                                 Amendment; Waiver.  Any amendment hereto shall be in writing and
signed by all parties hereto.  No waiver
of any provisions of this Agreement shall be valid unless in writing and signed
by the party against whom enforcement is sought.  The waiver by any party of the performance of
any act shall not operate as a waiver of the performance of any other act or an
identical act required to be performed at a later time.  Consistent with the foregoing, the waiver by
the Operating Partnership and the Company of any provision of this Agreement
with respect to a particular Pledgor shall not constitute a waiver with respect
to any other Pledgor or otherwise effect the rights and obligations hereunder
with respect to any other Pledgor. 
Except as otherwise provided herein, no action taken pursuant to this
Agreement, including any investigation by or on behalf of any party, shall be
deemed to constitute a waiver by the party taking such action of compliance
with any representations, warranties, covenants or agreements contained in this
Agreement.

 

[Signature Page Follows]

 

10

 

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

 

	
   

  	
  OPERATING PARTNERSHIP

  
	
   

  	
   

  
	
   

  	
  EOLA PROPERTY TRUST, L.P.,

  
	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:     EOLA
  PROPERTY TRUST,

  
	
   

  	
  a
  Maryland  real estate investment trust

  
	
   

  	
   

  
	
   

  	
  Its:  General Partner

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COMPANY

  
	
   

  	
   

  
	
   

  	
  EOLA PROPERTY TRUST, a Maryland
  real estate investment trust

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PLEDGORS

  

 

 

SCHEDULE
A

 

TO

 

PLEDGE
AGREEMENT

 

PLEDGOR
OP UNITS AND PLEDGOR COMMON SHARES

 

	
  PLEDGOR

  	
   

  	
  PLEDGOR OP UNITS AND/OR PLEDGOR

  COMMON SHARESQuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

  Exhibit 4.2    
    

 
    FOURTH AMENDED AND RESTATED
  REGISTRATION RIGHTS AGREEMENT    
    

        THIS FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this
"Agreement") is made as of the 12th day of May, 2005, by and among Tranzyme, Inc., a Delaware corporation (the
"Company"), and each of the current investors listed on Schedule A hereto (each such Investor
being referred to in this Agreement as an "Investor"). 

 
 

RECITALS    
    

        WHEREAS, certain of the Investors (the "Existing
Investors") possess certain registration rights pursuant to that certain Third Amended and Restated Registration Rights Agreement dated as of December 17, 2003 by and
among the Company and such Existing Investors (the "Prior Agreement"); 

        WHEREAS, the Prior Agreement may be amended, and any provision therein waived, with the consent of the Company and the holders of at least
a majority of the Registrable Securities (as defined in the Prior Agreement); 

        WHEREAS, the Company and the Investors are parties to a Series A Preferred Stock Purchase Agreement of even date herewith (the
"Purchase Agreement"); 

        WHEREAS, certain of the Investors have purchased pursuant to the Purchase Agreement Class A Preferred Exchangeable Shares (the
"Class A Preferred Exchangeable Shares") in the share capital of Tranzyme Pharma Inc. (f/k/a Neokimia, Inc.), a corporation created
under and governed by the Canada Business Corporations Act (the "Canadian Company"), or hold shares of
Common Exchangeable Shares (the "Common Exchangeable Shares") in the share capital of the Canadian Company; 

        WHEREAS, pursuant to an Amended and Restated Put and Support Agreement of even date herewith (the "Amended and
Restated Put and Support Agreement") those Investors holding Class A Preferred Exchangeable Shares have the right to acquire shares of the Company's Series A
Preferred Stock (as hereinafter defined) and those Investors holding Common Exchangeable Shares have the right to acquire shares of the Company's Common Stock (as hereinafter defined); 

        WHEREAS, among the conditions precedent to the consummation of the transactions contemplated by the Purchase Agreement is the termination
of the Prior Agreement and the execution and delivery of this Agreement; 

        WHEREAS, in order to induce the Company to enter into the Purchase Agreement and to induce those Investors party to the Purchase Agreement
to invest funds in the Company pursuant to the Purchase Agreement, the Investors and the Company hereby agree that the Prior Agreement shall be superceded and replaced in its entirety by this
Agreement and that this Agreement shall govern the rights of the Investors to cause the Company to register shares of Common Stock issuable to the Investors as set forth in this Agreement; 

        NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS: 

        1.    Definitions.    For purposes of this Agreement: 

        1.1.  The
term "Affiliate" shall mean with respect to any individual, corporation, partnership, association, trust, or any
other entity (in each case, a "Person"), any Person which, directly or indirectly, controls, is controlled by or is under common control with such
Person, including, without limitation any general partner, officer or director of such Person and any venture capital fund now or hereafter existing which is controlled by or under common control with
one or more general partners or shares the same management company with such Person. 

        1.2.  The
term "Certificate of Incorporation" shall mean the Company's Fourth Amended and Restated Certificate of
Incorporation, as amended or restated from time to time. 

 

        1.3.  The
term "Common Stock" shall mean shares of the Company's Class A Voting Common Stock, par value $0.00001 per
share. 

        1.4.  The
term "Conversion Shares" means shares of Common Stock issued or issuable upon the conversion of Preferred Stock. 

        1.5.  The
term "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder. 

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

        1.7.  The
term "GAAP" shall mean generally accepted accounting principles. 

        1.8.  The
term "Holder" shall mean any Person owning or having the right to acquire Registrable Securities or any assignee
thereof in accordance with Section 2.12 hereof. 

        1.9.  The
term "Immediate Family Member" shall mean a child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, including adoptive relationships, of a person referred to herein. 

        1.10.  The
term "Initiating Holders" means, collectively, any Holders who properly initiate a registration request under this
Agreement. 

        1.11.  The
term "IPO" means the Company's first underwritten public offering of its Common Stock under the Securities Act. 

        1.12.  The
term "Preferred Stock" shall mean shares of the Company's Series A Preferred Stock. 

        1.13.  The
term "register," "registered," and
"registration" refer to a registration effected by preparing and filing a registration statement or similar document in compliance with the Securities
Act, and the declaration or ordering of effectiveness of such registration statement or document. 

        1.14.  The
term "Registrable Securities" means (i) the Common Stock issuable or issued upon conversion of the Preferred
Stock, (ii) any Common Stock issued or issuable upon conversion of any capital stock of the Company acquired by the Investors after the date hereof, (iii) the Common Stock issuable or
issued upon conversion of the Preferred Stock issuable or issued upon exchange of Class A Preferred Exchangeable Shares of the Canadian Company pursuant to the Amended and Restated Put and
Support Agreement, (iv) the Common Stock issuable or issued upon exchange of Common Exchangeable Shares of the Canadian Company pursuant to the Amended and Restated Put and Support Agreement
(v) any other shares of Common Stock held by the Investors, and (vi) any Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other
security which is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of the shares referenced in clause (i) and (ii) above, excluding in
all cases, however, any Registrable Securities sold by a person in a transaction in which his rights under Section 2 hereof are not assigned or
any shares for which registration rights have terminated pursuant to Section 2.15 of this Agreement. 

        1.15.  The
term "Registrable Securities then outstanding" means the number of shares determined by adding the number of shares
of Common Stock outstanding which are, and the number of shares of Common Stock issuable pursuant to then exercisable or convertible securities which are, Registrable Securities. 

        1.16.  The
term "SEC" means the Securities and Exchange Commission. 

2

 

        1.17.  The
term "SEC Rule 144" means Rule 144 promulgated by the SEC under the Securities Act. 

        1.18.  The
term "SEC Rule 144(k)" means Rule 144(k) promulgated by the SEC under the Securities Act. 

        1.19.  The
term "SEC Rule 145" means Rule 145 promulgated by the SEC under the Securities Act. 

        1.20.  The
term "Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder. 

        1.21.  The
term "Series A Directors" shall have the meaning assigned to such term in the Certificate of Incorporation. 

        1.22.  The
term "Series A Preferred Stock" means shares of the Company's Series A Preferred Stock, par value
$0.00001 per share. 

        1.23.  The
term "Violation" means losses, claims, damages, or liabilities (joint or several) to which a party hereto may
become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are
based upon any of the following statements, omissions or violations: (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including
any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be
stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by any other party hereto, of the Securities Act, the Exchange Act, any
state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law. 

        2.    Registration Rights.    The Company covenants and agrees as follows: 

        2.1.    Request for Registration.    

        (a)   If
the Company shall receive at any time after the earlier of (i) 5 years after the date of this Agreement or (ii) 180 days after the
effective date of the first registration statement for a public offering of securities of the Company (other than a registration statement relating either to the sale of securities to employees of the
Company pursuant to a stock option, stock purchase or similar plan or a SEC Rule 145 transaction), a written request from a Holder or Holders of Registrable Securities that the Company
file a registration statement under the Securities Act covering the registration of Registrable Securities with an anticipated aggregate offering price of at least $20,000,000, net of
underwriting discounts and commissions, then the Company shall: 

          (i)  within
ten (10) days of the receipt thereof, give written notice of such request to all Holders; 

         (ii)  as
soon as practicable, and in any event within 60 days of the receipt of such request, file a registration statement under the Securities Act covering
all Registrable Securities which the Holders request to be registered, subject to the limitations of subsection 2.1(b), within twenty
(20) days of the mailing of such notice by the Company in accordance with Section 3.5; and 

        (iii)  use
its best efforts to cause such registration statement to be declared effective by the SEC as soon as practicable. 

3

 

        (b)   If
the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a
part of their request made pursuant to subsection 2.1(a) and the Company shall include such information in the written notice referred to in  subsection 2.1(a)
. The underwriter will be selected by the Company and shall be reasonably acceptable to a majority in interest of the Initiating
Holders. In such event, the right of any Holder to include such Holder's Registrable Securities in such registration shall be conditioned upon such Holder's participation in such underwriting and the
inclusion of such Holder's Registrable Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their securities through such underwriting shall (together with
the Company as provided in subsection 2.3(e)) enter into an underwriting agreement in customary form with the underwriter or underwriters
selected for such underwriting. Notwithstanding any other provision of this Section 2.1, if the underwriter advises the Initiating Holders in
writing that marketing factors require a limitation of the number of shares to be underwritten, then the Initiating Holders shall so advise all Holders of Registrable Securities which would otherwise
be underwritten pursuant hereto, and the number of shares of Registrable Securities that may be included in the underwriting shall be allocated among all Holders of Registrable Securities, including
the Initiating Holders, in proportion (as nearly as practicable) to the number of Registrable
Securities owned by each Holder; provided, however, that (i) no Registrable Securities described
in clauses (i) or (iii) of the definition of "Registrable Securities" shall be excluded from such underwriting unless all Registrable Securities described in clauses (ii),
(iv) and (v) of the definition of "Registrable Securities" (and Registrable Securities issued with respect thereto under clause (vi) of the definition of "Registrable Securities")
are first excluded from the underwriting and (ii) the number of shares of Registrable Securities held by the Holders to be included in such underwriting shall not be reduced unless all other
securities are first entirely excluded from the underwriting. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of
shares allocated to any Holder to the nearest 100 shares. 

        (c)   The
Company shall not be obligated to effect, or to take any action to effect, any registration 

        (A)  pursuant
to this Section 2.1: 

          (i)  In
any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such registration, unless the
Company is already subject to service in such jurisdiction and except as may be required under the Securities Act; 

         (ii)  After
the Company has effected two registrations pursuant to this Section 2.1 and such registrations have been
declared or ordered effective; 

        (iii)  If
the Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a
request made pursuant to Section 2.11 below; 

        (iv)  If
the Registrable Securities to be included in the registration statement could be sold without restriction under SEC Rule 144(k) within a ninety
(90) day period and the Company is currently subject to the periodic reporting requirements of Sections 12(g) or 15(d) of the Exchange Act; or 

         (v)  Within
six (6) months of the effectiveness of a registration statement previously effected by the Company pursuant to this  Section 2.1, or 

4

 

        (B)  pursuant
to any other provision of this Agreement: 

          (i)  In
any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such registration, unless the
Company is already subject to service in such jurisdiction and except as may be required under the Securities Act; or 

         (ii)  If
the Registrable Securities to be included in the registration statement could be sold without restriction under SEC Rule 144(k) within a ninety
(90) day period and the Company is currently subject to the periodic reporting requirements of Sections 12(g) or 15(d) of the Exchange Act. 

        (d)   Notwithstanding
the foregoing, if the Company shall furnish to Holders requesting a registration statement pursuant to this  Section 2.1 a certificate signed by the Chief Executive Officer of the Company stating
that in the good faith judgment of the Board of Directors
of the Company it would be materially detrimental to the Company and its stockholders for such registration statement to become effective or to remain effective as long as such registration statement
would otherwise be required to remain effective because such action (x) would materially interfere with a significant acquisition, corporate reorganization or other similar transaction
involving the Company, (y) would require premature disclosure of material information that the Company has a bona fide business purpose for preserving as confidential or (z) would render
the Company unable to comply with requirements under the Securities Act or Exchange Act, the Company shall have the right to defer taking action with respect to such filing for a period of not more
than ninety (90) days after receipt of the request of the Initiating Holders; provided, however,
that the Company may not utilize this right more than twice in any twelve-month period; and provided further that the Company shall not register any
securities for the account of itself or any other stockholder during such ninety (90) day period other than a registration statement relating either to the sale of securities to employees of
the Company pursuant to a stock option, stock purchase or similar plan or an SEC Rule 145 transaction, a registration on any form that does not include substantially the same information as
would be required to be included in a registration statement covering the sale of the Registrable Securities, or a registration in which the only Common Stock being registered is Common Stock issuable
upon conversion of debt securities that are also being registered). 

        A
registration statement shall not be counted until such time as such registration statement has been declared effective by the SEC (unless the Initiating Holders withdraw their request
for such registration (other than as a result of information concerning the business or financial condition of the Company which is made known to the Investors after the date on which such
registration was requested) and elect not to pay the registration expenses therefor pursuant to Section 2.5). A registration statement shall not
be counted if, as a result of an exercise of the underwriter's cut-back provisions, fewer than 50% of the total number of Registrable Securities that Holders have requested to be included
in such registration statement are actually included. 

        2.2.    Company Registration.    If the Company proposes to register (including for this purpose a registration
effected by the Company for stockholders other than the Holders) any of its stock or other securities under the Securities Act in connection with the public offering of such securities solely for cash
(other than: (i) a registration statement relating either to the sale of securities to employees of the Company pursuant to a stock option, stock purchase or similar plan or an SEC
Rule 145 transaction; (ii) a registration on any form which does not include substantially the same information as would be required to be included in a registration statement covering
the sale of the Registrable Securities; or (iii) a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities which are also being
registered), the 

5

 

Company
shall, at such time, promptly give each Holder written notice of such registration. Upon the written request of each Holder given within twenty (20) days after mailing of such notice by
the Company in accordance with Section 3.5, the Company shall, subject to the provisions of  Section 2.7, cause to be registered under the
Securities Act all of the Registrable Securities that each such Holder has requested to be
registered. The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 2.2 prior to the
effectiveness of such registration whether or not any Holder has elected to include securities in such registration. The expenses of such withdrawn registration shall be borne by the Company in
accordance with Section 2.6 hereof. 

        2.3.    Obligations of the Company.    Whenever required under this  Section 2 to effect the registration of any Registrable
Securities, the Company shall, as expeditiously as reasonably possible, 

        (a)   prepare
and file with the SEC a registration statement with respect to such Registrable Securities and use its reasonable best efforts to cause such registration
statement to become effective, and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for a period of up to
one hundred twenty (120) days or, if earlier, until the distribution contemplated in the Registration Statement has been completed; provided,  however,
that (i) such 120-day period shall be extended for a period of time equal to the period the Holder refrains from selling any
securities included in such registration at the request of an underwriter of Common Stock (or other securities) of the Company; and (ii) in the case of any registration of Registrable
Securities on Form S-3 which are intended to be offered on a continuous or delayed basis, subject to compliance with applicable SEC rules, such 120-day period shall be
extended for up to 180 days in the aggregate, if necessary, to keep the registration statement effective until all such Registrable Securities are sold; 

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

        (c)   furnish
to the Holders such numbers of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such
other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them; 

        (d)   use
its reasonable best efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such
jurisdictions as shall be reasonably requested by the Holders; provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to
file a general consent to service of process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the
Securities Act; 

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

        (f)    cause
all such Registrable Securities registered pursuant to this Agreement hereunder to be listed on a national securities exchange or trading system and each
securities exchange and trading system on which similar securities issued by the Company are then listed; 

6

 

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

        (h)   use
its reasonable best efforts to furnish, at the request of any Holder requesting registration of Registrable Securities pursuant to this  Section 2, on the date on which such Registrable Securities
are sold to the underwriter, (i) an opinion, dated such date, of the counsel
representing the Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering, addressed to the underwriters, if any,
and (ii) a "comfort" letter dated such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public
accountants to underwriters in an underwritten public offering, addressed to the underwriters, if any. 

        2.4.    Furnish Information.    It shall be a condition precedent to the obligations of the Company to take any action
pursuant to this Section 2 with respect to the Registrable Securities of any selling Holder that
such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as shall be reasonably
required to effect the registration of such Holder's Registrable Securities. 

        2.5.    Expenses of Demand Registration.    All expenses other than underwriting discounts and commissions incurred in
connection with registrations, filings or qualifications pursuant to Section 2.1, including (without limitation) all registration, filing and
qualification fees, printers' and accounting fees, fees and disbursements of counsel for the Company and the reasonable fees and disbursements of one counsel for the selling Holders shall be borne by
the Company; provided, however, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant
to Section 2.1 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to
be registered (in which case all participating Holders shall bear such expenses pro rata based upon the number of Registrable Securities that were to be included in the withdrawn registration), unless
the Holders of a majority of the Registrable Securities agree to forfeit their right to one demand registration pursuant to Section 2.1; provided
further, however, that if at the time of such withdrawal, the Holders have learned of a material adverse change in the condition, business, or prospects of the Company from that known to the Holders
at the time of their request and, upon the advise of legal counsel, have withdrawn the request with reasonable promptness after learning of such information, then the Holders shall not be required to
pay any of such expenses and shall retain their rights pursuant to Section 2.1. 

        2.6.    Expenses of Company Registration.    The Company shall bear and pay all expenses incurred in connection with
any registration, filing or qualification of Registrable Securities with respect to the registrations pursuant to Section 2.2 hereof for each
Holder (which right may be assigned as provided in Section 2.12 hereof), including (without limitation) all registration, filing, and
qualification fees, printers and accounting fees relating or apportionable thereto and the reasonable fees and disbursements of one counsel for the selling Holders selected by them, but excluding
underwriting discounts and commissions relating to Registrable Securities. 

        2.7.    Underwriting Requirements.    In connection with any offering involving an underwriting of shares of the
Company's capital stock pursuant to Section 2.2, the Company shall not be required to include any of the Holders' securities in such underwriting
unless they accept the terms of the underwriting as agreed upon between the Company and its underwriters, and then only in such quantity as the underwriters determine in their sole discretion will not
jeopardize the success of the offering by the Company. If the total number of securities, including Registrable Securities, requested by stockholders to be included in such offering exceeds the amount
of securities to be 

7

 

sold
other than by the Company that the underwriters determine in their reasonable discretion is compatible with the success of the offering, then the Company shall be required to include in the
offering only that number of such securities, including Registrable Securities, which the underwriters and the Company determine in their sole discretion will not jeopardize the success of the
offering. In no event shall any Registrable Securities be excluded from such offering unless all other stockholders' securities have been first excluded. In the event that the underwriters determine
that less than all of the Registrable Securities requested to be registered can be included in such offering, then the
Registrable Securities that are included in such offering shall be apportioned pro rata among the selling Holders based on the number of Conversion Shares held by all selling Holders or in such other
proportions as shall mutually be agreed to by all such selling Holders. Notwithstanding the foregoing, in no event shall (i) the amount of securities of the selling Holders included in the
offering be reduced below thirty-five percent (35%) of the total amount of securities included in such offering, unless such offering is the Company's IPO in which case the selling Holders
may be excluded beyond this amount if the underwriters make the determination described above and no other stockholder's securities are included in such offering or (ii) notwithstanding
(i) above, any Registrable Securities described in clauses (i) and (iii) of the definition of "Registrable Securities" shall not be excluded from such underwriting unless all
Registrable Securities described in clauses (ii), (iv) and (v) of the definition of "Registrable Securities" (and Registrable Securities issued with respect thereto under
clause (vi) of the definition of "Registrable Securities") are first excluded from such offering. For purposes of the preceding parenthetical concerning apportionment, for any selling
stockholder which is a Holder of Registrable Securities and which is an investment fund, partnership, limited liability company or corporation, the partners, members, retired partners, retired
members, stockholders and Affiliates of such Holder, or the estates and family members of any such partners, retired partners, members and retired members and any trusts for the benefit of any of the
foregoing persons shall be deemed to be a single "selling Holder", and any pro-rata reduction with respect to such "selling Holder" shall be based upon the aggregate amount of shares
carrying registration rights owned by all entities and individuals included in such "selling Holder," as defined in this sentence. 

        2.8.    Delay of Registration.    No Holder shall have any right to obtain or seek an injunction restraining or
otherwise delaying any registration pursuant to this Agreement as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 2. 

        2.9.    Indemnification.    In the event any Registrable Securities are included in a registration statement under
this Section 2: 

        (a)   To
the extent permitted by law, the Company will indemnify and hold harmless each Holder, the partners, members, officers, directors and stockholders of each Holder,
legal counsel and accountants for each Holder, any underwriter (as defined in the Securities Act) for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of
the Securities Act or the Exchange Act, against any Violation and the Company will pay to each such Holder, underwriter, controlling person or other aforementioned person, any legal or other expenses
reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability, or action as such expenses are incurred;  provided, however, that the indemnity agreement contained in this  subsection 2.9(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability,
or action if such settlement is
effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim, damage, liability, or action
to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such
registration by any such Holder, underwriter, controlling person or other aforementioned person. 

8

 

 

        (b)   To
the extent permitted by law, each selling Holder will severally and not jointly indemnify and hold harmless the Company, each of its directors, each of its officers
who has signed the registration statement, each person, if any, who controls the Company within the meaning of the Securities Act, legal counsel and accountants for the Company, any underwriter, any
other Holder selling securities in such registration statement and any controlling person of any such underwriter or other Holder, against any losses, claims, damages, or liabilities (joint or
several) to which any of the foregoing persons may become subject, under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or
actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written
information furnished by such Holder expressly for use in connection with such registration; and each such Holder will pay any legal or other expenses reasonably incurred by any person intended to be
indemnified pursuant to this subsection 2.9(b), in connection with investigating or defending any such loss, claim, damage, liability, or action;  provided, however, that the indemnity agreement contained in this  subsection 2.9(b) shall not apply to amounts paid in settlement of any such loss,
claim, damage, liability or action if such settlement is
effected without the consent of the Holder, which consent shall not be unreasonably withheld; provided, further, that, in no event shall any indemnity under this  subsection 2.9(b) exceed the net
proceeds from the offering received by such Holder, except in the case of fraud or willful misconduct by such
Holder. 

        (c)   Promptly
after receipt by an indemnified party under this Section 2.9 of notice of the commencement of any action
(including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this  Section 2.9, deliver to the indemnifying
party a written notice of the commencement thereof and the indemnifying party shall have the right to
participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to
the parties; provided, however, that an indemnified party (together with all other indemnified parties
which may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of
such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party
represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such
indemnifying party of any liability to the indemnified party under this Section 2.9 only if such delay is materially prejudicial to the
indemnifying party, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this  Section 2.9. 

        (d)   In
order to provide for just and equitable contribution to joint liability under the Securities Act in any case in which either (i) any Holder exercising rights
under this Agreement, or any controlling person of any such Holder, makes a claim for indemnification pursuant to this Section 2.9 but it is
judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such
indemnification may not be enforced in such case notwithstanding the fact that this Section 2.9 provides for indemnification in such case, or
(ii) contribution under the Securities Act may be required on the part of any such selling Holder or any such controlling person in circumstances for which indemnification is provided under
this Section 2.9, then, and in each such case, the Company and such Holder will contribute to the aggregate losses, claims, damages or
liabilities to which they may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative 

9

 

fault
of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage, or
expense as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by 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; provided
however, that, in any such case, (I) no such Holder will be required to contribute any amount in excess of the public offering price of all such Registrable Securities
offered and sold by such Holder pursuant to such registration statement, and (II) no person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) will be entitled to contribution from any person or entity who was not guilty of such fraudulent misrepresentation; provided further, that in no event shall a Holder's liability
pursuant to this Section 2.9(d), when combined with the amounts paid or payable by such holder pursuant to  Section 2.9(b), exceed the proceeds
from the offering (net of any underwriting discounts or commissions) received by such Holder, except in the
case of willful fraud by such Holder. 

        (e)   Notwithstanding
the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection
with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control. 

        (f)    Unless
otherwise superseded by an underwriting agreement entered into in connection with the underwritten public offering, the obligations of the Company and Holders
under this Section 2.9 shall survive the completion of any offering of Registrable Securities in a registration statement under this  Section 2,
and otherwise and shall survive the termination of this Agreement. 

        2.10.    Reports Under Exchange Act.    With a view to making available to the Holders the benefits of Sec
Rule 144 promulgated under the Securities Act and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without
registration or pursuant to a registration on Form S-3, the Company agrees to: 

        (a)   make
and keep public information available, as those terms are understood and defined in SEC Rule 144, at all times after the effective date of the first
registration statement filed by the Company for the offering of its securities to the general public so long as the Company is subject to the periodic reporting requirements under Sections 13
or 15(d) of the Exchange Act; 

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

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

10

 

        2.11.    Form S-3 Registration.    In case the Company shall receive from a Holder a written
request or requests that the Company effect a registration on Form S-3 and any related qualification or compliance with respect to all or a part of the Registrable Securities owned
by such Holder or Holders, the Company will: 

        (a)   promptly
give written notice of the proposed registration, and any related qualification or compliance, to all other Holders; and 

        (b)   as
soon as practicable, effect such registration and all such qualifications and compliances as may be so requested and as would permit or facilitate the sale and
distribution of all or such portion of such Holder's or Holders' Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any other
Holder or Holders joining in such request as are
specified in a written request given within 15 days after receipt of such written notice from the Company; provided,  however, that the Company shall
not be obligated to effect any such registration, qualification or compliance, pursuant to this
Section 2.11: (1) if Form S-3 is not then available for such offering by the Holders; (2) if the Holders,
together with the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at an aggregate
price to the public (net of any underwriters' discounts or commissions) of less than $1,000,000; (3) if the Company shall furnish to the Holders a certificate signed by the President of the
Company stating that in the good faith judgment of the Board of Directors of the Company, it would be materially detrimental to the Company and its stockholders for such Form S-3
Registration to be effected at such time, in which event the Company shall have the right to defer the filing of the Form S-3 registration statement for a period of not more than
one hundred twenty (120) days after receipt of the request of the Holder or Holders under this Section 2.11;  provided, however, that the Company shall not utilize this right more than once in any twelve month
period and provided further that the Company shall not register any securities for the account of itself or any other stockholder during such one hundred twenty (120) day period (other than a
registration relating solely to the sale of securities of participants in a Company stock plan, a registration relating to a corporate reorganization or transaction under Rule 145 of the
Securities Act, a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable
Securities, or a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered); (4) if the Company
has, within the twelve (12) month period preceding the date of such request, already effected two registrations on Form S-3 for the Holders pursuant to this  Section 2.11; (5) in any
particular jurisdiction in which the Company would be required to qualify to do business or to execute a general
consent to service of process in effecting such registration, qualification or compliance; or (6) during the period ending one hundred eighty (180) days after the effective date of a
registration statement subject to Section 2.2 hereof. 

        (c)   Subject
to the foregoing, the Company shall file a registration statement covering the Registrable Securities and other securities so requested to be registered
as soon as practicable after receipt of the request or requests of the Holders. All expenses incurred in connection with a registration requested pursuant to  Section 2.11, including (without
limitation) all registration, filing, qualification, printer's and accounting fees and the reasonable fees and
disbursements of counsel for the selling Holder or Holders and counsel for the Company, but excluding any underwriters' discounts or commissions associated with Registrable Securities, shall be borne
by the Company. Registrations effected pursuant to this Section 2.11 shall not be counted as demands for registration or registrations effected
pursuant to Sections 2.1. 

11

 

        (d)   If
the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as part
of their request made pursuant to this Section 2.11 and the Company shall include such information in the written notice referred to in  Section 2.11(a). The provisions of Section 2.1(b) shall be applicable to such request
(with the substitution of Section 2.11 for references to Section 2.1). 

        2.12.    Assignment of Registration Rights.    The rights to cause the Company to register Registrable Securities
pursuant to this Section 2 may be assigned (but only with all related obligations) by a Holder to a transferee or assignee of such securities
that (i) is a subsidiary, Affiliate, parent, partner, member, limited partner, retired partner, retired member or stockholder of a Holder, (ii) is a Holder's Immediate Family Member or
trust for the benefit of an individual Holder or such Holder's Immediate Family Member, or (iii), after such assignment or transfer, such transferee or assignee holds at least twenty-five
percent (25%) of the shares of Registrable Securities (subject to appropriate adjustment for stock splits, stock dividends, combinations and other recapitalizations) currently held by such Holder,
provided: (a) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee or assignee and the securities with respect
to which such registration rights are being assigned; (b) such transferee or assignee agrees in writing to be bound by and subject to the terms and conditions of this Agreement, including
without limitation the provisions of Section 2.13 below; and (c) such assignment shall be effective only if immediately following such
transfer the further disposition of such securities by the transferee or assignee is restricted under the Securities Act. For the purposes of determining the number of shares of Registrable Securities
held by a transferee or assignee, the holdings of transferee or assignee (i) that is a subsidiary, parent, partner, limited partner, retired partner, member, retired member or stockholder of a
Holder; (ii) that is an Affiliate of the Holder, which means with respect to a limited liability company or a limited liability partnership, a fund or entity managed by the same manager or
managing member or general partner or management company or by an entity controlling, controlled by, or under common control with such manager or managing member or general partner or management
company, (iii) who is a Holder's Immediate Family Member, or (iv) that is a trust for the benefit of an individual Holder or such Holder's Immediate Family Member, shall be aggregated
together and with those of the assigning Holder; provided that all assignees and transferees who would not qualify individually for assignment of registration rights shall have a single
attorney-in-fact for the purpose of exercising any rights, receiving notices or taking any action under this Section 2. 

        2.13.    "Market Stand-Off" Agreement.    Each Holder hereby agrees that it will not, without the prior
written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to the Company's IPO and ending on the date specified by the Company and the
managing underwriter (such period not to exceed one hundred eighty (l80) days, except that such one-hundred eighty (180) day period may be extended on one occasion by the managing
underwriter to the extent necessary to prevent the managing underwriter(s) from violating Section 2711(f)(4) of the rules of the National Association of Securities Dealers, Inc.
(e.g., as the result of the publication or other distribution of a research report or public appearance concerning the Company)) (i) lend, offer,
pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of,
directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock held immediately prior to the effectiveness of the Registration
Statement for such offering, or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Common Stock,
whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or other securities, in cash or otherwise. The foregoing provisions of
this Section 2.13 shall apply only to the Company's IPO, shall not apply to the sale of any shares to an underwriter pursuant to an underwriting
agreement, 

12

 

and
shall only be applicable to the Holders if all officers, directors and greater than one percent (1%) stockholders of the Company enter into similar agreements with the same lock-up
period. The underwriters in connection with the Company's IPO are intended third-party beneficiaries of this Section 2.13 and shall have the
right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Holder further agrees to execute such agreements as may be reasonably requested by the underwriters
in the Company's IPO that are consistent with this Section 2.13 or that are necessary to give further effect thereto. Any discretionary waiver or
termination of the restrictions of any or all of such agreements by the Company or the underwriters shall apply to all Holders subject to such agreements pro rata based on the number of shares of
Common Stock and Conversion Shares subject to such agreements. 

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

        2.14.    Termination of Registration Rights.    

        (a)   No
Holder shall be entitled to exercise any right provided for in this Section 2 after five (5) years following the consummation of the IPO. 

        (b)   The
rights set forth in this Section 2 shall terminate as to any Holder, when the Registrable Securities held by
such Holder (together with any Affiliate of such Holder with whom such Holder must
aggregate its sales under SEC Rule 144) could be sold without restriction under SEC Rule 144(k) within a ninety (90) day period. 

        2.15.    Additional Registration Rights.    From and after the date of this Agreement, the Company shall not, without
the prior written consent of the Holders of at least a majority of the Registrable Securities, enter into any agreement (other than this Agreement) with any holder or prospective holder of any
securities of the Company which would allow such holder or prospective holder (a) to include such securities in any registration unless under the terms of such agreement, such holder or
prospective holder may include such securities in any such registration only to the extent that the inclusion of such securities will not reduce the amount of the Registrable Securities of the
Investors that are included or (b) to demand registration of any securities held by such holder or prospective holder. 

        3.    Miscellaneous.    

        3.1.    Transfers, Successors and Assigns.    The terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their
respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. 

        3.2.    Governing Law.    This Agreement shall be governed by and construed in accordance with the General Corporation
Law of the State of Delaware, without regard to its principles of conflicts of laws. 

        3.3.    Counterparts.    This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. This Agreement may also be executed and delivered by facsimile signature and in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

        3.4.    Titles and Subtitles.    The titles and subtitles used in this Agreement are used for convenience only and are
not to be considered in construing or interpreting this Agreement. 

13

 

        3.5.    Notices.    All notices and other communications given or made pursuant to this Agreement shall be in writing
and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business
hours of the recipient, and if not so confirmed, then on the next business day, so long as, in each case, a copy of such notice is delivered in accordance with clause (a), (c) or
(d) within two (2) days thereafter, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one
(1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the respective
parties at their address as set forth on the signature page or Schedule A hereto, or to such email address, facsimile number or address as
subsequently modified by written notice given in accordance with this Section 3.5. If notice is given to the Investors, a copy shall also be sent
to Goodwin Procter LLP, 53 State Street, Boston, MA 02109, Attention: Mitchell S. Bloom. If notice is given to the Company, a copy shall also be sent to Hutchison + Mason PLLS,
3110 Edwards Mill Road, Suite 100, Raleigh, NC, 27612, Attention: Fred D. Hutchison. 

        3.6.    Amendments and Waivers.    Any term of this Agreement may be amended and the observance of any term of this
Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the Holders of at least a majority of
the Registrable Securities. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each holder of any Registrable Securities then outstanding, each future holder of
all such Registrable Securities, the Company and all of their respective successors and permitted assigns. Notwithstanding the foregoing, (i) no amendment or waiver may treat one Investor or
group of Investors more adversely than any other Investor or group of Investors without the consent of such Investor or the consent of the holders of a majority of the Registrable Securities of the
group of Investors adversely affected by such amendment or waiver, and (ii) no waiver of the rights of the Investors hereunder shall require the consent of the Company. The Company shall give
prompt written notice of any amendment or termination hereof or waiver hereunder to any party hereto that did not consent in writing to such amendment, termination or waiver. Any amendment,
termination or waiver effected in accordance with this Section 3.6 shall be binding on all parties hereto, even if they do not execute such
consent. No waivers of or exceptions to any term, condition or provision of this Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any
such term, condition or provision. 

        3.7.    Severability.    The invalidity of unenforceability of any provision hereof shall in no way affect the
validity or enforceability of any other provision. 

        3.8.    Aggregation of Stock.    All shares of Registrable Securities held or acquired by Affiliates shall be
aggregated together for the purpose of determining the availability of any rights under this Agreement. 

        3.9.    Entire Agreement; Termination of Prior Agreement.    This Agreement (including the Exhibits hereto, if any)
constitutes the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof
existing between the parties are expressly canceled. Upon the effectiveness of this Agreement, the Prior Agreement shall terminate and be of no further force and effect, and shall be superceded and
replaced in its entirety by this Agreement. 

        3.10    Transfers of Rights.    Each Investor hereto hereby agrees that it will not, and may, not assign any of its
rights and obligations hereunder, unless such rights and obligations are assigned by such Investor to (a) any person or entity to which Registrable Securities are transferred by such Investor,
or (b) to any Affiliate of such Investor, and, in each case, such transferee shall be 

14

 

deemed
an "Investor" for purposes of this Agreement; provided that such assignment of rights shall be contingent upon the transferee providing a written
instrument to the Company notifying the Company of such transfer and assignment and agreeing in writing to be bound by the terms of this Agreement. 

        3.11    Additional Investors.    Notwithstanding Section 2.15, no consent shall be necessary to add additional
Investors as signatories to this Agreement, provided that such Investors have acquired shares of Preferred Stock pursuant to the Purchase Agreement. 

        3.12    Delays or Omissions.    No delay or omission to exercise any right, power or remedy accruing to any party
under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting
party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any
single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any
party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the
extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative. 

        [Remainder
of Page Intentionally Left Blank] 

15

  
[Signature page to Fourth Amended and Restated Registration Rights Agreement] 

        IN
WITNESS WHEREOF, the parties have executed this Fourth Amended and Restated Registration Rights Agreement as of the date first above written. 

 

 

					
	 
	 	 COMPANY:
	 
	 	  TRANZYME, INC.

	 
	 	 By:
	 	 /s/ Vipin K. Garg

 
	 
	 	 	 	Name: Vipin K. Garg, PhD
	 
	 	 	 	Title: President and Chief Executive Officer
	 
	 	   INVESTORS:

	 
	 	  THOMAS, MCNERNEY & PARTNERS, L.P.

	 
	 	 By:
	 	 /s/ James E. Thomas

 
	 
	 	 	 	Name: James E. Thomas
	 
	 	 	 	Title: Managing Partner
	 
	 	 TMP NOMINEE, LLC

	 
	 	 By:
	 	 /s/ James E. Thomas

 
	 
	 	 	 	Name: James E. Thomas
	 
	 	 	 	Title: Managing Partner
	 
	 	 TMP ASSOCIATES, L.P.

	 
	 	 By:
	 	 /s/ James E. Thomas

 
	 
	 	 	 	Name: James E. Thomas
	 
	 	 	 	Title: Managing Partner
	 
	 	 QUAKER BIOVENTURES, L.P.

	 
	 	 By:
	 	 QUAKER BIOVENTURES CAPITAL, L.P.,

its general partner

	 
	 	 By:
	 	 QUAKER BIOVENTURES CAPITAL, LLC,

its general partner

	 
	 	 By:
	 	 /s/ R. Eric Emrich

 
	 
	 	 	 	Name: R. Eric Emrich
	 
	 	 	 	Title: CFO/VP

 

 Tranzyme, Inc.

Fourth Amended and Restated Registration Rights Agreement

- Signature Page -

 

 

					
	 
	 	HIG VENTURES—TRANZYME, INC.
	 
	 	 By:
	 	 /s/ Tony Tamer

 
	 
	 	 	 	Name: Tony Tamer
	 
	 	 	 	Title: General Partner
	 
	 	 PARADIGM VENTURE PARTNERS I, L.L.C.

	 
	 	 By:
	 	 /s/ Roddy J.H. Clark

 
	 
	 	 	 	Name: Roddy J.H. Clark
	 
	 	 	 	Title: Manager
	 
	 	 RESEARCH TRIANGLE VENTURES, L.P.

	 
	 	 By:
	 	 /s/ F.M. Whitmeyer, Jr.

 
	 
	 	 	 	Name: F.M. Whitmeyer, Jr.
	 
	 	 	 	Title: General Partner

 

 

 

 

							
	 
	 	 
	 	 
	 	 

	 
	 	PACIFIC RIM VENTURES CO., LTD. (ACTING FOR AND ON BEHALF OF PACIFIC RIM LIFE SCIENCE NO.1 INVESTMENT PARTNERSHIP)
	 
	 	 By:
	 	 /s/ Masahiro Michishita, M.D., Ph.D.

 
	 
	 	 	 	Name:	 	Masahiro Michishita, M.D., Ph.D.
	 
	 	 	 	Title:	 	Managing General Partner
	 
	 	  PACIFIC RIM VENTURES CO., LTD. (ACTING FOR AND ON BEHALF OF PACIFIC RIM AQUA LIFE SCIENCE NO. 1 INVESTMENT
PARTNERSHIP)

	 
	 	 By:
	 	 /s/ Masahiro Michishita, M.D., Ph.D.

 
	 
	 	 	 	Name:	 	Masahiro Michishita, M.D., Ph.D.
	 
	 	 	 	Title:	 	Managing General Partner
	 
	 	  PACIFIC RIM VENTURES CO., LTD. (ACTING FOR AND ON BEHALF OF PACIFIC RIM AQUA LIFE SCIENCE NO. 2 INVESTMENT
PARTNERSHIP)

	 
	 	 By:
	 	 /s/ Masahiro Michishita, M.D., Ph.D.

 
	 
	 	 	 	Name:	 	Masahiro Michishita, M.D., Ph.D.
	 
	 	 	 	Title:	 	Managing General Partner
	 
	 	  PACIFIC RIM VENTURES CO., LTD. (ACTING FOR AND ON BEHALF OF PACIFIC RIM AQUA LIFE SCIENCE NO. 3 INVESTMENT
PARTNERSHIP)

	 
	 	 By:
	 	 /s/ Masahiro Michishita, M.D., Ph.D.

 
	 
	 	 	 	Name:	 	Masahiro Michishita, M.D., Ph.D.
	 
	 	 	 	Title:	 	Managing General Partner

 

 

 

 

							
	 
	 	 
	 	 
	 	 

	 
	 	PACIFIC RIM VENTURES CO., LTD. (ACTING FOR AND ON BEHALF OF PACIFIC RIM AQUA LIFE SCIENCE NO. 4 INVESTMENT PARTNERSHIP)
	 
	 	 By:
	 	 /s/ Masahiro Michishita, M.D., Ph.D.

 
	 
	 	 	 	Name:	 	Masahiro Michishita, M.D., Ph.D.
	 
	 	 	 	Title:	 	Managing General Partner
	 
	 	  PACIFIC RIM VENTURES CO., LTD. (ACTING FOR AND ON BEHALF OF PACIFIC RIM LIFE SCIENCE NO. 6 INVESTMENT PARTNERSHIP)

	 
	 	 By:
	 	 /s/ Masahiro Michishita, M.D., Ph.D.

 
	 
	 	 	 	Name:	 	Masahiro Michishita, M.D., Ph.D.
	 
	 	 	 	Title:	 	Managing General Partner

 

 

 

							
	 	 	S.C.O.U.T. CORPORATION (FOR AND ON BEHALF OF S.C.O.U.T. HEALTH CARE FUND, L.P.)
	

 	
 	
 By:	
 	
/s/ Lawrence W. Greer

  Name: Lawrence W. Greer

Title: President
	

 	
 	
THE ECONOMIC DEVELOPMENT PARTNERSHIP OF ALABAMA, INC.
	

 	
 	
By:	
 	
/s/ David O. Brown

  David O. Brown

Chief Financial Officer
	

 	
 	
SNBL, LTD.
	

 	
 	
By:	
 	
 

  Ryoichi Nagata, M.D., Ph.D, FFPM

President & CEO
	

 	
 	
TREBLE RANGE PARTNERS II, LLC
	

 	
 	
 By:	
 	
 

  Steven Dauphin
	 	 	 	 	Its:	 	  

 
	

 	
 	
QUARK BIOTECH INC.
	

 	
 	
 By:	
 	
/s/ Dr. Daniel Zurr

  Dr. Daniel Zurr,

President & Chief Executive Officer
	

 	
 	
/s/ Dr. Pierre Deslongchamps

  DR. PIERRE DESLONGCHAMPS
	

 	
 	
UNIVERSITÉ DE SHERBROOKE
	

 	
 	
per:	
 	
/s/ Michele Desrochers

  Name: Michele Desrochers

Title: Director, Bleu

 

 

 

 

							
	

 	
 	
SOCIÉTÉ INNOVATECH DU SUD DU QUÉBEC
	

 	
 	
per:	
 	
/s/ Daniel Poisson

  Name: Daniel Poisson

Title: President and CEO
	

 	
 	
BUSINESS DEVELOPMENT BANK OF CANADA
	

 	
 	
 per:	
 	
/s/ Jean-Francois Pariseau

  Name: Jean-Francois Pariseau

Title: Director, Venture Capital

 

 

 

					
	 
	 	DESJARDINS VENTURE CAPITAL INC.

(ACTING FOR AND ON BEHALF OF DESJARDINS VENTURE CAPITAL, L.P.)
	 
	 	 per:
	 	 illegible

 
	 
	 	 	 	Name:
	 
	 	 	 	Title:
	 
	 	 per:
	 	 illegible

 
	 
	 	 	 	Name:
	 
	 	 	 	Title:
	 
	 	 DESJARDINS CAPITAL DE DÉVELOPPEMENT ESTRIE INC.

	 
	 	 per:
	 	 illegible

 
	 
	 	 	 	Name:
	 
	 	 	 	Title:
	 
	 	 per:
	 	 illegible

 
	 
	 	 	 	Name:
	 
	 	 	 	Title:
	 
	 	 CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS

	 
	 	 per:
	 	 illegible

 
	 
	 	 	 	Name:
	 
	 	 	 	Title:
	 
	 	 per:
	 	 illegible

 
	 
	 	 	 	Name:
	 
	 	 	 	Title:
	 
	 	 FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.)

	 
	 	 per:
	 	 /s/ J. Roy

 
	 
	 	 	 	Name: J. Roy
	 
	 	 	 	Title: Investment Director

 

 

   COUNTERPART  

        THIS
INSTRUMENT forms part of the Fourth Amended and Restated Registration Rights Agreement (the "Agreement") made on the
12th day of May, 2005, by and among Tranzyme, Inc., a Delaware corporation, and certain investors set forth on  Schedule A thereto, which Agreement permits execution by
counterpart. The undersigned hereby acknowledges having received a copy of the said
Agreement (which is annexed hereto as Schedule I) and having read the said Agreement in its entirety, and for good and valuable consideration, receipt and sufficiency of which is hereby
acknowledged, hereby agrees that the terms and conditions of said Agreement shall be binding upon the undersigned and such terms and conditions shall enure to the benefit of and be binding upon the
undersigned, his heirs, executors, administrators, successors and permitted assigns. 

        IN WITNESS WHEREOF, the undersigned has executed this instrument this 25th day of October, 2007. 

 

 

			
	 	 	/s/ David J. Drutz

  David J. Drutz, M.D.

 

 Tranzyme, Inc.

Fourth Amended and Restated Registration Rights Agreement

- Signature Page -  

 COUNTERPART  

        THIS
INSTRUMENT forms part of the Fourth Amended and Restated Registration Rights Agreement (the "Agreement") made on the
12th day of May, 2005, by and among Tranzyme, Inc., a Delaware corporation, and certain investors set forth on  Schedule A thereto, which Agreement permits execution by
counterpart. The undersigned hereby acknowledges having received a copy of the said
Agreement (which is annexed hereto as Schedule I) and having read the said Agreement in its entirety, and for good and valuable consideration, receipt and sufficiency of which is hereby
acknowledged, hereby agrees that the terms and conditions of said Agreement shall be binding upon the undersigned and such terms and conditions shall enure to the benefit of and be binding upon the
undersigned, his heirs, executors, administrators, successors and permitted assigns. 

        IN WITNESS WHEREOF, the undersigned has executed this instrument this 25th day of October, 2007. 

 

 

					
	 	 	PACIFIC RIM VENTURES US EQUITIES
	

 	
 	
By:	
 	
/s/ David J. Drutz

 
	 	 	Name: David J. Drutz, M.D.
	 	 	Title: Partner

 

 

 COUNTERPART  

        THIS INSTRUMENT forms part of the Fourth Amended and Restated Registration Rights Agreement (the
"Agreement") made on the 12th day of May, 2005, by and among Tranzyme, Inc., a Delaware corporation, and certain investors
set forth on Schedule A thereto, which Agreement permits execution by counterpart. The undersigned hereby acknowledges having received a copy of
the said Agreement (which is annexed hereto as Schedule I) and having read the said Agreement in its entirety, and for good and valuable consideration, receipt and sufficiency of which is
hereby acknowledged, hereby agrees that the terms and conditions of said Agreement shall be binding upon the undersigned and such terms and conditions shall enure to the benefit of and be binding upon
the undersigned, his heirs, executors, administrators, successors and permitted assigns. 

        IN WITNESS WHEREOF, the undersigned has executed this instrument this 24th day of October, 2007. 

 

 

			
	 	 	/s/ Seth Pincus

  Dr. Seth Pincus

 

 

 

SCHEDULE A  

 INVESTORS  

 

 

																	
	Name and Address

 
	 	Number of

Common

Exchangeable

Shares 	 	Number of

Class A Preferred

Exchangeable

Shares* 	 	Number of

Shares of

Class A Voting

Common Stock 	 	Number of

Shares of

Series A

Preferred Stock* 	 	TOTAL 	 
	 

 Thomas McNerney & Partners, L.P.
	 	 	 	 	 	 	 	 	 	 	 	6,500,000	 	 	6,500,000	 
	 

 TMP Nominee, LLC
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

 TMP Associates, L.P.

c/o Thomas, McNerney & Partners

One Stamford Plaza

263 Tresser Boulevard, 16th Floor

Stamford, CT 06901
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Quaker Bioventures, L.P.
	 	 	 	 	 	 	 	 	 	 	 	

6,500,000	 	 	

6,500,000	 
	 Quaker Bioventures Capital, L.P.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Quaker Bioventures Capital, LLC

c/o Quaker BioVentures

Two Greenville Crossing

4005 Kennett Pike, Suite 220

Greenville, DE 19807
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

 HIG Ventures—Tranzyme, Inc.

c/o HIG Ventures

1001 Brickell Bay Drive, 27th Floor

Miami, FL 33131
	 	 	 	 	 	 	 	 	 	 	 	

6,500,000	 	 	

6,500,000	 
	 Pacific Rim Life Science No. 1 Investment Partnership

c/o Pacific Rim Ventures Co., Ltd.

2nd Floor, Green Plaza

3-7-20, Komazawa, Setagaya-ku

Tokyo 154-0012

Japan
	 	 	 	 	 	 	 	 	

148,947	 	 	 	 	 	

148,947	 

 

 A-1

 

 

																	
	Name and Address

 
	 	Number of

Common

Exchangeable

Shares 	 	Number of

Class A Preferred

Exchangeable

Shares* 	 	Number of

Shares of

Class A Voting

Common Stock 	 	Number of

Shares of

Series A

Preferred Stock* 	 	TOTAL 	 
	 Pacific Rim Aqua Life Science No. 1 Investment Partnership

c/o Pacific Rim Ventures Co., Ltd.

2nd Floor, Green Plaza

3-7-20, Komazawa, Setagaya-ku

Tokyo 154-0012

Japan
	 	 	 	 	 	 	 	 	 	 	 	359,500	 	 	359,500	 
	 Pacific Rim Aqua Life Science No. 2 Investment Partnership

c/o Pacific Rim Ventures Co., Ltd.

2nd Floor, Green Plaza

3-7-20, Komazawa, Setagaya-ku

Tokyo 154-0012

Japan
	 	 	 	 	 	 	 	 	 	 	 	

424,500	 	 	

424,500	 
	 Pacific Rim Aqua Life Science No. 3 Investment Partnership

c/o Pacific Rim Ventures Co., Ltd.

2nd Floor, Green Plaza

3-7-20, Komazawa, Setagaya-ku

Tokyo 154-0012

Japan
	 	 	 	 	 	 	 	 	 	 	 	

243,500	 	 	

243,500	 
	 Pacific Rim Aqua Life Science No. 4 Investment Partnership

c/o Pacific Rim Ventures Co., Ltd.

2nd Floor, Green Plaza

3-7-20, Komazawa, Setagaya-ku

Tokyo 154-0012

Japan
	 	 	 	 	 	 	 	 	 	 	 	

472,500	 	 	

472,500	 
	 Pacific Rim Aqua [sic] Life Science No. 6 Investment Partnership

c/o Pacific Rim Ventures Co., Ltd.

2nd Floor, Green Plaza

3-7-20, Komazawa, Setagaya-ku

Tokyo 154-0012

Japan
	 	 	 	 	 	 	 	 	 	 	 	

100,000	 	 	

100,000	 

 

 

 

 

																	
	Name and Address

 
	 	Number of

Common

Exchangeable

Shares 	 	Number of

Class A Preferred

Exchangeable

Shares* 	 	Number of

Shares of

Class A Voting

Common Stock 	 	Number of

Shares of

Series A

Preferred Stock* 	 	TOTAL 	 
	 Paradigm Venture Partners I, L.L.C.

500 Beacon Parkway West

Birmingham, Alabama 35209
	 	 	 	 	 	 	 	 	190,019	 	 	200,000	 	 	390,019	 
	 Research Triangle Ventures, L.P.

1500 Sunday Drive, Suite 300A

Raleigh, North Carolina 27607
	 	 	 	 	 	 	 	 	

53,831	 	 	

300,000	 	 	

353,831	 
	 S.C.O.U.T. Health Care Fund, L.P.

c/o Greer Capital Advisors

2200 Woodcrest Place, Suite 309

Birmingham, Alabama 35209
	 	 	 	 	 	 	 	 	

67,289	 	 	

350,000	 	 	

417,289	 
	 The Economic Development Partnership of Alabama, Inc.

500 Beacon Parkway West

Birmingham, Alabama 35209
	 	 	 	 	 	 	 	 	

26,968	 	 	 	 	 	

29,968

[sic]	 
	 SNBL, Ltd.

Toho Twin Tower Building, 6F

1-5-2 Yurakucho, Chiyoda-ku

Tokyo, 100-0006

Japan
	 	 	 	 	 	 	 	 	

90,429	 	 	 	 	 	

90,429	 
	 Treble Range Partners II, LLC

820 Shades Creek Parkway, Suite 3100

Birmingham, Alabama 35209
	 	 	 	 	 	 	 	 	

27,381	 	 	 	 	 	

27,381	 
	 Quark Biotech Inc.

10265 Carnegie Avenue

Cleveland, Ohio 44106
	 	 	 	 	 	 	 	 	

33,116	 	 	 	 	 	

33,116	 
	 Dr. Pierre Deslongchamps
	 	 	

138,910	 	 	 	 	 	 	 	 	 	 	 	

138,910	 
	 Universite de Sherbrooke
	 	 	

92,791	 	 	 	 	 	 	 	 	 	 	 	

92,791	 
	 Societe Innovatech du sud du Quebec
	 	 	

208,052	 	 	 	 	 	 	 	 	 	 	 	

208,052	 

 

 

 

																		
	Name and Address

 
	 	Number of

Common

Exchangeable

Shares 	 	Number of

Class A Preferred

Exchangeable

Shares* 	 	Number of

Shares of

Class A Voting

Common Stock 	 	Number of

Shares of

Series A

Preferred Stock* 	 	TOTAL 	 
	 Business Development Bank of Canada

4 Place Ville Marie, Suite 1450

Montreal, Québec

Canada H3B 5E7
	 	 	112,758	 	 	3,575,000	 	 	 	 	 	 	 	 	3,687,758	 
	 Capital régional et coopératif Desjardins

c/o Desjardins Venture Capital Inc.

2 Complexe Desjardins, Suite 1717

P.O. Box 760

Montreal, Québec

Canada H5B 1B8
	 	 	 	 	 	

4,380,000	 	 	 	 	 	 	 	 	

4,380,000	 
	 Desjardins Venture Capital Inc. (Acting for and on Behalf of Desjardins Venture Capital, L.P.)

c/o Desjardins Venture Capital Inc.

2 Complexe Desjardins, Suite 1717

P.O. Box 760

Montreal, Québec

Canada H5B 1B8
	 	 	

87,951	 	 	

777,500	 	 	 	 	 	 	 	 	

865,451	 
	 Desjardins Capital de Développement Estrie Inc

c/o Desjardins Venture Capital Inc.

2 Complexe Desjardins, Suite 1717

P.O. Box 760

Montreal, Québec

Canada H5B 1B8
	 	 	

13,531	 	 	

317,500	 	 	 	 	 	 	 	 	

331,031	 
	 Fonds de solidarité des travailleurs du Québec (F.T.Q.)

545 Crémazie Blvd. East, Suite 200

Montreal, Québec

Canada H2M 2W4
	 	 	

252,782	 	 	

1,000,000	 	 	 	 	 	 	 	 	

1,252,782	 
	 	 TOTAL
	 	 	

906,775	 	 	

10,050,000	 	 	

637,980	 	 	

21,950,000	 	 	

33,544,755	 

 

 

	*
	Assumes
full participation in all three closings under the Purchase Agreement. 

 

 

 

 
 

  FIRST AMENDMENT AND JOINDER
  TO
  FOURTH AMENDED AND RESTATED
  REGISTRATION RIGHTS AGREEMENT    
    

        THIS FIRST AMENDMENT AND JOINDER TO FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS
AGREEMENT (this "Amendment") is made as of June 11, 2010, by and among Tranzyme, Inc., a Delaware corporation (the
"Company"), those certain investors in the Company listed on the signature pages hereto (each such investor being referred to in this Amendment as an
"Existing Investor" and collectively as the "Existing Investors"), and Norgine B.V., a limited
liability company under the laws of the Netherlands ("Norgine"). 

 
 

RECITALS    
    

        WHEREAS, the Existing Investors possess certain registration rights pursuant to that
certain Fourth Amended and Restated Registration Rights Agreement dated as of May 12, 2005 by and among the Company and such Existing Investors (the
"Agreement"); 

        WHEREAS, the Agreement may be amended, any provision therein waived, and additional parties may be joined thereto, with the consent of the
Company and the holders of at least a majority of the Registrable Securities (as defined in the Agreement); 

        WHEREAS, the Company and Norgine are parties to a Series B Preferred Stock Purchase Agreement dated as of June 11, 2010 (the
"Purchase Agreement"); 

        WHEREAS, among the conditions precedent to the consummation of the transactions contemplated by the Purchase Agreement is the execution
and delivery of this Amendment; and 

        WHEREAS, in order to induce the Company to enter into the Purchase Agreement and to induce Norgine to invest funds in the Company pursuant
to the Purchase Agreement, the Existing Investors and the Company desire to amend the Agreement as set forth in this Amendment and join Norgine as a party to the Agreement; 

        NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS: 

        1.    Amendment of Certain Definitions.    The following definitions in Section 1 of the Agreement shall be
deleted and replaced in their entirety with the following: 

        "1.2    The
term "Certificate of Incorporation" shall mean the Company's Sixth Amended and Restated Certificate of
Incorporation, as amended or restated from time to time." 

        "1.12    The
term "Preferred Stock" shall mean shares of the Company's Series A Preferred Stock and Series B
Preferred Stock." 

        2.    New Defined Term.    The following new defined term shall be added as new subsection 1.22A: 

        "1.22A    The
term "Series B Preferred Stock" means shares of the Company's Series B Preferred Stock, par value $0.00001
per share." 

        3.    Amendment of
Schedule A.    Schedule A—Investors as attached to the Agreement is hereby deleted in its
entirety and a new Schedule A—Investors, as attached hereto as Exhibit A,
shall be inserted in lieu thereof. 

        4.    Joinder of Norgine to the Agreement.    The Company, the Existing Investors and Norgine hereby agree that in
connection with this Amendment, Norgine hereby joins the Agreement, as an "Investor" thereunder, and agrees to be bound by all of the provisions thereof as if Norgine were an original party thereto. 

        5.    Effect of Amendment.    Except as specifically amended, modified or supplemented hereby, all terms and
conditions of the Agreement will remain in full force and effect, unmodified in any way. This Amendment shall be deemed to form an integral part of the Agreement, and in the event of any 

 

inconsistency
or conflict between the provisions of the Agreement and this Amendment, the provisions of this Amendment will prevail and govern. 

        6.    Miscellaneous.    This Amendment, together with the other documents referred to herein or delivered pursuant
hereto, which form a part hereof, contains the entire agreement among the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous arrangements or
understandings with respect thereto. This Amendment shall be governed by and construed in accordance with the laws of the State of Delaware (without giving effect to principles of conflicts of laws of
the State of Delaware or any other State). This Amendment may be executed in any number of counterparts, and each such counterpart hereof shall be deemed to be an original instrument, but all such
counterparts together shall constitute but one agreement. 

[Remainder
of Page Intentionally Left Blank] 

2

  
        IN WITNESS WHEREOF, the parties have executed this First Amendment and Joinder to Fourth Amended and Restated Registration Rights Agreement as of the date first above written. 

 

 

							
	 
	 	 
	 	 
	 	 

	 
	 	 COMPANY:
	 
	 	  TRANZYME, INC.

	 
	 	 By:
	 	  /s/ Vipin K. Garg

 
	 
	 	 	 	Name:	 	Vipin K. Garg, PhD
	 
	 	 	 	Title:	 	President and Chief Executive Officer

 

 First Amendment and Joinder to

Fourth Amended and Restated

Registration Rights Agreement

—Signature Page—

        IN
WITNESS WHEREOF, the parties have executed this First Amendment and Joinder to Fourth Amended and Restated Registration Rights Agreement as of the date first above written. 

 

 

					
	 
	 	 
	 	 

	 
	 	 EXISTING INVESTORS:
	 
	 	  THOMAS, MCNERNEY & PARTNERS, L.P.

	 
	 	 By:
	 	 /s/ James E. Thomas

 
	 
	 	 	 	Name: James E. Thomas
	 
	 	 	 	Title: Manager
	 
	 	  TMP NOMINEE, LLC

	 
	 	 By:
	 	 /s/ James E. Thomas

 
	 
	 	 	 	Name: James E. Thomas
	 
	 	 	 	Title: Member
	 
	 	  TMP ASSOCIATES, L.P.

	 
	 	 By:
	 	 /s/ James E. Thomas

 
	 
	 	 	 	Name: James E. Thomas
	 
	 	 	 	Title: Manager
	 
	 	  QUAKER BIOVENTURES, L.P.

	 
	 	 By:
	 	 QUAKER BIOVENTURES CAPITAL, L.P.,

its general partner

	 
	 	 By:
	 	 QUAKER BIOVENTURES CAPITAL, LLC,

its general partner

	 
	 	 By:
	 	 /s/ Brenda D. Gavin

 
	 
	 	 	 	Name: Brenda D. Gavin
	 
	 	 	 	Title: Member

 

 First Amendment and Joinder to

Fourth Amended and Restated

Registration Rights Agreement

—Signature Page—

        IN
WITNESS WHEREOF, the parties have executed this First Amendment and Joinder to Fourth Amended and Restated Registration Rights Agreement as of the date first above written. 

 

 

					
	 
	 	 
	 	 

	 
	 	 EXISTING INVESTORS:
	 
	 	  HIG VENTURES—TRANZYME, INC.

	 
	 	 By:
	 	 /s/ Richard Siegel

 
	 
	 	 	 	Name: Richard Siegel
	 
	 	 	 	Title: Vice President and General Counsel
	 
	 	  PARADIGM VENTURE PARTNERS I, L.L.C.

	 
	 	 By:
	 	 /s/ Philip L. Hodges

 
	 
	 	 	 	Name: Philip L. Hodges
	 
	 	 	 	Title: President
	 
	 	  RESEARCH TRIANGLE VENTURES, L.P.

	 
	 	 By:
	 	 /s/ Sam. C. Tetlow

 
	 
	 	 	 	Name: Sam. C. Tetlow
	 
	 	 	 	Title: Partner

 

 First Amendment and Joinder to

Fourth Amended and Restated

Registration Rights Agreement

—Signature Page—

  
        IN WITNESS WHEREOF, the parties have executed this First Amendment and Joinder to Fourth Amended and Restated Registration Rights Agreement as of the date first above written. 

 

 

					
	 	 	 EXISTING INVESTORS:
	

 	
 	
PACIFIC RIM VENTURES CO., LTD. (ACTING FOR AND ON BEHALF OF PROMETHEUS NO.1 INVESTMENT PARTNERSHIP)
	

 	
 	
 By:	
 	
/s/ Masahiro Michishita, M.D., Ph.D.

  Name: Masahiro Michishita, M.D., Ph.D.

Title: Managing General Partner
	

 	
 	
PACIFIC RIM VENTURES CO., LTD. (ACTING FOR AND ON BEHALF OF PACIFIC RIM AQUA LIFE SCIENCE NO. 1 INVESTMENT PARTNERSHIP)
	

 	
 	
 By:	
 	
/s/ Masahiro Michishita, M.D., Ph.D.

  Name: Masahiro Michishita, M.D., Ph.D.

Title: Managing General Partner
	

 	
 	
PACIFIC RIM VENTURES CO., LTD. (ACTING FOR AND ON BEHALF OF PACIFIC RIM AQUA LIFE SCIENCE NO. 2 INVESTMENT PARTNERSHIP)
	

 	
 	
 By:	
 	
/s/ Masahiro Michishita, M.D., Ph.D.

  Name: Masahiro Michishita, M.D., Ph.D.

Title: Managing General Partner
	

 	
 	
PACIFIC RIM VENTURES CO., LTD. (ACTING FOR AND ON BEHALF OF PACIFIC RIM AQUA LIFE SCIENCE NO. 3 INVESTMENT PARTNERSHIP)
	

 	
 	
 By:	
 	
/s/ Masahiro Michishita, M.D., Ph.D.

  Name: Masahiro Michishita, M.D., Ph.D.

Title: Managing General Partner

 

 First Amendment and Joinder to

Fourth Amended and Restated

Registration Rights Agreement

—Signature Page—

        IN
WITNESS WHEREOF, the parties have executed this First Amendment and Joinder to Fourth Amended and Restated Registration Rights Agreement as of the date first above written. 

 

 

					
	 	 	 EXISTING INVESTORS:
	

 	
 	
PACIFIC RIM VENTURES CO., LTD. (ACTING FOR AND ON BEHALF OF PACIFIC RIM AQUA LIFE SCIENCE NO. 4 INVESTMENT PARTNERSHIP)
	

 	
 	
 By:	
 	
/s/ Masahiro Michishita, M.D., Ph.D.

  Name: Masahiro Michishita, M.D., Ph.D.

Title: Managing General Partner
	

 	
 	
PACIFIC RIM VENTURES CO., LTD. (ACTING FOR AND ON BEHALF OF PACIFIC RIM LIFE SCIENCE NO. 6 INVESTMENT PARTNERSHIP)
	

 	
 	
 By:	
 	
/s/ Masahiro Michishita, M.D., Ph.D.

  Name: Masahiro Michishita, M.D., Ph.D.

Title: Managing General Partner

 

 First Amendment and Joinder to

Fourth Amended and Restated

Registration Rights Agreement

—Signature Page—

        IN
WITNESS WHEREOF, the parties have executed this First Amendment and Joinder to Fourth Amended and Restated Registration Rights Agreement as of the date first above written. 

 

 

					
	 	 	 EXISTING INVESTORS:
	

 	
 	
S.C.O.U.T. HEALTH CARE FUND, L.P.
	

 	
 	
 By:	
 	
/s/ Lawrence W. Greer

  Name: Lawrence W. Greer

Title: General Partner
	

 	
 	
THE ECONOMIC DEVELOPMENT PARTNERSHIP OF ALABAMA, INC.
	

 	
 	
 By:	
 	
/s/ William C. Taylor

  Name: William C. Taylor

Title: President
	

 	
 	
SNBL, LTD.
	

 	
 	
 By:	
 	
 

  Name:

Title:
	

 	
 	
TREBLE RANGE PARTNERS II, LLC
	

 	
 	
 By:	
 	
/s/ Steven M. Dauphin

  Name: Steven M. Dauphin

Title: Managing Director of Bonaventure Capital, LLC, Manager of Treble Range Partners II, LLC
	

 	
 	
QUARK BIOTECH INC.
	

 	
 	
 By:	
 	
  

  Name:

Title:

 

 First Amendment and Joinder to

Fourth Amended and Restated

Registration Rights Agreement

—Signature Page—

  
        IN WITNESS WHEREOF, the parties have executed this First Amendment and Joinder to Fourth Amended and Restated Registration Rights Agreement as of the date first above written. 

 

 

							
	 	 	 EXISTING INVESTORS:
	

 	
 	
/s/ Pierre Deslongchamps

  DR. PIERRE DESLONGCHAMPS
	

 	
 	
UNIVERSITÉ DE SHERBROOKE
	

 	
 	
per:	
 	
/s/Ronald Mercier

 
	 	 	 	 	Name:	 	Ronald Mercier
	 	 	 	 	Title:	 	Dir. Rel. Corporatives
	

 	
 	
DESJARDINS-INNOVATECH S.E.C.
	

 	
 	
per:	
 	
  

 
	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	

 	
 	
per:	
 	
  

 
	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

 

 First Amendment and Joinder to

Fourth Amended and Restated

Registration Rights Agreement

—Signature Page—

        IN
WITNESS WHEREOF, the parties have executed this First Amendment and Joinder to Fourth Amended and Restated Registration Rights Agreement as of the date first above written. 

 

 

					
	 
	 	 EXISTING INVESTORS:
	 
	 	  BDC CAPITAL INC.

	 
	 	 per:
	 	 /s/ JF Pariseau

 
	 
	 	 	 	Name: JF Pariseau

Title: Director, Venture Capital
	 
	 	 per:
	 	 /s/ Denis Ho

 
	 
	 	 	 	Name: Denis Ho

Title: Managing Director

 

 First Amendment and Joinder to

Fourth Amended and Restated

Registration Rights Agreement

—Signature Page—

  
        IN WITNESS WHEREOF, the parties have executed this First Amendment and Joinder to Fourth Amended and Restated Registration Rights Agreement as of the date first above written. 

 

 

					
	 
	 	 EXISTING INVESTORS:
	 
	 	 DESJARDINS VENTURE CAPITAL INC.

(ACTING FOR AND ON BEHALF OF

DESJARDINS VENTURE

CAPITAL, L.P.)

	 
	 	 per:
	 	 /s/ Jonathan Hepple

  Name: Jonathan Hepple

Title: Director, Rosetta Capital
	 
	 	 per:
	 	 /s/ Michael Midmer

  Name: Michael Midmer

Title: Rosetta Capital
	 
	 	 DESJARDINS CAPITAL DE DÉVELOPPEMENT

ESTRIE INC.

	 
	 	 per:
	 	 /s/ Jonathan Hepple

  Name: Jonathan Hepple

Title: Director, Rosetta Capital
	 
	 	 per:
	 	 /s/ Michael Midmer

  Name: Michael Midmer

Title: Rosetta Capital
	 
	 	 CAPITAL RÉGIONAL ET COOPÉRATIF

DESJARDINS

	 
	 	 per:
	 	 /s/ Jonathan Hepple

  Name: Jonathan Hepple

Title: Director, Rosetta Capital
	 
	 	 per:
	 	 /s/ Michael Midmer

  Name: Michael Midmer

Title: Rosetta Capital

 

 First Amendment and Joinder to

Fourth Amended and Restated

Registration Rights Agreement

—Signature Page—  

 

					
	 
	 	IN WITNESS WHEREOF, the parties have executed

this First Amendment and Joinder to Fourth

Amended and Restated Registration Rights

Agreement as of the date first above written.
 EXISTING INVESTORS:
	 
	 	 FONDS DE SOLIDARITÉ DES TRAVAILLEURS

DU QUÉBEC (F.T.Q.)

	 
	 	 per:
	 	 /s/ Serge Lapointe

  Name: Serge Lapointe

Title: Investment Director, Life Sciences

 

 First Amendment and Joinder to

Fourth Amended and Restated

Registration Rights Agreement

—Signature Page—  

  
        IN WITNESS WHEREOF, the parties have executed this First Amendment and Joinder to Fourth Amended and Restated Registration Rights Agreement as of the date first above written. 

 

 

					
	 
	 	 
	 	 

	 
	 	 EXISTING INVESTORS:
	 
	 	  EMERGING TECHNOLOGY PARTNERS, L.L.C.

	 
	 	 By:
	 	  

 
	 
	 	 	 	Name:
	 
	 	 	 	Title:
	 
	 	  PACIFIC RIM VENTURES US EQUITIES

	 
	 	 By:
	 	 /s/ J. Joseph Marr

 
	 
	 	 	 	Name: J. Joseph Marr
	 
	 	 	 	Title: Partner
	 
	 	  /s/ David J. Drutz

 
	 
	 	DAVID J. DRUTZ
	 
	 	  /s/ Seth Pincus

 
	 
	 	SETH PINCUS

 

 First Amendment and Joinder to

Fourth Amended and Restated

Registration Rights Agreement

—Signature Page—

        IN
WITNESS WHEREOF, the parties have executed this First Amendment and Joinder to Fourth Amended and Restated Registration Rights Agreement as of the date first above written. 

 

 

					
	 
	 	 
	 	 

	 
	 	 NORGINE:
	 
	 	  NORGINE B.V.

	 
	 	 By:
	 	 /s/ F.P. Nooteboom

 
	 
	 	 Name:
	 	 F.P. Nooteboom

 
	 
	 	 Title:
	 	 Director

 

 

 First Amendment and Joinder to

Fourth Amended and Restated

Registration Rights Agreement

—Signature Page—

 

Exhibit A  

 SCHEDULE A  

 INVESTORS  

 

 

																				
	Name and Address

 
	 	Number of

Common

Exchangeable

Shares 	 	Number of

Class A Preferred

Exchangeable

Shares 	 	Number of

Shares of

Class A Voting

Common Stock 	 	Number of

Shares of

Series A

Preferred Stock 	 	Number of

Shares of

Series B

Preferred Stock 	 	TOTAL 	 
	 

 Norgine B.V.

Hogehilweg 7

1101 CA Amsterdam ZO

The Netherlands

Attention : Director

Facsimile No: +31 20 567 0999
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,047,120	 	 	1,047,120	 
	 Thomas McNerney & Partners, L.P.
	 	 	 	 	 	 	 	 	 	 	 	

11,041,175	 	 	 	 	 	

11,041,175	 
	 TMP Nominee, LLC
	 	 	 	 	 	 	 	 	 	 	 	410,316	 	 	 	 	 	410,316	 
	 TMP Associates, L.P.

c/o Thomas, McNerney & Partners

One Stamford Plaza

263 Tresser Boulevard, 16th Floor

Stamford, CT 06901
	 	 	 	 	 	 	 	 	 	 	 	41,949	 	 	 	 	 	41,949	 
	 

 Quaker Bioventures, L.P.

c/o Quaker BioVentures

Cira Centre

2929 Arch St., Suite 1650

Philadelphia, PA 19104-2868
	 	 	 	 	 	 	 	 	 	 	 	

11,493,440	 	 	 	 	 	

11,493,440	 
	 HIG Ventures—Tranzyme, Inc.

c/o HIG Ventures

1001 Brickell Bay Drive, 27th Floor

Miami, FL 33131
	 	 	 	 	 	 	 	 	 	 	 	

11,493,440	 	 	 	 	 	

11,493,440	 

 

 A-1

 

 

 

																				
	Name and Address

 
	 	Number of

Common

Exchangeable

Shares 	 	Number of

Class A Preferred

Exchangeable

Shares 	 	Number of

Shares of

Class A Voting

Common Stock 	 	Number of

Shares of

Series A

Preferred Stock 	 	Number of

Shares of

Series B

Preferred Stock 	 	TOTAL 	 
	 Prometheus No. 1 Investment Partnership

c/o Pacific Rim Ventures Co., Ltd.

5th Floor, ISIS Plaza

2-17-11 Shin-yokohama

Kouhoku-ku

Yokohama City 222-0033

Japan
	 	 	 	 	 	 	 	 	148,947	 	 	 	 	 	 	 	 	148,947	 
	 Pacific Rim Aqua Life Science No. 1 Investment Partnership

c/o Pacific Rim Ventures Co., Ltd.

5th Floor, ISIS Plaza

2-17-11 Shin-yokohama

Kouhoku-ku

Yokohama City 222-0033

Japan
	 	 	 	 	 	 	 	 	 	 	 	

359,500	 	 	 	 	 	

359,500	 
	 Pacific Rim Aqua Life Science No. 2 Investment Partnership

c/o Pacific Rim Ventures Co., Ltd.

5th Floor, ISIS Plaza

2-17-11 Shin-yokohama

Kouhoku-ku

Yokohama City 222-0033

Japan
	 	 	 	 	 	 	 	 	 	 	 	

424,500	 	 	 	 	 	

424,500	 
	 Pacific Rim Aqua Life Science No. 3 Investment Partnership

5th Floor, ISIS Plaza

2-17-11 Shin-yokohama

Kouhoku-ku

Yokohama City 222-0033

Japan
	 	 	 	 	 	 	 	 	 	 	 	

243,500	 	 	 	 	 	

243,500	 

 

 A-2

 

 

 

																				
	Name and Address

 
	 	Number of

Common

Exchangeable

Shares 	 	Number of

Class A Preferred

Exchangeable

Shares 	 	Number of

Shares of

Class A Voting

Common Stock 	 	Number of

Shares of

Series A

Preferred Stock 	 	Number of

Shares of

Series B

Preferred Stock 	 	TOTAL 	 
	 Pacific Rim Aqua Life Science No. 4 Investment Partnership

c/o Pacific Rim Ventures Co., Ltd.

5th Floor, ISIS Plaza

2-17-11 Shin-yokohama

Kouhoku-ku

Yokohama City 222-0033

Japan
	 	 	 	 	 	 	 	 	 	 	 	472,500	 	 	 	 	 	472,500	 
	 Pacific Rim Life Science No. 6 Investment Partnership

c/o Pacific Rim Ventures Co., Ltd.

5th Floor, ISIS Plaza

2-17-11 Shin-yokohama

Kouhoku-ku

Yokohama City 222-0033

Japan
	 	 	 	 	 	 	 	 	 	 	 	

190,000	 	 	 	 	 	

190,000	 
	 Paradigm Venture Partners I, L.L.C.

500 Beacon Parkway West

Birmingham, Alabama 35209
	 	 	 	 	 	 	 	 	

190,019	 	 	

200,000	 	 	 	 	 	

390,019	 
	 Research Triangle Ventures, L.P.

1500 Sunday Drive, Suite 300A

Raleigh, North Carolina 27607
	 	 	 	 	 	 	 	 	

53,831	 	 	

300,000	 	 	 	 	 	

353,831	 
	 S.C.O.U.T. Health Care Fund, L.P.

c/o Greer Capital Advisors

2200 Woodcrest Place, Suite 309

Birmingham, Alabama 35209
	 	 	 	 	 	 	 	 	

67,289	 	 	

350,000	 	 	 	 	 	

417,289	 

 

 A-3

 

 

 

																				
	Name and Address

 
	 	Number of

Common

Exchangeable

Shares 	 	Number of

Class A Preferred

Exchangeable

Shares 	 	Number of

Shares of

Class A Voting

Common Stock 	 	Number of

Shares of

Series A

Preferred Stock 	 	Number of

Shares of

Series B

Preferred Stock 	 	TOTAL 	 
	 The Economic Development Partnership of Alabama, Inc.

500 Beacon Parkway West

Birmingham, Alabama 35209
	 	 	 	 	 	 	 	 	26,968	 	 	 	 	 	 	 	 	26,968	 
	 SNBL, Ltd.

Toho Twin Tower Building, 6F

1-5-2 Yurakucho, Chiyoda-ku

Tokyo, 100-0006

Japan
	 	 	 	 	 	 	 	 	

90,429	 	 	 	 	 	 	 	 	

90,429	 
	 Treble Range Partners II, LLC

3104 Blue Lake Drive, Suite 120

Birmingham, Alabama 35243
	 	 	 	 	 	 	 	 	

27,381	 	 	 	 	 	 	 	 	

27,381	 
	 Quark Biotech Inc.

6536 Kaiser Drive

Fremont, CA 94555
	 	 	 	 	 	 	 	 	

33,116	 	 	 	 	 	 	 	 	

33,116	 
	 Dr. Pierre Deslongchamps

69B, St-Louis #403

Levis Québec

Canada G6V 4G2
	 	 	

138,910	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

138,910	 
	 Universite de Sherbrooke

2500 University Boulevard

Sherbrooke, Québec

Canada J1K 2R1
	 	 	

92,791	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

92,791	 
	 Desjardins-Innovatech S.E.C. (formerly, Societe Innovatech du sud du Quebec)

c/o Desjardins Venture Capital Inc.

2 Complexe Desjardins, Suite 1717

P.O. Box 760

Montreal, Québec

Canada H5B 1B8
	 	 	

208,052	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

208,052	 

 

 A-4

 

 

 

																				
	Name and Address

 
	 	Number of

Common

Exchangeable

Shares 	 	Number of

Class A Preferred

Exchangeable

Shares 	 	Number of

Shares of

Class A Voting

Common Stock 	 	Number of

Shares of

Series A

Preferred Stock 	 	Number of

Shares of

Series B

Preferred Stock 	 	TOTAL 	 
	 BDC Capital Inc. (formerly, Business Development Bank of Canada)

4 Place Ville Marie, Suite 1450

Montreal, Québec

Canada H3B 5E7
	 	 	112,758	 	 	6,408,016	 	 	 	 	 	 	 	 	 	 	 	6,520,774	 
	 Capital régional et coopératif Desjardins

c/o Desjardins Venture Capital Inc.

2 Complexe Desjardins, Suite 1717

P.O. Box 760

Montreal, Québec

Canada H5B 1B8
	 	 	 	 	 	

5,169,150	 	 	 	 	 	 	 	 	 	 	 	

5,169,150	 
	 Desjardins Venture Capital Inc. (Acting for and on Behalf of Desjardins Venture Capital, L.P.)

c/o Desjardins Venture Capital Inc.

2 Complexe Desjardins, Suite 1717

P.O. Box 760

Montreal, Québec

Canada H5B 1B8
	 	 	

87,951	 	 	

929,400	 	 	 	 	 	 	 	 	 	 	 	

1,017,351	 
	 Desjardins Capital de Développement Estrie Inc

c/o Desjardins Venture Capital Inc.

2 Complexe Desjardins, Suite 1717

P.O. Box 760

Montreal, Québec

Canada H5B 1B8
	 	 	

13,531	 	 	

376,450	 	 	 	 	 	 	 	 	 	 	 	

389,981	 

 

 A-5

 

 

 

																					
	Name and Address

 
	 	Number of

Common

Exchangeable

Shares 	 	Number of

Class A Preferred

Exchangeable

Shares 	 	Number of

Shares of

Class A Voting

Common Stock 	 	Number of

Shares of

Series A

Preferred Stock 	 	Number of

Shares of

Series B

Preferred Stock 	 	TOTAL 	 
	 Fonds de solidarité des travailleurs du Québec (F.T.Q.)

545 boulevard Crémazie East, Suite 200

Montreal, Québec

Canada H2M 2W4
	 	 	252,782	 	 	1,962,418	 	 	 	 	 	 	 	 	 	 	 	2,215,200	 
	 Emerging Technology Partners, L.L.C.

4405 Old Brook Run

Birmingham, AL 35243
	 	 	 	 	 	 	 	 	

99,941	 	 	

58,876	 	 	 	 	 	

158,817	 
	 David J. Drutz, M.D.

1059A Canterbury Lane

Chapel Hill, NC 27517
	 	 	 	 	 	 	 	 	 	 	 	

25,000	 	 	 	 	 	

25,000	 
	 Pacific Rim Ventures US Equities

c/o David Drutz

1059A Canterbury Lane

Chapel Hill, NC 27517
	 	 	 	 	 	 	 	 	 	 	 	

50,000	 	 	 	 	 	

50,000	 
	 Seth Pincus

470 Pine Street

New Orleans, LA 70118
	 	 	 	 	 	 	 	 	

627	 	 	

370	 	 	 	 	 	

997	 
	 	 TOTAL
	 	 	

906,775	 	 	

14,845,434	 	 	

738,548	 	 	

37,154,566	 	 	

1,047,120	 	 	

54,692,443	 

 

 A-6

QuickLinks

Exhibit 4.2

FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

RECITALS

FIRST AMENDMENT AND JOINDER TO FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

RECITALS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00181-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00181-of-00352.parquet"}]]