Document:

exv10w1

 

Exhibit 10.1

AMENDED AND RESTATED NON-EXCLUSIVE CONSULTING AGREEMENT

This Amended and Restated Non-Exclusive Consulting Agreement (“Agreement”) is entered into and
effective as of the 13th of January, 2006, to amend and restate the Non-Exclusive Consulting
Agreement entered into effective as of the 16th day of August, 2005, between Edward F. Houff
(“Consultant” or “Houff”), and Kaiser Aluminum & Chemical Corporation, a corporation with offices
located at 27422 Portola Parkway, #350, Foothill Ranch, CA 92610-2831 (“Kaiser”).

     WHEREAS, effective August 15, 2005, Kaiser has terminated Consultant as a Kaiser employee
“Without Cause,” and such termination constitutes a “Pro-Rating Event” for the purposes of
determining Consultant’s entitlement to severance and termination benefits under the Key Employment
Retention Program (“KERP”) approved by the Bankruptcy Court in Kaiser’s chapter 11 proceedings,
including Consultant’s Severance Agreement, Retention Agreement and Change in Control Severance
Agreement (a summary listing of such benefits and the references thereto is attached to this
Agreement and incorporated herein by reference); and

     WHEREAS, Consultant acknowledges that as a result of termination of Consultant’s employment
Consultant is not entitled to any benefits under his Change in Control Severance Agreement (the
“CIC Agreement”) and, in recognition of the foregoing, has, by execution of this Agreement,
permanently waived and released Kaiser from and against any and all claims for “Change in Control”
and “Tax Gross-Up” termination benefits in connection with the KERP, including any claims for
benefits under his CIC Agreement; and

     WHEREAS, Kaiser desires to have Consultant perform certain services for Kaiser as set forth
herein, and Consultant is willing to perform such services;

     NOW THEREFORE, in consideration of the mutual promises contained herein the parties hereto
agree as follows:

1. Term

     The term of this Agreement shall commence as of August 1, 2005 and shall continue in effect
through April 30, 2006. Termination of this Agreement, except for cause, before April 30, 2006, may
occur only by mutual consent or the death or permanent and total disability of Consultant as a
result of bodily injury, disease or mental disorder. This Agreement may be renewed for such term,
and upon such terms and conditions, as the parties may agree in a further writing.

2. Services

     2.1 Consultant shall perform non-exclusive consulting services for Kaiser primarily in the
nature of the services provided when consultant was Chief Restructuring Officer and Senior Vice
President of Kaiser, which employment ended on August 15, 2005. A listing of subject areas in which
Kaiser and Consultant have agreed that Consultant will provide services to the Company is attached
to this Agreement and incorporated herein by reference. To the extent any services will not be
completed by the expiration of the term of this Agreement and Consultant and Kaiser have not agreed
to the terms of an extension, Consultant shall fully cooperate with Kaiser in all matters relating
to the winding up of Consultant’s pending work on behalf of Kaiser and the orderly transfer of any
such pending work to other employees or representatives of Kaiser as may be designated by Kaiser.

     2.2 Any additional services by Consultant beyond those referenced in paragraph 2.1 above shall
be performed by Consultant as agreed between Consultant and Kaiser and as authorized by Kaiser’s
CEO, Jack A. Hockema, or such other person as Consultant may agree.

 

 

     2.3 Consultant shall at all times act in accordance with his own best judgment, experience and
expertise as an independent Consultant. Consultant shall routinely communicate the status and
progress of the services being performed by Consultant to Kaiser’s CEO, General Counsel, CFO,
senior management and outside professionals, as appropriate, and solicit input and direction with
respect to tactical and strategic decisions required to be made in connection with the services to
be performed that are likely to affect the business, operations or liabilities of Kaiser and its
affiliates both during and after emergence.

     2.4 Consultant may perform consulting services for persons other than Kaiser so long as such
other consulting services do not present an actual conflict of interest for Consultant. Consultant
agrees to inform Kaiser when consulting services are being performed for others, and will provide a
certification that no conflict exists. Consultant will arrange his schedule and other work to
ensure that Kaiser work remains the primary priority for Consultant’s work and remains the first
call on Consultant’s resources and time. Should Consultant request a waiver of any potential
conflict with respect to either interest or time, Kaiser will not unreasonably withhold its consent
to waiver.

     2.5 Upon the effective date of Kaiser’s plan of reorganization and its emergence from Chapter
11, Consultant will resign as Chief Restructuring Officer of Kaiser and the delegation of authority
granted to Consultant shall terminate and be of no further force or effect. Except as set forth in
the preceding sentence, Kaiser’s emergence from Chapter 11 will have no effect on this Agreement or
the consulting services to be performed.

3. Fees and Reimbursements/Invoices

     3.1 For the initial term of the Agreement (through February 14, 2006),
Consultant’scompensation will be as follows:

          3.1.1 A base fee of $43,200 per month (“Base Fee”), exclusive of expenses, for which
Consultant will provide up to 120 hours of services. Travel time that is not covered by other work
will be counted at one-half the number of hours, and there will be no premium for weekend or
holiday work. This amount will be pro-rated for the partial months of August 2005 and February
2006.

          3.1.2 Monthly hours worked in excess of 120, up to a maximum of 200 (“Additional Fee”),
exclusive of expenses, will be billed at $360 per hour, subject to the same terms and conditions
for travel, weekend and holiday work as provided in paragraph 3.1.1.

          3.1.3 Regardless of the number of hours actually worked in any month, Consultant agrees that
Kaiser will not be charged for any work in excess of 200 hours per month, exclusive of expenses.

     3.2 After the initial term of the Agreement, Consultant’s compensation will be as
follows:

          3.2.1 The prorated Base Fee for February 15, 2006, through February 28, 2006, shall be
$22,500, exclusive of expenses, for which Consultant will provide up to 50 hours of services.
Travel time that is not covered by other work will be counted at one-half the number of hours, and
there will be no premium for weekend or holiday work. The Additional Fee during this period for
hours worked in excess of 50, up to a maximum of 75, exclusive of expenses, will be billed at $450
per hour, subject to the same terms and conditions for travel, weekend and holiday work as provided
above.

			
	  
	 	Amended and Restated Non-Exclusive Consulting Agreement

Edward. F. Houff

2

 

          3.2.2 The prorated Base Fee for March 1, 2006, through March 31, 2006, shall be $33,750,
exclusive of expenses, for which Consultant will provide up to 75 hours of services. Travel time
that is not covered by other work will be counted at one-half the number of hours, and there will
be no premium for weekend or holiday work. The Additional Fee during this period for hours worked
in excess of 75, up to a maximum of 100, exclusive of expenses, will be billed at $450 per hour,
subject to the same terms and conditions for travel, weekend and holiday work as provided above.

          3.2.3 The prorated Base Fee for April 1, 2006, through April 30, 2006, shall be $22,500,
exclusive of expenses, for which Consultant will provide up to 50 hours of services. Travel time
that is not covered by other work will be counted at one-half the number of hours, and there will
be no premium for weekend or holiday work. The Additional Fee during this period for hours worked
in excess of 50, up to a maximum of 75, exclusive of expenses, will be billed at $450 per hour,
subject to the same terms and conditions for travel, weekend and holiday work as provided above.

     3.3 Both parties agree that Consultant is not an employee for state or federal tax purposes.
Consultant shall be solely responsible for payment of all FICA and federal, state and local income
taxes payable on compensation received hereunder. All travel time in connection with this Agreement
will be prorated as required and compensated at the above rates. In addition, upon submission of
proper documentation, Kaiser will reimburse Consultant for all reasonable and customary expenses
incurred while providing consulting services. The term “reasonable and customary” shall mean
expenses incurred consistent with Kaiser’s corporate policies on reimbursement of travel and
related expenses and also include costs for telephone, fax and mobile phone charges when used for
Kaiser business, but shall not include any costs or expenses incurred by Consultant to provide his
own working environment (office space, parking, etc.).

     3.4 Consultant’s compensation and expense reimbursement shall be paid as follows:

          3.4.1 Beginning in September 2005 and each month thereafter during the term of the Agreement,
Consultant’s Base Fee will be paid automatically by Kaiser by wire transfer monthly on the first
business day between the first and fifth day of the month.

          3.4.2 Beginning in September 2005 and each month thereafter during the term of the Agreement,
by the fifth day of the month, Consultant will provide an invoice for the previous month that
provides a summary of time and activities as to the Base Fee, and a reasonably detailed description
of services and time, rounded up to the nearest tenth of the hour for any Additional Fee earned
during the previous month. Consultant will also submit a reasonably detailed schedule of expenses
for reimbursement including receipts. Bills and receipts may be submitted electronically.

          3.4.3 Statements for services and requests for expense reimbursement shall be submitted to

Kaiser Aluminum & Chemical Corp

Attn: John M. Donnan, Vice President and General Counsel

27422 Portola Parkway, #350

Foothill Ranch, CA 92610-2831

Fax: (949) 614-1867

john.donnan@kaiseraluminum.com

			
	  
	 	Amended and Restated Non-Exclusive Consulting Agreement

Edward. F. Houff

3

 

          3.4.4 Kaiser will promptly review the statements submitted with respect to the Additional Fee
and requests for expense reimbursement, and will pay all undisputed Additional Fee and expense
reimbursement amounts within 30 days of Kaiser’s receipt of such statement. Kaiser may request
additional information concerning the content of the Base Fee description and time but may not
withhold payment of the Base Fee. Questions regarding any Additional Fee and/or expenses will be
addressed promptly with a view toward reaching an agreement, and payment for any questioned
Additional Fee and/or expense amounts will be paid on the later of 30 days after the statement was
received or 10 days after the questions are resolved.

4. Independent Contractor

     4.1 Consultant shall perform services hereunder as an independent contractor and not as an
employee. He shall have no power or authority to act for, legally represent, or commit Kaiser in
any way unless Kaiser expressly authorizes him to do so.

     4.2 Consultant understands and agrees that during the period of this Agreement and any
extensions thereto he is not entitled to participate in or accrue benefits, and Consultant hereby
expressly waives any claim to participate in or accrue benefits, under Kaiser’s employee benefit
plans, including but not limited to KRP, Plan B, Severance Pay and Benefits Continuation, Personal
Choice, Life Insurance, Sick Leave with Salary Continuation, Long Term Disability, Accidental Death
and Dismemberment, Medical and Dental plans for services performed hereunder, except as he is
entitled to receive any such benefits as a result of his termination without cause as an employee
on August 15, 2005. For the avoidance of doubt, the parties agree that any and all benefits to
which Consultant may be entitled must derive, if at all, from his term of employment at Kaiser, and
not from his service as a Consultant. In addition, Consultant is not entitled to participate in any
employee bonus plans as a result of his service as a Consultant.

5. Protection of Confidential Information

     5.1 All work product of Consultant in the performance of this Agreement, including without
limitation, analyses, reports, photographs, data and other information, including any inventions or
discoveries made by Consultant, shall be the property of Kaiser and shall be considered
Confidential Information. Any information disclosed to Consultant by Kaiser or others in
connection with service for Kaiser under this Agreement shall also be considered Confidential
Information, and shall, as between Kaiser and Consultant, be the property of Kaiser.

     5.2 Except as Kaiser may authorize in writing, Consultant shall not disclose
any Confidential Information or use it for any purpose other than the performance of his services
under this Agreement. Promptly upon Kaiser’s request, and in any event upon the termination of
this Agreement, Consultant shall deliver to Kaiser all such material (including all copies made
thereof) which Consultant has in his possession.

     5.3 Upon termination of this Agreement for any reasons, Consultant will, except as otherwise
agreed to in writing by the parties, return to Kaiser all property belonging to Kaiser, including
without limitation, computer equipment, computer programs, cellular telephones, beepers or other
property belonging to Kaiser, and documents, property and data of any nature and in any form,
including electronic or magnetic form, reflecting any confidential information described above.

			
	  
	 	Amended and Restated Non-Exclusive Consulting Agreement

Edward. F. Houff

4

 

6. Applicable Law/Entire Agreement

     6.1 This Agreement shall in all respects be governed by and construed in accordance with the
laws of the State of Texas, except that conflicts of laws/provisions of Texas law shall not be
applied for the purpose of making other law applicable.

     6.2 This Agreement, the Severance Agreement, the Retention Agreement and that certain Release
executed pursuant to the terms of the Severance Agreement constitute the entire agreement and
supersedes all prior agreements and understandings, both written and oral, between the parties
relating to Consultant’s activities as a Consultant and the termination of Consultant’s employment
with Kaiser, including, but not limited to the effect of such termination under the KERP and
related agreements. It may not be amended, supplemented or superseded except by a written
agreement signed by both parties.

7. Dispute Resolution

     7.1 If a dispute arises out of or related to this Agreement, and if the dispute cannot be
settled through direct discussions, then Kaiser and Consultant agree to first endeavor to settle
the dispute in an amicable and good faith manner by mediation before a mutually agreeable mediator,
before having recourse to any other proceeding or forum.

     7.2 Any controversy or claim arising out of or relating to this Agreement or the breach
thereof that cannot be resolved by good faith mediation shall on the written request of the
complaining party served on the other within thirty (30) calendar days of the event which forms the
basis of the controversy or claim, be submitted and resolved by final and binding arbitration in a
manner consistent with the rules of the American Arbitration Association. Service of the written
demand for arbitration shall be made by certified mail, with a return receipt requested. Time is
of the essence. If the request is not served within said thirty (30) days of the date a cause of
action arises, the complaining party’s claim(s) shall be forever waived and barred before any and
all forums, including, without limitation, arbitration or judicial forums. The Arbitrator shall
have no authority to alter, amend, modify or change any of the terms of the Agreement. The
decision of the Arbitrator shall be final and binding and judgment thereon may be entered in any
court having jurisdiction thereof. The parties shall equally divide all costs of the arbitration,
but the parties shall bear their own expenses for attorney’s fees and witness costs.

     7.3 The parties intend that the dispute resolution procedures outlined herein are mandatory
and shall be the exclusive means of resolving all disputes, between Consultant and Kaiser and/or
Kaiser’s employees, directors, officers, officers or managers involving or arising out of this
Agreement. However, this provision does not prevent either Party from first seeking injunctive
relief if necessary to enforce the terms of this Agreement.

8. Notices

     All notices, correspondence, consents, requests, demands, and other communications hereunder
shall be in writing and shall be deemed to have been duly given when actually received. Such
notices may be given personally, by registered or certified mail, by email, or by facsimile
transmission:

	 	 	 	 	 
	 

	 	if to Consultant:

	 	Edward F. Houff

Emergence Strategies LLC

1200 Smith Street, Suite 1600

			
	  
	 	Amended and Restated Non-Exclusive Consulting Agreement

Edward. F. Houff

5

 

	 	 	 	 	 
	 

	 	

if to Kaiser:

	 	Houston TX 77002

Fax: 800-853-3676

Phone: 713.353.4655

Email: efh446@gmail.com

Kaiser Aluminum & Chemical Corp.

Attn: John M. Donnan, Vice President and General Counsel

27422 Portola Parkway, #350

Foothill Ranch, CA 92610-2831

Phone: (949) 614-1767

Fax: (949) 614-1867

john.donnan@kaiseraluminum.com

or to such other address as either party shall have last designated by notice to the other party
hereto.

9. Waiver

     Failure of either Kaiser or Consultant to enforce at any time any of the provisions of this
Agreement shall in no way be construed to be a waiver of such provisions nor in any way affect the
validity of this Agreement or any part thereof or the right of either party thereafter to enforce
each and every provision thereof. The waiver of any provisions of this Agreement or any breach
thereof shall not constitute waiver of any subsequent breach of the same or any other provisions of
this Agreement.

10. Knowing and Voluntary Waiver

     Consultant understands and agrees that he:

	 	a.	 	Has carefully read and fully understands all of the provisions of this
Agreement, the KERP and agreements entered into by Consultant under the KERP, including
Consultant’s Severance Agreement, Retention Agreement and CIC Agreement and the effect
of his termination of Employment under this Agreement, the KERP and Consultant’s
Severance Agreement, Retention Agreement and CIC Agreement.
	 
	 	b.	 	Has had an opportunity to negotiate the terms of this Agreement.
	 
	 	c.	 	Is, through this Agreement, waiving right to employee benefits and/or any
future claim to benefits set forth in paragraph 4.2 of this Agreement, stemming from
activities as a Consultant during the period of this Agreement on and after August 1,
2005.
	 
	 	d.	 	Knowingly and voluntarily intends to be legally bound by the terms of this
Agreement.
	 
	 	e.	 	Was advised and hereby is advised in writing to consider the terms of this
Agreement and consult with an attorney of his choice prior to executing this Agreement.

11. Survival

     The obligations of Consultant under Section 5, 6 and 7 of this Agreement shall survive
termination or expiration of this Agreement.

			
	  
	 	Amended and Restated Non-Exclusive Consulting Agreement

Edward. F. Houff

6

 

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

	 	 	 	 	 
	CONSULTANT:

	 	 	KAISER ALUMINUM & CHEMICAL CORP.
	 
	 	 	 	 
	 

	 	 	By: 	 
	 

	 	 	 	 
	Edward F. Houff

	 	 	 	John M. Donnan

Vice President and General Counsel

			
	  
	 	Amended and Restated Non-Exclusive Consulting Agreement

Edward. F. Houff

7

 

List of Subject Areas as to which Kaiser Desires and Consultant Agrees to Provide Services

	 	 	 
	n

	 	Regularly Scheduled Omnibus and Special bankruptcy court hearings
	 
	 	 
	n

	 	Disclosure Statement, POR, Solicitation, Confirmation hearings — complete
	 
	 	 
	n

	 	Hearings and appellate work relating to bankruptcy issues, including stay proceedings
	 
	 	 
	n

	 	PBGC Appeal of Distress Termination
	 
	 	 
	n

	 	Insurance coverage litigation and settlements
	 
	 	 
	n

	 	Trentwood environmental matters and criminal investigation
	 
	 	 
	n

	 	Senior/Sub Note/Gramercy Subordination Litigation and liquidating plan confirmation and appeals, including stay proceedings
	 
	 	 
	n

	 	Asbestos and other Tort Claim resolution and negotiations
	 
	 	 
	n

	 	Asbestos workers’ compensation
	 
	 	 
	n

	 	Communications with committees and futures representatives
	 
	 	 
	n

	 	C11 communications with the Board
	 
	 	 
	n

	 	New Board Search Committee — complete
	 
	 	 
	n

	 	Environmental reorganization matters — complete
	 
	 	 
	n

	 	Claims resolution issues
	 
	 	 
	n

	 	Monument Select litigation — complete
	 
	 	 
	n

	 	Testimony and/or declarations as required to support particular pleadings
	 
	 	 
	n

	 	Other assignments as agreed

	 	 	 
	 

	 	 
	EFH Initials

	 	JMD Initials

			
	  
	 	Amended and Restated Non-Exclusive Consulting Agreement

Edward. F. Houff

8

 

SUMMARY OF BENEFITS DUE AND REFERENCES

TO APPLICABLE BENEFIT AGREEMENTS

	n  	 	All benefits that are due and payable to Consultant under the Kaiser Key Employee
Retention Program (KERP), Consultant’s Severance Agreement (“Severance Agreement”),
Consultant’s Retention Agreement, each as approved by the Bankruptcy Court in 2002 in
Kaiser’s chapter 11 proceedings, for a “Termination Without Cause” and a “Pro-Rating
Event,” as those terms are used in the appropriate documents that generally describe and
are specific to Edward F. Houff, will be paid as and when due under those plans and
agreements as a result of Mr. Houff’s termination effective August 15, 2005.
	 
	n  	 	No material change or alteration to such benefits is intended from the KERP and related
plans and agreements that were approved by the Bankruptcy Court
	 
	n  	 	These severance benefits include, as of the termination on August 15, 2005

	 	•	 	Base pay times a multiplier of 2
	 
	 	•	 	Withheld retention payments equaling $400,000
	 
	 	•	 	“Welfare benefits” for 2 years as provided for in the Severance Agreement and
all other benefits provided by the severance plan implemented at part of the KERP
(note: does NOT include car lease continuation)
	 
	 	•	 	Normal end of service benefits and rights as a Kaiser employee (e.g. unused
vacation days for 2005, accrued but unused for 2006) unrelated to Severance
Agreement

	n  	 	Deferred benefits under the KERP/Severance program

	 	•	 	LTI for 2002 through 2004 calculated and paid in accordance with the LTI program
and KERP (half at emergence, half at emergence + 1 yr)

	n  	 	Other bargained for benefits

	 	•	 	$25,000 one-time moving expense payment (to be paid upon the earlier of an
actual move or upon termination of the Agreement)
	 
	 	•	 	2005 Short-Term Incentive Compensation, prorated for the period from January 1
to August 15, 2005, not to exceed $25,000, to be paid before March 15, 2006.

	 	 	 
	 

	 	 
	EFH Initials

	 	JMD Initials

			
	  
	 	Amended and Restated Non-Exclusive Consulting Agreement

Edward. F. Houff

9exv4w2

 

Exhibit 4.2

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this “Agreement”) is made and entered into as of
June 30, 2005, by and among Asset Capital Corporation, Inc., a Maryland corporation (together with
any successor entity thereto, the “Company”), Friedman, Billings, Ramsey & Co., Inc., a
Delaware corporation (together with any successor entity thereto, “FBR”), and Peter C.
Minshall, Blair D. Fernau, William B. LeBlanc III, Barry E. Johnson and Kenneth M. Houle
(collectively, the “Management Holders”), pursuant to the Purchase/Placement Agreement (the
“Purchase/Placement Agreement”), dated as of June 23, 2005, by and among the Company, Asset
Capital Partners, L.P., a Delaware limited partnership (the “Operating Partnership”), and
FBR. In order to induce (i) FBR to enter into the Purchase/ Placement Agreement and to purchase,
in its capacity as initial purchaser, the Rule 144A Shares (as defined below) or the Regulation S
Shares (as defined below) from the Company and to place, in its capacity as placement agent, the
Regulation D Shares (as defined below), in each case, in the offering by the Company of shares of
its Common Stock on June 30, 2005, as contemplated by the Purchase/ Placement Agreement (the
“Offering”) pursuant to the terms thereof, (ii) the purchasers (whether from the Company or
FBR, collectively, the “Participants”) of shares of the Company’s Common Stock in the
Offering to purchase such shares of Common Stock, and (iii) the persons listed on Exhibit A
attached hereto (the “Predecessor Entity Investors”) to contribute their interests in the
entities and other assets to be contributed or assigned to the Company in connection with the
formation transactions of the Company, the Company has agreed to provide the registration rights
provided for in this Agreement to FBR, the Management Holders, the Participants, and the
Predecessor Entity Investors and each of their respective direct and indirect transferees who
constitutes a Holder. The execution and delivery of this Agreement is a condition to the closing
of the transactions contemplated by the Purchase/Placement Agreement.

     The parties hereto hereby agree as follows:

1. Definitions

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

     Additional Shares: Common Stock or other securities of the Company issued in respect
of the Shares by reason of or in connection with any stock dividend, stock distribution, stock
split, purchase in any rights offering or in connection with any exchange for or replacement of
such shares or any combination of shares, recapitalization, merger or consolidation, or any other
equity securities issued pursuant to any other pro rata distribution with respect to the Common
Stock.

     Agreement: As defined in the preamble hereof.

     Affiliate: As to any specified Person, (i) any Person directly or indirectly owning,
controlling or holding, with power to vote, ten percent or more of the outstanding voting
securities of such other Person, (ii) any Person ten percent or more of whose outstanding voting
securities are directly or indirectly owned, controlled or held, with power to vote, by such other
Person, (iii) any Person directly or indirectly controlling, controlled by or under common control
with such other Person, (iv) any executive officer, director, trustee, managing member or general
partner of such Person and (v) any legal entity for which such Person acts as an executive officer,
director, trustee, managing member or general partner. For purposes of this definition, “control”

 

 

(including the correlative meanings of the terms “controlled by” and “under common control
with”), as used with respect to any Person, shall mean the possession, directly, or indirectly
through one or more intermediaries or relationships, of the power to direct or cause the direction
of the management and policies of such Person, whether by contract, through the ownership of voting
securities, partnership or member interests or other equity interests or otherwise. An indirect
relationship shall include, without limitation, circumstances in which a Person’s spouse, children,
parents, siblings or mother-, father-, sister- or brother-in-law is or has been associated with a
Person.

     Business Day: With respect to any act to be performed hereunder, each Monday,
Tuesday, Wednesday, Thursday and Friday that is not a day on which banking institutions in New
York, New York are authorized or obligated by applicable law, regulation or executive order to
close.

     Closing Time: June 30, 2005.

     Commission: The Securities and Exchange Commission.

     Common Stock: The common stock, par value $0.001 per share, of the Company.

     Company: As defined in the preamble hereof.

     Controlling Person: As defined in Section 6(a) hereof.

     End of Suspension Notice: As defined in Section 5(b) hereof.

     Exchange Act: The Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated by the Commission thereunder.

     Executive Officer: As defined in Section 2(e) hereof.

     FBR: As defined in the preamble hereof.

     Holder: FBR, the Participants, the Predecessor Entity Investors and the Management
Holders and each of the direct and indirect transferees thereof, in each case, from time to time
that holds Registrable Shares.

     Indemnified Party: As defined in Section 6(c) hereof.

     Indemnifying Party: As defined in Section 6(c) hereof.

     IPO Registration Statement: As defined in Section 2(b) hereof.

     Liabilities: As defined in Section 6(a) hereof.

     Management Holders: As defined in the preamble hereof.

     Management Shares: The shares of Common Stock collectively held as of the Closing
Time by the Management Holders.

2

 

     NASD: The National Association of Securities Dealers, Inc.

     Offering: As defined in the preamble hereof.

     Offering Memorandum: The Offering Memorandum of the Company dated June 24, 2005
pursuant to which the Rule 144A Shares and the Regulation S Shares and the Regulation D Shares are
offered and sold.

     Participant: As defined in the preamble hereof.

     Person: An individual, partnership, limited liability company, corporation, trust,
unincorporated organization, government or agency or political subdivision thereof, or any other
legal entity.

     Predecessor Entity Investors: As defined in the preamble hereof.

     Proceeding: An action (including a class action), claim, suit, demand, arbitration or
other proceeding (including without limitation, an investigation or partial proceeding, such as a
deposition), whether commenced or, to the knowledge of the Person subject thereto, threatened, by
any Person.

     Prospectus: The prospectus included in any Registration Statement, including any
preliminary prospectus, and all other amendments and supplements to any such prospectus, including
post-effective amendments, and all material incorporated by reference or deemed to be incorporated
by reference, if any, in such prospectus.

     Purchase/Placement Agreement: As defined in the preamble, as amended from time to
time in accordance with the terms thereof.

     Purchaser Indemnitee: As defined in Section 6(a) hereof.

     Registrable Shares: The Shares, upon original issuance thereof, and at all times
subsequent thereto, including upon the transfer thereof by the original holder or any subsequent
holder and any Additional Shares, until the earliest to occur of (i) the date on which such shares
have been sold pursuant to an effective Registration Statement, (ii) the date on which such shares
are sold, transferred or otherwise disposed of pursuant to Rule 144, (iii) the date on which, in
the opinion of counsel to the Company, such shares not held by Affiliates of the Company are
eligible for sale without registration under the Securities Act pursuant to subparagraph (k) of
Rule 144, (iv) the date on which such shares are sold to the Company or any of its subsidiaries, or
(v) the second anniversary of the initial effective date of the Shelf Registration Statement or, in
the case of any Additional Shares for which tacking under Rule 144 is not available and which are
not included in the Shelf Registration Statement, until the second anniversary of the issuance of
the Additional Shares (subject to extension pursuant to Section 5(c) hereof).

     Registration Default: As defined in Section 2(e) hereof.

     Registration Expenses: Any and all fees and expenses incident to the Company’s
performance of, or compliance with, this Agreement, including, without limitation: (i) all
Commission, securities exchange, NASD or other registration, listing, inclusion and filing fees,

3

 

(ii) all fees and expenses incurred in connection with compliance with international, federal
or state securities or blue sky laws and the NASD rules (including, without limitation, any
registration, listing and filing fees and reasonable fees and disbursements of counsel in
connection with blue sky qualification of any of the Registrable Shares and the preparation of a
blue sky memorandum and compliance with the rules of the NASD, whether incurred by the Company or
any member of the NASD), (iii) all expenses of any Person in preparing or assisting in preparing,
word processing, duplicating, printing, delivering and distributing any Registration Statement, any
Prospectus, any amendments or supplements thereto, any underwriting agreements, agreements among
underwriters, securities sales agreements, certificates and any other documents relating to the
performance by the Company under, and compliance by the Company with, this Agreement, (iv) all fees
and expenses incurred in connection with the listing or inclusion of any of the Registrable Shares
on any securities exchange or national quotation system pursuant to Section 4(n) of this Agreement
or otherwise, (v) the fees and disbursements of counsel for the Company and of the independent
public accountants of the Company (including, without limitation, the expenses of any special audit
and “cold comfort” letters required by or incident to such performance), (vi) reasonable fees and
disbursements of one Selling Holders’ Counsel for each Registration Statement and the amounts set
forth in Section 4(m), and (vii) any fees and disbursements customarily paid by issuers in
connection with issues and sales of securities (including the fees and expenses of any experts
retained by the Company in connection with any Registration Statement); provided, however, that
Registration Expenses shall exclude brokers’ or underwriters’ discounts and commissions, any
transfer taxes or transfer fees, if any, relating to the sale or disposition of Registrable Shares
by a Holder and the fees and disbursements of any counsel to the Holders, except as provided for in
clause (vi) above.

     Registration Statement: Any Shelf Registration Statement, Subsequent Shelf
Registration Statement or IPO Registration Statement of the Company that covers the resale of any
Registrable Shares, including the Prospectus, amendments and supplements to such registration
statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto and all
material incorporated by reference or deemed to be incorporated by reference, if any, in such
registration statement.

     Regulation D Shares: The shares of Common Stock initially sold by the Company in the
Offering to “accredited investors” (within the meaning of Rule 501(a) of Regulation D promulgated
under the Securities Act).

     Regulation S: Regulation S (Rules 901-905) promulgated by the Commission under the
Securities Act, as such rules may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission as a replacement thereto having substantially the same effect
as such regulation.

     Regulation S Shares: The shares of Common Stock initially resold by FBR pursuant to
the Purchase/Placement Agreement to “non-U.S. persons” (in accordance with Regulation S) in an
“offshore transaction” (in accordance with Regulation S).

     Rule 144: Rule 144 promulgated by the Commission pursuant to the Securities Act, as
such rule may be amended from time to time, or any similar rule or regulation hereafter adopted by
the Commission as a replacement thereto having substantially the same effect as such rule.

4

 

     Rule 144A: Rule 144A promulgated by the Commission pursuant to the Securities Act, as
such rule may be amended from time to time, or any similar rule or regulation hereafter adopted by
the Commission as a replacement thereto having substantially the same effect as such rule.

     Rule 144A Shares: The shares of Common Stock initially resold by FBR pursuant to the
Purchase/Placement Agreement to “qualified institutional buyers” (as such term is defined in Rule
144A) in accordance with Rule 144A.

     Rule 158: Rule 158 promulgated by the Commission pursuant to the Securities Act, as
such rule may be amended from time to time, or any similar rule or regulation hereafter adopted by
the Commission as a replacement thereto having substantially the same effect as such rule.

     Rule 415: Rule 415 promulgated by the Commission pursuant to the Securities Act, as
such rule may be amended from time to time, or any similar rule or regulation hereafter adopted by
the Commission as a replacement thereto having substantially the same effect as such rule.

     Rule 424: Rule 424 promulgated by the Commission pursuant to the Securities Act, as
such rule may be amended from time to time, or any similar rule or regulation hereafter adopted by
the Commission as a replacement thereto having substantially the same effect as such rule.

     Rule 429: Rule 429 promulgated by the Commission pursuant to the Securities Act, as
such rule may be amended from time to time, or any similar rule or regulation hereafter adopted by
the Commission as a replacement thereto having substantially the same effect as such rule.

     Securities Act: The Securities Act of 1933, as amended, and the rules and regulations
promulgated by the Commission thereunder.

     Selling Holders’ Counsel: Counsel for the Holders that is selected by the Holders
holding a majority of the Registrable Shares included in any Registration Statement and that is
reasonably acceptable to the Company.

     Shares: The Management Shares, the Rule 144A Shares, the Regulation S Shares, the
Regulation D Shares and shares of Common Stock issued to the Predecessor Entity Investors in
connection with the formation transactions of the Company.

     Shelf Registration Statement: As defined in Section 2(a) hereof.

     Subsequent Shelf Registration Statement: As defined in Section 2(c) hereof.

     Suspension Event: As defined in Section 5(b) hereof.

     Suspension Notice: As defined in Section 5(b) hereof.

     Underwritten Offering: A sale of securities of the Company to an underwriter or
underwriters for reoffering to the public.

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2. Registration Rights

     (a) Mandatory Shelf Registration. As set forth in Section 4 hereof, subject to Section
2(b)(ii), the Company agrees to file with the Commission within ninety (90) calendar days after the
date of this Agreement a shelf Registration Statement on Form S-11 or such other form under the
Securities Act then available to the Company providing for the resale of the Registrable Shares
pursuant to Rule 415 from time to time by the Holders, including for the avoidance of doubt, any
Additional Shares that are issued prior to the initial effectiveness of such Shelf Registration
Statement (such registration statement, including the Prospectus, amendments and supplements to
such registration statement or Prospectus, including pre-and post-effective amendments, all
exhibits thereto and all material incorporated by reference or deemed to be incorporated by
reference, if any, in such registration statement, the “Shelf Registration Statement”).
The Company shall use its commercially reasonable efforts to cause such Shelf Registration
Statement to be declared effective by the Commission as soon as practicable following such filing,
subject to Section 2(b)(ii). Such commercially reasonable efforts shall include, without
limitation, responding to any comments issued by the staff of the Commission with respect to any
Registration Statement and filing any related amendment to such Registration Statement as soon as
reasonably practicable after receipt of such comments. Any Shelf Registration Statement shall
provide for the resale from time to time, and pursuant to any method or combination of methods
legally available (including, without limitation, an Underwritten Offering, a direct sale to
purchasers, a sale through brokers or agents, or sale over the Internet) by the Holders of any and
all Registrable Shares.

     (b) IPO Registration. If the Company proposes to file a registration statement on Form S-11
or such other form under the Securities Act providing for the initial public offering of shares of
Common Stock (such registration statement, including the Prospectus, amendments and supplements to
such registration statement or Prospectus, including pre- and post-effective amendments, all
exhibits thereto and all material incorporated by reference or deemed to be incorporated by
reference, if any, in such registration statement, the “IPO Registration Statement”), the
Company will mail written notices of the filing, within the seven (7) Business Days after the
filing thereof, to each Holder (based on (i) the Company’s records and knowledge, (ii) a list of
record owners of the Common Stock generated by the Company’s transfer agent and (iii) a list of
non-objecting beneficial owners and objecting beneficial owners of the Common Stock generated by
ADP) and will afford each Holder an opportunity to include in such IPO Registration Statement all
or any part of the Registrable Shares then held by such Holder. Each Holder desiring to include in
any such IPO Registration Statement all or part of the Registrable Shares held by such Holder
shall, within fifteen (15) Business Days after receipt of the above-described written notice by the
Company, so notify the Company in writing, and in such notice shall inform the Company of the
number of Registrable Shares such Holder wishes to include in such IPO Registration Statement.
Furthermore, in the event the IPO Registration Statement is not declared effective by the
Commission within one hundred twenty (120) Business Days following delivery by the Company of
notice to the Holders of their initial opportunity to include all or any part of the Registrable
Shares then held by such Holders in the IPO Registration Statement, unless a road show for the
Underwritten Offering pursuant to the IPO Registration Statement is actually in progress at such
time, the Company shall promptly provide a new written notice to all Holders giving them another
opportunity to elect to include Registrable Shares in the pending IPO Registration Statement. Each
Holder desiring to include in any such IPO Registration Statement all or part of the Registrable
Shares held by such Holder shall, within ten

6

 

(10) Business Days after receipt of the above-described new written notice by the Company, so
notify the Company in writing, and in such notice shall inform the Company of the number of
Registrable Shares such Holder wishes to include in such IPO Registration Statement. Any election
by any Holder to include any Registrable Shares in the IPO Registration Statement will not affect
the inclusion of such Registrable Shares in the Shelf Registration Statement or any Subsequent
Shelf Registration Statement until such Registrable Shares have been sold under the IPO
Registration Statement; provided, however, that at such time of sale, the Company shall have the
right to remove from the Shelf Registration Statement or any Subsequent Shelf Registration
Statement the Registrable Shares sold pursuant to the IPO Registration Statement.

     (i) Right to Terminate IPO Registration. The Company shall have the right to
terminate or withdraw any IPO Registration Statement referred to in this Section
2(b) prior to the effectiveness of such registration whether or not any Holder has
elected to include Registrable Shares in such registration; provided, however, that
the Company must provide each Holder that elected to include any Registrable Shares
in such IPO Registration Statement prompt written notice of such termination or
withdrawal.

     (ii) Obligation to File Shelf Registration After Filing of IPO Registration
Statement. Notwithstanding the provisions of Section 2(a) hereof, if the Company
files an IPO Registration Statement before it files the Shelf Registration Statement
or any Subsequent Shelf Registration Statement pursuant to Section 2(a) or 2(c)
hereof, the Company shall file the Shelf Registration Statement no more than sixty
(60) days after the filing of the IPO Registration Statement; provided that the
Company shall use its best efforts to cause the resale shelf registration statement
to be declared effective under the Securities Act no later than 60 days after
completion of its initial public offering.

     (iii) Underwriting. The Company shall give written notice to the Holders who
elect to be included in the IPO Registration Statement of the managing underwriters
for the Underwritten Offering proposed under the IPO Registration Statement. The
right of any such Holder to include Registrable Shares in any IPO Registration
Statement pursuant to this Section 2(b) shall be conditioned upon such Holder’s
participation in such Underwritten Offering and the inclusion of such Holder’s
Registrable Shares in the Underwritten Offering to the extent provided herein. All
Holders proposing to distribute their Registrable Shares through such Underwritten
Offering shall enter into an underwriting agreement in customary form with the
managing underwriters selected by the Company for such underwriting and complete and
execute any questionnaires, powers of attorney, indemnities, securities escrow
agreements, custody agreements, lock-up agreements and other documents reasonably
required under the terms of such underwriting, and furnish to the Company and any
underwriter such information in writing as the Company or any underwriter may
reasonably request for inclusion in the IPO Registration Statement or as may be
necessary for the Company or any such underwriter to make any necessary filings
(including, without limitation, any blue sky, NASD and stock exchange filings) in
connection with such IPO Registration Statement; provided, however, that no Holder
shall be required to make any representations or warranties to or agreements
(including

7

 

indemnitees) with the Company or the underwriters other than representations,
warranties or agreements (including indemnitees) as are customary and reasonably
requested by the underwriters. Notwithstanding any other provision of this
Agreement, if at any time the managing underwriters determine in good faith that
marketing factors require a limitation on the number of shares to be included, then
the managing underwriters may exclude shares (including Registrable Shares) from the
IPO Registration Statement and the Underwritten Offering, and any shares included in
the IPO Registration Statement and the Underwritten Offering shall be allocated,
first, to the Company, second, to each of the Holders (other than
the Management Holders) requesting inclusion of their Registrable Shares in the IPO
Registration Statement (on a pro rata basis based on the total number of Registrable
Shares then requested for inclusion by each such Holder), and third, to each
of the Management Holders requesting inclusion of their Registrable Shares in such
IPO Registration Statement (on a pro rata basis based on the total number of
Registrable Shares then requested for inclusion by each such Holder); provided,
however, that the number of Registrable Shares (other than the Management Shares) to
be included in the IPO Registration Statement shall not be reduced unless all other
securities of the Company held by (i) the Company’s directors, officers, other
employees and consultants; and (ii) other holders of the Company’s capital stock
with registration rights that are inferior (with respect to such reduction) to the
registration rights of the Holders set forth herein, are first entirely excluded
from the underwriting and registration.

     If any Holder disapproves of the terms of any such Underwritten Offering that
is undertaken in compliance with the terms hereof, or for any other reason, such
Holder may elect to withdraw from such Underwritten Offering by providing written
notice to the Company and the managing underwriters, delivered not later than the
later of (a) sixty (60) days after the initial filing date of the IPO Registration
Statement and (b) five (5) Business Days prior to the date the preliminary
prospectus is printed; provided, however, in the event the IPO Registration
Statement is not declared effective by the Commission within one hundred twenty
(120) Business Days following delivery by the Company of notice to the Holders of
their initial opportunity to include all or any part of the Registrable Shares then
held by such Holders in the IPO Registration Statement, unless a road show for the
Underwritten Offering pursuant to the IPO Registration Statement is in progress at
such time, the Company shall promptly provide written notice to all Holders who have
elected to be included in the IPO Registration Statement giving them another
opportunity to elect to withdraw from the pending IPO Registration Statement, and
each Holder desiring to withdraw from such IPO Registration Statement shall, within
five (5) Business Days after receipt of the above-described written notice by the
Company, provide notice to the Company and the managing underwriter of such
election. Any Registrable Shares excluded or withdrawn from such Underwritten
Offering shall be excluded and withdrawn from the IPO Registration Statement.

     (iv) Hold-back Agreement. By electing to include Registrable Shares in the IPO
Registration Statement, if any, the Holder of such Registrable Shares shall be
deemed to have agreed not to effect any sale or distribution of securities

8

 

of the Company of the same or similar class or classes of the securities
included in the IPO Registration Statement or any securities convertible into or
exchangeable or exercisable for such securities, including a sale pursuant to Rule
144 or Rule 144A under the Securities Act, during such periods as reasonably
requested by the managing underwriter (but in no event for a period longer than
thirty (30) days prior to and sixty (60) days following the effective date of the
IPO Registration Statement); provided that each of the officers and directors of the
Company that hold shares of Common Stock or securities convertible into or
exchangeable or exercisable for shares of Common Stock are subject to restrictions
at least as burdensome as those applicable to the Holders for not less than the
entire time period required of the Holders hereunder.

     (c) Subsequent Shelf Registration for Additional Shares Issued after Effectiveness of the
Mandatory Shelf Registration Statement. If any Additional Shares are issued or distributed to
Holders after the effectiveness of the Shelf Registration Statement, or such Additional Shares were
otherwise not included in a prior Shelf Registration Statement, then the Company shall as soon as
practicable, but in no event later than sixty (60) days after the issuance of such Additional
Shares, file and use its commercially reasonable efforts to cause to be declared effective by the
Commission as soon as practicable following such filing an additional shelf Registration Statement
on Form S-11 or such other form under the Securities Act then available to the Company providing
for the resale of the Additional Shares pursuant to Rule 415 from time to time by the Holders (such
registration statement, including the Prospectus, amendments and supplements to such registration
statement or Prospectus, including pre-and post-effective amendments, all exhibits thereto and all
material incorporated by reference or deemed to be incorporated by reference, if any, in such
registration statement, a “Subsequent Shelf Registration Statement”) in the same manner,
and subject to the same provisions in this Agreement as the Shelf Registration Statement; provided
that the provisions of Section 2(e) and Section 9 (provided that with respect to Section 9, the
Company has at the time of the issuance of the Additional Shares completed an Underwritten Offering
pursuant to the IPO Registration Statement) hereof will not apply to any such Subsequent Shelf
Registration Statement.

     (d) Expenses. The Company shall pay all Registration Expenses in connection with the
registration of the Registrable Shares pursuant to this Agreement. Each Holder participating in a
registration pursuant to this Section 2 shall bear such Holder’s proportionate share (based on the
total number of Registrable Shares sold in such registration) of all discounts and commissions
payable to underwriters or brokers and all transfer taxes and transfer fees, in each case, in
connection with a registration of Registrable Shares pursuant to this Agreement.

     (e) Executive Bonuses and Equity Awards. In the event that the Company does not file either
the IPO Registration Statement or a Shelf Registration Statement with the Commission within ninety
(90) days following the date hereof, other than as a result of the Commission being unable to
accept such filings, then each Management Holder shall forfeit and deliver to the Company 0.5% of
all Common Stock purchased by such Management Holder prior to the date hereof and awards granted to
such Management Holder by the Company pursuant to its 2005 equity incentive plan or other equity
incentive plan for each business day after the ninety (90) day period that the IPO Registration
Statement or Shelf Registration Statement has not been filed. The penalty provided in this Section
2(e) shall not become effective for a period of twenty

9

 

(20) days following such 90-day period, during which time the Company may file a Registration
Statement and cure any failure hereunder.

3. Rules 144 and 144A Reporting

     With a view to making available the benefits of certain rules and regulations of the
Commission that may permit the sale of the Registrable Shares to the public without registration,
until such date as no Holder owns any Registrable Shares, the Company agrees to:

     (a) use its commercially reasonable efforts to make and keep public information
available, as those terms are understood and defined in Rule 144 under the
Securities Act, at all times after the effective date of the first registration
statement under the Securities Act filed by the Company for an offering of its
securities to the general public;

     (b) use its commercially reasonable efforts to file with the Commission in a
timely manner all reports and other documents required to be filed by the Company
under the Securities Act and the Exchange Act (at any time after it has become
subject to such reporting requirements);

     (c) if the Company is not required to file reports and other documents under
the Securities Act and the Exchange Act, make available other information as
required by, and so long as necessary to permit sales of Registrable Shares pursuant
to, Rule 144 and Rule 144A; and

     (d) furnish to any Holder promptly upon request (i) a written statement by the
Company as to its compliance with the reporting requirements of Rule 144 (at any
time after ninety (90) days after the effective date of the first registration
statement under the Securities Act filed by the Company for an offering of its
securities to the general public), and of the Securities Act and the Exchange Act
(at any time after it has become subject to the reporting requirements of the
Exchange Act), (ii) a copy of the most recent annual and quarterly report(s) of the
Company, and (iii) such other reports, documents or shareholder communications of
the Company, and take such further actions consistent with this Section 3, as a
Holder may reasonably request in availing, and as is necessary to avail, itself of
any rule or regulation of the Commission allowing a Holder to sell any such
Registrable Shares without registration.

4. Registration Procedures

     In connection with the obligations of the Company with respect to any registration pursuant to
this Agreement, the Company shall, without limitation:

     (a) notify FBR in writing, at least ten (10) Business Days prior to filing a
Registration Statement, of its intention to file a Registration Statement with the
Commission and, at least five (5) Business Days prior to filing, provide a copy of
the Registration Statement to FBR and its counsel for review and comment (and in
good faith give consideration to any comments received) and within seven (7)
Business Days after such filing, provide a copy of such

10

 

Registration Statement to Selling Holders’ Counsel, if any; prepare and file
with the Commission, as specified in this Agreement, a Registration Statement(s),
which Registration Statement(s) (x) shall comply as to form in all material respects
with the requirements of the applicable form and include all financial statements
required by the Commission to be filed therewith and (y) shall otherwise comply with
the terms of this Agreement and be reasonably acceptable to FBR, its counsel and the
Selling Holders’ Counsel, if any; notify FBR and Selling Holders’ Counsel, if any,
in writing, at least five (5) Business Days prior to filing of any amendment or
supplement to such Registration Statement and, at least three (3) Business Days
prior to filing, provide a copy of such proposed amendment or supplement to FBR, its
counsel and Selling Holders’ Counsel, if any, for review and comment (and in good
faith give consideration to any comments received); promptly following receipt from
the Commission of any comments to such Registration Statement (whether pre-effective
or post-effective) made by the staff of the Commission, provide to FBR, its counsel
and Selling Holders’ Counsel, if any, copies of any such comments and copies of the
Company’s proposed responses thereto for review and comment (and in good faith give
consideration to any comments received) prior to delivering such responses to the
Commission; incorporate any comments reasonably made by FBR, its counsel and Selling
Holders’ Counsel, if any, to the Registration Statement, any amendment or supplement
thereto and/or any response to comments received from the Commission that are made
in compliance with the time periods specified above or prior to the Company’s filing
of such document, whichever is later; and use its commercially reasonable efforts to
cause such Registration Statement, in a form acceptable to FBR and its counsel and,
with respect to (i) those sections of the Registration Statement applicable to the
Selling Holders, if any, or (ii) any information provided by the Selling Holders, if
any, in a form acceptable to Selling Holders’ Counsel, if any, to become effective
as soon as practicable after filing and to remain effective, subject to Section 5
hereof, until the earlier of (i) such time as all Registrable Shares covered thereby
have been sold in accordance with the intended methods of distribution of such
Registrable Shares, and (ii) there are no Registrable Shares outstanding; provided,
however, that the Company shall not be required to cause any IPO Registration
Statement to become effective if it elects to terminate or withdraw the IPO
Registration Statement pursuant to Section 2(b)(i) hereof and the Holders have been
so notified; provided, further, that if the Company has an effective Shelf
Registration Statement or Subsequent Shelf Registration Statement on Form S-11 under
the Securities Act and becomes eligible to use Form S-3 or such other short-form
registration statement form under the Securities Act, the Company may, upon twenty
(20) Business Days prior written notice to FBR and all Holders, register any
Registrable Shares registered but not yet distributed under the effective Shelf
Registration Statement or Subsequent Shelf Registration Statement on such a
short-form Shelf Registration Statement and, once the short-form Shelf Registration
Statement is declared effective, de-register such shares under the previous Shelf
Registration Statement or any Subsequent Shelf Registration Statement or transfer
the filing fees from the previous Shelf Registration Statement (such transfer
pursuant to Rule 429, if applicable) unless the Holders holding a majority of the shares registered by the Holders under the initial Shelf Registration Statement or
any

11

 

Subsequent Shelf Registration Statement (excluding Registrable Shares held by
the Company, the Management Holders or any of their Affiliates) notify the Company
within twenty (20) Business Days of receipt of the Company notice that such a
registration under a new Registration Statement and de-registration of the initial
Shelf Registration Statement or any Subsequent Shelf Registration Statement would
materially interfere with such Holders’ distribution of Registrable Shares already
in progress, in which case the Company shall delay the effectiveness of the
short-form Shelf Registration Statement and de-registration for a period of not less
than thirty (30) Business Days from the date that the Company receives the notice
from such Holders requesting a delay;

     (b) subject to Section 4(i) hereof, (i) prepare and file with the Commission
such amendments and post-effective amendments to each such Registration Statement as
may be necessary to keep such Registration Statement effective for the period
described in Section 4(a) hereof; (ii) cause each Prospectus contained therein to be
supplemented by any required Prospectus supplement, and as so supplemented to be
filed pursuant to Rule 424 or any similar rule that may be adopted under the
Securities Act; and (iii) comply with the provisions of the Securities Act with
respect to the disposition of all securities covered by each Registration Statement
during the applicable period in accordance with the intended method or methods of
distribution by the selling Holders thereof;

     (c) furnish to FBR and the Holders, without charge, as many copies of each
Prospectus, including each preliminary Prospectus, and any amendment or supplement
thereto and such other documents as FBR or such Holder may reasonably request, in
order to facilitate the public sale or other disposition of the Registrable Shares;
the Company consents, subject to Section 5, to the use of such Prospectus, including
each preliminary Prospectus, by FBR and the Holders, if any, in connection with the
offering and sale of the Registrable Shares covered by any such Prospectus;

     (d) use its commercially reasonable efforts to register or qualify, or obtain
exemption from registration or qualification for, all Registrable Shares by the time
the applicable Registration Statement is declared effective by the Commission under
all applicable state securities or “blue sky” laws of such United States
jurisdictions as FBR or any Holder with Registrable Shares covered by a Registration
Statement may reasonably request in writing, keep each such registration or
qualification or exemption effective during the period such Registration Statement
is required to be kept effective pursuant to Section 4(a) and do any and all other
acts and things that may be reasonably necessary or advisable to enable such Holder
to consummate the disposition in each such jurisdiction of such Registrable Shares
owned by such Holder; provided, however, that the Company shall not be required to
take any action to comply with this Section 4(d) if it would require the Company to
(i) qualify generally to do business in any jurisdiction or to register as a broker
or dealer in such jurisdiction where it would not otherwise be required to qualify
but for this Section 4(d), except as may be required by the Securities Act, (ii)
subject itself to taxation in

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any such jurisdiction, or (iii) submit to the general service of process in any
such jurisdiction;

     (e) use its commercially reasonable efforts to cause all Registrable Shares
covered by such Registration Statement to be registered and approved by such other
governmental agencies or authorities in the United States as may be necessary to
enable the Holders thereof to consummate the disposition of such Registrable Shares;
provided, however, that the Company shall not be required to take any action to
comply with this Section 4(e) if it would require the Company or any of its
subsidiaries to (i) qualify generally to do business in any jurisdiction or to
register as a broker or dealer in such jurisdiction where it would not otherwise be
required to qualify but for this Section 4(e), except as may be required by the
Securities Act, (ii) subject itself to taxation in any such jurisdiction, or (iii)
submit to the general service of process in any such jurisdiction;

     (f) notify FBR, Selling Holders’ Counsel, if any, and each Holder with
Registrable Shares covered by a Registration Statement promptly and, if requested by
FBR, Selling Holders’ Counsel, if any, or any such Holder, promptly confirm such
advice in writing at the address determined in accordance with Section 10(c), (i)
when such Registration Statement has become effective and when any post-effective
amendments thereto become effective or upon the filing of a supplement to any
Prospectus, (ii) of the issuance by the Commission or any state securities authority
of any stop order suspending the effectiveness of such Registration Statement or the
initiation, assertion or, to the extent known to the Company, threat of any
Proceedings for that purpose, (iii) of any request by the Commission or any other
federal, state or foreign governmental authority for amendments or supplements to
such Registration Statement or related Prospectus or for additional information, and
(iv) of any reason, including without limitation, the happening of any event during
the period such Registration Statement is effective, as a result of which such
Registration Statement or the related Prospectus or any document incorporated by
reference therein contains any untrue statement of a material fact or omits to state
any material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading (which information shall be accompanied by an instruction to suspend the
use of the Registration Statement and the related Prospectus until the requisite
changes have been made);

     (g) use its commercially reasonable efforts to avoid the issuance of, or if
issued, to obtain the withdrawal of, any order enjoining or suspending the use or
effectiveness of a Registration Statement or suspending of the qualification (or
exemption from qualification) of any of the Registrable Shares for sale in any
jurisdiction, as promptly as practicable;

     (h) upon request, promptly furnish to FBR, Selling Holders’ Counsel, if any,
and each requesting Holder with Registrable Shares covered by a Registration
Statement, without charge, at least one (1) conformed copy of each Registration
Statement and any post-effective amendment or supplement thereto

13

 

(without documents incorporated therein by reference or exhibits thereto,
unless requested); (i) except as provided in Section 5, upon the occurrence of any
event contemplated by Section 4(f)(iv) hereof, use its commercially reasonable
efforts to promptly prepare a supplement or post-effective amendment to a
Registration Statement or the related Prospectus or any document incorporated
therein by reference or file any other required document so that, as thereafter
delivered to the purchasers of the Registrable Shares, such Prospectus will not
contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading; and promptly
furnish to FBR, Selling Holders’ Counsel, if any, and each requesting Holder,
without charge, as many copies of such Prospectus and any supplement or
post-effective amendment to the Registration Statement or Prospectus and any
document incorporated therein by reference or so filed, as FBR, Selling Holders’
Counsel, if any, or such Holder may reasonably request;

     (j) if requested by FBR, Selling Holders’ Counsel, if any, the representative
of the underwriters (in an Underwritten Offering), if any, or any Holders of
Registrable Shares being sold in connection with a Registration Statement, (i) as
promptly as reasonably practicable incorporate in a Prospectus supplement or
post-effective amendment such information as FBR, Selling Holders’ Counsel, if any,
the representative of the underwriters, if any, or such Holders indicate in writing
relates to them or otherwise reasonably request be included therein, and (ii) make
all required filings of such Prospectus supplement or such post-effective amendment
as soon as practicable after the Company has received notification of the matters to
be incorporated in such Prospectus supplement or post-effective amendment;

     (k) in the case of an Underwritten Offering, use its commercially reasonable
efforts to furnish or cause to be furnished to the underwriters (including any
deemed underwriter) a signed counterpart, addressed to the underwriters, of: (i) an
opinion of counsel for the Company, dated the date of each closing under the
underwriting agreement, reasonably satisfactory to the underwriters (an
“Opinion”); and (ii) a “comfort” letter, dated the effective date of such
Registration Statement and the date of each closing under the underwriting
agreement, signed by the independent public accountants who have certified the
Company’s financial statements included in such Registration Statement, covering
substantially the same matters with respect to such Registration Statement (and the
Prospectus included therein) and with respect to events subsequent to the date of
such financial statements, as are customarily covered in accountants’ letters
delivered to underwriters in underwritten public offerings of securities and such
other financial matters as the underwriters may reasonably request (a “Comfort
Letter”); a copy of any such Opinion and Comfort Letter shall be delivered to
FBR; in the case of a Registration Statement that does not involve an Underwritten
Offering, use its commercially reasonable efforts to furnish to FBR a signed
counterpart, addressed to FBR, of an Opinion and a Comfort Letter, each dated the
initial effective date of such Registration Statement and on the date of

14

 

each quarterly or year-end post-effective amendment thereto, in form and
substance reasonably satisfactory to FBR;

     (l) enter into customary agreements (including in the case of an Underwritten
Offering, an underwriting agreement in customary form and reasonably satisfactory to
the Company) and take all other reasonable action in connection therewith in order
to expedite or facilitate the distribution of the Registrable Shares included in
such Registration Statement and, in the case of an Underwritten Offering, make
representations, warranties and agreements to FBR, the Holders covered by such
Registration Statement and to the underwriters in such form and scope as are
customarily made by issuers to underwriters and holders in underwritten offerings
and confirm the same to the extent customary if and when requested;

     (m) to make available for inspection by FBR, Selling Holders’ Counsel, if any,
and the representatives of any underwriters participating in any disposition
pursuant to a Registration Statement, all financial and other records, pertinent
corporate documents and properties of the Company and cooperate with, and cause the
respective officers, directors, employees and agents of the Company to supply all
information reasonably requested by, FBR, Selling Holders’ Counsel, if any, and the
representatives of any underwriters in connection with a Registration Statement and
the due diligence review of the Registration Statement and the information contained
or incorporated therein; provided, however, that such records, documents or
information that the Company determines, in good faith, to be confidential and with
respect to which the Company notifies FBR, Selling Holders’ Counsel, if any, and the
representatives of any underwriters in advance in writing of such confidential
nature, shall not be disclosed by FBR, Selling Holders’ Counsel, if any, and the
representatives of any underwriters unless (i) the disclosure of such records,
documents or information is necessary to avoid or correct a material misstatement or
omission in a Registration Statement or Prospectus, (ii) the release of such
records, documents or information is ordered pursuant to a subpoena or other order
from a court of competent jurisdiction, or (iii) such records, documents or
information have been generally made available to the public; concurrent with the
initial filing of a Registration Statement with the Commission, pay the sum of up to
$50,000 to FBR, by wire transfer of immediately available funds, to reimburse FBR’s
costs and expenses associated with its due diligence review of the Registration
Statement and the information contained or incorporated therein;

     (n) use its commercially reasonable efforts to satisfy the criteria for listing
and list or include (if the Company satisfies the criteria for listing or inclusion
on such exchange or market) all Registrable Shares on the New York Stock Exchange or
The Nasdaq Stock Market as soon as practicable (including, without limitation,
seeking to cure in the Company’s listing or inclusion application any deficiencies
cited by the exchange or market) and thereafter use commercially reasonable efforts
to maintain such listing;

15

 

     (o) use its commercially reasonable efforts to prepare and file in a timely
manner all documents and reports required by the Exchange Act and, to the extent the
Company’s obligation to file such reports pursuant to Section 15(d) of the Exchange
Act expires prior to the expiration of the effectiveness period of the Registration
Statement as required by Section 4(a) hereof, the Company shall register the
Registrable Shares under the Exchange Act and shall maintain such registration
through the effectiveness period required by Section 4(a) hereof;

     (p) provide a CUSIP number for all Registrable Shares, not later than the
effective date of the Registration Statement;

     (q) (i) otherwise use its commercially reasonable efforts to comply with all
applicable rules and regulations of the Commission and, as applicable, the New York
Stock Exchange, Nasdaq National Market or other listing standard, (ii) make
generally available to its stockholders, as soon as reasonably practicable, earnings
statements covering at least 12 months beginning after the effective date of the
Registration Statement that satisfy the provisions of Section 11(a) of the
Securities Act and Rule 158 (or any similar rule promulgated under the Securities
Act ) thereunder, but in no event later than forty-five (45) days after the end of
each fiscal quarter of the Company occurring after the first anniversary of the
effective date of the Registration Statement (unless such fiscal quarter is the last
fiscal quarter of the Company’s fiscal year, in which case such earnings statement
shall be delivered no later than sixty (60) days after such fiscal quarter occurring
after the first anniversary of the effective date of the Registration Statement),
and (iii) not file any Registration Statement or Prospectus or amendment or
supplement to such Registration Statement or Prospectus to which FBR, Selling
Holders’ Counsel, if any, or any Holder of Registrable Shares covered by such
Registration Statement shall have reasonably objected on the grounds that such
Registration Statement or Prospectus or amendment or supplement does not comply in
all material respects with the requirements of the Securities Act;

     (r) provide and cause to be maintained a registrar and transfer agent for all
Registrable Shares covered by any Registration Statement from and after a date not
later than the effective date of such Registration Statement;

     (s) in connection with any sale or transfer of the Registrable Shares (whether
or not pursuant to a Registration Statement) that will result in the security being
delivered no longer being Registrable Shares, cooperate with the Holders and the
representative of the underwriters, if any, to facilitate the timely preparation and
delivery of certificates representing the Registrable Shares to be sold, which
certificates shall not bear any transfer restrictive legends (other than as required
by the Company’s Charter) and to enable such Registrable Shares to be in such
denominations and registered in such names as the representative of the
underwriters, if any, or the Holders may request at least three (3) Business Days
prior to any sale of the Registrable Shares;

16

 

     (t) in connection with the initial filing of a Shelf Registration Statement or
any Subsequent Shelf Registration Statement and each amendment thereto with the
Commission, prepare and, within one (1) Business Day of such filing with the
Commission, file with the NASD all forms and information required or requested by
the NASD in order to obtain written confirmation from the NASD that the NASD does
not object to the fairness and reasonableness of the underwriting terms and
arrangements (including any deemed underwriting terms and arrangements relating to
FBR and any other NASD member that is the holder of, or is affiliated or associated
with an owner of, Registrable Shares included in the Registration Statement)
relating to the resale of Registrable Shares pursuant to the Registration Statement,
including, without limitation, information provided to the NASD through its
COBRADesk system; and

     (u) upon effectiveness of the first Registration Statement filed by the Company
under this Agreement, take such actions and make such filings as are necessary to
effect the registration of the shares of Common Stock under the Exchange Act
simultaneously with or immediately following the effectiveness of the Registration
Statement.

     The Company and any underwriter (including any deemed underwriter) may require the Holders to
furnish (and each Holder shall furnish) to the Company and the underwriters such information in
writing as the Company or any underwriter may from time to time reasonably request for inclusion in
any Registration Statement, as may be necessary for the Company or any such underwriter to make any
necessary filings (including, without limitation, any blue sky, NASD and stock exchange filings) in
connection with such Registration Statement or as may be required to effect the registration of the
Registrable Shares, and no Holder shall be entitled to be named as a selling stockholder in any
Registration Statement and no Holder shall be entitled to use the Prospectus forming a part thereof
if such Holder does not provide such information to the Company and the underwriters. Any Holder
that sells Registrable Shares pursuant to a Registration Statement shall be required to be named as
a selling stockholder in the related Prospectus and to deliver or cause to be delivered a
Prospectus to purchasers. Each Holder further agrees to furnish promptly to the Company and any
underwriters in writing all information required from time to time to make the information
previously furnished by such Holder true and complete and not misleading.

5. Black-Out Period

     (a) Subject to the provisions of this Section 5 and a good faith determination by a majority
of the independent members of the Board of Directors of the Company that it is in compliance with
the terms hereof and that it is in the best interests of the Company to suspend the use of the
Registration Statement, following the effectiveness of a Registration Statement (and the filings
with any international, federal or state securities commissions), the Company, by written notice to
FBR, Selling Holders’ Counsel, if any, and the Holders, may direct the Holders to suspend sales of
the Registrable Shares pursuant to a Registration Statement for such times as the Company
reasonably may determine is necessary and advisable (but in no event for more than an aggregate of
ninety (90) days in any rolling twelve (12) month period and no more than six (6) separate times in
any rolling twenty four (24) month period) if any of the following events shall occur: (i) the
representative of the underwriters of an Underwritten Offering of primary

17

 

shares of Common Stock by the Company has advised the Company that the sale of Registrable
Shares pursuant to the Registration Statement would have a material adverse effect on the Company’s
primary offering; (ii) a majority of the Board of Directors of the Company (including at least two
of the independent directors) determines in good faith that (A) the offer or sale of any
Registrable Shares would materially impede, delay or interfere with any proposed financing, offer
or sale of securities, acquisition, merger, tender offer, business combination, corporate
reorganization, consolidation or other material transaction involving the Company, (B) after the
advice of counsel, the sale of Registrable Shares pursuant to the Registration Statement would
require disclosure of non-public material information not otherwise required to be disclosed under
applicable law, and (C) (x) the Company has a bona fide business purposes for preserving the
confidentiality of such transaction, (y) disclosure would have a material adverse effect on the
Company or the Company’s ability to consummate such transaction, or (z) such transaction renders
the Company unable to comply with Commission requirements, in each case under circumstances that
would make it impractical or inadvisable to cause the Registration Statement (or such filings) to
become effective or to promptly amend or supplement the Registration Statement on a post-effective
basis, as applicable; or (iii) a majority of the Board of Directors of the Company (including at
least two of the independent directors) determines in good faith, upon the advice of counsel, that
it is required by law, rule or regulation to supplement the Registration Statement or file a
post-effective amendment to the Registration Statement in order to incorporate information into the
Registration Statement for the purpose of (1) including in the Registration Statement any
prospectus required under Section 10(a)(3) of the Securities Act; (2) reflecting in the prospectus
included in the Registration Statement any facts or events arising after the effective date of the
Registration Statement (or of the most-recent post-effective amendment) that, individually or in
the aggregate, represents a fundamental change in the information set forth therein; or (3)
including in the prospectus included in the Registration Statement any material information with
respect to the plan of distribution not disclosed in the Registration Statement or any material
change to such information. Upon the occurrence of any such suspension, the Company shall use its
commercially reasonable efforts to cause the Registration Statement to become effective or to
promptly amend or supplement the Registration Statement on a post-effective basis or to take such
action as is necessary to make resumed use of the Registration Statement as soon as possible.

     (b) In the case of an event that causes the Company to suspend the use of a Registration
Statement (a “Suspension Event”), the Company shall give written notice (a “Suspension
Notice”) to FBR and the Holders to suspend sales of the Registrable Shares and such notice
shall state generally the basis for the notice and that such suspension shall continue only for so
long as the Suspension Event or its effect is continuing and the Company is using its commercially
reasonable efforts and taking all reasonable steps to terminate suspension of the use of the
Registration Statement as promptly as possible. The Holders shall not effect any sales of the
Registrable Shares pursuant to such Registration Statement (or such filings) at any time after it
has received a Suspension Notice from the Company and prior to receipt of an End of Suspension
Notice (as defined below). If so directed by the Company, each Holder will deliver to the Company
(at the expense of the Company) all copies other than permanent file copies then in such Holder’s
possession of the Prospectus covering the Registrable Shares at the time of receipt of the
Suspension Notice. The Holders may recommence effecting sales of the Registrable Shares pursuant
to the Registration Statement (or such filings) following further notice to such effect (an
“End of Suspension Notice”) from the Company, which End of

18

 

Suspension Notice shall be given by the Company to the Holders and FBR in the manner described
above promptly following the conclusion of any Suspension Event and its effect.

     (c) Notwithstanding any provision herein to the contrary, if the Company shall give a
Suspension Notice with respect to any Registration Statement pursuant to this Section 5, the
Company agrees that it shall extend the period of time during which such Registration Statement
shall be maintained effective pursuant to this Agreement by the number of days during the period
from the date of receipt by the Holders of the Suspension Notice to and including the date of
receipt by the Holders of the End of Suspension Notice and provide copies of the supplemented or
amended Prospectus necessary to resume sales, with respect to each Suspension Event; provided such
period of time shall not be extended beyond the date that shares of Common Stock covered by such
Registration Statement are no longer Registrable Shares.

6 Indemnification and Contribution

     (a) The Company agrees to indemnify and hold harmless (i) each Holder and any underwriter
(including any deemed underwriter, as determined under the Securities Act) for such Holder
(including, if applicable, FBR), (ii) each Person, if any, who controls (within the meaning of
Section 15 of the Securities Act or Section 20(a) of the Exchange Act), any such Person described
in clause (i) (any of the Persons referred to in this clause (ii) being hereinafter referred to as
a “Controlling Person”), and (iii) the respective officers, directors, partners, members,
managers, employees, representatives and agents of any such Person or any Controlling Person (any
Person referred to in clause (i), (ii) or (iii) may hereinafter be referred to as a “Purchaser
Indemnitee”), to the fullest extent lawful, from and against any and all losses, claims,
damages, judgments, Proceedings, out-of-pocket expenses, and other liabilities (collectively, the
“Liabilities”), including without limitation and as incurred, reimbursement of all
reasonable costs of investigating, preparing, pursuing or defending any Proceeding by any
governmental agency or body, commenced or threatened, including the reasonable fees and expenses of
counsel to any Purchaser Indemnitee, joint or several, directly or indirectly related to, based
upon, arising out of or in connection with any untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement or Prospectus (as amended or supplemented if
the Company shall have furnished to such Purchaser Indemnitee any amendments or supplements
thereto), or any preliminary Prospectus or any other document prepared by the Company used to sell
the Registrable Shares, or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, except to the extent such Liabilities
arise out of or are based upon (i) any untrue statement or omission or alleged untrue statement or
omission made in reliance upon and in conformity with information relating to any Purchaser
Indemnitee furnished to the Company or any underwriter in writing by such Purchaser Indemnitee
expressly for use therein or (ii) any untrue statement contained in or omission from a preliminary
Prospectus if a copy of the Prospectus (as then amended or supplemented, if the Company shall have
furnished to or on behalf of the Holder participating in the distribution relating to the relevant
Registration Statement any such amendments or supplements thereto) was not sent or given by or on
behalf of such Holder to the Person asserting any such Liabilities who purchased Registrable
Shares, if such Prospectus (or Prospectus as amended or supplemented) is required by law to be sent
or given at or prior to the written confirmation of the sale of such Registrable Shares to such
Person and the untrue statement contained in or omission from such preliminary Prospectus was
corrected in the Prospectus (or the Prospectus as amended or

19

 

supplemented). The Company shall notify FBR and the Holders promptly of the institution,
threat or assertion of any Proceeding of which it shall have become aware in connection with the
matters addressed by this Agreement which involves the Company or a Purchaser Indemnitee. The
indemnity provided for herein shall remain in full force and effect regardless of any investigation
made by or on behalf of any Purchaser Indemnitee.

     (b) In connection with any Registration Statement in which a Holder is participating and as a
condition to such participation, such Holder agrees, severally and not jointly, to indemnify and
hold harmless the Company, each Person who signs the registration Statement or controls the Company
within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act and the
respective directors, officers, members, managers, representatives, employees, partners, trustees
and agents of the Company and each such Person to the same extent as the foregoing indemnity from
the Company to each Purchaser Indemnitee, but only with reference to untrue statements or omissions
or alleged untrue statements or omissions made in reliance upon and in strict conformity with
information relating to such Purchaser Indemnitee furnished to the Company in writing by such
Purchaser Indemnitee expressly for use in any Registration Statement or Prospectus, any amendment
or supplement thereto, or any preliminary Prospectus. The liability of any Purchaser Indemnitee
pursuant to this paragraph shall in no event exceed the net proceeds received by such Purchaser
Indemnitee from sales of Registrable Shares giving rise to such obligations.

     (c) If any Proceeding (including any governmental or regulatory investigation) shall be
brought or asserted against any Person in respect of which indemnity may be sought pursuant to
paragraph (a) or (b) above, such Person (the “Indemnified Party,” or if more than one Indemnified
Party, the “Indemnified Parties”), shall promptly notify the Person against whom such indemnity may
be sought (the “Indemnifying Party”), in writing of the commencement thereof (but the failure to so
notify an Indemnifying Party shall not relieve it from any liability which it may have under this
Section 6, except to the extent the Indemnifying Party is materially prejudiced by the failure to
give notice), and the Indemnifying Party, upon request of the Indemnified Party, shall assume the
defense of such Proceeding and retain counsel chosen by the Indemnifying Party and approved by the
Indemnified Party, which approval shall not be unreasonably withheld, to represent the Indemnified
Party and any others the Indemnifying Party may reasonably designate in such Proceeding and shall
pay the reasonable fees and expenses actually incurred by such counsel related to such Proceeding.
Notwithstanding the foregoing, in any such Proceeding, any Indemnified Party shall have the right
to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Party, unless (i) the Indemnifying Party and the Indemnified Party shall have
mutually agreed in writing to the contrary, (ii) the Indemnifying Party failed within a reasonable
time after notice of commencement of the Proceeding to assume the defense and engage counsel
approved by the Indemnified Party as hereinabove provided, (iii) the Indemnifying Party and its
counsel do not in a reasonable manner pursue the defense of such Proceeding, or (iv) the named
parties to any such Proceeding (including any impleaded parties), include both such Indemnified
Party and the Indemnifying Party, or any Affiliate of the Indemnifying Party, and such Indemnified
Party shall have been reasonably advised by counsel that, either (x) there may be one or more legal
defenses available to it which are different from or additional to those available to the
Indemnifying Party or such Affiliate of the Indemnifying Party or (y) a conflict may exist between
such Indemnified Party and the Indemnifying Party or such Affiliate of the Indemnifying Party (in
which case the Indemnifying Party shall not have the right to assume nor direct the defense of such
Proceeding

20

 

on behalf of such Indemnified Party, it being understood, however, that the Indemnifying Party
shall not, in connection with any one such Proceeding or separate but substantially similar or
related Proceedings arising out of the same general allegations or circumstances, be liable for the
fees and expenses of more than one (1) separate firm of attorneys (in addition to any local
counsel), for all such Indemnified Parties, which firm shall be designated in writing by those
Indemnified Parties who sold a majority of the Registrable Shares sold by all such Indemnified
Parties (excluding Registrable Shares sold by the Company, the Management Holders or any of their
Affiliates) and any such separate firm for the Company, the directors, the officers and such
control Persons of the Company as shall be designated in writing by the Company). The Indemnifying
Party shall not be liable for any settlement of any Proceeding effected without its written
consent, which consent shall not be unreasonably withheld, but if settled with such consent or if
there is a final judgment for the plaintiff, the Indemnifying Party agrees to indemnify any
Indemnified Party from and against any loss or Liability resulting from such settlement or
judgment. No Indemnifying Party shall, without the prior written consent of the Indemnified Party,
effect any settlement of any pending or threatened Proceeding in respect of which any Indemnified
Party is or could have been a party or the subject thereof and indemnity could have been sought
hereunder by such Indemnified Party, unless (i) such settlement includes an unconditional release
of such Indemnified Party from all liability on claims that are the subject matter of such
Proceeding and (ii) does not include a statement as to, or an admission of, fault, culpability or a
failure to act by or on behalf of the Indemnified Party.

     (d) If the indemnification provided for in paragraphs (a) and (b) of this Section 6 is for any
reason held to be unavailable to an Indemnified Party in respect of any Liabilities referred to
therein (other than by reason of the exceptions provided therein) or is insufficient to hold
harmless a party indemnified thereunder, then each Indemnifying Party under such paragraphs, in
lieu of indemnifying such Indemnified Party thereunder, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such Liabilities (i) in such proportion as is
appropriate to reflect the relative benefits of the Indemnified Party on the one hand and the
Indemnifying Party(ies) on the other in connection with the statements or omissions that resulted
in such Liabilities, or (ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Indemnifying Party(ies) and the
Indemnified Party, as well as any other relevant equitable considerations. The relative fault of
the Company on the one hand and any Purchaser Indemnitees on the other hand shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to information supplied by the
Company or by such Purchaser Indemnitees and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.

     (e) The parties agree that it would not be just and equitable if contribution pursuant to this
Section 6 were determined by pro rata allocation (even if such Indemnified Parties were treated as
one entity for such purpose), or by any other method of allocation that does not take account of
the equitable considerations referred to in paragraph 6(d) above. The amount paid or payable by an
Indemnified Party as a result of any Liabilities referred to in paragraph 6(d) shall be deemed to
include, subject to the limitations set forth above, any reasonable legal or other expenses
actually incurred by such Indemnified Party in connection with investigating or defending any such
Proceeding. Notwithstanding the provisions of this Section 6, in no event

21

 

shall a Purchaser Indemnitee be required to contribute any amount in excess of the amount by
which proceeds (net of discounts and commissions) received by such Purchaser Indemnitee from sales
of Registrable Shares exceeds the amount of any damages that such Purchaser Indemnitee has
otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. For purposes of this Section 6, each Person, if any, who controls (within the
meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act) FBR or a Holder
shall have the same rights to contribution as FBR or such Holder, as the case may be, and each
Person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section
20(a) of the Exchange Act) the Company, and each officer, director, trustee, partner, member,
manager, employee, representative or agent of the Company shall have the same rights to
contribution as the Company. Any party entitled to contribution will, promptly after receipt of
notice of commencement of any Proceeding against such party in respect of which a claim for
contribution may be made against another party or parties, notify each party or parties from whom
contribution may be sought, but the omission to so notify such party or parties shall not relieve
the party or parties from whom contribution may be sought from any obligation it or they may have
under this Section 6 or otherwise, except to the extent that any party is actually and materially
prejudiced by the failure to give notice. No Person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act), shall be entitled to contribution from any
Person who was not guilty of such fraudulent misrepresentation.

     (f) The indemnity and contribution agreements contained in this Section 6 will be in addition
to any liability which the Indemnifying Parties may otherwise have to the Indemnified Parties
referred to above. The Purchaser Indemnitee’s obligations to contribute pursuant to this Section 6
are several in proportion to the respective number of Registrable Shares sold by each of the
Purchaser Indemnitees hereunder and not joint.

7. Market Stand-off Agreement

     Each Holder hereby agrees that it shall not, to the extent requested in writing by the Company
or a managing underwriter of securities of the Company, directly or indirectly sell, offer to sell
(including without limitation any short sale), pledge, contract to sell, sell any option or
contract to purchase, purchase any option or contract to sell, grant any option, right or warrant
for the sale of or otherwise dispose of or transfer any Registrable Shares or other shares of
Common Stock or any securities convertible into or exchangeable or exercisable for shares of Common
Stock then owned by such Holder (other than to donees or partners of the Holder who agree to be
similarly bound) for a period commencing thirty (30) days prior to the effective date of the IPO
Registration Statement of the Company filed under the Securities Act and ending (x) in the case of
the Management Holders, one hundred eighty (180) days following such effective date; and (y) in the
case of all other Holders, sixty (60) days following such effective date; provided, however, that:

     (a) the restrictions above shall not apply to Registrable Shares sold pursuant
to the IPO Registration Statement;

     (b) all officers and directors of the Company then holding shares of Common
Stock or securities convertible into or exchangeable or exercisable for

22

 

shares of Common Stock enter into similar agreements for not less than the
entire time period required of the Management Holders hereunder; and

     (c) the Holders shall be allowed any concession or proportionate release
allowed to any Management Holder or any officer or director of the Company that
entered into similar agreements (with such proportion being determined by dividing
the number of shares being released with respect to such Management Holder, officer
or director by the total number of issued and outstanding shares held by such
Management Holder, officer or director); provided, that nothing in this Section 7(c)
shall be construed as a right to proportionate release for the Management Holders or
officers and directors of the Company upon the expiration of the sixty (60) day
period applicable to all Holders other than the Management Holders, officers and
directors of the Company.

     In order to enforce the foregoing covenant, the Company shall have the right to place
restrictive legends on the certificates representing the securities subject to this Section 7 and
to impose stop transfer instructions with respect to the Registrable Shares and such other
securities of each Holder (and the securities of every other Person subject to the foregoing
restriction) until the end of such period.

8. Termination of the Company’s Obligation

     Subject to Section 10(l), the Company shall have no further obligations pursuant to this
Agreement at such time as no Registrable Shares are outstanding.

9. Limitations on Subsequent Registration Rights

     From and after the date of this Agreement, the Company shall not, without the prior written
consent of Holders beneficially owning not less than a majority of the then outstanding Registrable
Shares, enter into any agreement with any holder or prospective holder of any securities of the
Company that would allow such holder or prospective holder (a) to include such securities in any
Registration Statement filed pursuant to the terms hereof, unless under the terms of such
agreement, such holder or prospective holder may include such securities in any such registration
only to the extent that the inclusion of such holder’s or prospective holder’s securities will not
reduce the amount of Registrable Shares of the Holders included in the Registration Statement, or
(b) to have such holder’s or prospective holder’s securities registered on a registration statement
that could be declared effective prior to, or within one hundred eighty (180) days of, the
effective date of any Registration Statement filed pursuant to this Agreement.

10. Miscellaneous

     (a) Remedies. In the event of a breach by the Company of any of its obligations under
this Agreement, each Holder, in addition to being entitled to exercise all rights provided herein
or, in the case of FBR, in the Purchase/Placement Agreement, or granted by law, including recovery
of damages, will be entitled to specific performance of its rights under this Agreement. Subject
to Section 6, the Company agrees that monetary damages would not be adequate compensation for any
loss incurred by reason of a breach by it of any of the provisions of this Agreement and hereby
further agree that, in the event of any action for specific

23

 

performance in respect of such breach, it shall waive the defense that a remedy at law would
be adequate.

     (b) Amendments and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents
to or departures from the provisions hereof may not be given, without the written consent of the
Company and Holders beneficially owning not less than a majority of the then outstanding
Registrable Shares; provided, however, that for purposes of this Section 10(b), Registrable Shares
that are owned, directly or indirectly, by an Affiliate of the Company shall not be deemed to be
outstanding. No amendment shall be deemed effective unless it applies uniformly to all Holders.
Notwithstanding the foregoing, a waiver or consent to or departure from the provisions hereof with
respect to a matter that relates exclusively to the rights of a Holder whose securities are being
sold pursuant to a Registration Statement and that does not directly or indirectly affect, impair,
limit or compromise the rights of any other Holder may be given by such Holder; provided that the
provisions of this sentence may not be amended, modified or supplemented except in accordance with
the provisions of the immediately preceding sentence.

     (c) Notices. All notices and other communications, provided for or permitted
hereunder shall be made in writing and delivered by facsimile (with receipt confirmed), overnight
courier or registered or certified mail, return receipt requested, or by telegram:

     (i) if to a Holder, at the most current address given by the transfer agent and
registrar of the Common Stock;

     (ii) if to the Company at the offices of the Company at 7315 Wisconsin Avenue,
Suite 205 East, Bethesda, Maryland 20814, Attention: Barry E. Johnson; (facsimile
(301) 656-1960); with a copy to Hunton & Williams LLP, 951 East Byrd Street, East
Tower, Richmond, Virginia 23219, Attention: Daniel M. LeBey, Esq., (facsimile:
804-788-8218); and

     (iii) if to FBR at the offices of FBR at 1001 Nineteenth Street North,
Arlington, Virginia 22209, Attention: Compliance Department, (facsimile:
703-312-9698); with a copy to Gibson, Dunn & Crutcher LLP, 1050 Connecticut Ave.,
NW, Washington, D.C. 20036, Attention: Howard B. Adler, Esq., (facsimile:
202-467-0539);

Receipt of any notice sent pursuant to this Agreement shall be deemed to occur (x) one (1) Business
Day after sending by facsimile (with receipt confirmed), (y) two (2) Business Days after sending by
overnight courier or (z) three (3) Business Days after mailing by the party giving such notice.
The Company shall cause the transfer agent to use commercially reasonable efforts to maintain
current addresses of the Holders.

     (d) Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and permitted assigns of each of the parties hereto, including, without
limitation and without the need for an express assignment or assumption, subsequent Holders. The
Company agrees that the Holders shall be third party beneficiaries to the agreements made hereunder
by FBR and the Company, and each Holder shall have the right to

24

 

enforce such agreements directly to the extent it deems such enforcement necessary or
advisable to protect its rights hereunder; provided, however, that such Holder fulfills all of its
obligations hereunder.

     (e) Stock Legend. In addition to any other legend that may appear on the stock
certificates evidencing the Registrable Shares, for so long as any Shares remain Registrable Shares
each stock certificate evidencing such Registrable Shares shall contain a legend to the following
effect: “THE SHARES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO AND ENTITLED TO THE OBLIGATIONS
AND BENEFITS OF A CERTAIN REGISTRATION RIGHTS AGREEMENT, DATED JUNE 30, 2005”.

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

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

     (h) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE (INCLUDING SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW BUT EXCLUDING ALL
OTHER CHOICE OF LAW AND CONFLICTS OF LAWS RULES). EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN
DISTRICT OF NEW YORK OR ANY NEW YORK STATE COURT SITTING IN THE CITY OF NEW YORK IN RESPECT OF ANY
SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND IRREVOCABLY ACCEPTS
FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE
AFORESAID COURTS. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY
EFFECTIVELY DO SO UNDER APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM
THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

     (i) Severability. If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in
full force and effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their commercially reasonable efforts to find and employ an alternative means to
achieve the same or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the intention of the parties
hereto that they would have executed the remaining terms, provisions, covenants and restrictions

25

 

without including any of such that may be hereafter declared invalid, illegal, void or
unenforceable.

     (j) Entire Agreement. This Agreement, together with the Purchase/Placement Agreement,
is intended by the parties hereto as a final expression of their agreement, and is intended to be a
complete and exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein and therein. Without limiting the foregoing, this
Agreement supersedes, terminates and replaces all existing stockholders’ agreements and
registration rights agreements relating to the equity securities of the Company.

     (k) Registrable Shares Held by the Management Holders, the Company or their
Affiliates. Whenever the consent or approval of, or a selection by, the Holders of a specified
percentage of Registrable Shares is required hereunder, Registrable Shares held by the Management
Holders, the Company or their Affiliates (excluding, if necessary, FBR) shall not be counted in
determining the number of then outstanding Registrable Shares or the number of Registrable Shares
providing such consent, approval or selection.

     (l) Survival. This Agreement is intended to survive the consummation of the
transactions contemplated by the Purchase/Placement Agreement. The indemnification and
contribution obligations under Section 6 and the Company’s obligations under this Section 10 shall
survive the termination of the Company’s obligations under Section 2 and Section 8 of this
Agreement.

     (m) Attorneys’ Fees. In any Proceeding brought to enforce any provision of this
Agreement, or where any provision hereof is validly asserted as a defense, the prevailing party, as
determined by the court, shall be entitled to recover its reasonable attorneys’ fees from the
losing party in addition to any other available remedy.

[Signature Page Follows]

26

 

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

	 	 	 	 	 	 	 
	 	 	ASSET CAPITAL CORPORATION, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ William LeBlanc	 	 
	 

	 	 	 	 	 	 
	 	 	Name: William B. LeBlanc III	 	 
	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	FRIEDMAN, BILLINGS, RAMSEY & CO., INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ J. Rock Tonkel	 	 
	 

	 	 	 	 	 	 
	 	 	Name: J. Rock Tonkel, Jr.	 	 
	 	 	Title: President and Head of Investment Banking	 	 

[SIGNATURE PAGE TO ASSET CAPITAL REGISTRATION RIGHTS AGREEMENT]

27

 

	 	 	 	 	 
	 

	 	MANAGEMENT HOLDERS
	 	 
	 
	 	 	 	 
	 

	 	/s/ Peter C. Minshall	 	 
	 

	 	 	 	 
	 

	 	Peter C. Minshall	 	 
	 
	 	 	 	 
	 

	 	/s/ Blair D. Fernau	 	 
	 

	 	 	 	 
	 

	 	Blair D. Fernau	 	 
	 
	 	 	 	 
	 

	 	/s/ William LeBlanc	 	 
	 

	 	 	 	 
	 

	 	William B. LeBlanc III	 	 
	 
	 	 	 	 
	 

	 	/s/ Barry E. Johnson	 	 
	 

	 	 	 	 
	 

	 	Barry E. Johnson	 	 
	 
	 	 	 	 
	 

	 	/s/ Kenneth M. Houle	 	 
	 

	 	 	 	 
	 

	 	Kenneth M. Houle	 	 

[SIGNATURE PAGE TO ASSET CAPITAL REGISTRATION RIGHTS AGREEMENT]

28

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