Document:

WWW.EXFILE.COM, INC. -- 14760 -- CHATTEM, INC. -- EXHIBIT 10.2 TO FORM 8-K

    EXHIBIT
      10.2

    
 

    
      	 
	
               

               

              Registration
                Rights Agreement

               

              Dated
                as of November 22, 2006

               

              between

               

              Chattem,
                Inc.

               

              and

               

              The
                Purchasers listed on the signatures pages hereto

               

               

            

    

    

     

     

     

     

    
      
         

      

      
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    REGISTRATION
      RIGHTS AGREEMENT

     

    This
      Registration Rights Agreement (the “Agreement”) is made and entered into this
      22nd day of November, 2006, between Chattem, Inc., a Tennessee corporation
      (the
“Company”), and the purchasers listed on the signature pages hereto
      (collectively, the “Purchasers”).

     

    This
      Agreement is made pursuant to the Securities Purchase Agreement (the “Purchase
      Agreement”), dated November 16, 2006, between the Company and the
      Purchasers, which provides for the sale by the Company to the Purchasers of
      $125,000,000 aggregate principal amount of the Company’s 2% Convertible Senior
      Notes due 2013 (the “Notes” and together with the shares of Common Stock of the
      Company into which the Notes are convertible, the “Securities”). In order to
      induce the Purchasers to enter into the Purchase Agreement, the Company has
      agreed to provide to the Purchasers and their direct and indirect transferees
      the registration rights set forth in this Agreement. The execution of this
      Agreement is a condition to the closing under the Purchase
      Agreement.

     

    In
      consideration of the foregoing, the parties hereto agree as
      follows:

     

    1.  Definitions.

     

    As
      used
      in this Agreement, the following capitalized defined terms shall have the
      following meanings:

     

    “1933
      Act”
shall
      mean the Securities Act of 1933, as amended from time to time.

     

    “1934
      Act”
shall
      mean the Securities Exchange Act of l934, as amended from time to
      time.

     

    “1939
      Act”
shall
      mean the Trust Indenture Act of 1939, as amended from time to time.

     

    “Additional
      Interest”
shall
      have the meaning set forth in Section 2.4 herein.

     

    “Agreement”
shall
      have the meaning set forth in the preamble.

     

    “Closing
      Date”
shall
      mean the Closing Time as defined in the Purchase Agreement.

     

    “Common
      Stock”
shall
      mean any shares of common stock, without par value, of the Company and any
      other
      shares of common stock as may constitute “Common Stock” for purposes of the
      Indenture.

     

    “Company”
shall
      have the meaning set forth in the preamble and shall also include the Company’s
      successors.

     

    
      
         

      

      
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    “Depositary”
shall
      mean The Depository Trust Company, or any other depositary appointed by the
      Company, provided,
      however,
      that
      such depositary must have an address in the Borough of Manhattan, in the City
      of
      New York.

     

    “Effectiveness
      Period”
shall
      have the meaning set forth in Section 2.1(b) herein.

     

    “Holder”
shall
      mean the Purchasers, for so long as they own any Registrable Securities, and
      their successors, assigns and direct and indirect transferees who become owners,
      beneficial or otherwise, of Registrable Securities under the
      Indenture.

     

    “Indenture”
shall
      mean the Indenture relating to the Securities, dated as of the date hereof,
      between the Company and U.S. Bank, National Association, as Trustee, as the
      same
      may be amended, supplemented, waived or otherwise modified from time to time
      in
      accordance with the terms thereof.

     

    “Issuer
      Free Writing Prospectus”
shall
      have the meaning set forth in Section 2.1(f) herein.

     

    “Majority
      Holders”
shall
      mean the Holders of a majority of the aggregate principal amount of outstanding
      Registrable Securities; provided
      that,
      for
      purposes of this definition, (1) a Holder of shares of Common Stock that
      constitutes Registrable Securities which were issued upon conversion of the
      Notes shall be deemed to hold an aggregate principal amount at maturity of
      Registrable Securities (in addition to the principal amount at maturity of
      any
      Registrable Securities held by such Holder) equal to the principal amount at
      maturity of Registrable Securities which were converted into such shares of
      Common Stock and (2) such Registrable Securities which were converted into
      such
      shares of Common Stock shall be deemed to be outstanding; provided
      further,
      that
      whenever the consent or approval of Holders of a specified percentage of
      Registrable Securities is required hereunder, Registrable Securities held by
      the
      Company or any Affiliate (as defined in the Indenture) of the Company shall
      be
      disregarded in determining whether such consent or approval was given by the
      Holders of such required percentage amount.

     

    “Notes”
shall
      have the meaning set forth in the preamble.

     

    “Person”
shall
      mean an individual, partnership (general or limited), corporation, limited
      liability company, trust or unincorporated organization, or a government or
      agency or political subdivision thereof.

     

    “Private
      Placement Memorandum”
shall
      mean the private placement memorandum of the Company, dated November16, 2006,
      related to the Securities.

     

    “Pro
      Forma Financials Filing Date”
shall
      have the meaning set forth in Section 2.1.

     

    “Prospectus”
shall
      mean the prospectus included in a Shelf Registration Statement, including any
      preliminary prospectus, and any such prospectus as amended or supplemented
      by
      any prospectus supplement, including any such prospectus supplement

     

    
      
         

      

      
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    with
      respect to the terms of the offering of any portion of the Registrable
      Securities covered by a Shelf Registration Statement, and by all other
      amendments and supplements to a prospectus, including post-effective amendments,
      and in each case including all materials incorporated by reference
      therein.

     

    “Purchase
      Agreement”
shall
      have the meaning set forth in the preamble.

     

    “Purchasers”
shall
      have the meaning set forth in the preamble.

     

    “Questionnaire”
shall
      have the meaning set forth in Section 2.1(d) herein.

     

    “Registrable
      Securities”
shall
      mean all or any of the Securities; provided,
      however,
      that
      any such Securities shall cease to be Registrable Securities at the earlier
      of
      when (i) a Shelf Registration Statement with respect to such Securities
      shall have been declared effective under the 1933 Act and such Securities shall
      have been disposed of pursuant to such Shelf Registration Statement,
      (ii) such Securities have been sold to the public pursuant to Rule 144 or
      may be sold or transferred pursuant to Rule l44(k) (or any similar provision
      then in force, but not Rule 144A) under the 1933 Act by holders who are not
      “affiliates” of the Company, or (iii) such Securities shall have ceased to
      be outstanding.

     

    “Registration
      Default”
shall
      have the meaning set forth in Section 2.4 herein.

     

    “Registration
      Expenses”
shall
      mean any and all expenses incident to performance of or compliance by the
      Company with this Agreement, whether or not a Shelf Registration Statement
      becomes effective, including without limitation: (i) all SEC, stock exchange
      or
      National Association of Securities Dealers, Inc. (the “NASD”) registration and
      filing fees, including, if applicable, the reasonable and documented fees and
      expenses of any “qualified independent underwriter” (and its counsel) that is
      required to be retained by any holder of Registrable Securities in accordance
      with the rules and regulations of the NASD, (ii) all fees and expenses incurred
      by the Company in connection with compliance with state securities or blue
      sky
      laws and compliance with the rules of the NASD (including reasonable and
      documented fees and disbursements of counsel for any underwriters or Holders
      in
      connection with blue sky qualification of any of the Registrable Securities
      and
      any filings with the NASD), (iii) all expenses of the Company in preparing
      or
      assisting in preparing, word processing, printing and distributing any Shelf
      Registration Statement, any Prospectus, any amendments or supplements thereto,
      any securities sales agreements and other documents relating to the performance
      of and compliance with this Agreement, (iv) all fees and expenses incurred
      by
      the Company in connection with the listing, if any, of any of the Registrable
      Securities on any securities exchange or exchanges, (v) all rating agency fees
      incurred by the Company, if any, (vi) the fees and disbursements of counsel
      for
      the Company and of the independent public accountants of the Company, including
      the expenses of any special audits or “comfort” letters required by or incident
      to such performance and compliance, (vii) the fees and expenses of the Trustee,
      and any escrow agent or custodian, (viii) the reasonable and documented
      fees and expenses of a single counsel to the Holders (the “Holders’ Counsel”) in
      connection with the Shelf Registration Statement, and (ix) any

     

    
      
         

      

      
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    fees
      and
      expenses of any special experts retained by the Company in connection with
      any
      Shelf Registration Statement, but excluding any underwriting discounts and
      commissions and transfer taxes, if any, relating to the sale or disposition
      of
      Registrable Securities by a Holder and the fees and expenses of any counsel
      to
      the Holders, except as provided for in clause (viii) above.

     

    “SEC”
shall
      mean the Securities and Exchange Commission or any successor agency or
      government body performing the functions currently performed by the United
      States Securities and Exchange Commission.

     

    “Securities”
shall
      have the meaning set forth in the preamble.

     

    “Shelf
      Registration”
shall
      mean a registration effected pursuant to Section 2.1 hereof.

     

    “Shelf
      Registration Statement”
shall
      mean a “shelf” registration statement of the Company pursuant to the provisions
      of Section 2.1 of this Agreement which covers all of the Registrable Securities
      on an appropriate form under Rule 415 under the 1933 Act, or any similar rule
      that may be adopted by the SEC, and all amendments and supplements to such
      registration statement, including post-effective amendments, in each case
      including the Prospectus contained therein, all exhibits thereto and all
      materials incorporated by reference therein.

     

    “Suspension
      Period”
shall
      have the meaning set forth in Section 2.5 herein.

     

    “Trustee”
shall
      mean the trustee with respect to the Securities under the
      Indenture.

     

    “Underwriter”
shall
      have the meaning set forth in Section 4(a).

     

    2.  Registration
      Under the 1933 Act.

     

    2.1  Shelf
      Registration.

     

    (a)  The
      Company shall, at its cost, no later than the earlier of (i) 30 days after
      the date (the “Pro Forma Financials Filing Date”) the Company files pro forma
      financial statements for its acquisition of the U.S. rights to five consumer
      and
      over-the-counter brands from Johnson & Johnson and the consumer healthcare
      business of Pfizer Inc. with the SEC or (ii) six months after the Closing Date,
      and thereafter shall use its commercially reasonable efforts to cause to be
      declared effective as promptly as practicable but no later than 180 days after
      making such filing, a Shelf Registration Statement relating to the offer and
      sale of the Registrable Securities by the Holders that have provided the
      information pursuant to Section 2.1(d).

     

    (b)  The
      Company shall, at its cost, use its commercially reasonable efforts, subject
      to
      Section 2.5, to keep the Shelf Registration Statement continuously effective
      in
      order to permit the Prospectus forming part thereof to be usable by Holders
      beginning upon the effective date of the Shelf Registration Statement
      (i) for a period of two years from the Closing

     

    
      
         

      

      
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    Date,
      or
      (ii) for such shorter period that will terminate when all Securities
      covered by the Shelf Registration Statement are no longer Registrable Securities
      (the “Effectiveness Period”).

     

    (c)  Notwithstanding
      any other provisions hereof, the Company shall use its commercially reasonable
      efforts to provide that (i) any Shelf Registration Statement and any amendment
      thereto and any Prospectus forming part thereof and any supplement thereto
      complies in all material respects with the 1933 Act and the rules and
      regulations thereunder, (ii) any Shelf Registration Statement and any
      amendment thereto does not, when it becomes effective, contain an untrue
      statement of a material fact or omit to state a material fact required to be
      stated therein or necessary to make the statements therein not misleading and
      (iii) any Prospectus forming part of any Shelf Registration Statement, and
      any supplement to such Prospectus (as amended or supplemented from time to
      time), does not include an untrue statement of a material fact or omit to state
      a material fact necessary in order to make the statements therein, in light
      of
      the circumstances under which they were made, not misleading.

     

    (d)  Notwithstanding
      any other provision hereof, no Holder of Registrable Securities may include
      any
      of its Registrable Securities in the Shelf Registration Statement pursuant
      to
      this Agreement unless the Holder furnishes to the Company a fully completed
      notice and questionnaire in the form attached as Annex A to the Private
      Placement Memorandum (the “Questionnaire”) and such other information in writing
      as the Company may reasonably request in writing for use in connection with
      the
      Shelf Registration Statement or Prospectus included therein and in any
      application to be filed with or under state securities laws. At least 30 days
      prior to the filing of the Shelf Registration Statement, the Company will
      provide notice to the Holders of its intention to file the Shelf Registration
      Statement. In order to be named as a selling securityholder in the Prospectus
      at
      the time of effectiveness of the Shelf Registration Statement, each Holder
      must,
      before the filing of the Shelf Registration Statement and no later than the
      20th
      day after being notified of the Company’s intention to file, furnish the
      completed Questionnaire and such other information that the Company may
      reasonably request in writing, if any, to the Company in writing and the Company
      shall include the information from the completed Questionnaire and such other
      information, if any, in the Shelf Registration Statement and the Prospectus
      in a
      manner so that upon effectiveness of the Shelf Registration Statement the Holder
      will be permitted to deliver the Prospectus to purchasers of the Holder’s
      Registrable Securities. From and after the date that the Shelf Registration
      Statement is first declared effective by the SEC, upon receipt of a completed
      Questionnaire and such other information that the Company may reasonably request
      in writing, if any, the Company will use its commercially reasonable efforts
      to
      file (i) within 20 business days any amendments or supplements to the Shelf
      Registration Statement or (ii) within 10 business days any report filed with
      the
      SEC under the 1934 Act, if the Company is permitted to do so pursuant to the
      1933 Act and the regulations thereunder, necessary for such Holder to be named
      as a selling securityholder in the Prospectus contained therein to permit such
      Holder to deliver the Prospectus to purchasers of the Holder’s Securities
      (subject to the Company’s right to suspend the Shelf Registration Statement as
      described in Section 2.5 below); provided,
      however,
      that
      the Company shall not be required to file more than one such amendment or
      supplement to the Shelf Registration Statement pursuant to clause (i) of this
      paragraph in any calendar quarter for all such Holders. Holders that do not
      deliver a completed written Questionnaire and such other information, as
      provided for in this Section 2.1(d), will not be named as selling
      securityholders in the Prospectus. Each Holder named as a selling securityholder
      in the Prospectus agrees to promptly furnish to

     

    
      
         

      

      
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    the
      Company all information required to be disclosed in order to make information
      previously furnished to the Company by the Holder not materially misleading
      and
      any other information regarding such Holder and the distribution of such
      Holder’s Registrable Securities as the Company may from time to time reasonably
      request in writing. 

     

    (e)  During
      the Effectiveness Period, each Holder agrees not to sell any Registrable
      Securities pursuant to the Shelf Registration Statement without delivering,
      or
      causing to be delivered, a Prospectus to the purchaser thereof.

     

    (f)  The
      Company represents and agrees that, unless it obtains the prior consent of
      a
      majority of the Registrable Securities that are registered under the Shelf
      Registration Statement at such time or the approval of Holders’ Counsel or the
      consent of the managing underwriter in connection with any underwritten offering
      of Registrable Securities, and each Holder represents and agrees that, unless
      it
      obtains the prior consent of the Company and any such underwriter, it will
      not
      make any offer relating to the Securities (which, for the avoidance of doubt,
      will not include any shares of Common Stock which are not Securities within
      the
      meaning of this Agreement) that would constitute an “issuer free writing
      prospectus,” as defined in Rule 433 under the 1933 Act (an “Issuer Free Writing
      Prospectus”), or that would otherwise constitute a “free writing prospectus,” as
      defined in Rule 405 under the 1933 Act, required to be filed with the SEC.
      The
      Company represents that any Issuer Free Writing Prospectus will not include
      any
      information that conflicts with the information contained in the Shelf
      Registration Statement or Prospectus and that any Issuer Free Writing
      Prospectus, when taken together with the information in the Shelf Registration
      Statement and the Prospectus, will not include any untrue statement of a
      material fact or omit to state any material fact necessary in order to make
      the
      statements therein, in light of the circumstances under which they were made,
      not misleading.

     

    The
      Company will not permit any securities other than Registrable Securities to
      be
      included in the Shelf Registration Statement. The Company agrees to supplement
      or amend the Shelf Registration Statement if required by the rules, regulations
      or instructions applicable to the registration form used by the Company if
      required by the 1933 Act, or to the extent the Company does not reasonably
      object, as reasonably requested in writing by any Holder with respect to
      information relating to such Holder, and to furnish to the Holders of
      Registrable Securities that are covered under such Shelf Registration Statement
      copies of any such supplement or amendment promptly after its being used or
      filed with the SEC in such amounts as they may reasonably request.

     

    2.2  Expenses.
      The
      Company shall pay all Registration Expenses in connection with the registration
      pursuant to Section 2.1. Each Holder shall pay all underwriting discounts and
      commissions and transfer taxes, if any, relating to the sale or disposition
      of
      such Holder’s Registrable Securities pursuant to the Shelf Registration
      Statement.

     

    2.3  Effectiveness.
      (a)  The
      Company will be deemed not to have used its commercially reasonable efforts
      to
      cause the Shelf Registration Statement to become, or to remain, effective during
      the requisite period (subject to Section 2.5) if the Company voluntarily takes
      any action that would, or voluntarily omits to take any action which omission
      would, result in any such Shelf Registration Statement not being declared
      effective or in the Holders of Registrable Securities covered thereby not being
      able to offer and sell such Registrable Securities

     

    
      
         

      

      
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    during
      that period as and to the extent contemplated hereby, unless such action or
      omission is required by applicable law. 

     

    (b)  A
      Shelf
      Registration Statement will not be deemed to have become effective unless it
      has
      been declared effective by the SEC or have become automatically effective under
      the 1933 Act; provided,
      however,
      that
      if, after it has been declared or become effective, the offering of Registrable
      Securities pursuant to a Shelf Registration Statement is interfered with by
      any
      stop order, injunction or other order or requirement of the SEC or any other
      governmental agency or court, such Shelf Registration Statement will be deemed
      not to have become effective during the period of such interference, until
      the
      offering of Registrable Securities pursuant to such Shelf Registration Statement
      may legally resume.

     

    2.4  Interest.
      In the
      event that (a) a Shelf Registration Statement is not filed with the SEC either
      (i) on or before the 30th
      calendar
      day following the Pro Forma Financials Filing Date or (ii) on or before the
      sixth month anniversary of the Closing Date, whichever is earlier, (b) a Shelf
      Registration Statement is not declared effective on or prior to the
      180th
      calendar
      day following the making of such filing, (c) after effectiveness, subject to
      Section 2.5, the Shelf Registration Statement ceases to be effective or fails
      to
      be usable by the Holders without being succeeded within seven business days
      by a
      post-effective amendment or a report filed with the SEC pursuant to the 1934
      Act
      that immediately cures the failure to be effective or usable, or (d) the
      Prospectus is unusable by the Holders for any reason, and the Suspension Period
      (as defined in Section 2.5 hereof) exceeds the number of days set forth in
      Section 2.5 (each such event being a “Registration
      Default”),
      additional interest (“Additional
      Interest”)
      will
      accrue at a rate per annum of one-quarter of one percent (0.25%) of the
      principal amount of the Securities for the first 90-day period from the day
      following the Registration Default, and thereafter at a rate per annum of
      one-half of one percent (0.50%) of the principal amount of the Securities;
      provided
      that in
      no event shall Additional Interest accrue at a rate per annum exceeding one
      half
      of one percent (0.50%) of the issue price of the Securities; provided
      further
      that no
      Additional Interest shall accrue after the second anniversary of the Closing
      Date. Upon the cure of all Registration Defaults then continuing, the accrual
      of
      Additional Interest will automatically cease and the interest rate borne by
      the
      Securities will revert to the original interest rate at such time. Additional
      Interest shall be computed based on the actual number of days elapsed in each
      90-day period in which the Shelf Registration Statement or the Prospectus is
      not
      effective or is unusable. Holders who have converted Securities into Common
      Stock will not be entitled to receive any Additional Interest with respect
      to
      such Common Stock or the issue price of the Securities converted.

     

    The
      Company shall notify the Trustee within five business days after each and every
      date on which an event occurs in respect of which Additional Interest is
      required to be paid. Additional Interest shall be paid by depositing with the
      Trustee, in trust, for the benefit of the Holders of Registrable Securities,
      on
      or before the applicable semiannual interest payment date, in immediately
      available funds in sums sufficient to pay the Additional Interest then due.
      The
      Additional Interest due shall be payable in arrears on each interest payment
      date to the record Holder of Registrable Securities entitled to receive the
      interest payment to be paid on such date as set forth in the Indenture. Each
      obligation to pay Additional Interest shall be deemed to accrue from and
      including the day following the Registration Default to but excluding the day
      on
      which the Registration Default is cured.

     

    
      
         

      

      
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    A
      Registration Default under clause (a) above shall be cured on the date that
      the
      Registration Statement is filed with the SEC. A Registration Default under
      clause (b) above shall be cured on the date that the Shelf Registration
      Statement is declared effective by the SEC or deemed to become automatically
      effective under the 1933 Act. A Registration Default under clauses (c) or (d)
      above shall be cured on the date an amended Shelf Registration Statement is
      declared effective by the SEC or deemed to become automatically effective under
      the 1933 Act, or the Company otherwise declares the Shelf Registration Statement
      and the Prospectus useable, as applicable. The Company will have no liabilities
      for monetary damages other than the Additional Interest with respect to any
      Registration Default.

     

    2.5  Suspension.
      Notwithstanding any other provision hereof, the Company may suspend the use
      of
      any Prospectus, without incurring or accruing any obligation to pay Additional
      Interest pursuant to Section 2.4 hereof or being deemed in violation of any
      other provision hereof, for a period or periods (each, a “Suspension Period”)
      not to exceed an aggregate 45 calendar days in any three-month period, or an
      aggregate of 120 calendar days in any twelve-month period, if management of
      the
      Company shall have determined in good faith that because of valid business
      reasons (not including avoidance of the Company’s obligations hereunder),
      including without limitation proposed or pending corporate developments and
      similar events or because of filings with the SEC, it is in the best interests
      of the Company to suspend such use, and prior to suspending such use the Company
      provides the Holders with written notice of such suspension, which notice need
      not specify the nature of the event giving rise to such suspension. Each Holder
      shall keep confidential any communications received by it from the Company
      regarding the suspension of the use of the Prospectus, except as required by
      applicable law.

     

    3.  Registration
      Procedures.

     

    In
      connection with the obligations of the Company with respect to the Shelf
      Registration, the Company shall, during the Effectiveness Period, subject to
      the
      rights of the Company to invoke and maintain a Suspension Period in accordance
      with Section 2.5 without being in violation of any of the provisions
      hereunder:

     

    (a)  prepare
      and file with the SEC a Shelf Registration Statement, within the relevant time
      period specified in Section 2, on the appropriate form under the 1933 Act,
      which
      form (i) shall be selected by the Company, (ii) shall be available for the
      sale
      of the Registrable Securities by the selling Holders thereof, (iii) shall comply
      as to form in all material respects with the requirements of the applicable
      form
      and include or incorporate by reference all financial statements required by
      the
      SEC to be filed therewith or incorporated by reference therein, and (iv) shall
      comply in all respects with the applicable requirements of Regulation S-T under
      the 1933 Act, if any, and use commercially reasonable efforts to cause such
      Shelf Registration Statement to become effective and remain effective in
      accordance with Section 2 hereof;

     

    (b)  prepare
      and file with the SEC such amendments and post-effective amendments to the
      Shelf
      Registration Statement as may be necessary under applicable law to keep the
      Shelf Registration Statement effective for the Effectiveness Period, subject
      to
      Section 2.5; and cause each Prospectus to be supplemented by any required
      prospectus supplement, and

     

    
      
         

      

      
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    as
      so
      supplemented to be filed pursuant to Rule 424 (or any similar provision then
      in
      force) under the 1933 Act and comply during the Effectiveness Period with the
      provisions of the 1933 Act, the 1934 Act and the rules and regulations
      thereunder required to enable the disposition of all Registrable Securities
      covered by the Shelf Registration Statement in accordance with the intended
      method or methods of distribution by the selling Holders thereof;

     

    (c)  (i)  notify
      each Holder of Registrable Securities of the filing of a Shelf Registration
      Statement with respect to the Registrable Securities; (ii) furnish to each
      Holder of Registrable Securities that has provided the information required
      by
      Section 2.1(d) and to each underwriter of an underwritten offering of
      Registrable Securities, if any, without charge, electronic copies of each
      Prospectus, including each preliminary Prospectus, and any amendment or
      supplement thereto and such other documents as such Holder or underwriter may
      reasonably request, including financial statements and schedules and, if the
      Holder so requests, all exhibits in order to facilitate the unrestricted sale
      or
      other disposition of the Registrable Securities; and (iii) subject to Section
      2.5 hereof and to any notice by the Company in accordance with Section 3(e)
      hereof of the existence of any fact of the kind described in Sections 3(e)(ii),
      (iii), (iv), (v) and (vi) hereof, hereby consent to the use of the
      Prospectus or any amendment or supplement thereto by each of the selling Holders
      of Registrable Securities that has provided the information required by Section
      2.1(d) in connection with the offering and sale of the Registrable
      Securities;

     

    (d)  use
      commercially reasonable efforts to register or qualify the Registrable
      Securities for exemptions under all applicable state securities or “blue sky”
laws of such jurisdictions as any Holder of Registrable Securities covered
      by a
      Shelf Registration Statement and each underwriter of an underwritten offering
      of
      Registrable Securities shall reasonably request, and do any and all other acts
      and things which may be reasonably necessary or advisable to enable each such
      Holder and underwriter to consummate the disposition in each such jurisdiction
      of such Registrable Securities owned by such Holder; provided,
      however,
      that
      the Company shall not be required to (i) qualify as a foreign corporation or
      as
      a dealer in securities in any jurisdiction where it would not otherwise be
      required to qualify but for this Section 3(d), or (ii) take any action which
      would subject it to general service of process or taxation in any such
      jurisdiction where it is not then so subject;

     

    (e)  notify
      promptly each Holder of Registrable Securities under a Shelf Registration
      Statement that has provided the information required by Section 2.1(d) and,
      if
      requested by such Holder, confirm such advice in writing promptly (i) when
      a
      Shelf Registration Statement has become effective and when any post-effective
      amendments thereto have become effective, (ii) of any request by the SEC or
      any
      state securities authority for post-effective amendments and supplements to
      a
      Shelf Registration Statement and Prospectus or for additional information
      relating thereto after the Shelf Registration Statement has become effective,
      (iii) of the issuance by the SEC or any state securities authority of any stop
      order suspending the effectiveness of a Shelf Registration Statement or the
      initiation of any proceedings for that purpose, (iv) of the happening of any
      event or the discovery of any facts during the period a Shelf Registration
      Statement is effective which makes any statement made in such Shelf Registration
      Statement or the related Prospectus untrue in any material respect or which
      requires the making of any changes in such Shelf Registration Statement or
      Prospectus in order to make the statements therein (in the case of the
      Prospectus in light of the circumstances under which they were made) not
      misleading, (v) of the receipt by the Company of any notification
      with

     

    
      
         

      

      
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    respect
      to the suspension of the qualification of the Registrable Securities for sale
      in
      any jurisdiction or the initiation or threatening of any proceeding for such
      purpose and (vi) of any determination by the Company that a post-effective
      amendment to such Shelf Registration Statement would be appropriate, other
      than
      a post-effective amendment solely to add selling Holders;

     

    (f)  furnish
      to Holders’ Counsel on behalf of the Holders of Registrable Securities (i)
      copies of any comment letters received from the SEC with respect to a Shelf
      Registration Statement, and, if requested, with respect to any documents
      incorporated therein and (ii) any other request by the SEC or any state
      securities authority for amendments or supplements to a Shelf Registration
      Statement and Prospectus or for additional information with respect to the
      Shelf
      Registration Statement and Prospectus;

     

    (g)  use
      commercially reasonable efforts to obtain the withdrawal of any order suspending
      the effectiveness of a Shelf Registration Statement at the earliest possible
      moment and provide prompt notice to each Holder of the withdrawal of such order;
      

     

    (h)  furnish
      to each Holder of Registrable Securities that has provided the information
      required by Section 2.1(d), and each underwriter, if any, without charge, at
      least one conformed copy of each Shelf Registration Statement and any
      post-effective amendment thereto, including financial statements and schedules
      (without documents incorporated therein by reference and all exhibits thereto,
      unless requested);

     

    (i)  if
      electronic global certificates for the Registrable Securities are not then
      available, cooperate with the selling Holders of Registrable Securities to
      facilitate the timely preparation and delivery of certificates representing
      Registrable Securities to be sold and not bearing any restrictive legends (other
      than as required by applicable law); and enable such Registrable Securities
      to
      be in such denominations (consistent with the provisions of the Indenture)
      and
      registered in such names as the selling Holders or the underwriters, if any,
      may
      reasonably request at least three business days prior to the closing of any
      sale
      of Registrable Securities;

     

    (j)  upon
      the
      occurrence of any event or the discovery of any facts, each as contemplated
      by
      Sections 3(e)(ii), (iii), (iv), (v) and (vi) hereof, as promptly as practicable
      after the occurrence of such an event, use commercially reasonable efforts
      to
      prepare a supplement or post-effective amendment to the Shelf Registration
      Statement or the related Prospectus or any document incorporated therein by
      reference or file any other required document so that, as thereafter delivered
      to the purchasers of the Registrable Securities, such Prospectus will not
      contain at the time of such delivery 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 or will remain
      so qualified. At such time as such public disclosure is otherwise made or the
      Company determines that such disclosure is not necessary, in each case to
      correct any misstatement of a material fact or to include any omitted material
      fact, the Company agrees promptly to notify each Holder of Registrable
      Securities covered by such Shelf Registration Statement of such determination
      and to furnish each Holder such number of copies of the Prospectus as amended
      or
      supplemented, as such Holder may reasonably request;

     

    
      
         

      

      
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    (k)  no
      less
      than three business days after to the filing of any Shelf Registration
      Statement, any Prospectus, any amendment to a Shelf Registration Statement
      or
      amendment or supplement to a Prospectus (other than amendments and supplements
      that do nothing more than name Holders and provide information with respect
      thereto), provide copies of such document to the Trustee on behalf of such
      Holders, and make representatives of the Company, as shall be reasonably
      requested by the Holders’ Counsel, available for discussion of such
      document;

     

    (l)  obtain
      CUSIP numbers for all Registrable Securities not later than the effective date
      of the Shelf Registration Statement and provide the Trustee with printed
      certificates for the Registrable Securities in a form eligible for deposit
      with
      the Depositary;

     

    (m)  (i)
      cause
      the Indenture to be qualified under the 1939 Act in connection with the
      registration of the Registrable Securities, (ii) cooperate with the Trustee
      and
      the Holders to effect such changes to the Indenture as may be required for
      the
      Indenture to be so qualified in accordance with the terms of the 1939 Act,
      and
      (iii) execute, and use commercially reasonable efforts to cause the Trustee
      to
      execute, all documents as may be required to effect such changes, and all other
      forms and documents required to be filed with the SEC to enable the Indenture
      to
      be so qualified in a timely manner;

     

    (n)  subject
      to the last paragraph of this Section 3(n), enter into such customary agreements
      (including, if requested, an underwriting agreement in customary form) and
      take
      all other customary and appropriate actions, if any, as the Majority Holders
      shall reasonably request in writing in order to expedite or facilitate the
      disposition of such Registrable Securities, including, but not limited
      to:

     

    (i)  obtain
      opinions of counsel to the Company and updates thereof addressed to each selling
      Holder and the underwriters, if any, covering the matters set forth in the
      opinions of such counsel delivered at the Closing Date as are customarily
      covered in legal opinions in connection with underwritten offering of
      securities;

     

    (ii)  obtain
      “comfort” letters and updates thereof from the Company’s independent certified
      public accountants (and, if necessary, any other independent certified public
      accountants of the subsidiary of the Company or of any business acquired by
      the
      Company for which financial statements are, or are required to be, included
      in
      the Shelf Registration Statement) addressed to the underwriters, if any, and
      use
      reasonable efforts to have such letter addressed to the selling Holders of
      Registrable Securities (to the extent consistent with Statement on Auditing
      Standards No. 72 of the American Institute of Certified Public
      Accounts);

     

    (iii)  if
      an
      underwriting agreement is entered into, cause the same to set forth
      indemnification provisions and procedures substantially equivalent to the
      indemnification provisions and procedures set forth in Section 4 hereof with
      respect to the underwriters and all other parties to be indemnified pursuant
      to
      said Section or, at the request of any underwriters, in the form customarily
      provided to such underwriters in similar types of transactions; and

     

    
      
         

      

      
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    (iv)  deliver
      such documents and certificates as may be reasonably requested and as are
      customarily delivered in similar offerings to the Holders of a majority in
      principal amount of the Registrable Securities being sold and the managing
      underwriters, if any.

     

    The
      above
      shall be done only in connection with a single firmly-underwritten offering
      of
      not less than one-half of the Registrable Securities using such Shelf
      Registration Statement pursuant to an underwriting or similar agreement as
      and
      to the extent required thereunder, and as reasonably requested by the Majority
      Holders thereto. Anything herein to the contrary notwithstanding, the Company
      will not be required to pay the costs and expenses of, or to participate in
      the
      marketing or “road show” presentations of, more than one underwritten offering
      of Registrable Securities every 12 months commencing on the Closing Date. The
      Company will not be required to pay the costs and expenses of, or to participate
      in the marketing or “road show” presentations of, an underwritten offering of
      Registrable Securities unless requested by the Majority Holders;

     

    (o)  if
      reasonably requested in connection with a disposition of Registrable Securities
      and reasonably necessary to complete such disposition, upon reasonable advance
      notice make available for inspection during business hours by representatives
      of
      the Holders of the Registrable Securities, any underwriters participating in
      any
      disposition pursuant to a Shelf Registration Statement and any counsel or
      accountant retained by any of the foregoing, all appropriate financial and
      other
      records, pertinent corporate documents and properties of the Company reasonably
      requested in writing by any such persons, and cause the respective officers,
      employees, and any other agents of the Company to supply all information
      reasonably requested by any such representative, underwriter, special counsel
      or
      accountant in connection with a Shelf Registration Statement, and make such
      representatives of the Company available for discussion of such documents as
      shall be reasonably requested by the Purchasers, in each case as is customary
      for “due diligence” investigations; provided
      that, to
      the extent the Company, in its reasonable discretion, agrees to disclose
      material non-public information, such persons shall first agree in writing
      with
      the Company that any such non-public information shall be kept confidential
      by
      such persons and shall be used solely for the purposes of exercising rights
      under this Agreement and such person shall not engage in trading any securities
      of the Company until such material non-public information becomes properly
      publicly available, unless (i) disclosure of such information is required by
      court or administrative order or is necessary to respond to inquiries of
      regulatory authorities, (ii) disclosure of such information is required by
      law
      (including any disclosure requirements pursuant to federal securities laws
      in
      connection with the filing of any Shelf Registration Statement or the use of
      any
      Prospectus referred to in this Agreement upon a customary opinion of counsel
      for
      such persons delivered and reasonably satisfactory to the Company), (iii) such
      information becomes generally available to the public other than as a result
      of
      a disclosure or failure to safeguard by any such person, (iv) such information
      becomes available to any such person from a source other than the Company and
      such source is not bound by a confidentiality agreement, or (v) such non-public
      information ceases to be material; provided
      further,
      that,
      the foregoing inspection and information gathering shall, to the greatest extent
      possible, be coordinated on behalf of all the Holders and the other parties
      entitled thereto by Holders’ Counsel;

     

    (p)  if
      requested in writing by any selling Holder of Registrable Securities that has
      provided the information required by Section 2.1(d), a reasonable time prior
      to

     

    
      
         

      

      
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    filing
      the Shelf Registration Statement, any Prospectus forming a part thereof, any
      amendment to the Shelf Registration Statement or amendment or supplement to
      such
      Prospectus (other than amendments and supplements that do nothing more than
      name
      Holders and provide information with respect thereto), (i) provide copies
      of such document to the Holders of Registrable Securities that have provided
      the
      information required by Section 2.1(d), to Holders’ Counsel and to the
      underwriter or underwriters of an underwritten offering of Registrable
      Securities, if any, (ii) make such changes in any such document prior to
      the filing thereof as Holders’ Counsel or the underwriter or underwriters
      reasonably agree should be included therein and provide to the Company in
      writing for inclusion therein within three business days of delivery of such
      copies, (iii) if requested by any selling Holder of Registrable Securities
      that has provided the information required by Section 2.1(d), not file any
      such
      document in a form (A) to which the Majority Holders, Holders’ Counsel or any
      underwriter shall not have previously been advised and furnished a copy of
      or
      (B) to which the Majority Holders, Holders’ Counsel or any underwriter
      shall reasonably object within three business days of delivery of such copies,
      and (iv) make the representatives of the Company available for discussion
      of such document as shall be reasonably requested in writing by the Holders
      of
      Registrable Securities, Holders’ Counsel or any underwriter; provided,
      however,
      that
      the foregoing discussion shall be coordinated on behalf of the parties entitled
      thereto by the Holders’ Counsel;

     

    (q)  if
      requested by any selling Holder or the underwriters, if any, incorporate in
      the
      Shelf Registration Statement or Prospectus, pursuant to a supplement or
      post-effective amendment if necessary, such information as such selling Holder
      or underwriter, if any, may reasonable request in writing to have included
      therein with respect to the name or names of such selling Holder, the number
      of
      shares of Common Stock or principal amount of Securities owned by such Holder,
      the plan of distribution of the Registrable Securities (as required by Item
      508
      of Regulation S-K), the principal amount of Securities or number of shares
      of
      Common Stock being sold, the purchase price being paid therefor, and any other
      terms of the offering of the Registrable Securities to be sold in such
      offering;

     

    (r)  use
      commercially reasonable efforts to cause all Registrable Securities to be listed
      on any securities exchange or inter-dealer quotation system on which similar
      debt securities issued by the Company are then listed if requested by the
      Majority Holders, or if requested by the underwriter or underwriters of an
      underwritten offering of Registrable Securities, if any;

     

    (s)  [intentionally
      deleted]

     

    (t)  otherwise
      comply with all applicable rules and regulations of the SEC and make available
      to its security holders, as soon as reasonably practicable, an earnings
      statement covering at least 12 months which shall satisfy the provisions of
      Section 11(a) of the 1933 Act and Rule 158 thereunder; and

     

    (u)  cooperate
      and assist in any filings required to be made with the NASD and in the
      performance of any due diligence investigation by any underwriter and its
      counsel (including any “qualified independent underwriter” that is required to
      be retained in accordance with the rules and regulations of the
      NASD).

     

    
      
         

      

      
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    Without
      limiting the provisions of Section 2.1(d), the Company may (as a condition
      to
      such Holder’s participation in the Shelf Registration) require each Holder of
      Registrable Securities to furnish to the Company such information regarding
      the
      Holder and the proposed distribution by such Holder of such Registrable
      Securities as the Company may from time to time reasonably request in
      writing.

     

    Each
      Holder agrees that, upon receipt of any notice from the Company of the happening
      of any event or the discovery of any facts, each of the kind described in
      Section 3(e)(ii), (iii), (iv), (v) or (vi) hereof, such Holder will forthwith
      discontinue disposition of Registrable Securities pursuant to the Prospectus
      included in the Shelf Registration Statement until such Holder’s receipt of the
      copies of the supplemented or amended Prospectus contemplated by Section 3(j)
      hereof or written notice from the Company that the Shelf Registration Statement
      is again effective and no amendment or supplement is needed, and, if so directed
      by the Company, such Holder will deliver to the Company (at its expense) all
      copies in such Holder’s possession, other than permanent file copies then in
      such Holder’s possession, of the Prospectus covering such Registrable Securities
      current at the time of receipt of such notice. 

     

    If
      any of
      the Registrable Securities covered by any Shelf Registration Statement are
      to be
      sold in an underwritten offering, the underwriter or underwriters and manager
      or
      managers that will manage such offering will be selected by the Majority Holders
      of such Registrable Securities included in such offering and shall be acceptable
      to the Company. No Holder of Registrable Securities may participate in any
      underwritten registration hereunder unless such Holder (a) agrees to sell such
      Holder’s Registrable Securities on the basis provided in any underwriting
      arrangements approved by the persons entitled hereunder to approve such
      arrangements and (b) completes and executes all questionnaires, powers of
      attorney, indemnities, underwriting agreements and other documents required
      under the terms of such underwriting arrangements.

     

    4.  Indemnification;
      Contribution.

     

    (a)  The
      Company agrees to indemnify and hold harmless, each Holder, each Person who
      participates as an underwriter, if any (any such Person being an “Underwriter”)
      and each Person, if any, who controls any such Holder or Underwriter within
      the
      meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act in
      connection with sale of Securities pursuant to the Shelf Registration Statement
      under the terms of this Agreement during the Effectiveness Period as
      follows:

     

    (i)  against
      any and all loss, liability, claim, damage and expense whatsoever, as incurred,
      arising out of any untrue statement or alleged untrue statement of a material
      fact contained in any Shelf Registration Statement (or any amendment or
      supplement thereto) pursuant to which Registrable Securities were registered
      under the 1933 Act, including all documents incorporated therein by reference,
      or the omission or alleged omission therefrom of a material fact required to
      be
      stated therein or necessary to make the statements therein not misleading,
      or
      arising out of any untrue statement or alleged untrue statement of a material
      fact contained in any Prospectus (or any amendment or supplement thereto) or
      any
      Issuer Free Writing Prospectus (or any amendment or supplement thereto) or
      the
      omission or alleged

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    omission
      therefrom of a material fact necessary in order to make the statements therein,
      in the light of the circumstances under which they were made, not
      misleading;

     

    (ii)  against
      any and all loss, liability, claim, damage and expense whatsoever, as incurred,
      to the extent of the aggregate amount paid in settlement of any litigation,
      or
      any investigation or proceeding by any governmental agency or body, commenced
      or
      threatened, or of any claim whatsoever based upon any such untrue statement
      or
      omission, or any such alleged untrue statement or omission; provided
      that
      (subject to Section 4(d) below) any such settlement is effected with the written
      consent of the Company; and

     

    (iii)  against
      any and all expense whatsoever, as incurred (including the reasonable and
      documented fees and disbursements of counsel chosen by any indemnified party),
      reasonably incurred and documented in investigating, preparing or defending
      against any litigation, or any investigation or proceeding by any governmental
      agency or body, commenced or threatened, or any claim whatsoever based upon
      any
      such untrue statement or omission, or any such alleged untrue statement or
      omission, to the extent that any such expense is not paid under subparagraph
      (i)
      or (ii) above; 

     

    provided,
      however,
      that
      this indemnity agreement shall not apply to any loss, liability, claim, damage
      or expense to the extent arising out of (A) any untrue statement or omission
      or
      alleged untrue statement or omission made in reliance upon and in conformity
      with written information furnished to the Company by or on behalf of any Holder
      or Underwriter, if any, expressly for use in a Shelf Registration Statement
      (or
      any amendment thereto), any Prospectus (or any amendment or supplement thereto)
      or any Issuer Free Writing Prospectus (or any amendment or supplement thereto),
      (B) use of a Prospectus during a period when use of such Prospectus has been
      validly suspended pursuant to Section 2.5 hereof, provided that such Holder
      has
      received prior notice of such suspension, (C) failure of such Holder to deliver
      a prospectus, as then amended or supplemented, as required by applicable laws,
      provided that the Company shall have delivered to such Holder such Prospectus,
      as then amended or supplemented, or (D) the gross negligence, willful misconduct
      or bad faith of any such party seeking indemnification.

     

    (b)  Each
      Holder, severally, but not jointly, agrees to indemnify and hold harmless the
      Company, each Underwriter, if any, and the other selling Holders, and each
      of
      their respective directors and officers, and each Person, if any, who controls
      the Company, any Underwriter or any other selling Holder within the meaning
      of
      Section 15 of the 1933 Act or Section 20 of the 1934 Act, against any and all
      loss, liability, claim, damage and expense described in the indemnity contained
      in Section 4(a) hereof, as incurred and documented, but only with respect to
      untrue statements or omissions, or alleged untrue statements or omissions,
      made
      in the Shelf Registration Statement (or any amendment thereto) or any Prospectus
      included therein (or any amendment or supplement thereto) or any Issuer Free
      Writing Prospectus in reliance upon and in conformity with written information
      with respect to such Holder furnished to the Company by or on behalf of such
      Holder expressly for use in the Shelf Registration Statement (or any amendment
      thereto) or such Prospectus (or any amendment or supplement thereto) or any
      Issuer Free Writing Prospectus; provided,
      however,
      that no
      such Holder shall be liable for any claims hereunder (i) in excess of the amount
      of net proceeds received by such

     

    
      
         

      

      
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    Holder
      from the sale of Registrable Securities pursuant to such Shelf Registration
      Statement or (ii) to the extent arising out of the gross negligence, willful
      misconduct or the bad faith of the Company.

     

    (c)  Each
      indemnified party shall give notice as promptly as reasonably practicable to
      each indemnifying party of any action or proceeding commenced against it in
      respect of which indemnity may be sought hereunder, but failure to so notify
      an
      indemnifying party shall not relieve such indemnifying party from any liability
      hereunder to the extent it is not materially prejudiced as a result thereof
      and
      in any event shall not relieve it from any liability which it may have otherwise
      than on account of this indemnity agreement. In case any such action, claim,
      suit, investigation or proceeding shall be brought against any indemnified
      party
      and it shall notify the Company of the commencement thereof, the Company shall
      be entitled to participate therein and to assume the defense thereof;
provided,
      however,
      that in
      the event that any such action, claim, suit, investigation or proceeding
      includes both an indemnified party and the Company, and such indemnified party
      reasonably concludes that there may be legal defenses available to it or other
      indemnified parties that are different from or in addition to those available
      to
      the Company, or if the Company fails to assume the defense of the action, claim,
      suit, investigation or proceeding, in either case in a timely manner, then
      such
      indemnified party may employ separate counsel to represent or defend it in
      any
      such action, claim, suit, investigation or proceeding and the Company will
      pay
      the reasonable fees and disbursements of such counsel; provided, further, that
      the Company will not be required to pay the fees and disbursements of more
      than
      one separate counsel for all indemnified parties (and one separate counsel
      local
      counsel). In any action, claim, suit, investigation or proceeding the defense
      of
      which the Company assumes, the indemnified party will have the right to
      participate in such litigation and to retain its own counsel at such indemnified
      party’s own expense. No indemnifying party shall (i) without the prior
      written consent of the indemnified parties (which consent shall not be
      unreasonably withheld), settle or compromise or consent to the entry of any
      judgment with respect to any litigation, or any investigation or proceeding
      by
      any governmental agency or body, commenced or threatened, or any claim
      whatsoever in respect of which indemnification or contribution could be sought
      under this Section 4 (whether or not the indemnified parties are actual or
      potential parties thereto), unless such settlement, compromise or consent
      (A) includes an unconditional release of each indemnified party from all
      liability arising out of such litigation, investigation, proceeding 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 or
      (ii) be liable for any settlement of any such action effected without its
      prior written consent (which consent shall not be unreasonably
      withheld).

     

    (d)  Notwithstanding
      clause (ii) of Section 4(c), if at any time an indemnified party shall have
      requested an indemnifying party to reimburse the indemnified party for fees
      and
      expenses of counsel, such indemnifying party agrees that it shall be liable
      for
      any settlement of the nature contemplated by Section 4(a)(ii) effected without
      its written consent if (i) such settlement is entered into more than 45 days
      after receipt by such indemnifying party of the aforesaid request, (ii) such
      indemnifying party shall have received notice of the terms of such settlement
      at
      least 30 days prior to such settlement being entered into and (iii) such
      indemnifying party shall not have reimbursed such indemnified party in
      accordance with such request prior to the date of such settlement.

     

    
      
         

      

      
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    (e)  If
      the
      indemnification provided for in this Section 4 is for any reason unavailable
      to
      or insufficient to hold harmless an indemnified party in respect of any losses,
      liabilities, claims, damages or expenses referred to therein, then each
      indemnifying party shall contribute to the aggregate amount of such losses,
      liabilities, claims, damages and expenses incurred by such indemnified party,
      as
      incurred, in such proportion as is appropriate to reflect the relative fault
      of
      the Company on the one hand and the Holders on the other hand in connection
      with
      the statements or omissions which resulted in such losses, liabilities, claims,
      damages or expenses, as well as any other relevant equitable
      considerations.

     

    The
      relative fault of the Company on the one hand and the Holders on the other
      hand
      shall be determined by reference to, among other things, whether any such untrue
      or alleged untrue statement of a material fact or omission or alleged omission
      to state a material fact relates to information supplied by the Company, or
      by
      the Holders and the parties’ relative intent, knowledge, access to information
      and opportunity to correct or prevent such statement or omission.

     

    The
      Company and the Holders agree that it would not be just and equitable if
      contribution pursuant to this Section 4 were determined by pro rata allocation
      or by any other method of allocation which does not take account of the
      equitable considerations referred to above in this Section 4. The aggregate
      amount of losses, liabilities, claims, damages and expenses incurred and
      documented by an indemnified party and referred to above in this Section 4
      shall
      be deemed to include any legal or other expenses reasonably incurred by such
      indemnified party in investigating, preparing or defending against any
      litigation, or any investigation or proceeding by any governmental agency or
      body, commenced or threatened, or any claim whatsoever based upon any such
      untrue or alleged untrue statement or omission or alleged omission.

     

    No
      Person
      guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
      of
      the 1933 Act) shall be entitled to contribution from any Person who was not
      guilty of such fraudulent misrepresentation.

     

    For
      purposes of this Section 4, each Person, if any, who controls any Holder within
      the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall
      have the same rights to contribution as the Holder, and each director of the
      Company, and each Person, if any, who controls the Company within the meaning
      of
      Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same
      rights to contribution as the Company. The obligations of the Company and the
      Holders pursuant to this Section 4 shall be in addition to any liability
      that such party may otherwise have.

     

    5.  Miscellaneous.

     

    5.1  Rule
      144 and Rule 144A.
      During
      the Effectiveness Period, for so long as the Company is subject to the reporting
      requirements of Section 13 or 15(d) of the 1934 Act, the Company covenants
      that
      it will file the reports required to be filed by it under Section 13 of 15(d)
      of
      the 1934 Act and the rules and regulations adopted by the SEC thereunder. If
      during the Effectiveness Period the Company ceases to be so required to file
      such reports, the Company covenants that it will upon the request of any Holder
      of Registrable Securities (a) make publicly

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    available
      such information as is necessary to permit sales pursuant to Rule 144 under
      the
      1933 Act, (b) deliver such information to a prospective purchaser as is
      necessary to permit sales pursuant to Rule 144A under the 1933 Act and it will
      take such further action as any Holder of Registrable Securities may reasonably
      request for such purpose, and (c) take such further action that is reasonable
      in
      the circumstances, in each case, to the extent required from time to time to
      enable such Holder to sell its Registrable Securities without registration
      under
      the 1933 Act within the limitation of the exemptions provided by (i) Rule 144
      under the 1933 Act, as such Rule may be amended from time to time, (ii) Rule
      144A under the 1933 Act, as such Rule may be amended from time to time, or
      (iii)
      any similar rules or regulations hereafter adopted by the SEC. During the
      Effectiveness Period, 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.

     

    5.2  No
      Inconsistent Agreements.
      The
      Company has not entered into and the Company shall not, after the date of this
      Agreement, enter into any agreement which is inconsistent in any material
      respect with the rights granted to the Holders of Registrable Securities in
      this
      Agreement or otherwise conflicts with the provisions hereof. The rights granted
      to the Holders hereunder do not and will not for the term of this Agreement
      in
      any way conflict with the rights granted to the holders of any of the Company’s
      other issued and outstanding securities under any such agreements.

     

    5.3  No
      Adverse Actions Affecting Registration Rights.
      Subject
      to the rights of the Company to invoke and maintain a Suspension Period, the
      Company shall not, directly or indirectly, intentionally take any action with
      respect to the Registrable Securities as a class that would adversely affect
      the
      ability of the Holders of Registrable Securities to include such Registrable
      Securities in a registration undertaken pursuant to this Agreement.

     

    5.4  Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given unless the Company has obtained the
      written consent of Holders of at least a majority in aggregate principal amount
      of the outstanding Registrable Securities (with Holders of Securities deemed
      to
      be the Holders, for purposes of this Section 5.4, of the number of outstanding
      shares of Common Stock into which such Registrable Securities are or could
      be
      convertible on the date that consent would be required) affected by such
      amendment, modification, supplement, waiver or departure. Notwithstanding the
      foregoing, this Agreement may be amended by a written agreement between the
      Company and the Majority Holders, without the consent of the Holders of the
      Registrable Securities, in order to cure any ambiguity or to correct or
      supplement any provision contained herein, provided that no such amendment
      shall
      adversely affect the interest of the Holders of Registrable Securities. Each
      Holder of Registrable Securities outstanding at the time of any amendment,
      modification, waiver or consent pursuant to this Section 5.4, shall be bound
      by
      such amendment, modification, waiver or consent, whether or not any notice
      or
      writing indicating such amendment, modification, waiver or consent is delivered
      to such Holder.

     

    5.5  Notices.
      All
      notices and other communications provided for or permitted hereunder shall
      be
      made in writing by hand delivery, registered first-class mail, facsimile, or
      any
      courier guaranteeing overnight delivery (a) if to a Holder, at the most current
      address given by 

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    such
      Holder to the Company in a Questionnaire or by means of a notice given in
      accordance with the provisions of this Section 5.5, which address initially
      is
      the address set forth in the Purchase Agreement with respect to the Purchasers;
      and (b) if to the Company, initially at the Company’s address set forth in the
      Purchase Agreement, and thereafter at such other address of which notice is
      given in accordance with the provisions of this Section 5.5.

     

    All
      such
      notices and communications shall be deemed to have been duly given: at the
      time
      delivered by hand, if personally delivered; two business days after being
      deposited in the mail, postage prepaid, if mailed; when receipt is acknowledged,
      if sent by facsimile; and on the next business day if timely delivered to an
      overnight courier.

     

    Copies
      of
      all such notices, demands, or other communications shall be concurrently
      delivered by the person giving the same to the Trustee under the Indenture,
      at
      the address specified in such Indenture.

     

    5.6  Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors,
      assigns and transferees of each of the parties, including, without limitation
      and without the need for an express assignment, subsequent Holders; provided
      that
      nothing herein shall be deemed to permit any assignment, transfer or other
      disposition of Registrable Securities in violation of the terms of the Purchase
      Agreement or the Indenture. If any transferee of any Holder shall acquire
      Registrable Securities, in any manner, whether by operation of law or otherwise,
      such Registrable Securities shall be held subject to all of the terms of this
      Agreement, and by taking and holding such Registrable Securities such person
      shall be conclusively deemed to have agreed to be bound by and to perform all
      of
      the terms and provisions of this Agreement, including the restrictions on resale
      set forth in this Agreement and, if applicable, the Purchase Agreement, and
      such
      person shall be entitled to receive the benefits hereof.

     

    5.7  Third
      Party Beneficiaries.
      Each
      Holder of Registrable Securities shall be a third party beneficiary to the
      agreements made hereunder between the Company, on the one hand, and the
      Purchasers, on the other hand, and shall have the right to enforce such
      agreements directly to the extent it deems such enforcement necessary or
      advisable to protect its rights hereunder.

     

    5.8  Specific
      Enforcement.
      Without
      limiting the remedies available to the Purchasers and the Holders, the Company
      acknowledges that any failure by the Company to comply with its obligations
      under Section 2.1 hereof may result in material irreparable injury to the
      Purchasers or the Holders for which there is no adequate remedy at law, that
      it
      may not be possible to measure damages for such injuries precisely and that,
      in
      the event of any such failure, the Purchasers or any Holder may seek such relief
      as may be required to specifically enforce the Company’s obligations under
      Section 2.1 hereof.

     

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

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

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

     

    5.11  GOVERNING
      LAW.
      THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
      OF
      THE STATE OF NEW YORK.

     

    5.12  Severability.
      In the
      event that any one or more of the provisions contained herein, or the
      application thereof in any circumstance, is held invalid, illegal or
      unenforceable, the validity, legality and enforceability of any such provision
      in every other respect and of the remaining provisions contained herein shall
      not be affected or impaired thereby.

     

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

     

    

     

    
 

     

     

     

     

     

     

     

     

    

 

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

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

     

     

    
      	 	 	 
	 	CHATTEM,
              INC.
	 
 	 
 	 
 
	 	By  	 
	 	
              

              Name:
	 	Title: 

    

     

     

     

    

    

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    Confirmed
      and accepted as 

    of
      the
      date first above written:

     

    

     

     

    

     

    [PURCHASER]

     

    
 

     

    

     

    By:     
      ______________________________________

    Name:

    Title:Exhibit 10.1

    Exhibit 10.1

    

      SECOND
        AMENDED AND RESTATED

       

      CABOT
        MICROELECTRONICS CORPORATION 2000 EQUITY INCENTIVE PLAN, AS AMENDED AND
        RESTATED SEPTEMBER 26, 2006

       

      

      1. PURPOSE

       

      The
        purpose of this Second Amended and Restated Cabot Microelectronics Corporation
        2000 Equity Incentive Plan (the "Plan") is to advance the interests of Cabot
        Microelectronics Corporation (the "Company") and its stockholders by enhancing
        the Company's ability to (a) attract and retain employees, directors,
        consultants and advisors who are in a position to make significant contributions
        to the success of the Company and its subsidiaries; (b) reward these individuals
        for these contributions; (c) encourage these individuals to take into account
        the long-term interests of the Company and its stockholders; and (d) reward
        individuals who have contributed to the Company's success (including the
        success
        of the Company's initial public offering), in the case of each of (a) through
        (d), through ownership of shares of the Company's common stock, par value
        $.001
        per share ("Stock").

       

      2. ADMINISTRATION

       

      (a) The
        Plan
        shall be administered by the Compensation Committee of the Board of Directors
        (the "Board") of the Company (the "Committee"). The Committee shall hold
        meetings at such times as may be necessary for the proper administration
        of the
        Plan. The Committee shall consist of at least two directors of the Company,
        each
        of whom shall be a "Non-Employee Director" as defined in Rule 16b-3(b)(3)
        promulgated under Section 16 of the Securities Exchange Act of 1934, as amended
        (the "1934 Act"), and (ii) to the extent necessary for any Award intended
        to
        qualify as "qualified performance-based compensation" under Section 162(m)
        of
        the Internal Revenue Code of 1986, as amended (the "Code"), to so qualify,
        each
        member of the Committee shall be an "outside director" (as defined in Section
        162(m) and the regulations promulgated thereunder). Subject to applicable
        law,
        the Committee may delegate its authority under the Plan to any other person
        or
        persons.

       

      (b) No
        member
        of the Committee shall be liable for any action, failure to act, determination
        or interpretation made in good faith with respect to this Plan or any
        transaction hereunder. The Company hereby agrees to indemnify each member
        of the
        Committee for all costs and expenses and, to the fullest extent permitted
        by
        applicable law, any liability incurred in connection with defending against,
        responding to, negotiating for the settlement of or otherwise dealing with
        any
        claim, cause of action or dispute of any kind arising in connection with
        any
        actions in administering this Plan or in authorizing or denying authorization
        to
        any transaction hereunder.

       

      (c) Subject
        to the express terms and conditions set forth herein, the Committee shall
        have
        the power from time to time:

       

      (i) to
        determine the Employees, Directors and/or Advisors to whom Awards shall be
        granted under the Plan and the number of shares of Stock subject to such
        Awards;
        to prescribe the terms and conditions (which need not be identical) of each
        such

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Award;
        and to make any amendment or modification to any Award Agreement consistent
        with
        the terms of the Plan; 

       

      (ii) to
        construe and interpret the Plan and the Awards granted hereunder; to establish,
        amend and revoke rules and regulations for the administration of the Plan,
        including, but not limited to, correcting any defect or supplying any omission,
        or reconciling any inconsistency in the Plan or in any Award Agreement, in
        the
        manner and to the extent it shall deem necessary or advisable; to interpret
        the
        Plan and applicable Award Agreements so that the Plan and its operation complies
        with Section 16 of the 1934 Act, Sections 162(m) and 422 of the Code and
        other
        applicable law; and otherwise to give full effect to the Plan;

       

      (iii) to
        exercise its discretion with respect to the powers and rights granted to
        it as
        set forth in the Plan; and

       

      (iv) generally,
        to exercise such powers and to perform such acts as are deemed by it necessary
        or advisable to promote the best interests of the Company with respect to
        the
        Plan.

       

      All
        decisions and determinations of the Committee in the exercise of the foregoing
        powers shall be final, binding and conclusive upon the Company and its
        subsidiaries and affiliates, all Employees, Directors and Advisors, and all
        other persons claiming any interest herein.

       

      3. EFFECTIVE
        DATE AND TERM OF PLAN

       

      The
        Plan
        will become effective on the date on which it is adopted by the Board, subject
        to the approval of the Company's stockholders at the Annual Meeting on March
        9,
        2004. No Award may be granted under the Plan after the tenth anniversary
        of the
        date on which this Plan was adopted by the Board, but Awards previously granted
        may extend beyond that date.

       

      4. SHARES
        SUBJECT TO THE PLAN

       

      Subject
        to adjustment as provided in Section 8.6, and subject to the next following
        sentence and Section 6.3(a), the maximum number of shares of Stock that may
        be
        delivered under the Plan will be 9,500,000. 

       

      In
        addition, any Stock covered by an Option granted under the Plan, which is
        forfeited, cancelled or expires in whole or in part shall be deemed not to
        be
        delivered for purposes of determining the maximum number of shares of Stock
        available for grants under the Plan. Any shares of Stock surrendered to the
        Company in payment of the exercise price of Options issued under the Plan
        shall
        be deemed not to be delivered for purposes of determining the maximum number
        of
        shares of Stock available for grants under the Plan. Upon forfeiture or
        termination of Restricted Stock or Restricted Stock Units prior to vesting,
        the
        shares of Stock subject thereto shall again be available for Awards under
        the
        Plan.

       

      In
        no
        event shall the Company issue ISOs (as defined in Section 6.2(a)) under the
        Plan
        covering more than 1,750,000 shares of Stock.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      Awards
        granted through the assumption of, or in substitution or exchange for, similar
        awards in connection with the acquisition of another corporation or business
        entity shall not be counted for purposes of applying the limitations of this
        Section on numbers of shares of Stock available for Awards generally or any
        particular kind of Award under the Plan.

       

      Stock
        delivered under the Plan may be either from authorized but unissued Stock,
        from
        treasury shares or from shares of Stock purchased in open-market transactions
        and private sales.

       

      5. ELIGIBILITY
        AND PARTICIPATION

       

      Employees
        of the Company, its subsidiaries and affiliates ("Employees"), non-employee
        members of the board of directors of the Company, its subsidiaries or affiliates
        ("Directors"), and consultants and advisors of the Company or any of its
        subsidiaries ("Advisors"), who in the opinion of the Committee are in a position
        to make a significant contribution to the success of the Company, its
        subsidiaries and affiliates, are eligible to receive Awards under the
        Plan.

       

      For
        purposes of the Plan, "Service" means the provision of services to the Company
        or its subsidiaries or affiliates in the capacity of (i) an Employee, (ii)
        a
        Director, or (iii) an Advisor. An "affiliate" for purposes of the Plan is
        an
        entity that controls, is controlled by or is under common control with, the
        Company. A "subsidiary" for purposes of the Plan is an entity in which the
        Company owns, directly or indirectly, equity interests possessing a majority
        of
        the total combined voting power of all classes of equity. The Committee will
        from time to time select the Employees, Directors and/or Advisors who are
        to be
        granted Awards ("Participants"), but no Participant shall receive Awards
        under
        the Plan covering more than 300,000 shares of Stock (subject to adjustment
        as
        provided in Section 8.6) in any calendar year.

       

      6. TYPES
        OF
        AWARDS

       

      6.1. RESTRICTED
        STOCK AND RESTRICTED STOCK UNITS.

       

      (a) Nature
        of Restricted Stock Award.
        An
        Award of Restricted Stock entitles the recipient to acquire, at such time
        or
        times as the Committee may determine, shares of Stock subject to the
        restrictions described in paragraph (f) below ("Restricted Stock").

       

      (b) Restricted
        Stock Units.
        An
        Award of Restricted Stock Units ("RSUs") entitles the recipient to acquire,
        at
        such time or times as the Committee may determine, shares of Stock subject
        to
        the restrictions described in paragraph (f) below. An RSU represents a
        contingent right to receive a Share or an amount equivalent in value to a
        Share.

       

      (c) Maximum
        Number.
        In no
        event shall the Company issue more than 1,900,000 shares of Restricted Stock
        and/or RSUs, in the aggregate, under the Plan.

       

      (d) Payment
        for Restricted Stock.
        The
        Committee may require, as a condition to an Award of Restricted Stock or
        RSUs,
        that a Participant deliver to the Company a purchase price in any amount
        set by
        the Committee for such Restricted Stock or RSUs. In the discretion of the
        Committee, an Award Agreement evidencing an Award of Restricted Stock or
        RSUs
        may permit the Participant to pay some or all of the purchase 

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      price
        thereof, or to meet any Withholding Requirements to be met by the Participant
        in
        connection therewith, in the form of a note from the Participant on such
        terms
        as the Committee shall determine. Such terms may include forgiveness of all
        or a
        portion of any such note upon such conditions as the Committee may
        specify.

       

      (e) Rights
        as a Stockholder.
        A
        Participant who receives an Award of Restricted Stock will have all the rights
        of a stockholder with respect to the Stock, including voting and dividend
        rights, subject to the restrictions described in paragraph (d) below and
        any
        other conditions imposed by the Committee in the Award Agreement at the time
        of
        grant. The Award Agreement evidencing an Award of RSUs shall specify whether
        the
        Participant is entitled to any voting rights or to receive any dividends
        on the
        shares of Stock underlying the RSUs. An Award of Restricted Stock or RSUs
        may
        provide for the right to receive on the payment date for any dividend on
        the
        Stock, cash compensation from the Company equal to the dividend that would
        have
        been paid on such shares of Restricted Stock or RSUs (or the Fair Market
        Value
        of such dividend, if such dividend would not have been paid in cash), if
        such
        shares had been issued and outstanding, fully vested and held by the Participant
        on the record date for payment of such dividend (a "Dividend
        Equivalent").

       

      (f) Restrictions.
        The
        restrictions on each grant of Restricted Stock or RSUs will lapse at such
        time
        or times, and on such terms and conditions (including obtaining pre-established
        performance goals), as the Committee may specify. Except as otherwise
        specifically provided by the Plan or by the Committee in any particular case,
        until these restrictions lapse, neither Restricted Stock nor RSUs may be
        sold,
        assigned, transferred, pledged or otherwise encumbered or disposed of, except
        that Restricted Stock or RSUs may be pledged as security for the purchase
        price
        thereof, or for loans used to fund any or all of the purchase price thereof
        or
        Withholding Requirements met in connection with the purchase thereof. If
        the
        Participant's Service terminates before such restrictions have lapsed, the
        Company shall have the right to repurchase the Restricted Stock for the amount
        of any consideration (excluding services) it received for the Restricted
        Stock
        plus, if the Committee shall so determine, an amount equal to the Withholding
        Requirements met by the Participant in connection with the sale of the Stock,
        or
        for such other consideration as the Committee shall determine, including
        for no
        consideration if no consideration other than services was paid for such
        Restricted Stock. The Committee shall not accelerate the time at which the
        restrictions on all or any part of a grant of Restricted Stock will lapse,
        except as the Committee may determine to be appropriate in connection with
        a
        Participant's termination of Service.

       

      (e) Deferral.
        If a
        Participant so elects in accordance with such procedures as the Committee
        may
        specify from time to time, the delivery of Restricted Stock and, if the deferral
        election so specifies, of the Dividend Equivalents with respect thereto,
        shall
        be deferred until the date or dates specified in such election.

       

      (f) Section
        83(b) Election.
        Under
        Section 83 of the Code, the difference between the purchase price paid for
        the
        Stock and its Fair Market Value (as defined in Section 6.2(b)) on the date
        any
        restrictions applicable to such shares lapse will be reportable as ordinary
        income at that time. A Participant may elect to be taxed at the time

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      the
        shares of Stock are acquired hereunder to the extent the Fair Market Value
        of
        the Stock differs from the purchase price rather than when and as such Stock
        ceases to be subject to restrictions, by filing an election under Section
        83(b)
        of the Code with the I.R.S. within thirty (30) days after the grant date.
        If the
        Fair Market Value of the Stock at the grant date equals the purchase price
        paid
        (and thus no tax is payable), the election must be made to avoid adverse
        tax
        consequences in the future. The form for making this election is available
        from
        the Company. The failure to make this filing within the thirty (30) day period
        will result in the recognition of ordinary income by the Participant (in
        the
        event the Fair Market Value of the Stock increases after the grant date)
        as the
        restrictions lapse. IT IS THE PARTICIPANT'S SOLE RESPONSIBILITY, AND NOT
        THE
        COMPANY'S, TO FILE A TIMELY ELECTION UNDER SECTION 83(b). A PARTICIPANT MUST
        RELY SOLELY ON THE PARTICIPANT'S OWN ADVISORS WITH RESPECT TO THE DECISION
        AS TO
        WHETHER OR NOT TO FILE AN 83(b) ELECTION.

       

      6.2. OPTIONS.

       

      (a) Nature
        of Options.
        An
        Option is an Award entitling the recipient on exercise thereof to purchase
        shares of Stock at a specified exercise price. Both incentive stock options
        (as
        defined in Section 422 of the Code) ("ISOs") and Options that are not ISOs
        may
        be granted under the Plan; provided that the Committee may award ISOs only
        to
        Employees. 

       

      (b) Exercise
        Price.
        The
        exercise price of an Option shall be determined by the Committee and set
        forth
        in an applicable Award Agreement; provided, however, that the exercise price
        of
        an ISO shall not be less than the Fair Market Value of a share of the Stock
        on
        the date the ISO is granted (110% of the Fair Market Value of a share of
        Stock
        on the date of grant in the case of an ISO granted to an Employee who owns
        (within the meaning of Section 422(b)(6) of the Code) stock possessing more
        than
        ten percent of the total combined voting power of all classes of stock of
        the
        Company, or of a parent or a subsidiary (such person, a "Ten Percent
        Shareholder")). For purposes of this Plan, "Fair Market Value" on any date
        means
        the closing sales price of the Stock on such date on the principal national
        securities exchange on which the Stock is listed or admitted to trading,
        or, if
        the Stock is not so listed or admitted to trading, the average of the per
        share
        closing bid price and per share closing asked price on such date as quoted
        on
        the National Association of Securities Dealers Automated Quotation System
        or
        such other market in which such prices are regularly quoted, or, if there
        have
        been no published bid or asked quotations with respect to shares on such
        date,
        the Fair Market Value shall be the value established by the Board in good
        faith
        and, in the case of an ISO, in accordance with Section 422 of the Code. Except
        for adjustment as provided in Section 8.6, any outstanding Options shall
        not be
        repriced.

       

      (c) Duration
        of Options.
        The
        latest date on which an Option may be exercised will be the tenth anniversary
        of
        the date the Option was granted (five years in the case of an ISO granted
        to a
        Ten Percent Shareholder), or such earlier date as may have been specified
        by the
        Committee in the Award Agreement at the time the Option was
        granted.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      (d) Exercise
        of Options.
        An
        Option will become exercisable at such time or times, and on such terms and
        conditions (including obtaining pre-established performance goals), as the
        Committee may specify in the Award Agreement for such Option. The Committee
        may
        at any time accelerate the time at which all or any part of the Option may
        be
        exercised.

       

      Subject
        to the next following sentence, any exercise of an Option must be in writing,
        signed by the proper person and delivered or mailed to the Company, accompanied
        by (1) any documents required by the Committee and (2) payment in full for
        the
        number of shares for which the Option is exercised. The exercise price for
        any
        Stock purchased pursuant to the exercise of an Option may, if permitted under
        the Award Agreement applicable to the Option, be paid in the following forms:
        (a) cash; (b) the transfer, either actually or by attestation, to the Company
        of
        shares of Stock that have been held by the Participant for at least six months
        (or such lesser period as may be permitted by the Committee) prior to the
        exercise of the Option, such transfer to be upon such terms and conditions
        as
        determined by the Committee; (c) such other methods as the Committee makes
        available to Participants from time to time; or (d) a combination thereof.
        In
        addition, Options may be exercised through a registered broker-dealer pursuant
        to such cashless exercise procedures which are, from time to time, deemed
        acceptable by the Committee. Any shares of Stock transferred to the Company
        as
        payment of the exercise price under an Option shall be valued at their Fair
        Market Value on the day of exercise of such Option. If requested by the
        Committee, the Participant shall deliver the Award Agreement to the Secretary
        of
        the Company who shall endorse thereon a notation of such exercise and return
        such Award Agreement to the Participant. No fractional shares of Stock (or
        cash
        in lieu thereof) shall be issued upon exercise of an Option, and the number
        of
        shares of Stock that may be purchased upon exercise shall be rounded to the
        nearest number of whole shares.

       

      (e) Exercise
        Limit.
        To the
        extent that the aggregate Fair Market Value (determined as of the date of
        the
        grant) of shares of Stock with respect to which ISOs granted under the Plan
        and
        "incentive stock options" (within the meaning of Section 422 of the Code)
        granted under all other plans of the Company or its subsidiaries (in either
        case
        determined without regard to this Section 6.2(e)) are exercisable by a
        Participant for the first time during any calendar year exceeds $100,000,
        such
        ISOs shall be treated as Options that are not ISOs. In applying the limitation
        in the preceding sentence in the case of multiple Options, Options that are
        intended to be ISOs shall be treated as Options which are not ISOs according
        to
        the order in which they were granted, such that the most recently granted
        Options are first treated as Options that are not ISOs.

       

      (f) An
        ISO
        must be exercised, if at all, within three months after the Participant's
        termination of Service for a reason other than death or Disability and within
        twelve months after the Participant's termination of Service for death or
        Disability.

       

      6.3. SUBSTITUTE
        AWARDS.

       

      (a) In
        connection with any acquisition by the Company or any of its subsidiaries,
        the
        Committee may grant Awards to persons who became Employees, Directors or
        Advisors in 

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      connection
        with such acquisition in substitution for equity incentives held by them
        in the
        seller or acquired entity. In such case the Committee may set the prices
        and
        other terms of the substitute Awards at such amounts and in such manner as
        it,
        in its sole discretion, deems appropriate to preserve for the Participants
        the
        economic values of the equity incentives for which such Awards are substitutes
        (as determined by the Committee in its sole discretion) or otherwise to provide
        such incentives as the Committee may determine are appropriate.

       

      (b) Unless
        required by applicable law, any substitute Awards granted pursuant to Section
        6.3 shall not count toward the share limitations set forth in Section
        4.

       

      7. EVENTS
        AFFECTING OUTSTANDING AWARDS

       

      7.1. TERMINATION
        OF SERVICE.

       

      Unless
        otherwise set forth in an Award Agreement, an Award shall immediately terminate
        on the date a Participant's Service terminates, and (i) any Options held
        by a
        Participant shall not be exercisable and all rights of the Participant with
        respect thereto shall immediately terminate and (ii) any shares of Restricted
        Stock or RSU’s with respect to which the restrictions have not lapsed shall be
        immediately forfeited and must be transferred to the Company in accordance
        with
        Section 6.1.

       

      7.2 TERMINATION
        OF AWARD.

       

      The
        Company may terminate, cancel, rescind or recover an Award immediately under
        certain circumstances, including, but not limited to a
        Participant's:

       

      (a) actions
        constituting "Cause", which shall have the meaning provided under an employment,
        consulting or other agreement between a Participant and the Company, or if
        there
        is no such meaning provided under such agreement or no such agreement, shall
        include, but not be limited to, the: (i) conviction of or entering a guilty
        plea
        with respect to a crime, whether or not connected with the Company; (ii)
        commission of any act of fraud with respect to the Company; (iii) theft,
        embezzlement or misappropriation of any property of the Company; (iv) excessive
        absenteeism (other than as resulting from Disability); (v) failure to observe
        or
        comply with any Company work rules, policies, procedures, guidelines or
        standards of conduct which the Company has adopted for the regulation of
        the
        general conduct of its employees, as generally known to the employees of
        the
        Company or evidenced by the terms of any employee handbook, written memorandums
        or written policy statements; (vi) continued willful refusal to carry out
        and
        perform the material duties and responsibilities of a Participant's position,
        excluding nonperformance resulting from Disability; or (vii) any other conduct
        or act determined to be injurious, detrimental or prejudicial to any interest
        of
        the Company, (in each case as determined in good faith by the
        Company.);

       

      (b) rendering
        of services for a competitor prior to, or within six (6) months after, the
        exercise of any Option or the termination of Participant's Service with the
        Company;

       

      (c) unauthorized
        disclosure of any confidential/proprietary information of the Company to
        any
        third party; 

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      (d) failure
        to comply with the Company's policies regarding the identification, disclosure
        and protection of intellectual property; or

       

      (e) violation
        of the Proprietary Rights Agreement/Cabot Microelectronics Corporation Employee
        Confidentiality, Intellectual Property and Non-Competition Agreement for
        Employees signed by the Participant.

       

      The
        existence of any such circumstances shall be determined in good faith by
        the
        Company.

       

      In
        the
        event of any termination, cancellation, recision or revocation, the Participant
        shall return to the Company any Stock received pursuant to an Award, or pay
        to
        the Company the amount of any gain realized on the sale of any such Stock,
        in
        such manner and on such terms and conditions as may be required, and the
        Company
        shall be entitled to set-off against the amount of any such gain any amount
        owed
        to the Participant by the Company. To the extent applicable, the Company
        will
        refund to the Participant any amount paid for such Stock, including Withholding
        Requirements.

       

      7.3 CHANGE
        IN
        CONTROL.

       

      The
        Committee shall have the discretion to provide in applicable Award Agreements
        that, in the event of a "Change in Control" (as defined in Appendix A) of
        the
        Company, the following provisions will apply:

       

      (a) Each
        outstanding Option (or such lesser portion of each Option as is set forth
        in an
        applicable Award Agreement) will immediately become exercisable in
        full.

       

      (b) Each
        outstanding share of Restricted Stock or RSU (or such lesser number of shares
        as
        is set forth in an applicable Award Agreement) will immediately become free
        of
        the restrictions.

       

      (c) In
        the
        event of a Change in Control that is a merger or consolidation in which the
        Company is not the surviving corporation or that results in the acquisition
        of
        substantially all the Company's outstanding Stock by a single person or entity
        or by a group of persons or entities acting in concert, or in the event of
        a
        sale or transfer of all or substantially all of the Company's assets (a "Covered
        Transaction"), the Committee shall have the discretion to provide for the
        termination of all outstanding Options as of the effective date of the Covered
        Transaction; provided, that, if the Covered Transaction follows a Change
        in
        Control or would give rise to a Change in Control, no Option will be so
        terminated (without the consent of the Participant) prior to the expiration
        of
        20 days following the later of (i) the date on which the Award became fully
        exercisable and (ii) the date on which the Participant received written notice
        of the Covered Transaction.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      8. GENERAL
        PROVISIONS

       

      8.1. DOCUMENTATION
        OF AWARDS.

       

      Awards
        will be evidenced by written instruments prescribed by the Committee from
        time
        to time (each such instrument, an "Award Agreement"). Award Agreements may
        be in
        the form of agreements, to be executed by both the Participant and the Company,
        or certificates, letters or similar instruments, acceptance of which will
        evidence agreement to the terms thereof and hereof.

       

      8.2. RIGHTS
        AS
        A STOCKHOLDER; DIVIDEND EQUIVALENTS.

       

      Except
        as
        specifically provided by the Plan, the receipt of an Award will not give
        a
        Participant rights as a stockholder, and the Participant will obtain such
        rights, subject to any limitations imposed by the Plan or the Award Agreement,
        upon actual receipt of Stock. However, the Committee may, on such conditions
        as
        it deems appropriate, provide in an Award Agreement that a Participant will
        receive a benefit in lieu of cash dividends that would have been payable
        on any
        or all Stock subject to the Participant's Award had such Stock been outstanding.
        Without limitation, the Committee may provide for payment to the Participant
        of
        amounts representing such dividends, either currently or in the future, or
        for
        the investment of such amounts on behalf of the Participant.

       

      8.3 CONDITIONS
        ON DELIVERY OF STOCK.

       

      The
        Company will not be obligated to deliver any shares of Stock pursuant to
        the
        Plan or to remove any restriction from shares of Stock previously delivered
        under the Plan (a) until all conditions of the Award have been satisfied
        or
        removed, (b) until, in the opinion of the Company's counsel, all applicable
        federal and state laws and regulations have been complied with, (c) if the
        outstanding Stock is at the time listed on any stock exchange, until the
        shares
        to be delivered have been listed or authorized to be listed on such exchange
        upon official notice of notice of issuance and (d) until all other legal
        matters
        in connection with the issuance and delivery of such shares have been approved
        by the Company's counsel. If the sale of Stock has not been registered under
        the
        Securities Act of 1933, as amended, the Company may require, as a condition
        to
        exercise of the Award, such representations or agreements as counsel for
        the
        Company may consider appropriate to avoid violation of such Act and may require
        that the certificates evidencing such Stock bear an appropriate legend
        restricting transfer.

       

      8.4. TAX
        WITHHOLDING.

       

      The
        Company will withhold from any payment made pursuant to an Award an amount
        as
        may be necessary sufficient to satisfy all minimum federal, state and local
        withholding tax requirements (the "Withholding Requirements").

       

      The
        Committee will have the right to require that the Participant or other
        appropriate person remit to the Company an amount sufficient to satisfy the
        Withholding Requirements, or make other arrangements satisfactory to the
        Committee with regard to such requirements, prior to the delivery of any
        Stock.
        If and to the extent that any such withholding is required, the Committee
        may
        permit the Participant or such other person to elect at such time and in
        such

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      manner
        as
        the Committee provides to have the Company hold back from the shares to be
        delivered, or to deliver to the Company, Stock having a value calculated
        to
        satisfy the Withholding Requirements.

       

      If
        at the
        time an ISO is exercised the Committee determines that the Company could
        be
        liable for Withholding Requirements with respect to a disposition of the
        Stock
        received upon exercise, the Committee may require as a condition of exercise
        that the person exercising the ISO agree (a) to inform the Company promptly
        of
        any disposition of Stock received upon exercise of the ISO, and (b) to give
        such
        security as the Committee deems adequate to meet the potential liability
        of the
        Company for the Withholding Requirements and to augment such security from
        time
        to time in any amount reasonably deemed necessary by the Committee to preserve
        the adequacy of such security.

       

      8.5. NONTRANSFERABILITY
        OF AWARDS.

       

      No
        Option
        shall be transferable by a Participant otherwise than by will or by the laws
        of
        descent and distribution or, in the case of an Option other than an ISO,
        pursuant to a domestic relations order (within the meaning of Rule 16a-12
        promulgated under the Exchange Act), and an Option shall be exercisable during
        the lifetime of such Participant only by such Participant or such Participant's
        executor or administrator or by the person or persons to whom the Option
        is
        transferred by will or the applicable laws of descent and distribution (such
        person, the Participant's "Legal Representative"). Notwithstanding the foregoing
        sentence, the Committee may set forth in an Award Agreement evidencing an
        Option
        (other than an ISO), that the Option may be transferred to members of the
        Participant's immediate family, to trusts solely for the benefit of such
        immediate family members and to partnerships in which such family members
        and/or
        trusts are the only partners, and for purposes of this Plan, such a transferee
        of an Option shall be deemed to be the Participant. For this purpose, "immediate
        family" shall refer only to the Participant's spouse, parents, children,
        stepchildren and grandchildren and the spouses of such parents, children,
        stepchildren and grandchildren. The terms of an Option shall be final, binding
        and conclusive upon the beneficiaries, executors, administrators, heirs and
        successors of the Participant.

       

      8.6. ADJUSTMENTS
        IN THE EVENT OF CERTAIN TRANSACTIONS.

       

      In
        the
        event that the outstanding shares of Stock are changed into or exchanged
        for a
        different number or kind of shares of stock, other securities or other property
        of the Company, an affiliate or another legal entity, whether through merger,
        consolidation, reorganization, recapitalization, stock dividend, stock split-up
        or other substitution of securities of the Company, an affiliate or another
        entity, the Committee shall proportionally adjust the maximum number and
        kind of
        shares of stock or other equity interest as to which Awards may be granted
        under
        the Plan and the number and kind of shares of stock or other equity interest
        with respect to which Awards have been granted under the Plan, the exercise
        prices for such shares or other equity interest subject to Options and any
        other
        economic terms of Awards granted under the Plan; and provided, that, in the
        event of a merger, acquisition or other business combination of the Company
        with
        or into another entity, any adjustment provided for in the applicable agreement
        and plan of merger (or similar document) shall be conclusively deemed to
        be
        appropriate for purposes of this Section 8.6. The Committee's adjustment
        shall
        be final and binding for all 

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      purposes
        of the Plan and each Award Agreement entered into under the Plan. Unless
        the
        Committee otherwise determines, no adjustment provided for in this Section
        8.6
        shall require the Company to issue a fractional share and, in such event,
        with
        respect to each Award Agreement the total adjustment as to the number of
        shares
        for which Awards have been granted shall be effected by rounding down to
        the
        nearest whole number of shares.

       

      8.7. PARTICIPANT'S
        RIGHTS.

       

      Neither
        the adoption of the Plan nor the grant of Awards will confer upon any person
        any
        right to continued employment or Service with the Company or any subsidiary
        or
        affiliate or affect in any way the right of the Company any subsidiary or
        affiliate to terminate an employment or Service relationship at any
        time.

       

      8.8. PAYMENT
        FOR STOCK; LOANS.

       

      Stock
        awarded under this Plan as Restricted Stock or received upon exercise of
        an
        Option may be paid for with such legal consideration as the Committee may
        determine. If and to the extent authorized by the Committee, the Company
        may
        permit Participants to pay for Stock with promissory notes, and may make
        loans
        to Participants of all or a portion of any Withholding Requirements to be
        met in
        connection with the grant, exercise or vesting of any Award. Any such extensions
        of credit may be secured by Stock or other collateral, or may be made on
        an
        unsecured basis, as the Committee may determine.

       

      8.9. SUCCESSORS.

       

      All
        obligations of the Company under the Plan or any Award Agreement will be
        binding
        on any successor to the Company, whether the existence of the successor results
        from a direct or indirect purchase of all or substantially all of the Company's
        shares, or a merger, consolidation, or otherwise.

       

      8.10. SEVERABILITY.
        

       

      If
        any
        provision of the Plan is held illegal or invalid for any reason, the illegality
        or invalidity will not affect the remaining parts of the Plan, and the Plan
        will
        be construed and enforced as if the illegal or invalid provision had not
        been
        included.

       

      8.11. REQUIREMENTS
        OF LAW. 

       

      The
        granting of Awards and the issuance of Share and/or cash payouts under the
        Plan
        will be subject to all applicable laws, rules, and regulations, and to any
        approvals by governmental agencies or national securities exchanges as may
        be
        required.

       

      8.12. SECURITIES
        LAW COMPLIANCE. 

       

      As
        to any
        individual who is, on the relevant date, an officer, director or ten percent
        beneficial owner of any class of the Company's equity securities that is
        registered pursuant to Section 12 of the Exchange Act, all as defined under
        Section 16 of the Exchange Act, transactions under this Plan are intended
        to
        comply with all applicable conditions of Rule 16b-3 under the Exchange Act,
        or
        any successor rule. To the extent any provision of the Plan or action by
        the
        Board fails to so comply, it will be deemed null and void, to the extent
        permitted by law and deemed advisable by the Board.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      8.13. AWARDS
        TO
        FOREIGN NATIONALS AND EMPLOYEES OUTSIDE THE UNITED STATES. 

       

      To
        the
        extent the Board deems it necessary, appropriate or desirable to comply with
        foreign law or practice and to further the purposes of this Plan, the Board
        may,
        without amending the Plan, (i) establish rules applicable to Awards granted
        to
        Participants who are foreign nationals, are employed or providing Service
        outside the United States, or both, including rules that differ from those
        set
        forth in this Plan, and (ii) grant Awards to such Participants in accordance
        with those rules that would require the application of the law of any other
        jurisdiction.

       

      8.14. GOVERNING
        LAW. 

       

      To
        the
        extent not preempted by federal law, the Plan and all agreements hereunder
        will
        be construed and enforced in accordance with, and governed by, the laws of
        the
        State of Delaware, without giving effect to its conflicts of laws principles
        that would require the application of the law of any other
        jurisdiction.

       

      9. PERFORMANCE
        -BASED RESTRICTED STOCK AWARDS.

       

      If
        the
        Committee makes Restricted Stock or RSU Awards that are designed to qualify
        for
        the performance-based exception from the tax deductibility limitations of
        Code
        Section 162(m) and any regulations promulgated thereunder, the Committee
        will
        determine the number of shares awarded and/or vesting of such Restricted
        Stock
        or RSU Awards using performance measures, which may include such measures
        as
        financial goals and business metrics such as revenue, gross margin, net income,
        operating income, earnings per share, return on operating assets or capital,
        cash flow (e.g, operating cash flow, free cash flow, discounted cash flow
        return
        on investment) market share, return to shareholders, cost management, business
        growth through market and technology extension, safety, improvement in
        technology and quality leadership, business processes, organizational
        effectiveness and operational excellence (all e.g., absolute or peer-group
        comparative), and/or other performance measures set by the Board or
        Committee.

       

      The
        Committee shall have the discretion to adjust the determinations of the degree
        of attainment of the preestablished performance objectives to reflect accounting
        changes or other events. In addition, in the event that the Committee determines
        that it is advisable to grant Restricted Stock or RSU Awards that may not
        qualify for the performance-based exception, the Committee may make such
        grants
        without satisfying the requirements of Code Section 162(m).

       

      10. DISCONTINUANCE,
        CANCELLATION, AMENDMENT AND TERMINATION

       

      The
        Committee may at any time discontinue granting Awards under the Plan. The
        Board
        may at any time or times amend the Plan and, with the consent of the holder
        thereof, any outstanding Award. The Committee may at any time terminate the
        Plan
        as to any further grants of Awards, provided that (except to the extent
        expressly required or permitted by the Plan) no such amendment will, without
        the
        approval of the stockholders of the Company, (a) increase the maximum number
        of
        shares available under the Plan, (b) extend the time within which Awards
        may be
        granted, or (c) amend the provisions of this Section 10, and no amendment
        or
        termination of the Plan may adversely affect the rights of any Participant
        (without his or her consent) under any Award previously granted.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          
                                                                CABOT
          MICROELECTRONICS CORPORATION

      

       

      

                                                                                                                      By:  /s/
        William P. Noglows       
       

       

                                           Its: 
President
        & CEO             
       

      

      

      
        
          

           

          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      APPENDIX
        A TO SECOND AMENDED AND RESTATED 2000

      EQUITY
        INCENTIVE PLAN

      

      A
        "Change
        in Control" shall be deemed to have occurred if:

      

      (a) any
        "person" as such term is used in Sections 13(d) and 14(d) of the 1934 Act
        (other
        than (i) the Company, (ii) any subsidiary of the Company, (iii) any trustee
        or
        other fiduciary holding securities under an employee benefit plan of the
        Company
        or of any subsidiary of the Company, or (iv) any company owned, directly
        or
        indirectly, by the stockholders of the Company in substantially the same
        proportions as their ownership of stock of the Company), is or becomes the
        "beneficial owner" (as defined in Section 13(d) of the 1934 Act), together
        with
        all Affiliates and Associates (as such terms are used in Rule 12b-2 of the
        General Rules and Regulations under the 1934 Act) of such person, directly
        or
        indirectly, of securities of the Company representing thirty percent (30%)
        or
        more of the combined voting power of the Company's then outstanding securities;
        or

      

      (b) the
        stockholders of the Company approve a merger or consolidation of the Company
        with any other company, other than (i) a merger or consolidation which would
        result in the voting securities of the Company outstanding immediately prior
        thereto continuing to represent (either by remaining outstanding or by being
        converted into voting securities of the surviving entity), in combination
        with
        the ownership of any trustee or other fiduciary holding securities under
        an
        employee benefit plan of the Company or any subsidiary of the Company, at
        least
        sixty percent (60%) of the combined voting power of the voting securities
        of the
        Company or such surviving entity outstanding immediately after such merger
        or
        consolidation or (ii) a merger or consolidation effected to implement a
        recapitalization of the Company (or similar transaction) after which no "person"
        (with the method of determining "beneficial ownership" used in clause (a)
        of
        this definition) owns more than thirty percent (30%) of the combined voting
        power of the securities of the Company or the surviving entity of such merger
        or
        consolidation; or

      

      (c) during
        any period of two consecutive years (not including any period prior to the
        execution of the Plan), individuals who at the beginning of such period
        constitute the Board, and any new director (other than a director designated
        by
        a person who has conducted or threatened a proxy contest, or has entered
        into an
        agreement with the Company to effect a transaction described in clause (a),
        (b)
        or (d) of this definition) whose election by the Board or nomination for
        election by the Company's stockholders was approved by a vote of at least
        two-thirds (2/3) of the directors then still in office who either were directors
        at the beginning of the period or whose election or nomination for election
        was
        previously so approved cease for any reason to constitute at least a majority
        thereof; or

      

      

      (d) the
        stockholders of the Company approve a plan of complete liquidation of the
        Company or an agreement for the sale or disposition by the Company of all
        or
        substantially all of the Company's assets. 

       

      
        
          
          

        

        
          14

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