Document:

exv10w1

Exhibit 10.1     
 Execution Copy

 

STOCK PURCHASE AGREEMENT

between

AMERISTAR CASINOS, INC.,

as the Company

and

THE ESTATE OF CRAIG H. NEILSEN,

as the Seller

Dated as of March 25, 2011

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	Section 1.1 Certain Defined Terms
	 	 	1	 
	Section 1.2 Table of Definitions
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II PURCHASE AND SALE
	 	 	3	 
	 
	 	 	 	 
	Section 2.1 Purchase and Sale of the Shares
	 	 	3	 
	Section 2.2 Closing
	 	 	3	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE SELLER
	 	 	4	 
	 
	 	 	 	 
	Section 3.1 Organization
	 	 	4	 
	Section 3.2 Authority
	 	 	4	 
	Section 3.3 No Conflict; Required Filings and Consents
	 	 	4	 
	Section 3.4 Title to Shares
	 	 	5	 
	Section 3.5 Brokers
	 	 	5	 
	Section 3.6 No Other Representations or Warranties
	 	 	5	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	 	 	5	 
	 
	 	 	 	 
	Section 4.1 Organization
	 	 	5	 
	Section 4.2 Authority
	 	 	5	 
	Section 4.3 No Conflict; Required Filings and Consents
	 	 	6	 
	Section 4.4 Fairness Opinion
	 	 	6	 
	Section 4.5 Brokers
	 	 	7	 
	Section 4.6 No Changes to Indemnification Provisions
	 	 	7	 
	Section 4.7 No Other Representations or Warranties
	 	 	7	 
	 
	 	 	 	 
	ARTICLE V COVENANTS
	 	 	7	 
	 
	 	 	 	 
	Section 5.1 Confidentiality
	 	 	7	 
	Section 5.2 Consents and Filings; Further Assurances
	 	 	7	 
	Section 5.3 Public Announcements
	 	 	8	 
	Section 5.4 Financing
	 	 	8	 
	Section 5.5 Registration Rights and Holdbacks
	 	 	8	 
	Section 5.6 Intervening Sale Transaction
	 	 	9	 
	 
	 	 	 	 
	ARTICLE VI CONDITIONS TO CLOSING
	 	 	9	 
	 
	 	 	 	 
	Section 6.1 General Conditions
	 	 	9	 
	Section 6.2 Conditions to Obligations of the Seller
	 	 	9	 

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	 	 	Page	 
	Section 6.3 Conditions to Obligations of the Company
	 	 	10	 
	 
	 	 	 	 
	ARTICLE VII TERMINATION
	 	 	11	 
	 
	 	 	 	 
	Section 7.1 Termination
	 	 	11	 
	Section 7.2 Effect of Termination
	 	 	12	 
	 
	 	 	 	 
	ARTICLE VIII GENERAL PROVISIONS
	 	 	12	 
	 
	 	 	 	 
	Section 8.1 Fees and Expenses
	 	 	12	 
	Section 8.2 Amendment and Modification
	 	 	12	 
	Section 8.3 Waiver
	 	 	12	 
	Section 8.4 Notices
	 	 	13	 
	Section 8.5 Interpretation
	 	 	14	 
	Section 8.6 Entire Agreement
	 	 	14	 
	Section 8.7 No Third-Party Beneficiaries
	 	 	14	 
	Section 8.8 Governing Law
	 	 	14	 
	Section 8.9 Submission to Jurisdiction
	 	 	15	 
	Section 8.10 Assignment; Successors
	 	 	15	 
	Section 8.11 Enforcement
	 	 	15	 
	Section 8.12 Currency
	 	 	16	 
	Section 8.13 Severability
	 	 	16	 
	Section 8.14 Waiver of Jury Trial
	 	 	16	 
	Section 8.15 Counterparts
	 	 	16	 
	Section 8.16 Facsimile or Electronic Signature
	 	 	16	 

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STOCK PURCHASE AGREEMENT

     STOCK PURCHASE AGREEMENT, dated as of March 25, 2011 (this “Agreement”), between
Ameristar Casinos, Inc., a Nevada corporation (the “Company”), and the Estate of Craig H.
Neilsen (the “Seller”).

RECITALS

     WHEREAS, the Company and the Seller have entered into that certain letter agreement, dated
February 27, 2011 (the “Letter Agreement”) pursuant to which, on the terms and conditions
set forth therein, the Seller has agreed to sell to the Company, and the Company has agreed to
purchase from the Seller, 26,150,000 shares (the “Purchased Shares”) of the Company’s
common stock, par value $0.01 per share (“Company Common Stock”), at a per share price of
$17.50 (the “Per Share Price”);

     WHEREAS, the Board of Directors of the Company (the “Board”), upon the unanimous
recommendation of a transaction committee of the Board comprised solely of independent and
disinterested directors (the “Transaction Committee”), has approved the Letter Agreement
and this Agreement and the purchase of the Purchased Shares (the “Repurchase Transaction
”); and

     WHEREAS, pursuant to the Letter Agreement, the Company and the Seller (together, the
“Parties”) are entering into this Agreement to set forth the definitive terms pursuant to
which the Company and the Seller will consummate the Repurchase Transaction.

AGREEMENT

     In consideration of the foregoing and the mutual covenants and agreements herein contained,
and intending to be legally bound hereby, the Parties agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.1 Certain Defined Terms. For purposes of this Agreement:

          “Business Day” means any day that is not a Saturday, a Sunday or other day on which
banks are required or authorized by Law to be closed in New York, New York.

          “Encumbrance” means any charge, claim, limitation, condition, equitable interest,
mortgage, lien, option, pledge, security interest, easement, encroachment, right of first refusal,
adverse claim or restriction of any kind, except those imposed by Gaming Laws, and including any
federal, state or local tax lien and any restriction on or transfer or
other assignment, as security or otherwise, of or relating to use, quiet enjoyment, voting,
transfer, receipt of income or exercise of any other attribute of ownership.

 

 

          “Gaming Authorities” means any Governmental Authorities with regulatory authority or
jurisdiction over casino or other gaming activities and operations, or the distribution, service or
sale of liquor, including, the Colorado Limited Gaming Control Commission, the Colorado Division of
Gaming, the Indiana Gaming Commission, the Iowa Racing and Gaming Commission, the Iowa Division of
Gaming Enforcement, the Mississippi Gaming Commission, the Missouri Gaming Commission, the Nevada
State Gaming Control Board, the Nevada Gaming Commission, and the Liquor Board of Elko County,
Nevada.

          “Gaming Law” means any federal, tribal, state, county or local statute, law,
ordinance, rule, regulation, permit, consent, approval, finding of suitability, license, judgment,
order, decree, injunction or other authorization governing or relating to gaming and related
activities and operations or the distribution, service or sale of liquor, including the rules and
regulations of the Gaming Authorities.

          “Governmental Authority” means any United States or non-United States federal,
national, supranational, state, provincial, local or similar government, governmental, regulatory
or administrative authority, branch, agency or commission or any court, tribunal, or arbitral or
judicial body (including any grand jury).

          “Law” means any statute, law, ordinance, regulation, rule, code, executive order,
injunction, judgment, decree or order of any Governmental Authority, including any Gaming Law.

          “Person” means an individual, corporation, partnership, limited liability company,
limited liability partnership, syndicate, person, trust, estate, association, organization or other
entity, including any Governmental Authority, and including any successor, by merger or otherwise,
of any of the foregoing.

          “Representatives” means, with respect to any Person, such Person’s officers,
directors, principals, trustees, executors, personal representatives, employees, legal counsel,
advisors, auditors, agents, bankers and other representatives.

     Section 1.2 Table of Definitions. The following terms have the meanings set forth in
the Sections referenced below:

	 	 	 
	Definition	 	Location
	Agreement
	 	Preamble
	Board
	 	Recitals
	Closing
	 	2.2(a)
	Closing Date
	 	2.2(a)
	Company
	 	Preamble
	Company Common Stock
	 	Recitals
	Confidentiality Agreement
	 	5.1
	Debt Retirement
	 	5.4(a)
	Extended Termination Date
	 	7.1(c)
	Financing
	 	5.4(a)

2

 

	 	 	 
	Definition	 	Location
	IRS Lien
	 	Section 3.4
	Lazard
	 	4.4
	Letter Agreement
	 	Recitals
	Neilsen Trust
	 	Section 3.1
	Parties
	 	Recitals
	Per Share Price
	 	Recitals
	Probate Approval
	 	Section 3.3(b)
	Purchase Price
	 	2.1
	Purchased Shares
	 	Recitals
	REGAL
	 	4.4
	Reorg Agreement
	 	5.5
	Repurchase Transaction
	 	Recitals
	Sale Agreement
	 	5.6
	Sale Proposal
	 	5.6
	Seller
	 	Preamble
	Tag-Along Right
	 	5.6
	Termination Date
	 	7.1(c)
	Transaction Committee
	 	Recitals

ARTICLE II

PURCHASE AND SALE

     Section 2.1 Purchase and Sale of the Shares. Upon the terms and subject to the
conditions of this Agreement, at the Closing, the Seller shall sell, assign, transfer, convey and
deliver the Purchased Shares to the Company, free and clear of all Encumbrances, and the Company,
in reliance on the representations, warranties and covenants of the Seller contained herein, shall
purchase the Purchased Shares from the Seller at the Per Share Price, for an aggregate purchase
price of $457,625,000 (the “Purchase Price”). The Parties acknowledge and agree that, at
or prior to Closing, the Seller shall identify which shares of Company Common Stock then held by
the Seller will constitute the Purchased Shares.

     Section 2.2 Closing.

          (a) The sale and purchase of the Purchased Shares shall take place at a closing (the
“Closing”) to be held at the offices of Gibson, Dunn & Crutcher LLP, 2029 Century Park
East, Los Angeles, California 90067, at 10:00 a.m., Los Angeles time, on the third (3rd)
Business Day following the satisfaction or, to the extent permitted by applicable Law, waiver of
all conditions to the obligations of the Parties set forth in Article VI (other than such
conditions as may, by their terms, only be satisfied at the Closing or on the Closing Date), or at
such other place or at such other time
or on such other date as the Parties mutually may agree in writing. The day on which the
Closing takes place is referred to as the “Closing Date.”

          (b) At the Closing, (i) the Company shall deliver to the Seller, by wire transfer to a bank
account designated in writing by the Seller to the Company at least two

3

 

Business Days prior to the
Closing Date, an amount equal to the Purchase Price in immediately available funds in United States
dollars, (ii) the Seller shall deliver or cause to be delivered to the Company certificates
representing the Purchased Shares, duly endorsed in blank or accompanied by stock powers duly
endorsed in blank in proper form for transfer, with appropriate transfer stamps, if any, affixed,
and (iii) the Seller shall deliver the documents described in Section 6.3(e).

ARTICLE III

REPRESENTATIONS AND WARRANTIES

OF THE SELLER

     The Seller hereby represents and warrants to the Company as follows:

     Section 3.1 Organization. The Seller is an estate opened under the laws of the State
of Nevada in the Eighth Judicial Court in Clark County, Nevada. Other than the Last Will and
Testament of Craig H. Neilsen, the Second Restatement of Declaration of Trust of Craig H. Neilsen
dated May 26, 2006 (the “Neilsen Trust”) and the rules and requirements under applicable
Law, there are no agreements or other documents that govern operation of the Seller.

     Section 3.2 Authority. The Seller has the requisite power and authority to execute
and deliver this Agreement, upon receipt of Probate Approval (as defined below) to perform its
obligations hereunder and to consummate the transactions contemplated hereby. The execution and
delivery by the Seller and, upon receipt of Probate Approval, the performance by the Seller of its
obligations under this Agreement and the consummation by the Seller of the transactions
contemplated hereby have been duly and validly authorized by all necessary action. This Agreement
has been duly executed and delivered by the Seller. This Agreement constitutes the legal, valid
and binding obligation of the Seller, enforceable against the Seller in accordance with its terms
(except to the extent that enforceability may be limited by applicable bankruptcy, insolvency,
moratorium, reorganization or similar Laws affecting the enforcement of creditors’ rights generally
or by general principles of equity). Each of the Representatives executing this Agreement on
behalf of the Seller is duly authorized under the laws of the State of Nevada to do so.

     Section 3.3 No Conflict; Required Filings and Consents.

          (a) The execution and delivery by the Seller of and, upon receipt of Probate Approval, the
performance by the Seller of its obligations under this Agreement, and the consummation of the
transactions contemplated hereby, do not and will not:

               (i) conflict with or violate the Last Will and Testament of Craig H. Neilsen or the Neilsen
Trust;

               (ii) conflict with or violate any Law applicable to the Seller or the Purchased Shares or
otherwise applicable to the transactions contemplated hereby; or

4

 

               (iii) result in any breach of, constitute a default (or an event that, with notice or lapse of
time or both, would become a default) under, require any consent of or notice to any Person
pursuant to, give to others any right of termination, amendment, modification, acceleration or
cancellation of, or result in the creation of any Encumbrance on any Purchased Shares pursuant to,
any note, bond, mortgage, indenture, agreement, lease, license, permit, franchise, instrument,
obligation or other contract to which the Seller is a party or is bound or by which any of the
Purchased Shares are bound or affected.

          (b) The Seller is not required to file, seek or obtain any notice, authorization, approval,
order, permit or consent of or with any Governmental Authority in connection with the execution and
delivery by the Seller of and the performance by the Seller of its obligations under this Agreement
or the consummation of the transactions contemplated hereby, except for receipt of an order from
the Eighth Judicial District Court of the State of Nevada approving the sale of the Purchased
Shares pursuant to this Agreement (the “Probate Approval”).

     Section 3.4 Title to Shares. The Seller is the record and legal owner of the
Purchased Shares, free and clear of any Encumbrance, other than the special estate tax lien imposed
under Section 6324(a) of the Internal Revenue Code of 1986, as amended (the “IRS Lien”).
Subject to Probate Approval, the Seller has the right, authority and power to sell, assign and
transfer the Purchased Shares to the Company. Upon delivery to the Company of certificates for the
Purchased Shares at the Closing and the Company’s payment of the Purchase Price, the Company shall
acquire good, valid and marketable title to the Purchased Shares, free and clear of any
Encumbrance.

     Section 3.5 Brokers. Except for Centerview Partners LLC, the fees of which will be
paid by the Seller, no broker, finder or investment banker is entitled to any brokerage, finder’s
or other fee or commission in connection with the transactions contemplated hereby based upon
arrangements made by or on behalf of the Seller.

     Section 3.6 No Other Representations or Warranties. The Seller acknowledges and
agrees it is not relying upon any representations or warranties of the Company, express or implied,
except those contained herein, and the Seller specifically does not request, desire or require the
Company to make any other representations or warranties whatsoever with respect to the Company
and/or the Purchased Shares or any other matter with respect to any of the transactions
contemplated hereby.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The Company hereby represents and warrants to the Seller as follows:

     Section 4.1 Organization. The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of Nevada.

     Section 4.2 Authority. The Company has the requisite corporate power and authority to
execute and deliver this Agreement, to perform its obligations hereunder and to consummate the
transactions contemplated hereby. The execution and delivery by the

5

 

Company and the performance by
the Company of its obligations under this Agreement and the consummation by the Company of the
transactions contemplated hereby have been duly and validly authorized by all necessary corporate
action. This Agreement has been duly and validly executed and delivered by the Company. This
Agreement constitutes the legal, valid and binding obligation of the Company, enforceable against
the Company in accordance with its terms (except to the extent that enforceability may be limited
by applicable bankruptcy, insolvency, moratorium, reorganization or similar Laws affecting the
enforcement of creditors’ rights generally or by general principles of equity).

     Section 4.3 No Conflict; Required Filings and Consents.

          (a) The execution and delivery by the Company of and performance by the Company of its
obligations under this Agreement, and the consummation of the transactions contemplated hereby, do
not and will not:

               (i) conflict with or violate the articles of incorporation or bylaws of the Company;

               (ii) assuming the making of all filings and the receipt of all approvals required to
consummate the transactions contemplated hereby under applicable Gaming Laws, conflict with or
violate any Law applicable to the Company; or

               (iii) result in any breach of, constitute a default (or an event that, with notice or lapse of
time or both, would become a default) under, require any consent of or notice to any Person
pursuant to, give to others any right of termination, amendment, modification, acceleration or
cancellation of, any material note, bond, mortgage, indenture, agreement, lease, license, permit,
franchise, instrument, obligation or other contract to which the Company is a party, other than
defaults under the Company’s existing senior credit facilities and its existing senior notes (which
facilities and notes shall be terminated or amended at or prior to the Closing).

          (b) The Company is not required to file, seek or obtain any notice, authorization, approval,
order, permit or consent of or with any Governmental Authority in connection with the execution and
delivery by the Company of and performance by the Company of its obligations under this Agreement
or the consummation of the transactions contemplated hereby, except those approvals required under
applicable Gaming Laws to perform its obligations under this Agreement and to consummate the
transactions (including the Financing) contemplated hereby and such waivers and approvals or
waivers under the Company’s existing senior credit facilities and its existing senior notes (which
facilities and notes shall be terminated or amended at or prior to the Closing).

     Section 4.4 Fairness Opinion. The Transaction Committee has received an opinion from
REGAL Capital Advisors, LLC (“REGAL”) to the effect that, as of the date of the Letter
Agreement, (a) the Purchase Price is fair, from a
financial point of view, to the Company and (b) the Repurchase Transaction is fair, from a
financial point of view, to the Company and its stockholders, other than the Seller. The Board has
received an opinion from Lazard Frères & Co. LLC (“Lazard”) to the effect that, as of the
date of the

6

 

Letter Agreement, the Purchase Price is fair, from a financial point of view, to the
Company.

     Section 4.5 Brokers. Except for REGAL, Lazard and Merrill Lynch, Pierce, Fenner &
Smith Incorporated, the fees of which will be paid by the Company, no broker, finder or investment
banker is entitled to any brokerage, finder’s or other fee or commission in connection with the
transactions contemplated hereby based upon arrangements made by or on behalf of the Company.

     Section 4.6 No Changes to Indemnification Provisions. The Company acknowledges and
agrees that the execution and delivery of this Agreement shall not in any way modify the provisions
of any existing agreement between the Company and any Person (including any Representative of the
Seller), or of the Company’s articles of incorporation or bylaws, as the same relate to such
Person’s rights as a director or officer of the Company, in his or her capacity as such, to
indemnification by, and/or advancement of expenses from, the Company.

     Section 4.7 No Other Representations or Warranties. The Company acknowledges and
agrees it is not relying upon any representations or warranties of the Seller, express or implied,
except those contained herein, and the Company specifically does not request, desire or require the
Seller to make any other representations or warranties whatsoever with respect to the Seller and/or
the Purchased Shares or any other matter with respect to any of the transactions contemplated
hereby.

ARTICLE V

COVENANTS

     Section 5.1 Confidentiality. The Seller shall hold, and shall cause its
Representatives to hold, in confidence all documents and information furnished to it by or on
behalf of the Company in connection with the transactions contemplated hereby pursuant to the
terms of the confidentiality and non-disclosure agreement dated September 6, 2007 between the
Company and each of the Seller and The Craig H. Neilsen Foundation (the “Confidentiality
Agreement”), which shall continue in full force and effect.

     Section 5.2 Consents and Filings; Further Assurances. The Seller and the Company
shall use their reasonable best efforts to take, or cause to be taken, all appropriate action to
do, or cause to be done, all things necessary, proper or advisable under applicable Law or
otherwise to consummate and make effective the transactions contemplated by this Agreement as
promptly as practicable, including to (i) obtain from Governmental Authorities and other Persons
all consents, approvals, authorizations, qualifications and orders and give all notices as are
necessary for the consummation of the transactions contemplated by this Agreement, including the
Probate Approval and all necessary approvals under applicable Gaming Laws, (ii) promptly make all
necessary
filings, and thereafter make any other required submissions, with respect to this Agreement
required under applicable Law (including applicable Gaming Laws) and (iii) have vacated, lifted,
reversed or overturned any order, decree, ruling, judgment, injunction or other action (whether
temporary, preliminary or permanent) that is then in effect and that

7

 

enjoins, restrains,
conditions, makes illegal or otherwise restricts or prohibits the consummation of the transactions
contemplated by this Agreement.

     Section 5.3 Public Announcements. On and after the date hereof and through the
Closing Date, the Parties shall consult with each other before issuing any press release or
otherwise making any public statements with respect to this Agreement or the transactions
contemplated hereby, and neither Party shall issue any press release or make any public statement
prior to obtaining the other Party’s written approval, which approval shall not be unreasonably
withheld, except that no such approval shall be necessary to the extent disclosure may be required
by applicable Law or any Gaming Authority or any listing agreement or rule of any stock exchange
applicable to any Party. For the avoidance of doubt, nothing in Section 5.1 or this Section 5.3
shall prohibit the Seller from disclosing this Agreement or a description of the transactions
contemplated hereby to any Governmental Authority if and to the extent requested or required by
such Governmental Authority.

     Section 5.4 Financing.

          (a) The Company shall use its reasonable best efforts to arrange and obtain new debt financing
(the “Financing”), on terms and conditions satisfactory to the Company, in an aggregate
amount sufficient to (i) repay or otherwise retire all of the Company’s indebtedness under its
existing senior credit facilities and retire or amend its existing senior notes, in each case,
including any accrued and unpaid interest, fees or premiums owed in connection therewith (the
“Debt Retirement”), (ii) fund the Purchase Price, (iii) pay all fees and expenses of the
Company in connection with the Financing and the transactions contemplated hereby, and (iv) permit
the Company to make additional immediate borrowings under a revolving credit facility of at least
$75 million.

          (b) Prior to the Closing, the Seller, in its capacity as a stockholder of the Company, shall,
and shall use reasonable best efforts to cause its Representatives to, at the Company’s sole
expense, cooperate with the Company’s reasonable requests to assist the Company with obtaining the
Financing and all necessary approvals under applicable Gaming Laws.

     Section 5.5 Registration Rights and Holdbacks. The Seller and the Company hereby
acknowledge and agree that Section 4.2 of that certain Plan of Reorganization, entered into as of
November 15, 1993, by and among Craig H. Neilsen, the Company and Craig H. Neilsen in his capacity
as trustee of the trust created under the Last Will and Testament of Ray Neilsen dated October 9,
1963 (the “Reorg Agreement”), provides the Seller with certain registration rights
regarding shares of Company Common Stock owned by the Seller. The Seller and the Company wish to
clarify and revise certain terms and provisions of such registration rights. Accordingly, the
Company and the Seller agree that the provisions of Section 4.2 of the Reorg Agreement are
hereby amended and restated in their entirety to read as set forth on Annex A attached hereto. The
Company and the Seller further agree that provisions of the amended and restated Section 4.2 of the
Reorg Agreement shall survive the termination of this Agreement, the Closing and the termination of
the Reorg Agreement.

8

 

     Section 5.6 Intervening Sale Transaction. If, prior to the Closing, (a) the Company
receives a proposal from a third party pursuant to which such third party would acquire at least
eighty percent (80%) of the Company Common Stock at a price per share in excess of the Per Share
Price (a “Sale Proposal “) and (b) the Company enters into a definitive agreement with
respect to such Sale Proposal (a “Sale Agreement”), at least eight (8) Business Days prior
to entering into such Sale Agreement, the Company shall notify the Seller regarding the Sale
Proposal and the Seller shall have the right in its sole discretion unilaterally to have the
Purchased Shares acquired, on the same basis as the other shares of Company Common Stock, in the
transaction contemplated by the Sale Proposal, exercisable by written notice by the Seller to the
Company within five (5) Business Days after receipt of such notice from the Company (the
“Tag-Along Right “). If the Seller elects to exercise the Tag-Along Right and the Sale
Agreement provides for the acquisition of the Purchased Shares on the same basis as the other
shares of the Company’s common stock, then the Company at any time may, in its sole discretion,
unilaterally (i) consistent with the Seller’s election of the Tag-Along Right, extend the Closing
for any duration the Company elects, provided that if the Sale Agreement is terminated, the Closing
must occur within six (6) months after such termination or (ii) terminate this Agreement. If the
Seller exercises its Tag-Along Right in connection with a Sale Agreement, then in connection with
any vote of the Company’s stockholders required to approve the transactions contemplated in the
Sale Agreement, the Seller shall, and hereby agrees to, vote all of its shares of Company Common
Stock, including the Purchased Shares if then outstanding, in a manner consistent with the
recommendation of the Company Board with respect to the Sale Agreement, as such recommendation may
change from time to time. If the Seller does not elect to exercise its Tag-Along Right, all of the
terms and conditions of this Agreement shall remain in full force and effect.

ARTICLE VI

CONDITIONS TO CLOSING

     Section 6.1 General Conditions. The respective obligations of the Company and the
Seller to consummate the transactions contemplated by this Agreement shall be subject to the
fulfillment, at or prior to the Closing, of the following conditions, which may, to the extent
permitted by applicable Law, be waived in writing by either Party in its sole discretion
(provided, that such waiver shall only be effective as to the obligations of the waiving
Party):

          (a) No Injunction or Prohibition. No Governmental Authority shall have enacted,
issued, promulgated, enforced or entered any Law (whether temporary, preliminary or permanent) that
is then in effect and that enjoins, restrains, conditions,
makes illegal or otherwise prohibits the consummation of the transactions contemplated by this
Agreement.

     Section 6.2 Conditions to Obligations of the Seller. The obligations of the Seller to
consummate the transactions contemplated by this Agreement shall be subject to the fulfillment, at
or prior to the Closing, of each of the following conditions, any of which, to the extent permitted
by applicable Law, may be waived in writing by the Seller in its sole discretion:

9

 

          (a) Representations, Warranties and Covenants. The representations and warranties of
the Company contained in this Agreement or any schedule, certificate or other document delivered
pursuant hereto or in connection with the transactions contemplated hereby shall be true and
correct in all material respects both when made and as of the Closing Date. The Company shall have
performed all obligations and agreements and complied with all covenants required by this Agreement
to be performed or complied with by it prior to or at the Closing. The Seller shall have received
from the Company a certificate to the effect set forth in the preceding sentences, signed by a duly
authorized officer thereof.

          (b) Probate Court Approval. The Seller shall have received the Probate Approval and
such approval shall be in full force and effect.

     Section 6.3 Conditions to Obligations of the Company. The obligations of the Company
to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment,
at or prior to the Closing, of each of the following conditions, any of which, to the extent
permitted by applicable Law, may be waived in writing by the Company in its sole discretion:

          (a) Representations, Warranties and Covenants. The representations and warranties of
the Seller contained in this Agreement or any schedule, certificate or other document delivered
pursuant hereto or in connection with the transactions contemplated hereby shall be true and
correct in all material respects both when made and as of the Closing Date. The Seller shall have
performed all obligations and agreements and complied with all covenants required by this Agreement
to be performed or complied with by it prior to or at the Closing. The Company shall have received
from the Seller a certificate to the effect set forth in the preceding sentences, signed by a duly
authorized Representative thereof.

          (b) Regulatory Approvals. The Company shall have received all authorizations,
consents, orders and approvals of all Governmental Authorities (including approvals from applicable
Gaming Authorities) necessary to consummate the Financing and the transactions contemplated hereby
and such authorizations, consents, orders and approvals shall be in full force and effect.

          (c) Financing. The Company shall have consummated the Financing on terms and
conditions satisfactory to the Company, received the funds necessary to complete the Debt
Retirement, pay the Purchase Price and pay all fees and expenses of the
Company associated with the Financing and the Repurchase Transaction and the Company shall
have additional immediate borrowing availability under a revolving credit facility of at least $75
million.

          (d) Solvency. The Board shall have (a) received an opinion from REGAL (or its
successors), dated the Closing Date, to the effect that, as of the Closing Date, after giving
effect to the Financing, the Debt Retirement, the Repurchase Transaction and the payment of all
fees and expenses in connection with the foregoing, (i) the Company will be able to pay its debts
and they become due in the usual course of business

10

 

and (ii) the Company’s total assets are not
less than the sum of its total liabilities (plus the amount that would be needed upon dissolution
to satisfy the preferential rights of any stockholders with rights superior to the Seller) and (b)
determined that, as of the Closing, after giving effect to the Financing, the Repurchase
Transaction and the payment of all of the Company’s fees and expenses associated therewith, to the
extent the same are deemed to be a “distribution” under Nevada Revised Statutes 78.191, the same
will neither cause the Company to be unable to pay its debts as they become due in the usual course
of the Company’s business, nor cause the Company’s total assets to be less than the sum of its
total liabilities (plus the amount that would be needed upon dissolution to satisfy the
preferential rights of any stockholders with rights superior to the Seller), and as such are not
prohibited by Nevada Revised Statutes 78.288(2).

          (e) Release of IRS Lien. The Company shall have received evidence satisfactory to the
Company that the IRS Lien on the Purchased Shares has been released.

ARTICLE VII

TERMINATION

     Section 7.1 Termination. This Agreement may be terminated at any time prior to the
Closing:

          (a) by mutual written consent of the Company and the Seller;

          (b) (i) by the Seller, if the Company breaches or fails to perform in any material respect any
of its representations, warranties or covenants contained in this Agreement and such breach or
failure to perform (A) would give rise to the failure of a condition set forth in Section 6.2, (B)
cannot be or has not been cured within 30 days following delivery to the Company of written notice
specifying such breach or failure to perform and (C) has not been waived by the Seller or (ii) by
the Company, if the Seller breaches or fails to perform in any material respect any of its
representations, warranties or covenants contained in this Agreement and such breach or failure to
perform (A) would give rise to the failure of a condition set forth in Section 6.3, (B) cannot be
or has not been cured within 30 days following delivery to the Seller of written notice specifying
such breach or failure to perform and (C) has not been waived by the Company;

          (c) by either the Seller or the Company if the Closing shall not have occurred by June 30,
2011 (the “Termination Date”); provided, that the Party so requesting termination
is not then in material breach of this
Agreement; provided further, that (i) if as of the Termination Date, all of
the conditions precedent to Closing other than the condition set forth in Section 6.3(b) (and other
than those conditions that by their terms are to be satisfied at the Closing or on the Closing
Date) shall have been satisfied as of the Termination Date, then either the Seller or the Company
(if such Party is not then in material breach of this Agreement) may unilaterally extend the
Termination Date for up to 60 days upon written notice to the other by the Termination Date, in
which case the Termination Date shall be deemed for all purposes to be so extended (the
“Extended Termination Date”) and (ii) if as of the Extended Termination Date, all of the
conditions precedent to Closing other than the condition set forth in Section 6.3(b) (and other
than

11

 

those conditions that by their terms are to be satisfied at the Closing or on the Closing
Date) shall have been satisfied as of the Extended Termination Date, then either the Seller or the
Company (if such Party is not then in material breach of this Agreement) may unilaterally extend
the Extended Termination Date for up to 60 days upon written notice to the other by the Extended
Termination Date, in which case the Extended Termination Date shall be deemed for all purposes to
be so extended;

          (d) by either the Seller or the Company in the event that any court of competent jurisdiction
(or any Gaming Authority) shall have issued an order, decree or ruling or taken any other action
restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement and
such order, decree, ruling or other action shall have become final and nonappealable;
provided, that the Party so requesting termination shall have used its commercially
reasonable efforts, in accordance with Article V, to have such order, decree, ruling or other
action vacated; or

          (e) by the Company pursuant to Section 5.6.

     The Party seeking to terminate this Agreement pursuant to this Section 7.1 (other than Section
7.1(a)) shall give prompt written notice of such termination to the other Party.

     Section 7.2 Effect of Termination. In the event of termination of this Agreement as
provided in Section 7.1, this Agreement shall forthwith become void and there shall be no liability
on the part of either Party except (a) for the provisions of Sections 3.5 and 4.5 relating to
broker’s fees and finder’s fees, Section 4.6 relating to indemnification, Section 5.1 relating to
confidentiality, Section 5.3 relating to public announcements, Section 8.1 relating to fees and
expenses, Section 8.4 relating to notices, Section 8.7 relating to third-party beneficiaries,
Section 8.8 relating to governing law, Section 8.9 relating to submission to jurisdiction and this
Section 7.2 and (b) that nothing herein shall relieve either Party from liability for any breach of
this Agreement or any agreement made as of the date hereof or subsequent thereto pursuant to this
Agreement.

ARTICLE VIII

GENERAL PROVISIONS

     Section 8.1 Fees and Expenses. Except as otherwise provided herein, all fees and
expenses incurred in connection with or related to this Agreement and the transactions
contemplated hereby shall be paid by the Party incurring such fees or expenses, whether or not
such transactions are consummated.

     Section 8.2 Amendment and Modification. This Agreement may not be amended, modified
or supplemented in any manner, whether by course of conduct or otherwise, except by an instrument
in writing specifically designated as an amendment hereto, signed by or on behalf of each Party.

     Section 8.3 Waiver. No failure or delay of either Party in exercising any right or
remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce such right or power,
or any course of conduct, preclude any other or further exercise thereof or

12

 

the exercise of any
other right or power. The rights and remedies of the Parties hereunder are cumulative and are not
exclusive of any rights or remedies which they would otherwise have hereunder. Any agreement on
the part of either Party to any such waiver shall be valid only if set forth in a written
instrument executed and delivered by a duly authorized officer or other authorized Representative
on behalf of such Party.

     Section 8.4 Notices. All notices and other communications hereunder shall be in
writing and shall be deemed duly given (a) on the date of delivery if delivered personally, or if
by facsimile or e-mail, upon written confirmation of the receipt thereof by facsimile, e-mail or
otherwise, (b) on the first Business Day following the date of dispatch if delivered utilizing a
next-day service by a recognized next-day courier or (c) on the earlier of confirmed receipt or the
fifth Business Day following the date of mailing if delivered by registered or certified mail,
return receipt requested, postage prepaid. All notices hereunder shall be delivered to the
addresses set forth below, or pursuant to such other instructions as may be designated in writing
by the Party to receive such notice:

          (i) if to the Seller, to:

Estate of Craig H. Neilsen

c/o Ameristar Casinos, Inc.

16633 Ventura Boulevard, Suite 1050

Encino, California 91436

Attention: Ray H. Neilsen

                   Gordon R. Kanofsky

Facsimile: (818) 543-4402

Email: gordyk55@earthlink.net

with a copy (which shall not constitute notice) to:

Munger, Tolles & Olson LLP

355 South Grand Avenue, 35th Floor

Los Angeles, California 90071-1560

Attention: Robert B. Knauss, Esq.

Facsimile: (213) 683-5137

Email: rob.knauss@mto.com

          (ii) if to the Company, to:

Ameristar Casinos, Inc.

3773 Howard Hughes Parkway

Suite 490 South

Las Vegas, Nevada 89169

Attention: Peter C. Walsh, Esq.

Facsimile: (702) 733-8478

Email: peter.walsh@ameristar.com

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with a copies (which shall not constitute notice) to:

Gibson, Dunn & Crutcher LLP

2029 Century Park East, 40th Floor

Los Angeles, California 90067

Attention: Jonathan K. Layne, Esq.

Facsimile: (310) 552-7053

Email: jlayne@gibsondunn.com

and

Brownstein Hyatt Farber Schreck, LLP

100 North City Parkway, Suite 1600

Las Vegas, Nevada 89106

Attention: Ellen Schulhofer, Esq.

Facsimile: (702) 382-8135

Email: eschulhofer@bhfs.com

     Section 8.5 Interpretation. When a reference is made in this Agreement to a Section,
Article, Exhibit or Annex such reference shall be to a Section, Article, Exhibit or Annex of or to
this Agreement unless otherwise indicated. The table of contents and headings contained in this
Agreement are for convenience of reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. All words used in this Agreement will be construed to
be of such gender or number as the circumstances require. The word “including” and words of
similar import when used in this Agreement will mean “including, without limitation,” unless
otherwise specified.

     Section 8.6 Entire Agreement. This Agreement (including Annex A attached hereto) and
the Confidentiality Agreement constitute the entire agreement of the Parties with respect to the
subject matter hereof and thereof, and supersede all prior and contemporaneous written or oral
agreements, arrangements, communications and understandings, between the Parties with respect to
the subject matter hereof and thereof, including the Letter Agreement.

     Section 8.7 No Third-Party Beneficiaries. Other than as set forth in Section 8.10
hereof, nothing in this Agreement, express or implied, is intended to or shall confer upon any
Person other than the Parties and their respective successors and permitted assigns any
legal or equitable right, benefit or remedy of any nature under or by reason of this
Agreement.

     Section 8.8 Governing Law. This Agreement and all disputes or controversies arising
out of or relating to this Agreement or the transactions contemplated hereby shall be governed by,
and construed in accordance with, the internal laws of the State of Nevada, without regard to the
laws of any other jurisdiction that might be applied because of the conflicts of laws principles of
the State of Nevada.

14

 

     Section 8.9 Submission to Jurisdiction. Each of the Parties irrevocably agrees that
any legal action or proceeding arising out of or relating to this Agreement brought by the other
Party or its successors or assigns shall be brought and determined in any Nevada state or federal
court sitting in Clark County, Nevada (or, if such court lacks subject matter jurisdiction, in any
appropriate Nevada state or federal court), and each of the Parties hereby irrevocably submits to
the exclusive jurisdiction of the aforesaid courts for itself and with respect to its property,
generally and unconditionally, with regard to any such action or proceeding arising out of or
relating to this Agreement and the transactions contemplated hereby. Each of the Parties agrees
not to commence any action, suit or proceeding relating thereto except in the courts described
above in Nevada, other than actions in any court of competent jurisdiction to enforce any judgment,
decree or award rendered by any such court in Nevada as described herein. Each of the Parties
further agrees that notice as provided herein shall constitute sufficient service of process and
the Parties further waive any argument that such service is insufficient. Each of the Parties
hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion or as a
defense, counterclaim or otherwise, in any action or proceeding arising out of or relating to this
Agreement or the transactions contemplated hereby, (a) any claim that it is not personally subject
to the jurisdiction of the courts in Nevada as described herein for any reason, (b) that it or its
property is exempt or immune from jurisdiction of any such court or from any legal process
commenced in such courts (whether through service of notice, attachment prior to judgment,
attachment in aid of execution of judgment, execution of judgment or otherwise) and (c) that (i)
the suit, action or proceeding in any such court is brought in an inconvenient forum, (ii) the
venue of such suit, action or proceeding is improper or (iii) this Agreement, or the subject matter
hereof, may not be enforced in or by such courts.

     Section 8.10 Assignment; Successors. Neither this Agreement nor any of the rights,
interests or obligations under this Agreement may be assigned or delegated, in whole or in part, by
operation of Law or otherwise, by either Party without the prior written consent of the other
Party, and any such assignment without such prior written consent shall be null and void. Subject
to the preceding sentence, this Agreement will be binding upon, inure to the benefit of, and be
enforceable by, the Parties and their respective successors and assigns, including the
beneficiaries of the Seller.

     Section 8.11 Enforcement. 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 their
specific terms or were otherwise breached. Accordingly, each of the Parties shall be entitled to
specific performance of the terms hereof, including an injunction
or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and
provisions of this Agreement in any Nevada state or federal court sitting in Clark County, Nevada
(or, if such court lacks subject matter jurisdiction, in any appropriate Nevada state or federal
court), this being in addition to any other remedy to which such Party is entitled at law or in
equity. Each of the Parties hereby further waives (a) any defense in any action for specific
performance that a remedy at law would be adequate and (b) any requirement under any law to post
security as a prerequisite to obtaining equitable relief.

15

 

     Section 8.12 Currency. All references to “dollars” or “$” in this Agreement refer to
United States dollars, which is the currency used for all purposes in this Agreement.

     Section 8.13 Severability. Whenever possible, each provision or portion of any
provision of this Agreement shall be interpreted in such manner as to be effective and valid under
applicable Law, but if any provision or portion of any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable Law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision
or portion of any provision in such jurisdiction, and the Parties shall negotiate in good faith to
modify this Agreement so as to effect the original intent of the Parties as closely as possible in
an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the
extent possible.

     Section 8.14 Waiver of Jury Trial. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     Section 8.15 Counterparts. This Agreement may be executed in two or more
counterparts, all of which shall be considered one and the same instrument and shall become
effective when one or more counterparts have been signed by each of the Parties and delivered to
the other Party.

     Section 8.16 Facsimile or Electronic Signature. This Agreement may be executed by
facsimile or electronic signature and a facsimile or electronic signature shall constitute an
original for all purposes.

[The remainder of this page is intentionally left blank.]

16

 

     IN WITNESS WHEREOF, the Company and the Seller have caused this Agreement to be executed as of
the date first written above by their respective officers or other authorized representatives
thereunto duly authorized.

	 	 	 	 	 
	 	AMERISTAR CASINOS, INC.

 	 
	 	By:  	/s/ Larry A. Hodges
 	 
	 	 	Name:  	Larry A. Hodges 	 
	 	 	Title:  	President and COO 	 
	 
	 	ESTATE OF CRAIG H. NEILSEN

 	 
	 	By:  	/s/ Ray H. Neilsen
 	 
	 	 	Name:  	Ray H. Neilsen 	 
	 	 	Title:  	Co-Executor and Co-Personal Representative of the Estate of Craig H. Neilsen 	 
	 
	 	 	 
	 	By:  	      /s/ Gordon R. Kanofsky
 	 
	 	 	Name:  	Gordon R. Kanofsky 	 
	 	 	Title:  	Co-Executor and Co-Personal Representative of the Estate of Craig H. Neilsen 	 
	 

[Signature Page to Stock Purchase Agreement]exv10w2

Exhibit 10.2     
Execution Copy

ANNEX A TO STOCK PURCHASE AGREEMENT

BETWEEN AMERISTAR CASINOS, INC. AND THE ESTATE OF CRAIG H. NEILSEN DATED AS OF MARCH 25, 2011

(“STOCK PURCHASE AGREEMENT”) AMENDING AND RESTATING SECTION 4.2 OF THAT CERTAIN PLAN OF

REORGANIZATION, ENTERED INTO AS OF NOVEMBER 15, 1993, BY AND AMONG CRAIG H. NEILSEN, AMERISTAR

CASINOS, INC. AND CRAIG H. NEILSEN IN HIS CAPACITY AS TRUSTEE OF THE TRUST CREATED UNDER THE LAST

WILL AND TESTAMENT OF RAY NEILSEN DATED OCTOBER 9, 1963

     Section 4.2 Registration Rights.

          4.2.1 Defined Terms. For purposes of this Section 4.2, the capitalized terms not
otherwise defined in this Section 4.2 or in the Stock Purchase Agreement (as defined below) shall
have the meanings ascribed to them below:

          “Agreement” means this Section 4.2 as amended and restated in this Annex A to Stock
Purchase Agreement.

          “Business Day” means any day that is not a Saturday, a Sunday or other day on which
banks are required or authorized by law to be closed in The City of New York.

          “Common Stock” means the common stock, par value $0.01 per share, of the Company, and
any equity securities issued or issuable in exchange for or with respect to the Common Stock by way
of a stock dividend, stock split or combination of shares or in connection with a reclassification,
recapitalization, merger, consolidation or other reorganization or otherwise.

          “Company” means Ameristar Casinos, Inc., a Nevada corporation.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder.

          “FINRA” means the Financial Industry Regulatory Authority, Inc.

          “Holder” or “Holders” means the Original Holder, any and all beneficiaries of
the Original Holder, including the Craig H. Neilsen Foundation, the Ray H. Neilsen Trust
established under the Neilsen Trust and any and all beneficiaries thereof, and Ray H. Neilsen, and
any other Persons who (i) succeed to the interest of a Holder in Registrable Securities by
operation of law or (ii) who pursuant to a privately negotiated sale or other transfer of
Registrable Securities by a Holder, is expressly designated as a “Holder” for purposes of this
Agreement.

          “Issuer Free Writing Prospectus” means an issuer free writing prospectus, as defined
in Rule 433 under the Securities Act, relating to an offer of Registrable Securities.

 

 

          “Majority Participating Holders” means Participating Holders holding more than 50% of
the Registrable Securities proposed to be included in any offering of Registrable Securities by
such Participating Holders pursuant to Section 4.2.2 or Section 4.2.3.

          “Original Holder” means the Estate of Craig H. Neilsen.

          “Person” means any corporation, partnership, limited liability company, limited
liability partnership, syndicate, natural person (whether individually or in a fiduciary capacity),
trust, estate, association, organization or other entity or any governmental or regulatory body or
other agency or authority or political subdivision thereof, including any successor, by merger or
otherwise, of any of the foregoing.

          “Registrable Securities” means (i) all shares of Common Stock held by the Original
Holder as of March 25, 2011 and (ii) shares of Common Stock issued or issuable, directly or
indirectly, in exchange for or with respect to the Common Stock referenced in clause (i) above. As
to any particular Registrable Securities, such securities shall cease to be Registrable Securities
when (i) based on an opinion of counsel or a no-action letter of the SEC, in either case reasonably
acceptable to the Company, all such securities are immediately eligible for sale pursuant to Rule
144 (or any successor provision) under the Securities Act, (ii) such securities shall have been
sold pursuant to Rule 144 (or any successor provision) under the Securities Act, (iii) a
registration statement with respect to the sale of such securities shall have become effective
under the Securities Act and such securities shall have been disposed of in accordance with such
registration statement, (iv) such securities shall have been otherwise transferred and new
certificates for them not bearing a legend restricting further transfer shall have been delivered
by the Company, (v) such securities shall have ceased to be outstanding or (vi) such securities
have been sold or otherwise transferred to any Person who is not a Holder.

          “Registration Expenses” means all fees and expenses incurred in connection with the
Company’s performance of or compliance with the provisions of this Section 4.2, including: (i) all
registration, listing, qualification and filing fees (including FINRA filing fees); (ii) fees and
expenses of compliance with state securities or “blue sky” laws (including counsel fees in
connection with the preparation of a blue sky and legal investment survey and FINRA filings); (iii)
printing and copying expenses; (iv) messenger and delivery expenses; (v) expenses incurred in
connection with any road show; (vi) fees and disbursements of counsel for the Company; (vii) with
respect to each registration, the fees and disbursements of one counsel for the selling Holder(s)
selected by the Majority Participating Holders, in the case of a registration pursuant to Section
4.2.2 or Section 4.2.3; (viii) fees and disbursements of independent public accountants, including
the expenses of any audit or “cold comfort” letter, and fees and expenses of other persons,
including special experts, retained by the Company; (ix) underwriter fees, excluding discounts and
commissions, and any other expenses which are customarily borne by the issuer or seller of
securities in a public equity offering; and (x) all internal expenses of the Company (including all
salaries and expenses of officers and employees performing legal or accounting duties).

2

 

          “SEC” means the Securities and Exchange Commission.

          “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

          “Stock Purchase Agreement” means that certain Stock Purchase Agreement, dated as of
March 25, 2011, by and between the Company and the Original Holder.

          4.2.2 Demand Registrations.

               (a) (i) Subject to Section 4.2.2(c), at any time or from time to time, one or more Holders
shall have the right to require the Company to file a registration statement under the Securities
Act covering such aggregate number of Registrable Securities that have an aggregate anticipated
offering price of at least $10,000,000 (based on the market price of the Common Stock as of the
date of the Demand Registration Request), by delivering a written request therefor to the Company
specifying the number of Registrable Securities to be included in such registration by such Holders
and the intended method of distribution thereof. All such requests by any Holder pursuant to this
Section 4.2.2(a)(i) are referred to as “Demand Registration Requests,” the registrations so
requested are referred to as “Demand Registrations” and the Holders making such demand for
registration are referred to as the “Initiating Holders.” As promptly as practicable, but
no later than 10 days after receipt of a Demand Registration Request, the Company shall give
written notice (a “Demand Exercise Notice”) of such Demand Registration Request to all
Holders of record of Registrable Securities.

                    (ii) The Company, subject to Sections 4.2.4 and 4.2.7, shall include in a Demand Registration
(A) the Registrable Securities of the Initiating Holders and (B) the Registrable Securities of any
other Holder of Registrable Securities that shall have made a written request to the Company within
the time limits specified below for inclusion in such registration (together with the Initiating
Holders, the “Participating Holders”). Any such request from the other Holders must be
delivered to the Company within 15 days after the receipt of the Demand Exercise Notice and must
specify the maximum number of Registrable Securities intended to be disposed of by such other
Holders.

                    (iii) The Company, subject to Section 4.2.2(c), shall use its reasonable best efforts (x) to
file, as expeditiously as possible, but in any event within 45 days, a registration under the
Securities Act of the Registrable Securities that the Company has been so requested to register for
distribution in accordance with such intended method of distribution and (y) cause such
registration statement to be declared effective by the SEC as soon as practicable thereafter.

               (b) Registrations under this Section 4.2.2 shall be on such appropriate registration form of
the SEC for the disposition of such Registrable Securities in accordance with the intended method
of disposition thereof, which form shall be selected by the Company and shall be reasonably
acceptable to the Majority Participating Holders.

3

 

               (c) The Demand Registration rights granted in Section 4.2.2(a) to the Holders are subject to
the following limitations:

                    (i) the Company shall not be required to cause a registration pursuant to Section 4.2.2(a) to
be filed within 90 days or to be declared effective within a period of 180 days after the effective
date of any other registration statement of the Company filed pursuant to the Securities Act;

                    (ii) if in the opinion of outside counsel to the Company, any registration of Registrable
Securities would require disclosure of information not otherwise then required by law to be
publicly disclosed and, in the good faith judgment of the board of directors of the Company, such
disclosure is reasonably likely to adversely affect any material financing, acquisition, corporate
reorganization or merger or other material transaction or event involving the Company or otherwise
have a material adverse effect on the Company (a “Valid Business Reason”), the Company may
postpone or withdraw a filing of a registration statement relating to a Demand Registration Request
until such Valid Business Reason no longer exists, but in no event shall the Company avail itself
of such right for more than 90 days, in the aggregate, in any period of 365 consecutive days (such
period of postponement or withdrawal under this clause (ii), the “Postponement Period”);
and the Company shall give notice of its determination to postpone or withdraw a registration
statement and of the fact that the Valid Business Reason for such postponement or withdrawal no
longer exists, in each case, promptly after the occurrence thereof; and

                    (iii) the Company shall not be obligated to effect more than three Demand Registrations under
Section 4.2.2(a) for the Holders.

     If the Company shall give any notice of postponement or withdrawal of any registration
statement pursuant to clause (ii) above, the Company shall not register any equity security of the
Company during the period of postponement or withdrawal. Each Holder of Registrable Securities
agrees that, upon receipt of any notice from the Company that the Company has determined to
withdraw any registration statement pursuant to clause (ii) above, such Holder will discontinue its
disposition of Registrable Securities pursuant to such registration statement. If the Company
shall have withdrawn or prematurely terminated a registration statement filed under Section
4.2.2(a)(i), the Company shall not be considered to have effected an effective registration for the
purposes of this Agreement until the Company shall have filed a new registration statement covering
the Registrable Securities covered by the withdrawn registration statement and such registration
statement shall have been declared effective and shall not have been withdrawn. If the Company
shall give any notice of withdrawal or postponement of a registration statement, at such time as
the Valid Business Reason that caused such withdrawal or postponement no longer exists (but in no
event more than 90 days after the date of the postponement or withdrawal), the Company shall use
its reasonable best efforts to effect the registration under the Securities Act of the Registrable
Securities covered by the withdrawn or postponed registration statement in accordance with this
Section 4.2.2.

4

 

               (d) The Company, subject to Sections 4.2.4 and 4.2.7, may elect to include in any registration
statement and offering made pursuant to Section 4.2.2(a)(i), (i) authorized but unissued shares of
Common Stock or shares of Common Stock held by the Company as treasury shares and (ii) any other
shares of Common Stock that are requested to be included in such registration pursuant to the
exercise of piggyback rights granted by the Company that are not inconsistent with the rights
granted in, or otherwise conflict with the terms of, this Agreement (“Additional Piggyback
Rights”); provided, however, that such inclusion shall be permitted only to the
extent that it is pursuant to and subject to the terms of the underwriting agreement or
arrangements, if any, entered into by the Participating Holders.

               (e) A Holder may withdraw its Registrable Securities from a Demand Registration at any time.
If all such Holders do so, the Company shall cease all efforts to secure registration and such
registration nonetheless shall be deemed a Demand Registration for purposes of this Section 4.2.2
unless the withdrawal is made following withdrawal or postponement of such registration by the
Company pursuant to a Valid Business Reason as contemplated by Section 4.2.2(c).

               (f) A Demand Registration shall not be deemed to have been effected and shall not count as
such (i) unless a registration statement with respect thereto has become effective and has remained
effective for a period of at least 90 days or such shorter period during which all Registrable
Securities covered by such Registration Statement have been sold or withdrawn, or, if such
Registration Statement relates to an underwritten offering, such longer period as, in the opinion
of counsel for the underwriter(s), is required by law for delivery of a prospectus in connection
with the sale of Registrable Securities by an underwriter or dealer, (ii) if, after the
registration statement with respect thereto has become effective, it becomes subject to any stop
order, injunction or other order or requirement of the SEC or other governmental agency or court
for any reason, (iii) if it is withdrawn by the Company pursuant to a Valid Business Reason as
contemplated by Section 4.2.2(c) or (iv) if the conditions to closing specified in the purchase
agreement or underwriting agreement entered into in connection with such Demand Registration are
not satisfied, other than solely by reason of some act or omission of the Participating Holders.

               (g) In connection with any Demand Registration, the Majority Participating Holders may
designate the lead managing underwriter in connection with such registration and each other
managing underwriter for such registration, provided, that, in each case, each such
underwriter is reasonably satisfactory to the Company.

          4.2.3 Piggyback Registrations.

               (a) If, at any time, the Company proposes or is required to register any Common Stock under
the Securities Act (other than pursuant to (i) registrations on such form or similar form(s) solely
for registration of securities in connection with an employee benefit plan or dividend reinvestment
plan or (ii) a Demand Registration under Section 4.2.2) on a registration statement on Form S-1 or
Form S-3 or an equivalent general registration form then in effect, whether or not for its own
account,

5

 

the Company shall give prompt written notice of its intention to do so to each Holder of
record of Registrable Securities. Upon the written request of any such Holder, made within 15 days
following the receipt of any such written notice (which request shall specify the maximum number of
Registrable Securities intended to be disposed of by such Holder and the intended method of
distribution thereof), the Company, subject to Sections 4.2.3(b), 4.2.4 and 4.2.7, shall use its
reasonable best efforts to cause all such Registrable Securities to be included in the registration
statement with the securities that the Company at the time proposes to register to permit the sale
or other disposition by the Holders in accordance with the intended method of distribution thereof
of the Registrable Securities to be so registered. No registration of Registrable Securities
effected under this Section 4.2.3(a) shall relieve the Company of its obligations to effect Demand
Registrations under Section 4.2.2.

               (b) If, at any time after giving written notice of its intention to register any equity
securities and prior to the effective date of the registration statement filed in connection with
such registration, the Company shall determine for any reason not to register or to delay
registration of such equity securities, the Company will give written notice of such determination
to each Holder of record of Registrable Securities and (i) in the case of a determination not to
register, shall be relieved of its obligation to register any Registrable Securities in connection
with such abandoned registration, without prejudice, however, to the rights of Holders under
Section 4.2.2 and (ii) in the case of a determination to delay such registration of its equity
securities, shall be permitted to delay the registration of such Registrable Securities for the
same period as the delay in registering such other equity securities.

               (c) Any Holder shall have the right to withdraw its request for inclusion of its Registrable
Securities in any registration statement pursuant to this Section 4.2.3 by giving written notice to
the Company of its request to withdraw. Such request must be made in writing prior to the
execution of the underwriting agreement with respect to such registration. Such withdrawal shall
be irrevocable and, after making such withdrawal, a Holder shall no longer have any right to
include Registrable Securities in the registration as to which such withdrawal was made.

          4.2.4 Priority in Registrations.

               (a) If any requested registration made pursuant to Section 4.2.2 involves an underwritten
offering and the lead managing underwriter of such offering (the “Manager”) shall advise
the Company that, in its view, the number of securities requested to be included in such
registration by the Holders of Registrable Securities or any other persons, including those shares
of Common Stock requested by the Company to be included in such registration, exceeds the largest
number (the “Demand Sale Number”) that can be sold in an orderly manner in such offering
within a price range acceptable to the Majority Participating Holders, the Company shall use its
reasonable best efforts to include in such registration:

                    (i) first, all Registrable Securities requested to be included in such registration by the
Holders thereof; provided, however, that, if the number

6

 

of such Registrable Securities exceeds the Demand Sale Number, the number of such Registrable
Securities (not to exceed the Demand Sale Number) to be included in such registration shall be
allocated on a pro rata basis among all Holders requesting that Registrable Securities be included
in such registration, based on the number of Registrable Securities then owned by each such Holder
requesting inclusion in relation to the number of Registrable Securities owned by all Holders
requesting inclusion;

                    (ii) second, to the extent that the number of securities to be included pursuant to clause (i)
of this Section 4.2.4(a) is less than the Demand Sale Number, the remaining shares to be included
in such registration shall be allocated on a pro rata basis among all holders requesting that
securities be included in such registration pursuant to the exercise of Additional Piggyback Rights
(“Piggyback Shares”), based on the aggregate number of Piggyback Shares then owned by each
holder requesting inclusion in relation to the aggregate number of Piggyback Shares owned by all
holders requesting inclusion, up to the Demand Sale Number; and

                    (iii) third, to the extent that the number of securities to be included pursuant to clauses
(i) and (ii) of this Section 4.2.4(a) is less than the Demand Sale Number, any securities that the
Company proposes to register, up to the Demand Sale Number.

     If, as a result of the proration provisions of this Section 4.2.4(a), any Holder shall not be
entitled to include all Registrable Securities in a registration that such Holder has requested be
included, such Holder may elect to withdraw its request to include Registrable Securities in such
registration or may reduce the number requested to be included; provided, however,
that (A) such request must be made in writing prior to the execution of the underwriting agreement
with respect to such registration and (B) with respect to any Registrable Securities so withdrawn,
such withdrawal shall be irrevocable and, after making such withdrawal, such Holder shall no longer
have any right to include such withdrawn Registrable Securities in the registration as to which
such withdrawal was made.

               (b) If any registration pursuant to Section 4.2.3 involves an underwritten offering that was
proposed by the Company and the Manager shall advise the Company that, in its view, the number of
securities requested to be included in such registration exceeds the number (the “Company Sale
Number”) that can be sold in an orderly manner in such registration within a price range
acceptable to the Company, the Company shall include in such registration:

                    (i) first, all Common Stock that the Company proposes to register for its own account;

                    (ii) second, to the extent that the number of securities to be included pursuant to clause (i)
of this Section 4.2.4(b) is less than the Company Sale Number, the remaining shares to be included
in such registration shall be allocated on a pro rata basis among all Holders requesting that
Registrable Securities be included in such registration pursuant to the exercise of piggyback
rights pursuant to Section 4.2.3 of this

7

 

Agreement, based on the aggregate number of Registrable Securities then owned by each Holder
requesting inclusion in relation to the aggregate number of Registrable Securities owned by all
Holders requesting inclusion, up to the Company Sale Number; and

                    (iii) third, to the extent that the number of securities to be included pursuant to clauses
(i) and (ii) of this Section 4.2.4(b) is less than the Company Sale Number, the remaining shares to
be included in such registration shall be allocated on a pro rata basis among all holders
requesting that securities be included in such registration pursuant to the exercise of Additional
Piggyback Rights, based on the aggregate number of Piggyback Shares then owned by each holder
requesting inclusion in relation to the aggregate number of Piggyback Shares owned by all holders
requesting inclusion, up to the Company Sale Number.

          4.2.5 Registration Procedures. Whenever the Company is required by the provisions of
this Agreement to use its reasonable best efforts to effect or cause the registration of any
Registrable Securities under the Securities Act as provided in this Agreement, the Company as
expeditiously as possible:

               (a) shall prepare and file with the SEC the requisite registration statement and use its
reasonable best efforts to cause such registration statement to become and remain effective;

               (b) shall prepare and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary to keep such
registration statement effective for a period not in excess of 180 days or such lesser period of
time any Holder may be required under the Securities Act to deliver a prospectus in connection with
any sale of Registrable Securities and to comply with the provisions of the Securities Act with
respect to the disposition of all securities covered by such registration statement during such
period in accordance with the intended methods of disposition by the Holders set forth in such
registration statement; provided, however, that in the case of any registration of
Registrable Securities which are intended to be offered on a continuous or delayed basis, such 180
day period shall be extended until all such Registrable Securities are sold or become saleable
pursuant to Rule 144(k) under the Securities Act, provided, that Rule 415, or any successor
rule under the Securities Act, permits an offering on a continuous or delayed basis;
provided, further, that applicable rules under the Securities Act governing the
obligation to file a post-effective amendment permit, in lieu of filing a post-effective amendment
which (y) includes any prospectus required by Section 10(a) of the Securities Act or (z) reflects
facts or events representing a material or fundamental change in the information set forth in the
registration statement, the incorporation by reference of information required to be included in
(y) and (z) above to be contained in periodic reports filed pursuant to Section 13 or 15(d) of the
Exchange Act in the registration statement;

               (c) shall furnish, without charge, to each seller of such Registrable Securities and each
underwriter, if any, of the securities covered by such registration statement such number of copies
of such registration statement, each amendment thereto, the prospectus included in such
registration statement, each

8

 

preliminary prospectus and each Issuer Free Writing Prospectus utilized in connection
therewith, all in conformity with the requirements of the Securities Act, and such other documents
as such seller and underwriter reasonably may request in order to facilitate the public sale or
other disposition of the Registrable Securities owned by such seller, and shall consent to the use
in accordance with all applicable law of each such registration statement, each amendment thereto,
each such prospectus, preliminary prospectus or Issuer Free Writing Prospectus by each such seller
of Registrable Securities and the underwriters, if any, in connection with the offering and sale of
the Registrable Securities covered by such registration statement or prospectus;

               (d) shall use its reasonable best efforts to register or qualify the Registrable Securities
covered by such registration statement under such other securities or “blue sky” laws of such
jurisdictions as any sellers of Registrable Securities or any managing underwriter, if any,
reasonably shall request, and do any and all other acts and things that may be reasonably necessary
or advisable to enable such sellers or underwriter, if any, to consummate the disposition of the
Registrable Securities in such jurisdictions, except that in no event shall the Company be required
to qualify to do business as a foreign corporation in any jurisdiction where, but for the
requirements of this Section 4.2.5(d), it would not be required to be so qualified, to subject
itself to taxation in any such jurisdiction or to consent to general service of process in any such
jurisdiction;

               (e) shall promptly notify each Holder selling Registrable Securities covered by such
registration statement and each managing underwriter, if any:

                    (i) when the registration statement, any pre-effective amendment, the prospectus or any
prospectus supplement related thereto, any post-effective amendment to the registration statement
or any Issuer Free Writing Prospectus has been filed and, with respect to the registration
statement or any post-effective amendment, when the same has become effective;

                    (ii) of any request by the SEC or state securities authority for amendments or supplements to
the registration statement or the prospectus related thereto or for additional information;

                    (iii) of the issuance by the SEC of any stop order suspending the effectiveness of the
registration statement or the initiation of any proceedings for that purpose;

                    (iv) of the receipt by the Company of any notification with respect to the suspension of the
qualification of any Registrable Securities for sale under the securities or blue sky laws of any
jurisdiction or the initiation of any proceeding for such purpose; and

                    (v) of the existence of any fact of which the Company becomes aware which results in the
registration statement, the prospectus related thereto, any document incorporated therein by
reference, any Issuer Free Writing Prospectus or the information conveyed to any purchaser at the
time of sale to such purchaser containing an

9

 

untrue statement of a material fact or omitting to state a material fact required to be stated
therein or necessary to make any statement therein not misleading;

               (f) shall use its reasonable best efforts to obtain the withdrawal of any order suspending the
effectiveness of the registration statement;

               (g) shall promptly prior to the filing of any document that is to be incorporated by reference
into the registration statement or the prospectus, and prior to the filing of any Issuer Free
Writing Prospectus, provide copies of such document to counsel for the selling holders of
Registrable Securities and to each managing underwriter, if any, and make the Company’s
representatives reasonably available for discussion of such document and make such changes in such
document concerning the selling holders prior to the filing thereof as counsel for such selling
holders or underwriters may reasonably request;

               (h) shall cooperate with each seller of Registrable Securities and each underwriter or agent
participating in the disposition of such Registrable Securities and their respective counsel in
connection with any filings required to be made with FINRA; and

               (i) shall take all reasonable action to ensure that any Issuer Free Writing Prospectus
utilized in connection with any registration covered by Section 4.2.2 or 4.2.3 complies in all
material respects with the Securities Act, is filed in accordance with the Securities Act to the
extent required thereby, is retained in accordance with the Securities Act to the extent required
thereby and, when taken together with the related prospectus, will not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading.

     The Company may require as a condition precedent to the Company’s obligations under this
Section 4.2.5 that each seller of Registrable Securities as to which any registration is being
effected furnish the Company such information in writing regarding such seller and the distribution
of such Registrable Securities as the Company from time to time reasonably may request;
provided, that such information is necessary for the Company to consummate such
registration and shall be used only in connection with such registration.

     Each seller of Registrable Securities agrees that upon receipt of any notice from the Company
under Section 4.2.5(e)(iii), (e)(iv) or (e)(v), such seller will discontinue such seller’s
disposition of Registrable Securities pursuant to the registration statement covering such
Registrable Securities until such seller’s receipt of the copies of the supplemented or amended
prospectus.

          4.2.6 Registration Expenses.

               (a) The Company shall pay all Registration Expenses (i) with respect to each Demand
Registration, unless the registration statement with respect to any such Demand Registration is
withdrawn at the request of the Holders and the Holders do

10

 

not agree to forfeit their rights pursuant to Section 4.2.2 with respect to that particular
Demand Registration and (ii) with respect to any registration effected under Section 4.2.3.

               (b) Notwithstanding the foregoing, (i) the provisions of this Section 4.2.6 shall be deemed
amended to the extent necessary to cause these expense provisions to comply with “blue sky” laws of
each state in which the offering is made and (ii) in connection with any registration hereunder,
each Holder of Registrable Securities being registered shall pay all underwriting discounts and
commissions and any transfer taxes, if any, attributable to the sale of such Registrable
Securities, pro rata with respect to payments of discounts and commissions in accordance with the
number of shares sold in the offering by such Holder.

          4.2.7 Underwritten Offerings.

               (a) If requested by the underwriters for any underwritten offering by the Holders pursuant to
a registration requested under Section 4.2.2, the Company shall enter into a customary underwriting
agreement with the underwriters. Such underwriting agreement shall be satisfactory in form and
substance to the Majority Participating Holders and the Company and shall contain such
representations and warranties by, and such other agreements on the part of, the Company and such
other terms as are generally prevailing in agreements of that type; provided,
however, that the Company shall not be required to make any representations or warranties
with respect to written information specifically provided by a selling Holder for inclusion in the
registration statement. No Holder shall be required to make any representations or warranties to
or agreements with the Company or the underwriters other than representations, warranties or
agreements regarding such Holder, its ownership of and title to the Registrable Securities and its
intended method of distribution; and any liability of such Holder to any underwriter or other
Person under such underwriting agreement shall be limited to liability arising from breach of its
representations and warranties and shall be limited to an amount equal to the proceeds (net of
expenses and underwriting discounts and commissions) that it derives from such registration.

               (b) In the case of a registration pursuant to Section 4.2.3, if the Company shall have
determined to enter into an underwriting agreement in connection therewith, any Registrable
Securities to be included in such registration shall be subject to such underwriting agreement. No
Holder shall be required to make any representations or warranties to or agreements with the
Company or the underwriters other than representations, warranties or agreements regarding such
Holder, its ownership of and title to the Registrable Securities and its intended method of
distribution; and any liability of such Holder to any underwriter or other Person under such
underwriting agreement shall be limited to liability arising from breach of its representations and
warranties and shall be limited to an amount equal to the proceeds (net of expenses and
underwriting discounts and commissions) that it derives from such registration.

               (c) In the case of any registration under Section 4.2.2 pursuant to an underwritten offering,
or, in the case of a registration under Section 4.2.3, if the Company has determined to enter into
an underwriting agreement in connection therewith,

11

 

all securities to be included in such registration shall be subject to an underwriting
agreement, subject to the provisions to Sections 4.2.7(a) and 4.2.7(b) hereof, and no Person may
participate in such registration unless such Person agrees to sell such Person’s securities on the
basis provided therein and, subject to the provisions of this Section 4.2.7, completes and executes
all reasonable questionnaires, and other documents, including custody agreements and powers of
attorney, that must be executed in connection therewith, and provides such other information to the
Company or the underwriter as may be necessary to register such Person’s securities.

          4.2.8 Holdback Agreements.

               (a) Each seller of Registrable Securities agrees, to the extent requested in writing by a
managing underwriter, if any, of any registration effected pursuant to Section 4.2.2, not to sell,
transfer or otherwise dispose of, including any sale pursuant to Rule 144 under the Securities Act,
any Common Stock, or any other equity security of the Company or any security convertible into or
exchangeable or exercisable for any equity security of the Company other than as part of such
underwritten public offering during the time period reasonably requested by the managing
underwriter, not to exceed 90 days.

               (b) The Holders agree that, if the Company files a registration statement pursuant to which
the Holders have the right to include Registrable Securities in such registration statement
pursuant to Section 4.2.3, then, regardless of whether any Holder elects to include Registrable
Securities in such registration or any Registrable Securities are ultimately sold pursuant to such
registration statement (provided, however, that in the latter case, at least fifty percent (50%) of
the Registrable Securities requested by the Holders have been included in such registration), if
requested by the Company or by a managing underwriter, the Holders will not sell, transfer or
otherwise dispose of, including any sale pursuant to Rule 144 under the Securities Act, any Common
Stock, or any other equity security of the Company or any security convertible into or exchangeable
or exercisable for any equity security of the Company other than as part of such underwritten
public offering during the time period reasonably requested by the Company or the managing
underwriter, not to exceed 90 days.

          4.2.9 Indemnification.

               (a) In the event of any registration of any securities of the Company under the Securities Act
pursuant to this Section 4.2, the Company will, and hereby agrees to, indemnify and hold harmless,
to the extent permitted by law, each Holder of Registrable Securities, its directors, officers,
fiduciaries, employees, agents, affiliates, consultants, representatives, general and limited
partners, stockholders, successors, assigns, and each other Person, if any, who controls such
Holder within the meaning of the Securities Act, from and against any and all losses, claims,
damages or liabilities, joint or several, actions or proceedings (whether commenced or threatened)
and expenses (including reasonable fees of counsel and any amounts paid in any settlement effected
with the Company’s consent) to which each such indemnified party may become subject under the
Securities Act or otherwise in respect thereof (collectively, “Losses”), insofar as such

12

 

Losses arise out of or are based upon (i) any untrue statement or alleged untrue statement of
a material fact contained in any registration statement under which such securities were registered
under the Securities Act or the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading or (ii)
any untrue statement or alleged untrue statement of a material fact contained in any preliminary,
final or summary prospectus or any amendment or supplement thereto, together with the documents
incorporated by reference therein, or any Issuer Free Writing Prospectus utilized in connection
therewith, or the omission or alleged omission to state therein a material fact necessary in order
to make the statements therein, in the light of the circumstances under which they were made, not
misleading, and the Company will reimburse any such indemnified party for any legal or other
expenses reasonably incurred by such indemnified party in connection with investigating or
defending any such Loss as such expenses are incurred; provided, however, that the
Company shall not be liable to any such indemnified party in any such case to the extent such Loss
arises out of or is based upon any untrue statement or alleged untrue statement of a material fact
or omission or alleged omission of a material fact made in such registration statement or amendment
thereof or supplement thereto or in any such prospectus or any preliminary, final or summary
prospectus or Issuer Free Writing Prospectus in reliance upon and in conformity with written
information furnished to the Company by or on behalf of such indemnified party (solely in its
capacity as a seller of shares) specifically for use therein. Such indemnity and reimbursement of
expenses shall remain in full force and effect regardless of any investigation made by or on behalf
of such indemnified party and shall survive the transfer of such securities by such Holder.

               (b) Each Holder of Registrable Securities that are included in the securities as to which any
registration under Section 4.2.2 or 4.2.3 is being effected shall, severally and not jointly,
indemnify and hold harmless (in the same manner and to the same extent as set forth in paragraph
(a) of this Section 4.2.9) to the extent permitted by law the Company, its officers and directors,
each Person controlling the Company within the meaning of the Securities Act and all other
prospective sellers and their respective directors, officers, fiduciaries, employees, agents,
affiliates, consultants, representatives, general and limited partners, stockholders, successors,
assigns and respective controlling Persons with respect to any untrue statement or alleged untrue
statement of any material fact in, or omission or alleged omission of any material fact from, such
registration statement, any preliminary, final or summary prospectus contained therein, or any
amendment or supplement thereto, or any Issuer Free Writing Prospectus utilized in connection
therewith, if such statement or alleged statement or omission or alleged omission was made in
reliance upon and in conformity with written information furnished to the Company or its
representatives by or on behalf of such Holder (solely in its capacity as a seller of shares)
specifically for use therein and reimburse such indemnified party for any legal or other expenses
reasonably incurred in connection with investigating or defending any such Loss as such expenses
are incurred. Such indemnity and reimbursement of expenses shall remain in full force and effect
regardless of any investigation made by or on behalf of such indemnified party and shall survive
the transfer of such securities by such Holder.

13

 

               (c) Any Person entitled to indemnification under this Agreement promptly shall notify the
indemnifying party in writing of the commencement of any action or proceeding with respect to which
a claim for indemnification may be made pursuant to this Section 4.2.9, but the failure of any such
Person to provide such notice shall not relieve the indemnifying party of its obligations under the
preceding paragraphs of this Section 4.2.9, except to the extent the indemnifying party is
prejudiced thereby and shall not relieve the indemnifying party from any liability that it may have
to any such Person otherwise than under this Section 4.2.9. In case any action or proceeding is
brought against an indemnified party and it shall notify the indemnifying party of the commencement
thereof, the indemnifying party shall be entitled to participate therein and, unless in the
reasonable opinion of outside counsel to the indemnified party a conflict of interest between such
indemnified and indemnifying parties may exist in respect of such claim, to assume the defense
thereof jointly with any other indemnifying party similarly notified, to the extent that it
chooses, with counsel reasonably satisfactory to such indemnified party, and after notice from the
indemnifying party to such indemnified party that it so chooses, the indemnifying party shall not
be liable to such indemnified party for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable costs of
investigation. Without the written consent of the indemnified party, which consent shall not be
unreasonably withheld or delayed, no indemnifying party shall effect the settlement or compromise
of, or consent to the entry of any judgment with respect to, any pending or threatened action or
claim in respect of which indemnification or contribution may be sought hereunder, whether or not
the indemnified party is an actual or potential party to such action or claim, unless such
settlement, compromise or judgment (A) includes an unconditional release of the indemnified party
from all liability arising out of such action or claim and (B) does not include a statement as to
or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified
party.

               (d) If for any reason the foregoing indemnity is unavailable or is insufficient to hold
harmless an indemnified party under Section 4.2.9(a), (b) or (c), then each indemnifying party
shall contribute to the amount paid or payable by such indemnified party as a result of any Loss in
such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the
one hand, and the indemnified party, on the other hand, with respect to such offering of
securities. The relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the indemnifying party or the indemnified
party and the parties’ relative intent, knowledge, access to information and opportunity to correct
or prevent such untrue statement or omission. If, however, the allocation provided in the second
preceding sentence is not permitted by applicable law, then each indemnifying party shall
contribute to the amount paid or payable by such indemnified party in such proportion as is
appropriate to reflect not only such relative faults but also the relative benefits of the
indemnifying party and the indemnified party as well as any other relevant equitable
considerations. The parties hereto agree that it would not be just and equitable if contributions
pursuant to this Section 4.2.9(d) were to be determined by pro rata allocation or by any other
method of allocation which does not take account of the equitable considerations referred to in the
preceding sentences of this Section 4.2.9(d). The amount

14

 

paid or payable in respect of any Loss shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating or defending any
such Loss. No Person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of
the Securities Act shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation. Notwithstanding anything in this Section 4.2.9(d) to the contrary,
no indemnifying party other than the Company shall be required pursuant to this section 4.2.9(d) to
contribute any amount in excess of the net proceeds received by such indemnifying party from the
sale of Registrable Securities in the offering to which the losses, claims, damages or liabilities
of the indemnified parties relate, less the amount of any indemnification payment made by such
indemnifying party pursuant to Sections 4.2.9(b) and (c).

               (e) The indemnity and contribution agreements contained herein shall be in addition to any
other rights to indemnification or contribution which any indemnified party may have pursuant to
law or contract and shall remain operative and in full force and effect regardless of any
investigation made or omitted by or on behalf of any indemnified party and shall survive the
transfer of the Registrable Securities by any such party.

               (f) The indemnification and contribution required by this Section 4.2.9 shall be made by
periodic payments of the amount thereof during the course of the investigation or defense, as and
when bills are received or expense, loss, damage or liability is incurred.

          4.2.10 Rule 144. The Company covenants that (a) it will use its reasonable best
efforts to timely file the reports required to be filed by it under the Securities Act or the
Exchange Act and (b) it will take such further action as any Holder of Registrable Securities
reasonably may request, all to the extent required from time to time to enable such Holder to sell
Registrable Securities without registration under the Securities Act within the limitation of the
exemptions provided by (i) Rule 144 under the Securities Act, as such Rule may be amended from time
to time, or (ii) any similar rule or regulation hereafter adopted by the SEC. Upon the request of
any Holder of Registrable Securities, the Company will deliver to such Holder a written statement
as to whether it has complied with such requirements.

          4.2.11 No Inconsistent Agreements. The rights granted to the Holders of Registrable
Securities hereunder do not in any way conflict with and are not inconsistent with any other
agreements to which the Company is a party or by which it is bound. Without the prior written
consent of Holders of a majority of the then outstanding Registrable Securities, the Company will
not enter into any agreement with respect to its securities that is inconsistent with the rights
granted in this Agreement, restricts the number of shares of Common Stock that can be sold by the
Holders of Registrable Securities hereunder (other than restrictions imposed by underwriters as
contemplated in Sections 4.2.4(a) and (b)) or otherwise conflicts with the provisions hereof or
provides terms and conditions that are more favorable to, or less restrictive on, the other party
thereto than the terms and conditions contained in this Agreement are to the Holders, other than
any lock-up agreement with the underwriters in connection with any registered

15

 

offering effected hereunder, pursuant to which the Company shall agree not to register for
sale, and the Company shall agree not to sell or otherwise dispose of, Common Stock or any
securities convertible into or exercisable or exchangeable for Common Stock, for a specified period
following the registered offering.

          4.2.12 Survival. The provisions of this Section 4.2 shall survive the Closing of the
Stock Purchase Agreement.

16

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