Document:

6.0% Convertible Series A Preferred Stock Purchase Agreement

 Exhibit 10.1 

EXECUTION COPY 
  

 
 6.0% CONVERTIBLE SERIES A
PREFERRED STOCK PURCHASE AGREEMENT 
 dated as of 

May 18, 2010 

between 

Kennedy-Wilson Holdings, Inc. 

and 

Fairfax Financial Holdings Limited 
  

 

 TABLE OF CONTENTS 

 

							
	 	  	 	    	 	  	Page
	ARTICLE 1	  	 DEFINITIONS AND INTERPRETATION
	  	1
	 1.1
	  	Defined Terms	  	1
	 1.2
	  	Interpretation	  	2
			
	ARTICLE 2	  	SUMMARY OF TRANSACTIONS	  	3
	 2.1
	  	Sale and Purchase of Shares	  	3
	 2.2
	  	Purchase Price	  	3
	 2.3
	  	Underlying Securities	  	4
			
	ARTICLE 3	  	CLOSING AND CLOSING CONDITIONS	  	4
	 3.1
	  	Time and Place of the Closing	  	4
	 3.2
	  	Actions at the Closing	  	4
		  	3.2.1	    	Delivery of Initial Shares	  	4
		  	3.2.2	    	Payment of Initial Purchase Price	  	4
		  	3.2.3	    	Opinions	  	4
		  	3.2.4	    	Officers Certificate	  	4
		  	3.2.5	    	NYSE Supplemental Listing of Underlying Securities	  	5
		  	3.2.6	    	Filing of Certificate of Designation	  	5
		  	3.2.7	    	Registration Rights Agreement	  	5
		  	3.2.8	    	Additional Actions	  	5
	 3.3
	  	Conditions Precedent to Obligations of the Purchaser	  	5
		  	3.3.1	    	Performance of Closing Actions	  	6
		  	3.3.2	    	No Material Adverse Change	  	6
		  	3.3.3	    	NYSE Supplemental Listing of Underlying Securities	  	6
		  	3.3.4	    	Filing of Certificate of Designation	  	6
		  	3.3.5	    	Opinions of Counsel	  	6
		  	3.3.6	    	Officer’s Certificates	  	6
	 3.4
	  	Conditions Precedent to Obligations of the Company	  	6
		  	3.4.1	    	Securities Laws	  	6
		  	3.4.2	    	Performance of Closing Actions	  	7
		  	3.4.3	    	Withholding Certificates	  	7
	 3.5
	  	Time and Place of the Second Closing	  	7
	 3.6
	  	Actions at the Second Closing	  	7
		  	3.6.1	    	Delivery of Remaining Shares	  	7
		  	3.6.2	    	Payment of Remaining Purchase Price	  	7
		  	3.6.3	    	Opinions	  	7
		  	3.6.4	    	Officers Certificate	  	8
		  	3.6.5	    	Additional Actions	  	8
	 3.7
	  	Conditions Precedent to Obligations of the Purchaser	  	8
		  	3.7.1	    	Performance of Second Closing Actions	  	8
		  	3.7.2	    	No Material Adverse Change	  	8
		  	3.7.3	    	Opinions of Counsel	  	9

  

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		  	3.7.4	    	Officer’s Certificates	  	9
	 3.8
	  	Conditions Precedent to Obligations of the Company	  	9
		  	3.8.1	    	Performance of Closing Actions	  	9
			
	ARTICLE 4	  	REPRESENTATIONS AND WARRANTIES OF THE COMPANY	  	9
	 4.1
	  	No Registration Required	  	9
	 4.2
	  	No Integration of Offerings or General Solicitation	  	9
	 4.3
	  	Public Filings	  	10
	 4.4
	  	The Purchase Agreement	  	10
	 4.5
	  	The Shares	  	10
	 4.6
	  	Outstanding Capital Stock	  	10
	 4.7
	  	The Underlying Securities	  	10
	 4.8
	  	The Certificate of Designation	  	10
	 4.9
	  	No Convertible Stock	  	10
	 4.10
	  	No Material Adverse Change	  	10
	 4.11
	  	Independent Accountants	  	11
	 4.12
	  	Preparation of the Financial Statements	  	11
	 4.13
	  	Incorporation and Good Standing of the Company	  	11
	 4.14
	  	Non-Contravention of Existing Instruments; No Further Authorizations or Approvals Required	  	11
	 4.15
	  	No Material Actions or Proceedings	  	12
	 4.16
	  	Labor Matters	  	13
	 4.17
	  	Intellectual Property Rights	  	13
	 4.18
	  	All Necessary Permits, etc.	  	13
	 4.19
	  	Title to Properties	  	13
	 4.20
	  	Condition of Properties	  	14
	 4.21
	  	Tax Law Compliance	  	14
	 4.22
	  	Company Not an “Investment Company”	  	14
	 4.23
	  	Insurance	  	14
	 4.24
	  	Compliance with Sarbanes-Oxley	  	14
	 4.25
	  	Internal Controls	  	14
	 4.26
	  	Disclosure Controls and Procedures	  	15
	 4.27
	  	Compliance with Environmental Laws	  	15
	 4.28
	  	Related Party Transactions	  	16
	 4.29
	  	Solvency	  	16
	 4.30
	  	Brokers	  	16
	 4.31
	  	Registration Rights Agreement	  	16
	 4.32
	  	Company Data	  	17
			
	ARTICLE 5	  	REPRESENTATIONS AND WARRANTIES OF PURCHASER	  	17
	 5.1
	  	Representations and Warranties of Purchaser	  	17
		  	5.1.1	    	Organization	  	17
		  	5.1.2	    	Authority and Power	  	17
		  	5.1.3	    	Valid and Binding Obligations	  	17
		  	5.1.4	    	Securities Law Matters	  	18
		  	5.1.5	    	Legends	  	18
		  	5.1.6	    	Restricted Securities	  	19

  

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		  	5.1.7	    	No Public Market	  	19
		  	5.1.8	    	Access to Information	  	19
		  	5.1.9	    	Reliance Upon Purchaser’s Representations	  	19
		  	5.1.10	    	Foreign Purchasers	  	19
		  	5.1.11	    	Exculpation	  	20
		  	5.1.12	    	Certain ERISA Matters	  	20
	 5.2
	  	No Further Representations	  	20
			
	ARTICLE 6	  	ADDITIONAL COVENANTS	  	20
	 6.1
	  	No Integration	  	20
	 6.2
	  	Underlying Securities	  	20
	 6.3
	  	Transfer Agent	  	20
	 6.4
	  	Available Shares of Common Stock	  	20
	 6.5
	  	No Restricted Resales	  	21
	 6.6
	  	Regulatory Filings	  	21
	 6.7
	  	Rating Agency	  	21
	 6.8
	  	DTC	  	21
	 6.09
	  	Stockholder Approval	  	21
			
	ARTICLE 7	  	TERMINATION	  	22
	 7.1
	  	Termination	  	22
			
	ARTICLE 8	  	MISCELLANEOUS	  	22
	 8.1
	  	Notices	  	22
	 8.2
	  	Entire Agreement; Amendments	  	23
	 8.3
	  	Successors and Assigns	  	24
	 8.4
	  	Governing Law	  	24
	 8.5
	  	Expenses, Etc.	  	24
	 8.6
	  	Captions	  	24
	 8.7
	  	Severability	  	24
	 8.8
	  	Counterparts	  	24
	 8.9
	  	No Waiver	  	24

  

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 6.0% CONVERTIBLE SERIES A PREFERRED STOCK PURCHASE AGREEMENT 

THIS 6.0% CONVERTIBLE SERIES A PREFERRED STOCK PURCHASE AGREEMENT (this “Agreement”), dated as of May 18, 2010, is
entered into by and between Kennedy-Wilson Holdings, Inc., a Delaware corporation (the “Company”), and Fairfax Financial Holdings Limited, a corporation organized under the laws of Canada (the “Purchaser”) (the
Company and the Purchaser being sometimes hereinafter referred to individually as a “Party” and collectively as the “Parties”), with reference to the following: 

RECITALS 

The Company desires to sell, and the Purchaser desires to purchase, up to 100,000 shares of the Company’s Series A Preferred Stock,
par value $0.0001 per share and liquidation preference $1,000 per share (the “Shares”), which shall have the rights, powers and preferences set forth in the Certificate of Designation (as defined below), upon the terms and subject
to the conditions set forth in this Agreement and subject to the exercise by Guardian (as defined below) of the Guardian Preemptive Right (as defined below). 

NOW, THEREFORE, in consideration of the mutual covenants and agreements in this Agreement and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the Parties, intending to be legally bound, agree as follows: 

ARTICLE 1 

DEFINITIONS AND INTERPRETATION 

1.1 Defined Terms. Capitalized terms used in this Agreement (including in the Preamble and the Recitals hereto) without
other definition shall have the following meanings, unless the context clearly requires otherwise: 

“Affiliate” has the meaning ascribed to such term in Rule 501 under the Securities Act. 

“Agreement” means this 6.0% Convertible Series A Preferred Stock Purchase Agreement, including all
Exhibits and other attachments hereto. 
 “Business Day” means any day other than a Saturday,
Sunday or other day on which commercial banks in New York, New York are required or authorized by law to close. 

“Certificate of Designation” means the Certificate of Designation of Series A Preferred Stock in the form
set forth as Exhibit A to this Agreement. 
 “Code” means the Internal Revenue Code
of 1986, as amended. 
 “Company” has the meaning given in the Preamble to this Agreement.

  

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 “ERISA” means the Employee Retirement Income Security Act
of 1974. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the SEC promulgated thereunder. 
 “Guardian” means The Guardian Life
Insurance Company of America, a New York corporation. 
 “Guardian Preemptive Deadline” means
11:59 p.m. on the date that is ten (10) Business Days after the Closing Date. 
 “Guardian
Preemptive Right” means the right of Guardian pursuant to that certain Securities Purchase Agreement, dated as of October 31, 2008, by and between the Company and Guardian, to purchase up to 8,406 Shares from the Company prior to the
Guardian Preemptive Deadline. 
 “Material Adverse Change” has the meaning ascribed to such term
in Section 4.10 hereof. 
 “Material Adverse Effect” has the meaning ascribed to such term
in Section 4.13 hereof. 
 “Party” or “Parties” has the meaning given in
the Preamble to this Agreement. 
 “Public Filings” means, with respect to the Company,
collectively, (i) the annual report on Form 10-K for the year ended December 31, 2009, as amended by Amendment No. 1 to the Form 10-K, (ii) the quarterly report on Form 10-Q for the quarter ended March 31, 2010, and
(iii) the current reports on Form 8-K filed by the Company since January 1, 2010. 
 “Purchase
Price” has the meaning given in Section 2.2. 
 “Purchaser” has the meaning given
in the Preamble to this Agreement. 
 “Registration Rights Agreement” means the registration
rights agreement substantially in the form set forth as Exhibit B to this Agreement 

“SEC” means the U.S. Securities and Exchange Commission, or any other Federal agency at the time
administering the Securities Act. 
 “Securities Act” means the Securities Act of 1933, as
amended, and the rules and regulations of the SEC thereunder. 
 1.2 Interpretation. Except where otherwise
expressly provided or unless the context otherwise necessarily requires, in this Agreement (including in the Recitals hereto): 

(a) Reference to a given Article, Section, Subsection, clause, or Exhibit is a reference to an Article, Section, Subsection, clause,
or Exhibit of this Agreement. 
  

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 (b) The terms “hereof”, “herein”, “hereto”,
“hereunder” and “herewith” refer to this Agreement as a whole. 
 (c) Reference to a given agreement,
instrument, document or law is a reference to that agreement, instrument, document or law as modified, amended, supplemented and restated through the date as of which such reference is made, and, as to any law, any successor law. 

(d) Reference to a person includes its predecessors, successors and permitted assigns. 

(e) The singular includes the plural and the masculine includes the feminine, and vice versa. 

(f) “Includes” or “including” means “including, for example and without limitation.” 

(g) References to “days” means calendar days. 

(h) Any item disclosed by a Party on any schedule to this Agreement shall be deemed to be disclosed and incorporated by reference into
each other schedule or representation or warranty delivered or made by such Party in this Agreement, as though fully set forth therein. 

ARTICLE 2 

SUMMARY OF TRANSACTIONS 

2.1 Sale and Purchase of Shares. Subject to the terms and conditions hereof, 

(a) at the Closing, (i) the Company agrees to issue and sell to the Purchaser 91,594 Shares (the “Initial
Shares”), at a purchase price of $1,000.00 per Share, and the Purchaser agrees to purchase and acquire such Shares, and (ii) the Parties shall take or cause to be taken the other actions described in Section 3.2. 

(b) at the Second Closing the Company agrees to issue and sell to the Purchaser, that number of additional Shares (if any)
that is equal to 8,406 minus the number of Shares (if any) purchased by Guardian pursuant to the Guardian Preemptive Right (the “Remaining Shares”), at a purchase price of $1,000.00 per Share, and the Purchaser agrees to purchase
and acquire such Shares, and (ii) the Parties shall take or cause to be taken the other actions described in Section 3.6. 

2.2 Purchase Price. The aggregate amount payable for the 91,594 Initial Shares to be purchased by the Purchaser on the
Closing Date is Ninety-One Million Five Hundred Ninety-Four Thousand Dollars ($91,594,000.00) (the “Initial Purchase Price”) and, the aggregate amount payable for the Remaining Shares, if any, to be purchased on the Second Closing
Date is $1,000 multiplied by the number of Remaining Shares (the “Remaining Purchase Price”). The 
  

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Initial Purchase Price shall be paid in immediately available funds at the Closing in accordance with Section 3.2.2, subject to the satisfaction or waiver of the conditions to closing
contained herein. The Remaining Purchase Price (if any) shall be paid in immediately available funds at the Second Closing in accordance with Section 3.6.2, subject to the satisfaction or waiver of the conditions to closing contained herein.

 2.3 Underlying Securities. The Shares will be convertible into shares of common stock of the Company, par value
$0.0001 per share (“Common Stock”), in the manner described in the Certificate of Designation. The shares of Common Stock into which the Shares may be converted, are referred to collectively herein as the “Underlying
Securities.” 
 ARTICLE 3 

CLOSING AND CLOSING CONDITIONS 

3.1 Time and Place of the Closing. Subject to the terms and conditions hereof, the closing of the transactions contemplated
by Article 2.1(a) (the “Closing”) shall take place at the offices of Loeb & Loeb LLP, 10100 Santa Monica Blvd., Suite 2200, Los Angeles, CA, 90067 on May 20, 2010, at 10:00 A.M., New York time;
provided, however, that (i) if all of the closing conditions set forth in Sections 3.2, 3.3 and 3.4 have not been satisfied or waived on or prior to such date then the Company and the Purchaser may mutually agree in writing to
extend the Closing to another date, and (ii) the Closing shall take place at such other place and on such other date as the Company and Purchaser mutually agree (the actual date of the Closing is referred to herein as the “Closing
Date”). 
 3.2 Actions at the Closing. At the Closing, the Company and the Purchaser (as applicable)
shall take or cause to be taken the following actions (the “Closing Actions”): 
 3.2.1
Delivery of Initial Shares. In exchange for the payment referenced in Section 3.2.2 below, the Company shall deliver to the Purchaser the Initial Shares being purchased by the Purchaser from the Company through the facilities of the
Depository Trust Company (“DTC”). 
 3.2.2 Payment of Initial Purchase Price. The
Purchaser shall pay to the Company by wire transfer in immediately available funds an amount equal to the Initial Purchase Price. 

3.2.3 Opinions. The Company shall cause to be delivered to the Purchaser opinions of
(i) Loeb & Loeb LLP, special counsel for the Company, dated as of such Closing Date, the form of which is attached as Exhibit C and (ii) Kulik, Gottesman, Mouton & Siegel LLP, general counsel for the Company,
dated as of such Closing Date, the form of which is attached as Exhibit D. 
 3.2.4 Officers
Certificate. The Chief Executive Officer or President of the Company and the Chief Financial Officer or Chief Accounting Officer of the Company 

 

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shall deliver to the Purchaser a written certificate executed by such officers, dated as of the Closing Date, to the effect that: 

(a) there shall not have occurred any downgrading, nor shall any notice have been given of any intended or potential
downgrading or of any review for a possible change that does not indicate the direction of the possible change, in the rating accorded any securities or indebtedness of the Company or any of its subsidiaries by any “nationally recognized
statistical rating organization” as such term is defined for purposes of Rule 436 under the Securities Act; 

(b) for the period from and after the date of this Agreement and prior to the Closing Date, there has not occurred any
Material Adverse Change; 
 (c) the representations and warranties of the Company set forth in Article 4 were
true and correct as of the date hereof and are true and correct as of the Closing Date, with the same force and effect as though expressly made on and as of the Closing Date; and 

(d) the Company has complied with all the agreements and satisfied all the conditions set forth in this Agreement
required to be performed or satisfied by it at or prior to the Closing Date. 
 3.2.5 NYSE Supplemental
Listing of Underlying Securities. The Company shall deliver evidence satisfactory to the Purchaser that the Underlying Securities have been approved for supplemental listing, subject to official notice of issuance, on the New York Stock
Exchange. 
 3.2.6 Filing of Certificate of Designation. The Company shall cause the Certificate of
Designation to be filed with the Secretary of State of the State of Delaware on or before the Closing Date. 

3.2.7 Registration Rights Agreement. Each of the Company and the Purchaser shall execute and deliver the
Registration Rights Agreement. 
 3.2.8 Additional Actions. The Parties shall execute and deliver,
or cause to be executed and delivered, all other documents, and take such other actions, in each case as shall be necessary or appropriate, to consummate the transactions contemplated hereby, all in accordance with the provisions of this Agreement.

 3.3 Conditions Precedent to Obligations of the Purchaser. The obligation of the Purchaser to consummate the purchase
of its Initial Shares at Closing shall be subject to the accuracy of the representations and warranties on the part of the Company set forth in Article 4 hereof as of the date hereof and as of the Closing Date, as though then made and to the timely
performance by the Company of its covenants and other obligations hereunder, and to each of the following additional conditions, any of which may be waived by the Purchaser in its sole discretion: 

 

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 3.3.1 Performance of Closing Actions. The Company shall have
performed and complied with all agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before Closing, including its Closing Actions. 

3.3.2 No Material Adverse Change. For the period from and after the date of this Agreement and prior to the Closing
Date: 
 (a) there shall not have occurred any Material Adverse Change; and 

(b) there shall not have occurred any downgrading, nor shall any notice have been given of any intended or potential
downgrading or of any review for a possible change that does not indicate the direction of the possible change, in the rating accorded any securities or indebtedness of the Company or any of its subsidiaries by any “nationally recognized
statistical rating organization” as such term is defined for purposes of Rule 436 under the Securities Act. 

3.3.3 NYSE Supplemental Listing of Underlying Securities. The Underlying Securities shall have been approved for
supplemental listing, subject to official notice of issuance, on the New York Stock Exchange. 
 3.3.4 Filing
of Certificate of Designation. The Certificate of Designation shall have been filed with the Secretary of State of the State of Delaware on or before the Closing Date. 

3.3.5 Opinions of Counsel. The Purchaser shall have received the opinions of counsel listed in
Section 3.2.3. 
 3.3.6 Officer’s Certificates. The Purchaser shall have received the
officers certificate listed in Section 3.2.4. 
 If any of the conditions set forth in this Section 3.3 are not
satisfied or waived at or prior to the Closing Date, the Parties hereto shall be released and discharged from their respective obligations hereunder. The Purchaser may at its discretion and for itself, however, waive compliance with the whole or any
part of this Section 3.3. 
 3.4 Conditions Precedent to Obligations of the Company. The obligation of the
Company to consummate the sale of the Initial Shares at the Closing shall be subject to the accuracy of the representations and warranties on the part of the Purchaser set forth in Article 5 hereof as of the date hereof and as of the Closing Date,
as though then made and to the timely performance by the Purchaser of its covenants and other obligations hereunder, and to each of the following additional conditions, any of which may be waived by the Company in its sole discretion: 

3.4.1 Securities Laws. The Company shall have obtained all required authorizations, approvals, permits and
qualifications (if any) or secured an exemption therefrom under all applicable federal and state securities laws prior to the offer and sale 

 

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of the Shares, and such authorizations, approvals, permits, qualifications or exemptions shall be effective as of the Closing. 

3.4.2 Performance of Closing Actions. The Purchaser shall have performed and complied with all agreements,
obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before Closing, including its Closing Actions. 

3.4.3 Withholding Certificates. The Purchaser shall at the Closing, and subsequently as requested by the
Company, provide to the Company a duly completed and valid IRS Form W-8 (of the type applicable to the Purchaser) or W-9, as applicable, executed in its name or, if the Purchaser is a single-member entity that is disregarded for U.S. federal income
tax purposes, the name of its single owner. Purchasers providing a Form W-8 (other than Form W-8ECI) are hereby notified that the Company intends to withhold federal income tax from payments to them at the rate required under applicable law
(including any applicable income tax treaty). 
 3.4.4 NYSE Supplemental Listing of Underlying
Securities. The Underlying Securities shall have been approved for supplemental listing, subject to official notice of issuance, on the New York Stock Exchange. 

3.5 Time and Place of the Second Closing. Subject to the terms and conditions hereof, the closing of the purchase and sale
of the Remaining Shares (if any) (the “Second Closing”) shall take place at the offices of Loeb & Loeb LLP, 10100 Santa Monica Blvd., Suite 2200, Los Angeles, CA, 90067 at 10:00 A.M., New York time on the business day
after the Guardian Preemptive Deadline; provided, however, that (i) if all of the closing conditions set forth in Sections 3.6, 3.7 and 3.8 have not been satisfied or waived on or prior to such date then the Company and the
Purchaser may mutually agree in writing to extend the Second Closing to another date, and (ii) the Second Closing shall take place at such other place and on such other date as the Company and Purchaser mutually agree (the actual date of the
Second Closing is referred to herein as the “Second Closing Date”). 
 3.6 Actions at the Second
Closing. At the Second Closing, the Company and the Purchaser (as applicable) shall take or cause to be taken the following actions (the “Second Closing Actions”): 

3.6.1 Delivery of Remaining Shares. In exchange for the payment referenced in Section 3.6.2 below, the
Company shall deliver to the Purchaser the Remaining Shares being purchased by the Purchaser from the Company through the facilities of DTC. 

3.6.2 Payment of Remaining Purchase Price. The Purchaser shall pay to the Company by wire transfer in
immediately available funds an amount equal to the Remaining Purchase Price. 
 3.6.3 Opinions. The
Company shall cause to be delivered to the Purchaser opinions of (i) Loeb & Loeb LLP, special counsel for the Company, dated as of such Second Closing Date, the form of which is attached as Exhibit C and (ii) Kulik,

  

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Gottesman, Mouton & Siegel LLP, general counsel for the Company, dated as of such Second Closing Date, the form of which is attached as Exhibit D. 

3.6.4 Officers Certificate. The Chief Executive Officer or President of the Company and the Chief Financial Officer
or Chief Accounting Officer of the Company shall deliver to the Purchaser a written certificate executed by such officers, dated as of the Second Closing Date, to the effect that: 

(a) there shall not have occurred any downgrading, nor shall any notice have been given of any intended or potential
downgrading or of any review for a possible change that does not indicate the direction of the possible change, in the rating accorded any securities or indebtedness of the Company or any of its subsidiaries by any “nationally recognized
statistical rating organization” as such term is defined for purposes of Rule 436 under the Securities Act; 

(b) for the period from and after the date of this Agreement and prior to the Second Closing Date, there has not occurred
any Material Adverse Change; and 
 (c) the representations and warranties of the Company set forth in Article 4
were true and correct as of the Second Closing Date, with the same force and effect as though expressly made on and as of the Second Closing Date. 

3.6.5 Additional Actions. The Parties shall execute and deliver, or cause to be executed and delivered, all
other documents, and take such other actions, in each case as shall be necessary or appropriate, to consummate the transactions contemplated hereby, all in accordance with the provisions of this Agreement. 

3.7 Conditions Precedent to Obligations of the Purchaser. The obligation of the Purchaser to consummate the purchase of its
Remaining Shares at Second Closing shall be subject to the accuracy of the representations and warranties on the part of the Company set forth in Article 4 hereof as of the date hereof and as of the Second Closing Date, as though then made and to
the timely performance by the Company of its covenants and other obligations hereunder, and to each of the following additional conditions, any of which may be waived by the Purchaser in its sole discretion: 

3.7.1 Performance of Second Closing Actions. The Company shall have performed and complied with all
agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before Second Closing, including its Second Closing Actions. 

3.7.2 No Material Adverse Change. For the period from and after the date of this Agreement and prior to the Second
Closing Date: 
 (a) there shall not have occurred any Material Adverse Change; and 

(b) there shall not have occurred any downgrading, nor shall any notice have been given of any intended or potential
downgrading or of any review for a possible change that does not indicate the direction of the possible change, in the rating 
  

 8 

 
accorded any securities or indebtedness of the Company or any of its subsidiaries by any “nationally recognized statistical rating organization” as such term is defined for purposes of
Rule 436 under the Securities Act. 
 3.7.3 Opinions of Counsel. The Purchaser shall have
received the opinions of counsel listed in Section 3.6.3. 
 3.7.4 Officer’s
Certificates. The Purchaser shall have received the officers certificate listed in Section 3.6.4. 
 If any of
the conditions set forth in this Section 3.7 are not satisfied or waived at or prior to the Second Closing Date, the Parties hereto shall be released and discharged from their respective obligations hereunder. The Purchaser may at its
discretion and for itself, however, waive compliance with the whole or any part of this Section 3.7. 
 3.8 Conditions
Precedent to Obligations of the Company. The obligation of the Company to consummate the sale of the Remaining Shares at the Second Closing shall be subject to the accuracy of the representations and warranties on the part of the
Purchaser set forth in Article 5 hereof as of the date hereof and as of the Second Closing Date, as though then made and to the timely performance by the Purchaser of its covenants and other obligations hereunder, and to each of the following
additional conditions, any of which may be waived by the Company in its sole discretion: 
 3.8.1 Performance
of Closing Actions. The Purchaser shall have performed and complied with all agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before Second Closing,
including its Second Closing Actions. 
 ARTICLE 4 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

The Company hereby represents and warrants to the Purchaser that: 

4.1 No Registration Required. Subject to compliance by the Purchaser with the representations and warranties set forth in Article
5 hereof, it is not necessary in connection with the offer, sale and delivery of the Shares to the Purchaser in the manner contemplated by this Agreement to register the Shares under the Securities Act. 

4.2 No Integration of Offerings or General Solicitation. None of the Company, its Affiliates or any person acting on its or any of
their behalf has, directly or indirectly, solicited any offer to buy or offered to sell, or will, directly or indirectly, solicit any offer to buy or offer to sell, in the United States or to any United States citizen or resident, any security which
is or would be integrated with the sale of the Shares in a manner that would require the Shares to be registered under the Securities Act. None of the Company, its Affiliates, or any person acting on its or any of their behalf has engaged or will
engage, in connection with the offering of the 
  

 9 

 
Shares, in any form of general solicitation or general advertising within the meaning of Rule 502 under the Securities Act. 

4.3 Public Filings. The Public Filings, taken as a whole, do not contain any untrue statement of a material fact or omit to state
any material fact necessary to make the statements therein not misleading, in light of the circumstances under which they were made. The Public Filings, at the time they were filed with the SEC, complied in all material respects with the
requirements of the Exchange Act. 
 4.4 The Purchase Agreement. This Agreement has been duly authorized, executed and
delivered by the Company. 
 4.5 The Shares. The Shares have been duly and validly authorized by all necessary corporate
action on the part of the Company and, when issued and delivered against payment therefor in accordance with the terms of this Agreement and the Certificate of Designation, the Shares will be validly issued, fully paid and non-assessable, will not
be subject to any preemptive or similar rights (except for the Guardian Preemptive Right and such rights that have been duly waived), and will be convertible at the option of the holders thereof into the Underlying Securities in accordance with the
Certificate of Designation. 
 4.6 Outstanding Capital Stock. The outstanding shares of capital stock of the Company have
been duly authorized and validly issued and are fully paid and non-assessable; none of the outstanding shares of capital stock of the Company was issued in violation of any preemptive or similar rights of any stockholder of the Company. 

4.7 The Underlying Securities. The Underlying Securities have been duly authorized and reserved, and when issued and delivered
upon conversion of the Shares or in payment of dividends on the Shares, in the manner contemplated by the Certificate of Designation, will be validly issued, fully paid and non-assessable; and no preemptive or similar rights of stockholders (except
for the Guardian Preemptive Right) exist with respect to any of the Underlying Securities. 
 4.8 The Certificate of
Designation. The Certificate of Designation has been duly authorized by the Company. 
 4.9 No Convertible Stock.
Other than as disclosed in the Public Filings, there are no outstanding securities of the Company convertible into, exchangeable for or evidencing the right to purchase or subscribe for any shares of capital stock of the Company and there are no
outstanding or authorized options, warrants or rights of any character obligating the Company to issue any shares of its capital stock or any securities convertible or exchangeable into or evidencing the right to purchase or subscribe for any shares
of such stock. 
 4.10 No Material Adverse Change. Except as otherwise disclosed in the Public Filings, subsequent to the
filing of the Company’s quarterly report on Form 10-Q for the quarter ended March 31, 2010, there has been no material adverse change, or any development that could reasonably be expected to result in a material adverse change, in the
condition, financial or otherwise, or in the earnings, business, properties, operations or prospects (other than as a result of developments affecting the industries in which the Company participates generally), whether

  

 10 

 
or not arising from transactions in the ordinary course of business, of the Company and its subsidiaries, considered as one entity (a “Material Adverse Change”); (ii) the
Company and its subsidiaries, considered as one entity, have not incurred any material liability or obligation, indirect, direct or contingent, nor entered into any material transaction or agreement; and (iii) there has been no cash dividend or
distribution of any kind declared, paid or made by the Company or, except for dividends paid to the Company or other subsidiaries, any of its subsidiaries on any class of capital stock or repurchase or redemption by the Company or any of its
subsidiaries of any class of capital stock. 
 4.11 Independent Accountants. KPMG LLP, who have expressed their opinion
with respect to certain of the financial statements included in the Public Filings, are independent registered public accountants with respect to the Company as required by the Securities Act and the Exchange Act. 

4.12 Preparation of the Financial Statements. The consolidated financial statements of the Company included in the Public Filings
present fairly the consolidated financial position of the entities to which they relate as of and at the dates indicated and the results of their operations and cash flows for the periods specified. Such financial statements comply as to form with
the applicable accounting requirements of Regulation S-X and have been prepared in conformity with generally accepted accounting principles applied on a consistent basis throughout the periods involved, except as may be expressly stated in the
related notes thereto. 
 4.13 Incorporation and Good Standing of the Company. The Company has been duly incorporated and
is validly existing and in good standing under the laws of the jurisdiction of its incorporation and has power and authority (corporate or otherwise) to own or lease, as the case may be, and operate its properties and to conduct its business as
described in the Public Filings and, in the case of the Company, to enter into and perform its obligations under each of this Agreement, the Certificate of Designation and the Shares. The Company is duly qualified to transact business and is in good
standing in each jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except for such jurisdictions where the failure to so qualify or to be in good standing
would not, individually or in the aggregate, result in a material adverse effect on the condition, financial or otherwise, or on the earnings, business, properties or operations, whether or not arising from transactions in the ordinary course of
business, of the Company and its subsidiaries, considered as one entity (a “Material Adverse Effect”). All of the issued and outstanding shares of capital stock, or similar equity interest, of each wholly-owned subsidiary of the
Company have been duly authorized and validly issued, are fully paid and nonassessable and are owned by the Company, directly or through subsidiaries, free and clear of any security interest, mortgage, pledge, lien, encumbrance or claim. 

4.14 Non-Contravention of Existing Instruments; No Further Authorizations or Approvals Required. Neither the Company nor any of
its subsidiaries is (i) in violation of its charter or bylaws (or other applicable organizational document), (ii) is (or, with the giving of notice or lapse of time, would be) in default (“Default”) under any indenture,
mortgage, loan or credit agreement, note, contract, franchise, lease or other instrument to which the Company or any of its subsidiaries is a party or by which it or any of them may be bound, or to which any of the property or assets of the Company
or any of its subsidiaries is subject (each, an “Existing 
  

 11 

 
Instrument”), or (iii) is in violation of any statute, law, rule, regulation, judgment, order or decree of any court, regulatory body, administrative agency, governmental body,
arbitrator or other authority having jurisdiction over the Company or such subsidiary or any of its properties, as applicable, except with respect to clauses (ii) and (iii), for such Defaults or violations as would not, individually or in the
aggregate, have a Material Adverse Effect. 
 The Company’s execution, delivery and performance of this Agreement, the
issuance and delivery of the Shares or the Underlying Securities, the Company’s compliance with the Certificate of Designation and the consummation of the transactions contemplated hereby and thereby (i) have been duly authorized by all
necessary action (corporate or otherwise) and will not result in any violation of the charter or by laws (or other applicable organizational document) of the Company or any subsidiary, (ii) will not conflict with or constitute a breach of, or
Default or a Debt Repayment Triggering Event (as defined below) under, or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or any of its subsidiaries pursuant to, or require the
consent of any other party to, any Existing Instrument and (iii) will not result in any violation of any statute, law, rule, regulation, judgment, order or decree applicable to the Company or any of its subsidiaries of any court, regulatory
body, administrative agency, governmental body, arbitrator or other authority having jurisdiction over the Company or any of its subsidiaries or any of its or their properties, except with respect to clauses (ii) and (iii), for such Defaults,
Debt Repayment Triggering Events or violations as would not, individually or in the aggregate, have a Material Adverse Effect. As used herein, a “Debt Repayment Triggering Event” means any event or condition which gives, or with the
giving of notice or lapse of time would give, the holder of any note, debenture or other evidence of indebtedness (or any person acting on such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a portion of
such indebtedness by the Company or any of its subsidiaries. 
 No consent, approval, authorization or other order of, or
registration or filing with, any court or other governmental or regulatory authority or agency is required for the Company’s execution, delivery and performance of this Agreement or the issuance and delivery of the Shares or the Underlying
Securities or the Company’s compliance with the Certificate of Designation, or the consummation of the transactions contemplated hereby and thereby, except for such as have been or will be obtained or made by the Company and are or will be in
full force and effect under the Securities Act, and applicable state securities or blue sky laws within the appropriate time periods therefor. 

4.15 No Material Actions or Proceedings. Except as otherwise disclosed in the Public Filings, there are no legal or governmental
actions, suits or proceedings pending or, to the Company’s knowledge, threatened (i) against or affecting the Company or any of its subsidiaries, (ii) which has as the subject thereof any officer or director of, or property owned or
leased by, the Company or any of its subsidiaries or (iii) relating to environmental or discrimination matters, where in any such case (A) there is a reasonable possibility that such action, suit or proceeding might be determined adversely
to the Company or such subsidiary and (B) any such action, suit or proceeding, if so determined adversely, would reasonably be expected to have a Material Adverse Effect or adversely affect the consummation of the transactions contemplated by
this Agreement. 
  

 12 

 4.16 Labor Matters. No labor problem or dispute with the employees of the Company or
any of its subsidiaries exists or is threatened or imminent that would reasonably be expected to have a Material Adverse Effect. 

4.17 Intellectual Property Rights. The Company and its subsidiaries own, possess, license or have other rights to use, on
reasonable terms, all patents, patent applications, trade and service marks, trade and service mark registrations, trade names, copyrights, licenses, inventions, trade secrets, technology, know-how and other intellectual property (collectively, the
“Intellectual Property Rights”) necessary for the conduct of the Company’s business as now conducted or as proposed in the Public Filings to be conducted except where the failure to do so would not reasonably be expected to
have a Material Adverse Effect. Except as set forth in the Public Filings, (a) no party has been granted an exclusive license to use any portion of such Intellectual Property Rights owned by the Company; (b) to the Company’s knowledge
there is no material infringement by third parties of any such Intellectual Property Rights owned by or exclusively licensed to the Company; (c) there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding or
claim by others challenging the Company’s rights in or to any material Intellectual Property Rights; and (d) there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others that the
Company’s business as now conducted infringes or otherwise violates any material patent, trademark, copyright, trade secret or other proprietary rights of others, and the Company is unaware of any other fact which would form a reasonable basis
for any such claim. 
 4.18 All Necessary Permits, etc. The Company possesses such valid and current licenses,
certificates, authorizations or permits issued by the appropriate state, federal or foreign regulatory agencies or bodies necessary to conduct its business except where the failure to do so would not reasonably be expected to have a Material Adverse
Effect, and the Company has not received any notice of proceedings relating to the revocation or modification of, or non-compliance with, any such certificate, authorization or permit which, singly or in the aggregate, if the subject of an
unfavorable decision, ruling or finding, would reasonably be expected to have a Material Adverse Effect. 
 4.19 Title to
Properties. Each of the Company and its subsidiaries has (i) good and marketable title to all real property owned by it and (ii) good and marketable title to all personal property owned by it, in each case free and clear of all liens,
encumbrances and defects except such as are described in the Public Filings or such as do not materially affect the value of the properties of the Company and its subsidiaries, considered as one enterprise, and do not interfere in any material
respect with the use made and proposed to be made of such properties, by the Company and its subsidiaries, considered as one enterprise; and all of the easements, leases and subleases material to the business of the Company and its subsidiaries,
considered as one enterprise, and under which the Company or any of its subsidiaries holds or uses properties described in the Public Filings, are in full force and effect, and neither the Company nor any of its subsidiaries has any notice of any
material claim of any sort that has been asserted by anyone adverse to the rights of the Company or its subsidiaries under any of the easements, leases or subleases mentioned above, or affecting or questioning the rights of the Company or any
subsidiary thereof to the continued possession or use of the easement or leased or subleased premises. 
  

 13 

 4.20 Condition of Properties. Except as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect on the Company, buildings and structures owned by the Company are in good operating condition and repair and have been reasonably maintained consistent with standards generally followed in the
industry (giving due account to the age and length of use of same, ordinary wear and tear excepted), are adequate and suitable for their present uses and are structurally sound. 

4.21 Tax Law Compliance. The Company and its consolidated subsidiaries have filed all necessary federal, state, local and foreign
income and franchise tax returns in a timely manner and have paid all taxes required to be paid by any of them and, if due and payable, any related or similar assessment, fine or penalty levied against any of them, except for any taxes, assessments,
fines or penalties as may be being contested in good faith and by appropriate proceedings or where the failure to do so would not reasonably be expected to have a Material Adverse Effect. The Company has made appropriate provisions in the financial
statements included in the Public Filings in respect of all federal, state and foreign income and franchise taxes for all current or prior periods as to which the tax liability of the Company or any of its consolidated subsidiaries has not been
finally determined except to the extent it would not have a Material Adverse Effect. 
 4.22 Company Not an “Investment
Company”. The Company is not, and, after receipt of payment for the Shares and application of the proceeds will not be, required to register as an “investment company” within the meaning of the Investment Company Act and will
conduct its business in a manner so that it will not become subject to the Investment Company Act. 
 4.23 Insurance.
Each of the Company and its subsidiaries are insured by recognized, and to the knowledge of the Company, financially sound and reputable institutions with policies in such amounts and with such deductibles and covering such risks as are generally
deemed adequate and customary for their businesses including, but not limited to, policies covering real and personal property owned or leased by the Company and its subsidiaries against theft, damage, destruction, acts of terrorism or vandalism and
earthquakes. All policies of insurance and fidelity or surety bonds insuring the Company or any of its subsidiaries or their respective businesses, assets, employees, officers and directors are in full force and effect; the Company and its
subsidiaries are in compliance, in all material respects, with the terms of such policies and instruments; and there are no material claims by the Company or any of its subsidiaries under any such policy or instrument as to which any insurance
company is denying liability or defending under a reservation of rights clause; and neither the Company nor any such subsidiary has, in the past three years, been refused any insurance coverage sought or applied for. 

4.24 Compliance with Sarbanes-Oxley. The Company and its subsidiaries and their respective officers and directors are in
compliance with the applicable provisions of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act,” which term, as used herein, includes the rules and regulations of the SEC promulgated thereunder). 

4.25 Internal Controls. To the extent currently required under the applicable provisions of the Sarbanes-Oxley Act, the Company
maintains effective internal control over financial reporting as defined in Rule 13a-15 under the Exchange Act and a system of internal accounting control sufficient to provide reasonable assurance that (A) transactions are executed

  

 14 

 
in accordance with management’s general or specific authorization, (B) transactions are recorded as necessary to permit preparation of the Company’s financial statements in
conformity with accounting principles generally accepted in the United States and to maintain accountability for its assets, (C) access to the Company’s assets is permitted only in accordance with management’s general or specific
authorization and (D) the recorded accountability for the Company’s assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 

4.26 Disclosure Controls and Procedures. The Company has established and maintains disclosure controls and procedures (as such
term is defined in Rules 13a-15 and 15d-15 under the Exchange Act); such disclosure controls and procedures are designed to ensure that material information relating to the Company and its subsidiaries is made known to the chief executive
officer and chief financial officer of the Company by others within the Company or any of its subsidiaries, and such disclosure controls and procedures are reasonably effective to perform the functions for which they were established subject to the
limitations of any such control system; the Company’s auditors and the Audit Committee of the Board of Directors of the Company have been advised of: (i) any significant deficiencies or material weaknesses in the design or operation of
internal controls which could adversely affect the Company’s ability to record, process, summarize, and report financial data; and (ii) any fraud, whether or not material, that involves management or other employees who have a role in the
Company’s internal controls; and since the date of the most recent evaluation of such disclosure controls and procedures, there have been no significant changes in internal controls or in other factors that could significantly affect internal
controls, including any corrective actions with regard to significant deficiencies and material weaknesses. 
 4.27
Compliance with Environmental Laws. Except as otherwise disclosed in the Public Filings: (i) neither the Company nor any of its subsidiaries is in violation of any federal, state, local or foreign law, regulation, order, permit or other
requirement relating to pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata) or wildlife, including without limitation, laws and
regulations relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, wastes, toxic substances, hazardous substances, petroleum and petroleum products (collectively, “Materials of
Environmental Concern”), or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Materials of Environmental Concern (collectively, “Environmental
Laws”), which violation includes, but is not limited to, noncompliance with any permits or other governmental authorizations required for the operation of the business of the Company or its subsidiaries under applicable Environmental Laws,
or noncompliance with the terms and conditions thereof, nor has the Company or any of its subsidiaries received any written communication, whether from a governmental authority, citizens group, employee or otherwise, that alleges that the Company or
any of its subsidiaries is in violation of any Environmental Law, except, in each case, as would not, individually or in the aggregate, have a Material Adverse Effect; (ii) there is no claim, action or cause of action filed with a court or
governmental authority, no investigation with respect to which the Company has received written notice, and no written notice by any person or entity alleging potential liability for investigatory costs, cleanup costs, governmental responses costs,
natural resources damages, property damages, personal injuries, attorneys’ fees or penalties arising out of, based on or resulting from the 

 

 15 

 
presence, or release into the environment, of any Material of Environmental Concern at any location owned, leased or operated by the Company or any of its subsidiaries, now or in the past
(collectively, “Environmental Claims”), pending or, to the Company’s knowledge, threatened against the Company or any of its subsidiaries or any person or entity whose liability for any Environmental Claim the Company or any of
its subsidiaries has retained or assumed either contractually or by operation of law, except as would not, individually or in the aggregate, have a Material Adverse Effect; and (iii) to the Company’s knowledge, there are no past, present
or anticipated future actions, activities, circumstances, conditions, events or incidents, including, without limitation, the release, emission, discharge, presence or disposal of any Material of Environmental Concern, that reasonably could result
in a violation of any Environmental Law, require expenditures to be incurred pursuant to Environmental Law, except as would not, individually or in the aggregate, have a Material Adverse Effect. 

4.28 Related Party Transactions. No relationship, direct or indirect, exists between or among any of the Company or any Affiliate
of the Company, on the one hand, and any director, officer, member, stockholder, customer or supplier of the Company or any Affiliate of the Company, on the other hand, which is required by the Exchange Act to be disclosed in reports filed under the
Exchange Act which is not so disclosed in the Public Filings. There are no outstanding loans, advances (except advances for business expenses in the ordinary course of business) or guarantees of indebtedness by the Company or any Affiliate of the
Company to or for the benefit of any of the officers or directors of the Company or any Affiliate of the Company or any of their respective family members. 

4.29 Solvency. The Company is, and immediately after the Closing Date and immediately after the Second Closing Date will be,
Solvent. As used herein, the term “Solvent” means, with respect to any person on a particular date, that on such date (i) the fair market value of the assets of such person is greater than the total amount of liabilities (including
contingent liabilities) of such person, (ii) the present fair salable value of the assets of such person is greater than the amount that will be required to pay the probable liabilities of such person on its debts as they become absolute and
matured, (iii) such person is able to realize upon its assets and pay its debts and other liabilities, including contingent obligations, as they mature and (iv) such person does not have unreasonably small capital. 

4.30 Brokers. There is no broker, finder or other party that is entitled to receive from the Company any brokerage or
finder’s fee or other fee or commission as a result of any transactions contemplated by this Agreement. 
 4.31
Registration Rights Agreement. The Registration Rights Agreement has been duly authorized and, at the Closing Date, will have been duly executed and delivered by the Company, and will be a valid and binding agreement of the Company, enforceable
against the Company in accordance with its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by
general equitable principles and except as rights to indemnification under the Registration Rights Agreement may be limited by applicable law. 
  

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 4.32 Company Data. The information contained in Exhibit E to this Agreement
and all other materials and information provided by the Company to the Purchaser in connection with the transactions contemplated hereby are true and complete in all respects. 

ARTICLE 5 

REPRESENTATIONS AND WARRANTIES OF PURCHASER 

5.1 Representations and Warranties of Purchaser. The Purchaser hereby represents and warrants to the Company that:

 5.1.1 Organization. The Purchaser is duly organized, validly existing and in good standing under
the laws of the state or jurisdiction in which it was formed. The Purchaser is qualified to do business in all jurisdictions where it does business, where the failure to qualify would materially and adversely affect its ability to execute or
deliver, or perform its obligations under, this Agreement. 
 5.1.2 Authority and Power. The
Purchaser has the requisite power and authority to enter into this Agreement, to consummate each of the transactions and undertakings contemplated hereby, and to perform all the terms and conditions thereof to be performed by it. The execution,
delivery and performance of this Agreement and consummation of each of the transactions and undertakings contemplated hereby have been duly authorized by all requisite action on its part under the Purchaser’s constituent or governing documents
and applicable law. 
 5.1.3 Valid and Binding Obligations. This Agreement has been duly and
validly executed and delivered, and is enforceable against the Purchaser in accordance with the terms thereof. 
  

 17 

 5.1.4 Securities Law Matters. The offer and sale of the Shares
and the Underlying Securities to the Purchaser is being made as a private placement pursuant to Section 4(2) of the Securities Act, Regulation S, Regulation D thereunder, and is not being registered under the Securities Act. The Purchaser
hereby acknowledges that neither the Shares nor the Underlying Securities have been registered under the Securities Act, or registered or qualified for sale under any state securities laws, and cannot be resold without registration thereunder or
exemption therefrom. The Purchaser is a “Qualified Institutional Buyer”, as such term is defined in Rule 144A of the Securities Act, or an institutional “accredited investor,” as such term is defined in
Rule 501(a)(1), (2), (3) or (7) of Regulation D of the Securities Act, and will acquire the Shares and Underlying Securities for its own account and not with a view to a sale or distribution thereof in violation of the Securities
Act, and the rules and regulations thereunder, any applicable state “blue sky” laws or any other applicable securities laws. The Purchaser has sufficient knowledge and experience in financial and business matters to enable it to evaluate
the risks of investment in the Shares and Underlying Securities, is purchasing the Shares with a full understanding of all of the terms, conditions and risks thereof, and at the Closing will bear and have the ability to bear the economic risk of
this investment for an indefinite period of time. The Purchaser acknowledges that it has been afforded an opportunity to request and to review all information considered by the Purchaser to be necessary to make the investment decision to enter into
this Agreement and to consummate the transactions contemplated hereby. The Purchaser understands and agrees to the terms and conditions under which the Shares are being offered. 

5.1.5 Legends. The Purchaser acknowledges that, to the extent applicable, each certificate evidencing the
Shares shall be endorsed with a legend substantially in the form set forth below, as well as any additional legend imposed or required by applicable securities laws: 

“THIS SECURITY (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY U.S. STATE, NOR IS ANY SUCH REGISTRATION CONTEMPLATED. THIS SECURITY AND ANY SECURITY ISSUABLE UPON CONVERSION HEREOF MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. 
 THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT
(A) THIS SECURITY AND ANY SECURITY ISSUABLE UPON CONVERSION HEREOF MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO KENNEDY-WILSON HOLDING, INC., OR ITS SUCCESSOR, (II) IN THE UNITED STATES TO A PERSON WHO THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (III) OUTSIDE OF THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE
WITH RULE 904 UNDER THE SECURITIES ACT, (IV) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT, OR 
  

 18 

 
(V) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, IN EACH OF CASES (I) THROUGH (V) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND
(B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO ABOVE. IN ANY CASE, THE HOLDER HEREOF WILL NOT, DIRECTLY OR INDIRECTLY, ENGAGE IN ANY HEDGING
TRANSACTION WITH REGARD TO THE SECURITIES EXCEPT AS PERMITTED UNDER THE SECURITIES ACT.” 
 5.1.6
Restricted Securities. The Purchaser acknowledges that the Shares and the Underlying Securities are “restricted securities” (as such term is defined in Rule 144 under the Securities Act) and must be held indefinitely unless
subsequently registered under the Securities Act or an exemption from such registration is available. 
 5.1.7
No Public Market. The Purchaser understands that no public market now exists for the Shares, and that it is unlikely that a public market will ever exist for the Shares. 

5.1.8 Access to Information. The Purchaser acknowledges that it has been afforded an opportunity to request
and to review all information considered by the Purchaser to be necessary to make an investment decision with respect to the Shares. The Purchaser has received and reviewed information about the Company and has had an opportunity to discuss the
Company’s business, management and financial affairs with its management. 
 5.1.9 Reliance Upon
Purchaser’s Representations. The Purchaser understands and acknowledges that: (a) neither the Shares nor the Underlying Securities have been registered under the Securities Act; (b) its representations and warranties
contained herein are being relied upon by the Company as a basis for exemption of the sale of the Shares under the Securities Act; (c) the offering of the Shares pursuant to this Agreement will not be registered under the Securities Act on the
ground that the sale provided for in this Agreement and the issuance of securities hereunder is exempt from the registration requirements of the Securities Act; and (d) no state or federal agency has made any finding or determination as to the
fairness of the terms of the sale of the Shares or any recommendation or endorsement thereof. If any of the representations made by the Purchaser in connection with its purchase of Shares are no longer accurate, the Purchaser will promptly notify
the Company. 
 5.1.10 Foreign Purchasers. If the Purchaser is not a United States person (as
defined by Section 7701(a)(30) of the Code), the Purchaser hereby represents and warrants that it has satisfied itself as to the full observances of the laws of its jurisdiction in connection with any invitation to subscribe for, offer and
purchase of the Shares, including (i) the legal requirements within its jurisdiction for the purchase of the Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may
need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or 

 

 19 

 
transfer of the Shares. The Purchaser’s purchase of and continued ownership of Shares, will not violate any applicable securities or other laws of the Purchaser’s jurisdiction.

 5.1.11 Exculpation. The Purchaser acknowledges that it is not relying upon any person, firm or
corporation, including, without limitation, the Company, in making its investment or decision to invest in the Company, other than the representations and warranties of the Company contained in this Agreement. 

5.1.12 Certain ERISA Matters. The Purchaser represents that the assets used to purchase the Shares will
either (a) not constitute the assets of any plan subject to Part 4 of Title I of ERISA, Section 4975 of the Code or substantially similar law; or (b) will constitute the assets of such a plan, but the acquiring, holding and
disposition of Shares will not constitute a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code, or a violation under any applicable substantially similar law. 

5.2 No Further Representations. Except for the representations and warranties expressly set forth in Article 4
of this Agreement, the Company expressly disclaims any representations or warranties of any kind, express or implied, relating to the Shares, the Company or the transactions contemplated hereby. 

ARTICLE 6 

ADDITIONAL COVENANTS 

6.1 No Integration. The Company agrees that it will not and will cause its Affiliates not to make any offer or sale of securities
of the Company of any class if, as a result of the doctrine of “integration” referred to in Rule 502 under the Securities Act, such offer or sale would render invalid (for the purpose of the sale of the Shares by the Company to the
Purchaser) the exemption from the registration requirements of the Securities Act provided by Section 4(2) thereof or otherwise. 

6.2 Underlying Securities. The Company will use its commercially reasonable efforts to cause the Underlying Securities to be
approved for supplemental listing on the New York Stock Exchange on or prior to the Closing Date and to ensure that the Underlying Securities remain authorized for listing following the Closing Date on the New York Stock Exchange or, if the
Company’s Common Stock is not listed on the New York Stock Exchange, on the U.S. national securities exchange that the Company’s Common Stock is listed on. 

6.3 Transfer Agent. The Company shall engage and maintain, at its expense, a registrar and transfer agent for the Shares and the
Common Stock. 
 6.4 Available Shares of Common Stock. The Company will reserve and keep available at all times, free of
preemptive rights, (except for the Guardian Preemptive Right), the full number of Underlying Securities. 
  

 20 

 6.5 No Restricted Resales. During the period of one year after the Second Closing
Date, the Company will not, and will not permit any of its affiliates (as defined in Rule 144 under the Securities Act) to resell any of the Shares which constitute “restricted securities” under Rule 144 that have been reacquired
by any of them. 
 6.6 Regulatory Filings. Following the Closing, in connection with the conversion of the Shares to the
extent required by applicable law, the Company and the Purchaser shall, as promptly as reasonably practicable following the Company’s receipt of a request from the Purchaser, (i) make any required filing with the U.S. Federal Trade
Commission (“FTC”), Department of Justice (“DOJ”) and any other governmental entity required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), or any other
applicable law with respect to such conversion of the Shares, (ii) as promptly as practicable make or cause their Affiliates to make any filing or notice required under any other antitrust or competition law or other law or regulation agreed by
the parties to be applicable to such conversion of the Shares and (iii) provide any supplemental information requested in connection with the HSR Act or such other antitrust, competition or other laws or regulations as promptly as practicable
after such request is made. Each of the Company and the Purchaser shall, and shall cause its Affiliates to, furnish to the other such information and assistance as the other may reasonably request in connection with its preparation of any filing or
submission which is necessary under the HSR Act or such other applicable law or which is otherwise requested by the FTC or DOJ or other governmental entity and shall keep each other apprised of the status of any communications with, and inquiries or
requests for additional information from, the FTC and DOJ or other governmental entity. 
 6.7 Rating Agency. The Company
shall use its reasonable best efforts to cause, as soon as possible and in any event within 120 days after the Closing Date, either Standard & Poor’s Rating’s Services, a division of The McGraw-Hill Companies, Inc., or
Moody’s Investor Services, Inc. to make a rating on the Shares publicly available. 
 6.8 DTC. The Company shall use
its reasonable best efforts to facilitate the delivery of the Shares through the facilities of DTC on the Closing Date and the Second Closing Date, including but not limited to causing a DTC Participant to complete and deliver to DTC an eligibility
questionnaire. 
 6.9 Stockholder Approval. The Company shall include a proposal on its proxy statement for its 2010
Annual Meeting of Stockholders scheduled to be held in August 2010 to authorize the additional issuance of Common Stock upon conversion of the Preferred Stock in excess of the number of shares that is one share fewer than the number of shares which
issuance would require stockholder approval pursuant to Section 312.03 of the New York Stock Exchange Listed Company Manual that may be required to be issued to the Holders pursuant to the terms of the Preferred Stock as set forth in the
Certificate of Designation. 
  

 21 

 ARTICLE 7 

TERMINATION 

7.1 Termination. This Agreement may be terminated at any time prior to the Closing, only in the following manner:

 (a) By mutual written agreement of the Company and the Purchaser; 

(b) By the Purchaser upon written notice to the other Parties hereto if the Closing shall not have occurred within 30 days of the date of
this Agreement; provided, that such date may be extended by the Purchaser by written notice to the Company for a period not to exceed an additional 30 days, if the reason for such extension is the failure to satisfy one or more
conditions to the Closing and the Purchaser reasonably believes that condition(s) to the Closing can be satisfied by the new termination deadline. Notwithstanding the foregoing, termination under this provision shall not be available to the
Purchaser if the Closing has not occurred solely by reason of any breach by the Purchaser under this Agreement; 
 (c) By any
Party upon written notice to the other Parties hereto, if, prior to the Closing, (i) trading in securities generally on either the New York Stock Exchange shall have been suspended or materially limited, or minimum or maximum prices shall have
been generally established on any of such stock exchanges by the SEC or the FINRA; (ii) a general banking moratorium shall have been declared by any federal or New York authority or a material disruption in commercial banking or securities
settlement or clearance services in the United States has occurred; or (iii) there shall have occurred any outbreak or escalation of national or international hostilities or any crisis or calamity, or any change in the United States or
international financial markets, or any substantial change or development involving a prospective substantial change in United States’ or international political, financial or economic conditions, as in the judgment of the Party giving notice
is material and adverse and makes it impracticable or inadvisable to proceed with the Closing or to enforce contracts for the sale of securities. 

ARTICLE 8 

MISCELLANEOUS 

8.1 Notices. Any notice, statement, demand, claim, offer or other written instrument required or permitted to be given
pursuant to this Agreement shall be in writing signed by the Party giving such notice and shall be sent by facsimile, hand messenger delivery, overnight courier service, or certified mail (receipt requested) to the other Party at the address set
forth below: 
  

 22 

	 	(a)	If to the Company, to it at: 

Kennedy-Wilson Holdings, Inc. 

9701 Wilshire Blvd., Suite 700 

Beverly Hills, CA 90212 

Facsimile: 310-887-3410 

Attention: Barry Schlesinger 

with a copy to: 

Loeb & Loeb LLP 

10100 Santa Monica Blvd., Suite 2200 

Los Angeles, CA 90067 

Facsimile: 310-919-3807 

Attention: Lawrence Venick, Esq. 
  

	 	(b)	If to the Purchaser, to it at: 

Fairfax Financial Holdings Limited 

95 Wellington Street West 

Suite 800 

Toronto, ON 

Canada M5J 2N7 

Facsimile: 416-360-4946 

Attention: Paul Rivett, Vice President and Chief Legal Officer 

with a copy to: 

Shearman & Sterling LLP 

Commerce Court West 

Suite 4405 

Toronto, ON 

Canada M5L 1E8 

Facsimile: 416-360-2958 

Attention: Stephen Centa, Esq. 

Each Party shall have the right to change the place to which notices shall be sent or delivered or to specify one
additional address to which copies of notices may be sent, in either case by similar notice sent or delivered in like manner to the other Party. 

8.2 Entire Agreement; Amendments. This Agreement constitutes the entire agreement and supersedes all prior agreements and
understandings, both written and oral, of the Parties with respect to the subject matter hereof. Any oral representations or modifications concerning this instrument shall be of no force or effect unless contained in a subsequent written
modification signed by the party to be charged. This Agreement may be amended, waived or modified only by a written instrument executed by the Parties. 
  

 23 

 8.3 Successors and Assigns. This Agreement shall be binding upon, and shall
inure to the benefit of, and shall be enforceable by, the Parties and their respective successors and permitted assigns. Neither this Agreement, nor any right hereunder, may be assigned by any Party without the prior written consent of the other
Party; except that consent shall not be required for an assignment by Purchaser to any direct or indirect subsidiary of Purchaser, provided that Purchaser shall provide written notice to the Company of any such assignment. 

8.4 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF
NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF. 

8.5 Expenses, Etc.. The Company and the Purchaser shall bear their own expenses incurred on their behalf with respect to this
Agreement and the transactions contemplated hereby; provided, that the Company shall pay the reasonable and documented fees and expenses of legal counsel to the Purchaser with respect to this Agreement and the transactions contemplated
hereby. 
 8.6 Captions. The captions contained in this Agreement are for convenience and reference only and in no
way define, describe, extend or limit the scope or intent of this Agreement or the intent of any provision contained herein. 

8.7 Severability. The invalidity or unenforceability of any section, paragraph or provision of this Agreement shall not
affect the validity or enforceability of any other section, paragraph or provision hereof. If any section, paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such
minor changes (and only such minor changes) as are necessary to make it valid and enforceable. 
 8.8
Counterparts. This Agreement may be executed in one or more counterparts, including by facsimile or PDF signature, each of which shall constitute an original but all of which, taken together, shall constitute but one agreement.

 8.9 No Waiver. Any failure of a Party to enforce any of the provisions of this Agreement or to require compliance with
any of its terms at any time during the pendency of this Agreement shall in no way affect the validity of this Agreement, or any part hereof, and shall not be deemed a waiver of the right of such Party thereafter to enforce any and each such
provision. 
  

 24 

 IN WITNESS WHEREOF, the Purchaser and the Company have caused this Agreement
to be duly executed and delivered. 
  

			
	KENNEDY-WILSON HOLDINGS, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	PURCHASER:
	
	FAIRFAX FINANCIAL HOLDINGS LIMITED
		
	By:	 	  

	Name:	 	
	Title:	 	

 EXHIBIT A 

FORM OF CERTIFICATE OF DESIGNATION FOR 6.0% CONVERTIBLE SERIES A PREFERRED STOCK 

 EXHIBIT B 

FORM OF REGISTRATION RIGHTS AGREEMENT 

 EXHIBIT C 

FORM OF OPINION OF LOEB & LOEB LLP 

 EXHIBIT D 

FORM OF OPINION OF KULIK, GOTTESMAN, MOUTON & SIEGEL LLP 

 EXHIBIT E 

COMPANY DATARegistration Rights Agreement

 Exhibit 10.2 

REGISTRATION RIGHTS AGREEMENT 

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of May 21, 2010, is entered into by and between
Kennedy-Wilson Holdings, Inc., a Delaware corporation (the “Company”), and Fairfax Holdings Limited, a corporation organized under the laws of Canada (the “Investor”). 

RECITALS 

WHEREAS, the Investor has, pursuant to the terms of the Purchase Agreement (as defined herein), agreed to purchase up to 100,000 shares
of the Company’s Series A Preferred Stock, par value $0.0001 per share and liquidation preference $1,000 per share (the “Convertible Preferred Stock”); 

WHEREAS, the Convertible Preferred Stock is convertible into common stock of the Company, par value $0.0001 per share (the
“Common Stock”); 
 WHEREAS, it is a condition to the closing of the transactions contemplated by the Purchase
Agreement that the Company and the Investor enter into this Agreement in order to grant the Investor certain registration rights with respect to the Convertible Preferred Stock and the Common Stock issuable upon conversion of the Convertible
Preferred Stock; and 
 WHEREAS, the Company and the Investor desire to define the registration rights of the Investor on the
terms and subject to the conditions set forth herein. 
 NOW, THEREFORE, in consideration of the foregoing and the covenants and
agreements contained herein, and intending to be legally bound hereby, the parties hereto hereby agree as follows: 
 Article I.
Definitions. 
 For purposes of this Agreement, the following terms have the following meanings: 

“Affiliate” has the meaning ascribed to such term in Rule 12b-2 under the Exchange Act. 

“Blackout Period” means any period during which, in accordance with Article IV, the Company is not required to
effect the filing of a Registration Statement or is entitled to postpone the preparation, filing or effectiveness or suspend the effectiveness of a Registration Statement. 

“Business Day” means any day, other than a Saturday or Sunday, on which national banking institutions in New York, New
York, are open. 
 “Common Stock” has the meaning ascribed to such term in the Recitals to this Agreement.

 “Company” has the meaning ascribed to such term in the Preamble to this Agreement. 

“Control” has the meaning ascribed to such term in Rule 405 under the Securities Act (and “Controlled” and
“Controlling” shall have correlative meanings); provided, however, that no Person will be deemed to Control another Person solely by his or her status as a director of such other Person. 

“Convertible Preferred Stock” has the meaning ascribed to such term in the Recitals to this Agreement. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and
regulations of the SEC thereunder. 

 “Filing Date” means (a) with respect to a Registration Statement to be
filed on Form S-1 (or any applicable successor form), not later than 90 days after receipt by the Company of a request for such Registration Statement and (b) with respect to a Registration Statement to be filed on Form S-3 (or any applicable
successor form), not later than 60 days after receipt by the Company of a request for such Registration Statement. 

“Free Writing Prospectus” means a free writing prospectus as defined in Rule 405 under the Securities Act. 

“Holders” means any of: (i) the Investor; (ii) any Controlled Affiliate of the Investor; and (iii) any
group (that would be deemed to be a “person” by Section 13(d)(3) of the Exchange Act with respect to securities of the Company) of which the Investor or any Person directly or indirectly Controlling or Controlled by the Investor is a
member, that is or becomes the owner of Registrable Securities. 
 “Indemnified Party” has the meaning ascribed
to such term in Section 6.3 hereof. 
 “Indemnifying Party” has the meaning ascribed to such term
in Section 6.3 hereof. 
 “Issuer Free Writing Prospectus” means an issuer free writing prospectus
as defined in Rule 433 under the Securities Act. 
 “Losses” has the meaning ascribed to such term in
Section 6.1 hereof. 
 “Other Holders” means any Person other than the Holders having rights to
participate in a registration of the Company’s securities. 
 “Permitted Free Writing Prospectus” has the
meaning ascribed to such term in Article VIII hereof. 
 “Person” means any individual, corporation,
general or limited partnership, limited liability company, joint venture, trust or other entity or association, including without limitation any governmental authority. 

“Piggyback Notice” has the meaning ascribed to such term in Section 3.1 hereof. 

“Piggyback Registration” has the meaning ascribed to such term in Section 3.1 hereof. 

“Prospectus” means the prospectus included in the applicable Registration Statement, as supplemented by any and all
prospectus supplements and as amended by any and all amendments (including post-effective amendments) and including all material incorporated by reference or deemed to be incorporated by reference in such Prospectus. 

“Purchase Agreement” means that certain 6.0% Convertible Series A Preferred Stock Purchase Agreement, dated as of
May 18, 2010, by and between the Company and the Investor. 
 “Registrable Securities” means (a) any
shares of Common Stock and any Convertible Preferred Stock held by any of the Holders now or at any time in the future (including but not limited to shares of Common Stock issued to any of the Holders upon conversion of the Convertible Preferred
Stock purchased pursuant to the Purchase Agreement); and (b) any securities paid, issued or distributed in respect of any such securities defined in clause (a) by way of stock dividend, stock split or distribution, or in connection with a
combination of shares, recapitalization, reorganization, merger or consolidation, or 
  

 2 

 
otherwise; provided, however, that as to any Registrable Securities, such securities will irrevocably cease to constitute Registrable Securities upon the earliest to occur of:
(i) the date on which such securities are disposed of pursuant to an effective registration statement under the Securities Act; (ii) the date on which such securities may be distributed to the public pursuant to Rule 144 (or any
successor provision) under the Securities Act without compliance with volume limitations or other restrictions; (iii) the date on which such securities have been transferred to any Person other than a Holder; and (iv) the date on which
such securities cease to be outstanding. 
 “Registration Default” has the meaning ascribed to such term in
Article VII hereof. 
 “Registration Expenses” has the meaning ascribed to such term in
Section 5.4(a) hereof. 
 “Registration Statement” means any registration statement of the Company
under the Securities Act that covers any of the Registrable Securities pursuant to the provisions of this Agreement, including the related Prospectus, all amendments and supplements to such registration statement (including post-effective
amendments), and all exhibits and all materials incorporated by reference or deemed to be incorporated by reference in such registration statement. 

“Required Period” means, with respect to a “shelf registration” requested pursuant to
Section 2.1(b) hereof, two years following the first day of effectiveness of such Registration Statement, and with respect to any other Registration Statement, 90 days following the first day of effectiveness of such Registration
Statement. 
 “Rule 144” means Rule 144 promulgated under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by the SEC. 
 “SEC” means the
United States Securities and Exchange Commission and any successor United States federal agency or governmental authority having similar powers. 

“Securities Act” means the Securities Act of 1933, as amended, or any successor statute, and the rules and regulations
of the SEC thereunder. 
 “Underwritten Registration” or “Underwritten Offering” means a
registration in which securities of the Company are sold to an underwriter for reoffering to the public. 
 Article II. Demand
Registration 
 2.1 Right to Demand Registration. 

(a) At any time and from time to time on or following November 13, 2010, any Holder or group of Holders representing at least 51%
(calculated on an as converted basis) of all Registrable Securities may request in writing that the Company effect the registration of all or part of such Holder’s or Holders’ Registrable Securities with the SEC under and in accordance
with the provisions of the Securities Act (which written request will specify (i) the then-current name and address of such Holder or Holders, (ii) the aggregate number of shares of Registrable Securities requested to be registered,
(iii) the total number of shares of Common Stock and amount of Convertible Preferred Stock then held by such Holder or Holders and (iv) the intended means of distribution). The Company will file a Registration Statement covering such
Holder’s or Holders’ Registrable Securities requested to be registered as promptly as practicable (and, in any event, by the applicable Filing Date) after receipt of such request; provided, however, that the Company will not
be required to take any action pursuant to this Article II: 
  

 3 

 (A) if prior to the date of such request, the Company has effected three
registrations pursuant to this Article II; 
 (B) if within the 12-month period preceding such request the
Company has effected either (1) two registrations pursuant to this Article II or (2) one registration pursuant to this Article II and a registration statement of the Company under the Securities Act has been declared
effective within the 12-month period preceding such request and at least 10% of the then-outstanding Registrable Securities (calculated on an as converted basis) were entitled pursuant to the terms of this Agreement to be included in such
registration statement; 
 (C) if a Registration Statement is effective at the time such request is made and such
Registration Statement may be utilized for the offering and sale of the Registrable Securities requested to be registered; 

(D) in the case of an Underwritten Offering, unless the Registrable Securities requested to be registered (1) have an
aggregate then-current market value of $25 million or more or aggregate liquidation preference of $25 million or more (before deducting underwriting discounts and commission) or (2) constitute all of the then-outstanding Registrable Securities
held by the Holders; or 
 (E) during the pendency of any Blackout Period. 

(b) If a Holder or Holders request that the Company effect a registration pursuant to this Section 2.1 and the Company is at
such time eligible to use Form S-3, the Holder or Holders making such request may specify that the requested registration be a “shelf registration” for an offering on a delayed or continuous basis pursuant to Rule 415 under the Securities
Act. 
 2.2 Effective Demand Registrations. 

(a) The Company may satisfy its obligations under Section 2.1 hereof by amending (to the extent permitted by applicable law)
any registration statement previously filed by the Company under the Securities Act so that such amended registration statement will permit the disposition (in accordance with the intended methods of disposition specified as aforesaid) of all of the
Registrable Securities for which a demand for registration has been properly made under Section 2.1 hereof. If the Company so amends a previously filed registration statement, it will be deemed to have effected a registration for
purposes of Section 2.1 hereof; provided that the date such registration statement is amended pursuant to this Section 2.2(a) shall be the “the first day of effectiveness” of such registration statement for
purposes of determining the Required Period with respect to such registration statement. 
 (b) A registration requested
pursuant to Section 2.1 hereof will not be deemed to be effected by the Company for purposes of Section 2.1 hereof if it has not been declared effective by the SEC or become effective in accordance with the Securities Act and
kept effective as contemplated by Section 2.3 hereof. 
  

 4 

 2.3 Continuous Effectiveness of Registration Statement. 

(a) The Company will use its reasonable efforts to keep a Registration Statement that has become effective as contemplated by this
Article II continuously effective, and not subject to any stop order, injunction or other similar order or requirement of the SEC, until the earlier of (a) the expiration of the Required Period (subject to extension pursuant to
Section 2.3(b) or Section 5.3 hereof) and (b) the date on which all Registrable Securities covered by such Registration Statement (i) have been disposed of pursuant to such Registration Statement or (ii) cease
to be Registrable Securities; provided, however, that in no event will such period expire prior to the expiration of the applicable period referred to in Section 4(3) of the Securities Act and Rule 174 promulgated thereunder.

 (b) In the event of any stop order, injunction or other similar order or requirement of the SEC relating to any Registration
Statement, the Required Period for such Registration Statement will be extended by the number of days during which such stop order, injunction or similar order or requirement is in effect. 

2.4 Underwritten Demand Registration. 

(a) In the event that a registration requested pursuant to Section 2.1 hereof is to be an Underwritten Registration, as
reasonably requested by a Holder, the Company shall in its reasonable discretion and with the consent of the Investor (which consent shall not be unreasonably withheld) select an investment banking firm of national standing to be the managing
underwriter for the Underwritten Offering relating thereto. All Holders proposing to distribute their securities through an Underwritten Offering agree to enter into an underwriting agreement with the underwriters, provided that the
underwriting agreement is in customary form and reasonably acceptable to the Holders of a majority of the Registrable Securities to be included in the Underwritten Offering. 

(b) If so requested (pursuant to a timely notice) by the managing underwriter for the Underwritten Offering relating thereto, the Company
will agree not to effect any underwritten public sale or distribution of any securities that are the same as, or similar to, the Registrable Securities to be included in the Underwritten Offering, or any securities convertible into, or exchangeable
or exercisable for, any securities of the Company that are the same as, or similar to, the Registrable Securities to be included in the Underwritten Offering, during a period specified by the managing underwriter not to exceed 30 days. 

2.5 Priority on Demand Registrations. No securities to be sold for the account of any Other Holder (including the Company) shall
be included in a registration pursuant to Section 2.1 hereof if, in the case that such registration is to be an Underwritten Registration, the managing underwriter of the Underwritten Offering relating thereto advises the Holders (or, in
the case that such registration is not to be an Underwritten Registration, the Holders requesting registration determine in good faith) that the total amount of Registrable Securities requested to be registered, together with such other securities
that the Company and any Other Holders propose to include in such offering is such as to adversely affect the success of such offering, then the Company will include in such registration all Registrable Securities requested to be included therein,
up to the full amount that, in the view of such managing underwriter or such Holders requesting registration, as the case may be, can be sold without adversely affecting the success of such offering, before including any securities of any Person
(including the Company) other than the Holder(s) making such request. 
 2.6 Revocation of Demand Registration. Holders
of at least a majority of the Registrable Securities to be included in a Registration Statement pursuant to Section 2.1 hereof may, at any time prior to the effective date of the Registration Statement relating to such registration,
revoke their request to 
  

 5 

 
have Registrable Securities included therein by providing a written notice to the Company. In the event such Holders of Registrable Securities revoke such request, either (a) the Holders of
Registrable Securities who revoke such request shall reimburse the Company for all of its out-of-pocket expenses incurred in the preparation, filing and processing of the Registration Statement or (b) the requested registration that has been
revoked will be deemed to have been effected for purposes of Section 2.1 hereof. 
 Article III. Piggyback Registration

 3.1 Right to Piggyback. If at any time, and from time to time, the Company proposes to file a registration statement
under the Securities Act with respect to an offering of any class of equity securities of the Company or any securities convertible or exercisable into shares of any equity securities of the Company (other than with respect to that certain
registration statement on Form S-3, as amended, originally filed by the Company with the SEC on February 16, 2010 or a registration statement (a) on Form S-8 or any successor form thereto, (b) on Form S-4 or any successor form
thereto relating solely to the sale of securities to employees, directors, officers, consultants or advisors of the Company or its Affiliates pursuant to a stock option, stock purchase or similar benefit plan, (c) an offering of rights
solely to the Company’s existing securityholders or (d) relating solely to a transaction under Rule 145 under the Securities Act), whether or not for its own account, on a form that would permit registration of Registrable Securities for
sale to the public under the Securities Act, then the Company will give written notice (the “Piggyback Notice”) of such proposed filing to the Holders at least 10 Business Days before the anticipated filing date. Such notice will
include the number and class of securities proposed to be registered, the proposed date of filing of such registration statement, any proposed means of distribution of such securities, any proposed managing underwriter of such securities and a good
faith estimate by the Company of the proposed maximum offering price of such securities as such price is proposed to appear on the facing page of such registration statement, and will offer the Holders the opportunity to register such amount of
Registrable Securities as each Holder may request on the same terms and conditions as the registration of the Company’s or Other Holders’ securities, as the case may be (a “Piggyback Registration”). The Company will
include in each Piggyback Registration all Registrable Securities for which the Company has received written requests for inclusion within five Business Days after delivery of the Piggyback Notice, subject to Section 3.2. 

3.2 Priority on Piggyback Registrations. 

(a) If the Piggyback Registration is an Underwritten Offering, the Company will cause the managing underwriter of that proposed offering
to permit the Holders that have requested Registrable Securities to be included in the Piggyback Registration to include all such Registrable Securities on the same terms and conditions as any similar securities, if any, of the Company.
Notwithstanding the foregoing, if the managing underwriter of such Underwritten Offering advises the Company and the selling Holders that, in its view, the total amount of securities that the Company, such Holders and any Other Holders propose to
include in such offering is such as to adversely affect the success of such Underwritten Offering, then: 
 (i)
if such Piggyback Registration is a primary registration by the Company for its own account, the Company will include in such Piggyback Registration: (A) first, all securities to be offered by the Company; (B) second, (1) if
Registrable Securities constitute 10% or more of the outstanding securities of any class of equity securities of the Company or class of securities convertible or exercisable into shares of any equity securities of the Company, up to the full amount
of securities requested to be included in such Piggyback Registration by the Holders, or (2) if Registrable Securities constitute less than 10% of the outstanding securities of any class of equity securities of the Company or class of
securities convertible or exercisable into shares of 
  

 6 

 
any equity securities of the Company, up to the full amount of securities requested to be included in such Piggyback Registration by the Holders and any Other Holders having registration rights
on a pari passu basis, allocated pro rata among such holders, on the basis of the amount of securities requested to be included therein by each such holder; and (C) third, up to the full amount of securities requested to be
included in such Piggyback Registration by any Other Holders in accordance with the priorities, if any, then existing among the Company and the Other Holders so that the total amount of securities to be included in such Underwritten Offering is the
full amount that, in the view of such managing underwriter, can be sold without adversely affecting the success of such Underwritten Offering; and 

(ii) if such Piggyback Registration is an underwritten secondary registration for the account of holders of securities of
the Company, the Company will include in such registration: (A) first, all securities of the Persons exercising “demand” registration rights requested to be included therein; (B) second, up to the full amount of securities
proposed to be included in the registration by the Company, (C) third, up to the full amount of securities requested to be included in such Piggyback Registration by the Holders and any Other Holders having registration rights on a pari
passu basis, allocated pro rata among such Holders and Other Holders, on the basis of the amount of securities requested to be included therein by each such Holder and Other Holder; and (D) fourth, up to the full amount of securities
requested to be included in such Piggyback Registration by the Other Holders in accordance with the priorities, if any, then existing among the Company and the Other Holders so that the total amount of securities to be included in such Underwritten
Offering is the full amount that, in the view of such managing underwriter, can be sold without adversely affecting the success of such Underwritten Offering. 

(b) If so requested (pursuant to a timely notice) by the managing underwriter in any Underwritten Offering, the Holders participating in
such Underwritten Offering will agree not to effect any public sale or distribution (or any other type of sale as the managing underwriter reasonably determines is appropriate in order to not adversely affect the Underwritten Offering) of any such
Registrable Securities, including a sale pursuant to Rule 144 (but excluding any Registrable Securities included in such Underwritten Offering), during the 10 days prior to, and during a period specified by the managing underwriter not to exceed 30
days (or such additional period as the managing underwriter reasonably determines is appropriate in order to not adversely affect the Underwritten Offering) following, the closing date of such Underwritten Offering. In the event of such a request,
the Company may impose, during such period, appropriate stop-transfer instructions with respect to the Registrable Securities subject to such restrictions. 

3.3 Withdrawal of Piggyback Registration. 

(a) If at any time after giving the Piggyback Notice and prior to the effective date of the Registration Statement filed in connection
with the Piggyback Registration, the Company determines for any reason not to register or to delay the Piggyback Registration, the Company may, at its election, give notice of its determination to all Holders, and in the case of a determination not
to register, will be relieved of its obligation to register any Registrable Securities in connection with the abandoned Piggyback Registration, without prejudice, provided, however, that such Registration Statement will not be counted
for purposes of Section 2.1 hereof. 
 (b) Any Holder of Registrable Securities requesting to be included in a
Piggyback Registration may withdraw its request for inclusion by giving written notice to the Company of its intention to withdraw from that registration, provided, however, that (i) the Holder’s request be made in

  

 7 

 
writing and (ii) the withdrawal will be irrevocable and, after making the withdrawal, a Holder will no longer have any right to include its Registrable Securities in that Piggyback
Registration. 
 (c) An election by the Company to withdraw a Piggyback Registration under this Section 3.3 shall
not be deemed to be a breach of the Company’s obligations with respect to such Piggyback Registration. 
 3.4
Most-Favored-Nations for Piggyback Registration. If the Company grants any Person any rights with respect to the registration of any shares of equity securities of the Company or any securities convertible or exercisable into shares of any
equity securities of the Company that are more favorable to such Person than the rights of the Holders set forth in this Agreement, then the Company shall grant to the Holders the same rights granted to such other Person. 

Article IV. Blackout Period 

4.1 Demand Blackout. Notwithstanding anything contained in Article II hereof to the contrary, if (a) at any time during
which Holders may request a registration pursuant to Section 2.1 hereof, the Company files or proposes to file a registration statement with respect to an offering of equity securities of the Company or securities convertible or
exercisable into shares of any equity securities of the Company for its own account and (b) with reasonable prior notice (i) the Company (in the case of an offering that is not an Underwritten Offering) advises the Holders that the Company
has determined in good faith that a sale or distribution of Registrable Securities would adversely affect such offering or (ii) the managing underwriter, if any, advises the Company (in which case the Company will notify the Holders) that a
sale or distribution of Registrable Securities would adversely affect such offering, then the Company will not be obligated to effect the initial filing of a Registration Statement pursuant to Section 2.1 beginning the 10 days prior to
the date the Company in good faith estimates will be the date of the filing of, and ending on the date which is 90 days following the effective date of, such registration statement. 

4.2 Demand and Piggyback Blackout. Notwithstanding anything contained in Articles II or III hereof to the contrary,
if the Board of Directors of the Company determines in good faith that the registration and distribution of Registrable Securities (a) would materially impede, delay or interfere with any financing, acquisition, corporate reorganization or
other significant transaction, or any negotiations, discussions or pending proposals with respect thereto, involving the Company or any of its subsidiaries or (b) would require disclosure of material nonpublic information, the disclosure of
which would materially and adversely affect the Company, the Company will promptly give the Holders notice of such determination and will be entitled to postpone the preparation, filing or effectiveness or suspend the effectiveness of a Registration
Statement for a reasonable period of time not to exceed 90 days. 
 4.3 Blackout Period Limits. Notwithstanding anything
contained in this Article IV to the contrary, in no event shall the number of days included in all Blackout Periods during any consecutive 12-month period exceed an aggregate of 120 days and in no event shall the Company be entitled to
postpone the preparation, filing or effectiveness or suspend the effectiveness of a Registration Statement pursuant to this Article IV unless it postpones or suspends during the Blackout Period the effectiveness of any registration statements
required pursuant to the registration rights of the Other Holders. 
 Article V. Procedures and Expenses 

5.1 Registration Procedures. In connection with the Company’s registration obligations pursuant to Articles II and
III hereof, the Company will use its reasonable efforts to effect such registrations to permit the sale of Registrable Securities by a Holder in accordance with the intended 

 

 8 

 
method or methods of disposition thereof, and pursuant thereto the Company will as promptly as reasonably practicable: 

(a) prepare and file with the SEC a Registration Statement on an appropriate form under the Securities Act available for the sale of the
Registrable Securities by the selling Holders in accordance with the intended method or methods of distribution thereof; provided, however, that the Company will, before filing, furnish to each selling Holder and the managing
underwriter, if any, copies of the Registration Statement or Prospectus proposed to be filed and provide each selling Holder, the managing underwriter, if any, and their counsel with a reasonable opportunity to comment on such Registration Statement
or Prospectus; 
 (b) furnish, at its expense, to the selling Holders such number of conformed copies of the Registration
Statement and each amendment thereto, of the Prospectus and each supplement thereto, and of such other documents as the selling Holders reasonably may request from time to time; 

(c) subject to Section 2.3 hereof, prepare and file with the SEC any amendments and post-effective amendments to the
Registration Statement as may be necessary and any supplements to the Prospectus as may be required or appropriate, in the view of the Company and its counsel, by the rules, regulations or instructions applicable to the registration form used by the
Company or by the Securities Act to keep the Registration Statement effective until the earlier of (i) such time as all Registrable Securities covered by the Registration Statement are sold in accordance with the intended plan of distribution
set forth in the Registration Statement or supplement to the Prospectus and (ii) the termination of the Required Period (giving effect to any extensions thereof pursuant to Section 2.3(b) or Section 5.3 hereof);

 (d) promptly following its actual knowledge thereof, notify the selling Holders and the managing underwriter, if any:

 (i) when a Registration Statement, Prospectus, Issuer Free Writing Prospectus or any supplement or amendment
has been filed and, with respect to a Registration Statement or any post-effective amendment, when the same has become effective; 

(ii) of any request by the SEC or any other governmental authority for amendments or supplements to a Registration
Statement, Prospectus or Issuer Free Writing Prospectus or for additional information; 
 (iii) of the issuance
by the SEC or any other governmental authority of any stop order suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose; 

(iv) of the receipt by the Company of any written notification with respect to the suspension of the qualification or
exemption from qualification of any of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; 

(v) of the occurrence of any event which makes any statement made in the Registration Statement or Prospectus or any
Issuer Free Writing Prospectus untrue in any material respect or which requires the making of any changes in a Registration Statement, Prospectus, Issuer Free Writing Prospectus or other documents so that it will not include an untrue statement of a
material fact or omit to state any material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading; and 

 

 9 

 (vi) of the Company’s reasonable determination that a post-effective
amendment to a Registration Statement is necessary; 
 (e) use its reasonable efforts to prevent the issuance or obtain the
withdrawal of any order suspending the effectiveness of a Registration Statement, or the lifting of any suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, at the
earliest practicable date; 
 (f) prior to any public offering of Registrable Securities, register or qualify and cooperate with
the selling Holders, the managing underwriter, if any, and their respective counsel in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under
the securities or blue sky laws of such jurisdictions within the United States as the selling Holders or the managing underwriter reasonably requests in writing and maintain each registration or qualification (or exemption therefrom) effective
during the period such Registration Statement is required to be kept effective; provided, however, that the Company will not be required to qualify generally to do business in any jurisdiction in which it is not then so qualified or
take any action which would subject it to general service of process or material taxation in any jurisdiction in which it is not then so subject; 

(g) as promptly as practicable upon the occurrence of any event contemplated by Sections 5.1(d)(v) or 5.1(d)(vi) hereof,
prepare (and furnish, at its expense, to the selling Holders a reasonable number of copies of) a supplement or post-effective amendment to each Registration Statement or a supplement to the related Prospectus (including by means of an Issuer Free
Writing Prospectus), or file any other required document so that, as thereafter delivered to the purchasers of the Registrable Securities being sold thereunder, such Prospectus or Issuer Free Writing Prospectus will not include an untrue statement
of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; 

(h) in the case of an Underwritten Offering, enter into customary agreements (including an underwriting agreement) and take other actions
reasonably necessary to expedite the disposition of the Registrable Securities, and in connection therewith: 

(i) use its reasonable efforts to obtain opinions of counsel to the Company (such counsel being reasonably satisfactory to
the managing underwriter, if any) and updates thereof covering matters customarily covered in opinions of counsel requested in Underwritten Offerings, addressed to each selling Holder and the managing underwriter; 

(ii) use its reasonable efforts to obtain “comfort” letters and updates thereof from the independent certified
public accountants of the Company addressed to each selling Holder and the managing underwriter, if any, covering matters customarily covered in “comfort” letters in connection with Underwritten Offerings; and 

(iii) provide officers’ certificates and other customary closing documents reasonably requested by the managing
underwriter; 
 (i) upon reasonable notice and at reasonable times during normal business hours, make available for inspection
by a representative of each selling Holder and the managing underwriter, if any, participating in any disposition of Registrable Securities and any attorney or accountant retained by any selling Holder or any underwriter, all financial and other
records, pertinent corporate documents and properties of the Company, and cause the officers, directors and employees of the Company to supply all 

 

 10 

 
information reasonably requested by any such representative, underwriter, attorney or accountant in connection with the Registration Statement; 

(j) use its reasonable efforts to comply with all applicable rules and regulations of the SEC relating to such registration and make
generally available to its security holders earning statements satisfying the provisions of Section 11(a) of the Securities Act, provided that the Company will be deemed to have complied with this Section 5.1(j) if it has
satisfied the provisions of Rule 158 under the Securities Act (or any similar rule promulgated under the Securities Act); 
 (k)
with respect to Registrable Securities that are shares of Common Stock, use its reasonable efforts to cause all such Registrable Securities to be listed on the New York Stock Exchange or such other exchange that the Common Stock is then listed on;
and 
 (l) use its reasonable efforts to procure the cooperation of the Company’s transfer agent or The Depository Trust
Company, as applicable, in settling any offering or sale of Registrable Securities. 
 5.2 Information from Holders.

 (a) Each selling Holder that has requested inclusion of its Registrable Securities in any Registration Statement shall furnish
to the Company such information regarding such Holder and its plan and method of distribution of such Registrable Securities as the Company may, from time to time, reasonably request in writing. The Company may refuse to proceed with the
registration of such Holder’s Registrable Securities if such Holder unreasonably fails to furnish such information within a reasonable time after receiving such request. 

(b) Each selling Holder will promptly (i) following its actual knowledge thereof, notify the Company of the occurrence of any event
that makes any statement made in a Registration Statement, Prospectus, Issuer Free Writing Prospectus or other Free Writing Prospectus regarding such selling Holder untrue in any material respect or that requires the making of any changes in a
Registration Statement, Prospectus or Free Writing Prospectus so that, in such regard, it will not include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading and (ii) provide the Company with such information as may be required to enable the Company to prepare a supplement or post-effective amendment to any such Registration Statement or a
supplement to such Prospectus or Free Writing Prospectus. 
 (c) With respect to any Registration Statement for an Underwritten
Offering, the inclusion of a Holder’s Registrable Securities therein will be conditioned, at the managing underwriter’s request, upon the execution and delivery by such Holder of an underwriting agreement in form, scope and substance as is
customary in Underwritten Offerings. 
 5.3 Suspension of Disposition. 

(a) Each selling Holder will be deemed to have agreed that, upon receipt of any notice from the Company of the occurrence of any event of
the type described in Sections 5.1(d)(ii), 5.1(d)(iii), 5.1(d)(iv), 5.1(d)(v) or 5.1(d)(vi) hereof, such Holder will discontinue disposition of Registrable Securities covered by a Registration Statement,
Prospectus or Free Writing Prospectus and suspend use of such Prospectus or Free Writing Prospectus until such Holder’s receipt of the copies of the supplemented or amended Prospectus or Issuer Free Writing Prospectus contemplated by
Section 5.1(g) hereof or until it is advised by the Company that the use of the applicable Prospectus or Free Writing 

 

 11 

 
Prospectus may be resumed and have received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Free Writing
Prospectus. In the event the Company shall give any such notice, the period of time for which a Registration Statement must remain effective as set forth in Section 2.3 hereof will be extended by the number of days during the time period
from and including the date of the giving of such notice to and including the date when each selling Holder of Registrable Securities covered by such Registration Statement has received (i) the copies of the supplemented or amended Prospectus
or Issuer Free Writing Prospectus contemplated by Section 5.1(g) hereof or (ii) the advice referenced in this Section 5.3(a). 

(b) Each selling Holder will be deemed to have agreed that, upon receipt of any notice from the Company of the happening of an event
specified in Section 4.2 hereof, such selling Holder will discontinue disposition of Registrable Securities covered by a Registration Statement, Prospectus or Free Writing Prospectus and suspend use of such Prospectus or Free Writing
Prospectus until the earlier to occur of the Holder’s receipt of (i) copies of a supplemented or amended Prospectus or Issuer Free Writing Prospectus describing the event giving rise to the aforementioned suspension and
(ii) (A) notice from the Company that the use of the applicable Prospectus or Issuer Free Writing Prospectus may be resumed and (B) copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by
reference in such Prospectus or Issuer Free Writing Prospectus; provided, however, that in no event will the number of days during which the offer and sale of Registrable Securities is discontinued pursuant to this
Section 5.3(b) during any consecutive 12-month period, together with any other Blackout Periods in such 12-month period, exceed an aggregate of 120 days. In the event the Company gives any such notice, the period of time for which a
Registration Statement must remain effective as set forth in Section 2.3 hereof will be extended by the number of days during the time period from and including the date of giving of such notice to and including the date when each
selling Holder of Registrable Securities covered by such Registration Statement receives (i) a supplemented or amended Prospectus or Issuer Free Writing Prospectus describing the event giving rise to the aforementioned suspension or
(ii) notice from the Company that use of the applicable Prospectus or Issuer Free Writing Prospectus may resume. 
 5.4
Registration Expenses. 
 (a) All fees and expenses incurred by the Company in complying with Articles II and
III hereof and Section 5.1 hereof (“Registration Expenses”) will be borne by the Company. These fees and expenses will include without limitation (i) all registration, filing and qualification fees,
(ii) printing, duplicating and delivery expenses, (iii) fees and disbursements of counsel for the Company, (iv) fees and expenses of complying with state securities or “blue sky” laws (including the fees and expenses of any
local counsel in connection therewith), (v) fees and disbursements of all independent certified public accountants referred to in Section 5.1(h)(ii) hereof (including the expenses of any special audit and “comfort” letters
required by or incident to such performance) and (vi) fees and expenses in connection with listing the Registrable Securities on the New York Stock Exchange, if applicable. 

(b) The Company will also reimburse or pay, as the case may be, the fees and out-of-pocket expenses of one law firm retained by all
Holders, considered collectively, within 10 days of presentation of a detailed invoice approved by the Investor. 
 (c)
Notwithstanding anything contained herein to the contrary, all underwriting fees, discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable Securities will be borne by the Holder owning such Registrable
Securities. 
  

 12 

 Article VI. Indemnification 

6.1 Indemnification by the Company. The Company will indemnify and hold harmless, to the fullest extent permitted by law, each
Holder owning Registrable Securities registered pursuant to this Agreement, such Holder’s Affiliates, officers, directors, managers, partners, stockholders, employers, advisors, agents and other representatives, and each Person who controls
such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) from and against all losses, claims, damages, liabilities, costs (including without limitation reasonable attorneys’ fees and
disbursements) and expenses (collectively, “Losses”) arising out of or based upon any untrue or alleged untrue statement of a material fact contained or incorporated by reference in any Registration Statement, Prospectus or
preliminary prospectus or Issuer Free Writing Prospectus, or arising out of or based upon any omission or alleged omission to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading, except insofar as the same are based solely upon information furnished in writing to the Company by or on behalf of such Holder expressly for use therein. The indemnity provided in this Section 6.1
shall survive any transfer or disposal of the Registrable Securities by the Holders. 
 6.2 Indemnification by Holders.
In the event of the filing of any registration statement relating to the registration of any Registrable Securities, each Holder (severally and not jointly) will indemnify and hold harmless, to the fullest extent permitted by law, the Company, its
Affiliates, officers, directors, managers, partners, stockholders, employers, advisors, agents and other representatives, and each Person who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act) from and against all Losses arising out of or based upon any untrue or alleged untrue statement of a material fact contained or incorporated by reference in any Registration Statement, Prospectus or preliminary prospectus or Issuer
Free Writing Prospectus, or arising out of or based upon any omission or alleged omission of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, 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 information so furnished in writing by or on behalf of such Holder to the Company
expressly for use in such Registration Statement, Prospectus or preliminary prospectus or Issuer Free Writing Prospectus. In no event will the liability of any Holder be greater in amount than the dollar amount of the net proceeds (after any
discounts, commissions, transfer taxes, fees and expenses) received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation. 

6.3 Conduct of Indemnification Proceedings. If any Person becomes entitled to indemnity hereunder (an “Indemnified
Party”), such Indemnified Party will give prompt notice to the party from which indemnity is sought (the “Indemnifying Party”) of any claim or of the commencement of any action or proceeding with respect to which the
Indemnified Party seeks indemnification or contribution pursuant hereto; provided, however, that the failure to so notify the Indemnifying Party will not relieve the Indemnifying Party from any obligation or liability except to the
extent that the Indemnifying Party has been prejudiced materially by such failure. If such an action or proceeding is brought against the Indemnified Party, the Indemnifying Party will be entitled to participate therein and, to the extent it may
elect by written notice delivered to the Indemnified Party promptly after receiving the notice referred to in the immediately preceding sentence, to assume the defense thereof with counsel reasonably satisfactory to the Indemnified Party.
Notwithstanding the foregoing, the Indemnified Party will have the right to employ its own counsel in any such case, but the fees and expenses of that counsel will be at the expense of the Indemnified Party unless (a) the employment of the
counsel has been authorized in writing by the Indemnifying Party, (b) the Indemnifying Party has not employed counsel to take charge of such action or proceeding within a reasonable time after notice of commencement thereof or (c) the
Indemnified Party reasonably concludes, based upon the opinion of counsel, that there are defenses or actions available to it 
  

 13 

 
which are different from or in addition to those available to the Indemnifying Party which, if the Indemnifying Party and the Indemnified Party were to be represented by the same counsel, could
result in a conflict of interest for such counsel or materially prejudice the prosecution of defenses or actions available to the Indemnified Party. If any of the events specified in clause (a), (b) or (c) of the immediately preceding
sentence are applicable, then the reasonable fees and expenses of separate counsel for the Indemnified Party will be borne by the Indemnifying Party; provided, however, that in no event will the Indemnifying Party be liable for the
fees and expenses of more than one separate firm for all Indemnified Parties. If, in any case, the Indemnified Party employs separate counsel, the Indemnifying Party will not have the right to direct the defense of the action or proceeding on behalf
of the Indemnified Party. All fees and expenses required to be paid to the Indemnified Party pursuant to this Article VI will be paid periodically during the course of the investigation or defense, as and when reasonably itemized bills
therefor are delivered to the Indemnifying Party in respect of any particular Loss that is incurred. Notwithstanding anything contained in this Section 6.3 to the contrary, an Indemnifying Party will not be liable for the settlement of
any action or proceeding effected without its prior written consent. The Indemnifying Party will not, without the consent of the Indemnified Party (which consent will not be unreasonably withheld), consent to entry of any judgment or enter into any
settlement or otherwise seek to terminate any action or proceeding in which any Indemnified Party is or could be a party and as to which indemnification or contribution could be sought by such Indemnified Party under this Article VI,
unless such judgment, settlement or other termination provides solely for the payment of money and includes as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release, in form and substance
reasonably satisfactory to the Indemnified Party, from all liability in respect of such claim or litigation for which such Indemnified Party would be entitled to indemnification hereunder. 

6.4 Contribution, etc. 

(a) If the indemnification provided for in this Article VI is unavailable to an Indemnified Party under
Sections 6.1 or 6.2 hereof in respect of any Losses or is insufficient to hold the Indemnified Party harmless, then each applicable Indemnifying Party (severally and not jointly), in lieu of indemnifying the Indemnified Party,
will contribute to the amount paid or payable by the Indemnified Party as a result of the Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party or Indemnifying Parties, on the one hand, and the
Indemnified Party, on the other hand, in connection with the actions, statements or omissions that resulted in the Losses as well as any other relevant equitable considerations. The relative fault of the Indemnifying Party or Indemnifying Parties,
on the one hand, and the Indemnified Party, on the other hand, will 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 of a material fact, has been taken or made by, or related to information supplied by, the Indemnifying Party or Indemnifying Parties or the Indemnified Party, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such action, statement or omission. 
 (b) The parties hereto agree that it would not be just
and equitable if contribution pursuant to this Section 6.4 were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately
preceding paragraph. Notwithstanding anything contained in this Section 6.4 to the contrary, an Indemnifying Party that is a selling Holder will not be required to contribute any amount in excess of the amount by which the total net
proceeds (after any discounts, commissions, transfer taxes, fees and expenses) received by such Holder upon the sale of the Registrable Securities exceeds the amount of any damages which such selling Holder has, in the aggregate, otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the 

 

 14 

 
meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. 

Article VII. Default Payment 

If (a) any Registration Statement is not filed within the time periods specified herein, (b) any Registration Statement is not
declared effective by the SEC or does not otherwise become effective on or prior to its required effectiveness date, (c) the Company fails to file with the SEC a request for acceleration in accordance with Rule 461 under the Securities Act
within ten Business Days of the date on which the Company is notified (orally or in writing, whichever is earlier) by the SEC that a Registration Statement will not be reviewed or is not subject to further review, or (d) after it has been
declared effective, such Registration Statement or related prospectus ceases for any reason to be effective and available to the Holders as to all Registrable Securities to which it is required to cover for more than an aggregate of 10 Business Days
((in each case, except as specifically permitted herein) (each, a “Registration Default”), then the Company shall make a special payment to Holders in an amount equal to 1.50% per annum of the liquidation preference of each
share of Convertible Preferred Stock (and in the case of Registrable Securities that are Common Stock following conversion of the Convertible Preferred Stock, such amount shall be equal to 1.50% per annum of the liquidation preference of the
Convertible Preferred Stock that was converted into such Common Stock), payable in cash. Special payments shall accrue from the date of the applicable Registration Default until such Registration Default has been cured, and shall be payable
quarterly in arrears on each March 31, June 30, September 30 and December 31 following such Registration Default to the record holder of the Convertible Preferred Stock or Common Stock, as applicable, on the date that
is 15 days prior to such payment date, until paid in full. Special payments payable in respect of any Registration Default shall be computed on the basis of a 365-day year and the actual number of days elapsed. Special payments shall be payable only
with respect to a single Registration Default at any given time, notwithstanding the fact that multiple Registration Defaults may have occurred and be continuing. Notwithstanding anything in this Article VII to the contrary: (i) in no
event shall a Registration Default be deemed to have occurred and be continuing during any Blackout Period permitted hereunder and (ii) the Company shall not be liable for special payments under this Agreement as to any Registrable Securities
which: (A) are not permitted by the SEC to be included in a Registration Statement or (B) may be sold by the Holders pursuant to Rule 144 without compliance with volume limitations or other restrictions as determined by counsel to the
Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Company’s transfer agent and the affected Holders. 

Article VIII. Free Writing Prospectuses 

Each Holder represents that it has not prepared or had prepared on its behalf or used or referred to, and agrees that it will not prepare
or have prepared on its behalf or use or refer to, any Free Writing Prospectus, and has not distributed and will not distribute any written materials in connection with the offer or sale of Common Stock or Convertible Preferred Stock without the
prior written consent of the Company and, in connection with any Underwritten Offering, the underwriters. Any such Free Writing Prospectus consented to by the Company and the underwriters, as the case may be, is hereinafter referred to as a
“Permitted Free Writing Prospectus.” The Company represents and agrees that it has treated and will treat, as the case may be, each Permitted Free Writing Prospectus as an Issuer Free Writing Prospectus, including in respect of
timely filing with the SEC, legending and record keeping. 
 Article IX. Rule 144 

To the extent the following make available the benefits of certain rules and regulations of the SEC which may permit the sale of
unregistered securities to the public without registration or pursuant to 
  

 15 

 
a registration on Form S-3, the Company agrees to (a) make and keep public information available as those terms are understand and defined in Rule 144; (b) use its reasonable efforts to
file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act; (c) furnish to any Holder promptly upon written request a written statement by the Company as to its
compliance with the reporting requirements of Rule 144 and of the Securities Act and the Exchange Act, a copy of the most recent annual or quarterly report of the Company and such other reports and documents as any Holder reasonably may request in
availing itself of any rule or regulation of the SEC allowing such Holder to sell any Registrable Securities without registration; and (d) take such other actions as may be reasonably required by the Company’s transfer agent to consummate
any distribution of Registrable Securities in accordance with the terms and conditions of Rule 144. 
 Article X. Participation in
Underwritten Offerings 
 Notwithstanding anything contained herein to the contrary, no Person may participate in any
Underwritten Offering pursuant to a registration hereunder unless that Person (a) agrees to sell its securities on the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements and
(b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements. 

Article XI. Miscellaneous 

11.1 Notices. All notices and other communications in connection with this Agreement shall be in writing and will be deemed given
(and will be deemed to have been duly given upon receipt) if delivered personally, sent via facsimile (with confirmation), mailed by registered or certified mail (return receipt requested) or delivered by an express courier (with confirmation) to
the parties at the following addresses (or at such other address for a party as will be specified by like notice): 
  

	 	(a)	If to the Company: 

Kennedy-Wilson Holdings, Inc. 

9701 Wilshire Blvd., Suite 700 

Beverly Hills, California 90212 

Facsimile: 310-887-3410 

Attention: Barry Schlesinger 

with a copy to: 

Loeb & Loeb LLP 

10100 Santa Monica Blvd., Site 2200 

Los Angeles, California 90067 

Facsimile: 310-919-3807 

Attention: Lawrence Venick, Esq. 
  

	 	(b)	If to the Investor: 

 Fairfax
Financial Holdings Limited 
 95 Wellington Street West 

Suite 800 

Toronto, ON 

Canada M5J 2N7 

 

 16 

 
Facsimile: 416-360-4946 
 Attention: Paul Rivett, Vice President and
Chief Legal Officer 
 with a copy to: 

Shearman & Sterling LLP 

Commerce Court West 

Suite 4405 

Toronto, ON 

Canada M5L 1E8 

Facsimile: 416-360-2958 

Attention: Stephen Centa, Esq. 

(c) If to any Holder (other than the Investor), to such Holder’s address on file with the Company’s transfer agent. 

11.2 Confidentiality. Each Holder will, and will cause its officers, directors, employees, legal counsel, accountants, financial
advisors and other representatives to, hold in confidence any material nonpublic information received by them pursuant to this Agreement, including without limitation any material nonpublic information included in any Registration Statement,
Prospectus or Issuer Free Writing Prospectus proposed to be filed with the SEC (until such Registration Statement, Prospectus or Issuer Free Writing Prospectus has been filed) or provided pursuant to Section 5.1(i) hereof. This
Section 11.2 shall not apply to any information which (a) is or becomes generally available to the public, (b) was already in the Holder’s possession from a non-confidential source prior to its disclosure by the Company,
(c) is or becomes available to the Holder on a non-confidential basis from a source other than the Company, provided that such source is not known by the Holder to be bound by confidentiality obligations or (d) is required to be disclosed
by law. 
 11.3 Assignment; Third Party Beneficiaries. Neither this Agreement nor any of the rights, interests or
obligations under this Agreement may be assigned by any of the parties (whether by operation of law or otherwise) without the prior written consent of the other party. This Agreement will be binding upon, inure to the benefit of and be enforceable
by each of the parties and their respective successors and assigns. This Agreement (including the documents and instruments referred to in this Agreement) is not intended to and does not confer upon any person other than the parties hereto any
rights or remedies under this Agreement. 
 11.4 Entire Agreement. This Agreement (including the documents and
instruments referred to in this Agreement) constitutes the entire agreement of the parties and supersedes all prior agreements and understandings, whether written or oral, between the parties with respect to the subject matter of this Agreement,
except that the parties hereto acknowledge that any confidentiality agreements heretofore executed among the parties shall continue in full force and effect. 

11.5 Waivers and Amendments. This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms
and conditions of this Agreement may be waived, only by a written instrument signed by the Investor and the Company or, in the case of a waiver, by the party waiving compliance. No delay on the part of any party in exercising any right, power or
privilege pursuant to this Agreement will operate as a waiver thereof, nor will any waiver on the part of any party of any right, power or privilege pursuant to this Agreement, nor will any single or partial exercise of any right, power or privilege
pursuant to this Agreement, preclude any other or further exercise thereof or the exercise of any other right, power or privilege pursuant to this Agreement. The rights and remedies 

 

 17 

 
provided pursuant to this Agreement are cumulative and are not exclusive of any rights or remedies which any party otherwise may have at law or in equity. 

11.6 Counterparts. This Agreement may be executed in any number of counterparts, all of which will be considered one and the same
agreement and will become effective when counterparts have been signed by each of the parties and delivered to the other party (including via facsimile or other electronic transmission), it being understood that each party need not sign the same
counterpart. 
 11.7 Governing Law; Venue. 

(a) THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK. 

(b) To the fullest extent permitted by applicable law, each party hereto (i) agrees that any claim, action or proceeding by such
party seeking any relief whatsoever arising out of, or in connection with, this Agreement or the transactions contemplated hereby shall be brought only in the United States District Court for the Southern District of New York and in any New York
State court located in the Borough of Manhattan and not in any other State or Federal court in the United States of America or any court in any other country, (ii) agrees to submit to the exclusive jurisdiction of such courts located in the
State of New York for purposes of all legal proceedings arising out of, or in connection with, this Agreement or the transactions contemplated hereby, and (iii) irrevocably waives any objection which it may now or hereafter have to the laying
of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum. 

11.8 Headings. The headings in this Agreement are for reference purposes only and will not in any way affect the meaning or
interpretation of this Agreement. 
 11.9 Specific Performance. The parties acknowledge and agree that any breach of the
terms of this Agreement would give rise to irreparable harm for which money damages would not be an adequate remedy, and, accordingly, the parties agree that, in addition to any other remedies, each will be entitled to enforce the terms of this
Agreement by a decree of specific performance without the necessity of proving the inadequacy of money damages as a remedy and without the necessity of posting bond. 

[Signature Page Follows] 
  

 18 

 IN WITNESS WHEREOF, the parties have caused this Registration Rights Agreement to be
executed and delivered by their duly authorized representatives as of the date first written above. 
  

			
	KENNEDY-WILSON HOLDINGS, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	FAIRFAX FINANCIAL HOLDINGS LIMITED
		
	By:	 	  

	Name:	 	
	Title:	 	

 [Signature Page to the Registration Rights Agreement]

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