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Exhibit 10.12  

 
 

STOCK SUBSCRIPTION AGREEMENT    
    

        THIS STOCK SUBSCRIPTION AGREEMENT, dated as of August 11, 2006 (this "Agreement"), is by and among Paradigm
Geotechnology B.V., a private limited liability company organized and existing under the laws of The Netherlands (the "Company"), and each of the
several purchasers named in Schedule I attached hereto (each, a "Subscriber" and collectively,
the "Subscribers"). 

        Section 1.    Subscription to Purchase the Ordinary Shares.    Each Subscriber hereby irrevocably subscribes
and agrees to purchase the number of shares of the Company's ordinary shares, par value one euro cent (€0.01) per share (the "Ordinary
Shares") set forth opposite the name of such Subscriber in Schedule I, at a purchase price of $9.15 per Ordinary Share.
The Company's agreement with each Subscriber is a separate agreement, and the sale of the Ordinary Shares to each Subscriber is a separate sale. 

        Section 2.    Payment for the Ordinary Shares.    The purchase and sale of the Ordinary Shares will be
consummated as of the Initial Closing Date (as that term is defined in the Share Purchase and Contribution Agreement, dated as of July 5, 2006 (the  "SPA"), by and between Paradigm Geotechnology
Holdings B.V., a privated limited liability company organized and existing under the laws of The
Netherlands ("Fox Paine"), the entities and natural persons party thereto as "Initial Sellers" and the
Company), conditioned upon the consummation of the other Transactions (as defined in the SPA). On the Initial Closing Date, each Subscriber will pay and deliver to the Company (or as otherwise
directed by the Company) the aggregate purchase price for the Ordinary Shares as set forth opposite such Subscriber's name in Schedule I, in the
form of a wire transfer to the Company to the account set forth in Schedule II in immediately available funds (the  "Payment"). 

        Section 3.    Execution of the New Shareholders' Agreement.    Each of the Subscribers will sign and deliver
the New Shareholders' Agreement (as defined in the SPA) on the Initial Closing Date. 

        Section 4.    Deed of Issuance.    On the Initial Closing Date, the Company and each of the Subscribers will
execute a notarial deed of issuance with respect to the Ordinary Shares to be issued to each of the Subscribers, substantially in the form attached as Annex A, to be executed in the Netherlands on the
Initial Closing Date before the Notary (as defined in the SPA). 

        Section 5.    Representations and Warranties of the Subscribers.    

        (a)   Each
Subscriber hereby represents and warrants to the Company and each of the other Subscribers that, in connection with the purchase of the Ordinary Shares, such
Subscriber understands and acknowledges that (i) none of the Ordinary Shares have been or will be registered under the United States Securities Act of 1933, as amended (the  "Securities Act"), or
any other applicable securities laws, (ii) the Ordinary Shares are being offered by the Company in a transaction not
requiring registration under the Securities Act, and (iii) the Ordinary Shares may not be offered, sold, pledged or otherwise transferred by the Subscribers except in compliance with the
registration requirements of the Securities Act, or any other applicable securities laws, pursuant to an exemption therefrom or in a transaction not subject thereto. 

        (b)   Each
of the Subscribers understands that the Ordinary Shares are being offered and sold in reliance upon an exemption from registration under the Securities Act provided
by Section 4(2) of the Securities Act and/or Regulation S under the Securities Act. Each of the Subscribers represents that either (i) it is an "accredited investor" as that term
is defined in Rule 501(a) of the Securities Act, or (ii) it is not a "U.S. Person" (as defined in Regulation S under the Securities Act) and is not acquiring the Ordinary Shares
for the account or benefit of any U.S. person and that it will acquire the Ordinary Shares in an "offshore transaction" (as defined in Regulation S under the Securities Act). 

        (c)   Each
of the Subscribers represents and warrants that it is purchasing the Ordinary Shares for its own account, for investment and not with a view to, or for offer or
sale in connection with, 

any
distribution thereof in violation of the Securities Act or any other applicable securities laws, subject to its ability to resell such Ordinary Shares pursuant to an effective registration
statement under the Securities Act or any other applicable securities laws or pursuant to an exemption there from or in a transaction not subject thereto. 

        (d)   Each
of the Subscribers represents that it is eligible to purchase the Ordinary Shares under the laws applicable to such Subscriber. 

        (e)   Each
of the Subscribers represents and warrants that it has such knowledge and experience in financial and business matters that it is capable of evaluating the merits
and risks of purchasing the Ordinary Shares and is aware that it will be required to bear the economic risk of an investment in the Ordinary Shares for a certain period of time. 

        IN
WITNESS WHEREOF, the parties to this Agreement have executed or caused this Agreement to be executed by their duly authorized officers as of the day and year first written above. 

	PARADIGM GEOTECHNOLOGY B.V.	 	 	 
	

By:	
 	

/s/  SHAI BUBER      
	
 	

 	

 
	Name:	 	Shai Buber	 	 	 
	Title:	 	Attorney in Fact	 	 	 
	

SUBSCRIBERS:	
 	

 	

 
	

PARADIGM GEOTECHNOLOGY HOLDINGS B.V.	
 	

 	

 
	

By:	
 	

/s/  TROY THACKER      
	
 	

 	

 
	Name:	 	Troy Thacker	 	 	 
	Title:	 	Managing Director	 	 	 
	

JOHN W. GIBSON, JR.	
 	

 	

 
	

By:	
 	

/s/  JOHN W. GIBSON, JR.      
	
 	

 	

 
	

ELIJIO V. SERRANO	
 	

 	

 
	

By:	
 	

/s/  ELIJIO V. SERRANO      
	
 	

 	

 
	

JORGE MACHNIZH	
 	

 	

 
	

By:	
 	

/s/  JORGE MACHNIZH      
	
 	

 	

 
	

DAVID A. VERDUN	
 	

 	

 
	

By:	
 	

/s/  DAVID A. VERDUN      
	
 	

 	

 
	

FOSTER WILLIAMS	
 	

 	

 
	

By:	
 	

/s/  FOSTER WILLIAMS      
	
 	

 	

 

	

JONATHAN KELLER	
 	

 	

 
	

By:	
 	

/s/  JONATHAN KELLER      
	
 	

 	

 
	

SHAI BUBER	
 	

 	

 
	

By:	
 	

/s/  SHAI BUBER      
	
 	

 	

 
	

FCPR GALILEO III	
 	

 	

 
	

By:	
 	

/s/  JOEL ILLEGIBLE      
	
 	

 	

 
	Name:	 	Joel Illegible	 	 	 
	Title:	 	 	 	 	 
	

R CAPITAL TECHNOLOGIES	
 	

 	

 
	

By:	
 	

/s/  JÊROME PUJOL      
	
 	

 	

 
	Name:	 	Jêrome Pujol	 	 	 
	Title:	 	 	 	 	 
	

R CAPITAL PRIVÉ TECHNOLOGIES	
 	

 	

 
	

By:	
 	

/s/  JÊROME PUJOL      
	
 	

 	

 
	Name:	 	Jêrome Pujol	 	 	 
	Title:	 	 	 	 	 
	

MATIGNON TECHNOLOGIES	
 	

 	

 
	

By:	
 	

/s/  ILLEGIBLE CONNAN      
	
 	

 	

 
	Name:	 	Illegible Connan	 	 	 
	Title:	 	 	 	 	 
	

BLUE INSIDER	
 	

 	

 
	

By:	
 	

/s/  GALILEO      
	
 	

 	

 
	Name:	 	Galileo	 	 	 
	Title:	 	 	 	 	 

QuickLinks

STOCK SUBSCRIPTION AGREEMENTExhibit 4.2

 

 

 

AMENDED AND RESTATED
REGISTRATION RIGHTS AGREEMENT

 

by and among

 

VANGUARD CAR RENTAL HOLDINGS
LLC,

 

WORLDWIDE EXCELLERATED LEASING LTD.

 

and

 

THE INITIAL HOLDERS SPECIFIED

 

ON THE SIGNATURE PAGES HEREOF

 

Dated as of  August 1, 2006

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  DEFINITIONS

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  REGISTRATION UNDER THE SECURITIES ACT

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  2.1.

  	
   

  	
  Demand
  Registration

  	
  6

  
	
  2.2.

  	
   

  	
  Incidental
  Registration

  	
  9

  
	
  2.3.

  	
   

  	
  S-3
  Registration; Shelf Registration

  	
  11

  
	
  2.4.

  	
   

  	
  Expenses

  	
  13

  
	
  2.5.

  	
   

  	
  Underwritten
  Offerings

  	
  13

  
	
  2.6.

  	
   

  	
  Conversions;
  Exercises

  	
  13

  
	
  2.7.

  	
   

  	
  Postponements

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  HOLDBACK ARRANGEMENTS

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  3.1.

  	
   

  	
  Restrictions
  on Sale by Holders of Registrable Securities

  	
  14

  
	
  3.2.

  	
   

  	
  Restrictions
  on Sale by the Company and Others

  	
  15

  
	
  3.3.

  	
   

  	
  Confidentiality
  of Notices

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  REGISTRATION PROCEDURES

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  4.1.

  	
   

  	
  Obligations
  of the Company

  	
  15

  
	
  4.2.

  	
   

  	
  Seller
  Information

  	
  20

  
	
  4.3.

  	
   

  	
  Notice to
  Discontinue

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  INDEMNIFICATION; CONTRIBUTION

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  5.1.

  	
   

  	
  Indemnification
  by the Company

  	
  21

  
	
  5.2.

  	
   

  	
  Indemnification
  by Holders

  	
  21

  
	
  5.3.

  	
   

  	
  Conduct of
  Indemnification Proceedings

  	
  22

  
	
  5.4.

  	
   

  	
  Contribution

  	
  23

  
	
  5.5.

  	
   

  	
  Other
  Indemnification

  	
  23

  
	
  5.6.

  	
   

  	
  Indemnification
  Payments

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  GENERAL

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  6.1.

  	
   

  	
  Adjustments
  Affecting Registrable Securities

  	
  24

  
	
  6.2.

  	
   

  	
  Registration
  Rights to Others

  	
  24

  
	
  6.3.

  	
   

  	
  Availability
  of Information; Rule 144; Rule 144A; Other Exemptions

  	
  24

  
	
  6.4.

  	
   

  	
  Amendments
  and Waivers

  	
  25

  
	
  6.5.

  	
   

  	
  Notices

  	
  25

  
	
  6.6.

  	
   

  	
  Successors
  and Assigns

  	
  26

  
	
  6.7.

  	
   

  	
  Counterparts

  	
  27

  
	
  6.8.

  	
   

  	
  Descriptive
  Headings, Etc

  	
  27

  
	
  6.9.

  	
   

  	
  Severability

  	
  27

  
	
  6.10.

  	
   

  	
  Governing Law

  	
  27

  
	
  6.11.

  	
   

  	
  Consent to
  Jurisdiction

  	
  27

  

 

i

 

	
  6.12.

  	
   

  	
  Waiver of
  Jury Trial

  	
  28

  
	
  6.13.

  	
   

  	
  Remedies;
  Specific Performance

  	
  28

  
	
  6.14.

  	
   

  	
  Entire
  Agreement

  	
  28

  
	
  6.15.

  	
   

  	
  Nominees for
  Beneficial Owners

  	
  28

  
	
  6.16.

  	
   

  	
  Further
  Assurances

  	
  29

  
	
  6.17.

  	
   

  	
  No
  Inconsistent Agreements

  	
  29

  
	
  6.18.

  	
   

  	
  Construction

  	
  29

  

 

ii

 

AMENDED AND RESTATED REGISTRATION RIGHTS
AGREEMENT

 

This AMENDED
AND RESTATED REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made
and entered into as of August 1, 2006, by and among Vanguard Car Rental
Holdings LLC, a Delaware limited liability company (the “Company”), Worldwide
Excellerated Leasing Ltd., a Bermuda company
(“Worldwide”), Cerberus Vanguard Investor L.P., a Cayman limited
partnership (“Cerberus”), William E. Lobeck, an individual and his
Affiliates specified on the signature pages hereof (“Lobeck”), and
the individuals specified on the signature pages hereof (the “Executives”
and together with Cerberus and Lobeck, the “Initial Holders”).

 

W I  T  N  E  S
S  E  T  H :

 

WHEREAS,
Worldwide and the holders of the Class A Common Shares and the Class B
Common Shares of Worldwide are parties to a Registration Rights Agreement,
dated as of October 14, 2003, as supplemented (the “Original Agreement”);

 

WHEREAS,
contemporaneously with the execution hereof, the holders of the Class A
Common Shares, par value $0.001 per share, and the holders of the Class B
Common Shares, par value $0.001 per share, are contributing all of such shares
to the Company in exchange for all of the Class A Units and Class B
Units of the Company;

 

WHEREAS, the
parties to the Original Agreement wish to reflect the assignment to and
assumption by the Company of the rights and obligations of Worldwide under the
Original Agreement, and to amend and restate the Original Agreement in its
entirety;

 

NOW,
THEREFORE, in consideration of the premises and of the mutual agreements
contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, and intending to be legally
bound hereby, the Original Agreement is amended and restated to read in its
entirety as follows:

 

1.                                       DEFINITIONS.
As used in this Agreement, the following terms shall have the following
meanings:

 

“Affiliate”
shall mean with respect to any Person, any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such Person, and with respect to any partnership or limited liability company,
shall include its partners or members, as applicable, and with respect to any
individual, shall mean his or her spouse, sibling, child, step child,
grandchild or parent of such Person, or the spouse thereof (“Immediate
Family”), or a trust or family limited partnership, or Person all the
interests of which are held by or, for the benefit of any such Person or
Persons and, with respect to Cerberus, shall mean its respective members,
stockholders, general partners and/or limited partners, as applicable. For
purposes of this definition, “control” (including, with correlative meanings,
the terms “controlling,” “controlled by” and “under common control with”), as
used with respect to any Person, shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of such Person, whether through the ownership of voting

 

1

 

securities, by agreement or otherwise; provided, however,
that beneficial ownership of 20% or more of the voting securities of a Person
shall be deemed to be control.

 

“Agents”
shall have the meaning set forth in Section 5.1.

 

“Blackout
Period” shall have the meaning set forth in Section 2.7.

 

“Cerberus
Subscription Agreements” shall mean the agreements pursuant to which
Cerberus acquired Class A Shares, par value $0.001 per share, of
Worldwide.

 

“Claims”
shall have the meaning set forth in Section 5.1.

 

“Class A
Common Shares” shall mean Class A Units of the Company, and any Common
Shares into which such units are hereafter converted in connection with any
Initial Public Offering.

 

“Class B
Common Shares” shall mean Class B Units of the Company, and any Common
Shares into which such units are hereafter converted in connection with any
Initial Public Offering.

 

“Common
Shares” shall mean, collectively, Class A Common Shares and Class B
Common Shares and any securities issued or issuable with respect to such shares
by way of stock dividend or stock split or in connection with a combination of
shares, recapitalization, merger, consolidation or reorganization.

 

“Company”
shall mean Vanguard Car Rental Holdings LLC, a Delaware limited liability
company, and any successor thereto by merger, consolidation, contribution or
sale of substantially all of its assets as a result of which the Class A
Common Shares and the Class B Common Shares are converted into or
exchanged solely for common equity interests of the successor entity.

 

“Demand
Registration” shall mean a registration required to be effected by the
Company pursuant to Section 2.1.

 

“Demand
Registration Statement” shall mean a registration statement of the Company
which covers the Registrable Securities requested to be included therein
pursuant to the provisions of Section 2.1 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 material incorporated by reference (or deemed to be
incorporated by reference) therein.

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended from time
to time, and the rules and regulations thereunder, or any successor
statute.

 

“Executives”
shall mean the individuals listed on Schedule 1 hereto.

 

“Holders”
shall mean each of the Initial Holders for so long as it owns any Registrable
Securities and such of its respective heirs, successors and permitted assigns

 

2

 

(including any permitted transferees of Registrable Securities) who
acquire or are otherwise the transferee of Registrable Securities, directly or
indirectly, from such Initial Holder (or any subsequent Holder), for so long as
such heirs, successors and permitted assigns own any Registrable Securities.
For purposes of this Agreement, a Person will be deemed to be a Holder whenever
such Person holds Registrable Securities, an option to purchase, or a security
convertible into or exercisable or exchangeable for, Registrable Securities,
whether or not such purchase, conversion, exercise or exchange has actually
been effected and disregarding any legal restrictions upon the exercise of such
rights. Registrable Securities issuable upon exercise of an option or upon
conversion, exchange or exercise of another security shall be deemed
outstanding for the purposes of this Agreement.

 

“Holders’
Counsel” shall mean one firm of counsel (per registration) to the Holders
of Registrable Securities participating in such registration, which counsel
shall be selected (i) in the case of a Demand Registration or an S-3
Registration, by the Initiating Holders holding a majority of the Registrable
Securities for which registration was requested in the Request, and (ii) in
all other cases, by the Majority Holders of the Registration.

 

“Incidental
Registration” shall mean a registration required to be effected by the
Company pursuant to Section 2.2.

 

“Incidental
Registration Statement” shall mean a registration statement of the Company
which covers the Registrable Securities requested to be included therein
pursuant to the provisions of Section 2.2 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 material incorporated by reference (or deemed to be
incorporated by reference) therein.

 

“Initial
Holders” shall have the meaning set forth in the preamble.

 

“Initial
Public Offering” shall mean the first public offering of any class of
equity securities of the Company pursuant to a registration statement filed
with and declared effective by the SEC.

 

“Initiating
Holders” shall mean, with respect to a particular registration, the Holders
who initiated the Request for such registration.

 

“Inspectors”
shall have the meaning set forth in Section 4.1(g).

 

“Investor
Holders” shall mean each of the Investors and its Affiliates for so long as
it owns any Registrable Securities and such of its respective successors and
permitted assigns (including any permitted transferees of Registrable
Securities) who acquire or are otherwise the transferee of Registrable
Securities, directly or indirectly, from such Investor (or any subsequent
holder), for so long as such successors and permitted assigns own any Registrable
Securities.

 

“Investors”
shall mean Cerberus and, solely with respect to the Class A Common Shares
acquired pursuant to the Lobeck Stock Purchase Agreement, Lobeck.

 

3

 

“Lobeck
Stock Purchase Agreement” shall mean the agreements pursuant to which
Lobeck acquired the Class A Shares, par value $0.001 per share, of
Worldwide.

 

“Majority
Holders of the Registration” shall mean, with respect to a particular
registration, one or more Holders of Registrable Securities who would hold a
majority of the Registrable Securities to be included in such registration.

 

“Majority
Investor Holders” shall mean one or more Investor Holders who hold a
majority of the Registrable Securities then outstanding and held by the Investor
Holders.

 

“Majority
Investor Holders of the Registration” shall mean, with respect to a
particular registration, one or more Investor Holders of Registrable Securities
who would hold a majority of the Registrable Securities held by Investor
Holders to be included in such registration.

 

“Management
Holders” shall mean each of the Executives (excluding Lobeck with respect
to the Class A Common Shares of the Company attributable to Class A
Common Shares of Worldwide acquired pursuant to the Lobeck Stock Purchase
Agreement) and their respective Affiliates, for so long as such Person owns any
Registrable Securities.

 

“NASD”
shall mean the National Association of Securities Dealers, Inc.

 

“Person”
shall mean any individual, firm, partnership, corporation, trust, joint
venture, association, joint stock company, limited liability company,
unincorporated organization or any other entity or organization, including a
government or agency or political subdivision thereof, and shall include any
successor (by merger or otherwise) of such entity.

 

“Prospectus”
shall mean the prospectus included in a Registration Statement (including,
without limitation, any preliminary prospectus and any prospectus that includes
any information previously omitted from a prospectus filed as part of an
effective registration statement in reliance upon Rule 430A promulgated
under the Securities Act), and any such Prospectus as amended or supplemented
by any prospectus supplement, and all other amendments and supplements to such
Prospectus, including post-effective amendments, and in each case including all
material incorporated by reference (or deemed to be incorporated by reference)
therein.

 

“Records”
shall have the meaning set forth in Section 4.1(g).

 

“Registrable
Securities” shall mean (i) any Class A
Common Shares issued to the Initial Holders or any Affiliate thereof on the
date hereof, (ii) any Class A Common Shares otherwise or hereafter
purchased or acquired by the Holders or their Affiliates, (iii) any
securities of the Company (or any successor or assign of the Company, whether
by merger, consolidation, sale of assets or otherwise) which may be issued
upon conversion of the Class A Common Shares or the Class B Common
Shares and (iv) any other securities of the Company (or any successor or
assign of the Company, whether by merger, consolidation, sale of assets or
otherwise) which may be issued or issuable with respect to, in exchange
for, or in substitution of, Registrable Securities referenced in clauses (i), (ii) and
(iii) above by reason of any dividend or stock split, combination of
shares, merger, consolidation, recapitalization, reclassification,

 

4

 

reorganization, sale of assets or similar transaction. As to any
particular Registrable Securities, such securities shall cease to be
Registrable Securities when (A) a registration statement with respect to
the sale of such securities shall have been declared effective under the
Securities Act and such securities shall have been disposed of in accordance
with such registration statement, (B) such securities are sold pursuant to
Rule 144 (or any similar provisions then in force) under the Securities
Act, (C) such securities have been otherwise transferred, a new
certificate or other evidence of ownership for them not bearing the legend
restricting further transfer shall have been delivered by the Company and
subsequent public distribution of them shall not require registration under the
Securities Act, or (D) such securities shall have ceased to be
outstanding.

 

“Registration
Expenses” shall mean any and all expenses incident to performance of or
compliance with this Agreement by the Company and its subsidiaries, including,
without limitation (i) all SEC, stock exchange, NASD and other registration,
listing and filing fees, (ii) all fees and expenses incurred in connection
with compliance with state securities or blue sky laws and compliance with the rules of
any stock exchange (including fees and disbursements of counsel in connection
with such compliance and the preparation of a blue sky memorandum and legal
investment survey), (iii) all expenses of any Persons in preparing or
assisting in preparing, word processing, printing, distributing, mailing and
delivering any Registration Statement, any Prospectus, any underwriting
agreements, transmittal letters, securities sales agreements, securities
certificates and other documents relating to the performance of or compliance
with this Agreement, (iv) the fees and disbursements of counsel for the
Company, (v) the fees and disbursements of Holders’ Counsel, (vi) the
fees and disbursements of all independent public accountants (including the
expenses of any audit and/or “cold comfort” letters) and the fees and expenses
of other Persons, including experts, retained by the Company, (vii) the
expenses incurred in connection with making road show presentations and holding
meetings with potential investors to facilitate the distribution and sale of
Registrable Securities which are customarily borne by the issuer, (viii) any
fees and disbursements of underwriters customarily paid by issuers or sellers
of securities, and (ix) premiums and other costs of policies of insurance
against liabilities arising out of the public offering of the Registrable
Securities being registered; provided, however, Registration
Expenses shall not include discounts and commissions payable to underwriters,
selling brokers, dealer managers or other similar Persons engaged in the
distribution of any of the Registrable Securities; and provided, further,
that in any case where Registration Expenses are not to be borne by the
Company, such expenses shall not include salaries of Company personnel or
general overhead expenses of the Company, auditing fees, premiums or other
expenses relating to liability insurance required by underwriters of the
Company or other expenses for the preparation of financial statements or other
data normally prepared by the Company in the ordinary course of its business or
which the Company would have incurred in any event; and provided, further,
that in the event the Company shall, in accordance with Section 2.2 or Section 2.7
hereof, not register any securities with respect to which it had given written
notice of its intention to register to Holders, notwithstanding anything to the
contrary in the foregoing, all of the costs incurred by the Holders in
connection with such registration shall be deemed to be Registration Expenses.

 

“Registration
Statement” shall mean any registration statement of the Company which
covers any Registrable Securities and all amendments and supplements to any
such Registration Statement, including post-effective amendments, in each case
including the

 

5

 

Prospectus contained therein, all exhibits thereto and all material
incorporated by reference (or deemed to be incorporated by reference) therein.

 

“Request”
shall have the meaning set forth in Section 2.1(a).

 

“S-3
Registration” shall mean a registration required to be effected by the Company
pursuant to Section 2.3(a).

 

“SEC”
shall mean the Securities and Exchange Commission, or any successor agency
having jurisdiction to enforce the Securities Act.

 

“Securities
Act” shall mean the Securities Act of 1933, as amended from time to time, and
the rules and regulations thereunder, or any successor statute.

 

“Shelf
Registration” shall have the meaning set forth in Section 2.1(a).

 

“Underwriters”
shall mean the underwriters, if any, of the offering being registered under the
Securities Act.

 

“Underwritten
Offering” shall mean a sale of securities of the Company to an Underwriter
or Underwriters for reoffering to the public.

 

“Withdrawn
Demand Registration” shall have the meaning set forth in Section 2.1(a).

 

“Withdrawn
Request” shall have the meaning set forth in Section 2.1(a).

 

2.                                       REGISTRATION
UNDER THE SECURITIES ACT.

 

2.1.                              Demand
Registration.

 

(a)                                  Right
to Demand Registration. (i)    
Subject to Section 2.1(c), at any time or from time to time the
Majority Investor Holders shall have the right to request in writing that the
Company register all or part of such Holders’ Registrable Securities (a “Request”)
(which Request shall specify the amount of Registrable Securities intended to
be disposed of by such Holders and the intended method of disposition thereof)
by filing with the SEC a Demand Registration Statement. As promptly as
practicable, but no later than 15 days after receipt of a Request, the Company
shall give written notice of such requested registration to all Holders of
Registrable Securities. Subject to Section 2.1(b), the Company shall
include (A) in a Demand Registration, the Registrable Securities intended
to be disposed of by the Initiating Holders and (B) in any Demand
Registration other than an Initial Public Offering, the Registrable Securities
intended to be disposed of by any other Holder which shall have made a written
request (which request shall specify the amount of Registrable Securities to be
registered and the intended method of disposition thereof) to the Company for inclusion
thereof in such registration within 15 days after the receipt of such written
notice from the Company. The Company shall, as expeditiously as possible
following a Request, use its best efforts to cause to be filed with the SEC a
Demand Registration Statement providing for the registration under the
Securities Act of the Registrable Securities which the Company has been so
requested to register

 

6

 

by all such Holders, to the
extent necessary to permit the disposition of such Registrable Securities so to
be registered in accordance with the intended methods of disposition thereof
specified in such Request or further requests (including, without limitation,
by means of a shelf registration pursuant to Rule 415 under the Securities
Act (a “Shelf Registration”) if so requested and if the Company is then
eligible to use such a registration). The Company shall use its best efforts to
have such Demand Registration Statement declared effective by the SEC as soon
as practicable thereafter and to keep such Demand Registration Statement
continuously effective for the period specified in Section 4.1(b).

 

(ii)                                  A
Request may be withdrawn prior to the filing of the Demand Registration
Statement by the Majority Investor Holders of the Registration (a “Withdrawn
Request”) and a Demand Registration Statement may be withdrawn prior
to the effectiveness thereof by the Majority Investor Holders of the
Registration (a “Withdrawn Demand Registration”), and such withdrawals
shall be treated as a Demand Registration which shall have been effected
pursuant to this Section 2.1, unless the Investor Holders of Registrable
Securities to be included in such Registration Statement reimburse the Company
for its reasonable out-of-pocket Registration Expenses relating to the
preparation and filing of such Demand Registration Statement (to the extent
actually incurred); provided, however, that if a Withdrawn
Request or Withdrawn Demand Registration is made (A) because of a material
adverse change in the business, financial condition or prospects of the
Company, or (B) because the sole or lead managing Underwriter advises that
the amount of Registrable Securities to be sold in such offering be reduced
pursuant to Section 2.1(b) by more than 15% of the Registrable
Securities requested to be included in such Registration Statement, or (C) because
of a postponement of such registration pursuant to Section 2.7, then such
withdrawal shall not be treated as a Demand Registration effected pursuant to this
Section 2.1 (and shall not be counted toward the number of Demand
Registrations to which such Investor Holders are entitled), and the Company
shall pay all Registration Expenses in connection therewith. Any Holder
requesting inclusion in a Demand Registration may, at any time prior to the
effective date of the Demand Registration Statement (and for any reason) revoke
such request by delivering written notice to the Company revoking such
requested inclusion.

 

(iii)                               The
registration rights granted pursuant to the provisions of this Section 2.1
shall be in addition to the registration rights granted pursuant to the other
provisions of Section 2 hereof.

 

(b)                                 Priority
in Demand Registrations. If a Demand Registration involves an Underwritten
Offering, and the sole or lead managing Underwriter, as the case may be,
of such Underwritten Offering shall advise the Company in writing (with a copy
to each Holder requesting registration) on or before the date five days prior
to the date then scheduled for such offering that, in its opinion, the amount
of Registrable Securities requested to be included in such Demand Registration
exceeds the number which can be sold in such offering within a price range
acceptable to the Majority Holders of the Registration (such writing to state
the basis of such opinion and the approximate number of Registrable Securities
which may be included in such offering), the Company shall include in such
Demand Registration, to the extent of the number which the Company is so
advised may be included in such offering without such effect, (A) first,
the Registrable Securities requested to be included in the Demand Registration
by Cerberus and, solely with respect to the Class A Common Shares acquired
pursuant to the

 

7

 

Lobeck Stock Purchase
Agreement, Lobeck, allocated pro  rata in proportion to the number
of Registrable Securities requested to be included in such Demand Registration
by each of them, and (ii) second, the Registrable Securities requested to
be included in the Demand Registration by the other Holders allocated pro
rata in proportion to the number of Registrable Securities requested to
be included in such Demand Registration by each of them. In the event the
Company shall not, by virtue of this Section 2.1(b), include in any Demand
Registration all of the Registrable Securities of any Holder requesting to be
included in such Demand Registration, such Holder may, upon written notice to
the Company given within five days of the time such Holder first is notified of
such matter, reduce the amount of Registrable Securities it desires to have
included in such Demand Registration, whereupon only the Registrable
Securities, if any, it desires to have included will be so included and the
Holders not so reducing shall be entitled to a corresponding increase in the
amount of Registrable Securities to be included in such Demand Registration.

 

(c)                                  Limitations
on Registrations. The rights of the Majority Investor Holders to request
Demand Registrations pursuant to Section 2.1(a) are subject to the
limitation that in no event shall the Company be obligated to pay Registration
Expenses of more than four Demand Registrations initiated by the Majority
Investor Holders; provided, however, (x) that such number shall
be increased to the extent the Company does not include in what would otherwise
be the final Demand Registration to which the Investor Holders are entitled and
for which the Company is required to pay Registration Expenses the number of
Registrable Securities requested to be registered by the Investor Holders by
reason of Section 2.1(b), and (y) the Investor Holders shall be deemed not
to have expended a Demand Registration right to the extent the Company
terminates a Shelf Registration pursuant to Section 2.3 prior to the time
that all Registrable Securities covered by such Shelf Registration have been
sold.

 

(d)                                 Underwriting;
Selection of Underwriters. Notwithstanding anything to the contrary
contained in Section 2.1(a), if the Initiating Holders holding a majority
of the Registrable Securities for which registration was requested in the
Request so elect, the offering of such Registrable Securities pursuant to such
Demand Registration shall be in the form of a firm commitment Underwritten
Offering; and such Initiating Holders may require that all Persons
(including other Holders) participating in such registration sell their
Registrable Securities to the Underwriters at the same price and on the same
terms of underwriting applicable to the Initiating Holders. If any Demand
Registration involves an Underwritten Offering, the sole or managing
Underwriters and any additional investment bankers and managers to be used in
connection with such registration shall be selected by the Initiating Holders
holding a majority of the Registrable Securities for which registration was
requested in the Request, subject to the approval of the Company (such approval
not to be unreasonably withheld).

 

(e)                                  Registration
of Other Securities. Whenever the Company shall effect a Demand
Registration, no securities other than the Registrable Securities shall be
covered by such registration unless the Majority Holders of the Registration
shall have consented in writing to the inclusion of such other securities.

 

(f)                                    Effective
Registration Statement; Suspension. A Demand Registration Statement shall
not be deemed to have become effective (and the related registration

 

8

 

will not be deemed to have been
effected) (i) unless it has been declared effective by the SEC and remains
effective in compliance with the provisions of the Securities Act with respect
to the disposition of all Registrable Securities covered by such Demand
Registration Statement for the time period specified in Section 4.1(b), (ii) if
the offering of any Registrable Securities pursuant to such Demand 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, (iii) if
the offering of Registrable Securities is not consummated for any reason,
including, without limitation, if the Underwriters of an Underwritten Offering
advise the Holders that the Registrable Securities cannot be sold at a net
price per share equal to or above the net price disclosed in the preliminary
prospectus, (iv) if, in the case of an Underwritten Offering, the
conditions to closing specified in an underwriting agreement to which the
Company is a party are not satisfied other than by the sole reason of any breach
or failure by the Holders of Registrable Securities or are not otherwise waived
or (v) if the Initiating Holders are cut back to fewer than fifty percent
(50%) of the Registrable Securities requested to be registered.

 

(g)                                 Other
Registrations. During the period (i) beginning on the date of a
Request and (ii) ending on the date that is 90 days after the date that a
Demand Registration Statement filed pursuant to such Request has been declared
effective by the SEC or, if the Majority Investor Holders of the Registration
shall withdraw such Request or such Demand Registration Statement, on the date
of such Withdrawn Request or such Withdrawn Registration Statement, the Company
shall not, without the consent of the Majority Investor Holders of the Registration,
file a registration statement pertaining to any other securities of the
Company.

 

(h)                                 Registration
Statement Form. Registrations under this Section 2.1 shall be on such
appropriate registration form of the SEC (i) as shall be selected by
the Initiating Holders holding a majority of the Registrable Securities for
which registration was requested in the Request, and (ii) which shall be
available for the sale of Registrable Securities in accordance with the
intended method or methods of disposition specified in the requests for
registration. The Company agrees to include in any such Registration Statement
all information which any selling Investor Holder, upon advice of counsel,
shall reasonably request.

 

2.2.                              Incidental
Registration.

 

(a)                                  Right
to Include Registrable Securities. (i)   If the Company at any time or from time to
time proposes to register any of its securities under the Securities Act (other
than in a registration on Form S-4 or S-8 or any successor form to
such forms and other than pursuant to Section 2.1 or 2.3) whether or not
pursuant to registration rights granted to other holders of its securities and
whether or not for sale for its own account, the Company shall deliver prompt
written notice (which notice shall be given at least 30 days prior to such
proposed registration) to all Holders of Registrable Securities of its
intention to undertake such registration, describing in reasonable detail the
proposed registration and distribution (including the anticipated range of the
proposed offering price, the class and number of securities proposed to be
registered and the distribution arrangements) and of such Holders’ right to
participate in such registration under this Section 2.2 as hereinafter
provided. Subject to the other provisions of this paragraph (a) and Section 2.2(b),
upon the written request of any Holder made within 20 days after the receipt of
such written notice (which request shall specify the amount of Registrable
Securities to be registered and the intended method of disposition thereof),

 

9

 

the Company shall effect the
registration under the Securities Act of all Registrable Securities requested
by Holders to be so registered (an “Incidental Registration”), to the
extent requisite to permit the disposition (in accordance with the intended
methods thereof as aforesaid) of the Registrable Securities so to be
registered, by inclusion of such Registrable Securities in the Registration
Statement which covers the securities which the Company proposes to register
and shall cause such Registration Statement to become and remain effective with
respect to such Registrable Securities in accordance with the registration
procedures set forth in Section 4. If an Incidental Registration involves an
Underwritten Offering, immediately upon notification to the Company from the
Underwriter of the price at which such securities are to be sold, the Company
shall so advise each participating Holder. The Holders requesting inclusion in
an Incidental Registration may, at any time prior to the effective date of the
Incidental Registration Statement (and for any reason), revoke such request by
delivering written notice to the Company revoking such requested inclusion.

 

(ii)                                  If
at any time after giving written notice of its intention to register any
securities and prior to the effective date of the Incidental Registration
Statement filed in connection with such registration, the Company shall
determine for any reason not to register or to delay registration of all of
such securities, the Company may, at its election, give written notice of such
determination to each Holder of Registrable Securities and, thereupon, (A) in
the case of a determination not to register, the Company shall be relieved of
its obligation to register any Registrable Securities in connection with such
registration (but not from its obligation to pay the Registration Expenses
incurred in connection therewith), without prejudice, however, to the rights of
Holders to cause such registration to be effected as a registration under Section 2.1
or 2.3(a), and (B) in the case of a determination to delay such
registration, the Company shall be permitted to delay the registration of such
Registrable Securities for the same period as the delay in registering such
other securities; provided, however, that if such delay shall
extend beyond 120 days from the date the Company received a request to include
Registrable Securities in such Incidental Registration, then the Company shall
again give all Holders the opportunity to participate therein and shall follow
the notification procedures set forth in the preceding paragraph. There is no
limitation on the number of such Incidental Registrations pursuant to this Section 2.2
which the Company is obligated to effect.

 

(iii)                         The
registration rights granted pursuant to the provisions of this Section 2.2
shall be in addition to the registration rights granted pursuant to the other
provisions of Section 2 hereof; provided, however, that, in
the event that the sole or lead managing Underwriter of an Initial Public
Offering shall advise the Company in writing that the inclusion of shares of
the Management Holders requested to be included in such registration would
materially interfere with the successful marketing of the securities being
offered, the registration rights granted pursuant to the provisions of this Section 2.2
shall not apply to the Management Holders in connection with such Initial
Public Offering.

 

(b)                                       Priority
in Incidental Registration. If an Incidental Registration involves an
Underwritten Offering (on a firm commitment basis), and the sole or the lead
managing Underwriter, as the case may be, of such Underwritten Offering
shall advise the Company in writing (with a copy to each Holder requesting
registration) on or before the date two days prior to the date then scheduled
for such offering that, in its opinion, the amount of securities (including
Registrable Securities) requested to be included in such registration exceeds

 

10

 

the amount which can be sold in
such offering without materially interfering with the successful marketing of
the securities being offered (such writing to state the basis of such opinion
and the approximate number of such securities which may be included in
such offering without such effect), the Company shall include in such
registration, to the extent of the number which the Company is so advised may be
included in such offering without such effect, (i) in the case of a
registration initiated by the Company, (A) first, the securities that the
Company proposes to register for its own account, (B) second, the
Registrable Securities requested to be included in such registration by
Cerberus and, solely with respect to the Class A Common Shares acquired
pursuant to the Lobeck Stock Purchase Agreement, Lobeck, allocated pro  rata
in proportion to the number of Registrable Securities requested to be included
in such registration by each of them, (C) third, the Registrable
Securities requested to be included in such registration by the Holders,
allocated pro  rata in proportion to the number of Registrable
Securities requested to be included in such registration by each of them, and (D) fourth,
other securities of the Company to be registered on behalf of any other Person,
allocated pro  rata in proportion to the number of Registrable
Securities requested to be included in such registration by each of them, and (ii) in
the case of a registration initiated by a Person other than the Company, (A) first,
the Registrable Securities requested to be included in such registration by any
Persons initiating such registration, allocated pro  rata in
proportion to the number of Registrable Securities requested to be included in
such registration by each of them, (B) second, the Registrable Securities
requested to be included in such registration by Cerberus and, solely with
respect to the Class A Common Shares acquired pursuant to the Lobeck Stock
Purchase Agreement, Lobeck, allocated pro  rata in proportion to
the number of Registrable Securities requested to be included in such
registration by each of them, (C) third, the Registrable Securities
requested to be included in such registration by the Holders, allocated pro
rata in proportion to the number of securities requested to be included
in such registration by each of them, (D) fourth, the securities that the
Company proposes to register for its own account and (D) fifth, other
securities of the Company to be registered on behalf of any other Person,
allocated pro  rata in proportion to the number of Registrable
Securities requested to be included in such registration by each of them, provided,
however, that in the event the Company will not, by virtue of this Section 2.2(b),
include in any such registration all of the Registrable Securities of any
Holder requested to be included in such registration, such Holder may, upon
written notice to the Company given within five days of the time such Holder
first is notified of such matter, reduce the amount of Registrable Securities
it desires to have included in such registration, whereupon only the
Registrable Securities, if any, it desires to have included will be so included
and the Holders not so reducing shall be entitled to a corresponding increase
in the amount of Registrable Securities to be included in such registration.

 

(c)                                  Selection
of Underwriters. If any Incidental Registration involves an Underwritten
Offering, the sole or managing Underwriter(s) and any additional investment
bankers and managers to be used in connection with such registration shall be
subject to the approval of the Majority Holders of the Registration (such
approval not to be unreasonably withheld).

 

2.3.                              S-3
Registration; Shelf Registration.

 

(a)                                  S-3
Registration. If at any time (i) any Majority Investor Holder requests
that the Company file a registration statement on Form S-3 or any
successor

 

11

 

form thereto for a public offering of all or any portion of the
shares of Registrable Securities held by such Majority Investor Holder, and (ii) the
Company is a registrant entitled to use Form S-3 or any successor form thereto
to register such securities, then the Company shall, as expeditiously as
possible following such Request, use its best efforts to register under the
Securities Act on Form S-3 or any successor form thereto, for public
sale in accordance with the intended methods of disposition specified in such
Request or any subsequent requests (including, without limitation, by means of
a Shelf Registration) the Registrable Securities specified in such Request and
any subsequent requests; provided that if such registration is for an
Underwritten Offering, the terms of Sections 2.1(b) and 2.1(d) shall
apply (and any reference to “Demand Registration” therein shall, for purposes
of this Section 2.3, instead be deemed a reference to “S-3 Registration”).
If the sole or lead managing Underwriter (if any) or the Majority Investor
Holders of the Registration shall advise the Company in writing that in its
opinion additional disclosure not required by Form S-3 is of material
importance to the success of the offering, then such Registration Statement
shall include such additional disclosure. Whenever the Company is required by
this Section 2.3 to use its best efforts to effect the registration of
Registrable Securities, each of the procedures and requirements of Section 2.1(a) and
2.1(e) (including but not limited to the requirements that the Company (A) notify
all Holders of Registrable Securities from whom such Request for registration
has not been received and provide them with the opportunity to participate in
the offering and (B) use its best efforts to have such S-3 Registration
Statement declared and remain effective for the time period specified herein)
shall apply to such registration (and any reference in such Sections 2.1(a) and
2.1(e) to “Demand Registration” shall, for purposes of this Section 2.3,
instead be deemed a reference to “S-3 Registration”). Notwithstanding anything
to the contrary contained herein, no Request may be made under this Section 2.3
within 90 days after the effective date of a Registration Statement filed by
the Company covering a firm commitment Underwritten Offering in which the
Holders of Registrable Securities shall have been entitled to join pursuant to
this Agreement and in which there shall have been effectively registered all
shares of Registrable Securities as to which registration shall have been
requested. Demands for S-3 Registrations will not be deemed to be Demand
Registrations and there is no limitation on the number of S-3 Registrations
that the Company is obligated to effect. The registration rights granted
pursuant to the provisions of this Section 2.3(a) shall be in
addition to the registration rights granted pursuant to the other provisions of
this Section 2.

 

(b)                                 Shelf
Registration. If a request made pursuant to Section 2.1 or 2.3(a) is
for a Shelf Registration, the Company shall use its best efforts to keep the
Shelf Registration continuously effective through the date on which all of the
Registrable Securities covered by such Shelf Registration may be sold
pursuant to Rule 144(k) under the Securities Act (or any successor
provision having similar effect); provided, however, that prior
to the termination of such Shelf Registration, the Company shall first furnish
to each Holder of Registrable Securities participating in such Shelf
Registration (i) an opinion, in form and substance satisfactory to
the Majority Holders of the Registration, of counsel for the Company
satisfactory to the Majority Holders of the Registration stating that such
Registrable Securities are freely saleable pursuant to Rule 144(k) under
the Securities Act (or any successor provision having similar effect) or (ii) a
“No-Action Letter” from the staff of the SEC stating that the SEC would not
recommend enforcement action if the Registrable Securities included in such
Shelf Registration were sold in a public sale other than pursuant to an
effective registration statement.

 

12

 

2.4.                              Expenses.
The Company shall pay all Registration Expenses in connection with any Demand
Registration, Incidental Registration, S-3 Registration or Shelf Registration,
whether or not such registration shall become effective and whether or not all
Registrable Securities originally requested to be included in such registration
are withdrawn or otherwise ultimately not included in such registration, except
as otherwise provided with respect to a Withdrawn Request and a Withdrawn
Demand Registration in Section 2.1(a).

 

2.5.                              Underwritten
Offerings.

 

(a)                                  Demand
Underwritten Offerings. If requested by the sole or lead managing
Underwriter for any Underwritten Offering effected pursuant to a Demand
Registration or an S-3 Registration, the Company shall enter into a customary
underwriting agreement with the Underwriters for such offering, such agreement
to be reasonably satisfactory in substance and form to the Majority
Investor Holders of the Registration and to contain such representations and
warranties by the Company and such other terms as are generally prevailing in
agreements of that type, including, without limitation, indemnification and
contribution to the effect and to the extent provided in Section 5.

 

(b)                                 Holders
of Registrable Securities to be Parties to Underwriting Agreement. The
Holders of Registrable Securities to be distributed by Underwriters in an
Underwritten Offering contemplated by Section 2 shall be parties to the
underwriting agreement between the Company and such Underwriters and may, at
such Holders’ option, require that any or all of the representations and
warranties by, and the other agreements on the part of, the Company to and
for the benefit of such Underwriters shall also be made to and for the benefit
of such Holders of Registrable Securities and that any or all of the conditions
precedent to the obligations of such Underwriters under such underwriting
agreement be conditions precedent to the obligations of such Holders of
Registrable Securities; provided, however, that the Company shall
not be required to make any representations or warranties with respect to
written information specifically provided by a selling Holder for inclusion in
the Registration Statement. No Holder shall be required to make any
representations or warranties to, or agreements with, the Company or the
Underwriters other than representations, warranties or agreements regarding
such Holder, such Holder’s Registrable Securities and such Holder’s intended
method of disposition.

 

(c)                                  Participation
in Underwritten Registration. Notwithstanding anything herein to the
contrary, no Person may participate in any underwritten registration
hereunder unless such Person (i) agrees to sell its securities on the same
terms and conditions provided in any underwritten arrangements approved by the
Persons entitled hereunder to approve such arrangement and (ii) accurately
completes and executes in a timely manner all questionnaires, powers of
attorney, indemnities, custody agreements, underwriting agreements and other
documents reasonably required under the terms of such underwriting
arrangements.

 

2.6.                              Conversions;
Exercises. Notwithstanding anything to the contrary herein, in order for
any Registrable Securities that are issuable upon the exercise of conversion
rights, options or warrants to be included in any registration pursuant to Section 2
hereof, the exercise of such conversion rights, options or warrants must be
effected no later than

 

13

 

immediately prior to the
closing of any sales under the Registration Statement pursuant to which such
Registrable Securities are to be sold.

 

2.7.                              Postponements.
The Company shall be entitled to postpone a Demand Registration and an S-3
Registration and to require the Holders of Registrable Securities to
discontinue the disposition of their securities covered by a Shelf Registration
during any Blackout Period (as defined below) (i) if the Board of
Directors of the Company determines in good faith that effecting such a
registration or continuing such disposition at such time would have a material
adverse effect upon a proposed sale of all (or substantially all) of the assets
of the Company or a merger, reorganization, recapitalization or similar current
transaction materially affecting the capital structure or equity ownership of
the Company, or (ii) if the Company is in possession of material
information which the Board of Directors of the Company determines in good
faith it is not in the best interests of the Company to disclose in a
registration statement at such time; provided, however, that the
Company may only delay a Demand Registration or an S-3 Registration
pursuant to this Section 2.7 by delivery of a Blackout Notice (as defined
below) within 30 days of delivery of the request for such Registration under Section 2.1
or Section 2.3, as applicable, and may delay a Demand Registration or
an S-3 Registration and require the Holders of Registrable Securities to
discontinue the disposition of their securities covered by a Shelf Registration
only for a reasonable period of time not to exceed 90 days (or such earlier
time as such transaction is consummated or no longer proposed or the material
information has been made public) (the “Blackout Period”). There shall
not be more than two Blackout Periods in any 12 month period. The Company shall
promptly notify the Holders in writing (a “Blackout  Notice”) of
any decision to postpone a Demand Registration or an S-3 Registration or to
discontinue sales of Registrable Securities covered by a Shelf Registration
pursuant to this Section 2.7 and shall include a general statement of the
reason for such postponement, an approximation of the anticipated delay and an
undertaking by the Company promptly to notify the Holders as soon as a Demand
Registration or an S-3 Registration may be effected or sales of
Registrable Securities covered by a Shelf Registration may resume. In
making any such determination to initiate or terminate a Blackout Period, the
Company shall not be required to consult with or obtain the consent of any
Holder, and any such determination shall be the Company’s sole responsibility.
Each Holder shall treat all notices received from the Company pursuant to this Section 2.7
in the strictest confidence and shall not disseminate such information. If the
Company shall postpone the filing of a Demand Registration Statement or an S-3
Registration Statement, the Majority Investor Holders of the Registration shall
have the right to withdraw the request for registration by giving written
notice to the Company within 30 days after receipt of the Blackout Notice. Such
withdrawn registration request shall not be treated as a Demand Registration
effected pursuant to Section 2.1 (and shall not be counted towards the
number of Demand Registrations effected by such Persons), and the Company shall
pay all Registration Expenses in connection therewith.

 

3.                                       HOLDBACK
ARRANGEMENTS.

 

3.1.                              Restrictions
on Sale by Holders of Registrable Securities. Each Holder of Registrable
Securities agrees, by acquisition of such Registrable Securities, if timely
requested in writing by the sole or lead managing Underwriter in an
Underwritten Offering of any Registrable Securities (other than in connection
with an S-3 Registration), not to make any short sale of, loan, grant any
option for the purchase of or effect any public sale or distribution,

 

14

 

including a sale pursuant to Rule 144
(or any successor provision having similar effect) under the Securities Act of
any Registrable Securities or any other equity security of the Company (or any
security convertible into or exchangeable or exercisable for any equity
security of the Company) (except as part of such underwritten
registration), during the five business days (as such term is used in
Regulation M under the Exchange Act) prior to, and during the time period
reasonably requested by the sole or lead managing Underwriter not to exceed 90
days or, in the case of an Initial Public Offering, 180 days beginning on the
effective date of the applicable Registration Statement, unless the sole or
lead managing Underwriter in such Underwritten Offering otherwise agrees; provided,
however, that to the extent the Company or the sole lead managing
Underwriter releases any other Person from the foregoing or equivalent
restrictions in whole or in part it shall, on the same day, notify the
Holders of such release and such parties shall automatically be released to the
same extent. Such restriction shall be subject to reasonable and customary
exceptions, including, without limitation, the right of a Holder to make
transfers to certain Affiliates and transfers related to Common Shares owned by
Holders as a result of open market purchases made following the closing of the
Initial Public Offering.

 

3.2.                                    Restrictions
on Sale by the Company and Others. The Company agrees that if timely
requested in writing by the sole or lead managing Underwriter in an
Underwritten Offering of any Registrable Securities (other than in connection
with an S-3 Registration), not to make any short sale of, loan, grant any
option for the purchase of or effect any public or private sale or distribution
of any of the Company’s equity securities (or any security convertible into or
exchangeable or exercisable for any of the Company’s equity securities) during
the five business days (as such term is used in Regulation M under the
Exchange Act) prior to, and during the time period reasonably requested by the
sole or lead managing Underwriter not to exceed 90 days or, in the case of an
Initial Public Offering, 180 days, beginning on the effective date of the
applicable Registration Statement (except as part of such underwritten
registration or pursuant to registrations on Forms S-4 or S-8 or any successor form to
such forms), unless the sole or lead Managing Underwriter in such Underwritten
Offering otherwise agrees. The Company will use its reasonable best efforts to
cause each director and officer of the Company and each holder of 5% or more of
the equity securities (or any security convertible into or exchangeable or
exercisable for any of its equity securities) of the Company to so agree.

 

3.3.                              Confidentiality
of Notices. Any Holder receiving any notice from the Company regarding the
Company’s plans to file a registration statement shall treat such notice
confidentially and shall not disclose such information to any person other than
as necessary to exercise its rights under this Agreement.

 

4.                                             REGISTRATION
PROCEDURES.

 

4.1.                              Obligations
of the Company. Whenever the Company is required to effect the registration
of Registrable Securities under the Securities Act pursuant to Section 2
of this Agreement, the Company shall, as expeditiously as possible:

 

(a)                                  prepare
and file with the SEC (promptly, and in any event within 60 days after receipt
of a request to register Registrable Securities) the requisite Registration
Statement to effect such registration, which Registration Statement shall
comply as

 

15

 

to form in all material
respects with the requirements of the applicable form and include all
financial statements required by the SEC to be filed therewith, and the Company
shall use its best efforts to cause such Registration Statement to become
effective (provided that the Company may discontinue any
registration of its securities that are not Registrable Securities, and, under
the circumstances specified in Section 2.2, its securities that are
Registrable Securities); provided, however, that before filing a
Registration Statement or Prospectus or any amendments or supplements thereto,
or comparable statements under securities or blue sky laws of any jurisdiction,
the Company shall (i) provide Holders’ Counsel and any other Inspector
with an adequate and appropriate opportunity to participate in the preparation
of such Registration Statement and each Prospectus included therein (and each
amendment or supplement thereto or comparable statement) to be filed with the
SEC, which documents shall be subject to the review and comment of Holders’
Counsel, and (ii) not file any such Registration Statement or Prospectus
(or amendment or supplement thereto or comparable statement) with the SEC to
which Holder’s Counsel, any selling Holder or any other Inspector shall have reasonably
objected on the grounds that such filing does not comply in all material
respects with the requirements of the Securities Act or of the rules or
regulations thereunder;

 

(b)                                 prepare
and file with the SEC such amendments and supplements to such Registration
Statement and the Prospectus used in connection therewith as may be
necessary (i) to keep such Registration Statement effective, and (ii) to
comply with the provisions of the Securities Act with respect to the
disposition of all Registrable Securities covered by such Registration
Statement, in each case until such time as all of such Registrable Securities
have been disposed of in accordance with the intended methods of disposition by
the seller(s) thereof set forth in such Registration Statement; provided,
that except with respect to any Shelf Registration, such period need not extend
beyond nine months after the effective date of the Registration Statement; and provided,
further, that with respect to any Shelf Registration, such period need
not extend beyond the time period provided in Section 2.3, and which
periods, in any event, shall terminate when all Registrable Securities covered
by such Registration Statement have been sold (but not before the expiration of
the 90 day period referred to in Section 4(3) of the Securities Act
and Rule 174 thereunder, if applicable);

 

(c)                                  furnish,
without charge, to each selling Holder of such Registrable Securities and each
Underwriter, if any, of the securities covered by such Registration Statement,
such number of copies of such Registration Statement, each amendment and
supplement thereto (in each case including all exhibits), and the Prospectus
included in such Registration Statement (including each preliminary Prospectus)
in conformity with the requirements of the Securities Act, and other documents,
as such selling Holder and Underwriter may reasonably request in order to
facilitate the public sale or other disposition of the Registrable Securities
owned by such selling Holder (the Company hereby consenting to the use in
accordance with applicable law of each such Registration Statement (or
amendment or post-effective amendment thereto) and each such Prospectus (or
preliminary prospectus or supplement thereto) by each such selling Holder of
Registrable Securities and the Underwriters, if any, in connection with the
offering and sale of the Registrable Securities covered by such Registration
Statement or Prospectus);

 

(d)                                 prior
to any public offering of Registrable Securities, use its best efforts to
register or qualify all Registrable Securities and other securities covered by
such

 

16

 

Registration Statement under
such other securities or blue sky laws of such jurisdictions as any selling
Holder of Registrable Securities covered by such Registration Statement or the
sole or lead managing Underwriter, if any, may reasonably request to
enable such selling Holder to consummate the disposition in such jurisdictions
of the Registrable Securities owned by such selling Holder and to continue such
registration or qualification in effect in each such jurisdiction for as long
as such Registration Statement remains in effect (including through new filings
or amendments or renewals), and do any and all other acts and things which may be
necessary or advisable to enable any such selling Holder to consummate the
disposition in such jurisdictions of the Registrable Securities owned by such
selling Holder; provided, however, that the Company shall not be
required to (i) qualify generally to do business in any jurisdiction where
it would not otherwise be required to qualify but for this Section 4.1(d),
(ii) subject itself to taxation in any such jurisdiction, or (iii) consent
to general service of process in any such jurisdiction;

 

(e)                                  use
its best efforts to obtain all other approvals, consents, exemptions or
authorizations from such governmental agencies or authorities as may be
necessary to enable the selling Holders of such Registrable Securities to
consummate the disposition of such Registrable Securities;

 

(f)                                    promptly
notify Holders’ Counsel, each Holder of Registrable Securities covered by such
Registration Statement and the sole or lead managing Underwriter, if any: (i) when
the Registration Statement, any pre-effective amendment, the Prospectus or any
prospectus supplement related thereto or post-effective amendment to the
Registration Statement has been filed and, with respect to the Registration
Statement or any post-effective amendment, when the same has become effective, (ii) of
any request by the SEC or any state securities or blue sky authority for
amendments or supplements to the Registration Statement or the Prospectus
related thereto or for additional information, (iii) of the issuance by
the SEC of any stop order suspending the effectiveness of the Registration
Statement or the initiation or threat of any proceedings for that purpose, (iv) of
the receipt by the Company of any notification with respect to the suspension
of the qualification of any Registrable Securities for sale under the
securities or blue sky laws of any jurisdiction or the initiation of any
proceeding for such purpose, (v) of the existence of any fact of which the
Company becomes aware or the happening of any event which results in (A) the
Registration Statement containing an untrue statement of a material fact or
omitting to state a material fact required to be stated therein or necessary to
make any statements therein not misleading or (B) the Prospectus included
in such Registration Statement containing an untrue statement of a material
fact or omitting to state a material fact required to be stated therein or
necessary to make any statements therein, in the light of the circumstances
under which they were made, not misleading, (vi) if at any time the
representations and warranties contemplated by Section 2.5(b) cease
to be true and correct in all material respects and (vii) of the Company’s
reasonable determination that a post-effective amendment to a Registration
Statement would be appropriate or that there exists circumstances not yet
disclosed to the public which make further sales under such Registration
Statement inadvisable pending such disclosure and post-effective amendment;
and, if the notification relates to an event described in any of the clauses (ii) through
(vii) of this Section 4.1(f), the Company shall promptly prepare a
supplement or post-effective amendment to such Registration Statement or
related Prospectus or any document incorporated therein by reference or file
any other required document so that (1) such Registration Statement shall
not contain any untrue

 

17

 

 

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 (2) as thereafter
delivered to the purchasers of the Registrable Securities being sold
thereunder, such Prospectus shall not include 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 in the light of the circumstances
under which they were made not misleading (and shall furnish to each such
Holder and each Underwriter, if any, a reasonable number of copies of such
Prospectus so supplemented or amended); and if the notification relates to an
event described in clause (iii) of this Section 4.1(f), the Company
shall take all reasonable action required to prevent the entry of such stop
order or to remove it if entered;

 

(g)                                 make
available for inspection by any selling Holder of Registrable Securities, any
sole or lead managing Underwriter participating in any disposition pursuant to
such Registration Statement, Holders’ Counsel and any attorney, accountant or
other agent retained by any such seller or any Underwriter (each, an “Inspector”
and, collectively, the “Inspectors”), all financial and other records,
pertinent corporate documents and properties of the Company and any
subsidiaries thereof as may be in existence at such time (collectively,
the “Records”) as shall be necessary, in the opinion of such Holders’
and such Underwriters’ respective counsel, to enable them to exercise their due
diligence responsibility and to conduct a reasonable investigation within the
meaning of the Securities Act, and cause the Company’s and any subsidiaries’
officers, directors and employees, and the independent public accountants of
the Company, to supply all information reasonably requested by any such
Inspectors in connection with such Registration Statement; provided, however,
that such inspection shall be limited to a reasonable period of time within
which to review such material and information;

 

(h)                                 obtain
an opinion from the Company’s counsel and a “cold comfort” letter from the
Company’s independent public accountants who have certified the Company’s
financial statements included or incorporated by reference in such Registration
Statement, in each case dated the effective date of such Registration Statement
(and if such registration involves an Underwritten Offering, dated the date of
the closing under the underwriting agreement), in customary form and
covering such matters as are customarily covered by such opinions and “cold
comfort” letters delivered to underwriters in underwritten public offerings,
which opinion and letter shall be reasonably satisfactory to the sole or lead
managing Underwriter, if any, and to the Majority Holders of the Registration,
and furnish to each Holder participating in the offering and to each
Underwriter, if any, a copy of such opinion and letter addressed to such Holder
(in the case of the opinion) and Underwriter (in the case of the opinion and
the “cold comfort” letter);

 

(i)                                     provide
a CUSIP number for all Registrable Securities and provide and cause to be
maintained a transfer agent and registrar for all such Registrable Securities
covered by such Registration Statement not later than the effectiveness of such
Registration Statement;

 

(j)                                     otherwise
use its best efforts to comply with all applicable rules and regulations
of the SEC and any other governmental agency or authority having jurisdiction
over the offering, and make available to its security holders, as soon as
reasonably practicable but no later than 90 days after the end of any 12-month
period, an earnings statement

 

18

 

(i) commencing at the end
of any month in which Registrable Securities are sold to Underwriters in an
Underwritten Offering and (ii) commencing with the first day of the
Company’s calendar month next succeeding each sale of Registrable Securities
after the effective date of a Registration Statement, which statement shall
cover such 12-month periods, in a manner which satisfies the provisions of Section 11(a) of
the Securities Act and Rule 158 thereunder;

 

(k)                                  if
so requested by the Majority Holders of the Registration, use its best efforts
to cause all such Registrable Securities to be listed (i) on each national
securities exchange on which the Company’s securities are then listed or (ii) if
securities of the Company are not at the time listed on any national securities
exchange (or if the listing of Registrable Securities is not permitted under
the rules of each national securities exchange on which the Company’s
securities are then listed), on a national securities exchange designated by
the Majority Holders of the Registration;

 

(l)                                     keep
each selling Holder of Registrable Securities advised in writing as to the
initiation and progress of any registration under Section 2 hereunder;

 

(m)                               enter
into and perform customary agreements (including, if applicable, an
underwriting agreement in customary form) and provide officers’ certificates
and other customary closing documents;

 

(n)                                 cooperate
with each selling Holder of Registrable Securities and each Underwriter
participating in the disposition of such Registrable Securities and their
respective counsel in connection with any filings required to be made with the
NASD and make reasonably available its employees and personnel and otherwise
provide reasonable assistance to the Underwriters (taking into account the
needs of the Company’s businesses and the requirements of the marketing
process) in the marketing of Registrable Securities in any Underwritten
Offering;

 

(o)                                 furnish
to each Holder participating in the offering and the sole or lead managing
Underwriter, if any, without charge, at least one manually-signed copy of the
Registration Statement and any post-effective amendments thereto, including
financial statements and schedules, all documents incorporated therein by
reference and all exhibits (including those deemed to be incorporated by
reference);

 

(p)                                 cooperate
with the selling Holders of Registrable Securities and the sole or lead
managing Underwriter, if any, to facilitate the timely preparation and delivery
of certificates not bearing any restrictive legends representing the
Registrable Securities to be sold, and cause such Registrable Securities to be
issued in such denominations and registered in such names in accordance with
the underwriting agreement prior to any sale of Registrable Securities to the
Underwriters or, if not an Underwritten Offering, in accordance with the
instructions of the selling Holders of Registrable Securities at least three
business days prior to any sale of Registrable Securities;

 

(q)                                 if
requested by the sole or lead managing Underwriter or any selling Holder of
Registrable Securities, immediately incorporate in a prospectus supplement or
post-effective amendment such information concerning such Holder of Registrable
Securities,

 

19

 

the Underwriters or the
intended method of distribution as the sole or lead managing Underwriter or the
selling Holder of Registrable Securities reasonably requests to be included
therein and as is appropriate in the reasonable judgment of the Company,
including, without limitation, information with respect to the number of shares
of the Registrable Securities being sold to the Underwriters, the purchase
price being paid therefor by such Underwriters and with respect to any other
terms of the Underwritten Offering of the Registrable Securities to be sold in
such offering; make all required filings of such Prospectus supplement or
post-effective amendment as soon as notified of the matters to be incorporated
in such Prospectus supplement or post-effective amendment; and supplement or
make amendments to any Registration Statement if requested by the sole or lead
managing Underwriter of such Registrable Securities;

 

(r)                                    cause
appropriate officers as are requested by a managing Underwriter to participate
in a “road show” or similar marketing effort being conducted by such
underwriter with respect to an Underwritten Offering; and

 

(s)                                  use
its best efforts to take all other steps necessary to expedite or facilitate
the registration and disposition of the Registrable Securities contemplated
hereby.

 

4.2.                              Seller
Information. (a)   The Company may require
each selling Holder of Registrable Securities as to which any registration is
being effected to furnish to the Company such information regarding such
Holder, such Holder’s Registrable Securities and such Holder’s intended method
of disposition as the Company may from time to time reasonably request in
writing; provided that such information shall be used only in connection
with such registration.

 

(b)                                 If
any Registration Statement or comparable statement under “blue sky” laws refers
to any Holder by name or otherwise as the Holder of any securities of the
Company, then such Holder shall have the right to require (i) the
insertion therein of language, in form and substance satisfactory to such
Holder and the Company, to the effect that the holding by such Holder of such
securities is not to be construed as a recommendation by such Holder of the
investment quality of the Company’s securities covered thereby and that such
holding does not imply that such Holder will assist in meeting any future
financial requirements of the Company, and (ii) in the event that such
reference to such Holder by name or otherwise is not in the judgment of the
Company, as advised by counsel, required by the Securities Act or any similar
federal statute or any state “blue sky” or securities law then in force, the
deletion of the reference to such Holder.

 

4.3.                              Notice
to Discontinue. Each Holder of Registrable Securities agrees by acquisition
of such Registrable Securities that, upon receipt of any notice from the
Company of the happening of any event of the kind described in Section 4.1(f)(ii) through
(vii), such Holder shall forthwith discontinue disposition of Registrable
Securities pursuant to the Registration Statement covering such Registrable
Securities until such Holder’s receipt of the copies of the supplemented or
amended prospectus contemplated by Section 4.1(f) and, if so directed
by the Company, such Holder shall deliver to the Company (at the Company’s
expense) all copies, other than permanent file copies, then in such Holder’s
possession of the Prospectus covering such Registrable Securities which is
current at the time of receipt of such notice. If the

 

20

 

Company shall give any such
notice, the Company shall extend the period during which such Registration
Statement shall be maintained effective pursuant to this Agreement (including,
without limitation, the period referred to in Section 4.1(b)) by the
number of days during the period from and including the date of the giving of
such notice pursuant to Section 4.1(f) to and including the date when
the Holder shall have received the copies of the supplemented or amended
prospectus contemplated by and meeting the requirements of Section 4.1(f).

 

5.                                       INDEMNIFICATION;
CONTRIBUTION.

 

5.1.                              Indemnification
by the Company. The Company agrees to indemnify and hold harmless, to the fullest
extent permitted by law, each Holder of Registrable Securities, its officers,
directors, partners, members, shareholders, employees, Affiliates and agents
(collectively, “Agents”) and each Person who controls such Holder
(within the meaning of the Securities Act) and its Agents with respect to each
registration which has been effected pursuant to this Agreement, against any
and all losses, claims, damages or liabilities, joint or several, actions or
proceedings (whether commenced or threatened) in respect thereof, and expenses
(as incurred or suffered and including, but not limited to, any and all
expenses incurred in investigating, preparing or defending any litigation or
proceeding, whether commenced or threatened, and the reasonable fees, disbursements
and other charges of legal counsel) in respect thereof (collectively, “Claims”),
insofar as such Claims arise out of or are based upon any untrue or alleged
untrue statement of a material fact contained in any Registration Statement or
Prospectus (including any preliminary, final or summary prospectus and any
amendment or supplement thereto) related to any such registration or any
omission or alleged omission to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, or any
violation by the Company of the Securities Act or any rule or regulation
thereunder applicable to the Company and relating to action or inaction
required of the Company in connection with any such registration, or any
qualification or compliance incident thereto; provided, however,
that the Company will not be liable in any such case to the extent that any
such Claims arise out of or are based upon any untrue statement or alleged
untrue statement of a material fact or omission or alleged omission of a
material fact so made in reliance upon and in conformity with written
information furnished to the Company in an instrument duly executed by such
Holder specifically stating that it was expressly for use therein. The Company
shall also indemnify any Underwriters of the Registrable Securities, their
Agents and each Person who controls any such Underwriter (within the meaning of
the Securities Act) to the same extent as provided above with respect to the
indemnification of the Holders of Registrable Securities. Such indemnity shall
remain in full force and effect regardless of any investigation made by or on
behalf of any Person who may be entitled to indemnification pursuant to
this Section 5 and shall survive the transfer of securities by such Holder
or Underwriter.

 

5.2.                              Indemnification
by Holders. Each Holder, if Registrable Securities held by it are included
in the securities as to which a registration is being effected, agrees to,
severally and not jointly, indemnify and hold harmless, to the fullest extent
permitted by law, the Company, its directors and officers, each other Person
who participates as an Underwriter in the offering or sale of such securities
and its Agents and each Person who controls the Company or any such Underwriter
(within the meaning of either Section 15 of the Securities Act or Section 20
of the Exchange Act) and its Agents against any and all Claims, insofar as such
Claims arise out of or are based upon any untrue or alleged untrue statement of
a material fact contained in

 

21

 

any Registration Statement or
Prospectus (including any preliminary, final or summary prospectus and any
amendment or supplement thereto) related to such registration, or any omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not
misleading, to the extent, but only to the extent, that such untrue statement
or alleged untrue statement or omission or alleged omission was made in
reliance upon and in conformity with written information furnished to the
Company in an instrument duly executed by such Holder specifically stating that
it was expressly for use therein; provided, however, that the
aggregate amount which any such Holder shall be required to pay pursuant to
this Section 5.2 shall in no event be greater than the amount of the net
proceeds received by such Holder upon the sale of the Registrable Securities
sold by such Holder pursuant to the Registration Statement giving rise to such
Claims less all amounts previously paid by such Holder with respect to any such
Claims. Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of such indemnified party and shall survive
the transfer of such securities by such Holder or Underwriter.

 

5.3.                              Conduct
of Indemnification Proceedings. Promptly after receipt by an indemnified
party of notice of any Claim or the commencement of any action or proceeding
involving a Claim under this Section 5, such indemnified party shall, if a
claim in respect thereof is to be made against the indemnifying party pursuant
to Section 5, (i) notify the indemnifying party in writing of the
Claim or the commencement of such action or proceeding; provided, that
the failure of any indemnified party to provide such notice shall not relieve
the indemnifying party of its obligations under this Section 5, except to
the extent the indemnifying party is materially and actually prejudiced thereby
and shall not relieve the indemnifying party from any liability which it may have
to any indemnified party otherwise than under this Section 5, and (ii) permit
such indemnifying party to assume the defense of such claim with counsel
reasonably satisfactory to the indemnified party; provided, however,
that any indemnified party shall have the right to employ separate counsel and
to participate in the defense of such claim, but the fees and expenses of such
counsel shall be at the expense of such indemnified party unless (A) the
indemnifying party has agreed in writing to pay such fees and expenses, (B) the
indemnifying party shall have failed to assume the defense of such claim and
employ counsel reasonably satisfactory to such indemnified party within 10 days
after receiving notice from such indemnified party that the indemnified party
believes it has failed to do so, (C) in the reasonable judgment of any
such indemnified party, based upon advice of counsel, a conflict of interest may exist
between such indemnified party and the indemnifying party with respect to such
claims (in which case, if the indemnified party notifies the indemnifying party
in writing that it elects to employ separate counsel at the expense of the
indemnifying party, the indemnifying party shall not have the right to assume
the defense of such claim on behalf of such indemnified party) or (D) such
indemnified party is a defendant in an action or proceeding which is also
brought against the indemnifying party and reasonably shall have concluded that
there may be one or more legal defenses available to such indemnified
party which are not available to the indemnifying party. No indemnifying party
shall be liable for any settlement of any such claim or action effected without
its written consent, which consent shall not be unreasonably withheld. In
addition, without the consent of the indemnified party (which consent shall not
be unreasonably withheld), no indemnifying party shall be permitted to consent
to entry of any judgment with respect to, or to effect the settlement or
compromise of any pending or threatened action or claim in respect of which
indemnification or contribution may be sought hereunder (whether or not
the indemnified party is an actual or potential party to such action or claim),

 

22

 

unless such settlement,
compromise or judgment (1) includes an unconditional release of the
indemnified party from all liability arising out of such action or claim, (2) 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, and (3) does not
provide for any action on the part of any party other than the payment of
money damages which is to be paid in full by the indemnifying party.

 

5.4.                              Contribution.
If the indemnification provided for in Section 5.1 or 5.2 from the
indemnifying party for any reason is unavailable to (other than by reason of
exceptions provided therein), or is insufficient to hold harmless, an
indemnified party hereunder in respect of any Claim, then the indemnifying
party, in lieu of indemnifying such indemnified party, shall contribute to the
amount paid or payable by such indemnified party as a result of such Claim in
such proportion as is appropriate to reflect the relative fault of the
indemnifying party, on the one hand, and the indemnified party, on the other
hand, in connection with the actions which resulted in such Claim, as well as
any other relevant equitable considerations. The relative fault of such
indemnifying party and indemnified party shall be determined by reference to,
among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact, has been made by, or relates to information supplied by,
such indemnifying party or indemnified party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
action. If, however, the foregoing allocation is not permitted by applicable
law, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party in such proportion as is appropriate to
reflect not only such relative faults but also the relative benefits of the
indemnifying party and the indemnified party as well as any other relevant
equitable considerations.

 

The parties hereto agree that it would not be
just and equitable if contribution pursuant to this Section 5.4 were
determined by pro  rata allocation or by any other method of
allocation which does not take into account the equitable considerations
referred to in the immediately preceding paragraph. The amount paid or payable
by a party as a result of any Claim referred to in the immediately preceding paragraph
shall be deemed to include, subject to the limitations set forth in Section 5.3,
any legal or other fees, costs or expenses reasonably incurred by such party in
connection with any investigation or proceeding. Notwithstanding anything in
this Section 5.4 to the contrary, no indemnifying party (other than the
Company) shall be required pursuant to this Section 5.4 to contribute any
amount in excess of the net proceeds received by such indemnifying party from
the sale of the Registrable Securities sold by such indemnifying party pursuant
to the Registration Statement giving rise to such Claims, less all amounts
previously paid by such indemnifying party with respect to such Claims. No
person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation.

 

5.5.                              Other
Indemnification. Indemnification similar to that specified in the preceding
Sections 5.1 and 5.2 (with appropriate modifications) shall be given by the
Company and each selling Holder of Registrable Securities with respect to any
required registration or other qualification of securities under any Federal or
state law or regulation of any governmental authority, other than the
Securities Act. The indemnity agreements contained

 

23

 

herein shall be in addition to
any other rights to indemnification or contribution which any indemnified party
may have pursuant to law or contract.

 

5.6.                              Indemnification
Payments. The indemnification and contribution required by this Section 5
shall be made by periodic payments of the amount thereof during the course of
any investigation or defense, as and when bills are received or any expense,
loss, damage or liability is incurred.

 

6.                                       GENERAL.

 

6.1.                              Adjustments
Affecting Registrable Securities. The Company agrees that it shall not
effect or permit to occur any combination or subdivision of shares which would
adversely affect the ability of the Holder of any Registrable Securities to
include such Registrable Securities in any registration contemplated by this
Agreement or the marketability of such Registrable Securities in any such
registration.

 

6.2.                              Registration
Rights to Others. The Company has not previously entered into an agreement
with respect to its securities granting any registration rights to any Person
and agrees that from and after the date of this Agreement, it shall not,
without the prior written consent of the Holders of at least 87% of the
Registrable Securities then outstanding, enter into any agreement (or amendment
or waiver of the provisions of any agreement) with any holder or prospective
holder of any securities of the Company that would grant such holder registration
rights that are more favorable or senior to those granted to the Investor
Holders. If  the Company shall at any
time hereafter provide to any holder of any securities of the Company rights
with respect to the registration of such securities under the Securities Act, (i) such
rights shall not be in conflict with or adversely affect any of the rights
provided in this Agreement to the Investor Holders and (ii) if such rights
are provided on terms or conditions more favorable to such holder than the terms
and conditions provided in this Agreement, the Company shall provide (by way of
amendment to this Agreement or otherwise) such more favorable terms or
conditions to the Investor Holders.

 

6.3.                              Availability
of Information; Rule 144; Rule 144A; Other Exemptions. So long as
the Company shall not have filed a registration statement pursuant to Section 12
of the Exchange Act or a registration statement pursuant to the requirements of
the Securities Act, the Company shall, at any time and from time to time, upon
the request of any Holder of Registrable Securities and upon the request of any
Person designated by such Holder as a prospective purchaser of any Registrable
Securities, furnish in writing to such Holder or such prospective purchaser, as
the case may be, a statement as of a date not earlier than 12 months prior
to the date of such request of the nature of the business of the Company and
the products and services it offers and copies of the Company’s most recent
balance sheet and profit and loss and retained earnings statements, together
with similar financial statements for such part of the two preceding
fiscal years as the Company shall have been in operation, all such financial
statements to be audited to the extent audited statements are reasonably available,
provided that, in any event the most recent financial statements so
furnished shall include a balance sheet as of a date less than 16 months prior
to the date of such request, statements of profit and loss and retained
earnings for the 12 months preceding the date of such balance sheet, and, if
such balance

 

24

 

sheet is not as of a date less
than 6 months prior to the date of such request, additional statements of
profit and loss and retained earnings for the period from the date of such
balance sheet to a date less than 6 months prior to the date of such request.
If the Company shall have filed a registration statement pursuant to the
requirements of Section 12 of the Exchange Act or a registration statement
pursuant to the requirements of the Securities Act, the Company covenants that
it shall timely file any reports required to be filed by it under the
Securities Act or the Exchange Act (including, but not limited to, the reports
under Sections 13 and 15(d) of the Exchange Act referred to in
subparagraph (c) of Rule 144 under the Securities Act), and that it
shall take such further action as any Holder of Registrable Securities may reasonably
request, all to the extent required from time to time to enable such Holder to
sell Registrable Securities without registration under the Securities Act
within the limitation of the exemptions provided by (i) Rule 144 and Rule 144A
under the Securities Act, as such rules may be amended from time to
time, or (ii) any other rule or regulation now existing or hereafter
adopted by the SEC. Upon the request of any Holder of Registrable Securities,
the Company shall deliver to such Holder a written statement as to whether it
has complied with such requirements.

 

6.4.                              Amendments
and Waivers. The provisions of this Agreement may not be amended,
modified, supplemented or terminated, and waivers or consents to departures
from the provisions hereof may not be given, without the written consent
of the Company, and the Holders of a majority of the Registrable Securities; provided,
however, that no such amendment, modification, supplement, waiver or
consent to departure shall reduce the aforesaid percentage of Registrable
Securities required under this Section 6.4 without the written consent of
all of the Holders of Registrable Securities; and provided, further,
that nothing herein shall prohibit any amendment, modification, supplement,
termination, waiver or consent to departure the effect of which is limited only
to those Holders who have agreed to such amendment, modification, supplement,
termination, waiver or consent to departure.

 

6.5.                              Notices.
All notices and other communications provided for or permitted hereunder to any
party shall deemed to be sufficient if contained in a written instrument and
shall be deemed to have been duly given when delivered in person, by telecopy,
by facsimile, by nationally-recognized overnight courier, or by first class registered
or certified mail, postage prepaid, addressed to such party at the address set
forth below or such other address as may hereafter be designated in
writing by the addressee as follows:

 

(i)                                     If to the Company,
to:

 

Vanguard Car Rental Holdings LLC
c/o Cerberus
Capital Management, L.P.

299 Park Avenue

New York, New York  10171

Attention:  Lenard Tessler

Fax No.:  (212) 755-3009

 

 

25

 

With a copy to:

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York  10022

Attn:  Stuart D. Freedman, Esq. 

Fax No.:  (212) 593-5955

 

(ii)                            If to Cerberus:

 

c/o Cerberus Capital Management, L.P.

299 Park Avenue

New York, New York  10171

Attention:  Lenard Tessler

Fax No.:  (212) 755-3009

 

With a copy to:

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York  10022

Attn:  Stuart D. Freedman, Esq. 

Fax No.:  (212) 593-5955

 

(iii)                               If to the Management
Holders, to the address of such Management Holders set forth in the records of
the Company.

 

(iv)                              If to any subsequent
Holder, to the address of such Person set forth in the records of the Company.

 

All such
notices, requests, consents and other communications shall be deemed to have
been delivered (a) in the case of personal delivery or delivery by
telecopy or confirmed facsimile, on the date of such delivery, (b) in the
case of nationally-recognized overnight courier, on the next business day and (c) in
the case of mailing, on the third business day following such mailing if sent
by certified mail, return receipt requested.

 

6.6.                              Successors
and Assigns. This Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective heirs, successors and permitted
assigns (including any permitted transferee of Registrable Securities). Any
Holder may assign to any transferee of its Registrable Securities (other
than a transferee that acquires such Registrable Securities in a registered
public offering or pursuant to a sale under Rule 144 of the Securities Act
(or any successor rule)), its rights and obligations under this Agreement; provided,
however, if any transferee shall take and hold Registrable Securities,
such transferee shall promptly notify the Company and by taking and holding
such Registrable Securities such transferee shall automatically be entitled to
receive the benefits of and be conclusively deemed to have agreed to be bound
by and to perform all of the terms and provisions of this Agreement as if
it were a party hereto (and shall, for all purposes, be deemed a Holder under
this Agreement). If the Company shall so request, any heir, successor or assign
(including any transferee) shall agree in writing to acquire and hold the
Registrable Securities subject to all of the terms hereof. For purposes of

 

26

 

this Agreement, “successor” for
any entity other than a natural person shall mean a successor to such entity as
a result of such entity’s merger, consolidation, sale of substantially all of
its assets, or similar transaction. Except as provided above or otherwise
permitted by this Agreement, neither this Agreement nor any right, remedy,
obligation or liability arising hereunder or by reason hereof shall be
assignable by any Holder or by the Company without the consent of the other
parties hereto.

 

6.7.                              Counterparts.
This Agreement may be executed in two or more counterparts, each of which,
when so executed and delivered, shall be deemed to be an original, but all of
which counterparts, taken together, shall constitute one and the same
instrument.

 

6.8.                              Descriptive
Headings, Etc.  The headings in this
Agreement are for convenience of reference only and shall not limit or
otherwise affect the meaning of terms contained herein. Unless the context of
this Agreement otherwise requires:  (i) words
of any gender shall be deemed to include each other gender; (ii) words using
the singular or plural number shall also include the plural or singular number,
respectively; (iii) the words “hereof”, “herein” and “hereunder” and words
of similar import when used in this Agreement shall refer to this Agreement as
a whole and not to any particular provision of this Agreement, and Section and
paragraph references are to the Sections and paragraphs of this Agreement
unless otherwise specified; (iv) the word “including” and words of similar
import when used in this Agreement shall mean “including, without limitation,”
unless otherwise specified; (v) “or” is not exclusive; and (vi) provisions
apply to successive events and transactions.

 

6.9.                              Severability.
In the event that any one or more of the provisions, paragraphs, words,
clauses, phrases or sentences contained herein, or the application thereof in
any circumstances, is held invalid, illegal or unenforceable in any respect for
any reason, the validity, legality and enforceability of any such provision,
paragraph, word, clause, phrase or sentence in every other respect and of the
other remaining provisions, paragraphs, words, clauses, phrases or sentences
hereof shall not be in any way impaired, it being intended that all rights,
powers and privileges of the parties hereto shall be enforceable to the fullest
extent permitted by law.

 

6.10.                        Governing Law. This Agreement will be governed by
and construed in accordance with the domestic laws of the State of Delaware,
without giving effect to any choice of law or conflicting provision or rule (whether
of the State of Delaware, or any other jurisdiction) that would cause the laws
of any jurisdiction other than the State of Delaware to be applied. In
furtherance of the foregoing, the internal laws of the State of Delaware will
control the interpretation and construction of this Agreement, even if under
such jurisdiction’s choice of law or conflict of law analysis, the substantive
law of some other jurisdiction would ordinarily apply.

 

6.11.                        Consent
to Jurisdiction. Each of the parties hereto hereby irrevocably and
unconditionally agrees that any action, suit or proceeding, at law or equity,
arising out of or relating to this Agreement or any agreements or transactions
contemplated hereby shall only be brought in any federal court of the Southern
District of New York or any state court located in New York County, State of
New York, and hereby irrevocably and unconditionally expressly submits to the
personal jurisdiction and venue of such courts for the

 

27

 

purposes thereof and hereby
irrevocably and unconditionally waives (by way of motion, as a defense or
otherwise) any and all jurisdictional, venue and convenience objections or
defenses that such party may have in such action, suit or proceeding. Each
party hereby irrevocably and unconditionally consents to the service of process
of any of the aforementioned courts. Nothing herein contained shall be deemed
to affect the right of any party to serve process in any manner permitted by
law or commence legal proceedings or otherwise proceed against any other party
in any other jurisdiction to enforce judgments obtained in any action, suit or
proceeding brought pursuant to this Section 6.11.

 

6.12.                        Waiver
of Jury Trial. THE COMPANY AND EACH OF THE HOLDERS HEREBY WAIVE, TO THE
EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY LITIGATION IN ANY
COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF THIS AGREEMENT OR
THE VALIDITY, INTERPRETATION OR ENFORCEMENT HEREOF. THE COMPANY AND EACH OF THE
HOLDERS AGREE THAT THIS SECTION IS A SPECIFIC AND MATERIAL ASPECT OF THIS
AGREEMENT AND WOULD NOT ENTER INTO THIS AGREEMENT IF THIS SECTION WERE NOT
PART OF THIS AGREEMENT.

 

6.13.                        Remedies;
Specific Performance. The parties hereto acknowledge that money damages
would not be an adequate remedy at law if any party fails to perform in
any material respect any of its obligations hereunder and accordingly agree
that each party, in addition to any other remedy to which it may be
entitled at law or in equity, shall be entitled to seek to compel specific
performance of the obligations of any other party under this Agreement, without
the posting of any bond, in accordance with the terms and conditions of this
Agreement in any court of the United States or any State thereof having
jurisdiction, and if any action should be brought in equity to enforce any of
the provisions of this Agreement, none of the parties hereto shall raise the
defense that there is an adequate remedy at law. No remedy shall be exclusive
of any other remedy. All available remedies shall be cumulative.

 

6.14.                        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, representations,
warranties, covenants or undertakings relating to such subject matter, other
than those set forth or referred to herein. This Agreement supersedes all prior
agreements and understandings between the Company and the other parties to this
Agreement with respect to such subject matter.

 

6.15.                        Nominees
for Beneficial Owners. In the event that any Registrable Securities are
held by a nominee for the beneficial owner thereof, the beneficial owner
thereof may, at its election in writing delivered to the Company, be treated as
the holder of such Registrable Securities for purposes of any request or other
action by any holder or holders of Registrable Securities pursuant to this
Agreement or any determination of any number or percentage of shares of
Registrable Securities held by any holder or holders of Registrable Securities
contemplated by this Agreement. If the beneficial owner of any Registrable
Securities so elects, the Company may require assurances reasonably
satisfactory to it of such owner’s beneficial ownership of such Registrable
Securities.

 

28

 

6.16.                        Further
Assurances. Each party hereto shall do and perform or cause to be done
and performed all such further acts and things and shall execute and deliver
all such other agreements, certificates, instruments and documents as any other
party hereto reasonably may request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

 

6.17.                        No
Inconsistent Agreements. The Company will not hereafter enter into any
agreement which is inconsistent with the rights granted to the Holders in this
Agreement.

 

6.18.                        Construction.
The Company and the Initial Holders acknowledge that each of them has had the
benefit of legal counsel of its own choice and has been afforded an opportunity
to review this Agreement with its legal counsel and that this Agreement shall
be construed as if jointly drafted by the Company and the Initial Holders.

 

[Remainder of this page intentionally
left blank. Signature page follows.]

 

29

 

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

	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  VANGUARD CAR RENTAL HOLDINGS LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WORLDWIDE:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WORLDWIDE EXCELLERATED LEASING LTD.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  INVESTORS:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CERBERUS
  VANGUARD INVESTOR L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  CERBERUS VANGUARD INVESTOR GP LLC,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Lenard Tessler

  
	
   

  	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1132 INVESTMENT CO.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: William E. Lobeck, Jr.

  
	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE ELIZABETH CATHERINE FRAME DYNASTY

  
	
   

  	
  TRUST

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  

 

30

 

	
   

  	
  THE MARGARET LOBECK PELLIGRINI DYNASTY

  
	
   

  	
  TRUST

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANAGEMENT HOLDERS:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  William E. Lobeck, Jr.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Barry Benoit

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Tyler Best

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Thomas C. Kennedy

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  John Leigh

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  James H. Letang

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Jeffry Parell

  
					

 

31

 

	
   

  	
   

  	
   

  
	
   

  	
  Ian Wardle

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Charles Gurassa

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Timothy F. Price

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  James J. Pike

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  James N. Chapman

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Robert B. Allardice III

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Stephen R. Kerrigan

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Omar Marchi

  

 

32

 

	
   

  	
   

  	
   

  
	
   

  	
  Dan Lynch

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Jerry Kennell

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Paula Kuykendall

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Thomas J. Santorelli

  

 

33

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